7 Get More Kraft, Less Bucks

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The seven agencies that will handle Kraft Foods’ consumer promotions will work with lower profit margins, according to sources.
In giving fewer promotional shops more brands but with slightly lower fees, Kraft is repeating the approach it took in February when it consolidated U.S. creative assignments at five shops. At that time, Kraft told the five roster agencies it would no longer pay commissions on what it called “nonworking media,” such as ad production and talent and residual costs.
Wendy Kritt, Kraft’s director of corporate and consumer promotions who helped direct the process of reducing the promotional roster from perhaps 30 agencies to the seven announced last week, would not discuss compensation arrangements.

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