NEW YORK: WPP has formed a new food and beverage group, cross-selling marketing services from a number of its agencies to existing and prospective clients.
Ogilvy PR will provide the PR support for the group, which will be called Consume. The other WPP agencies will include The Food Group (food marketing consultancy), The Market Segment Group (multicultural research), The Geppetto Group (youth marketing/advertising), Enterprise IG, (branding and package design), and The Store (retail).
The new group will not have its own profit and loss statement, and each client's bill will itemize each agency's fees and expenses, even though the group may be pitched as a package. Those involved say that clients will now have the option to pick and choose which groups and disciplines they want to use.
"It will be about finding what the client's need is and what resources get pulled in, said Bob Seltzer, CEO of Ogilvy. "This is not about telling the client to take all five of us or take none of us - that's not the model."
The move represents a new attempt by one of the giant marketing parent companies to extract cross-selling synergy from its portfolio of marketing firms.
While Ogilvy has worked on accounts in conjunction with other WPP marketing agencies in the past, Seltzer says that Consume presents WPP's stable of marketing services in a more formal way.
"I think it makes it very real for the clients, he said. "They can see that it's not something you are jury-rigging on the day they call you."