Apple explores marketing to Hispanics
CUPERTINO, Calif.-Apple Computer President-CEO Michael Spindler told shareholders at the annual meeting last week that Apple is looking for ways to push into the Hispanic market. A spokeswoman declined to discuss whether Apple plans to hire a Spanish-language agency, but Advertising Age has learned the company has scheduled a meeting with at least one U.S. Hispanic shop.
Sony picks finalists for $50M account
FOSTER CITY, Calif.-Sony Corp.'s Sony Computer Entertainment of America last week narrowed the review for its new $45 million to $50 million Sony PlayStation videogame account. Finalists include Team One, El Segundo; Goldberg Moser O'Neill, San Francisco; and Chiat/Day, Venice.
P&G sends $1M in relief aid to Kobe victims
CINCINNATI-Procter & Gamble Co. has donated $1 million for community relief efforts in Kobe, Japan, following the devastating Jan. 17 earthquake (see story on Page 34).
White House studies new broadcaster fees
WASHINGTON-The Clinton administration is seriously considering a proposal that would require broadcasters to pay annual fees for using the public airwaves during the next five years, Electronic Media reported. But broadcasters vowed to fight. "It would be a grievous mistake that would undermine 70 years of communications law," said Eddie Fritts, president-CEO of the National Association of Broadcasters.
Ziff names Ovitz, Suhler, Shultz to board
NEW YORK-Ziff-Davis Publishing Co., bought last month by Forstmann Little & Co., today is announcing a 13-member board including Creative Artists Agency Chairman Michael Ovitz and Brian Roberts, president of cable TV operator Comcast Corp. Other members include two Ziff executives, Chairman-CEO Eric Hippeau and Ronni Sonnenberg, president of Ziff's business media group; and four Forstmann partners, led by Theodore and Nicholas Forstmann. Ziff will have seven outside directors, including Lazard Freres & Co. General Partner Steven Rattner; Veronis, Suhler & Associates President John Suhler; and ex-Secretary of State George Shultz.
Jordan McGrath maps out transition
NEW YORK-Top executives at Jordan, McGrath, Case & Taylor are working on a transition plan that would include Chairman James Jordan Jr. selling some of his shares to another tier of managers. Several executives within the agency, including Exec VP-Account Services Stephen Badenhop, stand to gain.
$35M review blooms for FTD
SOUTHFIELD, Mich.-Florists' Transworld Delivery Association has put its account up for review as part of an evaluation of all business operations following its December merger with Perry Capital, a New York-based investment company (see related story on Page 12). New ownership has said it will increase ad spending to about $35 million, up about 75% from an estimated $20 million in 1994. FTD has talked with several undisclosed agencies. Incumbent D'Arcy Masius Benton & Bowles, Bloomfield Hills, is expected to take part in the review.
Taco Bell teases new line on Super Bowl
IRVINE, Calif.-PepsiCo's Taco Bell Corp. used its two 30-second Super Bowl spots yesterday as teasers for the March introduction of a new line of products. The spots from the Richards Group, Dallas, show a crowd of people staring up at lights in the night sky. "Fast-food will never be the same," hint the teasers. The new line of products may include reduced-fat meals, marketed as healthy alternatives to regular fast-food.
FCB installing new management in San Francisco
SAN FRANCISCO-Foote, Cone & Belding's office here is putting a new management team in place and preparing for some major restructuring in its creative department and new-business operation. Jack Boland, 38, formerly exec VP and director of North American Operations for FCB, has been named exec VP-general manager for San Francisco, replacing Richard Ward, 39, who will work on strategic planning and development.
CNS inflates sports campaign for nasal strips
CHANHASSEN, Minn.-CNS launched the first sports marketing effort in support of its Breathe Right product-nasal strips that aid breathing. Breathe Right has become a hot item among NFL players, and a page ad that ran in USA Today Jan. 27 featured San Francisco 49er Jerry Rice, who has signed a long-term endorsement deal with the company. The ad was created by Seitsema, Angle & Partners, Minneapolis. The company may approach the NFL to get rights to use team logos on product and packaging.
