Corel to slash spending
[ottawa] Corel Corp. is cutting ad spending by more than half as it moves to trim costs and prepare for further losses. For the first quarter of 1998, Corel will spend just $10 million advertising its CorelDRAW and WordPerfect software around the world, down from about $22 million a quarter it has been averaging since early 1996. Corel lost $31.4 million in the third quarter and could lose as much as $20 million in the fourth quarter, the company warned. Corel's TV and print buy will see the bulk of the cuts, a spokeswoman said, adding, "We [now] want to leverage what we do have and make the most of our placements." All of Corel's worldwide advertising is handled in-house.
Lee jeans targets
women in India
[bombay] VF Corp., whose Lee brand leads the upscale jeans segment in India, in October plans a foray into women's denimwear accompanied by aggressive advertising and more retail outlets. VF licensee Arvind Fashions will introduce a new line of women's jeans timed to coincide with the beginning of the Hindu new year, when many Indians loosen their purse strings. Also, in the next two months, five more franchised stores will open, taking the nationwide total to 50. Advertising will continue to focus on Grey Advertising's international theme, "The jeans that built America." Trikaya Grey, Bangalore, the local agency handling the brand, has been given a $1.1 million budget.
CNN Int'l beefs up
[london] CNN International on Sept. 29 unveiled "the most radical change" to its distribution and programming. It will begin telecasting four custom-tailored services to Europe/Africa/Middle East, Asia, Latin America and the U.S. CNNI's 12-year-old global service has been upgraded with a multimillion-dollar investment in programming and the building of a new "master control" center in Atlanta. "Next Monday sees the first stage of a major expansion of CNN's international services and it is only the start," said Chris Cramer, exec VP-managing editor of CNNI. "There will be more regional programs, more investment in staff and technology, more use of independent producers and the planned introduction of a major documentary strand .*.*." CNNI claims that 80% of its programming now is provided exclusively for an international audience. Separately, Sweden's U.F.O. Records is running a global campaign exclusively on CNNI, which more typically carries ads for banks, airlines and cars. The campaign promotes solo artist Magoria's debut album, "The Divine Child." The 30-second spot marks the first time an artist has been promoted on CNN International and CNN en Espanol. U.F.O. Managing Director Hans Edler said of the media selection: "Like millions of others, I watch CNN every night when I travel and have done so for the past 10 years, and I feel that CNN would be perfect vehicle to promote this album."
Philips focuses on CNN
for computer launch
[london] Carat International, the media buying and planning independent, has chosen CNN International to support the launch of Philips' new Velo palmtop computer. The product initially will launch Oct. 13 in the U.K., Netherlands and Scandinavia before rolling out to the rest of Europe. "Although this new product will only have a limited European distribution by the end of 1997, Philips plans to expand into all of Western Europe early next year," said Jon Chase, Carat senior account manager. "The media approach we developed focused primarily upon an umbrella pan-European campaign, supported by national upweights in each of the launch markets." Amir Shademan, regional manager-Europe for Philips Mobile Computing Group, said: "We have chosen to use CNN International as one of our main channels for our pan-European advertising campaign as this is a typical medium for our target audience, the mobile professional."
Sega, Mitsubishi plan
[bombay] Sega Enterprises and Mitsubishi Corp. have tied with Mahindra Holidays & Resorts here to open Sega-branded family entertainment centers in India. Sega and Mitsubishi each will hold 20% in Mahindra Sega Entertainment and the Indian partner the remaining 60%. The partners intend to open two Sega entertainment centers in Madras by yearend, followed by Bombay, New Delhi, Calcutta and Bangalore. "India will be our second-largest market, next only to China in this region, and we will aggressively open new stores," said Nobuo Nakanishi, director at Sega Enterprises' Overseas Amusement Business Division. The alliance is aiming for 30 stores and sales of $17.8 million in two years.
[tokyo] Shiseido International this month introduces Vocalise perfume. The company will start selling the fragrance in U.S. department stores and in some parts of Japan before rolling out distribution to Europe next spring. The international subsidiary of Shiseido, the fourth biggest cosmetics company in the world, plans with this launch to revitalize the Japanese market as well as develop its overseas sales. The company has the stated aim of reaping 25% of its sales from outside Japan by 2000. Perfume-related products already account for 30% to 40% of sales in European and U.S. cosmetic markets. But in Japan, they are worth a mere 1% of sales.
Shock jock Stern turns off
4 Canadian advertisers
[toronto] Four advertisers have pulled out of "shock jock" Howard Stern's show now airing on Toronto radio station Q107 and Montreal's CHOM-FM. Bell Mobility, Aventure Electronique and hardware chain Reno-Depot canceled their ad contracts on the Montreal station. The Toronto Star pulled its ads from the Stern show in that city. The newspaper also called on its readers to boycott the show; the disc jockey responded by telling Canadians to boycott the Star. After just one week on the air, Mr. Stern's morning drive show generated a record 240 written complaints to the Canadian Broadcast Standards Council.
'Toronto Star' uses
ads to tout revamp
[toronto] The Toronto Star, Canada's largest daily newspaper, is investing $8 million to upgrade its editorial product and another $1.5 million to promote the changes in an ad campaign. Lying ahead for the Star is competition, as early as next year, from a new national daily paper planned by Southam and Hollinger. Toronto already has four dailies. The Star's new campaign is tagged "Your city is changing. Is your newspaper?" The paper also is advertising to advertisers via trade publications. Enterprise Creative Selling handled the campaign on a project basis, but the Star is searching for an agency of record.
Home shopping service
planned for Hong Kong
[hong kong] The multimedia division of Hong Kong's dominant telecommunications operator, Hongkong Telecom IMS, has signed agreements with three of the territory's leading retailers for an interactive online home shopping service. The service will be launch later this year as part of Hongkong Telecom IMS' interactive iTV service. The home shopping service will be TV-based, rather than computer-based, and orders will be placed using a remote control device. The three stores involved in the launch are leading supermarket chain Wellcome, department store CitySuper and Chinese bookstore Chinese Books Cyberstore/Rainbowland. Products from IMS' parent company, Hongkong Telecom, also will be available. A further agreement was signed with DHL, which will offer its courier service electronically in Hong Kong for the first time.
Asian shopping network
opens office in U.S.
[hong kong] The Sydney-based Television Shopping Network expanded itsregional Asian operation with a new office in San Francisco. The aim of the network's first U.S. base is to offer American companies a relatively inexpensive way into Asia. The electronic retailer plans to work with U.S.-based marketers to develop advertising and sponsorship opportunities aimed at 1-year-old TVSN's customer base in 46 Asian countries, including China, Indonesia, Singapore and Japan.
BDDP taps Giuily as
chief operation officer
[paris] Eric Giuily has been named to the new post of chief operation officer at BDDP Worldwide. Mr. Giuily will be primarily responsible for all financial and administrative activities of the group throughout the world. He will be involved in determining strategy, development and operational activities, particularly in supervising certain client contacts. Mr. Giuily, 45, was previously a civil servant for the French Ministry of the Interior & Decentralization, in charge of the new, decentralized structure of the French state from 1982 to 1986. He then headed several communication and transport companies.
Burger King ads
take jab at McD's
[toronto] Burger King Corp. is taking direct aim at McDonald's Corp.'s flagship Big Mac burger with ads in Canada for its new Big King. The burger was launched with much fanfare in late August in the U.S. and Canada. Now, TV and radio commercials from Radio Works here include the line, "Who would you put your