Frohlinger's Marketing Report articles from April 1997

Frohlinger's Marketing Report archives from April 1997

LITTLE BANG EXPLOSION: ROUND TWO CLICKS INTO PLACE
April 14, 1997... Over the past decade, the advertising world has gone in two directions-global consolidation and remaking itself with new forms of branded communications. The level of new advertising group models has reached a crescendo. What is likely to emerge...

HEINZ REVIEWS GLOBAL ADVERTISING
April 14, 1997... The H.J. Heinz Company is in the early stages of a major advertising review for the company's core businesses. "Advertising will be reviewed. Business by business and we will get around to it shortly," said a senior official at Heinz. The move...

FORD - DECISION TIME
April 14, 1997... Changes are expected shortly in the way Ford Motor handles its $1 billion+ global advertising budget. "I am looking at making some changes. In the next week we will have a better idea of what we are going to be doing. I feel fortunate that we...

QUAKER HIGH ON GATORADE
April 14, 1997... With the recent divestiture of long-time headache Snapple, Quaker CEO Bill Smithburg is finally able to get back to business. Despite additional rumors that Gatorade is for sale (it always will be for the right price), the scenario of Pepsi...

WRIGLEY - NEW PRODUCT DROUGHT
April 14, 1997... Wrigley management faced with share erosion in its key brands. Wrigley is down in unit sales for three years running. Problem is lack of new products activity. "They are not active and don't lead the category with innovation the way they should....

GENERAL MILLS - SHOW ME THE MONEY
April 14, 1997... Cereal marketing has never been tougher but General Mills has shown cracks in its armor. What is surprising is how General Mills management keeps pushing the timetable on profitability for its joint venture farther and farther down the road. In...

CABLE BANGS ON NETWORK DOOR
April 14, 1997... Turner Broadcasting research (conducted by Nielsen) makes interesting argument for increased cable outlays in efficiency argument against networks. Study highlights cable's reach and leverage (in narrow terms almost identical to primetime)....

AVIS DRIVE-TIME?
April 14, 1997... With recent acquisition by HFS Corp. talk of an impending ad agency review for Avis has kicked around but sources indicate an all-out review will begin in the next ten days. Avis has a new CEO Craig Hoenshell; Robert Cardillo remains in Vice...

MARK ANOTHER ONE FOR REUBEN
April 14, 1997... Colgate CEO Reuben Mark may be frustrated on one hand but his magic touch has not disappeared. Mark has watched the stock price of Colgate increase under his tenure grow from $2.7 billion (as of December 31, 1987 to $13.6 billion as of December...

GETTING BACK ON TRACK
April 14, 1997... Vermont Pure CEO Tim Fallon in second stage of turnaround for niche Northeastern water bottler. Water business following model of soft drinks with wide usage of large, single-serve drinks. "The water business is ubiquitous and water is becoming...

CADBURY MISSES THE BOAT
April 14, 1997... In what would have been two plus two equals six, the most mystifying move lately was why Cadbury Schweppes did not purchase Snapple. Cadbury is flush with its sale of the European operations. Snapple would have been a nice addition and fit nicely...

HEUBLEIN BONANZA
April 14, 1997... Look for a major management shakeup inside Heublein shortly. Look for Paddington Corporation President Tony Foglio to gain a new marketing and sales position at Heublein. Foglio will report into Heublein CEO Chuck Phillips and oversee all sales...

PEPSI BLUE
April 14, 1997... There is some confusion in PepsiCo ranks over the future direction of several of its top executives. Dawn Hudson, Frito-Lay's Executive Vice President of Marketing and Sales, is raising some eyebrows by staying so far at corporate headquarters...

WIEDEN MISSES NIKE BOAT
April 14, 1997... Nike management has soft-pedaled the volume on the ad switch that Nike moved out of long-time ad resource Wieden & Kennedy. Nike and industry insiders feel the total billings that moved from Wieden & Kennedy is between $100-$200 million and that...

A-B ROLLS
April 14, 1997... Look for A-B to unveil new equity agreement with distributors in next six months. "The way the national sales meeting was canceled was strange. And then the numbers fell. A-B is working on new equity agreement that will be rolled out later at a...

Ad Libs:
April 14, 1997... Doesn't the advertising for Smirnoff miss? The print campaign doesn't connect and even though the tv ads overseas work, the U.S. model is off base. It's an account waiting to go into review&Umbro expected to pick a new advertising agency to...

TRADE MARKETING MANAGEMENT ON THE RISE
April 28, 1997... Look for trade marketing to catapult as one of the key trends in the next three years. The ability of agencies to deliver on trade marketing, especially at the local level, will be a priority that marketers will require in the near future. "The...

