Richard Pinder launches global network with Maserati as a client

March 26, 2013

Richard PinderAfter years of being a jet-setting senior suit in someone else’s service, Richard Pinder has decided to go global on his own account with the ambitious launch of international network The House Worldwide.

Pinder, it will be recalled, was head of Publicis Worldwide for five years until group succession politics (the imposition of Jean-Yves Naouri as executive chairman) made further tenure of his position unrealistic.

That was two years ago. Since then, Pinder has been pondering how to cash in on his experience with global clients (he’s worked for over 25 years in Asia, Europe and the USA; for Leo Burnett, Ogilvy & Mather and Grey, as well as Publicis) by building a new-model worldwide agency network.

No mean cliché, the cynic will object. We’ve heard the rhetoric before. What’s the reality?

It’s true that the agency world has long been struggling with a “post-analogue” structural solution to the increasingly financially unviable traditional creative agency network, with its army of regional bureaucracies. Some have proffered a solution in the form of the fleeter-footed international micro-network (step forward BBH, Wieden & Kennedy and – in its heyday – StrawberryFrog.

Pinder, however, has gone a step further in presenting a top-down managerial solution – or perhaps that should be management consultancy solution – in place of the piecemeal creative one. His starting point is that the traditional global advertising business – unlike professional counterparts such as lawyers and accountants – loses most of its senior talent to the management of regional geographic fiefdoms, which are there primarily because of historical legacy. What this talent should be doing is servicing the client’s agenda rather than their own corporate one. The exception, where the client really can insist on top-level personal service, is a vanishingly small number of mega-clients, such as Ford and Procter & Gamble, which have specially structured teams to pander to their requirements.

Pinder’s idea is to provide this level of service for global, or at least international, clients further down the budgetary league table. Each client should be serviced by no less than three senior people at any one time. To do this, he has joined forces with a core team of like-minded senior executives: initially, Peter Rawlings, former chief operating officer DDB Asia, Chris Chard, former chief strategy officer of Lowe Worldwide in New York and Ben Stobart, former senior vice-president (chief suit) of Burnett Chicago. These will deal directly with top clients on a day-to-day basis; the specialist skills base, on the other hand, is to be provided by a network of over a dozen associated network companies, of which the best known is Naked Communications (see AdWeek for a full list).

Note the absence of an overall chief creative officer. This is deliberate: Pinder does not believe a single individual can adequately address the creative needs of all client types.

Why is Pinder convinced this model can operate from a single fixed geographical location (well, actually two in THW’s case – London and Singapore)?  Because of consolidation on the brand management side. More and more marketing power is being concentrated into the hands of Chief marketing officers and indeed chief executives; less and less being delegated to regional and country power bases.

But, the acid test is: has Pinder got any clients? Yes he has. He has been collaborating with two over the past year in honing the organisational structure of THW, during what he calls “beta mode” (how digitally au courant).

And they are? Maserati and an upmarket specialist haircare brand, GHD (stands for “Good Hair Day”). Both, he tells me, are poised at an interesting fulcrum of development, from the brand and new product point of view.

Maserati, an ultra luxury sports car marque lodged in the Chrysler/Fiat stable, has been given a €1.6bn injection to broaden its model range and take on Porsche.

GHD – which produces premium-priced hair stylers – is also cash-rich after being bought for £300m by Lion Capital. Lion is investing in npd, with a view to bringing GHD out of the salon and onto the international stage. Inevitably, that is going to involve careful brand positioning as GHD moves into a broader market segment.

However, Pinder is coy on the subject of who, apart from Maserati and GHD, is bankrolling all of this. It seems likely that both principal founders (Pinder and Rawlings) have skin in the game. But a project of this scope is financially beyond most individual investors, even if they are relatively wealthy admen. Private equity seems to the answer. Among the list of network associates is, rather intriguingly, a UK-based hedge fund called Toscafund, whose chairman is former RBS bigwig Sir George Mathewson. Pinder claims Toscafund is very handy on the “analytics” side. No doubt. But my guess is it’s providing a lot more resource than that.

