The Hindu Business Line : R.K. Swamy BBDO to work in close connect

Chennai, Dec. 14 At first blush it looks like a confrontation that a mighty foreign partner is having with its Indian affiliate. At least, these were the questions raised when BBDO Worldwide, the world’s second largest advertising agency network, set up BBDO India as a separate entity despite its two-decade-old partnership with the Chennai-headquartered R.K. Swamy BBDO.

With any number of instances of such relationships going sour in the corporate sector, it looked like a plausible question to pose. But, as Mr Srinivasan K. Swamy, Chairman and Managing Director, R. K. Swamy BBDO Pvt Ltd, emphasises, it’s far from the truth. Indeed, a separate agency is something he himself had initiated with BBDO over two years ago, he told Business Line.

Under the new arrangement, there will be two BBDO agencies in the market – R.K. Swamy BBDO and BBDO India, “competing and cooperating” as appropriate, depending upon client needs and market opportunities. R.K. Swamy will have a significant minority stake in BBDO India. And BBDO Asia will retain a significant minority stake in R.K. Swamy BBDO, making the partnership comprehensive in its scope and structure.

While R.K. Swamy owns a 50.1 per cent stake in R.K. Swamy BBDO, the rest by BBDO Asia, in the new venture, Mr Swamy, describing it as a significant minority stake, said R.K. Swamy will hold “a less than 50 per cent but more than one-third stake.”

Pointing out that most large agency networks have a dual brand-dual agency strategy, Mr Swamy said, “We went with this plan to BBDO over two years ago. The idea is to have a multiple brand offering in a large market like India for an even more effective competitive position.” Together, both agencies could have a larger share of the market, even pitching for competing businesses, he explained. Mr Josy Paul, former National Creative Director (NCD) of JWT, has been roped in as Chairman and NCD of BBDO India.

BBDO India has got going with Pepsi’s 7 Up account in the bag, which moves from JWT. As Mr Swamy pointed out, the account was bagged in a collaborative pitch with resources from R.K. Swamy BBDO, Hansa, its research wing, and BBDO itself.

“We won the account based on the creative and concept we presented; the ownership was not important to the client,” said Mr Swamy, adding that RK Swamy BBDO itself had seconded some people to handle the 7 Up account in the new agency.

Wherever and whenever necessary both the agencies will share resources, whether it is the media buying agency, Media Directions, or research from Hansa, he clarified. BBDO India’s focus would be more on the creative product, added Mr Swamy.