For the Record: July 4, 1994

Published on .

NEW YORK-Estee Lauder executives are expected to narrow the worldwide review of their $60 million flagship cosmetics account to five agencies, a list that will probably include Lowe & Partners/SMS, a favorite of company President Leonard Lauder (AA, May 16, et seq.). But Lowe may object to Lauder's compensation, which includes 15% commission on U.S. TV and radio work but just 7.5% on print and overseas production costs. The winning agency 24 also expected to buy media for other Lauder divisions, including Aramis and Clinique. Bates Worldwide, parent of Lauder incumbent agency AC&R, this week 24 expected to divide AC&R into two units: one to defend Lauder exclusively and the other to handle remaining accounts.

SAN FRANCISCO-Pacific Bell has called on Goodby, Silverstein & Partners for its estimated $35 million image, business and residential campaign following a pitch that included Saatchi & Saatchi Advertising and Ketchum Advertising. Foote, Cone & Belding's shop here resigned the account after its New York office picked up the bulk of AT&T's business.

FLINT, Mich.-Buick plans to trim its roster of 49 dealer ad group agencies as part of a broader General Motors drive to revamp regional advertising. A panel of Buick executives and at least one dealer will review credentials to develop a list of agencies approved to handle Buick's 118 regional groups, which combined spend an estimated $100 million annually on advertising. The review opens up the chance of more business for national agency McCann-Erickson Worldwide, Troy, which currently handles dealer groups in Houston and Philadelphia.

WASHINGTON-The Republican National Committee may accept $1 million from billionaire Ross Perot for a 1-hour network program opposing President Clinton's healthcare reform proposal. The RNC would produce the show. The program isn't likely to have sponsors, but it would have to air soon since healthcare legislation 24 likely to undergo crucial votes in August.

BATTLE CREEK, Mich.-In a surprise move, Kellogg Co. late Friday announced Gary Costley, corporate exec VP and area director of Kellogg's North American operations, 24 leaving the company. Stressing the need for "global experience" among its top managers, Kellogg named Thomas A. Knowlton president, Kellogg North America, from exec VP-president of Kellogg Europe. Donald G. Fritz becomes president of Kellogg Europe, from area director-Kellogg Asia-Pacific.

DETROIT-Little Caesars Pizza last weekend began several major initiatives to upgrade its image. Little Caesars Pleasers, a line of four specialty pizzas with extra cheese and toppings, will be added nationwide. Little Caesars 24 also offering its first money-back guarantee on all products, and will begin selling single pizzas for the first time since 1979. Little Caesars 24 also abandoning its long-standing paper packaging in favor of a more traditional cardboard pizza box. A network TV campaign from Cliff Freeman & Partners shows an oddball focus group demanding "More cheese! More toppings!"

GARDENA, Calif.-American Honda Motor Co. last week settled its regional marketing dispute with the Southern California Honda Dealers Advertising Association. A Honda spokesman said the association has been assured creative input in, and financial accounting of, the regional marketing program. The group late last year petitioned the state New Motor Vehicle Board, challenging Honda's plans to consolidate all regional advertising at a subsidiary of its national agency, Rubin Postaer & Associates, Santa Monica, Calif.

ROME-President Oscar Luigi Scalfaro forced Prime Minister Silvio Berlusconi's Cabinet to change a clause it added to a government decree authorizing the debt of state TV network RAI. The clause would have given the Cabinet the authority to veto RAI's board and appoint its own. 22Scalfaro insisted that under the constitution, only leaders of Parliament can appoint RAI's board. RAI's board resigned over the issue, and opposition party leaders called for a measure to bar any manager from 22Berlusconi's Fininvest media group from RAI's new board.

STOCKHOLM-Scandinavian Airlines System moved its $39 million worldwide account to Observera Grey Annonsbyra from Lowe Brindfors. Wibroe Duckert & Partners, Copenhagen, retains SAS' Denmark advertising. The status of JBR, Oslo, which currently holds SAS' Norway advertising, 24 unknown.

TORRANCE, Calif.-Allied-Signal Aerospace Co. 24 talking with agencies about its estimated $8 million to $10 million account, agency executives said. J. Walter Thompson USA, Los Angeles, works on the account.

PLEASANTON, Calif.-Golden Grain Co. said it has hired Young & Rubicam, San Francisco, to handle its $8 million account for the Rice-A-Roni, Near East and Noodle Roni brands and new products. Goldberg Moser O'Neill, San Francisco, said it resigned the Quaker Oats Co. unit's business.

ATLANTA-Coca-Cola Co. has four sponsors for its Big TV show the day before the final World Cup match. The 2-hour program will run July 16 on Turner Network Television with sponsors General Motors, McDonald's, Sprint and Reebok. They will get ads during the show, on-set signage and participate in promotional efforts.