Advertisements

Break-up of the odd couple that kept AMV BBDO on top of the league table

July 27, 2012

The decision of Farah Ramzan Golant, executive chairman of Abbott Mead Vickers BBDO, to leave the agency and become chief executive of independent production group All3Media, brings to an end one of the most remarkable partnerships in recent UK advertising.

Ramzan Golant was part of a managerial duumvirate, latterly triumvirate, that has made AMV BBDO indisputable queen of the Nielsen UK Agencies League table years after all the partners who created the agency’s original winning formula had departed the scene.

That in itself is a remarkable feat. One that the second generation of management at BBH has yet to prove it can pull off. Highly creative agencies rarely make a successful transition to second-generation maturity within a more corporate, international framework. Boase Massimi Pollitt tried it, as part of DDB, but arguably AMV has been a lot more successful. The credit for that achievement – and the collegiate leadership style that has effected it – must in some measure go to former group chairman Michael Baulk – the surprisingly self-effacing showman who was the agency’s fourth partner in all but name.

Baulk was the watchmaker. He set up the action and left. Two women have proved themselves the jewels in the works: Cilla Snowball and Ramzan Golant. Snowball was originally the agency chief executive but after a bit of a wobble and top management reshuffle in 2005, Ramzan Golant was brought in as agency CEO and Snowball moved up to the group chairman and CEO role formerly occupied by Baulk.

The ensuing partnership has been unique in itself: two women at the summit of the top UK advertising agency. But by all accounts, extra piquancy has been added by the, at times, difficult relationship between them. They are very unalike: the ‘odd couple’ comes to mind. Ramzan Golant is fiercely bright, an aggressive go-getter. Snowball has the emollient people skills that keep clients and staff on side.

If rumour is true, the ever-ambitious Ramzan Golant at one time aspired to follow in the footsteps of another of Baulk’s protégés, Andrew Robertson – as chief executive of the BBDO network’s premier US agency. Clearly she has readjusted her sights.

Like Baulk’s manoeuvrings behind the scenes nearly a decade ago, there is a strong hint of managed succession about Ramzan Golant’s decision to step down. For some time, Ian Pearman has been understudying her role. Pearman was brought in as agency managing director in 2008 and early last year moved up to CEO. Which left Ramzan Golant in the surely impermanent role of agency executive chairman. Pearman now takes on that role as well. He has already made a series of changes to the senior AMV management team, including the promotion of Richard Arscott, head of account management, to managing director.

Ramzan Golant leaves AMV in October after 22 years at the agency and starts at All3Media, which has made such TV hits such as Peep Show and Midsomer Murders, the following month.

UPDATE 3/8/12: The other shoe drops. AMV has hired three industry stalwarts to add extra fibre to the new management team headed by Ian Pearman. Most interesting is Michael Pring, who only three months ago quit Dare to become international managing partner of Leagas Delaney. Joining him as managing partners in the new set-up are Tom Vick – once of Duck Finn Grubb Waters, more recently joint managing director of JWT London – who has been “resting” at headhunter The Lighthouse Company; and Clive Tanqueray, who was client services director of Sapient Nitro. Both Tanqueray and Pring have had long experience of working at AMV. Interestingly, the three new members of the senior team report to Pearman directly rather than to new managing director Arscott. Their rapid appointment following Ramzan Golant’s announcement of her departure reinforces the notion of engineered management change.


Alexandre Gama central to deal, as BBH sells 51% stake to Publicis Groupe

July 5, 2012

The other shoe has dropped. Not only has Publicis Groupe bought up Neogama BBH (see my post of yesterday), it has also taken the opportunity to acquire the 51% stake in BBH it did not already own. As will be seen, the two acquisitions are intimately related.

By any standards, this is a historic moment for all concerned. The old guard at one of Britain’s most illustrious agencies is moving aside after 30 years to make way for new management.

