Plagued by falling sales and expecting to report a consolidated net loss of US$35 million for the fiscal year ending Dec. 31 2003, McDonalds Japan has decided to cut its advertising costs.
Japan’s largest fast food company will consolidate its entire account with Dentsu Inc who will work in partnership with Beacon Communications, an agency jointly owned by Publicis and Dentsu.
The losers will be Hakuhodo and Asatsu DK who previously split the giant
account with Dentsu.
From April, a joint Dentsu/Beacon team will be responsible for creative and brand
strategy on the estimated US$140 million account, while media buying
will be handled solely by Dentsu, according to informed industry sources.
The move is expected to lead to great efficiencies and should enable
McDonald’s to respond more quickly to Japan’s difficult marketing environment, sources said.
The move is a severe blow to Hakuhodo DY Media Partners, formed last
year by combining the media departments of Hakuhodo, Daiko, and Yomiko,
and which hoped to challenge Dentsu aggressively in media planning and
media buying, sources said. .
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