Bayer HealthCare consolidates with WPP and Omnicom
11 February, 2010
Omnicom Group and WPP will Handle Creative Assignments for All Major Brands Across Four Divisions
Related Project will Consolidate Media Planning and Buying
TARRYTOWN, NEW YORK; LEVERKUSEN, GERMANY
— Bayer HealthCare AG (BHC), a subsidiary of Bayer AG, today announced it has selected Omnicom Group (NYSE:OMC) and WPP (NASDAQ:WPPGY) as its primary global marketing services partners for its four business units: Bayer Schering Pharma/Bayer HealthCare Pharmaceuticals, Bayer HealthCare Animal Health, Bayer HealthCare Consumer Care and Bayer HealthCare Medical Care. The decision on global marketing services assignments covers consumer and professional communications, medical education, digital, and public relations and follows an extensive, company-wide analysis of current partners and contracts.
Following a separate review of the company’s media planning and buying activities in its top markets outside the U.S., BHC will consolidate all planning and buying responsibilities with GroupM, WPP’s media services agency. These markets represent 80% of BHC’s global media spend outside of the U.S. Media planning and buying in the U.S. is not covered under this contract.
The decisions were made by Bayer HealthCare CEO Arthur Higgins and his Executive Committee based on the recommendation of the project lead for these initiatives, Sandra Peterson, CEO of Bayer HealthCare Medical Care.
The consolidation of marketing services agencies goes into effect immediately and is expected to be completed over the next 18 to 24 months. Ultimately, marketing communications engagements now handled by over 400 disparate agencies around the world will be consolidated; in all, approximately 50 Bayer HealthCare brands will be affected, including all its major global, regional and launch brands. On the media side, BHC expects that contracts in the global media markets which were reviewed will start the transition process beginning in April 2010.
In making the announcement, Arthur Higgins noted, “Our initiative on global marketing and media services was undertaken to help us achieve increased consistency across marketing disciplines, markets and targets and enable us to deliver more effective and creative work in more markets, more quickly. Additionally, we believe this change will enable us to drive significant improvements in performance and efficiency on our leading brands.”
“Over the course of the next 18 to 24 months,” Mr. Higgins continued, “between the global marketing services and media services consolidation initiatives, we believe BHC will be able to realize savings in the range of 10%, while significantly improving the quality and effectiveness of all of our communications.”
Sandra Peterson added, “Omnicom and WPP both have established track records in partnering successfully with BHC to build our brands across borders and marketing disciplines.” For WPP, account duties will be shared between Ogilvy & Mather and JWT (J Walter Thompson). BBDO Worldwide and CDM Group (Cline Davis Mann) will serve as co-lead agencies for Omnicom. All of these agencies already have successful engagements with Bayer HealthCare.
“The world and the media environment in which we operate are changing,” Peterson continued. “We believe that we have an opportunity to take ‘integrated marketing’ to a new level, linking all classes and media types and in doing so, making BHC a world leader in this area. These initiatives will help us build the strength of our brands and deepen our customer relationships at all levels, and give us access to the best talent and most innovative minds in the industry. All this in turn will help our business units deliver on our growth and performance targets.”About Bayer HealthCare
The Bayer Group is a global enterprise with core competencies in the fields of health care, nutrition and high-tech materials. Bayer HealthCare, a subsidiary of Bayer AG, is one of the world's leading, innovative companies in the health care and medical products industry and is based in Leverkusen, Germany. The company combines the global activities of the Animal Health, Bayer Schering Pharma, Consumer Care and Medical Care divisions. Bayer HealthCare’s aim is to discover, manufacture and market products that will improve human and animal health worldwide. Find more information at www.bayerhealthcare.com
. About Omnicom Group
Omnicom Group Inc. (NYSE: OMC) (www.omnicomgroup.com
) is a leading global marketing and corporate communications company. Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 100 countries. About WPP
WPP (NASDAQ: WPPGY) is the world’s largest communications services group. Through its operating companies, the Group provides a comprehensive range of advertising and marketing services including advertising; media investment management; consumer insight; public relations and public affairs; branding and identity; healthcare communications; direct, digital, promotion and relationship marketing and specialist communications. The company employs 140,000 people (including associates) in 2,400 offices in 107 countries. For more information, visit www.wpp.com
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