Down step the two surviving partners, group chairman Nigel Bogle (pictured) and worldwide chief creative officer Sir John Hegarty – both legends in their own lifetimes. Up step Simon Sherwood to Bogle’s position (he is currently group CEO), Gwyn Jones to Sherwood’s role and Neil Munn, CEO of BBH’s branding specialist Zig Zag, to an additional group chief operating role.

But here’s the clever bit. Neogama founding partner and chief shareholder Alexandre Gama is taking on Hegarty’s mantle as worldwide chief creative officer.

This too is highly symbolic. In seeking a successor to Hegarty, BBH and its paymaster PG have cast their net wide and picked someone quintessentially representative of the new wave of creativity coming out of emerging markets. The centre of gravity – they are saying in so many words – has changed, from Britain to Brazil, and countries like it.

The change from first generation agency to second generation management is always accompanied by high risk, no matter how successful that agency. Remember Collett Dickenson Pearce anyone?

But this deal has been carefully crafted to hedge, as best anyone can, against such a risk. The rounded symbolism of 30 years clearly suggests Bogle and Hegarty have long mulled their departure at this point. No one can accuse them of failing to bring on the next generation of management.

The Gama move is, however, a genuine surprise and must have been opportunistically fashioned out of Gama’s decision to sell his stake last year. Clever old Gama for parlaying his position so well. But a hat tip to Publicis group chief Maurice Lévy as well for crafting such an imaginative solution.

Now all they need to do is sort out the Unilever problem.


Who will win Tesco’s £110m advertising account?

April 13, 2012

Stand by for the most hotly contested UK advertising pitch of the year – the £110m (Nielsen) Tesco account is up for grabs.

But don’t hold your breath for a result. This is going to be a long-drawn-out contest, meticulously referee’d at every stage by agency intermediary Oystercatchers. Not a cosy inside job, pushed through on a nod and a wink from Tesco’s C Suite, as has tended to be the case in the past.

The first stage, happening quite soon, will be the selection of 13 agencies for a credentials presentation. From these, 6 will be invited to pitch, 3 will be eliminated and the winner will emerge in, oh, July some time. If all goes according to plan. So, expect the air to be thick with speculation over the next 4 months.

Let’s be clear before going any further. What’s particularly interesting about this pitch is not the fact that it is taking place now. Few readers will have failed to notice a changing of the guard at Britain’s top retailer, starting with the departure of group chief executive Sir Terry Leahy about a year ago and his replacement by Phil Clarke. Clarke is clearly a man who knows what he wants, and has wasted little time letting his senior colleagues know it too. Out went one-time rival for the top job Richard Brasher, until very recently UK CEO, after some lacklustre performance in the core operation and in came (a little earlier, as it happened) David Wood, late of Tesco Hungary, as head of UK marketing to replace Carolyn Bradley; meantime micro-managing Clarke has seized the UK helm himself.

Equally evidently, Clarke has been under heavy pressure from shareholders to shake things up, pronto. Tesco is still the UK’s biggest grocer by a wide margin, but it is a declining one. Others – practically all its leading rivals in fact – are bettering it in today’s tough market. Earlier this year, Tesco had to do the unthinkable: issue its first profit warning in 20 years, which knocked about £4.5bn off its stock market valuation in one day.

Personal animosity certainly came into Brasher’s dismissal, but there is little doubt that he was a convenient scapegoat too. And maybe with good reason. Brasher’s Big Price Drop campaign was a prelude to a disastrous Tesco Christmas. Brasher also held some rather fixed views on long-term investment. Whereas, what shareholders actually want is profits now, not in some misty future. Clarke knows that a second profit warning will effectively be his corporate suicide note.

So no pressure, Phil, to review your strategy. Ordinarily, UK advertising might seem to bat fairly low in a retail group CEO’s priorities – way beneath, for example, such operational issues as how many and what sort of new stores to open. Not so here, however. In giving Brasher the heave-ho and replacing the muddled duarchy at the top of UK management with a more focused leadership – himself – Clarke is also implicitly challenging Tesco’s long-established marketing tradition. Note that Brasher – like Leahy – came up the marketing route; before being promoted to UK CEO in March 2011, he had been UK marketing supremo since 2006. Clarke, on the other hand, is grounded in operations and IT, not marketing.

