Procter & Gamble to realign agencies

LONDON - Procter & Gamble is set to announce a global realignment of its ad arrangements following a deal understood to have been agreed between the FMCG giant and Publicis Groupe.

The owner of Ariel detergent, Pringles and Sunny Delight is expected to make an announcement later this week that will see P&G move toward the appointment of 'category agencies'.

These would work across product categories such as haircare and detergents. Agencies will be able to work on brands in more than one category.

Sources said that P&G wants to avoid agency duplication across individual categories. International consolidation by agency holding companies is providing the impetus to reassess the way P&G works with agencies.

The shift is likely to play into the hands of Publicis Groupe, whose Publicis, Leo Burnett and Saatchi & Saatchi networks already handle a large amount of P&G business.

The D’Arcy network, which is being folded into the other Publicis-owned agencies around the world (Marketing, October 17), also oversees a number of brands, including Charmin, Always and Crest. These will be distributed among fellow Publicis Groupe networks.

It is thought the realignment could have implications for Grey Worldwide’s relationship with P&G, though the agency would not comment and a P&G US spokeswoman said: "Grey will remain a strong agency partner of P&G." Grey Worldwide London handles ads for brands including Clairol and Febreze.

Last week, P&G global marketing officer James Stengel said it had worked with D'Arcy on the transition of its P&G brands to other agencies.

Publicis Groupe chairman and CEO Maurice Levy could not be contacted as Marketing went to press.

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