AMSTERDAM-N.V. Philips is said to be considering consolidating more than $300 million in consumer electronics and domestic appliance media buying and planning. Last week, Philips said it would align its corporate and consumer electronics creative business with Euro RSCG, Paris, and its household and personal care appliance business with D'Arcy Masius Benton & Bowles. Philips also this week awarded a new $100 million global media account to Euro RSCG's independent Mediastar, London, previously handled on a by-country basis.
OAK BROOK, Ill.-McDonald's Corp. said it will close its Hearth Express restaurant in suburban Chicago sometime this summer. The single-unit test serving homestyle, takeout food since September is "not a viable and significant long-term growth opportunity," the company said. While McDonald's never labeled Hearth Express anything more than a test, industry observers interpreted McDonald's involvement in homestyle cooking as an endorsement for the segment, and many other fast-food marketers rushed to open their own test units. Separately, McDonald's and medical supplier Medline Industries, Mundelein, are joining forces to introduce a line of pediatric hospital gowns and other items adorned with Ronald McDonald and McDonaldland characters, Crain's Chicago Business reported.
REDMOND, Wash.-Microsoft Corp. will broaden development of international markets with the promotion of Orlando Ayala to the new post of VP-intercontinental sales region from regional director-Microsoft Latin America. Mauricio Santillan, director of Latin American business development, will succeed Mr. Ayala.
DALLAS-Marketers already present in Vietnam, such as Citibank, Coca-Cola Co., Pepsi-Cola Co., Eastman Kodak Co. and Caterpillar, should find it easier to do business there if the Clinton administration announces this week plans to re-establish full diplomatic relations with its former enemy. David M. Goldstein, president of Channel Marketing Corp., said companies are "still optimistic about the opportunities" in Vietnam.
LOS ANGELES- BBDO Worldwide has completed the reassembly of its team on Apple Computer by hiring Tom Hanft, 48, as senior VP-worldwide account director on the account. Mr. Hanft in March left Goldberg Moser O'Neill, San Francisco, where he was senior VP and co-director of account management. BBDO officials, meanwhile, say all issues have been resolved on a contract with Apple that would expand the agency's responsibilities for worldwide marketing, with new emphasis on Asia.
NEW YORK-Bozell is jumping to the other side of the advertising fence, selling ad space for CompuServe Internet Division's $1 million Internet Hunt that starts July 14. Participating advertisers include American Airlines, 800-Flowers and MCA Music. The scavenger hunt, running through Oct. 27, revolves around online clues sponsored by marketers (AA, June 12). Bozell sister unit Poppe.com "is in that business [of selling ad space], and so we are considering it," said Judy Black, Bozell senior partner-interactive media development. Interestingly, CompuServe recently eliminated Bozell from its advertising account review.
MINNEAPOLIS-Breathe Right nasal strips will preview its aggressive 1995-96 sports marketing effort this week at the National Sporting Goods Association World Sports Expo in Chicago. The multimillion-dollar program from marketer CNS includes sponsorships of the National Football League, National Hockey League and San Francisco Marathon, endorsements from several pro athletes, and a print campaign in September from Sietsema Engel & Partners. The campaign, which will run in Sports Illustrated, USA Today, Runner's World and other magazines, will position Breathe Right nasal strips as "Essential Gear" for athletes.
CAMDEN, N.J.-Campbell Soup Co. will bring six varieties of Italian pasta sauce into the U.S. this month through an alliance with Barilla Co. of Parma, Italy. Campbell will coordinate distribution to U.S. consumers and Barilla will provide the products, which include sauce varieties such as Green & Black Olive, Sweet Pepper & Garlic, Tomato & Basil, Mushroom & Garlic, Marinara and Spicy Pepper. Margeotes/Fertitta & Partners, New York, is the agency for the Barilla products in the U.S.
DETROIT-Cadillac signed a three-year licensing agreement with Integrated Sports International, East Rutherford, N.J., aimed at enhancing worldwide name recognition, Automotive News reports. The deal means consumers around the world may see the Cadillac name on such items as watches, clothing or collectibles. Cadillac's licensing activities were formerly handled by D'Arcy Masius Benton & Bowles, Bloomfield Hills.
NEW YORK-Despite slim ad page gains last month for consumer magazines, the Publishers Information Bureau said the first half ad revenue and ad pages were the best in 11 years. For June, ad pages were up only 1.1% to 16,414.8 compared to a year earlier. For the entire first half, ad pages were up 6.7% to 101,287 while revenue was up 13.3% to $4.8 billion. For the first half, all top 10 ad categories showed revenue gains, paced by the 29.7% gain by food to $319.4 million and the 23% revenue gain by business and consumer products to $361.1 million. Top category automotive was up 18.8% in revenue to $727.9 million.
NEW YORK-In its longest sustaining growth phase in 20 years, national spot radio ad revenues have increased for 34 continuous months. The growth adds up to $1.35 billion for the year ended April 30, 1995, up 26.2% from $1.07 billion from the year ended June 30, 1992, in new data released from Competitive Media Reporting. The April '95 numbers represent a 16.5% increase from the same period a year ago.
