Raytheon Casts Wide Net In Search

Defense Contractor Contacts Scores Of Shops In $15 Mil. Review
BOSTON–Raytheon Co. will contact at least 50 shops across the country regarding ad duties on its corporate account and individual business units, said client official Barry French.
Skip Pile, president of Pile and Co., the Boston consulting firm overseeing the search, declined to identify the agencies that have been approached. “The list is developing daily,” said Pile, who is hoping to select six semifinalists within the next week or two. A decision is set for January.
Among the shops contacted, according to sources, were Gearon Hoffman, Holland Mark Martin Edmund and Hill, Holliday, Connors, Cosmopulos, all Boston; Mullen, Wenham, Mass.; Allen & Gerritsen, Watertown, Mass.; Harpell/Martins & Co., Maynard, Mass.; Arnold Communications, McLean, Va.; GSD&M, Austin, Texas; The Richards Group, Dallas; and D’Arcy Masius Benton & Bowles, Los Angeles.
The large number of agencies being contacted can be attributed to the diversity of Raytheon’s business units, the number of client decision makers looking to have a hand in the selection process and the fact that Raytheon’s facilities are spread out across the country, sources said.
In addition, the Lexington, Mass.-based client is having a difficult time finding shops with the right mix of defense, government and high-technology expertise, sources said. “We have some pretty tough criteria, so we’re going to take a wide-ranging look,” French said.
Up for grabs are creative and media chores for Raytheon’s corporate account and its product divisions, which include defense, business aircraft and consumer electronics. The client is hoping to select a single shop but will consider splitting the account.
Incumbent Ingalls Advertising in Boston, retains Raytheon’s interactive and worldwide recruitment business. It shares the latter with Bernard Hodes in New York. Ingalls is not formally participating in the current competition, but French would not rule out re-assigning some of that work to Ingalls if the client sees fit.
The budget for the Raytheon work now in play is $15 million, French said. Raytheon spent $6.5 million on ads last year, according to Competitive Media Reporting, but that figure does not include significant spending in trade and specialty publications.
Raytheon ranks third in the aerospace and defense marketplace behind Boeing and Lockheed Martin.
–with staff reports