HEARST MAGAZINES' KELLY TAKES SUDDEN LEAVE; DIGITAL STARTS $30M REVIEW; CLINTON SAYS NO, AND YES, TO CALIFORNIA; BUZZ OVER IKEA AD GOES ONLINE;TVKO SPENDS $11M ON HOLYFIELD-MOORE BOUT; HIGH SCHOOL CHAMPIONSHIPS LURE MORE SPONSORS; JANKOWSKI MOVES ON; EU CONSIDERS TIGHTER FILM RESTRICTIONS; BEERS SAYS SHE'S STAYING PUT; BURGER KING'S IN-THE-AIR WHOPPER; MILLER NARROWS LITE ICE REVIEW; WHEN IS PEANUT BUTTER NOT PEANUT BUTTER?; DOCKERS SWINGS INTO GOLF APPAREL;HOGAN GETS CLOSE TO NAMING AGENCY; KEDS' $20M ACCOUNT GOES TO KIRSHENBAUM; ORANGE JUICE SALES DRIP; SOFTWARE ADVERTISING READY FOR COURT FIGHT; BUENA VISTA NARROWS $60M REVIEW TO SIX; ARM & HAMMER'S PEROXIDE TOOTHPASTE ENTRY; ACCOUNT ACTION; FOR THE RECORD; GLOBAL NEWS

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NEW YORK-Joseph T. Kelly has taken a leave of absence from Hearst Magazines amid rumors of an impending shake-up. Mr. Kelly, managing director of corporate marketing and sales, joined Hearst 18 months ago from president of the former Kelly/Shattles & Co., a Dallas-based publishers representative company. There's internal industry speculation he won't return; a company spokeswoman said only that "Joe Kelly is in Texas handling personal business." Mr. Kelly couldn't be reached for comment. His leave comes amid rumblings about a possible reorganization, including creation of four group publishers. The company dismissed the speculation as "unconfirmed rumors." Separately, Harper's Bazaar Executive Editor Betsy Carter is joining the magazine development wing of parent Hearst Magazines as a consultant, effective immediately.

MAYNARD, Mass.-Digital Equipment Corp. is starting a review for its estimated $30 million global account. The nation's No. 3 computer company will approach "20 agencies or so" in the U.S. and abroad. Digital's roster of existing major corporate agencies includes Arnold Fortuna Lawner & Cabot, Boston; Ciociola & Co., New York; Holland Mark Martin, Burlington, Mass.; Ketchum Advertising, Pittsburgh; Mullen, Wenham, Mass.; and the lead international agency, Publicis Etoiles, Paris. The review doesn't include the $25 million to $30 million personal computer account, awarded last year to Young & Rubicam, New York.

WASHINGTON-President Clinton effectively denied California's request for an emergency grant to fund a $10 million campaign to promote tourism following the Jan. 17 earthquake. He did approve $3 million in contingency funds. An eight-week TV campaign, overseen by the Los Angeles Convention & Visitors Bureau and created by Davis, Ball & Colombatto, Los Angeles, begins May 23 in 10 western markets, followed by a print effort.

NEW YORK-Ikea's attention-getting TV spot featuring two gays is still generating heavy responses from viewers, including thousands of subscribers to computer bulletin boards and online services. The spot, created by Deutsch, broke March 30 in East Coast spot TV markets.

NEW YORK-Home Box Office unit TVKO will spend $11 million in the next two weeks to promote the pay-per-view telecast of the Evander Holyfield-Michael Moore heavyweight boxing championship April 22. Anheuser-Busch and agency D'Arcy Masius Benton & Bowles, St. Louis, created two Budweiser spots promoting the fight that will appear in other programming; Casio will sponsor a two-day telethon to sell the PPV package; and Domino's and Coca-Cola Co. will team up for an April 17 free standing insert.

ATLANTA-Asics, Coca-Cola, Days Inn and ITT-Hartford Insurance Group are among the latest sponsors signed by the National High School Coaches Association for its first "national championships" for high school sports.

NEW YORK-Gene Jankowski has moved to managing director specializing in electronic media at Veronis, Suhler & Associates from Jankowski Communications Systems. He previously was president and chairman of the CBS Broadcast Group.

BRUSSELS-The European Union said last week it will consider a proposal tightening restrictions on the use of non-European films and TV programs because of concerns that American movies could put the European film industry out of business. A range of proposals will be discussed next week by EU audio-visual and culture ministers (see related story on Page 22).

NEW YORK- Saatchi & Saatchi Co. Chairman Maurice Saatchi wants Charlotte Beers for the company's recently created new-business post, but Ms. Beers said last week she remains committed to Ogilvy & Mather Worldwide, where she's chairman-ceo. And on the hot seat. "I am not considering any offer from Saatchi," Ms. Beers said. Agency insiders, however, said she has been frustrated at O&M in a job that is "more difficult than she originally anticipated."

MIAMI-Burger King is marking the introduction of its new Whopper Jr. and Double Whopper sandwiches with a cross-country hot air balloon tour. The 64-foot Whopper-shaped balloon set off last week for a 41-city tour.

