DALLAS -- ChevronTexaco Corp., the newly formed $117 billion energy concern, is reviewing the capabilities of its agencies to prepare for a global consolidation of the merged companies' ad accounts and agency rosters, the client confirmed last week.
An internal committee formed to evaluate potential efficiencies met last week to discuss plans that included an agency consolidation. An executive from the company's procurement group leads the committee, which is composed of members representing corporate advertising, gasoline marketing and local ads in all ChevronTexaco's global markets. "We promised Wall Street there would be some savings as a result
of the combination," said ChevronTexaco representative Mike Libbey. "This team is one of the means by which we're going to achieve that." ChevronTexaco was born Oct. 9 when San Francisco-based Chevron completed a $38 billion acquisition of White Plains, N.Y.-based Texaco, creating the second-largest oil company in the U.S.
The new entity, which is based in San Francisco, counts more than a dozen agencies on its global roster.
Chevron spent $35 million last year on media in the U.S. and $25 million through September 2001, according to CMR. Texaco recorded $60 million and $15 million for the same periods.
Sources at several roster shops said they filled out request-for-information forms, which were due back in early December. The shops have not been told if pitches will follow the internal review. New assignments will be made in first-quarter 2002, Libbey said.
A target number of agencies has not been set, he said. Brouillard Communications in San Francisco does Chevron's corporate branding and has been responsible for newspaper ads touting the merger. The shop has also done work for Chevron's lubricants and credit-card marketing.
Young & Rubicam in San Francisco has handled Chevron's $15 million retail gas advertising. Texaco's roster shops include BBDO in Houston, which formerly handled the client's retail advertising($20 million), and Bates Southwest, also in Houston, which has worked on lubricant brands.
-with staff reports