Frohlinger's Marketing Report articles from October 1997

Frohlinger's Marketing Report archives from October 1997

HOME DEPOT ADDS EXPANSION PEGS INTO BRACKET
October 6, 1997... Home Depot Chief Executive Officer Arthur Blank plans for aggressive growth in the United States with store base to at least double in U.S. by 2001. "The sector is growing and the outlook for the next five to ten years is strong with demographic...

COLGATE LATHERS UP
October 6, 1997... The Colgate-Palmolive Company will drive its global businesses with hefty increases in advertising and strong new product activity. Colgate's worldwide ad budget was increased 10% this year to $1 billion and will be increased to 12% next year,...

ADIDAS USA LOOKS FOR NEW LOOK
October 6, 1997... Adidas USA is in the early stages of an advertising agency review, report top-level sources. Advertising budget expected to be in $20 million+ ballpark. Adidas has hired a senior Coca-Cola executive-Neil Simpson, as its new top marketing guy....

RUBBER MEETS THE ROAD IN DETROIT
October 6, 1997... Two of the Big Three automakers are turning the screws on their ad agencies to reduce costs. With the precedent by General Motors, sources report Chrysler and Ford are knuckling their advertising agencies to lower costs. "Cost cutting is in the...

P&G TO SAATCHI -SHAKE IT UP
October 6, 1997... Procter & Gamble management has asked its main global advertising agency, Saatchi & Saatchi, to add former Wells Rich Greene CEO Ken Olshan to Saatchi's oversight area. Role for Olshan: 1) board member or 2) consultant. P&G has conveyed concerns...

INVUS LOOKS TO SPIN KEEBLER
October 6, 1997... Flowers Industries, which owns a 45% stake in Keebler, is examining options for its Keebler division. IPO possible. "The company is looking at spinning it off to its shareholders over the long term. If the numbers look good that is an attractive...

RETAILERS LOOK FOR OWN BRANDS
October 6, 1997... Retailers continue to demand higher prices from mass marketers to stock branded items. "It is a difficult environment. Retailers are trying to set up their own brands to a degree. I see store branding efforts getting stronger again. Many of the...

CHARMING LOOKS FOR NEW LOOK
October 6, 1997... Charming Shoppes, a national retailer with bold expansion plans, is out talking to ad agencies for a possible $15-20 million ad account. "They are very serious about spending aggressively. They are in the planning stages to do national image...

RODALE ADAPTS
October 6, 1997... Prevention Publisher Ken Wallace temporarily holding down two hats while holding down temporarily as Publisher of newly acquired New Woman title."We're about a month away from finding a new person. What we've seen is that the magazine has huge...

DOONER REFINES McCANN-ERICKSON
October 6, 1997... McCann-Erickson CEO John Dooner updates charter for leading global ad agency with new structure for ad network and expanded marketing communications company. Dooner expects newly created McCann-Erickson Communications to reach $16 billion by the...

DREAMS-WATCH OUT
October 6, 1997... DreamWorks' summer 1998 release of Small Soldiers is getting rave reviews. "It is the best thing I have ever seen. It could be one of the best ever," said a toy industry executive.

BOOKING OUT
October 6, 1997... Book-of-the Month Club, a prestigious $10+ million direct marketing account, is in the final stages of a review. Incumbent: Ogilvy. Bronner Slosberg, Grey Direct and one other agency are pitching the account. "It is a very prestigious account in...

FOR PETE'S SAKE
October 6, 1997... Interesting turn of events at Pete's Wicked Ale brewery. Stroh, which owns 15% of the hip micro-brewery, could be increasing its position. With addition of Hunter Hastings to Pete's board, some old ties are rekindled. Hunter formerly served as...

SPORTS ILLUSTRATED REVAMP
October 6, 1997... Corporate shake-up at Sports Illustrated magazine. Publisher Dave Long shifted to President of Time's corporate sales unit as President of MNI. Top SI position unfilled. Jim Graham, who previously headed Time's corporate sales is also being moved...

MITSUBISHI OUT DRIVING?
October 6, 1997... Where there is smoke, there is usually fire. Industry observers point to a possible falling out between Mitsubishi and Grey over $100 million ad account. Grey had set up G2 unit, a dedicated office to handle auto account but sources report...

PEPSI PRETTY
October 6, 1997... With departure of Brenda Barnes from top spot at Pepsi (FMR exclusive 4/97), look for new top executive Phil Marineau to stay involved in operations. "There won't be any real changes in advertising. Brian Sweetie will continue to run that but...

Ad Libs:
October 6, 1997... Consultant Dick Roth reportedly has an assignment, report ad agency sources. American Stock Exchange has parted ways with Merkley Newman Perry and is out talking to ad agencies to handle its $8-10 million ad assignment. Sony Records is out...

GAP UNLEASHES MAJOR TELEVISION AD DRIVE
October 20, 1997... The Gap will significantly increase ad spending in the next 18 months with a series of integrated marketing efforts targeted to refine its ad message, said Senior Vice President Marketing Michael McCadden. The $100 million+ blitz integral effort...

IT'S NOT THE OLD RADIO SHACK ANYMORE
October 20, 1997... Senior Vice President Marketing Dave Edmondson moves into second gear on marketing drive to elevate Radio Shack as primary destination. Effort underway with telephany effort centered around Jetsons designed to attract women consumers into stores....

PHILIP MORRIS - A HOUSE DIVIDED
October 20, 1997... There has been a great deal of speculation recently about the future look of Philip Morris. The future of the global/domestic tobacco, beer and food businesses have been scrutinized internally with an eye on what the company will look like in the...

MEN'S HEALTH FLIES FLAG HIGH
October 20, 1997... Worldwide Publisher Jeff Morgan nudges rate base up 11.5% domestically to 1.45 million effective January 1998 issue. "We're raising the rate base to keep up with our numbers. We've been delivering a high number for some time," he added. Men's...

MITSUBISHI TRAIL STILL WARM
October 20, 1997... Dealer ad review pre-cursor to major changes at domestic arm of Mitsubishi. Mitsubishi has written off $1 billion in the American marketplace in past year. Pending deal by national ad agency Grey Advertising to buy local dealer Zimmerman agency...

GMG PULLS IT TOGETHER FINALLY
October 20, 1997... Grand Met and Guinness merger into new company-GMG Brands-moves into full gear. Changes underway as London management late last week realigned its U.S. distribution system. One piece of the puzzle makes little sense-timing. News has leaked out...

TRICON GETS COOKING
October 20, 1997... Following spin-off from PepsiCo, top management at Tricon seems to be reenergized. Top brass of Taco Bell, KFC and Pizza Hut have met recently and top brass reading off the same pages together for the first time. "The three companies are moving...

OFF AND RUNNING
October 20, 1997... Creation of National Thoroughbred Racing Association (NTRA based in Lexington, Kentucky) interesting development in sports. Ad account in review (BBDO, Richards Group, D'Arcy Masius Benton & Bowles/Los Angeles and Merkley Newman Perry) finalists...

CLOCK TICKING AT PUBLICIS
October 20, 1997... Business plans for Publicis CEO Maurice Levy expected to toughen in next few weeks. Pressure from 1) changes in Publicis' accounting procedures; 2) moves by global client Nestle and 3) unease from family controlling interests. Publicis has had...

GENERAL MOTORS REVS UP
October 20, 1997... The success of the new brand management system at General Motors is still mixed-three brand managers have left recently and sources are divided on the success so far under General Manager Ron Zarella. Progress is not being made at the speed that...

TURNER TRANSFORMATION
October 20, 1997... The transformation of WTBS from a national superstation to a premium cable channel underway. Move expected to be accomplished by December 31st. "It's a bold yet difficult move but we expect it go smoothly. We're talking to our partners to see...

MCCANN-ERICKSON SHIFTS
October 20, 1997... The recent success of McCann-Erickson's domestic operations (mega-wins from Motorola, AT&T, MasterCard) could result in promotions for top management brass. Domestic chief Jim Heekin in line for additional responsibilities over the next 12-24...

SMART STUFF
October 20, 1997... Decision to get out of the real estate business smart move by Leo Burnett top management. Move boosts financial wherewithal of company and buys top management time to get its house in order. The decision by Leo Burnett management not to compete...

Ad Libs:
October 20, 1997... Major Advil campaign breaks in week. Major effort backed with $30 million advertising budget with heavy TV emphasis. CPC changes its name to Best Foods International. Ray Freeman back in States. Former Euro head of IBM's PC business now in charge...