Experts: DraftFCB Ouster Related to Message, Not Ethics

DraftFCB is not concerned that its reputation has been damaged following the agency’s ouster by Wal-Mart, according to Wally Petersen, DraftFCB spokesman. Petersen was referring to the fact that the agency was dumped by Wal-Mart just days after the retailer fired executive Julie Roehm, who handled the review and who enthusiastically endorsed DraftFCB as Wal-Mart’s new agency.
“We’re still disappointed, but we’re focused on the future. We have a very good, strong reputation for delivering results for clients and for being a good partner,” he is quoted as saying in the Chicago Tribune.

But at least one public relations expert who specialize in crisis communications says DraftFCB should act quickly to preserve its reputation, whether it was involved in any wrongdoing during the Wal-Mart account pitch or not.

If chief Howard Draft determines the agency did nothing wrong in its dealing with Wal-Mart, it should write a “strongly worded” letter to Wal-Mart and make it public, says Robert Dilenschneider, head of the Dilenschneider Group in New York. If the team did behave unethically, Draft should express outrage and fire the people involved.

Draft should also publicly ask Wal-Mart to reconsider its stance on not allowing the agency to bid in the new competition.

Published reports hint that Roehm’s departure from Wal-Mart last week was at least partly a result of violations of the retailer’s strict ethics policies. Those policies prohibit employees from accepting anything of value - down to a single meal or a cup of coffee - from potential vendors.

The article points out that in September, Roehm attended an AdForum dinner at Nobu, an expensive Japanese restaurant in New York City, as a guest of DraftFCB. The agency made a presentation to consultants who help clients conduct agency reviews, after which Roehm made her own speech. She praised DraftFCB’s integration of direct-mail and advertising expertise as a new model for the industry.

Normally, advertisers are not invited to attend such presentations, as they are meant to educate consultants, who in turn are supposed to act as impartial facilitators for their clients, according to industry players.

But some retail experts and analysts believe the ouster of DraftFCB is related more to its new lifestyle message than to violations of policies. “Wal-Mart’s lifestyle advertising is all wrong. It shows in the sales,” Howard Davidowitz, chairman of Davidowitz & Associates, a retail consulting and investment banking firm, is quoted as saying. “If the strategy was right, clearly they would have overlooked Nobu. It’s just not that serious.”