Accounts in Review: Why JCPenney pulled the plug on its media review

By Andrew McMains From Adweek
Stays with OMD after reaching out to other shops
Never mind.
After contacting outside shops, JCPenney this week pulled the plug on its media review and retained OMD, which has worked for the retailer since 2000. The decision came amid the exit of chief marketing officer Debra Berman, who left after just 19 months. Other executives have absorbed her responsibilities while JCP seeks a new marketing leader.
JCP’s about-face surprised some review participants, particularly given that other retailers have called reviews in the past year, often changing agencies in the process. But sources said OMD hustled to meet JCP’s objectives by, among other things, offering more data services—something that the agency has become know for—and reducing its fee. So, why go through the paces of a pitch if you can get what you want now? Hard to argue with that logic. JCP and OMD declined to comment.

IMAGES & Facts:
The retailer preserved a long-time relationship. Photo: Getty Images
1Unilever: Global MediaUnilever: Global Media
Media spend: $5 billion
Incumbents: Mindshare, Initiative, PHD
Contenders: Incumbents, possibly others
Decision: December
2Hershey: Creative Hershey: Creative
Media spend: $650 million
Incumbents: Arnold (traditional), Havas Worldwide (digital)
Contenders: Incumbents, undisclosed others
Completion: April
3Sears/Kmart: Creative, MediaSears/Kmart: Creative, Media
Media spend: $560 million
Incumbents: Sears: mcgarrybowen, Havas Worldwide, Havas Media; Kmart: FCB, Havas Media
Contenders: Teams from Interpublic, Publicis Groupe and Havas, led by FCB, Leo Burnett and Havas Worldwide, respectively
Completion: May
4JCPenney: MediaJCPenney: Media
Media spend: $430 million
Incumbent: OMD
Contenders: Incumbent, others to be determined
Retained by OMD
5U.S. Army: Creative, MediaU.S. Army: Creative, Media
Media spend: $180 million
Incumbents: McCann Erickson, UM
Contenders: Incumbents, undetermined others
Completion: March 2016
6Royal Caribbean: CreativeRoyal Caribbean: Creative
Media spend: $80 million
Incumbent: JWT
Contenders: Incumbent, undetermined others
Completion: May
7Scotts Miracle-Gro: MediaScotts Miracle-Gro: Media
Media spend: $80 million
Incumbents: MEC, Active International
Contenders: MEC, Horizon Media, Zenith Media, Mediahub, Havas Media
Consultant: Pile + Co.
Completion: March
8Ameriprise Financial: CreativeAmeriprise Financial: Creative
Media spend: $40 million
Incumbent: R/GA
Contenders: McCann Erickson, FCB Garfinkel, Zimmerman Advertising, Merkley + Partners
Consultant: Pile + Co.
Completion: March
For more on this story go to: http://www.adweek.com/news-gallery/advertising-branding/accounts-review-why-jcpenney-pulled-plug-its-media-review-163571