Agency News: Purolator rejects all finalists: Agencies, ICA unhappy with nature of review process

Purolator Courier’s decision to go back to the drawing board after a long-winded review that began last October has agencies grumbling with dissatisfaction.

And critics contend that the courier company’s indecisiveness could result in both agencies and clients being more cautious with respect to how reviews are handled and responded to in the future.

After inviting agencies to compete in a review – almost invariably a costly and time-consuming process for the agencies involved – Purolator decided last month against all three groups on its shortlist and instead has gone back to talk to one of the agencies that didn’t make the cut.

The Mississauga, Ont.-based company received 48 responses to its request for submissions which was posted in its entirety on its Web site.

The responses were culled to a list of eight agencies and then to a shortlist of three: Cossette Communication-Marketing, Grey Advertising and ICE Integrated Communications & Entertainment with Mosaic Direct.

Many staff members at those agencies gave up their Christmas holidays to prepare assignments for early January presentations to Purolator.

Andy Krupski, president and ceo of Grey Canada, says he is disappointed by the end result; not that his agency didn’t get the job, but rather that no decision was made at all.

‘It’s sad when people go to a lot of work and a decision is not ultimately made.

‘One would think after that process, you would certainly be able to find the partner you wanted to work with. Whether or not you found the advertising is another issue.’

Maurice Levy, senior vice-president of marketing for Purolator, says the agencies responding to the company’s request for submissions knew up front it was possible no selection would be made.

In the outline of the review process that prefaced the questionnaire, Purolator stated, ‘However, should there be no suitable candidates, an appointment will not necessarily be made.’

Levy says the company went into the process not looking to buy an advertising campaign but to find an agency that could execute on the company’s strategy and positioning.

He says Purolator conducted the review using a point system in accordance with Association of Canadian Advertisers’ standards that it adapted for its own needs.

‘In hindsight, perhaps we may have put another agency or two on the [short]list. Maybe three was too short,’ says Levy.

‘We have to find the right partner. It’s that simple. And we’re not going to compromise our integrity or our desire to do what’s best for the business or our customers,’ he says.

Purolator paid each of the three shortlisted agencies an honorarium for their work.

The company is in discussions with an unidentified fourth-ranked agency on its list and will take it through the same procedure as the other three.

A decision is expected later this month.

Rupert Brendon, president of the Institute of Canadian Advertising, says it was inappropriate for Purolator not to appoint an agency from the three under consideration, particularly after the time, effort and cost put into the presentations.

He says the ica has been trying to change the way reviews are carried out for a number of years, particularly when it comes to requests for speculative creative.

He declined to say whether the ica had voiced its concerns in a letter to Purolator.

Brendon says the ica applauds the thoroughness of the Purolator process but, in the Institute’s opinion, the process went wrong when the client declined to appoint a winner.

‘Speculative creative or creative concepts are still `spec,’ even when token payments are offered, which do not cover direct time and out-of-pocket [costs] that can easily amount to $200,000 per agency these days.

‘Why do agencies participate then? Because it’s a very competitive business and they know when a client asks for `spec,’ there will always be an agency that will do it,’ says Brendon.

‘They are also proud of their professionalism, and they expect one of the finalists to be a winner. They do not expect the client to backtrack afterwards and start the process all over again.’

Brendon says agencies can’t be expected to come up with the right answer to the client’s marketing challenges during the review process because there is insufficient time and knowledge of the client’s business to be able to do so.

They see the process as an expensive way for the client to evaluate how the agency thinks and works so it can make a more informed choice.

After the selection, he says, the client and agency can develop the right team approach to solve communications problems and get the most effective advertising.

‘All agencies will now have to assess the degree of risk before investing so heavily on so uncertain an outcome, especially when no one wins,’ says Brendon.

‘The ica believes the right process is a capability presentation based on previous work, sometimes even a strategic commentary – [that’s] all the federal government asks for to choose an agency.’

Prior to calling the review, Purolator was using Bensimon Byrne of Toronto as its interim agency since splitting with Lowe SMS in January 1996.

Media buying is handled by Harrison Young Pesonen & Newell.