M&C Saatchi offers jobs to 30 staffers at Team Saatchi in wake of $34 million David Jones win
August 13 2010, 2:24 pm | | 32 Comments
Julian Lee from SMH reports that M&C Saatchi, Sydney is in the process of raiding staff from the 30-strong team that worked on the $40 million David Jones account at its main competitor Saatchi & Saatchi.
The M&C Saatchi win first broke on the CB Blog three weeks back.
32 Comments
That’s great news for those that where retrenched but it does make you wonder why a client would change agencies if the same people are going to be working on it.
efficient, magnanimous and a little bit cheeky.
thumbs up m&c. i like your style.
maybe they should just stay with saatchi & saatchi then…
Then what exactly are David Jones buying in their move to M&C? The same team, but cheaper?
$37 million wasn’t it? Oh yeah sorry, that was a different heist wasn’t it.
Sounds like an interesting arrangement.
But why would a client change agencies if they end up with the same people?
I’m probably missing something, so I await responses that fill the gaps for me.
This happens in the UK the whole time and is one of the main reasons that retail advertising has lagged so far behind in terms of creativity and awards.
Charge less $ = new client
If you completely change management but keep the same people doing the work then things will be exactly the same.
Sounds stupid when you look at the above statement.
Good work M&C.
Maybe M&C’s CD’ will provide a better direction?
Might seem dumb asking, but does the client know you’re doing this?
Just do better work. I have always wondered what pretense to premium DJs has given it’s all-over-the-shop advertising.
M&C will be charging less to the client, so they’ll be offering less to the people from Saatchis.
this sounds like the plot to the next anti-workchoices ad
For some reason, it reminds me of that old ad that Tim Delaney wrote for Timberland:
We stole their land, their buffalo and their women.
Then we went back for their shoes.
The David Jones creative director was employed by S&S a few years back but more recently is under the employ of DJs. There will be no difference in creative director and no difference in the team working on it. This comes down to who would drop their pants the furthest in terms of costs. Plain, simple and ruthless, but that’s business. Right?
Is Ted getting the same offer?
It’s because, especially for an account like DJs, those who work on the day to day business are seldom responsible for relationship breakdowns.
Obviously someone high up at Saatchi pissed off someone high up at DJs. Maybe they groped someone? Maybe someone got groped?
Or (and) M&C slashed their fees.
The work isn’t likely to change noticeably, so why not hire those who know the nuts and bolts?
It’s still all about relationships.
It’s pretty simple.
The saatchis people get to keep their job doing retail for a retail agency.
Cept now, they get paid less.
The owners don’t give a fuck about the work or the standard of creative – which let’s face it can hardly get any blander.
And they’re still making around 3 million profit that they didn’t have before they won the account.
Advertising is a pretty simple business when you only care about being a sausage factory and not doing good work.
@ 3.44 – what a knob statement to make.
Guys. Read the whole story. They aren’t just dropping the same team in. The statement says they told Team Saatchi they are going to need 30-40 people to service the account. They are allowing all Team Saatchi people the chance to interview for the jobs. They are also looking at people internally at M&C as well as externally.
Man, this blog is nuts sometimes. I actually think this is a great story of an agency trying it’s best to do the right thing and not just dump everyone on the street. Would you all be happier if 30-40 people just went unemployed? Many of them are very good people. I say good on them. Is there fee lower? Probably. But that is the way it goes today. The scale of M&C probably afforded them the ability to run the account more efficiently with a few less people.
By the way, I have nothing to do with any of this. I don’t even live in Australia anymore. I just think the comments are a bit harsh.
Eh, why go pubic with all this?
Saatchi & Saatchi vs M&C Saatchi?
Same shit, but their shit smells nicer because it’s privately educated and from the Eastern Suburbs.
Do something nice and you still get slammed on the blog!
Onya M&C Saatchi!!
– Saatchi & Saatchi employer.
An agency doing something decent and right. That should be bloody applauded.
Meanwhile what’s happening in M&C SAATCHI MELBOURNE?…………..
David Jones employs the CD. Therefore when they move accounts, the CD will go with it. It was a money issue, not a creative pitch.