AT&T upset by Y&R link to Redgate
NEW YORK- Young & Rubicam is in hot water with AT&T over a plan to bring Redgate Communications Corp. into its pitch to be AT&T's interactive agency of record. Agency executives said AT&T, which owns Interchange Online Network, was concerned with Redgate's participation because the Vero Beach, Fla.-based new-media company is owned by America Online. Others said Y&R is negotiating to remain in the pitch. Also pitching are N.W. Ayer & Partners, Bozell Worldwide's Poppe Tyson and McCann-Erickson Worldwide; and Modem Media, Westport, Conn. Separately, Procter & Gamble Co. isn't expected to make a decision on its interactive agency of record review for a few more weeks (see related story on Page 13).
Interpublic creates new unit for service divisions
NEW YORK-Interpublic Group of Cos. said on Jan. 27 it has formed a new unit called the Allied Communications Group to coordinate its expanding roster of service companies, such as All American Communications, CKS Interactive and Time Warner Interactive. Richard Villante, who was vice chairman of Lowe & Partners/SMS, has been named president.
Women's tennis tour mulls new marketing agency
NEW YORK-Sports marketing agency IMG is offering the Women's Tennis Association Tour a four-year, $16 million deal for exclusive rights to negotiate the tour's marketing and TV deals. Cleveland-based IMG would take over efforts to find a sponsor, from rival Advantage International, Washington. The WTA Tour has been unable to find a sponsor since Kraft chose not to renew two years ago.
Asian TV plans explode with satellite
HONG KONG-Major Western broadcasters' efforts to change Asia's TV market were hurt last week when a Chinese-made rocket carrying APT Satellite Co.'s Apstar-2 exploded after takeoff. Apstar-2 was to carry 100 channels including ESPN Asia, the Discovery Channel, MTV Asia, CNN International and Asia Business News. Newcomers to the region's market like Walt Disney Co., Time Warner and NBC International now have no means of distribution for the Mandarin, Hindi and English-language channels they planned to start this year.
Fretter unites $30M account at Admarketing
BRIGHTON, Mich.-Fretter consolidated its estimated $30 million TV, media and print production account, including the Fretter, Silo and Fred Schmid electronics chains, at Admarketing, Los Angeles. The account formerly was split primarily among Yaffe & Co., Southfield; Los Angeles-based Western International Media; and an in-house group.
Maclean Hunter sells two titles
STAMFORD, Conn.-Maclean Hunter, in the midst of divesting its U.S.-based properties, sold Progressive Grocer and Frozen Food Age to a group headed by publishing investor Mason Slaine. The magazines' former Exec VP-Chief Operating Officer Richard Hofler will be president of the new entity. Separately, K-III Communications is close to finalizing a deal to buy the bulk of the company's Chicago-based trade titles and its Minneapolis-based Lakewood Publishing for an estimated $65 million.
Princess Cruise Lines, Los Angeles, is reviewing its $25 million account, now handled by Lintas Campbell-Ewald.
Miles Inc., Elkhart, Ind., to McCann-Erickson Worldwide, New York, from Ammirati & Puris/Lintas for the Milk of Magnesia account, estimated at more than $8 million. SunAmerica, Los Angeles, to Asher/Gould as first agency for the financial services marketer's estimated $8 million to $10 million corporate and consumer account.
Colonial Williamsburg (Va.) Foundation to Margeotes Fertitta Donaher & Weiss, New York, from Ogilvy & Mather for the attraction's estimated $5.5 million account.
Volkswagen of America, Auburn Hills, Mich., to McKinney & Silver, Raleigh, N.C., from DDB Needham Worldwide, Toronto, for its estimated $3 million Audi brand and dealer account in Canada.North Texas Pontiac Dealers, Dallas, to Anderson Advertising, San Antonio, from J. Wilson & Associates, Albuquerque, N.M., for its $1.8 million account.
