Bates Loses PacSun, Sees Second Round of Layoffs
Holiday Inn Costa Mesa Goes Electronic; T & O; Shuffles Exec Spots
Marketing & Media by Jennifer Bellantonio
The bell seems to be tolling for Bates USA West in Irvine.
Last week, Anaheim-based Pacific Sunwear of California Inc. confirmed it cut ties with Bates and is trying to find a new home for its $10 million creative and media account.
Three undisclosed Southland agencies,all reportedly with ex-Bates people,are in the running. I’d keep an eye on the Newport Beach office of W.B. Doner & Co., which recently hired Mark Weinfeld, Bates’ former senior vice president of strategic planning.
The Pacific Sunwear blow comes as Bates, part of London-based Cordiant Communications Group PLC, is stumbling after losing Fountain Valley-based Hyundai Motor America Inc.’s national and media accounts.
And Hyundai’s national dealer association business,pegged at $100 million-plus according to agency executives,may not be far behind. The contract at Bates is up on Sept. 30, and Hyundai’s new creative agency, Dallas-based The Richards Group, already is in talks with Hyundai dealers.
A gloomy picture got even gloomier when news hit late last week that Bill Whitehead, U.S. regional president at Bates’ New York headquarters, resigned.
Just days before he left, Whitehead told the Business Journal that Bates was committed to having a West Coast presence in Irvine,with or without Hyundai’s business.
His words were still lingering when Tim Hart, Bates USA West’s chief executive and president, and some 30 others were let go in a second round of layoffs.
Industry observers say it will be hard for Bates to keep its Irvine office open without more work to support it. The office’s remaining work,besides the dealer business,includes Burbank-based Aramark Uniform Services, which spends less than $1 million yearly.
Going Digtal
The Holiday Inn in Costa Mesa has scrapped brochures in favor of electronic ones to slash its printing costs.
The hotel, which recently underwent an $8.6 million renovation, tapped E-marketing Associates in El Monte to develop electronic brochures.
The switch, according to property manager Joe DeDio, saves the hotel “tens of thousands of dollars” in printing costs each year.
Plus, he said, “We’re able to make changes, offer specials and update prices quickly.”
The hotel also is looking at placing its banquet menu online to save more money, DeDio said.
Hotels are watching their spending these days as the industry struggles to come back after Sept. 11.
But the Holiday Inn said its faring better than some. According to a spokesman, bookings are up 24% since last year.
The hotel attributes the growth to the 13-month renovation it did last year. It now features high-speed Internet access in rooms, an updated restaurant and other changes.
T & O; Shuffle
Irvine-based T & O; Group is playing musical chairs.
Agency president Steve O’Leary has stepped back to become chairman and “devote more time as strategic adviser to clients,” while general manager Dave Robinson is assuming the president’s role.
The move comes as T & O; is bolstering its creative team, which includes the additions of Scott Montgomery, formerly of Foote, Cone & Belding Southern California, and Mike Hall, formerly of Young & Rubicam Inc.
T & O; officials are looking to compete with larger agencies on bigger accounts. Last year, the agency walked away with the Irvine-based In-N-Out Burgers account after a lengthy review.
Big Kudos
Laguna Hills-based Big Man Creative Inc. is getting the red carpet from one of its clients, American First Credit Union.
Earlier this year, the credit union tapped Big Man Creative for marketing work to get the word out about its “Better than 0%” promotion.
The agency developed in-store posters, postcards and two direct mail pieces, which were sent to credit union members and prospective members.
The results are in.
The credit union says during the campaign, which ran from Jan. 1 to March 31, it funded 1,018 loans amounting to $18.3 million in loan balances. And it credits Big Man Creative for the boost.
“With the help of Big Man Creative, American First Credit Union exceeded its loan goals for the first quarter of 2002,” said Ryan Zilker, the credit union’s marketing manager.
Bits and Pieces:
Doner, Newport Beach, has landed itself another bigwig. John Morton, formerly of Grey Worldwide in New York, recently joined the agency as vice president, account director. He’ll oversee the agency’s PacifiCare Health Systems Inc. account Irvine-based NetScope, which has 20 workers, recently was tapped by Vital Link OC, to revamp its Web site. Vital Link works with high school teachers and local business leaders to ready students for the working world Costa Mesa-based Robertson & Schmidt have been busy developing marketing work for Charter Communications Inc. and Time Warner Cable/DIY Network.
