SUPPLEMENT: TOP EUROPEAN CONSULTANCIES 1996; OWNED GROUPS: Boosting own brands

With acquisition comes the task for agencies of trying to build ‘own brand’ awareness Pan-European branding was big last year with agencies boosting their ‘own-brand’ presence. Shandwick launched a two-stage programme to rebrand all its agencies across Europe.‘We want to make it clear to the outside world that we are a network and one company, not just different agencies working together. That’s an impression that could easily be exploited by our competitors,’ says Volker Stoltz managing director of Shandwick Europe and its affiliate network.

With acquisition comes the task for agencies of trying to build ‘own

brand’ awareness Pan-European branding was big last year with agencies

boosting their ‘own-brand’ presence. Shandwick launched a two-stage

programme to rebrand all its agencies across Europe.‘We want to make it

clear to the outside world that we are a network and one company, not

just different agencies working together. That’s an impression that

could easily be exploited by our competitors,’ says Volker Stoltz

managing director of Shandwick Europe and its affiliate network.



Communications International - whose international presence has been

dogged by the use of two of the most overworked terms in PR - announced

plans to rebrand the group across Europe under the Porter Novelli

moniker of its US sister company from September. The role of lead agency

will be devolved to a board of regional representatives jointly chaired

by Peter Hehir and Bob Druckenmiller, head of Porter Novelli in the

States. Investment will be made in marketing the re-branded group and

creating what Hehir calls a greater ‘cohesion and standardisation’

through training and personnel development.



Euro RSCG International Communications continues to dominate the owned

group activity across Europe with strong international branding and

regional recognition. The company is also keen to promote its European

rather than US heritage. 1995 was a year of organic growth for Euro

RSCG, primarily generated by its UK and French offices with emphasis on

corporate and strategic counselling.



Jerome Lascombe, chairman of GCI Europe, is also concerned with brand

building across Europe and the US. 1995 saw the creation of three new

offices in Europe. In January 1995 APCO Europe opened in Brussels,

headed up by ex-Hill & Knowlton associate director Mark Dober. This was

followed in May by UK public affairs company APCO UK headed by Simon

Milton. In April 1995, the group also established a new German office

Hering Schuppener GCI headed by Ralf Hering, ex-managing director of

ABC.



1995 was a year of consolidation for Ketchum, culminating in its sale to

Omincom in January 1996. During the year focus was firmly fixed on

increased integration of operations between Ketchum’s European offices

with a USdollars 5 million global investment in technology. Jerry

Olszewski, MD of Ketchum Europe, has projected a 40 per cent growth over

the next two years for its London office - the acquisition being

completed in early 1996 just missed out on this year’s league table

figures. Ketchum plans to build London through stratetic acquisition.



Ten years after dipping its toe into European waters, Fleishman-Hillard

continues to show substantial organic growth backed by a strong pan-

european training programme and a multi- million dollar investment in

IT, including the Internet, Intranet and video conferencing framework

required for Fleishman-Hillard to function as a single pan-European

team. In 1995 Barry Leggetter took over the running of the UK office and

boosted its growth by 60 per cent. Michel Deurinck, who took over as MD

of the Brussels office four months ago, has grown the office to the

point that he is now looking to recruit a deputy. France remains an

important market for F-H, although the company is currently without a

managing director following the departure of Anne Froger to Australia

after only 18 months. On 1 January F-H opened its first Italian office

headed by Patrizia Antonicelli.



A majority of owned groups and networks are also subdividing their

operations into practice areas. Last September Shandwick established a

European public affairs office in Brussels to capitalise on the need to

lobby member states on home territory across Europe (see p39). At the

same time, Manning Selvage & Lee appointed Howard Godman to the newly

created post of director of healthcare Europe to co-ordinate its

burgeoning international business in the sector. More recently,

Fleishman-Hillard recruited European internal communications specialist

Nick Mobley, to develop internal comms as a pan-European practice area.

A task that will no doubt require a diplomatic sensitivity to local

issues, as well as loyalty to the parent brand.



------------------------------------------------------------------------

Euro Consultancies: Owned groups (part one)

------------------------------------------------------------------------

Rank  Company                          Fee income (pounds)    % Change

                                          95           94

 1    Euro RSCG Intl Comms            54,416,000   47,949,000    13

 2    Communications Intl Group       40,355,300   31,565,400    28

 3    Burson Marsteller               35,483,000   30,045,000    18

 4    Shandwick Europe                32,098,000   33,059,000  (-3)

 5    Hill and Knowlton               22,997,000   20,552,000    12

 6    Rowland Worldwide                9,580,055    9,880,078  (-3)

 7    GCI Europe                       8,433,854    8,531,281  (-1)

 8    Trimedia International           7,880,000    5,100,000    55

 9    Grayling Group                   6,875,000    7,308,000  (-6)

10    Text 100                         6,330,000    5,207,000    22

11    Fleishman-Hillard Europe         5,496,264    4,020,670    37

12    Manning Selvage & Lee            5,408,730    7,700,852 (-30)

13    Harvard Public Relations         3,500,000    2,715,000    29

14    Ketchum PR Europe                2,994,000    2,600,000    15

15    Ogilvy Adams & Rinehart          2,646,000    2,247,000    18

16    Mathieu Thomas/Herald            2,006,340    1,815,777    10

17    Interel                          1,733,000    1,594,000     9

‘Owned groups’ refers to consultancies within subsidiaries (greater than

50 per cent shareholding) in at least two EC countries

‘Associate’ refers to any company in which a group or network has a

shareholding of less than 50 per cent or which has some form of

contractual or partnership agreement

* figures not available

------------------------------------------------------------------------



------------------------------------------------------------------------

Euro Consultancies: Owned groups (part two)

------------------------------------------------------------------------

Rank  Company                    Staff  Clients   Associate    Location

                                   95       95    Income 94

 1    Euro RSCG Intl Comms        698      643            -    London

 2    Communications Intl Group   562      390   10,765,500    Brussels

 3    Burson Marsteller           433      984   44,010,000    London

 4    Shandwick Europe            566      760    6,120,000    London

 5    Hill and Knowlton           352      906            -    London

 6    Rowland Worldwide           126                     -    New York

 7    GCI Europe                  150      200   13,257,359    Paris

 8    Trimedia International        *        *    7,220,000    Zurich

 9    Grayling Group              117      200    5,675,000    London

10    Text 100                    111       90            -    London

11    Fleishman-Hillard Europe     80      202            -    Paris

12    Manning Selvage & Lee        73      152    8,956,140    New York

13    Harvard Public Relations     58       84            -    Middx

14    Ketchum PR Europe            41       68    3,407,392    London

15    Ogilvy Adams & Rinehart      43       57            -    New York

16    Mathieu Thomas/Herald        40       47            -    London

17    Interel                      23      110            -    London

‘Owned groups’ refers to consultancies within subsidiaries (greater than

50 per cent shareholding) in at least two EC countries

‘Associate’ refers to any company in which a group or network has a

shareholding of less than 50 per cent or which has some form of

contractual or partnership agreement

* figures not available

------------------------------------------------------------------------



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