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Pitch procedures saga: Transnet goes on offensive

28 May 2009 08:0210 commentsBizLike
State-owned Transnet Limited has rejected accusations levelled against it that it breached the Association for Communications and Advertising (ACA)'s guidelines by inviting nine advertising agencies to submit pitch proposals. Its spokesperson John Dludlu told Bizcommunity.com yesterday, 27 May 2009, that the company acted in good faith and will continue to make appropriate decisions according to its procurement policy.
“The ACA's guidelines are exactly what they purport to be and not the law for the Medes and Persians. Therefore, there's no truth in suggestions that Transnet's public invitation for the submission of proposals by advertising agencies constitutes an illegality,” Dludlu said.

“For the record, Transnet's invitation was published for the benefit of industry players. No invitation was directed to the ACA or any industry players acting in concert with one another,” Dludlu pointed out.

Industry players call for boycott

Rob McLennan, of Network BBDO Johannesburg and chairman of the Creative Circle executive committee, last week slammed Transnet for flagrantly ignoring the ACA guidelines regarding pitch procedure by asking nine agencies to do a creative pitch in under just over a week's time.

Other industry players are also said to be furious about Transnet's ‘rebellious actions' and have called on the bidding parties to boycott the company's invitation and unequivocally condemn this behaviour for the best interests of the industry.

However, the worst part of the saga is that Transnet has declined to name the bidding parties!

A heated debate is going on right now in the corridors of advertising agencies, some of which have called on the ACA to severely ‘punish' the Carlton Centre-based parastatal.

“We all understand that pitches are necessary, but agencies get upset when the pitch procedures that the industry has determined by the ACA are blatantly and purposefully disregarded,” McLennan said.

Dludlu unfazed

“So at the last exco we discussed that if there was going to be a pitch that didn't conform to the ACA guidelines of no more than three agencies and a pitch fee, we would chat to each other and agree not to do a creative pitch.”

Dludlu was unfazed by agencies' outcry and ‘untruths', however, saying: “There's no truth in suggestions that agencies were requested to submit a pitch in just a week.

“To the contrary, a total of five weeks was provided to the participants for this purpose. In accordance with transparent and fair procurement processes applicable to us, we do not disclose our potential suppliers to third parties.”

But while Transnet continues to stand its ground, Dludlu said the company was aware of ACA's concerns and has engaged them thereon.

Collusive tendering?

“We have noted an email addressed to us by ACA purporting to withdraw, from participation in this procurement process, certain bidders it has referred to as its members.

“Transnet will not be party to any attempt that, on the face of it, suggests collusive tendering by some members of the industry. In accordance with our procurement policy, we will proceed with the process and make such decisions as we consider appropriate."

Odette Roper, CEO of ACA, told Bizcommunity.com that her organisation will only comment after meeting with the warring parties. A meeting to discuss the crisis facing the advertising industry was due to take place on Monday and Tuesday.

Watch this space!
 
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About Issa Sikiti da Silva

Issa Sikiti da Silva is a winner of the 2010 SADC Media Awards (print category). He freelances for various media outlets, local and foreign, and has travelled extensively across Africa. His work has been published both in French and English. He used to contribute to Bizcommunity.com as a senior news writer.View MyBiz profile and articles...
Dludlu clearly shows he does not have Transnets reputation at heart-
Neither will he recruit the best possible partner for the Transnet brand's future. Very short sighted. He sounds completely closed to understanding why the ACA has these guidelines.

Boycot! They are just as bad as SAA.. Posted on 28 May 2009 09:28
Boycott? Never.-
The day South African advertising agencies stand together and boycott a pitch is the day that job security is written into employment contracts. In the current economic climate, any agency that is not willing to do whatever it takes to bring in new revenue better be willing to put its staff out onto the streets.

So Rob, while your call to boycott may be a noble one, it makes very little economic sense. Was Network on the pitch list? Or is it just another case of people already knowing who the business is going to be awarded too?

Even if a few agencies pull out, more will just jump for the chance to take what's on offer. Posted on 28 May 2009 11:20
rob
re: boycott-
yes, net#work were on the pitch list. so far seven agencies have withdrawn. Posted on 28 May 2009 17:18
Andy Dippenaar
In a word: exploitation-
The ACA's pitch "guidelines" are intended to protect professional agencies from abuse by marketers who use the pitch process as a "fishing" exercise to simply see what ideas, strategies, resources and options are available. Not adhering to the guidelines is exploitative and it most certainly does happen, and will continue to happen unless the communication industry pulls itself together and stands as a united, ethical and professional body. We're all aware of the difficulties of the current economic climate, but that doesn't mean we should disintegrate into an unprincipiled, money grabbing gaggle of prostitutes. Transnet's flagrant and (in my opinion, rather arrogant) disregard for the code of conduct for our profession does not bode well for any relationship or partnership that might result from this process. Posted on 28 May 2009 13:08
Sarah
Medes and Persians??-
The 'medes and persians' line stopped me in my tracks. For others who don't know what this means you can go here: http://www.infoplease.com/dictionary/brewers/laws-medes-persians.html Posted on 28 May 2009 13:43
Notbee
Thanks Sarah!-
Thanks Sarah, glad to know I'm not the only one who thought it was a Restaurant in a remote island ;-)
Back to the subject: Yip, seems the arty farty industry can't hug and kiss after all... Posted on 3 Jun 2009 21:47
The reaper
Clueless-
So you have a company that doesn't have an idea on how to market itself. It then goes to as many ad agencies as possible. They pitch. The client writes down all the ideas. The client looks good with his superiors. He then gets his mates, contacts or perhaps a consortium to implement these ideas. They do them badly. The company loses. The client quietly moves on. The process begins again. For further examples look at SABC and SAA. When this level of incompetence becomes normal then I say the only chance of surviving is to stand together. The alternative is quite frankly horrifying. An industry where talent no longer matters. Posted on 28 May 2009 15:55
To The Reaper-
Ha Ha, well said. We all know how it goes. Posted on 28 May 2009 16:30
The weeper-
sound like the reaper has not won any pitches lately. Posted on 29 May 2009 08:05
You know who.
To the weeper-
It's comments like that that prove how the mindset of this industry stops any progress. Look at that stop crime idea that the industry tried to get off the ground. What happened to it? It died. Why, because as an industry we are incapable of doing anything together. Think how stupid we all look after all the P.R. and promises. Unfortunately advertising agencies live by the axiom, it's not enough I succeed, others must fail. We are all shortsighted and one day it will come back to haunt us. Posted on 29 May 2009 09:36
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