A change of marketing direction has ended TBWA Chiat/Day’s five-year run as Canadian Airlines International’s English-language agency-of-record and will result in an as yet unspecified number of layoffs at the Toronto shop.
TBWA Chiat/Day President Steve Hancock says he is not sure how many staff members will get pink slips, but notes the cuts will be felt across the agency.
No layoff date has been set.
Hancock says he was not taken completely by surprise by Canadian’s decision, but was taken aback by its abruptness.
TBWA Chiat/Day got the bad news Nov. 6.
The agency and the airline had been in discussions about new advertising for the past few weeks.
TBWA Chiat/Day remains Canadian’s agency until the expiration of the contract between them Feb. 5.
Hancock says in his talks with Canadian there was no ‘clearly articulated’ complaint about the agency’s work.
He says it is sad to lose the $11 million to $12 million account – the agency’s third largest – but adds the shop is proud of the work it did for Canadian.
Under the circumstances, he says the mood at the agency is pretty good.
At Calgary-based Canadian, Laurie Schild, manager of corporate communications, insists the airline has been happy with the work TBWA Chiat/Day has done. She says the airline is looking at the way the corporation is doing all of its business, and this decision was part of that self-examination.
‘At this point, we’re just going to look at other options,’ Schild says.
She says calls have already started coming into Canadian from interested agencies, adding the review will begin with no preconceived short-list of prospective agencies.
‘We’re completely open,’ Schild says, pointing out agencies that make the short-list will be asked to submit ‘a strategic and creative presentation.’
She says that with eight agencies around the world, Canadian will be looking for ‘options that provide a bit more cohesion.
‘We are looking at ways to streamline things,’ Schild says.
She says that in addressing the challenges of the next decade, prospective agencies should acknowledge international and new media issues, as well as the problems Canadian is likely to face from new entrants in the market.
Schild stressed Canadian will also be interested in seeing how the agencies are poised to take advantage of off-shore opportunities.
Among the other agencies on Canadian’s roster are: BCP Montreal, which handles the Quebec agency-of-record account; Strategy Parallel, a small Calgary-based agency, which has the airline’s cargo account; O&M Direct of Toronto, which handles direct marketing, and DDB Asia, which handles the Asian account.
Schild says the review is open to all comers because Canadian wants to see the new talent out there, adding she encourages small shops to compete as well.
Going into the review, Cossette Communication-Marketing would appear to be one of the favorites.
The creative director at Cossette’s Toronto office is Jack Neary, who held the same post at Chiat/Day from 1991-93 and worked closely on Canadian.
Also, MacLaren: Lintas, now MacLaren McCann, and Ogilvy & Mather both reached the short-list when Canadian last reviewed its agency of record account in 1990.
At the time, Chiat/Day was still relatively new to Canada, and winning the Canadian account established its credibility overnight.
Schild expects the agency review to be completed within three months.