KARLSRUHE, Germany-The Federal Court of Justice here banned several in-house-created ads from Benetton's controversial print/outdoor campaign last week. The appeals court upheld an earlier lower court ruling that such advertising violates competition laws because it uses images of human and animal suffering for financial gain. In February a Paris court ordered Benetton to pay $28,500 to HIV positive French plaintiffs after Benetton ran a campaign with body parts stamped "HIV positive."
BURBANK, Calif.-Warner Bros. Consumer Products has hired Charles Decker to fill the newly created post of VP-worldwide marketing, responsible for leadership of marketing, promotions, creative services and quality control. He will report to George Jones, president of worldwide licensing. Mr. Decker had been executive director of the National Milk Promotion Board.
NEW YORK-American Business Press announced creation of a New Media Award to be given annually to an outstanding example of new media use in business publishing. The first award will be given at ABP's annual Neal Awards Luncheon in 1996 and will be administered by both ABP and the Neal Awards committee. Information on deadlines, candidacy and requirements to apply for the award will be available in the fall. ABP currently represents 140 companies and over 800 publications.
SmithKline Beecham Consumer Healthcare, Pittsburgh, to Grey Advertising and Ogilvy & Mather, both New York, from BBDO Worldwide in a reorganization of the company's $450 million account.
3M, St. Paul, Minn., to Grey Advertising, New York, from Campbell Mithun Esty and Martin/Williams, both Minneapolis, and the Gotham Group, New York, in a consolidation of most of its $40 million in corporate and consumer advertising.
Cadbury Beverages North America, Stamford, Conn., to Young & Rubicam, New York, from Leo Burnett USA, Chicago, for the $27 million 7UP account.3DO Co., Redwood City, Calif., to Margeotes/Fertitta & Partners, New York, from Butler, Shine & Stern, San Francisco, for its estimated $20 million videogame account.Campbell Soup Co., Camden, N.J., to Saatchi & Saatchi Advertising, New York, from Ogilvy & Mather to handle the $10 million Pepperidge Farm brand in the U.S. and Canada. Lexmark International, Greenwich, Conn., to Grey Advertising, New York, from Ammirati & Puris/Lintas for its $8 million to $10 million corporate and computer products account. Seiko Communications, Richardson, Texas, to GSD&M, Austin, for the new $7 million to $10 million MessageWatch account for the alliance between Seiko Worldwide and Fossil.
QMS, Mobile, Ala., to Greenstone Roberts, Coconut Creek, Fla., for an $8 million global assignment for the computer printer marketer.
Popeyes Chicken & Biscuits, Atlanta, to Glennon Cos., St. Louis, from Fitzgerald & Co., Atlanta, for its $7 million account.
Kemper Securities, Chicago, to Tatham Euro RSCG from Jack Levy & Associates for its national account as the company prepares to change its name to Capmarc Securities. Chase Manhattan Bank, New York, to Wells Rich Greene BDDP for a new Chase Corporate Brand account. Also, Graf Bertel Buczek gets Chase's Global Financial Services print campaign, formerly with WRG on an ad-by-ad basis.
Infomercial media billings grew by 55.5% in the first quarter of this year vs. the same period in 1994, according to research results in Response TV's first-quarter 1995 media index. Total billings for the first quarter were $241.1 million, and the top three categories for infomercial growth were health and fitness ($55.7 million), beauty ($38.4 million) and personal development ($33.2 million).Steven Reddicliffe to editor in chief, TV Guide, New York, from the same title at Parenting. He succeeds Anthea Disney, 48, who left to become editor in chief of News Corp.'s Delphi Internet Services Corp. Also: Barry Golson, 50, to editor in chief-magazine development and new media for News America Publishing, from executive editor, TV Guide.
Tony Jonas to president, Warner Bros. Television, Burbank, Calif., from exec VP-creative affairs. He succeeds Leslie Moonves, who left recently to become president of CBS Entertainment.
Roger Ailes has signed a new contract with NBC. The deal includes the formation of a worldwide CNBC Coordinating Council reporting to Mr. Ailes, president of NBC's CNBC and America's Talking cable networks.
Chilton Research Services' study for the Cabletelevision Advertising Bureau found most TV viewers-including younger ones-chose ad-supported cable over broadcast networks when asked to cite a single source for the best programming in four key categories: sports, kids shows, news/information and movies.
Josh Grotstein to VP-general manager of NBC's online ventures, a new post at NBC, New York, from VP-business and strategic development, CNBC and America's Talking.Mark Handler to president at the newly created Disney TeleVentures, Burbank, Calif., from VP-sales and marketing, Disney Channel.Eastman Kodak Co. will sponsor a syndicated series of 26 half-hour segments beginning in September called "Kodak Presents the Road to U.S. Olympic Gold." Jefferson-Pilot Sports & Entertainment, Charlotte, N.C., will produce, market and syndicate the series, which will have other commercial slots.
