Regional Watch

Lay-offs to come as M&C pulls out of Singapore

Singapore M&C Saatchi will shut its Singapore advertising business to concentrate on strategic consulting.

The move follows the company’s decision in May to close its Bangkok operation. Current M&C Saatchi Singapore clients will be phased out as the office looks to complete the transition by September.

Chris Jaques, M&C Saatchi’s CEO for APAC, said in the coming years small to mid-sized agencies will find the Singapore market increasingly challenging.

“Opportunities for a small to medium sized mainstream agency in Singapore is likely to be challenging over the next five years, where there is low growth and over competition. To have that as the core of the business is lunacy,” Jaques said.

Carolyn Kan, MD for M&C Saatchi Singapore could not immediately comment on her future at the company but said she was “very proud of the team and the work done”.
Jaques said the company will now look to recruit staff with “focused management experience” in strategic consulting and accountable / response-driven media.

“Unfortunately, as in any strategic move, there will be layoffs and no one is happy about that, but we are trying the best we can for them. We are working to ensure that as we get new business opportunities, positions and priority will be for available for current employees,” he added.

Strategic consulting includes services like corporate identity, luxury marketing and specialist business while accountable / response-driven media concentrates on businesses such new media, direct, digital data and mobile marketing.

EA acquired Hands-On Mobile in Korea

Korea Electronic Arts has agreed to acquire the assets of Hands-On Mobile Korea, a leading Korean mobile developer and publisher, best known for its mobile role-playing game, Heroes Lore.

Upon completion of the acquisition, the Hands-On Mobile Korea will be known as EA Mobile Korea and will play a strategic role in the EA Mobile Asia development and publishing growth plans. The acquisition is subject to customary closing conditions and is expected to be completed by the end of this fiscal quarter.

Hands-On Mobile Korea will continue to be managed by Gilbert Kim as head of the EA Mobile Korea division. Hands-On Mobile Korea is a subsidiary of parent company Hands-On Mobile, based in the United States.

“This acquisition is a major milestone in growing our mobile business in Asia. Hands-On Mobile Korea brings us a great leadership team, proven studio talent, successful local IP, and outstanding carrier and OEM handset manufacturer relationships,” Barry Cottle, SVP & GM for EA Mobile, said.

Sunglass Hut over to Moon

Australia Luxottica Group has appointed Sydney-based Moon Communications Group as lead agency for Sunglass Hut servicing Singapore, Hong Kong, Australia, South Africa, Dubai, UK, Europe and North America markets.

Moon has been working with Sunglass Hut in Australia for the past four years.

“This appointment proves it is possible to work without borders and that Australian agencies have the creative and strategic talent to come up against some of the best in the world,” Anouk Darling, MD for Moon, said.

The four-way pitch also included JWT New York, Leo Burnett London and 180 Amsterdam. The first campaign breaks in the UK.

KFC and BBDO split

Malaysia Levi KFC and BBDO Proximity Malaysia have parted company after almost two decades working together, with the business shifting to McCann Erickson.

The news comes eight months after KFC in Singapore also moved its business from BBDO to McCann Erickson.

Commenting on the long relationship KFC had with BBDO in Malaysia, Jennifer Chan, group chief executive for BBDO Proximity Malaysia, said the proudest moment was when KFC announced it had hit its RM$1 billion mark.

“Of course we’re sad, having to take a separate path. The KFC marketing team whom we’ve been working very closely with over the years have just been extraordinary and highly supportive,” she said.

“We’re really looking forward to other exciting challenges on the road ahead. I wish KFC the best and as on every journey, I truly believe our paths will cross again.”

Sony splits regional creative in two

Regional Sony Electronics has split its regional creative business between Bates141 and 10AM following Young & Rubicam’s resignation of the account in April.

A Sony spokesperson said due to the creative strengths both agencies showed, the consumer electronics group decided to split the business.

Bates141 will now handle creative for Sony’s Bravia and Home AV products while 10AM does for the Communications Digital Imaging division.

The main role for the two agencies is to set the communication strategy and produce advertising executions for their respective categories.

Hill & Knowlton was appointed Sony’s PR agency in April to provide support to its consumer electronics division.

Global Chupa Chups business to BBH

Singapore Perfetti Van Melle, global manufacturer and distributor of confectionery and chewing gum products, has made BBH Asia Pacific its global AOR for its Chupa Chups lollipop brand.

The appointment is effective immediately. The account and creative work will be led out of the BBH Asia Pacific office in Singapore, whilst leveraging on the existing BBH global network and reach. A creative campaign will launch across Asia and Europe later this year.

This is the fifth Perfetti Van Melle brand that BBH has won, the network currently handles the Mentos and Frisk accounts globally while brands Vigorsol and Brooklyn are led out of the BBH London office for the Italian market.

“We’re thrilled to be working with a brand with such a rich history and such potential. Chupa Chups deserves great work,” John Hadfield, MD for BBH Asia Pacific, said.

In July 2006, Perfetti Van Melle announced that it had reached an agreement with Chupa Chups to acquire 100% of the company.

SPE ventures into branded entertainment

Regional Sony Pictures Entertainment will roll out an advertiser-funded program via its Animax platform called LaMB, an animated entertainment show offering advertisers branded entertainment opportunities such as product placement.

The show will be marketed through a multi-platform campaign and first promotional activities are expected to be seen in the later half of the year. LaMB is the first animated program produced under the US$6 million Singapore Economic Development Board and SPE Networks - Asia Joint Production Fund. Peach Blossom Media, a Singapore-based company, will handle the production of the show. The show will air in the last quarter of the year.

“When they (Animax) shared their vision of making LaMB a fully integrated, multi-media platform content which is appealing to both sponsors and the public, we leapt at the opportunity,” Karen Tang, VP for Peach Blossom Media, said.