That’s why the key word associated with this advertising review is “clarity”. Having brought more focus to UK leadership, Clarke also intends to bring more focus to Tesco’s UK marketing effort. And he’s going to do it by asking some fundamental questions about Tesco’s current positioning. Are the assumptions underlying ‘Every Little Helps’ still relevant in today’s market? How does Tesco’s current marketing strategy benchmark against that of its apparently more successful UK rivals? Has the Tesco brand become too arrogant and impersonal – through servicing the requirements of the City rather than its customers? Clarke wants ideas from his agency pitch list, not just a new colour chart.

Superficially, this looks like bad news for the incumbent agency of 6 years, The Red Brick Road (or Ruby, or whatever the new digitally-enhanced business is going to be called). Although asked to repitch, it is indissolubly linked to the very marketing tradition that Clarke seems hell-bent on changing. Lineally, TRBR is descended from Lowe Howard-Spink; and the strong historic relationship forged between Lowe founder Sir Frank Lowe and Tesco top brass Leahy and his chief marketer Tim Mason. When Sir Frank split from Lowe & Partners (as it was by then called), Tesco backed his breakaway TRBR, but only on condition that Lowe creative chief Paul Weinberger was an integral part of the deal. To this day Weinberger, now chairman of TRBR, is the key mediating figure on the Tesco account (Lowe himself having retired).

That said, there are plenty of good reasons why Tesco might choose to retain TRBR’s services.

First, alone among competing agencies, TRBR will be the one tailored specifically to Tesco’s requirements. (Indeed, many would say this is its primary problem as a diversified advertising agency: despite doing good work for the likes of Magners cider and Thinkbox, it has failed to shake off the image of being Tesco’s house agency.)

Second, notice that Tesco has been careful not to pull the rug entirely from under TRBR. Up for grabs is all the consumer-facing digital and traditional (ie television, press, radio and outdoor) advertising. But not, you’ll observe, trade advertising, which is a substantial part of the overall TRBR fee package. One explanation for this, no doubt, is the sheer complexity of trade marketing; but Tesco also seems to be sending a mildly positive signal to its agency of longstanding.

Third, since this review is really about positioning rather than a creative makeover or a new catchline, don’t underestimate the skills of David Hackworthy and his TRBR planning department.

Fourth, don’t forget that Tim Mason is part of the review team. It’s surely only a matter of time before shareholders get their way and have Clarke cauterise the eye-watering losses at US venture Fresh & Easy, on which Mason currently spends two-thirds of his executive time. That will free more time for Mason’s other two roles as group deputy chief executive and, more pertinently here, group CMO. (It’s also possible that he might choose at that point to bow out; but no one should bank on it.)

Who else will compete for the account? Many prime candidates with suitable retail experience – BBH, DLKW/Lowe, Fallon, AMV BBDO, Rainey Kelly Campbell Rolfe/Y&R – are excluded precisely because they have conflicting supermarket accounts. However, Tesco has made it clear it will look tolerantly upon other kinds of agency conflict: for instance, a clash in financial services or telecoms.

That leaves plenty of possible contenders. As my associate Stephen Foster at MAA has pointed out, Publicis London is surely one of them. Historically, it was keeper of the Asda account and is now captained by former TRBR managing director and Tesco account director Karen Buchanan.

But the hot money will be on WPP. There’s some unsettled business here. Those with keen memories for this sort of thing will recall that, 7 years ago, WPP agency JWT came close to winning a big supermarket account after hiring two key Tesco agency players, Mark Cadman and Russell Lidstone, from a clearly flagging Lowe.

From what I hear, WPP is putting every resource possible behind winning the Tesco trophy. Not only is JWT throwing its hat into the ring; so are Grey, Ogilvy, 24/7 Media and CHI. Though whether individually or as part of a WPP “Team” effort I don’t yet know.

However, WPP agencies should tread with care.

