NEW YORK OgilvyOne has landed consolidated direct marketing and customer relationship management duties for Sears Holdings after a review, the WPP Group agency said.
OgilvyOne bested a handful of other contenders, including Interpublic Group units DraftFCB and MRM, to land the account, which encompasses both Sears and Kmart, said sources. Account revenue was not disclosed but sources estimated it at $3 million to $5 million. A Sears representative declined to comment on revenue and contenders.
The assignment comes amid declining sales at both Sears and Kmart and as Sears Holdings chairman Eddie Lampert reportedly mulls a breakup of Sears. Retail analysts have also called for the elimination of the Kmart brand.
The CRM account is new. Previously, direct and e-mail marketing were split among several undisclosed shops.
OgilvyOne sister shop Ogilvy & Mather for years had shared ad duties on Sears with WPP’s Young & Rubicam. But that account was consolidated at Y&R in 2005. Kmart’s lead agency is DraftFCB.
“We are very focused on providing our customers with great brand experiences and our CRM initiatives in partnership with Ogilvy will take targeted marketing to a new level,” said Lou Ramery, client svp, relationship marketing.
Ramery added that he was impressed by OgilyOne’s capabilities in “actionable customer segmentation, offer development, data analytics and creative design along with their approach for bringing innovative customer programs to market.”
Sears Holdings spent roughly $570 million in major measured media during the first 11 months of 2007, including $420 million on Sears and almost $135 million on Kmart, according to Nielsen Monitor-Plus. The total ad spend for 2006 was $740 million, including $525 million on Sears and nearly $200 million on Kmart, per Nielsen.
OgilvyOne’s New York and Chicago offices will both work on the business. The agency is expected to name an account chief next week.