Y&R and Edcon: ‘A pitch we had to win’

Hours after winning the R150m Edgars advertising account, Y&R’s chairman Yossi Schwartz posted a Facebook quote from the ad agency-themed television series Mad Men, saying: “Make it simple but significant.”

But by all accounts winning the business was anything but that. For Schwartz it was a roll of the dice he had to win, having been fired by long-standing client Pick n Pay at the beginning of the year. Says one Y&R insider: “Make no mistake, we were on the ropes and this is one account we had to win. It was made perfectly clear in the agency.”

Schwartz has a reputation of going big when chasing business. Some years back in trying to hold on to the MTN account he shot an entire TV commercial in a matter of days, drawing on the resources of global holding company WPP.

The Financial Mail understands this time around WPP chairman Sir Martin Sorrell was drafted into the process to offer guarantees of a better price than any of the competing agencies. Notes an industry source: “This was a survival game for Y&R which was even linked to mergers with other local agencies after losing Pick n Pay.” Agencies who have worked on the Edcon business say margins are tight and this time around cost cutting will be “perpetual partner”. Y&R along with Y&R Labstore and Native VML replace incumbent M&C Saatchi Abel.

In a statement Edgars says: “We look forward to joining forces with the team at Y&R to reposition the Edgars brand in line with our new strategy, which places strong emphasis on customer-centricity and delivering our newly aligned service.” Earlier this year CEO Bernie Brookes said better use of marketing technology would be a new focus using customer data to build new strategies.

To that end much of the burden is likely to fall on digital agency Native.

Edcon’s Jet brand has been retained by Joe Public after a two-way pitch with DDB. M&C Saatchi Abel withdrew from the process. Specialist brand and digital agency Promise has won the speciality stores account, including Red Square and Boardman’s from Ireland/Davenport. Promise already has the CNA and Edcon Cellular accounts and the company is familiar with its customer base and business model.

In a further consolidation the Edgars and Jet Club Magazine publishing account has been awarded to The Publishing Partnership. The company already publishes the Jet Club Magazine and notes Edcon has strong experience in retail publishing, with the Clicks Clubcard Magazine as a major client.

The complexities of retail advertising and how Y&R will approach it has the ad industry talking. Says one senior executive: “There is a huge difference between selling baked beans and fashion and it’s critical any agency playing in this space has the ability to spot trends and act on them quickly.”