One would wonder why on earth Prima Garnet Communications, one of Nigeria’s leading Advertising holding companies, would take its long standing affiliate network partner, Ogilvy Africa to court especially with Lolu Akinwunmi, Group MD/CEO, Prima Garnet, sitting on the board of Ogilvy Africa.
Prima Garnet got affiliated to Ogilvy & Mather Africa at about 1996, as the exclusive Ogilvy affiliate agency in Nigeria. This infers that Ogilvy could not directly or indirectly set up or be associated with another agency within the Nigerian market except the network first terminates its long standing agreement with Prima Garnet.
The relationship has blossomed over the years moving from a mere technical partnership to equity participation by Ogilvy in the Nigerian affiliate agency.
However, contrary to the above general affiliation principle, Scanad Group Nigeria commenced operations in Nigeria last year flaunting its partnership with the voracious Sir Martin Sorrell‘s WPP network which comprises of the Ogilvy advertising network brand among others.
Owned by Bharat Thakrar as Group CEO, the Scangroup agencies include Scanad Nigeria, Scanad Kenya, Scanad Uganda, Scanad Tanzania, Scanad Rwanda, Scanad Ghana, Ogilvy Africa, Hill & Knowlton, Red Sky, McCann-Erickson, Roundtrip and JWT.
As a group that offers a 360 degree approach in integrated communications which includes Media Investment and Management, Brand/ Creative Advertising, Public Relations, Experiential Marketing, Integrated Digital Marketing and Field Marketing, it follows that the Tharkar operation will eventually pull into its kitty most ongoing network driven businesses in WPP networks agencies in the country.
This portends a danger signal for incumbent affiliate agencies such as Ogilvy, McCann-Erickson, Y&R, JWT, 141-Worldwide, Grey and Lowe among others in Nigeria. Sooner than later, they either agree to be stripped naked of those global accounts in their kitty or hoodwink into selling substantial equity to the ravaging Scangroup.
In Kenya, Uganda and Tanzania, Scangroup has most of these networks under its roof and controls about 70% of the advertising business in these countries. A similar omen may be in the offing in the country as the Tharkra team is poised to explore and exploit its subsisting African wide agreement with the WPP group by re-routing WPP global clients operating in the Nigerian market to its shop which offers diverse services in marketing communications.
For instance, if Scanad could have it its way in Nigeria, businesses like Airtel, GSK, Coca-Cola, Gillette, Ford, Unilever, BAT among a host of other heavy budget accounts will desert their incumbent agencies and come to roost at Scanad Nigeria.
Exercising its rights, Prima Garnet has been granted a relief against Ogilvy and Scanad Nigeria by a Lagos High Court presided over by Hon. Justice G.M Onyeabo. The court issued an interim injunction which forbids Scanad from operating in Nigeria until the determination of the suit, and Ogilvy from appointing another partner.
Meanwhile, investigations reveal that the Ogilvy network has sent a termination of partnership letter to Prima Garnet to formerly severe the relationship. However, this is seen as a reactionary move by the network coming much after the suit has been instituted.
While the Advertising Practitioners Council of Nigeria (APCON) deadline for registration of bonafide advertising agencies in Nigeria was fixed for January 1, 2013, findings reveals that Scanad is yet to register with the sectoral group, Association of Advertising Agencies in Nigeria (AAAN) to comply with the government’s Advertising regulatory body conditions to practice advertising in Nigeria. {fcomments on}