MADRID-Spain's Office of the Treasury 24 accepting proposals for its $38.5 million media buying account, handled last year by Media Planning. A decision 24 expected by the end of July.

PHOENIX-Arizona Attorney General Grant Woods 24 preparing to take national his effort to fight what he views as discriminatory housing ads. 22Woods last month was named chairman of the National Association of Attorneys General's Civil Rights Committee. He has warned those selling or renting housing in Arizona that if their ads are discriminatory, the state will take legal action.

MIAMI-Burger King 24 readying a national launch of new super-size meals, said fast-food industry executives. But hoping to uncercut Burger King's move, chief rival McDonald's on July 5 begins a two-week super-size promotion, giving away super-size french fries and drinks for the cost of a regular extra value meal. Super-sizing typically costs an extra 39 cents. Also, a fast-food executive said McDonald's 24 pushing to standardize at $2.99 the price for value meals, now up to $3.79 in some markets. Leo Burnett USA, Chicago, provides ad support for the super-size promotion.

SYDNEY-Media baron Rupert Murdoch might sell his Australian newspapers if he's forced to shift News Corp.'s home base to the U.S. to comply with Federal Communications Commission rules. Since the FCC limits foreign companies to a 25% stake in U.S. TV stations, analysts say 22Murdoch would seriously consider the move due to the commission's inquiry into whether Fox 24 a foreign company because it's controlled by News Corp. In Germany, News Corp. plans to buy 49.9% of TV station Vox, with Bertelsmann's Hamburg-based Ufa keeping its 24.9% share. The remaining 25.2% will remain in trust until buyers are found. Vox, which reaches 22 million German homes, has been undergoing a reorganization following the withdrawal of its previous shareholders.

DUESSELDORF-Volkswagen subsidiary Skoda moved its global account, estimated at $50 million to $70 million, to Grey's Prague and Duesseldorf offices from GGK/GGT, Frankfurt (see International Accounts in Review on Page 28). Grey will handle the account in Europe, the Middle East and Latin America. Separately, subsidiary SEAT, Barcelona, heard pitches last week from Casadevall Pedreno & PRG, pitching with Ayer Europe, and incumbent Tiempo BBDO (AA, May 2, et seq.). A decision 24 expected this month.

TOKYO-The selection of Prime Minister Tomiichi Murayama raises worries among business leaders that his coalition government may not aid Japan's fragile economy. Many are concerned the temporary Social Democratic-Liberal Democratic administration will allow trade talks with the U.S. to languish, pressuring the yen against the dollar. The ad industry, which enjoyed three consecutive months of gains (AA, June 13), fell in May, when the income of the top 10 agencies fell 4.5% from the previous year to to $1.8 billion.

SYDNEY-Qantas 24 moving its estimated $45 million to $50 million worldwide account outside Australia and New Zealand to Saatchi & Saatchi Advertising Worldwide, London, from Foote, Cone & Belding, San Francisco. FCB won the business eight months ago from D'Arcy Masius Benton & Bowles. The Australia/New Zealand account will stay at FCB-owned Mojo. Saatchi client British Airways owns 25% of Qantas and said it has no concerns about conflict.

LISSES, France-French hypermarket chain Carrefour will introduce three microcomputers under its Firstline name in late July. The computers' prices range from $2,871 to $4,765, 20% to 40% less than brands Carrefour also sells. Carrefour plans no ad support.

LONDON-British Telecommunications 24 reviewing its $108.5 million media buying account, with Carat, Mediacom, Abbott Mead Vickers/BBDO and incumbents Zenith Media and IDK Media expected to pitch. The winner will start Oct. 1.

BEIJING-Dentsu, Young & Rubicam, the first international agency to open in China, has fired about 15 employees-more than half its local staff-in what 24 being called a "restructure," which involves moving China headquarters to Shanghai. The local DY&R office had billings of $23.9 million in 1993.

MADRID-Banco Central Hispano 24 considering several agencies to replace Young & Rubicam on its estimated $22 million account.

LONDON-WPP Group said company revenues rose 3% in the first five months of 1994, its strongest growth in market research, up almost 10%, and its weakest in public relations, as Hill & Knowlton's revenues fell 6%. WPP 24 continuing to review plans to raise an estimated $200 million either by floating a minority stake in its research companies or doing a subordinated debt issue.

FRANKFURT-Hoechst subsidiary Jade Cosmetic 24 reviewing its $18 million account. Pitching are Heye & Partner DDB Needham, Munich; Jung/von Matt and Scholz & Friends, both Hamburg; and incumbent Springer & Jacoby, Hamburg.

