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TIME WARNER, IPG FORGE INTERACTIVE DEAL; MICROSOFT TAPS WIEDEN FOR $40M IMAGE ACCOUNT; BENETTON TURNS TO CHIAT AS FIRST AGENCY; SATURN'S HOMECOMING IS DAMP BUT FESTIVE; KODAK SIGNS SCULLEY AS ADVISER; FOX AFFILIATES LOOK FOR NET'S COMMITMENT; FDA COULD APPROVE AIDS HOME TESTING KITS; KEY MAZDA EXEC KOPALD TO LEAVE FCB; BRISTOL PICKS UP MATRIX FOR $250M; DMB&B MAY MERGE 2 HISPANIC AGENCIES; CARL'S JR. WILL TEST GREEN BURRITO PRODUCTS; MERCEDES LOOKS FOR SPORT-UTILITY SHOP; STOUFFER COOKS UPSCALE LEAN CUISINE LINE; GM EXPECTED TO PROMOTE GUARASCIO; JERGENS PULLS $26M ACCOUNT FROM PUBLICIS/BLOOM; NIKE MOVES AIR JORDAN TO WINTER ROLLOUT; FRANCE AMENDS ALCOHOL AD BAN; REPORT CONDEMNS EU'S TV PROGRAMMING LAWS; STRONG YEN SPARKS FLURRY OF JAPANESE BUSINESS; U.K. BROADSHEETS SLASH COVER PRICES; WAL-MART BEGINS $7.2M CANADIAN CAMPAIGN; AUSTRALIA STARTS $6M TOURISM CAMPAIGN OVERSEAS; AUDI INVITES AGENCIES FOR $16M A4 ACCOUNT PITCH; DENTSU SEEKS MAJORITY OF TRAVIS DALE IN U.K.; SEAT PLANS TO HEAR PITCHES THIS WEEK; KODAK'S $15M ACCOUNT REPORTEDLY IN REVIEW; KMART REVIEWS $6M ACCOUNT DOWN UNDER; ACCOUNT ACTION; MEDIA MOVES; COMINGS & GOINGS; FOR THE RECORD

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NEW YORK-Time Warner Interactive and Interpublic Group of Cos. as early as this week will announce that they've formed an alliance giving Interpublic agencies unprecedented access to the media giant's interactive ventures. Projects range from CD-ROMs and videogames to interactive TV. For Time Warner, the alliance marks a first step toward an effort to incorporate advertising into new-media products. Interpublic, parent to McCann-Erickson Worldwide, Lintas Worldwide and Lowe & Partners/SMS, is trying to get a leg up over other agency groups in the interactive world. Last month, Interpublic announced an investment in multimedia developer InterActive Partners, Los Angeles.

REDMOND, Wash.-Microsoft Corp. picked Wieden & Kennedy, Portland, Ore., over Leo Burnett USA, Chicago, for an estimated $40 million image account designed to turn the No. 1 software seller into a world brand. Microsoft management recommended Wieden to Chairman Bill Gates, and sources said the agency was hired immediately after it made its final presentation June 23. A Microsoft spokeswoman said Wieden "showed the deepest grasp of our business, reflected through compelling creative work," and had an "attitude" and "cultural fit" that meshed with Microsoft.

NEW YORK-Benetton has picked Chiat/Day as its first agency for creative. The agency will create a product-focused fall campaign for the U.S. to run on a limited basis beginning in September, with a possibly broader media buy next year. Chiat also is developing magazine and newspaper ads that highlight apparel, supplementing the social-message ads favored by in-house Creative Director Oliviero Toscani. Media Buying Services International, New York, handles placement.

SPRING HILL, Tenn.-Saturn's homecoming parade got rained on last Friday, when an early-morning thunderstorm dumped 2 inches of rain in 30 minutes and washed out a road. That backed up Saturn owners for 3 miles, but didn't deter the spirit of the first wave of the nearly 30,000 who arrived for the event. Caravans from Florida and 30 car owners from Taiwan, were part of the festivities. Hal Riney & Partners, San Francisco, had a crew recording the event, with plans to use footage in ads.

ROCHESTER-Eastman Kodak Co. has retained John Sculley, as a marketing adviser to develop a more aggressive marketing approach for its digital imaging unit. The former Apple chairman and president-CEO of PepsiCo's Pepsi-Cola Co. unit will work part-time, helping to transfer Kodak's name recognition to digital cameras, Photo CD and color imaging technologies.

