According to Georg Baums, chairman of Publicis Holdings, neither Procter & Gamble nor Henkel is opposed to the mooted merger of the group’s FCA!BMZ and Saatchi & Saatchi European networks [WAMN: 31-Oct-00].
The two clients compete in certain product areas, but not those handled by the two networks, says Baums. The Henkel divisions serviced by FCA!BMZ – Schwarzkopf hair products, oral care and cosmetics – are unfazed by the likely merger; while Procter & Gamble sees no conflict between the Henkel brands and its own Ariel, Oil of Ulay and Pampers, all with Saatchi & Saatchi.
This unusual harmony in an area where paranoia is the norm is due largely to P&G’s new strategy for results-based agency payments. As long as its roster shops don’t work on directly competing brands, P&G is unlikely to object, says an anonymous agency executive who asked not to be fingered.
News source: Advertising Age - Daily Deadline