Hindustan Unilever calls for pitch to handle ad account
Hindustan Unilever looks at others to handle its media buying business as partnership with Group M’s Mindshare Fulcrum ends.
By Sonali Krishna, TNN |
MUMBAI: After a 12-year partnership with Group M’s Mindshare Fulcrum, Hindustan Unilever (HUL) may be looking at others to handle its media buying business. With the three-year contract coming to an end, HUL is calling for a pitch for its media planning and buying account as part of the company’s review process.
The other agency that will be looking at making its best pitch to HUL is Initiative Media, the media arm of Lowe Worldwide, which also does a lot of work for the FMCG giant in other markets, said a source.
When contacted, an HUL official spokesperson told ET: “As a company policy, we do not comment on speculative news.”
Group M’s CEO India and COO South Asia Vikram Sakhuja said: “At the conclusion of every contract period there is a capability review that is done with HUL. It is no different this time.”
Incumbent Mindshare Fulcrum clearly has the upper edge, with experience on its side as well as the fact that the agency already has its systems in place. “It’s not going to be easy for HUL to change its agency. It’s a mammoth task,” said a leading media agency head.
HUL is one of Group M’s biggest accounts, with nearly 60% of the latter’s revenues coming in through this business.
In 1995, Group M formed a separate unit called Fulcrum to handle HUL’s buying needs. When Mindshare was set up in India in 2001, Mindshare Fulcrum won the pitch in 2001 for HUL.
This was when HUL consolidated its buying and planning needs into one agency. Interestingly, Initiative Media had made a pitch even then. In 2001, Mindshare Fulcrum won the mandate to handle the entire South Asia region.
The year 2001 was the only time HUL went in for a pitch. If Mindshare Fulcrum does not manage to renew the contract, the impact on the agency will be huge. In India, unlike other markets in the world, HUL is the biggest advertising spender as opposed to P&G in other parts of the world.
Media agency sources said the review, however, would most likely lead to Mindshare Fulcrum retaining the account. “It depends on how far Initiative is willing to go this time round to woo HUL,” he said.
The other agency that will be looking at making its best pitch to HUL is Initiative Media, the media arm of Lowe Worldwide, which also does a lot of work for the FMCG giant in other markets, said a source.
When contacted, an HUL official spokesperson told ET: “As a company policy, we do not comment on speculative news.”
Group M’s CEO India and COO South Asia Vikram Sakhuja said: “At the conclusion of every contract period there is a capability review that is done with HUL. It is no different this time.”
Incumbent Mindshare Fulcrum clearly has the upper edge, with experience on its side as well as the fact that the agency already has its systems in place. “It’s not going to be easy for HUL to change its agency. It’s a mammoth task,” said a leading media agency head.
HUL is one of Group M’s biggest accounts, with nearly 60% of the latter’s revenues coming in through this business.
In 1995, Group M formed a separate unit called Fulcrum to handle HUL’s buying needs. When Mindshare was set up in India in 2001, Mindshare Fulcrum won the pitch in 2001 for HUL.
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This was when HUL consolidated its buying and planning needs into one agency. Interestingly, Initiative Media had made a pitch even then. In 2001, Mindshare Fulcrum won the mandate to handle the entire South Asia region.
The year 2001 was the only time HUL went in for a pitch. If Mindshare Fulcrum does not manage to renew the contract, the impact on the agency will be huge. In India, unlike other markets in the world, HUL is the biggest advertising spender as opposed to P&G in other parts of the world.
Media agency sources said the review, however, would most likely lead to Mindshare Fulcrum retaining the account. “It depends on how far Initiative is willing to go this time round to woo HUL,” he said.
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