Electrolux is in the process of shortlisting advertising agencies for its Rs 30-40-crore advertising business which is currently handled by O&M. Confirming the development, Sanjeev Wadhwa, general manager, marketing, Electrolux Kelvinator, told agencyfaqs!, "Since we are not bound by any international alignments, what we expect from our agency is, quite simply, good work."
Interestingly, the reason why Electrolux is reviewing agencies is LG Electronics India (LGEIL). "O&M is now aligned to a competitive account, which is LG. So we have to take necessary steps," said Wadhwa. Wadhwa did not specify whether O&M has been chosen to handle the entire brand portfolio of LG or part of the LG business.
However, both LG and Lowe had a different take on this issue. Pranesh Misra, COO, Lowe, maintained, "We handle CTV, microwave, air-conditioners, IT for LG. None of these have moved."
Anil Arora, head, marketing, LGEIL, said, "LG is in the process of evaluating four agencies, besides the roster agencies, for the entire product portfolio. This evaluation is part of the annual review process of the company." For the record, the roster agencies of LGEIL include Lowe, Capital and Rediffusion. rmg david is the latest addition to this list being awarded the GSM mobile business recently.
Arora also mentioned that LG is undecided on whether to split the business among various agencies, as has been the arrangement so far, or consolidate it with one agency. Whatever be the status of the business, the stakes are definitely high for the roster agencies, given the total size of the LG business - which, according to industry estimates, stands at Rs 75 crore.
Choosing the right agency is crucial for the LGEIL. "This year the company hopes to achieve a turnover of Rs 4,500 crore and the target set for the next calendar year is Rs 5,500 crore. Which means we are looking at a growth of Rs 1,000 crore in one year. In that context, advertising is of critical importance," explained Arora. © 2003 agencyfaqs!