J&J Review—More of a Realignment Than a Pitch

Johnson & Johnson’s global consolidation of agency creative responsibilities is expected to be more of a brand or category realignment than a pitch process, sources said. The outcome will reportedly be determined on credentials, rather than presentations.

The CPG/pharma giant confirmed it is reviewing its current agency relationships but declined to discuss any other details at this stage. According to a statement issued by a rep, “Johnson & Johnson is conducting a global agency review and consolidation to build greater value and deliver innovative and fully integrated solutions for our consumer brands.”

The effort is being driven by a desire for better efficiencies. In 2011 J&J spent $792 million in U.S. measured media advertising, according to Nielsen. (That amount does not include digital or business-to-business marketing.)  As recently as 2009, J&J spent $1 billion dollars in U.S. measured media spending. Global marketing investment could not immediately be determined.

J&J’s agency roster includes Interpublic’s Deutsch, Lowe, The Martin Agency and R/GA units; Omnicom’s BBDO and DDB; WPP’s JWT and AKQA; Havas’ EuroRSCG; and Publicis Groupe’s Razorfish.

The review follows the Jan. 1 promotion of Michael Sneed, who as the company's new vp of global corporate affairs was given oversight of all of J&J’s global marketing and PR operations. Sneed, previously a corporate group chairman in charge of global vision products, succeeded Brian Perkins, who retired earlier this year.

The agency changes also come after a series of J&J product recalls and manufacturing issues that have left some of the company’s brands in short supply on retail shelves.