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Published on .

P&G ponders agencies' buying clout

CINCINNATI-Procter & Gamble wrote the major network TV sales departments seeking information about the buying capabilities of P&G agencies. In December 1991, P&G consolidated most of its $700 million in national TV buying at D'Arcy Masius Benton & Bowles, New York. Wells Rich Greene BDDP, New York, got $127 million of that assignment. Network executives said the request is an annual routine and doesn't necessarily signal a potential media review. Separately, P&G put Oil of Olay Moisturizing Body Wash into a Spokane, Wash., test, with TV support from WRG.

Saatchi dispatches Muirhead to U.S.

LONDON-Bill Muirhead, 47, is moving to New York from London this week as ceo of North America and president of Saatchi & Saatchi Advertising Worldwide, succeeding Robert Kennedy, who left last month. Mr. Muirhead, who headed Saatchi's U.K. and European operations, will be replaced as chairman for Europe by Jeremy Sinclair, 47, who is also co-chairman of Saatchi & Saatchi Advertising Worldwide. David Kershaw, 40, managing director of Saatchi & Saatchi Advertising in London, is expected to take over Mr. Muirhead's other role as chairman-ceo of the London agency. Mr. Muirhead is the third high-level executive the Saatchi group has moved recently from London to try to replicate U.K. successes in the group's lackluster U.S. agency networks (see story on Page 4).

President leaves in Ally shake-up

NEW YORK-Ally & Gargano is undergoing a major restructuring. President-Chief Operating Officer Warren Dechter, 53, is leaving the agency, and Chief Creative Officer Mal MacDougall, 64, is relinquishing day-to-day responsibilities to Tony Fisher, 49, executive creative director. Mr. Dechter is joining MCA, Westport, Conn., a part-owner of Ally, as senior partner in the consulting division. His duties at Ally will be assumed by Exec VP Eric von der Lieth and another executive who has not yet been named. Mr. MacDougall will remain active on the agency's retail accounts and in new-business efforts.

Reebok, O'Neal to discuss relationship

STOUGHTON, Mass.-Reebok next month will meet with its top endorser, National Basketball Association star Shaquille O'Neal, to further discuss ways they can work together to correct their troubled relationship (AA, Feb. 21). At that meeting, Reebok will present to Mr. O'Neal the results of a research study on how consumers and young people perceive Mr. O'Neal.

Visa stashes donkey ad

SAN MATEO, Calif.-Visa International pulled a TV commercial following boycott threats from citizens in Todi, Italy, who denounced the spot (AA, Feb. 21). The spot, in which two tourists unwittingly trade their camera for a donkey, aired in the U.S. market, via BBDO Worldwide, New York.

O'Neill takes communications role at Chevy

DETROIT-William O'Neill, who helped orchestrate General Motors' counterattack last year against "Dateline NBC," was named general director of communications for the Chevrolet division as part of a broad realignment of GM's communications staff. Mr. O'Neill, who had been communications director for GM's North American Operations, will have broader authority than Ralph Kramer, Chevrolet director-public relations, who moves to GM director-news and divisional relations.

Temperatures rising on ice beer ads

WASHINGTON-The Bureau of Alcohol, Tobacco & Firearms confirmed it's investigating the possibility brewers or their distributors are illegally using alcohol strength claims in marketing ice beers. Ice beers by all brewers, except Anheuser-Busch, are stronger than regular beers; the strength can be listed on the label, but brewers aren't supposed to use it as an advertising lure. At Miller, introductory advertising that broke last week for Miller Lite Ice will use a scenario straight out of a classic Miller Lite campaign that featured John Madden breaking through a picture poster to continue his pitch. The spot from Leo Burnett USA, Chicago, uses a "Break the rules" theme.

Dworin attracts O&M's interest

NEW YORK-Former Deutsch President Steve Dworin is believed to have met last week with WPP Group Chief Executive Martin Sorrell and Ogilvy & Mather Chairman Charlotte Beers about taking a senior post in O&M's New York office. Mr. Dworin, 40, left Deutsch earlier this month. O&M's office here is now headed by President Shelly Lazarus, who, insiders said, may assume a larger North American post.