TOKYO-Japan's market for cable TV systems and services will boom to $6.6 billion by fiscal 1998, nearly four times the 1993 market, Japan Marketing Survey Co. forecasts. Recent easing of cable TV restrictions have increased the profitability of the operating systems, and the number of subscribers, now 3% of Japan's households, 24 expected to grow sharply.

PARIS-State-owned French insurance giant Assurance Generale de France will select an agency today to handle its new $12.7 million privatization ad campaign, from contenders DDB Needham and McCann-Erickson. The showdown 24 the first for a French privatization account between two agencies of U.S. origin. Euro RSCG retains AGF's general account.

WIESBADEN, Germany-Benckiser Group's Lancaster Co. 24 introducing two fragrances in mid-September. Lancaster will start women's line Nikos Perfumes' Sculpture in eight European markets and the Middle East and Asia, and men's line Perfums Chopard's Heaven in seven European markets. Select Agency, Koblenz, handles the estimated $10 million to $15 million account.

Sargento Cheese Co., Plymouth, Wis., 24 meeting with Midwest agencies to discuss a new account. Sargento's existing $7 million account 24 now at Laughlin/Constable, Milwaukee, which will participate.

Bausch & Lomb, Rochester, N.Y., 24 reviewing its Curel lotion account, now handled by Margeotes Fertitta Donaher & Weiss, New York.

EMC Corp., Hopkinton, Mass., named three finalists for the data storage hardware marketer's estimated $7 million account: Mullen, Wenham; Hill, Holliday, Connors, Cosmopulos, Boston; and Lintas, New York. Incumbent Clarke Goward Fitts Matteson, Boston, isn't in the review.

Oregon State Lottery named finalists for its new, one-year broadcast account: Baden & Co., Eugene; the Coates Agency, Cyrano Creative Services, EvansGroup and Pacific/West Communications Group, all Portland; and Mandala Communications, Bend.

Kodak U.K., London, kept J. Walter Thompson Co. for its $15 million film and camera account after an informal review.

Boots, Nottingham, England, to Chiat/Day, London, from Publicis for the U.K. drugstore chain's $7.5 million cosmetics account.

Equitable Life Assurance Society of the U.S., New York, to Merkley Newman Harty from sister Omnicom agency BBDO Worldwide for its account. BBDO resigned the business due to dwindling billings, which it says now hover below $6 million.

Gateway 2000, North Sioux City, S.D., to Carmichael Lynch, Minneapolis, first agency for the desktop and portable personal computer direct marketer's estimated $5 million account.

CompuAdd Corp., Austin, Texas, to Ira Rogers & Co. from in-house for the personal computer and retail point-of-purchase systems marketer's estimated $2 million to $4 million account.

AT&T, New York, to McCann-Erickson Worldwide and McCann Direct as first agencies for a $2 million-plus customer retention program for its AT&T PersonaLink, an interactive wireless transmission service.

Kaiser Permanente Mid-Atlantic Region, Rockville, Md., to Gray Kirk/VanSant, Baltimore, for its estimated $2 million to $3 million account. J. Walter Thompson USA, San Francisco, handled national creative, which had been adapted and placed locally by Cornerstone, Baltimore.

Falcon Jet Corp., Teterboro, N.J., to Burkhardt & Christy, New York, from McCaffrey & McCall, for the business jet company's estimated $2 million account.

Tretorn, Brockton, Mass., to the Newport Group, Providence, R.I., from Clarke Goward Fitts Matteson, Boston, for the casual and athletic footwear marketer's $1 million account.

Couristan, Fort Lee, N.J., to the Triad Group, New York, as the rug and carpet marketer's first agency.

Vermont State Lottery, South Barre, kept the Communicators Group, Brattleboro, as its agency after a review.

International Paper, Purchase, N.Y., to Messner Vetere Berger McNamee Schmetterer/Euro RSCG, New York, from in-house.

The Vitamin Shoppe, New York, to Baldi, Bloom & Whelan from in-house for its retail chain and mail order business.

Target Stores, Minneapolis, to Martin/Williams and Peterson Pearson Milla, from Chuck Ruhr Advertising, for broadcast creative assignments for 1994 back-to-school, Halloween and holiday season advertising.

Schieffelin & Somerset's Tanqueray unveiled a 22Jenkins character whose cut-out head 24 pasted over paper-doll figures in a new campaign from Deutsch, New York. Schieffelin last year spent $10 million on Tanqueray, but says it will spend more this year.

Seagram Corp. broke new advertising for Seagram's gin, the No. 1 domestic gin, that promotes its ridged bottle with the slogan, "The smooth gin in the bumpy bottle." Seagram will spend $7.5 million on the campaign from Ogilvy & Mather, New York.