LOS ANGELES-The mood was tense at Fox Broadcasting Co.'s affiliates conference here last week as stations sought assurances they won't be unceremoniously dropped in the wake of Fox's recent deal with New World Communications, Electronic Media reports. Stations are pressing Fox to double the length of affiliate agreements to 10 years and have asked the network to provide notice up to 6 months before cancellation.

GAITHERSBURG, Md.-Home testing kits for the AIDS virus may soon be in the marketplace. A public hearing by the Food & Drug Administration produced little opposition to the kits that would allow consumers to test themselves, then learn of the results via 800-number calls. Johnson & Johnson is among three marketers with pending requests (AA, May 23).The FDA declined to say if or when the kits will be OK'd, but there was overwhelming support at the hearing.

IRVINE, Calif.-Foote, Cone & Belding, Santa Ana, is beginning a search for a successor to Larry Kopald, exec VP-executive creative director, who announced last week he will leave in October. Mr. Kopald, 39, has headed up the $215 million Mazda Motor of America business, the agency's largest worldwide account, for six years. Mr. Kopald said he will be working on several entrepreneurial projects outside the agency business. Jay Amestoy, Mazda VP-marketing and communications, said he regrets Mr. Kopald's departure but that it would "absolutely not" affect the company's relationship with the agency.

NEW YORK-Bristol-Myers Squibb Corp. acquired Matrix Essentials for an estimated $250 million. Solon, Ohio-based Matrix will be an independent unit. The company's salon hair and skincare plus makeup products are expected to complement Bristol-Myers' personal-care products, including Clairol. Matrix's $11 million account is handled in-house.

SAN ANTONIO, Texas-D'Arcy Masius Benton & Bowles is considering merging in 1995 its two U.S. Hispanic agencies-Sosa, Bromley, Aguilar & Associates here and Noble & Asociados, Irvine, Calif.

ANAHEIM, Calif.-An issue that last year sparked an executive fracas at Carl Karcher Enterprises appears to have been resolved. GB Foods Corp., operator of Green Burrito restaurants, announced an agreement with the renamed CKE Restaurants to begin testing Green Burrito products at six Carl's Jr. locations. The test could lead to the two companies combining their brands in other markets. Last year, Karcher's board rejected then-Chairman Carl N. Karcher's proposal to sell Green Burrito products at Carl's Jr. restaurants. The dispute led to Mr. Karcher's ouster from the board; he's now back as chairman emeritus.

VANCE, Ala.-Mercedes-Benz Project has begun meeting with undisclosed agencies to find a "marketing communications partner," said Linda Paulmeno, director-communications for the Mercedes-Benz AG subsidiary that will oversee development and marketing of a sport-utility vehicle that will be built here beginning in 1997.

SOLON, Ohio-Stouffer Foods Corp. next month will introduce Chef Classics, an upscale line of frozen entrees under its Lean Cuisine banner. Retailers who have seen the line say a massive TV, print and promotion campaign will break later this summer; Messner Vetere Berger McNamee Schmetterer/Euro RSCG, New York, handles the Stouffer brands.

DETROIT-General Motors Corp. board of directors today is expected to approve a management overhaul believed to include a promotion to VP for Phil Guarascio, now general manager-marketing and advertising for GM's North American Operations. He turned down an offer to run Turner Broadcasting Sales (AA, March 21) amid speculation he would be promoted at GM.

NEW YORK-Andrew Jergens Co. pulled its $26 million account from Publicis/Bloom due to future conflicts with L'Oreal's Plenitude, another agency client. L'Oreal is said to be developing a body moisturizer that would compete against Jergens lotions. Jergens is also testing Replenaderm moisturizer on the West Coast. Jergens is unbundling its media and creative with media reportedly going to Media That Works. Creative has not been assigned.

BEAVERTON, Ore.-Nike will not offer a new line of Air Jordan apparel this fall and will instead roll out new redesigned merchandise this winter with the introduction of the 10th generation of Air Jordan basketball shoes.

And in a curious bit of casting, Nike and Wieden & Kennedy, Portland, Ore., have tapped revered Beat author William Burroughs as spokesman for the $20 million-plus July launch of the Air Max Squared shoe line.

