Unilever fires starting pistol on $57m media pitch with major agencies set to compete
Global FMCG giant Unilever has confirmed that it will review its Australian media account as part of a global review, putting local incumbent Mindshare on alert as rival networks look to unseat them.
The account, which includes brands such as OMO, Dove, Jif, Lynx and Bushells, and had a media spend of $57m in the 12 months to December 2014 according to Nielsen, is likely to see GroupM’s Mindshare face off against Omnicom’s PHD and Mediabrands’ Initiative, which are the other agencies on the global roster.
“(We have) confirmation that the global review does cover all markets, including Australia,” said a Unilever Australasia spokeswoman. “Mindshare is the incumbent.”
All agencies contacted declined to comment, as did Unilever when asked about a possible shortlist or timeframe for the media pitch. However, it is thought that any decision would be made with a view of a January 1 2016 start date.
So Mindshare would have pitched for this business 3 times in 4 years? No agency deserves that sort of treatment.
This beggars belief.
Any agency that has pitched for an account 3 times in 4 years, with each pitch involving hundreds of additional staff hours and resources, couldn’t possibly make any money, even on an account that spends $57 million.
It would be interesting to see how long this process takes given it has been announced late January in preparation for a Jan 1, 2016 start date.
I also wonder how long the contract will be for….5 minutes?
Not to mention all the internal waste at Unilever overseeing the whole process. Or perhaps they’ve got a full time team doing this now, with automated procedures.
Question to Unilever procurement: Exactly what do you expect form your media agencies, when you subject them to 6 months worth of pitching every year or alternate year?
All your peers with simialr amounts of media budgets usually pitch once every 3 years, so that the winner can focus 3 years of time and resources on really delivering for you, in the hope you appoint them for 3 more years.
So what does doing 3 pitches in 4 years actually achieve for you?