Sports Illustrated Television has sold out all the advertising availabilities in its July 17, 1996, prime-time Summer Olympics special on NBC. It was sold in conjunction with a multimedia package. Advertisers weren't disclosed, but the list is assumed to include such Olympic heavy hitters as Coca-Cola Co.
Toyota Motor Sales USA today will introduce a CompuServe site featuring information and "animation-type drawings" of its newest models. And a Toyota "Press Room" will feature updated news clippings about Toyotas.
Mark Roby to marketing director, Quad-City Times, Davenport, Iowa, from VP-marketing and chief information officer at Lee Enterprises, parent of the Times.
Senior Golfer, Boston, was acquired by Weider Publications from investment banker Patricoff & Co. Ventures. The rate base is 150,000, and plans call for it to publish nine issues in 1996, up from the current six times a year frequency. Cable Health Club, a 24-hour health and fitness network, launched July 1 in Mexico as a part of the Family Channel de las Americas. The launch is the first step in the international expansion of the network, produced by Cable Health TV, a subsidiary of International Family Entertainment, and in association with Body by Jake Enterprises.
COMINGS & GOINGS
Ralph Cooper to president, Coca-Cola Foods, Houston, from chief operating officer. He succeeds Timothy Haas, now an exec VP of Coca-Cola Co.'s Latin America Group.
Mauricio "Maury" Pagis to managing director-the Americas, a new post at A.C. Nielsen Co., Schaumburg, Ill., from president, PepsiCo Food Service Partnership, Chicago.
James M. Curran to exec VP-information and product systems, Visa International, San Francisco, from director of distribution channel management, IBM Corp.'s software solutions division.Mark Buttitta to partner, Media First International, New York, from exec VP-media director, Wells Rich Greene BDDP.
Patricia Faley to VP-consumer affairs, Direct Marketing Association, New York, from VP-consumer affairs, American Express Co.Kathryn Lazar Sinnes to president of Rainbow Advertising Sales Corp., a division of Rainbow Programming Holdings, Woodbury, N.Y., from head of Sales Productivity Group.Bart Young to president, Western States Advertising Agencies Association, succeeding Bob Kresser, chairman-CEO, Kresser Stein Robaire, Santa Monica. Mr. Young is CEO of Fraser/Young, Los Angeles.
FOR THE RECORD
Triarc Cos., New York, will acquire Mistic Beverages from Joseph Victori Wines, New Rochelle, N.Y., for $95 million. Michael P. Weinstein, ex-president and CEO of A&W Brands, will become CEO of Mistic, and current Mistic Chief Financial Officer Ernest Cavallo will add the title of president. Company founder Joe Umback has held both posts.Kmart Corp.'s sales rose 6.5% for June, with sales for the five weeks ended June 28 at $3.33 billion. Sales from operations consolidated for the 22 weeks ended June 28 were up 7% to $13.37 billion vs. the year-ago period. Hertz Corp. has launched a replacement-car rental subsidiary for drivers who temporarily need a vehicle because of repairs or other reasons. With locations in the suburbs of major metro areas like Boston and Los Angeles, the Hertz Insurance Replacement Entity (HIRE) is an effort to penetrate "local" rental markets and tap the insurance replacement industry.H.J. Heinz Co. is introducing Hot Ketchup, a ketchup combined with Tabasco peppersauce, in Atlanta; Memphis, Tenn.; and Little Rock, Ark., after a test last year.MCI Communications Corp. has published "Apocalypse of the Heart," a book inspired by its "Gramercy Press" network TV campaign that broke last fall touting its networkMCI Business software products. Written by romance novelist Barbara Cartland and published in conjunction with Random House, the book plays a central role in the fictional publishing house featured in the MCI campaign from Messner Vetere Berger McNamee Schmetterer/Euro RSCG, New York.Sprint Telecommunications launched Spree, its new prepaid long-distance calling card. At the retail level, it will be marketed to young adults, college students and low-income adults as well as servicemen and women through a multimillion-dollar print, radio, TV and outdoor ad campaign starting this month from J. Walter Thompson USA, San Francisco. Knight-Ridder Chairman James K. Bratten, 59, died June 24 from brain cancer. He started as a reporter at Knight-Ridder in 1957 and 32 years later became chairman. "At his core, he was a journalist, one who believed passionately in the good that can come from a strong, free and prosperous press," said Knight-Ridder President-CEO P. Anthony Ridder.
Sizzler International this summer is testing a cuisine and decor makeover called Sizzler American Grill at 11 outlets in Sacramento and Modesto, Calif. Sizzler awarded the account for the makeover to Foote, Cone & Belding, Los Angeles. The concept includes new items such as smoked barbecue ribs and chicken.
Time Warner said it completed the sale of 51% of its Six Flags amusement parks to an investment group headed by Boston Ventures. Under terms of the deal, Time Warner will receive about $850 million in cash.