PARIS-France's Parliament last week lifted restrictions on outdoor alcohol advertising, amending a 1991 ban. France amended laws limiting the types of alcohol that can advertise and where, though ads still must carry health warnings. However, France rejected proposals to ease the tobacco ad ban and to allow alcohol and tobacco manufacturers to sponsor athletic events. Agencies and alcohol producers say they hope the amendment will aid print ad revenues, which fell 13% after the ban.

LONDON-The European Union's programming quotas for European TV are ineffective and anti-competitive, said a report commissioned by Sony Entertainment and prepared by consultancy group London Economics. The report, focusing on France, Germany and the U.K., said the EU law allocating half of all broadcasting time to European-made programs creates unnecessary obstacles for new entrants to the market.

TOKYO-The surge of the yen against foreign currencies is spurring activity in the travel, food, beverage and auto industries, according to the Nihon Keizai Shimbun. Travel agents said the strong yen, trading last week at less than 100 to the dollar, will generate an increase in demand for overseas trips in the summer holiday season while food, beverage and auto marketers predict more competition from imports. Imported beer volume is 50% higher for the first four months this year than 1993. Dealers of imported autos, which usually revise prices only in the fall, have been slashing prices and are likely to continue.

LONDON-The U.K. broadsheets' circulation war intensified last week when Rupert Murdoch's The Times slashed its weekday cover price to 30 cents from 45 cents. This salvo followed that of the U.K.'s top broadsheet, the Daily Telegraph, which cut its price to 45 cents from 72 cents. The Telegraph cut countered The Times' original cut in September to 45 cents from 68 cents, which boosted its average daily circulation 28% to 472,000 between December and May from the same period the previous year. The Telegraph's average circulation dropped 1.6% to 1 million.

TORONTO-Wal-Mart Canada is rolling out its first national ads. The $7.2 million TV campaign from SMW Advertising broke June 20 with the slogan "Pardon our dust," thanking Canadians for their patience during store renovations this summer. Wal-Mart bought 122 Woolco stores from Woolworth Canada in January.

SYDNEY-Tourism New South Wales will spend up to $6 million to advertise in the U.K., New Zealand, Singapore, Indonesia, Taiwan and Malaysia throughout the rest of the year. The ads, created by George Patterson Bates, will be part of Partnership Australia's cooperative tourism marketing program funded by the states, the Australian Tourism Commission and the tourism industry.

INGOLSTADT, Germany-Volkswagen subsidiary Audi invited several agencies to pitch for its $16 million German account for the new A4 model, which replaces the 80 model in 1995. Agencies invited are DDB Needham Heye & Partner, Vienna; Jung von Matt, Hamburg; Ernst & Partner, Duesseldorf; and incumbent Soiess, Ermich, Andere, Duesseldorf.

LONDON-Dentsu will acquire an 80% share in Travis Dale & Partners from Collett Dickenson Pearce & Partners. Dentsu already has a minority stake in CDP Europe. The deal, to be signed in the fall, will enable Dentsu to have a second U.K. agency through Travis Dale, which had billings of $22.5 million in 1993. Collett Dickenson Pearce had $114.3 million in billings.

BARCELONA-Pitches for SEAT's estimated $200 million pan-European account were moved to this week. Finalists are Casadevall Pedreno & PRG, pitching with Ayer Europe, and incumbent Tiempo/ BBDO. The other incumbent, Tapsa/N W Ayer, Madrid, will not pitch (AA, May 2, et seq.).

LONDON-Kodak U.K. reportedly is reviewing its $15 million account, now handled by J. Walter Thompson Co. Young & Rubicam, which works on Kodak in other European markets, is the other contender.

MELBOURNE-National retail chain Kmart is reviewing its $6 million account. The account is split into roughly equal parts, with Republic Advertising handling electronics, Tutcor Advertising handling print and catalogues and consultant E. Charles Anzarutt handling media placement. Kmart invited the three incumbents and several unnamed agencies to pitch.

Raytheon Co., Lexington, Mass., is conducting a review to consolidate its $10 million account at one shop. The review is believed to be limited to Boston-area agencies. Incumbents are Grey Advertising, New York, with an estimated $4 million account; McCann-Erickson Worldwide, Houston; and Keiler & Co., Farmington, Conn.

