Media firms after Danone's $15 million pie
Food company Danone has put up for review its zł. 60 million ($15 million) media account, currently with Young & Rubicam, a top Danone official confirmed last week.
That figure is a conservative estimate of Danone's media purchasing and planning account as it does not reflect increased advertising expected after the firm's local acquisition of Pepsi Foods cookie division for an undisclosed sum in late 1998. The division is now called Danone Ciastka and produces well-known brands Delicje and Pieguski.
"The business in biscuits has increased dramatically," said Robert Schnurr, general director of Danone Polska. "As part of that, the media spending will be increased substantially."
But Schnurr would not say how much media spending was expected to increase as a result of the acquisition.
Danone has approximately 25% of Poland's dairy market and annual revenue of zł. 700 million ($179.48 million), Schnurr said.
Currently, Danone's media accounts are under review in several other European countries, including Italy, Spain and Great Britain, said Rupert Slade, media planning director with Initiative Media, which pitched for Danone's media account last week.
But any potential changes in the media planner for Poland is not a reflection on Young & Rubicam and Schnurr denied rumors that Danone was displeased with the level of service. "From time to time it's healthy to do a review," he said, also noting that along with the approximately six agencies pitching for the media account, Y&R was also considered an option. The creative side of the advertisement for Danone dairy products will remain with Young & Rubicam as is globally the case.
Anna Lubowska, general manager for Media Edge, the media planning division of Young & Rubicam, was also not surprised by the review. "It's a pretty normal situation of big clients from time to time," she said.
For media planning companies, the appeal of acquiring the Danone account is large, primarily because it is the third largest advertiser in Poland, industry sources said.
"This is one of the major accounts in the country," said Jakub Bierzyński, general manager at Optimum Media. But he would not confirm or deny whether Optimum was pitching for the account.
Along with its size, another reason why the Danone account is appealing is the homogeneity of the brands being offered. "It's one brand, it's easy to handle," Bierzyński said.
Unlike other companies, such as Unilever and Procter & Gamble, Danone focuses primarily on dairy products. Lubowska agreed about the attractiveness of the Danone account. "Within this category (of dairy products) Danone is the biggest investor," she said.
That figure is a conservative estimate of Danone's media purchasing and planning account as it does not reflect increased advertising expected after the firm's local acquisition of Pepsi Foods cookie division for an undisclosed sum in late 1998. The division is now called Danone Ciastka and produces well-known brands Delicje and Pieguski.
"The business in biscuits has increased dramatically," said Robert Schnurr, general director of Danone Polska. "As part of that, the media spending will be increased substantially."
But Schnurr would not say how much media spending was expected to increase as a result of the acquisition.
Danone has approximately 25% of Poland's dairy market and annual revenue of zł. 700 million ($179.48 million), Schnurr said.
Currently, Danone's media accounts are under review in several other European countries, including Italy, Spain and Great Britain, said Rupert Slade, media planning director with Initiative Media, which pitched for Danone's media account last week.
But any potential changes in the media planner for Poland is not a reflection on Young & Rubicam and Schnurr denied rumors that Danone was displeased with the level of service. "From time to time it's healthy to do a review," he said, also noting that along with the approximately six agencies pitching for the media account, Y&R was also considered an option. The creative side of the advertisement for Danone dairy products will remain with Young & Rubicam as is globally the case.
Anna Lubowska, general manager for Media Edge, the media planning division of Young & Rubicam, was also not surprised by the review. "It's a pretty normal situation of big clients from time to time," she said.
For media planning companies, the appeal of acquiring the Danone account is large, primarily because it is the third largest advertiser in Poland, industry sources said.
"This is one of the major accounts in the country," said Jakub Bierzyński, general manager at Optimum Media. But he would not confirm or deny whether Optimum was pitching for the account.
Along with its size, another reason why the Danone account is appealing is the homogeneity of the brands being offered. "It's one brand, it's easy to handle," Bierzyński said.
Unlike other companies, such as Unilever and Procter & Gamble, Danone focuses primarily on dairy products. Lubowska agreed about the attractiveness of the Danone account. "Within this category (of dairy products) Danone is the biggest investor," she said.
