MediaCom and GroupM out of Pacific Brands pitch saying businesses ‘no longer aligned’
GroupM agency MediaCom has announced it will not be part of the current pitch for the $16m media account of Pacific Brands.
Taking the unusual step of issuing a statement distancing itself from the pitch this afternoon, MediaCom’s Melbourne managing director Peter Barrie said the agency had considered its position and “after careful consideration and dialogue it is clear to us that our businesses are no longer aligned.”
Barrie’s statement also hinted at tensions between MediaCom and Pacific Brands with the media agency declaring that while it was conscious of pressures on clients it also had to meet the expectations of its own staff and shareholders.
“As an industry we are acutely aware of the challenges that face clients and their agency partners,” said Barrie. “We have to deliver on multiple levels to our staff, clients, business and shareholders.”It also added that no other GroupM agency would be part of the Pacific Brands pitch which is being led by internal procurement.
MediaCom has worked on the Pacific Brands media account for over a decade. In recent years Pacific Brands has seen a change in marketing management, and last year moved its main creative duties from Banjo to Clemenger BBDO Melbourne.
Barrie said he wished the clothing brand well and that the agency would work towards a smooth transition with which ever agency was selected by the client.
Pacific Brands is an umbrella company for brands including Bonds, Clarks, Berlei and Hush Puppies.
The full MediaCom statement:
MediaCom today announced it will not defend the Pac Brands business after a partnership of more than a decade.
Peter Barrie, Managing Director of MediaCom Melbourne said of the decision: “Our relationship with Pac Brands has been built over many years and we have enjoyed many successes together.
The team are immensely proud of the work we have produced.
However, after careful consideration and dialogue it is clear to us that our businesses are no longer aligned. As an industry we are acutely aware of the challenges that face clients and their agency partners.
We have to deliver on multiple levels to our staff, clients, business and shareholders.
We wish Pac Brands and their team every success in the future, we will continue to deliver exceptional work and ensure that there is a seamless transition to their new media agency partner, when selected.”
Note: No GroupM agency is taking part in the review.
Nic Christensen
Good on ’em. More agencies should have the self respect to make these sorts of decisions.
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Hats off to you Peter. It takes courage to decline a pitch – I know I have done it.
As we age ‘intuition’ is a powerful business tool that many managers fail to use, I predict using yours on this decision will benefit your business in many ways – Gill, Evergreen.
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Good to see Agencies standing up to the relentless screwing by clients, PAC Brands are obviously under a great deal of pressure from retailers, they won’t improve the bottom line by screwing a couple of percent from media agencies, it may look good on paper internally and give the marketing and procurement bozo’s a temporary lift, however it will not lift sales and profit. The same failed philosophies seem to be perpetuated at PAC Brands.
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Sounds like code for : cost reduction demanded by client, we’re already skin to the bone.. cant go any lower
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