Raytheon Initiates Search

Incumbent Ingalls Retains Recruitment, Interactive
BOSTON–Defense and aerospace contractor Raytheon Co. has begun “a very broad review” designed to help the company more efficiently manage its advertising and marketing relationships, said client official Barry French.
Pile and Co., a Boston-based management consulting firm, has been hired to oversee the evaluation process.
Ingalls Advertising in Boston has been Raytheon’s lead agency for the past four years and crafted its current brand positioning line, “Expect great things,” which is used across corporate and product campaigns.
“We anticipate maintaining a significant portion of the Raytheon business,” said Ingalls representative David Swaebe. French agreed: “I expect Ingalls will retain some segment.”
Specifically, Ingalls will keep Raytheon’s worldwide recruitment business, estimated at $12-15 million in billings, which it shares with Bernard Hodes Advertising in New York, French said. The Lexington, Mass.-based company’s interactive duties will also stay with Ingalls, he said.
Overall ad spending was not disclosed. Raytheon spent about $6.5 million on ads last year, per Competitive Media Reporting. However, total Raytheon billings at Ingalls, which are believed to include recruitment advertising and other projects not tracked by CMR, exceed $20 million, sources said.
Specific assignments now being evaluated are Raytheon’s corporate ad account and separate business divisions such as defense, business aircraft and consumer electronics, French said. Other agencies may be evaluated for one or all of those assignments as the review proceeds over the next three months. It is also possible that Ingalls will be invited to defend those portions.
The review was started because Raytheon has more than doubled in size over the past four years through its acquisitions of General Motors’ Hughes Electronics and Texas Instruments’ defense systems group, said French. The company ranks third in the aerospace and defense industries behind Boeing and Lockheed Martin. –with Judy Warner