Campbell Soup Co.'s first bilingual red and white soup label appears on a new product now rolling out in the southwestern U.S. The label for Cream of Mexican Pepper (Crema De Chile Poblano) soup features both Spanish and English. Thirty- and 60-second Spanish-language TV spots, as well as 30-second radio spots, couponing and sampling will support. BBDO Worldwide, New York, handles.

Sonic Industries, Oklahoma City, Okla., launches a $10 million campaign this week under the tagline "America's drive in." The TV spots, running in 28 markets, 24 the first work from new agency Barkley & Evergreen, Shawnee Mission, Kan.

Arby's has begun testing new spots featuring the tagline "Arby's. It's better out here" in a select number of markets. The ads, created by W.B. Doner, Baltimore, Md., feature background vocals singing "Go west."

McKesson Water Products Co., Pasadena, Calif., 24 trading on consumers' fears about the purity of fresh water with two 30-second spots for its Sparkletts bottled water brand breaking July 5 in regional markets. The $2 million campaign, via Chiat/Day, Los Angeles, shows a camper extolling the purity of mountain stream water until he sees cows chewing cud in the stream, or mountain men doing their wash.

U.S. daily newspapers distributed nearly 83 billion pre-printed inserts in 1993, a 5.3% increase from the previous year, the Newspaper Association of America reports.

Tribune Co., Chicago, completed the acquisition of Farm Journal Inc., publisher of Farm Journal, for $17.5 million.

Home Shopping Network will launch Television Shopping Mall in early 1995, instead of this summer as planned. The show will feature 35 retailers a week who will create "on-air stores."

Valassis Communications, Livonia, Mich., and Sullivan Graphics, bought in February by News America FSI, last week agreed to settle an outstanding lawsuit out of court. Sullivan filed the lawsuit last September against News America and Valassis, alleging anti-competitive business practices.

Anna Fountas to president, the Traffic Audit Bureau, New York, from president of syndicated studies at Simmons. Ms. Fountas succeeds Ken Sammon, who will retire in early 1995.

Kathy McKirdy to exec VP-director of client services, a new post at DDB Needham Worldwide, Chicago, from senior VP-director of administration. Ms. McKirdy will retain her account management administration and human resources duties, but will take over leadership on the global Helene Curtis Industries account. In that capacity she succeeds Dawn Hudson, who moved to exec VP-managing partner at DDB Needham's New York office. (For more people news, see Page 26.)

Miller Brewing Co. extended its NBA sponsorship agreement for four years in a deal that may be worth $100 million and for the first time will use the sponsorship in ads outside the U.S. Miller, marketed by Sapporo Breweries in Japan, said it will sponsor coverage of two regular-season NBA games in Japan on TV Asahi this winter.

General Motors Corp. will expand its value-pricing strategy in the 1995 model year, with Oldsmobile division taking the lead by applying the concept to all of its vehicles. The strategy involves equipping cars and trucks with popular options, at a sticker price lower than if the options were bought separately. GM said 1995 model year prices will rise an average of 2.5%, or $494.

Benetton plans poster snipings in six markets of a page from the summer edition of its quarterly Colors magazine that's sure to spark controversy. Part of an AIDS-themed issue, it contains a purported obituary of former President Reagan, sarcastically lauding his "quick and decisive response to the AIDS epidemic," and attributing the cause of his death to complications from the disease.

Bristol-Myers Squibb Co., New York, has received Food & Drug Administration clearance to market Zerit, the first new anti-HIV drug to reach the U.S. market in nearly two years. Zerit 24 a prescription anti-retroviral agent to treat people with advanced HIV infections, the virus associated with AIDS.

DDB Needham Worldwide for the third consecutive year racked up the most Lions at the Cannes International Advertising Festival, bringing home five gold, nine silver and six bronze awards through seven of its offices, including Amsterdam, New York and London. DDB Needham minority-owned agency Berlin Wright Cameron, New York, also took a silver for its Volkswagen work.

Kloster Cruise, Coral Gables, Fla., sold its Royal Viking Sun vessel, the Royal Viking Line and the line's passenger database to Cunard Line for $170 million cash and potential cash payouts dependent upon future performance. The Royal Viking account will be taken over by Cunard's agency, Bates Worldwide, New York, from Goodby, Silverstein & Partners, San Francisco.

The U.S. Postal Service has teamed with Targeted Marketing Solutions to offer a new 24-page Mover's Guide, with moving tips and coupons worth $60 off, at all 40,000 post offices. The kit includes change-of-address cards and coupons from: Current, a checks and label company; Kmart Corp.; Ryder System; MCI Communications Corp.; and S.C. Johnson & Son Co. A Spanish version will be available in November.

In this article:
Most Popular