In another sign that Leo Burnett Co. is on shaky ground with one of its flagship clients, Kellogg Co. named Magnet Interactive, Washington, as its interactive agency of record, leaving Burnett's Giant Step, Chicago, with only a minor assignment.
"They've consolidated all business for efficiency reasons with Magnet," said Rishad Tobaccowala, president of Giant Step.
Magnet referred calls to Kellogg; Kellogg did not return calls by press time. Spending was not disclosed.
Kellogg earlier this month said it would add to its general agency roster for its $400 million ad account.
In addition to Burnett, Kellogg uses J. Walter Thompson USA, New York, and Burrell Communications Group, Chicago, for its breakfast food products. The other agencies involved in that review are Y&R Advertising, Ammirati Puris Lintas, BBDO Worldwide, Lowe & Partners/SMS and Grey Advertising, all New York, and the Martin Agency, Richmond, Va.
While interactive was not part of that overall review, Kellogg did not renew business with Giant Step for two of the three brands it was working on, including Corn Pops and Apple Jacks, Mr. Tobaccowala said.
Giant Step will still maintain some interactive work on the Pop Tarts brand, he said.
Prior to gaining the AOR status, Magnet already had captured much of Kellogg's business, including development of its corporate Web site as well as brand sites for Frosted Flakes, Froot Loops, Nutri-Grain, SmartStart and Special K.
MAGNET EYES CREATIVE
Magnet is a full-service interactive agency that's aiming to bolster its technology expertise with more creative and brand strategy services.
It recently hired senior executives from traditional marketers and agencies, including the naming last week of Ron Boyd as general manager, from senior VP-client services at D'Arcy Masius Benton & Bowles, Los Angeles.
Other Magnet clients include Binney & Smith's Crayola, Citibank, Federal Express Corp. and Nissan Motor Corp. USA.
Copyright September 1998, Crain Communications Inc.