The m&m network starts to play
Marketer m&m is definitely going to Eastern Europe - one of the reasons why mm&b Stuttgart won the Miele account for Germany.
Marketer m&m is definitely going to Eastern Europe - one of the reasons why mm&b Stuttgart won the Miele account for Germany. "After a comprehensive review, Miele decided to award the account to the Stuttgart media agency mm&b. The reasons for this included a good strategic understanding of the brand, market and target groups." With these brief words, Mechthild Diermann, Head of International Advertising at Miele in Gütersloh, explains why the manufacturer of electrical household appliances and fitted kitchens is switching from the previous account holder Carat, Wiesbaden, to the Stuttgart subsidiary of the Swiss m&m Holding as of July 1, 2005. mm&b can count on the support of OMD, a member of the Omnicom network, for the new management task, which covers Miele's entire media planning and purchasing budget: The latter holds a minority stake in mm&b Stuttgart.Wolfgang Mecklenburg, founder and owner of m&m Holding, is visibly proud of the "prestige client" won in Germany. Thanks to Miele's budget, the total media budget that mm&b Stuttgart will represent in future will increase by around thirty percent. The agency, which currently employs 35 staff, will therefore be taking on five to six more people.
Mecklenburg sees the fact that mm&b was awarded the contract in competition with a number of large international agencies as "a consequence of what we have done for Miele in Switzerland". m&m in Glattbrugg has been looking after Miele Switzerland for around six years. Diermann confirms: "The experience with m&m in Switzerland was certainly very useful, but it was not the only decisive factor."
What seems to be far more important for Miele, however, is that m&m has recently made a definitive decision to expand into Eastern Europe, specifically the Czech Republic and Hungary, after the Netherlands and Belgium. Miele already has a presence in these countries. When asked about this, Diermann says: "The international orientation and expansion of the agency is fundamentally an important aspect for Miele, with a 70 percent share of sales in markets outside of Germany."
A word in Mecklenburg's ear, as he is dependent on customers who also entrust his company with budgets in these markets in order to expand into Eastern Europe. He already has verbal commitments - apart from Miele, Emil Frey is also active in Hungary, for example - but nothing is contractually secured. "We have to start there first," says Mecklenburg.
However, the start date has been set: the end of October, at the beginning of the new budget year. Other preparations have also been made. For example, m&m intends to take a stake of at least 60 percent in an existing agency in both Prague and Budapest.
Potential takeover candidates were sought and evaluated in both capitals and contract negotiations are currently underway. "We have also hired local media professionals in Prague and Budapest who know the market well," says Mecklenburg. But despite a clear roadmap, he remains cautious. "We don't want to rush into anything. And our potential customers are also advising us to proceed carefully and step by step."
Prominent commitmentErnst Grab, director of Publicitas until two years ago, will join the supervisory board of the media agency Schreiner & Van Bokkel Group BV in Holland on July 1, 2005. After Wolfgang Mecklenburg joined the company with his m&m holding, he asked his friend Grab for his support in the Netherlands at the beginning of the year.
Grab is retired and no longer holds any board mandates at PubliGroupe. Nevertheless, Mecklenburg's election has caused unrest in P circles, as Grab's commitment is tantamount to a change of sides. But only almost, as Grab will not be a member of the Board of Directors of either m&m-Holding or its Swiss subsidiaries m&m and mm&b. (mk)
Markus Knöpfli
Mecklenburg sees the fact that mm&b was awarded the contract in competition with a number of large international agencies as "a consequence of what we have done for Miele in Switzerland". m&m in Glattbrugg has been looking after Miele Switzerland for around six years. Diermann confirms: "The experience with m&m in Switzerland was certainly very useful, but it was not the only decisive factor."
What seems to be far more important for Miele, however, is that m&m has recently made a definitive decision to expand into Eastern Europe, specifically the Czech Republic and Hungary, after the Netherlands and Belgium. Miele already has a presence in these countries. When asked about this, Diermann says: "The international orientation and expansion of the agency is fundamentally an important aspect for Miele, with a 70 percent share of sales in markets outside of Germany."
A word in Mecklenburg's ear, as he is dependent on customers who also entrust his company with budgets in these markets in order to expand into Eastern Europe. He already has verbal commitments - apart from Miele, Emil Frey is also active in Hungary, for example - but nothing is contractually secured. "We have to start there first," says Mecklenburg.
However, the start date has been set: the end of October, at the beginning of the new budget year. Other preparations have also been made. For example, m&m intends to take a stake of at least 60 percent in an existing agency in both Prague and Budapest.
Potential takeover candidates were sought and evaluated in both capitals and contract negotiations are currently underway. "We have also hired local media professionals in Prague and Budapest who know the market well," says Mecklenburg. But despite a clear roadmap, he remains cautious. "We don't want to rush into anything. And our potential customers are also advising us to proceed carefully and step by step."
Prominent commitmentErnst Grab, director of Publicitas until two years ago, will join the supervisory board of the media agency Schreiner & Van Bokkel Group BV in Holland on July 1, 2005. After Wolfgang Mecklenburg joined the company with his m&m holding, he asked his friend Grab for his support in the Netherlands at the beginning of the year.
Grab is retired and no longer holds any board mandates at PubliGroupe. Nevertheless, Mecklenburg's election has caused unrest in P circles, as Grab's commitment is tantamount to a change of sides. But only almost, as Grab will not be a member of the Board of Directors of either m&m-Holding or its Swiss subsidiaries m&m and mm&b. (mk)
Markus Knöpfli