Fashion Bug, Bensalem, Pa., to Grace & Rothschild, New York, from in-house, for the women's apparel retailer's estimated $10 million account.

London Fog Industries, Darien, Conn., to Grey Advertising's Media Connections subsidiary, New York, from the Martin Agency, Richmond, Va., for its estimated $5 million to $8 million media planning and buying account.

Guinness Brewing, London, to Publicis, first agency for the $7.5 million Enigma premium beer account.

Frigidaire Co., Dublin, Ohio, to Campbell Mithun Esty, Minneapolis, from SBC, Westerville, Ohio, for its $5 million-plus Frigidaire brand account.

Natural Country Foods, Rockville, Conn., to Taylor-Gordon & Co., New York, for a new, estimated $5 million fresh juices and juice drinks line.

Accolade, San Jose, Calif., to Goldberg Moser O'Neill, San Francisco, from Darien & Kilburg for the computer game marketer's $3 million account. Also to Goldberg, Nancy's Specialty Foods, Newark, Calif., from in-house, for the quiche and hors d'oeuvres marketer's $2 million account.

Living Books, San Mateo, Calif., to Hoffman/Lewis, San Francisco, first agency for the Random House and Broderbund Software joint venture marketing children's books on CD-ROM.

Europa Time, Boca Raton, Fla., to Ryder & Schild, Miami, from Anita Hoffman & Associates, Coral Gables, for its Vuarnet watches account.

Tele-Communications Inc., Englewood, Colo., in August plans to launch TV!, a sampler channel with programming from several smaller cable networks.

Hallmark Cards, Kansas City, Mo., will sell its Crown Media cable TV operations in 15 states to a group of other cable-system owners for $900 million. The deal follows two other June system sales: Comcast Corp. acquired Maclean Hunter's U.S. systems for $1.27 billion, and Cox Enterprises bought Times Mirror's cable holdings for $2.3 billion. A fourth deal is in the works: Century Communications Corp. is reportedly discussing a $350 million-plus purchase of Gaylord Entertainment Co.'s cable holdings.

Newspaper ad revenues increased 6% to $7.4 billion in the quarter ended March 31 compared with a year earlier, the Newspaper Association of America reported. Retail ad revenues grew 4% to $3.8 billion. National advertising jumped 8% to $1 billion and classifieds grew 9% to $2.6 billion.

Moving Impressions, a "mobile outdoor board" company based in Heathrow, Fla., has signed Universal Studios Florida to a three-month contract. Ads for the studio's "Jaws" attraction will be carried on the sides and backs of five 48-foot tractor-trailers traveling the East and Midwest. The boards also will feature an 800-number for customer response.

Outdoor board ad revenue for the first quarter was $166 million, up 19% from a year earlier, according to Competitive Media Reporting. The rise partly resulted from more outdoor companies reporting.

News International, London, to Simons, Palmer, Denton, Clemmow & Johnson from Arc Advertising for its $4.5 million account for national U.K. tabloid News of the World.

Robert Alter, 65, to interim president, Cabletelevision Advertising Bureau, New York, from vice chairman as the trade group looks to replace Thom Mc-Kinney. He left May 1 to become president-chief operating officer at Cablevision's Rainbow Advertising Sales Co. Mr. Alter was CAB's founding president.

The Orange, Fiesta and Gator bowls are the subject of a spirited bidding battle by ABC and CBS. A new alliance will package the games on a single network. CBS, seeking to offset the losses of NFL and other major sports contracts, reportedly is offering $40 million for the package. The TV rights begin in 1996.

Preston Padden to president, network distribution, a new post, Fox Broadcasting Co., Beverly Hills, Calif., from exec VP-affiliate relations. He retains the title of senior VP-government relations at News Corp.

Cowles Magazines, Stamford, Conn., acquired the Walking Co., publisher of The Walking Magazine. The every-other-monthly title has paid circulation of 477,761 and will remain in Boston.

Jack Clements, 65, is retiring as president of the Mutual Broadcasting System. The position will be eliminated and the responsibilities split between Bill Hogan, president of Westwood One Networks Division, and Greg Batusic, president of Westwood One Entertainment Division.