ESPN LAUNCH ON THE WAY
April 28, 1997... It looks like the decision to launch an ESPN sports magazine has been given the go-ahead by Disney management. Disney is expected to bankroll the new magazine launch with a budget close to $100 million in an effort to compete against...

LEO BURNETT FIREWORKS
April 28, 1997... In the aftermath of the forced ouster of Leo Burnett's top management, a nasty legal fight is in the works. Former Leo Burnett Chief Executive Officer Bill Lynch in conversations with law firm Skadden Arps as counsel against his former employer....

NIKE LOOKS AT SUPERBRANDS
April 28, 1997... Nike, on a financial roll recently, is looking to accelerate its brand portfolio. Look for an increased focus on the branding effort behind top-selling Michael Jordan brand later this year. "We are developing a new basketball brand here at Nike,...

DMB&B GETS NEW GLOBAL OUTLOOK
April 28, 1997... D'Arcy Masius Benton & Bowles CEO Arthur Selkowitz strives for new look at major advertising agency unit of MacManus Group. "There is a new look at the agency and it has more of a global representation. I am the first CEO of D'Arcy Masius Benton...

P&G STUDIES FOOTE, CONE & BELDING
April 28, 1997... Foote, Cone & Belding is trying its damnedest to make a good case to Procter management and stay on P&G's agency roster. With the acquisition of Tambrands by P&G, FCB joined P&G's roster. "The agency is going to show P&G why it would be in...

POWER ON
April 28, 1997... PowerBar is rolling out new advertising and new products. Efforts part of the company's initiatives to grow mainstream while preserving its marketplace niche said President Brian Maxwell. "We're trying to put a little fun back into the brand in...

CORDIANT SCENARIO MAKES LITTLE SENSE
April 28, 1997... With restructuring decision by Cordiant PLC (FMR reported moves likely 4-14-97), what is left makes for a puzzling strategy. Cordiant PLC management has decided that the pieces of the puzzle should be accorded a higher value separately than what...

MCI BETS ON SPECIAL EVENTS
April 28, 1997... MCI has paid special emphasis to its golf sponsorship as part of its overall marketing efforts. MCI Senior Vice President Special Markets Jim Wilkes feels commitment has worked well (MCI Classic has blossomed into a major PGA event).MCI developed...

NEW WOVE
April 28, 1997... Look for a major round of restructuring and shuffling in the apparel category as Hanes and Fruit of the Loom regroup. "Hanes is going through restructuring and shuffling the deck right now. Hanes is getting more bureaucratic but both of them have...

CHASETIME
April 28, 1997... Speculation has kicked up on the succession issue at Chase Manhattan Bank with the planned departure of Vice President Wright Elliot this July. Chase spends $70 million globally on advertising. "The question is who will replace him. Wright has...

BREEZERS FREEZES
April 28, 1997... Brown-Forman is pulling the plug on its Icebreakers brand. "They are paying distributors to kill it. They are paying half of the FOB. It is not producing a profit. All the focus groups said the idea was right and it was worth the investment. They...

WINE COOLERS - RIP
April 28, 1997... Look for the Seagram Company to pull the plug this year on its cooler products. What once looked like a $500 million category has fallen by the wayside. Ad spending initially by Gallo for its Bartles & Jaymes cooler products kicked the category...

COMPAQ DRONES ON AND ON
April 28, 1997... The global ad review for Compaq seems like the Energizer bunny commercials and is going through its sixth month of the process. Both agencies (Bates and Ammirati & Puris Lintas) have picked up the ball. "Both agencies have really moved into high...

REEBOK FLARING UP AGAIN?
April 28, 1997... The on-again, off again rumors about Reebok have kicked up their heels again. Sources indicate that a major presentation between Reebok CEO Paul Fireman and top Leo Burnett brass did not take place. "Fireman was supposed to be there and did not...

NEW DESIGN FORMS
April 28, 1997... Corporate branding efforts have turned the corner and reached a higher level. Landor Associates New York Managing Director Allan Adamson sees imminent change. "There is a high degree of change now. We're getting more branding assignments from...

NEW PLATFORMS?
April 28, 1997... Many computer software experts feel that the summer could be critical and forespell a major change in the hardware wars between Sony, Nintendo and Sega. Accelerated PC cards expected to be placed on Intel motherboards this summer. Move raises...

Ad Libs:
April 28, 1997... Rubin Postaer solidifies ranks with Bill Hagelstein (served stint earlier with agency; rejoined from FCB). "As we slowly evolve this agency to the 21st century, Bill is an important part of the equation," said Rubin Postaer CEO Gerry Rubin,...