Mercedes-Benz New England Independent Dealer Group, Boston, to LCF&L, New York, from the Martin Agency, Richmond, Va., for its estimated $1 million account. Also, Delaware Valley Mercedes-Benz Dealers Association, Philadelphia, to Earle Palmer Brown from the Martin Agency for its $1.5 million multimedia ad program.Black & Decker Household Products Group, Shelton, Conn., to McCann Direct, New York, as first direct marketing agency of record.
The Capitals, Washington, to Abramson Ehrlich Manes as first agency of record for the National Hockey League team.
Florida Marlins, Miami, to Harris Drury Cohen, Fort Lauderdale, Fla., and Zubi Advertising, Miami, from Crispin & Porter, Coconut Grove, for the Major League Baseball team's account.
Fox is teaming with Reuters to jump-start its dormant Fox News Service. Initially, the partnership will provide Fox affiliates with daily news feeds to supplement local newscasts, but the move is regarded as a precursor to the launch of a Fox network news service.
General Motors Corp.'s Electronic Data Systems bought Varitel Video, a Los Angeles and San Francisco production company that works with ad agencies, TV networks and movie studios. The move is part of an expansion by the computer services company into the multimedia field.
New York Magazine to Dweck & Campbell for its $500,000 account, previously unassigned.
COMINGS & GOINGS
Lee Hill to chairman-CEO of Lee Hill Inc., a Chicago-based sales promotion agency he founded, after Chairman-CEO Paul Rogalla left. Mr. Hill, who sold the agency in 1985 to Westport, Conn.-based Marketing Corp. of America, left in 1988 to pursue a career in the arts. (For more people news, see Page 30.)
FOR THE RECORD
Glaxo last week made an unsolicited $14 billion takeover bid for Burroughs-Wellcome that would rank among the biggest merger deals and could create the world's largest drugmaker. Burroughs-Wellcome rejected the offer, offered itself for sale and sought a bidding war. Analysts said Wellcome's move was expected, since it must get the best price for shareholders but few other drug companies seemed likely to bid.
Fallon McElligott, Minneapolis, is creating a New York office by teaming up with adman Andy Berlin to form Fallon McElligott Berlin. Effective April 3, the union includes Mr. Berlin's partners from Berlin Cameron Doyle. That agency will be officially dissolved in March when its relationships with DDB Needham Worldwide and Volkswagen of America expire.Eskimo Pie Corp. has entered into a long-term licensing agreement with Weight Watchers Food Co. to begin marketing, manufacturing and distributing Weight Watchers frozen novelty and ice cream products. The deal will make Eskimo Pie No. 3 in the frozen novelty category with nearly an 8% unit market share, according to Information Resources Inc.Kia Motors of America agreed to modify its TV and print ads from Goldberg Moser O'Neill, San Francisco, after a complaint by American Honda Motor Co. to the National Advertising Division of the Council of Better Business Bureaus. The self-regulatory group ruled ads stating Kia was "obsessed with building a car that's as well made as the Honda Civic" implied a product claim that the South Korean marketer failed to substantiate.
Direct Marketing Association filed comments to the Internal Revenue Service opposing the government agency's proposed amendment to the Privacy Act. The IRS wants to access marketers' databases, as well as those of credit bureaus and other sources. Eastman Kodak Co.'s Qualex photo-finishing subsidiary today launches the second half of a $1.5 million test campaign for VoicePrint, a "talking" 5-by-7 inch picture that records 10-second messages on a microchip. The ads were created in-house and are geared to Valentine's Day. The campaign will run in nine markets, with a national rollout planned for March.BellSouth formed an alliance with Thyseen, Germany's seventh-largest corporation, to bid on a license to compete with the state-owned telephone company Deutsche Telekom.
