Last month, BBH was tipped to win the account, but Woolworths denied that any appointment had been made. However, marketing director Octavia Morley has now confirmed that the change in agencies is taking place.
Bates UK is now likely to cut jobs, with Woolworths being the second major account shifted out of the agency this year. At the beginning of April, the agency was left off the pitch list for the £21m Royal Mail account, and the two accounts combined are reported to account for around one quarter of Bates' fee income.
The Woolworths review was called in January, with incumbent Bates pitching against BBH, TBWA\London and WCRS from an original long-list of seven agencies. Morley said that Bates had been "very close" to being reappointed. However, of BBH she said: "We have been impressed with the team's creativity and their ability to match our brief. I look forward to a long and successful relationship."
The review came after a poor Christmas trading period for the retailer and a disastrous advertising campaign featuring comedian Paul Kaye. The campaign got off to a terrible start, when Kaye, famous for his Dennis Pennis character, told the press: "I've just done an ad for Woolies. What a cunt. I'll have to hide from the telly for six months."
The switch to BBH could signal a change in direction for Woolworth's, which is best known for its price-led promotions. BBH, on the other hand, is known for quite the opposite -- strong brand-led work for firms such as Levi Strauss and Audi among others.
Gwyn Jones, managing director, of BBH, said: "Woolworths is obviously a great brand and a real fixture in the British high street. But if you are like me, and especially if you've got young kids, you will appreciate that Woolworths is also this amazingly, exciting treasure trove of a shop. We need to try and capture some of that excitement in the advertising."
It could also see Woolworths' "Well worth it" slogan being dropped. It had only recently replaced the "Don't forget what you came in for" tagline, which ran for four years.
At the time of the review, Morley said: "We are looking to refresh our brand identity in the year ahead and reinvigorate it in the eyes of our customers. It is therefore essential that we consider all the resources and creativity available to us."
The review was overseen by Morley and Mark Trinder, head of brand communications. It does not affected Woolworths' relationship with ZenithOptimedia, which handles the media buying.
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