Procter & Gamble is moving its brands such as Venus, Braun and Art of Shaving to Grey Group from BBDO. Marketing has reached out to both P&G and Grey for more details on the arrangement.
This is not the first time P&G has shifted its account from BBDO to Grey. In 2013, the brand handed Grey the Gillette account. In a statement to Adweek, the company said that the decision was not due to the performance of the incumbent but rather due to its choice of operating with “one grooming” agency model which it feels would be more strategic.
The move comes as P&G has been launching a series of cost-cutting initiatives. The company earlier announced that it has plans to save as much as US$500 million in agency spend, as well as improve the effectiveness of its marketing.
The firm has been making a series of major changes to its business since 2012, announcing a major productivity plan with plans to cut costs of US$10 billion over the next five years. It also has been restructuring its marketing and communications operations. (Read also: P&G scraps marketing titles within).
Late last year, as part of a massive streamlining exercise, P&G announced it will drop a majority of its brands to focus on its top earners, with up to 100 brands to be divested in the next two years. It has already sold Duracell. It also sold the bulk of its pet food business to Mars Inc for US$2.9 billion in 2014 as well.