The Week

Published on .

In a review now in its fourth year, nearly all of the eight agencies submitting bids for the California Lottery's $100 million four-year general marketing contract failed to meet ownership disclosure requirements, the Lottery announced last week. The Lottery would not disclose which agencies provided flawed information, a key point involved in the cancellation of previous RFPs, but gave them until Jan. 14 to amend, drop out or resubmit their bids. The Lottery noted that it would compare disclosure information among participants from the same holding company. Six of the eight agencies participating are owned by holding companies. "The Pandora's Box just opened" for protests, said one executive following the review, noting that while the Lottery was trying to maintain a level playing field, it "just helped some of the participants" by allowing for reconsideration of disclosure information. To see the agency list, go to QwikFIND aap26x

Apple updates `1984' for iPod

Apple Computer celebrated the 20th anniversary of the Macintosh launch with a speech from Steve Jobs to the faithful at Macworld Expo in San Francisco last week. Mr. Jobs showed off a modified version of the celebrated 1984 Super Bowl spot, this time showing the female runner wearing an Apple iPod. The plan to pay homage to the "1984" spot was first reported by Advertising Age Dec. 8. Although Apple had considered airing the original spot or a modified version, it is not expected to run it on the Super Bowl or in other paid media, according to a spokesman for Apple agency, Omnicom Group's TBWA/Chiat/Day, Playa del Rey, Calif. Mr. Jobs also announced the addition of a smaller, cheaper version of the iPod at the session. See the spot at QwikFIND aap26u

Time Life sold to ZelnickMedia

Time Inc. sold its troubled Time Life direct-marketing unit to ZelnickMedia. Terms were undisclosed, though the deal includes a cash component, a yearly royalty fee and some restrictions on what may be marketed under its rubric. Time Life was tracking to post around $350 million in revenues in 2003 and was not profitable. ZelnickMedia will fold in Time Life with its online and catalog retailer Lillian Vernon to form a new unit called Direct Marketing Holdings Worldwide. The company said that, with the new acquisition, Direct Marketing will have yearly revenues exceeding $500 million. ZelnickMedia partner Jim Friedlich said the company had made "no firm decisions" on whether it would prune Time Life's roughly 1,200 employees. QwikFIND aap26i

DDB's Staffen moves to Arnold

The New York office of Havas' Arnold Worldwide hired John Staffen, most recently co-executive creative director at Omnicom Group's DDB Worldwide, New York, as creative director, as part of the agency's effort to bolster its creative offering. Following four separate stints at DDB over 18 years, Mr. Staffen, 43, left the agency in October. At Arnold, New York, he succeeds Rochelle Klein, who in December resigned as vice chairman-chief creative officer; he will oversee work for clients including GlaxoSmithKline, Hasbro, and the Bermuda Dept. of Tourism. (See story, P. 10) QwikFIND aap26t

Holden to head Kraft global effort

Kraft Foods last week announced a new global marketing structure to be headed by former co-CEO Betsy Holden, but the news seemed less important to analysts than the company's expected lowering of growth targets later this month. The new global structure, which includes the creation of four global consumer sectors as well as global marketing resources, health and wellness and new product development functions, seems to "demonstrate that something was not working," according to a note by Credit Suisse First Boston analyst David Nelson. But, he said, "bigger picture, we think management needs to address its overly aggressive growth targets and cost structure, which we think is too high for its commoditized categories." Kraft had pledged to spend an incremental $200 million in marketing to narrow price gaps with private-label competition and analysts expect that figure to grow to as much as $600 million in incremental spending this year. Such a plan will be outlined in detail in a meeting with analysts Jan. 27. QwikFIND aap27m

Interim president quits Red Lobster

Dick Rivera, Darden Restaurants' president-chief operating officer and interim president of the Red Lobster chain, surprised the industry last week with his resignation. The move baffled Wall Street, causing Darden shares to fall 9% in the following day's trading in the wake of the announcement. Mr. Rivera is the latest in a string of executives to leave the company in recent months, calling into question the chain's management succession. Mr. Rivera's duties will be assumed by Darden Chairman -CEO Joe Lee, who hopes to name a Red Lobster president by June. He will consult with the company during a transition period. Red Lobster is a key client of Havas' Euro RSCG Tatham Partners, Chicago. QwikFIND aap26s


Wenner Media's Rolling Stone Publisher Rob Gregory was named as group publisher of Dennis Publishing's Maxim. Mr. Gregory, 45, begins Jan. 12. He'd spent just shy of three years at Wenner Media. He replaces Jamie Hooper, who is leaving Dennis. Rolling Stone also lost its art director, Andy Cowles, who with managing editor Ed Needham significantly reworked the look and feel of the title in 2002. QwikFIND aap26v ... Burrito chain Chipotle, part of McDonald's Corp.'s Partner Brands, has hired Mother, New York, as its first-ever agency of record. The Mexican chain had worked with freelance and in-house resources to develop creative with the chain's $8 million to $10 million marketing budget. QwikFIND aap27k

Most Popular
In this article: