David Jones (DJS) has appointed M&C Saatchi Agency 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 DJS 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.
“Having already secured our key creative talent, in March this year we commenced a tender process for our advertising agency contract,” said David Jones Group general manager marketing and financial services, Damian Eales.
“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 past 14 years,” he said.
David Jones CEO Paul Zahra said the advertising agency tender is a good example of the types of cost efficiencies that exist in the business.
“Our approach is to ensure we do not hastily extract costs without a contingency plan to mitigate any risks to the business,” said Zahra.
“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.
“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,” said Zahra.