The move gives O&M an additional $2.5 million in billings, or 30% of the creative it already wasn't handling. Prior to the win, O&M handled billings of $6.4 million on key Cadbury brands such as Dairy Milk, Perk, Bournvita, Gems and Googli. Besides retaining these brands, it will take on APL-nurtured Eclairs and 5-Star chocolates.
Henceforth, O&M will handle all creative and APL will plan and buy media as agency of record.
In November, Cadbury consolidated its $6.8 million AOR account with APL, shifting part of that responsibility from O&M. The Interpublic- owned APL billed $3.9 million on the Cadbury account in 1996.
According to Baroda, Gujarat-based market researcher ORG-MARG, Cadbury's 1996 TV and print spend was up 40% to $5.2 million. Overall marketing activity, including ad spend, during that year amounted to $7.2 million, according to Cadbury.
A 51% owned subsidiary of Britain's Cadbury Schweppes, Cadbury India controls between 65% and 70% of the local chocolates segment, with Swiss rival Nestle's 51%-owned arm a distant second.
The growing aggression of Indian brands like Amul, based in Anand, Gujarat, U.S.-based M&M/Mars' planned entry and Nestle's slew of product launches have put pressure on Cadbury to retain market share.
Copyright January 1998, Crain Communications Inc.