Showing posts with label cronyism. Show all posts
Showing posts with label cronyism. Show all posts

9898: Poached Bad Eggs.


Advertising Age reported Draftfcb is suing Digitas for allegedly poaching talent. Forget the fact that swapping “talent” between the two agencies is akin to floating turds between two toilets. Ignore the reality that Draftfcb has literally and inhumanely dumped hundreds in recent months—and mismanaged thousands more in recent years—meaning anyone with any sense of corporate loyalty would have to be patently insane. Don’t even consider details like Digitas is run by ex-Draftfcb Chief Marketing Officer Tony Weisman, one of the key scoundrels directly involved with the infamous Draftfcb/Walmart debacle, which proves both sides of the current scenario feature an all-star cast of assholes. No, what makes this fiasco exceptionally disgusting is the demonstration of traditional employment practices in the ad industry. That is, the game is played with exclusive connections, cliques and cronyism. Executives with hiring authority migrate from one shop to the next, ultimately recruiting former flunkies and recreating familiar teams. And rest assured, this behavior is happening at Digitas and Draftfcb. Diversity be damned, despite the Draftfcb declaration of multicultural harmony by 2014. What is taking place here is actually closer to reflecting 1914.

DraftFCB Levels Poaching Lawsuit Against Digitas

Agency Alleges Former Employees Wrongly Recruited Former Colleagues to New Shop

By Todd J. Behme, Kate Macarthur

Interpublic Group of Cos.’ DraftFCB has sued two former employees and cross-town agency Digitas, alleging that the pair wrongly recruited former DraftFCB colleagues after joining the Publicis Groupe-owned digital shop.

Chicago-based DraftFCB alleges that Brooke Skinner and Kevin Drew Davis—a senior planning executive and digital creative exec, respectively—violated signed agreements with DraftFCB that permitted them to defect to a competitor but mandated they could not to be involved in recruiting or hiring former colleagues for one year.

“Both of them have violated that agreement, for in the months after they joined Digitas, at least five of their DraftFCB colleagues, with whom they had worked closely while at DraftFCB, have joined them at Digitas,” says the suit, filed in Cook County Circuit Court in Illinois.

The news of the lawsuit was first reported by Ad Age sibling Crain’s Chicago Business.

Ms. Skinner, who was senior VP-planning at DraftFCB, led planning for the S.C. Johnson account business, according to the complaint.

When DraftFCB in July lost its longtime client S.C. Johnson after a review (the business went to Ogilvy and BBDO, and the move resulted in a round of layoffs of DraftFCB), Ms. Skinner left in August to join the Chicago office of Boston-based Digitas.

Rema Waugh, an associate media director who also worked on the S.C. Johnson account and with whom Ms. Skinner “collaborated closely,” joined Digitas 10 days after Ms. Skinner, the lawsuit says. The complaint further states that Ms. Skinner collaborated with Seth Goldberg, senior VP-planning, who also left the agency to join Digitas earlier this month.

Mr. Davis, who was exec VP-head of digital creative, left in October to join Digitas, the complaint says. Since then, three former DraftFCB employees who worked in digital creative have joined Digitas, according to the suit. It says Nick Soonfah-Senior resigned Dec. 1; Matt Weiner resigned Jan. 13 and Morgan Aibinder resigned Feb. 22, and that Mr. Weiner was one of two employees who reported to Mr. Davis at the time Mr. Davis left DraftFCB.

DraftFCB says in the suit that all employees are required to confirm their agreement with a code of conduct that includes a non-solicitation provision. The agency further contends that Digitas knew of the agreements and influenced Ms. Skinner and Mr. Davis to help hire their former co-workers against those agreements.

The agency is asking the court to temporarily and permanently restrain Digitas, Ms. Skinner, Mr. Davis and the other five former employees from directly or indirectly trying to hire any other DraftFCB employees, and for various damages to be determined at trial.

Tony Weisman, president of Digitas’ Chicago, Boston and Detroit region, who joined the agency in 2007 after serving as chief marketing officer at DraftFCB, declined to comment. In an email, a DraftFCB spokesman said: “It is against company policy to discuss specifics around any pending litigation. We will say that if former employees violate non-solicitation agreements that they had willfully signed, we will take the necessary steps to enforce those agreements.”

Poaching suits are often used as a tool in adland to publicly air grievances and try and put an end to employee defections. Back in 2008, the now defunct shop Agency.com sued iCrossing for allegedly carrying out a scheme to steal employees and clients such as 3M and Hilton in violation of non-solicitation clauses.

Often, not very much results from such suits.

About two years ago, another Interpublic Group agency, McCann, filed a poaching lawsuit against MDC Partners’ KBS&P. The suit was quickly settled, and no monetary damages were paid. MDC and KBS&P merely agreed not to solicit any McCann employees for a period of six months.

9706: Walgreens Review Is Rx For Comedy.


Adweek reported the creative portion of the Walgreens account is going into review. Can’t help but believe the upcoming competition will provide comedy galore. For starters, the incumbent agency, Downtown Partners, is an Omnicom unit. And everyone knows Omnicom is masterful at keeping unhappy clients in the network by serving up sister agencies as replacements. Second, Walgreens’ digital agency is Publicis Groupe’s Digitas, which recently “won” the Sprint account via old-fashioned cronyism. It all sounds like a prescription for Corporate Cultural Collusion.

