SEOUL: LG Electronics has awarded WPP a multimillion-dollar contract for its product and corporate PR. The multiagency team, called LG One, will be led by Ogilvy PR and Hill & Knowlton.
The contract, initially slated for three years, follows a worldwide competitive review and will cover corporate and product communications across all five of LG's business divisions. LG One is expected to be up and running June 1, but the company will work alongside its existing agencies during the transition, according to industry sources. Fellow WPP firm, Burson-Marsteller, the company's current Korean agency, will not be involved in LG One. Sources said that role will also be phased out as part of the transition. Prior to the consolidation, Ogilvy was LG's AOR in the US.
John Taylor, VP of public affairs and communications for LG USA, confirmed that the company is creating a WPP-driven team to consolidate its PR efforts.
“LG Electronics is an interesting client because we have so many products from mobile phones to air conditioners that it's difficult to find a single agency that doesn't have some conflicts,” Taylor said. “We wanted to maximize synergies and be able to tap talent from WPP.”
LG One is part of an ongoing consolidation of LG's marcomms function. The company already consolidated its marketing efforts with Young & Rubicam, another WPP company, which will work closely with LG One, sources said.
Taylor noted that LG One contract negiotations are still under way, but key members of Ogilvy's US team will play a role in the new entity.
Luca Penati, MD of Ogilvy's global tech practice, declined to comment on LG One but said that an earlier report by PRWeek UK that he is leaving Ogilvy PR to lead LG One is incorrect.
"I will be a global strategist for LG One but will remain in my role at Ogilvy," Penati said.
Updated May 14, 2009, 4:54 pm