For Riney, bad news from Good Guys! chain

BRISBANE, Calif.-The Good Guys! Inc. electronics chain and Hal Riney & Partners, San Francisco, are calling it quits. Riney won the $10 million account 15 months ago and said the parting was "mutual," involving disagreement on creative direction. Good Guys said it will explore "other creative options" and has contacted "one or two agencies" but there is no review at this time.

Buena Vista Home Video seeks agency

BURBANK, Calif.-Disney's Buena Vista Home Video is reviewing the creative portion of its estimated $5 million account with a limited number of West Coast agencies. Buena Vista has handled advertising on a project basis since parting with DDB Needham Worldwide, Chicago, last year.

Mellon bank taps Werner shop

PITTSBURGH-Mellon Bank Corp. consolidated its estimated $8 million account at Werner Chepelsky & Partners, which had handled most of the bank's business. Chiat/Day, New York, loses the Mellon Trust account, formerly American Express Co.'s Boston Co. unit that Mellon acquired last year. AmEx spent $3 million on Boston Co. ad support.

Stoli nears list of finalists

TEANECK, N.J.-Carillon Importers is expected to name finalists for the Stolichnaya vodka account this week as soon as it finishes meeting with nearly 30 agencies. Carillon President Michel Roux said he expects the winning agency for the $6 million to $8 million account will produce an "emergency" campaign to run immediately in newspapers, with the main campaign breaking in May or June. The account was in review before Carillon took over marketing Feb. 1. Calet, Hirsch & Ferrell, New York, previously handled.

New packaging for Diet Coke

ATLANTA-New packaging for Coca-Cola Co.'s Diet Coke will roll out globally this spring in the first design change for the low-calorie cola in more than eight years. The new packaging, created by Fallon McElligott, Minneapolis, is still red and white, but all other elements change.

Hardee's serves up ads a la Deutsch

ROCKY MOUNT, N.C.-Hardee's on Feb. 27 broke its first wave of new advertising from Deutsch Inc., which won the $75 million account in November. TV and radio spots feature three elderly women touring the country in a sedan, lightheartedly commenting on Hardee's food and the people they meet. The series of spots, united under the tag line, "Have a good meal," are the first of roughly 20 new commercials to be produced this year.

Postal board to decide on rate hike

WASHINGTON-The U.S. Postal Service Board of Governors on March 1 will decide whether to seek a 10.3% increase in postal rates for 1995, as recommended by Postmaster General Marvin Runyon. The increase would raise the price of a 29 cent stamp to 32 cents. The nation's business mailers, which were expecting to get socked with rate increases of more than 20%, have backed the 10.3% increase, as long as it is consistent across all mail classes.

Checkers drive-throughs park account at Martin

CLEARWATER, Fla.-Checkers Drive-In Restaurants awarded its $5 million account to the Martin Agency, Richmond, Va. The Morrison Agency, Atlanta, resigned the account last month. Checkers, a 420-unit double-drive-through chain, plans to add 260 restaurants and several new broadcast markets this year, concentrating growth in Texas and the Southwest.

EPB snaps up Ketchum in Philly

PHILADELPHIA-Earle Palmer Brown last week acquired Ketchum Advertising here, creating a $160 million to $170 million agency, EPB's largest office. Lonny Strum remains president of EPB, Philadelphia. Ketchum President Scott Franks becomes exec VP at EPB. No account conflicts exist.

Whittle's MNN to charge for subscriptions

KNOXVILLE, Tenn.-Facing some difficulties with marketer support for its Medical News Network, Whittle Communications plans to go to a source it has never before tapped for its place-based media ventures: subscription fees. The satellite-delivered service will go to viewers free as of its national launch, beginning this fall, but "Eventually, we will go to the doctors and other subscribers for part of our revenue base," said Chairman Chris Whittle. Analysts suggested subscriptions may be a way to convince advertisers of viewer interest in MNN, as much as provide a direct revenue source.


