The move could hit the WPP Group, owner of Ogilvy & Mather and J Walter Thompson, the two agencies handling the bulk of Kimberly-Clark's brands, as well as MindShare, which looks after media planning and buying.
Kimberly-Clark makes Huggies disposable nappies, but the brand trails P&G's Pampers in the market. With the management of the company promising to cut costs this year by as much as $200m (拢123m), advertising is likely to be one area facing cuts.
Spend on marketing and research at Kimberly-Clark has already fallen by $35m during the fourth quarter of the year, as the company moved adspend away from its other brands, such as Kleenex and Kotex, and focused on a price war between Huggies and Pampers.
However, the strategy has seen Huggies maintain market share in the US. In the UK, where Ogilvy & Mather handles Huggies creative advertising, the brand's market share has grown from 22.7% four years ago to 30.3% in 2001.
Thomas Falk, president and chief executive officer of Kimberly-Clark, said: "Specifically, in 2003, we expect to reduce costs by $175m to $200m, or 24 to 28 cents per share. Beyond cost cutting, we are determined to drive sales volumes higher by 3% to 5% with strong product plans. We'll support new and improved products and defend and grow our market share with appropriate, well-targeted promotional spending."
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