Maruti launches media review

In a significant move, Maruti Udyog has launched a review of its media agencies with a view probably to consolidate its AOR account. The two agencies in the shoot-out happen to be the two roster agencies on the Maruti AOR.

Currently, the Maruti AOR is split between Initiative Media and Madison Media. While Initiative Media handles the buying duties for print, Madison handles the buying duties for television. The planning part is handled by the respective creative agencies on the company's various brands.

For the record, the creative agency combination of Maruti stands like this. Lowe handles Alto, Baleno, Esteem, Omni and Versa; Hakuhodo Percept carries on with Maruti 800 and Zen; Capital Advertising handles the True Value (automobile finance) account as well as the corporate advertising and N2N (fleet management service) businesses of Maruti; and Contract is in charge of Grand Vitara besides WagonR.

The ongoing pitch is significant given the size of the business. The company is among the top three spenders in Delhi and the AOR is estimated at Rs 60-70 crore, say company insiders. For obvious reasons, the two agencies in the fray refused to comment on the event. So did official Maruti sources, who prefer to describe the event as "an annual/routine review".

However, according to an executive close to the development, this move is something the company has been mulling for the last six months. "Maruti is in this strange position where, first, the planning and buying part is segregated and, second, the print and television duties are handled by two different agencies. It makes sense to bring it under one umbrella," he says. "It all depends on how the respective presentations go. If the presentations are weak in one aspect or the other, it might again be status quo. However, we are expecting a decision one way or the other soon." © 2003 agencyfaqs!