Mystery clouds McDonald’s digital agency appointment in Vietnam
Confusion over whether or not a pitch happened has clouded the appointment of a digital agency by McDonald’s in Vietnam, revealed yesterday by Campaign Asia magazine.
The digital business was awarded to a recently merged local digital agency Riverorchid Notch. Social media duties were handed to GroupM’s Clickmedia.
Initially, an anonymous source informed Campaign that the business was awarded after a pitch. However, soon after the news emerged, the agencies stated to have taken part in the pitch denied any involvement.
Campaign has since removed mention of a pitch from their story, and footnoted the piece with a correction.
The press release about the win, from Riverorchid Notch, makes no direct mention of a pitch having taken place. However the marketing lead for McDonald’s Vietnam, Thai Nguyen, said in the release: “We evaluated several options and chose Riverorchid Notch for their commitment, reliability and stability.”
McDonald’s is one of the most coveted pieces of business in recent years in Vietnam. The burger giant announced its late entry into the market in July of last year.
Since then, agencies have been circling the business.
McDonald’s uses three ad agency networks globally – DDB, TBWA and Leo Burnett – and some local agencies in each market.
In Vietnam, the marketing for the McDonald’s franchise is run by Thai Nguyen, a well-connected businessman.
Mumbrella received an email earlier today from a source with the subject heading “Fake pitch for McDonalds Digital in Vietnam..?”
The email suggested that a close personal relationship between Thai Nguyen and Quan Nguyen, the founder of Notch – now River Orchid Notch – was the reason for the agency selection.
A second email contained a selection of 20 photographs that showed the two individuals together at various social functions over the years. According to the source, the men have known each other for over a decade.
The email reads:
Three multinational agencies were surprised to learn of a digital pitch for McDonalds which none of them were part of.
There wasn’t actually a pitch.
Instead the account has been awarded to a personal friend of the marketing lead at McDonalds Vietnam.
This seems highly out of character for McDonalds.
Mumbrella has approached McDonald’s Asia Pacific, but the company has yet to comment on the story.
Tarun Dhawan, MD of Riverorchid Notch, told Mumbrella: “I can confirm that as far as we are aware this was not a pitch, and that our press release on this appointment made no mention of a pitch having taken place. After conducting their own assessment of the market, the client appointed two agencies to handle their digital duties, dividing the assignment between ourselves and Clickmedia – with whom we have no relationship and who are a competitor of ours whom we respect.”
McDonald’s new agencies worked on McDonald’s website and its Facebook page.
The fast-food brand uses DDB as its lead agency in Australia, New Zealand, Hong Kong, and Singapore, TBWA in China and Leo Burnett in Korea, Japan (where lead duties are shared with Dentsu), India, Malaysia, the Philippines, Taiwan and Indonesia.
They should dissolve the ‘pitch’ and ‘awarding’ and give it to DDB.
ReplyNothing in Vietnam is straightforward or above board…
Reply“Instead the account has been awarded to a personal friend of the marketing lead at McDonalds Vietnam.
This seems highly out of character for McDonalds.”
Seriously? Business has never been awarded to an agency before without a pitch? This has happened many times. Regarding personal relationships, they are extremely important in the ad industry because if I were a marketing director, I would definitely award business to someone I know will do a good job than spend the company’s money and time to organize a pitch .
This is a smear campaign against Riverorchid Notch.
ReplyMalicious.
ReplyMany large companies require a pitch for Legal and Compliance measures, simply to ensure there is no corruption (kickbacks) involved, and to forestall stories such as this.
To hand over a multi-million dollar account to an agency without a pitch, or after going through the motions of a pitch, is unusual. What makes the situation unclear, and suspicious, is the lack of clarity about the pitch – did it happen or not?
It is the mere appearance of impropriety that has called into question the process of how the business was awarded – riverorchid notch are a fine agency, and I would question McDonald’s rather than the agency over this business.
Furthermore, it raises the question of how business is conducted in Vietnam and other markets, where business IS often awarded based on personal relationships.
Besides, when was the last time a company spent MONEY on a pitch? I have not encountered many, if any, here in Vietnam.
Vladimir, if you are in-market, perhaps you can shed some light if you have inside information. I am, and this situation is not uncommon, although surprising given the high-profile nature of the company in question.
Replyi love the teddy bear!!!
Replymulti-million dollar account? ha ha ha, you made my day, SaigonExpat…McDonals is a nice client, but very very small account…
the article is ridiculous, tha all i can say…what wrong if i give my business to someone I know and trust, especially when the size of the business does not require a pitch
Riverorchid Notch is our competitor, but the article made me sick
Nguyen Thanh Son
ReplyGeneral Director
T&A Ogilvy
I agree with Son, Sandip and Vladimir. Notch is a good agency that deserves the account.
I note that nobody has asked anything about the other agency (another fine agency) and how that also was awarded McDonald’s. Move along everyone. Nothing to see here.
ReplyLike CTran said, nobody seems to be questioning the other agency’s appointment. Was there no juicy backstory for that?
Business in Vietnam is conducted based on relationships, but it’s because of situations like this that big companies do big pitches, to ensure there is no impropriety, or appearance of such.
All in all, a nasty little article that’s drumming up attention for something that probably was quite innocent (and normal for Vietnam).
Reply@SaigonExpat
In many multinational companies, marketing departments will hire a consulting company to help them create a brief, organize a pitch and eventually choose an agency. That usually does not come cheap.
Reply@Vladimir
In many/most MNC’s, possibly. In Vietnam? Questionable.
ReplyI don’t believe this article is malicious. It is indeed warranted.
ReplyHave your say