Revlon has licensed its name to the Jack Mulqueen Co. for a new sportswear line of woven and knit tops called Colors by Revlon. The product will appear in stores in the second quarter starting with Kmart Corp. outlets, and then moving to other major mass-market and discount chains.
General Motors Corp.'s California marketing initiative appears to be paying off. The automaker said its 1994 retail car and truck sales in the state increased 14.9% over the previous year to 260,628 units. The marketing initiative, begun in August 1993, combines an ad effort developed by D'Arcy Masius Benton & Bowles, Los Angeles, with an aggressive value pricing program.
McDonald's Corp. last week reported fourth-quarter earnings increased 17% to $309 million; earnings for the year were up 13% to $1.2 billion. Revenues for the quarter grew 18% to $2.3 billion; revenue for the year rose 12% to $8.3 billion. Systemwide sales were up 13% to $7 billion for the quarter; sales grew 10% to $26 billion for the year.
Anheuser-Busch said it will take Red Wolf lager national. Advertising begins today with a page ad in USA Today. TV, radio, print and outdoor advertising will carry the theme "Follow your instincts." The company began testing Red Wolf last October. The brand is currently awaiting reassignment from D'Arcy Masius Benton & Bowles, St. Louis.Coca-Cola Co. last week reported 1994 net income rose 16% to $2.55 billion. Revenue for the year increased 15% to $16.17 billion. Fourth-quarter net income was $567 million, up 21.7%. Revenue for the fourth quarter rose 19% to $4.02 billion.Continental Airlines has agreed to pay a $38,000 fine and give away 60,000 discount coupons to settle Department of Transportation charges that it had advertised a one-way New York to Florida fare without mentioning a $2 fuel surcharge. Also, the airline reported a $41.9 million fourth-quarter loss and said it planned to lay off 4,000 workers.
Goodyear Tire & Rubber Co. introduced the Aquatred II tire to dealers at its national meeting in San Diego last week. The Aquatred II tire will be in stores at the end of March and advertising, created by J. Walter Thompson USA, Detroit, will break in May. Also, the company announced it will open an electronic store in March on the World Wide Web, a portion of the Internet. Warner-Lambert Co. reported fourth-quarter net income increased 16% to $138 million; sales rose 12% to $1.7 billion, a quarter record. Worldwide 1994 net income was up 8% to $694 million, excluding a net restructuring charge and accounting changes. Sales for 1994 increased 11% to $6.42 billion. Procter & Gamble Co. said worldwide net earnings for the fourth quarter were $750 million, up 15% from a year ago. Worldwide net sales were up 9% to $8.5 billion. The company also said it will take a $50 million after-tax charge to first-quarter earnings for costs associated with the recent earthquake in Japan.
Home Depot will hold a strategy meeting Jan. 31 to review marketing plans for its Olympic Brick program, which has experienced slower than anticipated sales since its Nov. 4 launch. In the program, a fund-raiser for the Centennial Olympic Park in downtown Atlanta, consumers pay $35 to have their name engraved on a brick and placed in the park. The goal is to sell 2 million bricks, with the park to receive the first $15 million. A large portion of sales were expected during the holiday season, but fewer than 100,000 were sold.
Association of National Advertisers has urged the Washington State Liquor Control Board to reject bans or restrictions on advertising of alcoholic beverages. The ANA was responding to proposed ad restrictions discussed at a recent board meeting.
Gannett Outdoor Group, New York, is the co-creator of Posters Against Violence, a two- to four-week campaign breaking today in 31 countries. Outdoor ad companies in these markets are donating space for the campaign, with its "erase violence" message. Muldoon Agency, New York, has been purchased from Young & Rubicam by two Chapman Direct alumni, Bill Sutherland and Rosemary O'Brien. Mr. Sutherland is past president of Chapman Direct, a Y&R division, and Ms. O'Brien is former director of client services at Chapman and has been general manager of Muldoon since 1992.