Jill Smith, 36, to president-CEO, Standard Rate & Data Service, Wilmette, Ill., from principal, Talisman Co., Boston. She replaces James Meyers, who left last month after trustees for Maxwell Communication Corp. sold the directory company to the Dunning Group.

Gordon Hughes, 53, resigned as president of marketing for the Outdoor Advertising Association of America, New York, last week. OAAA VP-Marketing Jayne Ferguson will assume his duties until a permanent replacement is named.

Darryl Hartley-Leonard, 49, to chairman, Hyatt Hotels Corp., Chicago, from president. He succeeds Thomas J. Pritzker, who remains president of Hyatt Corp. Mr. Hartley-Leonard is succeeded by Douglas Geoga, 38, who was exec VP of Hyatt Development Corp. (For more people news, see Page 43.)

N W Ayer, New York, is acquiring the consumer division of Bentley, Barnes & Lynn, Chicago, which it will fold into Ayer's Chicago office. Bentley's recruitment division is being retained by owner TMP Worldwide, a Yellow Pages and recruitment agency. Ayer's Chicago office reports capitalized billings of $30 million and 24 employees; Bentley's consumer division has capitalized billings of $20 million.

Agriculture for Clean Air, a coalition of Midwest farmers and agricultural interests, ran a page ad June 22 in The Wall Street Journal touting the benefits of ethanol, a grain-based gasoline additive. The ad was part of a lobbying effort for a federal proposal to mandate use of gas with ethanol in certain markets that don't meet clean-air standards. Archer Daniels Midland, the nation's largest producer of ethanol, is listed in the ads as a coalition member. Two other ads ran in May, leading the American Petroleum Institute to file a complaint with the Federal Trade Commission on June 2 claiming the ads are "deceptive." The Illinois Farmers Union, Springfield, a member of the coalition, would not disclose who is in charge of the effort or whether an agency was involved.

Saab Cars USA, Norcross, Ga., is introducing a redesigned 900 convertible with an estimated $5 million campaign that includes ads in July magazines as well as cable and spot TV, spot radio and outdoor breaking in mid-July. The campaign, by Angotti, Thomas, Hedge, New York, emphasizes both the emotional attraction of a convertible and its all-season versatility.

Fruit of the Loom, Chicago, and Calvin Klein Ltd., New York, last week terminated discussions about the underwear manufacturer acquiring Calvin Klein's jeanswear division.

No Excuses Sportswear, New York, named Paula Corbin Jones as the most "Alive & Uncensored" woman in America. Ms. Jones, 26, has accused President Clinton of sexual harassment. The jeans and sportswear marketer awarded her $50,000, with half going to the Women's Center of Northern Virginia. The award comes in conjunction with the marketer's ongoing anti-violence ad campaign in national fashion publications, from Amodeo Petti, New York.

General Motors Corp. on June 23 began a planned two-year, 12-city test of electric vehicles (AA, May 16) designed to get consumer feedback. Starting in Los Angeles, GM is loaning an Impact two-seater electric car to consumers for two- and four-week periods.

Hospitality Franchise Systems, Parsipanny, N.J., confirmed it will begin serving McDonald's Corp. food in 40 motels within the next few months. The test will involve 20 McDonald's restaurants delivering food to a few motels from each of its five chains-Days Inn, Howard Johnson, Park Inn, Ramada Inn and Super 8. Pizza Hut already sells its products through Hospitality and in nearly 2,500 U.S. Choice Hotels.

Florists' Transworld Delivery Association, Southfield, Mich., announced a July 14-15 board meeting to discuss the possibility of selling its business operations. Unsolicited offers have come from a Chicago-based group led by Paul Beitler, and a group led by Fleet Financial, a Providence, R.I., financial services firm.

Procter & Gamble Co. July 5 will mail through Publishers Clearing House coupons for 27 brands, partly to benefit the Give Kids the World organization. Some 60 million households will receive coupons worth more than a total of $10. For every coupon redeemed, P&G will donate 10›, up to $500,000, to the non-profit group that provides free vacations to Walt Disney World Resort and other Central Florida attractions for children with life-threatening illnesses.

Peggy Newcomer Pollack, 38, associate publisher of Mademoiselle, died June 21 in New York of colon cancer. She previously served in advertising posts at Elle, The New Yorker and Mirabella.

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