MILWAUKEE-Miller Brewing is expected to conclude its Miller Lite Ice review early next week. J. Walter Thompson USA and current Lite Ice agency Leo Burnett USA, both Chicago, remain in the running for the potential $15 million to $20 million account.

WASHINGTON-The Food & Drug Administration has decided reduced-fat peanut butters can't call themselves peanut butter. Marketers of Best Foods' Skippy Reduced Fat and ConAgra unit Hunt-Wesson's Peter Pan Smart Choice (AA, March 7) have three options: rename the products "peanut spreads," change their formulas or convince the FDA there should be a new standard.

SAN FRANCISCO-Levi Strauss & Co.'s Dockers division is rolling out a line of men's golf apparel. The clothes will be showcased in a $40 million brand imaging campaign for Dockers from Foote, Cone & Belding, breaking April 25.

RICHMOND, Va.-Ben Hogan Co. is expected to name Siddall, Matus & Coughter agency of record. Pogano, Schenk & Kay, Providence, R.I., previously handled. Spending last year was about $2 million.

CAMBRIDGE, Mass.-Keds Corp. appointed Kirshenbaum & Bond, New York, to handle its $20 million account, formerly handled by Leonard Monahan Lubars & Kelly, Providence, R.I.

LAKELAND, Fla.-The Florida Citrus Commission said orange juice volume sales fell 6%, to 58.8 million single-strength-equivalent gallons for the four weeks ended March 19. Still the sales, according to A.C. Nielsen's Scantrack, were the second highest March behind the same period in 1993. The figures coincide with controversy over a $1 million ad buy on Rush Limbaugh's radio show.

LA COSTA, Calif.-Software Advertising Corp. is "ready to go to court" to defend its patent covering technical innovations to allow integration of ads into software programs, said Chairman Noorali Pirami. PC Dynamics, marketer of a screensaver program featuring the Energizer bunny, contends it shouldn't have to pay royalties to Software Advertising.

BURBANK, Calif.-Walt Disney Co.'s Buena Vista Home Video has narrowed the review for the creative portion of its estimated $60 million account, currently unassigned, to six agencies. They are Ground Zero, Venice; Stein Robaire Helm, Los Angeles; Vitro Robertson Stone, San Diego; and Gardner, Geary, Coll & Young, Goldberg Moser O'Neill and Hal Riney & Partners, all San Francisco.

PRINCETON, N.J.-Church & Dwight's Arm & Hammer will introduce a peroxide toothpaste later this year to challenge Unilever's highly successful Mentadent while Colgate-Palmolive is working on one of its own, industry executives said. Partners & Shevack and Young & Rubicam handle, respectively. Separately, Warner-Lambert's Listerine, the leading U.S. mouthwash, is said to be considering a Canadian test of a Listerine Cool Mint toothpaste. Company officials would not comment.

Avia is starting a "closed process" to choose a new agency for its estimated $2 million to $5 million account. Incumbent Citron Haligman Bedecarre, San Francisco, won't participate.

Blockbuster Entertainment Corp. local co-ops to D'Arcy Masius Benton & Bowles, St. Louis, from Lintas, New York; Bernstein-Rein, Kansas City, Mo.; and Leonard Monahan Lubars & Kelly, Providence, R.I., for about $25 million in ad and marketing work for 15 accounts. This is in addition to the $100 million main Blockbuster account D'Arcy won in December.

Luxor Hotel & Casino to GSD&M, Austin, Texas, from Stranger & Associates, Los Angeles, for its estimated $6 million to $10 million account.

WorldPartners Co., a new joint venture of AT&T, KDD of Japan and Singapore Telecom, to McCann-Erickson Worldwide, New York, for its $5 million account. WorldPartners is said to have been set up to provide global communications for multinational corporations.

Grace & Rothschild, New York, has become first agency for three accounts totaling $5 million in billings: Country Life vitamins, Hauppauge, N.Y.; Desert Essence health & beauty products, Chatsworth, Calif.; and Englewood Hospital, Englewood, N.J.

Action Recliners by Lane, a furniture marketer, to the Zimmerman Agency, Tallahassee, Fla., from Bozell, New York, for its $3 million account.

Portland General Electric to Cole & Weber, Portland, Ore., from Borders, Perrin & Norrander for its $1.2 million ad and public relations account.

Zenith Data Systems this week inaugurates a $20 million U.S. and European computer trade and business publication campaign with the theme "Make the connection." The advertising is the first from Hodskins Simone & Searls, Palo Alto, Calif., which succeeded Tatham Euro RSCG, Chicago, in January.

McKee Foods has won a battle for the honor of Little Debbie, the trademark name of its popular snack cakes. Last week, a U.S. District judge in Manhattan issued a temporary restraining order preventing Spencer Gifts, a Pleasantville, N.J.-based novelty chain, from selling Little Doobie T-shirts. The shirts feature Little Debbie's face with a marijuana cigarette hanging from her mouth.

Toyota Motor Sales USA imposed a sweeping reorganization in both its Toyota and Lexus divisions, assigning individual sales and marketing "teams" to specific vehicle lines. Toyota says the new organization will allow it to respond more quickly to changes in the competitive environment.

