Woolworths media pitch decision expected mid-August, after board meeting
A decision on the Woolworths media pitch is understood to be likely by the middle of August following a meeting of the board, Mumbrella understands.
The pitch for one of the biggest media accounts in Australia, worth an estimated $240m, has been going on since February and now sees incumbent Carat facing off against OMD and Mediacom. Independent agencies Match Media and Bohemia are also thought to be part of the pitch in a strategy/support role.
The closely watched pitch was tipped to have been decided by Easter, but has had multiple extensions since the supermarket bought in a new marketing chief in Tony Phillips in March. Sources have told Mumbrella that a decision is now likely within the next fortnight, which will then be ratified by the board.
A spokesman for Woolworths yesterday declined to comment.
Gosh, what a mess. You have to feel for the agencies concerned, especially the incumbent.
Will be interesting to see how things turn out. With swapping out leadership at Carat, a new COO soon to be CEO in Kim, GM Angus moving to MItchells and MD Norris on a free transfer it could very well pave the way for retention.
Still splitting or moving it seems more likely now given Carat have not really made any hires meaning confidence in the decision is low at best.
My money is on a OMD – Carat mix, or as a wild card Bohemia secretly staffed up by IKon exiting staff together with OMD.
this is a great example of a client treating agency staff, and agencies generally with arrogance, disdain and utter contempt.
the fact that there has been misinformation , changes of decision making process and even now still some vagueness about how the winner is chosen and when, says a lot about the company.
Poisoned chalice, methinks
They’d be better off moving the whole thing in-house. Advertising as well.
They don’t need an agency, not the way they treat suppliers.
At least the agency that ‘wins’ the business knows what they’re in for.
If a business relationship doesn’t start well it certainly isn’t going to end well.
I agree with comment #4. Woolworth’s should bring this all in house. The main issue for Woolworth’s is there aren’t too many hipsters living anywhere near Norwest.
Can someone please educate me on how some agencies win pitches, is it all spin? I mean some of these agencies pitching have no one to service these big wins…. don’t the people make the business. So lets say OMD win it… OMD go on a massive recruitment drive and hire people to service the business? but in fact they won the business based on their people??? Help me understand
@ observer
I think what happens is they fly in the best people from the network to present on the day and sell it in as the people. The people then all fly home.
The agency if successful then makes existing staff work double shifts to keep things going while they recruit. They put their best people on it. The best people, when doing double shifts, then under perform while trying to do two peoples jobs.
The agency crosses their fingers and just can’t wait til the new people to arrive so they can then be seen to be effective and decisive at management by firing the previous high performers who have just killed them selves working double shifts while the new guys are recruited.
In the meantime they send the clients tickets to the movies, wear extra make up and the MD telephones the client once a week, pretending to know something about the business while tap dancing away.
In time everyone hates their job and the client as the agency has agreed to work for the lowest fee possible while finding clever ways to make money on the side. The money however never goes back into building the team so the staff are expected to work 8-10 most nights.
Big bonuses all round, movie tickets and invites to the Voice finals for the client and everyones happy.
Its a proven formula. And yes it is spin.
@Prehistoric future dinosaur
You are my hero
Just like Carat flying in their best troops from Melbourne who will never work on the Wollies account.
The clients is well aware but at the end of the day, for Wollies, lowest rates win.
Enjoy the race to the bottom folks.