Here’s a little secret:
M&C won ‘t make much money for the next three years from David Jones.
Enough said.
According to this statement to the stock exchange when DJ’s announced the appointment of M&C, cost was a major factor, in fact it is mentioned 8 times:
9.48am, 23 July 2010
DAVID JONES APPOINTS M&C SAATCHI AS ITS ADVERTISING AGENCY
David Jones Limited (DJS) today announced that it has appointed M&C Saatchi Agency Pty Ltd as its advertising agency, following a five-month tender process. M&C Saatchi replaces Saatchi & Saatchi who has held the role as David Jones’ advertising agency for 14 years.
Since the 2003 Strategic Plan, David Jones has embarked upon a ‘cost and risk minimisation’ program, which focuses on delivering cost efficiencies without jeopardising the quality or consistency of the business outcomes. In the case of the Company’s advertising contract the Company has secured key creative talent by directly employing Andrew Henderson (ex Saatchi & Saatchi) in 2006 as General Manager Creative Direction and directly contracting Ted Horton as the Company’s Creative Director – Television.
David Jones Group General Manager Marketing & Financial Services Damian Eales said, “Having already secured our key creative talent, in March this year we commenced a tender process for our advertising agency contract. After lengthy negotiations and a due diligence process to ensure we were able to achieve our creative objectives in a more financially efficient manner, we have awarded a three year advertising contract to M&C Saatchi.
“This has been a difficult decision as we short-listed two exceptional agencies – Saatchi & Saatchi and M&C Saatchi. We have a great deal of respect for the Saatchi & Saatchi organisation, which has served our business well over the last 14 years.
“M&C Saatchi however was chosen as the successful tenderer on the basis of: • its demonstrated ability to deliver large and complex advertising programs for similar clients; • the strength of its leadership team and creative capability; and • the cost efficiency it can bring to our business through the scale and sophistication of its
operation,” Mr Eales said.
David Jones CEO Paul Zahra said, “The advertising agency tender is a good example of the types of cost efficiencies that exist in our business. Our approach is to ensure we do not hastily extract costs without a contingency plan to mitigate any risks to the business. Whilst this means it may take longer to implement some cost savings, it ensures we do not inadvertently jeopardise our business in the longer term and that the savings we generate are sustainable.”
In recent years David Jones has generated cost efficiencies by putting out to tender a number of its Marketing contracts including its: • Printing Contract (which has gone to tender 3 times since 2003 and each time has delivered sustainable savings); and • Letterbox Distribution services (which has also gone to tender 3 times since 2003 and each time has delivered sustainable savings).
Mr Zahra said, “We continue to look at opportunities to operate our business in the most efficient manner and are confident of identifying ways to work better and generate improved results and cost savings.”
We were one of the agencies pitching for the account. We were even on the shortlist, but we pulled out when David Jones asked us to drop our fees so low that it simply wasn’t worth having the account. If we educate clients to believe that what we do has little or no value, then that is what they will believe. The hiring of the the former staff is just reinforcement of the fact that this was simply a cost cutting exercise, nothing more. David Jones should be ashamed of themselves for exploiting the industry. God forbid any of the trade press should actually do some investigative reporting and find out the truth behind this pitch. instead, it’s just big, bold headlines about the amazing win. Sad.
there’s an elephant in the room people…..and one that Saatchi & Saatchi are doing well to keep under their hats.
If they change agency but keep the same team….maybe they hated the Saatchi management. Let’s face it, that has not been a well run agency for the past 4 years. I know I’d rather work with Tom & Tom than the latest Johnnie come lately’s over at the Rocks.
And yes, they have a shit load more retail clients over there, so maybe they know a thing or two strategically that the other mob doesn’t.
It’s always the losing agency that says they lost it on a deal.
Meanwhile…to contradict myself..
T…to your point, actually M&C can make a lot of money, because their overhead stays pretty much fixed and this becomes incremental revenue, particularly after they cut out all the recruitment fees by staffing up without paying commission. A new agency can always afford to go lower than an existing agency.
Is Ted still milking this cow?