Lodestar retains Rs 400-cr Coca-Cola account

This was the largest pitch in the first half of this year, which saw key media agencies vying for it

Lodestar UM, part of the IPG-owned Mediabrands, has retained the media duties of Coca-Cola India, one of the largest advertisers in the country. The estimated Rs 400-crore media account was put up for review a few months ago by Coca-Cola.

Apart from Lodestar UM, which has the account since 2010, the other agencies in the fray included Dentsu, Madison, GroupM and Starcom, according to industry sources.

The multi-agency pitch saw multiple levels with the agencies being tested on key parameters including media buying and planning.

The mandate will see Lodestar UM doing work for Coca-Cola across platforms. This will include traditional media such as print and television as well as digital, radio, outdoor, etc.

While the agency did not comment on the development, Debabrata Mukherjee, vice-president (marketing and commercial), Coca-Cola India and south west Asia, said: “Media review is a periodical process we undertake. As part of this process, we recently invited a few agencies to pitch for the account, including our incumbent agency. At the end of it, Lodestar UM has been invited to be our lead agency. We believe it is most equipped to make the fastest transition into the new ways of operating in the dynamic Indian media market place.”

Notably, the Coca-Cola media account is the largest pitch in the first half of 2016 (calendar year). Unlike last year, when brands changed agencies frequently, this year has been relatively muted.

Media experts attribute this to a phase of consolidation after hectic pitching activity last year. Advertising expenditure is expected to grow this year. According to a GroupM forecast, India’s advertising expenditure will grow 15.5 per cent in 2016, touching Rs 57,486 crore from Rs 49,758 crore last year.