Cheil wins back Samsung GSM

Cheil Communications wins back Samsung’s mobile phone business after a multi-agency pitch involving two other agencies

2007 was a testing time for Cheil Communications. In August 2007, Samsung brought Rediffusion DY&R on board as the creative agency for one of its mobile phone models. Later, Samsung called for a pitch in which Cheil participated along with Leo Burnett and Rediffusion DY&R. The pitch process carried on for two months and ended in December 2007.

2008 seems to be proving luckier for Cheil. National creative director Prathap Suthan, who led the pitch process, is all smiles because his agency has won the pitch and regained control over the creative duties for Samsung’s mobile phone business. According to sources, Samsung is serious about the mobile business and is looking at upping its advertising spends. The size of the business is likely to be Rs 35-40 crore.

Though Asim Warsi, marketing head, Samsung India, denied that a pitch process had been under way, sources close to the development have informed agencyfaqs! in detail about it. Samsung is looking to grab a significant market share in the mobile segment. It has already reached the No. 2 position and now wants to go beyond. In order to achieve its goal, the mobile company was looking for a fresh strategy and insights for future brand communication. The pitch presentations were made to both the Samsung heads in Seoul and the Indian delegates.

According to Gartner, Samsung’s market share in the third quarter of 2007 rose by almost 2 per cent. It now stands at 14.5 per cent as against 12.2 per cent in the same quarter in 2006. Samsung stands close to Motorola, which has a market share of 13.1 per cent. At present, Samsung sells close to 30 models in India. However, it does not cater to the lower end of the market.

The media duties will be handled by Starcom, which was brought in recently following a global pitch. Starcom shares the business with Cheil. MindShare was the incumbent agency.

For the record, Rediffusion DY&R was still in the race for the Samsung business till it won the LG account in December 2007. Rediffusion won the LG account after that company’s recent global review wherein BBH and Y&R won the global creative account together.

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