Italia/BDDP wins $45M hosiery account: Italian hosiery group Golden Lady moved its $45 million pan-European account to Italia/BDDP, Bologna, from McCann-Erickson, Milan.

Aussie chain studies review: Myer-Grace Bros. may review its $35 million account as the ailing department store chain undergoes a major management restructuring. Mattingly & Partners, Melbourne, says the business is solid, but such shops as George Patterson Pty. and DDB Needham are known to be eyeing the account.

Y&R, GGT talks fail: Young & Rubicam ended negotiations to buy a stake in Gold Greenlees Trott, London, to merge with its troubled London office. Y&R will instead promote former Senior Account Director Toby Hoare to the vacant managing director post. He has been acting managing director for a month.

Toys `R' Us picks finalists: Toys "R" Us has narrowed its list of finalists to Omon, Sydney, and incumbent J. Walter Thompson Co., New York, for its international corporate account. Omon handled last year's successful $10 million Australian introduction.

Saab drives to Lowe: Saab Automobile awarded its $23 million international account to Lowe Brindfors, Stockholm, to supplement national campaigns from local agencies. Lowe already handles Saab in Sweden, Denmark and Norway. International media planning and buying has been shifted to Universal Media, London, from Zenith Media Worldwide.

Chinese ad industry booms: Ad spending in China doubled in 1993 to $1.5 billion, according to preliminary figures from the State Administration for Industry & Commerce. The increase follows a 93% rise in 1992.

WPP creates post to explore new technology: Eric Salama, joint managing director at WPP Group's Henley Center economic forecasting unit, has been named to the new post of strategic development at WPP, London. He will work with Chief Executive Martin Sorrell to explore WPP's long-term potential and look at issues such as how developments in media and technology are changing clients' needs.

Italian marketers court trial coverage: Advertisers San Pel-legrino and Lavazza are trying to get TV exposure as part of the broadcasting of the trial of the corruption scandal surrounding businessman Sergio Cusani. San Pellegrino seeks an exclusive courtroom product placement contract for its mineral water, and Lavazza wants defense attorney Giuliano Spazzali to endorse its coffee. Armando Testa Group, Turin, handles both accounts.

Quaker offers new cereals in U.K.: Quaker Oats is serving Quaker Feast of Flakes and Quaker Wholegrain Feast ready-to-eat breakfast cereals in the U.K. with a $10.5 million campaign from Bainsfair Sharkey Trott, London.

Swatch, Daimler-Benz team up: German automaker Daimler-Benz and Swiss watchmaker SMH signed an agreement last week to start an unnamed independent joint-venture company to produce and market Swatchmobile, a minicar. No agency has been named.

ACCOUNT ACTION: McDon-ald's Switzerland's $7 million account to Matter Galbucci Leo Burnett, Zurich, from McCann-Erickson. ... Amstrad's $6 million U.K. computer hardware account to Mustoe Merriman Herring Levy, London, from Ardley Phillips Horrell. ... Australia's Powers Brewery is reviewing its $5 million account for the seventh time in five years. Incumbent Kelly Gee Advertising pitches against George Patterson Pty. and De Pasquale Advertising, all Brisbane.


Kraft General Foods moved its estimated $15 million Crystal Light account back to D'Arcy Masius Benton & Bowles, New York, after a brief stint at Ogilvy & Mather.

Cub Foods is reviewing creative and media on its estimated $12.4 million account. Ten Twin Cities agencies were invited to pitch the creative, now at Clarity Coverdale Rueff, Minneapolis. Haworth Group, Minnetonka, Minn., which has handled Cub's media placement since 1989, is participating in the media review.

Okidata narrowed to seven the number of agencies in its estimated $10 million integrated account review. Incumbent Jordan, McGrath, Case & Taylor, New York, is included, plus one Philadelphia agency.

CIC Video International, a London-based video distribution joint venture between Universal and Paramount, to Lowe Group from local agencies for its $12 million pan-European account.

