Unilever objects to GroupM co-pitching for P&G business
Mumbai: WPP Group’s media specialist company GroupM has landed itself in a sticky situation—the nation’s top advertiser, Hindustan Unilever Ltd (HUL), has reportedly threatened to pull out its business from Group M if its subsidiary wins the joint bid to manage Procter and Gamble Co.’s (P&G) media planning and buying business. And if GroupM backs out of the P&G bid at this stage, it could result in the loss of business it handles for the consumer goods company in other markets.
Media circles have been buzzing in recent times over GroupM India Pvt. Ltd and rival Madison Communications Pvt. Ltd jointly pitching for P&G’s media business, which was up for review after seven years. This move had signaled a possible joint venture (JV) between the two companies, involving some equity sharing arrangement, said media buyers. GroupM’s pitch was made from its Mediacom Pvt. Ltd company against media specialists such as Starcom MediaVest Group and Carat Media Services India Pvt. Ltd and the results are due any time soon.
India’s top advertiser, Hind Unilever that owns brands such as Lux, may pull out its business from GroupM if the latter’s arm wins the joint bid to manage P&G’s media planning and buying biz
HUL’s parent Unilever Ltd, the arch-rival of P&G in the packaged goods sector, has raised objections at the regional level over a GroupM company co-pitching for P&G business since GroupM’s Mindshare India handles HUL’s media business, says a person close to the development.
Unilever sees a potential business conflict, though the pitch was made out of Mediacom that does not handle any HUL business. Unilever’s regional office has reportedly voiced concerns on client confidentia ...