PMP snatches Coles Myer catalogue distribution from Salmat

The current contract for the production and distribution of Coles Myer advertising catalogues is scheduled to run out on August 1, with Salmat expecting the work to progressively make the transition between July 2006 and April 2007.

Brian Evans, CEO of PMP, confirms his company will be responsible for production and distribution once the current contract expires. Evans claims Coles Myer was inspired to make the switch due to the quality of the new letterbox delivery and tracking system PMP is currently implementing.

“PMP has been working with Coles Myer for quite some time in terms of trialling the new model,” says Evans. “We have thoroughly tested our new collation techniques and GPS tracking system for letterbox delivery and Coles Myer was suitably impressed with the improvements in service.”

Evans claims Coles Myer was encouraged to shift its catalogue production and distribution to PMP solely by the improvements in delivery, and insists his company did not offer any discounts in order to win the contract.

Sarah Ward, corporate affairs manager for Coles Myer, says the decision to switch to PMP was made to improve the delivery of its catalogues.

“We made the decision based on the product that PMP offers, the quality of which has encouraged us to take our business there,” says Ward. “We really believe that PMP will be able to improve our rate of delivery.”

While the Coles Myer contract accounts for 6.7 per cent of Salmat revenues, the company insists it will have little impact on revenue for the 2007 financial year due to recent catalogue contracts and other new business prospects.

Philip Salter, joint managing director for Salmat, claims the company is not expected to suffer in the long term from the loss of the Coles Myer contract.

“Whilst we are always disappointed to lose a customer, particularly one who has been with us for so many years, our new wins will provide us with a deeper and more diverse customer base,” says Salter.

“The industry outlook for our Targeted Media distribution business is increasingly competitive and we may come under pricing pressure.”