P&G Mulls Sweeping Changes to $7.9bn Global Agency Structure

14 August 2008

CINCINATTI: Jim Stengel, Procter & Gamble's soon-to-depart cmo, has left a legacy that could trigger a global sea-change around the fmcg giant's agencies of all disciplines: an overarching revamp of the firm's agency control structure.

The world's largest advertiser is currently piloting a radical change  to its agency roster, which collectively handles around $7.9 billion (€5.3bn; £4.23bn) in annual adspend.

The trial is already under way stateside for the Oral-B dental hygiene brand and about to roll-out to other regions across the globe.

In essence, the new plan will see the appointment of a lead agency for each key brand – Pampers or Always for example – with a remit to coordinate the efforts of other agencies specialising in different marketing disciplines, such as digital, PR, direct marketing and media planning.

Rumour has it that Leo Burnett has been slated to steer feminine hygiene brand Always; Saatchi & Saatchi on Pampers; and Grey Global for Pringles snacks.

The project, which is thought unlikely to trigger any immediate account-handling changes, was trialled last year by Publicis Groupe. Its aim: to facilitate a "seamless approach" to brand communications.

The French-headquartered conglomerate created a special unit to coordinate all activities for Oral-B, including PR, advertising, packaging, customer relations and media planning and buying.

P&G's cmo-designate Marc Pritchard, currently travelling the world to feel the pulse of the firm's markets, will decide whether or not to press the red button on his return in October.

Data sourced from multiple origins; additional content by WARC staff