According to an industry source, the pitch may involve three of Danone's divisions: Dairy, water and Dumex (milk formula products). “The billing is huge" according to one source, who estimated it at US$327 million (RMB2 billion).
In the China market, OMD is the incumbent, having held the account for the past four years. It's believed that Carat and GroupM have been invited to take part in the pitch.
Danone kicked off the global pitch process several months ago, stating that the aim of the global media planning and buying review is partly the need to generate savings.
According to Reuters, Danone reported strong first-quarter sales growth, supported by a boom in demand for baby food in Asia, particularly in China.
Greg Paull, principal of R3 pointed out to Campaign Asia-Pacific that the last 12 months have seen more media pitch activities than in the previous two years in China, with P&G, Coca-Cola, Unilever, AB InBev, Yili, Mengniu, Cofco and now Danone reviewing their media.
“It’s driven through a need to keep squeezing more out of budgets in the face of inflation and media diversification,“ Paull said.
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