The Woolworths media pitch: a case study on how not to treat agencies
In the wake of the decision by retailer Woolworths to retain Carat as its media agency, Mumbrella’s Nic Christensen asks if the much-maligned pitch for the $240m account is a case study in how clients should not treat their agencies.
It’s funny how history has a habit of repeating itself, but you’d like to think the marketing world would occasionally learn a trick or two. Some of the decisions in the process which led to the decision by Woolworths to keep its mammoth media account at Carat certainly make you wonder what goes through the minds of some clients when they pitch.
The article to the right is from an edition of B&T several years ago, with the Advertiser Federation of Australia slamming Coles for running a pitch in the middle of its sale to Wesfarmers.
In an idealistic world putting things on hold in times of corporate upheaval or senior mgmt changes would be the go however in the real world things keep moving ( all be it a bit slower) so pitches have to keep moving.
If you were to take the idealistic approach, nothing would ever happen at the likes of Westpac with its constant marketing revolving door or at David Jones where they have been for sale for what seems like an eternity.
It may not be ideal but life never is.
Another consideration for smaller accounts that Woollies is that whilst you’re waiting for the decision, you’re hesitant to pitch for other business that might clash/conflict.
Unfortunately there is no onus on clients to recognise the burden, none at all. Just like there is no onus on Woolworths to recognise that by squeezing any other supplier that they’re affecting the smaller parties operations. This is business, It’s a very competitive market with a lot of players willing to work on tight margins. If there were only two dominant agencies then offers of compensation would be worth discussing; as it is, life isn’t fair and that’s what you have to work with.
“I’ve criticised before the constant new business chase some media agencies are on, and they have to accept some responsibility. But there is also an onus on clients to recognise that when they pitch this puts a burden on agencies and often diverts major resources from existing clients. ”
First, Clients don’t care as they are apathetic towards their suppliers, this is human nature.
Second, Agency bosses don’t care as they are apathetic towards their employees, this is human nature are there is always someone fresh out of Uni waiting in the wings for agencies to burn-out.