Coles Group, a top 10 advertiser, is creating its own specialised agency, Smith Street, with Omnicom, the winner of its pitch.
The move follows what Coles described as a "robust" four-and-a-half-month RFP process for its marketing services.
The supermarket group in March threw open its agency roster to pitch, for the first time in more than a decade. The incumbents were DDB, Big Red, TBWA and OMD. Big Red was out of the pitch process.
Three of the big global advertising groups -- Omnicom, Publicis and WPP -- were asked to respond to an operational RFP. WPP was the first to drop out due to a "conflict” and was replaced by Accenture Song.
The bespoke agency, Smith Street, will be made up of experts in customer experience, data analysis, creative services, media management, culture and insight.
The Smith Street team will be handpicked from across the Omnicom Group.
Omnicom, the successful agency in the RFP process, will supercharge the skills around the table at Smith Street with experts across the network and work with existing partners Deloitte Digital to bring data and analytics to the core of Coles marketing.
Smith Street will be created as a Customer Centre of Excellence designed to have a one team approach to creative, media and digital marketing activity for Coles Group.
The structure will also be a cornerstone in supporting Coles in providing more meaningful and personalised customer communication, insights and reporting.
Omnicom Group CEOs Peter Horgan and Andrew Little said the team is excited to help make customer obsession at Coles feel real to every Australian.
They said: “Exceptional customer experience will be at the heart of what we are trying to achieve, and our experts will work together with the talented Coles marketing team to ensure shopper trends, behavioural science and data analytics is integrated into every campaign, end-to-end."
Coles CMO Lisa Ronson: “Our marketing strategy is to position Coles as the most trusted and sustainable retailer in Australia by demonstrating our purpose through relevant omni channel experiences, focusing on targeted trusted value, sustainability, loyalty and health & happiness.
“This process has ensured going forward we will have one lead, one home and one ambition for the Coles marketing team and will have a structure that moves at the pace of Coles customers.”
Deloitte Digital Partner Katherine Battle-Schulz said the team is excited to help Coles understand the impact of marketing investment and help predict future returns on that investment.
“This is a transformational way of approaching marketing and genuinely puts the customer at the heart of all thinking, while helping the Coles marketing team drive growth across the business,” she said.
Smith Street will be a physical space for the agency and Coles team to come together.
It will be led by a board made up of a mix of Coles and agency representatives to ensure the best outcome for Coles customers.
It will officially launch in the new year with an implementation team from Omnicom Group to onboard with each Coles Group marketing team over the coming months.
Smith Street board representatives:
Lisa Ronson – Coles Group Chief Marketing Officer
Samantha McLeod – Coles General Manager Brand, Digital and Design
Kate Bailey – Coles General Manager Media and Sponsorships
Peter Horgan – Omnicom Media Group CEO
Andrew Little – DDB CEO
Sian Whitnall - OMD CEO
Kimberlee Wells – CEO, TBWA
Mike Napolitano – DDB Managing Director
Katherine Battle-Schulz – Deloitte Digital Partner
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