Gillette consolidated media buying and planning for North America and Western Europe at BBDO Worldwide, New York. Separately, PepsiCo assigned the agency broadcast buying for its Tropicana brand, previously handled by TN Media, New York.
Neither marketer would disclose spending, but Gillette spent $164 million in 1998 in the U.S., according to Competitive Media Reporting; Tropicana's broadcast account is estimated at $42 million.
Both marketers said they moved to BBDO to follow their key brands and to seek economies of scale.
A Tropicana spokesman said the latest move was made partly to "leverage the Power of One" -- PepsiCo's internal phrase for joint marketing of its brands. BBDO already handles media and creative for its Frito-Lay snacks as well as major soft-drink brands, including Pepsi-Cola. The spokesman said joint promotions with Tropicana and Frito-Lay products are possible in the future.
FCB HOLDS TROPICANA CREATIVE
Tropicana creative will remain at Foote, Cone & Belding, New York. FCB's sibling, TN Media, New York, will continue to handle print buying. PepsiCo acquired Tropicana Products, Bradenton, Fla., last year.
Tropicana officials also stressed FCB's creative assignment will stay untouched.
"It absolutely does not involve any creative assignments whatsoever. It [just] makes sense to consolidate the buying and get economies of scale," the spokesman said.
Gillette also consolidated to seek economies of scale, but its realignment was more geographic than brand based.
The company's media planning was previously divided between its in-house media department and BBDO, which also handled creative and media buying for Gillette's shaving products, Duracell batteries and its deodorant brands in North America and Western Europe. Buying for other Gillette brands was handled by the creative agencies: Lowe & Partners/SMS, New York, for the Oral B and Braun brands and McCann-Erickson Worldwide, New York, for stationery products including Paper Mate, Liquid Paper and Parker pens.
Creative duties will remain with each individual shop. McCann will assume creative and media for all brands except Duracell outside North America and Western Europe, said a Gillette spokesman. The restructuring will not affect O&M's assignment as Duracell's international agency of record.
"It's more streamlined this way. It's more cost-effective," the spokesman said.
The company is in the middle of a restructuring process, which includes consolidating Braun and Oral B under one roof, and grouping marketing for all brands into two regions, North Atlantic -- covering North America and Western Europe -- and international.
Gillette had suffered from flat sales and declining income until the introduction of the Mach3 razor in late 1997 gave it a lift. The company's total sales for 1998 were $10.06 billion, unchanged from the year before. At the time, officials blamed the drop on weak international sales and a one-time restructuring charge, adding the company expects earnings growth to return to between 15% and 20% in the second half of 1999, thanks in part to Mach3.