Tesco will surely be aware, or have been made aware, that there is a certain amount of bad blood between Britain’s best-known agency intermediary Oystercatchers (founded by Suki Thompson and ex-JWT new biz director Peter Cowie) and Britain’s best-known and biggest marketing services company, WPP. Namely, the Everystone breakaway affair and its litigious sequel, which came to an unhappy conclusion about a year ago.

The formality of Tesco’s pitch procedure and its choice of intermediary suggests that there is no easy inside-track here for WPP chief Sir Martin Sorrell. I suspect his best course will be to keep an uncharacteristically low profile for the duration of this pitch.


Why The Guardian’s Three Little Pigs commercial hits the spot

March 3, 2012

“The Three Little Pigs”, directed by Ringan Ledwidge, is the best piece of advertising to come out of BBH in a very long time.

More to the point, it’s also the best piece of advertising to come out of The Guardian, whose bar in these matters is very high.

Editor-in-chief Alan Rusbridger, explaining the ad’s rationale, makes reference to the title’s “first major brand positioning TV ad for more than 25 years”. That comment, and The Three Little Pigs’ endline – “The Whole Picture” – are informal tribute to another mould-breaking ad of its time: Boase Massimi Pollitt’s 1986 Points of View, seen here:

The verities of professional journalism do not change over the years: accuracy, balance, perspective and meticulous checking of the background facts being high among them. But, my word, hasn’t the challenge of achieving them become incomparably tougher in the intervening quarter century.

Then, journalists only had to battle with their rivals, their editors, their lawyers (and occasionally their consciences) to be the first to stand up often uncomfortable truths. Now, they must also contend with an army of citizen bloggers and social media aficionados determined, moment by moment, to put their own definitive stamp upon the great issues of the day.

Twenty-six years ago, The Guardian’s world consisted of a relatively comfortable tripartite perspective. Now, the Whole Picture is a ceaseless 24/7 kaleidoscope, made possible by near universal access to the internet. How to surf this tsunami of information, while retaining a sense of detachment and independent judgement?

Like it or not, this is the brave new world journalism must embrace, a world Rusbridger dubs “open journalism” in his repositioning statement. “People are taking part in journalism, rather than being passive recipients. That’s a mindset that says journalists are not the only experts in the world, that they can’t give an adequate account of subjects, issues, the world around them, unless they enlist others,” he says.



Brazilian partner Peralta says “Tchau” to StrawberryFrog

February 1, 2012

Relief for StrawberryFrog, the maverick but financially-challenged New York advertising micro-network, is nigh.

SF founder Scott Goodson has realised his 30% investment in Sao Paolo agency StrawberryFrogPeralta, which he set up with Brazilian creative whizzkid Alexandre Peralta in 2007.

The way Peralta tells AdAge the story, break-up was all his idea. SF NY has never had operational control over Peralta’s outfit, but it does boast a string of enviable global clients, such as Emirates and Pepsi, that were expected to spread their love to Brazil via the association.

No dice, says Peralta. All his clients, even Pepsi, were won locally. “The fact that 100% of our clients belong to us made us rethink the partnership.”

That may be true, but the fact is Brazilian hotshops are not above playing fast and loose with their international allies. Thanks to growth rates of 30% or more a year, they can more or less set their cap at who they like – once out of contract. In Peralta’s case, this currently seems to involve flirtation with MDC-owned CP&B. Certainly he was coy on the subject when pressed by AdAge.

Just before Christmas, I highlighted a similar situation at Neogama BBH. Founder Alexandre Neogama was giving his UK partners a hard time, even threatening to defect to a rival network. In the event, this seems to have been a bluff aimed at leveraging his existing position, although we cannot yet be certain of that.

For Goodson, parting with Peralta must be a mixed blessing. On the one hand, he can congratulate himself on a shrewd financial investment. SFP is profitable, enjoys an estimated $8-9m revenue and, according to Peralta, is expected to grow by 50% this year. On the other, when is Goodson likely to come across such an opportunity again?


%d bloggers like this: