Essay 1454

Well, this story from AdAge.com helps explain the decision by Grupo Gallegos to drop out of the Wal-Mart multicultural pitch (see Essay 1439)…

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Target Taps Grupo Gallegos For Interactive Project

After Pulling Out of Wal-Mart Review, Agency Draws Assignment From Competitor

By Laurel Wentz

NEW YORK (AdAge.com) -- Grupo Gallegos, the independent U.S. Hispanic agency that pulled out of Wal-Mart’s multicultural review last week, has been hired by competitor Target. The agency, based in Long Beach, Calif., was appointed on a project basis, starting with an interactive assignment for Target.com.

Target has worked with other Hispanic agencies, mainly New York-based independent Ole, but this will be Target’s first Hispanic interactive project. The work will include strategic planning, positioning, creative development and implementation.

Target is believed to have spoken to a number of Hispanic agencies about the assignment, including Grupo Gallegos during the Wal-Mart review.

Outstanding creative work
The five-year-old Hispanic shop, known for its outstanding creative work for Energizer, the California Milk Processor Board and Comcast, recently started an interactive department. The fast-growing agency will bill about $85 million this year, up 27% from 2005.

Without Grupo Gallegos, the Hispanic portion of Wal-Mart’s multicultural review has narrowed to incumbent Lopez Negrete Communications, Houston; LatinWorks, Austin, Texas; and Interpublic Group of Cos.-backed Accentmarketing, Miami.

Multicultural agencies have been told they, unlike the general market agencies, will not have to re-pitch and a decision will be made before the holidays. But the current decision makers in the Wal-Mart review were not deeply involved in the multicultural pitches, raising doubts about whether they’ll be able to make a decision without making the three remaining agencies re-pitch, unless the retailer simply decides to stay with incumbent Lopez Negrete.