Walgreens Reviews Creative Business

Annual media spend approaches $200 million

By Andrew McMains

Add Walgreens to the list of restless retailers.

The drugstore chain, which has more than 8,200 locations, has contacted agencies about its creative business via a request for information that’s due back next week.

The document asks agencies about their experience in retail, healthcare and with Fortune 500 companies. The RFI also identifies potential conflicts, listing Walmart, Target, CVS, Rite Aid and Amazon as direct competitors.

Walgreens spent more than $192 million in media in 2010 and about $164 million in the first 10 months of 2011, according to Nielsen. Those figures don’t include online spending.

The chain’s lead creative agency is Downtown Partners in Chicago, a unit of Omnicom Group. Publicis Groupe’s Digitas handles digital creative efforts. Calls to each agency and Walgreens were not immediately returned.

Not in play, according to the RFI, are media planning and buying (both traditional and digital), search engine marketing/optimization and multicultural efforts.

Other retailers who have reviewed or shifted creative business in the past three months include Radio Shack, JCPenney, Staples and Dick’s Sporting Goods.

Retail, of course, is among the business sectors hardest hit by the economic downturn, so the restlessness is understandable. As consumer confidence (and buying power) wanes, so do sales at many retailers. What’s more, many stores offer the same merchandise, which puts the onus on marketing to develop brand distinctions beyond the price points.

Last year, Walgreens developed its first national campaign for its namesake line of health and wellness products. The effort included TV spots, online videos, Web banner ads and blogging.

Walgreens posted a 6 percent increase in sales in 2011 to $73.1 billion. In December alone, sales grew nearly 3 percent to $6.98 billion, according to the Deerfield, Ill.-based company.

9575: Burger Buddies Spark Account Moves…?


Advertising Age reported Carl’s Jr. and Hardee’s creative duties were shifted from David & Goliath to 72andSunny without a formal review. The transition sans pitch was likely rooted in creatives from Mendelsohn Zien—who handled the accounts before David & Goliath—taking jobs with 72andSunny. In the advertising industry, cronyism and AOR status make familiar bedfellows.

Carl’s Jr., Hardee’s Hand Creative to 72andSunny Without a Review

Fast Feeder Parts Ways With David & Goliath After Less Than A Year

By Maureen Morrison

Less than a year after hiring indie shop David & Goliath to handle creative work for Carl’s Jr. and Hardee’s, parent company CKE Restaurants has moved the account to 72andSunny, without a review.

MDC Partners-owned 72andSunny had been on the roster, handling digital duties. The sudden change comes as the fast-food marketer has expressed dissatisfaction with the creative product.

Said Brad Haley, chief marketing officer at CKE Restaurants, in a statement: “We would like to thank David & Goliath for their hard work and dedication over the past year. They are a great group of people, but we became concerned about the recent direction of the advertising and determined that we needed to make a change.”

Carl’s Jr. and Hardee’s media agency, Interpublic’s Initiative, and its PR agency, Weber Shandwick, were not affected by the creative move.

“We had an amazing run with CKE and helped them achieve their second-most-successful burger launch in the last decade, with the Turkey Burger,” said David Angelo, founder-chief creative officer at David & Goliath, in a statement. “The Turkey Burger launch reversed Carl’s Jr.’s declining sales and substantially increased the positive momentum of Hardee’s sales. We wish them well and will continue to pursue brands that embrace our Brave philosophy. We certainly have an appetite for fast food.”

Before D&G, CKE worked with Hakuhodo-owned Mendelsohn Zien for 16 years. It put the creative account into review in October 2010, and the incumbent participated in the review with David & Goliath and 72andSunny.

According to people familiar with the matter, that pitch was sparked by the departure of two top creatives on the account, Mick DiMaria and Justin Hooper, who left Mendelsohn Zien for 72andSunny. The review wrapped up in January.

While at Mendelsohn Zien, Messrs. DiMaria and Hooper were behind the Kim Kardashian and Padma Lakshmi ads, spots that exemplified Carl’s Jr.’s sexed-up image. D&G’s first ad, launched in March, featured a bikini-clad Miss Turkey touting the chains’ turkey burger. People familiar with the matter said that the work by D&G was viewed as “more generic” than the work done by Mendelsohn Zien. It now remains to be seen if CKE will return to the sexy ads.

CKE in September posted its second-fiscal-quarter results, which showed Carl’s Jr. up 2% and Hardee’s up 2.5%. Year-to-date, Carl’s Jr. was up 2%, Hardee’s was up 6.4% and combined sales were up 4.1%. CKE in 2010 was bought out by private-equity firm Apollo Management in an estimated $1 billion deal.

The combined budgets for both restaurant chains in 2010 was $63.6 million in domestic measured media, according to Kantar, up from $50.3 million in 2009. For the first eight months of 2011, U.S. measured media spend was $39.5 million, according to Kantar. The Carpinteria, Calif.-based chain, which has more than 3,100 restaurants in 42 states and 18 countries, also owns smaller restaurant brands such as Red Burrito and Green Burrito.