Mobil Chemical Co. to Jordan, McGrath, Case & Taylor, New York, from Fallon McElligott, Minneapolis, for its estimated $8 million Hefty and Baggies account.

Ford Motor Co.'s Ford Division to UniWorld Group, New York, from Burrell Advertising, Chicago, for its estimated $5 million African-American account.

Frank's Nursery & Crafts to W.B. Doner & Co., Southfield, Mich., from Stone, August, Baker in Troy for its estimated $4 million account. Frank's is Doner's sixth new client in three months; it has added about $44 million in billings.

Quick & Reilly, New York, was resigned by Kirshenbaum & Bond after a three-year association between the agency and the discount brokerage.

Municipal Bond Investors Assurance Corp., to TBWA, New York, from Broulliard Communications for its $4 million account.

Lecia Camera to Pedone & Partners, New York, for its $1 million sports optic and photographic accounts. Previously, Triton Advertising handled the sports optic account, and Kalmar Advertising, Fort Lee, N.J., had the photographic portion. Also to Pedone: Drake Bakeries, from Merrit Clatt, New York, for its $5 million Devil Dogs, Ring Dings and Yodels accounts.

Blue Care Network, a subsidiary of Blue Cross & Blue Shield of Michigan, to TraverRohrback, Kalamazoo, from Inwords Inc., Grand Rapids, for its estimated $4 million HMO account.

Suburban Health Plan to Cox Landey & Partners, New York, from Greenfield Advertising, West Haven, Conn., for its $2.5 million account.

, Fort Lauderdale, Fla., to the Zimmerman Agency, Tallahassee, from Jacoby, O'Connor & Matthews, Fort Lauderdale, for its $1.1 million account.

Lionel Trains to Young & Rubicam, Detroit, from Troy, Mich.-based Stone, August, Baker.


Interpublic Group of Cos., New York, reported 1993 net income rose 12% to $125.3 million, before accounting changes. The company, parent to McCann-Erickson Worldwide, Lintas and the Lowe Group, said gross income fell 3.2% to $1.79 billion. Interpublic said gross income, which increased 3.8% in the U.S. and internationally dropped 6.5%, was hurt by the strengthening of the U.S. dollar last year. Net income for the fourth quarter rose 8.6% to $50.6 million. Gross income dropped 4.6% to $509.3 million.

Omnicom Group, New York, increased net income in 1993 by 23% to $85.3 million. Worldwide revenues from commission and fee income rose 9% to $1.5 billion. Domestically, commission and fee income was up 9% to $770.6 million. International increased 10% to $745.9 million. For the fourth quarter, net income climbed 29% to $30.8 million, as worldwide revenues from commission and fee income increased 14% to $456 million. Domestically, commission and fee income was up 10.5% to $214.3 million in the fourth quarter, and international commission and fee income increased 17% to $241.7 million.

Calet, Hirsch & Ferrell principals John Ferrell and Ric Calvillo completed an agency buyback from Ross Roy Communications last week and renamed their shop Ferrell Calvillo Communications.

64, an exec VP at Bozell Worldwide, New York, died Feb. 22 of cancer. He was a founder of Nickelodeon and an authority on kids' TV.

Quaker Oats and General Foods USA's Post division said they have followed the lead of Kellogg and raised cereal prices-Quaker by an average of 2.2% and Post by an average of 3.1%. At a meeting of consumer analysts in Arizona last week, several new food products were unveiled, including a Blueberry Morning cereal from Post; a Cheerios snack mix and Pop Secret chips from General Mills; and a Lemon Ice flavor of Gatorade from Quaker.

American Airlines is offering customers the opportunity to receive frequent flier miles by investing in new Mileage Class funds. The American AAdvantage Municipal Money Market Fund and American AAdvantage U.S. Treasury Money Market Fund are managed by a subsidiary of American parent AMR Corp. Investors will receive one AAdvantage mile annually for every $10 maintained in their Mileage Class accounts.

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