A 15-member task force recommended clamping down on advertising leading up to the 1996 Olympics in Atlanta. The proposed guidelines would bar most temporary signs and limit the size of building-wall and roof signage. The City Council zoning committee has yet to take action.

Hertz and Texaco have become the first marketing partners for the co-branded credit card from Ford and Citibank. Purchases from the marketers will earn 10% rebates that can also be used toward purchase of Jaguar cars. A direct mail campaign from FCB Direct, New York, and print effort from J. Walter Thompson USA, Chicago, have the theme, "Get the card that gets you the car."

Frank Lorenzo last week appealed to the U.S. Circuit Court of Appeals in Washington, asking the court to approve the start-up of his discount airline despite objections of the U.S. Department of Transportation. The Transportation Department rejected ATX's application to provide low-cost domestic service, in part, because of Mr. Lorenzo's past safety and regulatory compliance problems at other airlines. Mr. Lorenzo, former chairman of Continental Airlines and the defunct Eastern Air Lines, said the federal agency caved in to political pressure from organized labor.

Canon has introduced the Sure Shot Owl and Sure Shot Owl Date 35mm compact cameras with extra large viewfinders. Advertising plans have yet to be determined. Grey Advertising, New York, handles.

Polaroid has begun an estimated $2 million Hispanic campaign for its Captiva instant camera system. Two spots, "Neighbors" and "Bingo," by Sosa, Bromley, Aguilar & Associates, San Antonio, will run on Univision, spot TV and local radio in key markets like Los Angeles, Miami and New York.

Computer Cable Network, Los Angeles, on April 10 began a satellite-delivered weekly 6-hour programming block about personal computers. Included are a home shopping show in cooperation with PC products wholesaler Merisel; a news show; and product tutorials from Microsoft, Apple, Lotus and others .

Universal Studios Floridaplans to build four resort hotels between 1997 and 2000 to be operated by ITT Sheraton, which has reached preliminary agreement to be a 50% owner. The hotels will have 4,000 rooms.

Hosokawa resignation dampens turnaround hopes: The resignation of Japanese Prime Minister Morihiro Hosokawa has dampened hopes for rising out of the country's prolonged ad recession and quashed the first signs of an economic turnaround. The move has also opened up the country for a renewed period of political instability, which might paralyze economic and policy decision-making and hamper trade discussions with the U.S.

Unilever detergent to take P&G head-on: Unilever is introducing a super-concentrated, stain-fighting laundry detergent across Europe to compete with Procter & Gamble's Ariel. The detergent will enter the Netherlands as Omo Power this month, supported by ads from J. Walter Thompson Co. It will expand to the U.K. in May with the name Persil Power, with a $19.4 million effort from JWT's London office.

U.K. ad agency employment declines: From a peak of 15,400 people in 1989, the U.K. ad industry employed an estimated 11,100 last year, down from 12,000 in 1992, according to an annual agency census by the Institute of Practioners in Advertising.

Colgate starts Nouriche in Thailand: Colgate-Palmolive has introduced Nouriche, a super-premium hair care line, in Thailand as the first in a market-by-market global rollout. The Thai debut is supported by a $10 million campaign from Dentsu, Young & Rubicam, Bangkok.

Japan may ease cable laws: Japan's Ministry of Posts & Telecommunications may loosen restrictions to allow the cable TV industry to provide a national network for multimedia services and build Japan's information superhighway. The MPT originally restricted each cable system operator to one district and required local companies to capitalize them.

Sara Lee aligns $23M U.K. media: Sara Lee plans to centralize its $23 million U.K. media buying at the end of April with BBJ, the Media Centre, Zenith Media or the Media Business, all London. Sara Lee's media buying is divided among Zenith, the Media Business, WCRS and AMV BBDO.

Daiei adds private label film: Daiei, Japan's largest supermarket chain, is aiming for a 3% share of Japan's color film market, with private-label film sold under unadvertised store brand Savings. The market is dominated by Fuji Photo Film, Konica and Kodak Japan. Three-roll packs of Savings 100ASA 24-exposure film sell for $4.80; comparable Fuji packs list at $14.20 and can be found discounted for as low as $9.65.

`Elle' enters Czech Republic: became one of the first Western fashion magazines in the former East Bloc with the April introduction of a Czech edition. The 40,000-circulation magazine is published by Komunikace 2000, a four-way joint-venture between Hachette Filipacchi, Svodoba Printing, publisher Martin Shenar and editorial director Antonin Herbeck. Benetton and Estee Lauder are among the 35 advertisers. A color page costs $3,930.

Australia tightens tobacco laws: Australia will implement on Jan. 1 what the government calls the world's strictest health warnings for tobacco packages. Tobacco companies will have to include an explanation of the health effects of tar, nicotine and carbon monoxide and a list of the cigarettes' content.

ACCOUNT ACTION: Wharf Cable's $13 million Hong Kong cable TV account to DDB Needham, Hong Kong. ... Anheuser-Busch's Catalan theme park Tibigardens' $7.5 million Spanish introductory campaign to Bassat Ogilvy & Mather, Barcelona, after a five-way pitch. O&M, Paris, handles theme park Euro Disney.

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