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| A Primedia Property | |
| June 29, 2004 | |
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ON TODAY'S PROMO XTRA: Campbell Cuts 400 Jobs, Launches 29 Products NASCAR Rejects Diageo as Sponsor Matsui and Mets Sign With MassMutual CoActive Posts $2.6 Million Loss Eric Mower Buys PriceMcNabb Grey Shopping for a Buyer Catchphrase "You're Fired" Ignited Success of The Apprentice Woman Injured in Diamond Dig Promotion Ashley Judd to Represent New Estée Lauder Brand GameWorks Gives Away Free Comic Books Birmingham Fans Getting Free Plungers Hampton Hotels Encourages Summer Vacations Correction News Briefs Classifieds ADVERTISEMENT WANT TO REALLY DRIVE PRODUCT SALES ON SAMPLING DAY?
Top Stories Campbell Cuts 400 Jobs, Launches 29 Products By Betsy Spethmann Campbell Soup Co. will cut 400 jobs and launch 29 new products in an effort to boost sales and improve earnings. The changes are not expected to affect spending for fiscal 2005, which begins Aug. 1, 2004, but could impact marketing budgets for fiscal 2006. The job cuts are across the board and include marketing, although it's unclear how many marketing jobs will go. A sales and marketing development group is being dismantled with its handful of staffers reassigned or let go. Campbell will form a multi-disciplined strategic group to leverage consumer research. The company also will reorganize its sales force to better cover convenience-driven distribution channels, especially c-stores as well as Wal-Mart and dollar stores. In all, Campbell will cut 300 salaried jobs in North America (165 of them at its Camden, NJ, headquarters) and 100 jobs overseas. Campbell won't fill about 60 empty positions and will cut redundant jobs from its February realignment that merged U.S. soup with sauces and beverages. The cuts are less than 2% of Campbell's worldwide workforce of 25,000. With the changes, Campbell expects to boost sales 3% to 4%, improve earnings 5% to 7% and save $40 million a year. Marketing support and expanded distribution will focus on Campbell's, V8 and Pepperidge Farm as well as Arnott's in Australia; the four brands account for two thirds of Campbell's global sales. The four brands are also the platform for most new products, including Campbell's Carb Request ready-to-serve soups (five flavors, 3-to-6 grams of carbs) with promotional support via Depersico Creative Group, Havertown, PA; premium, ready-to-eat soup in resealable asceptic packaging used in France and Canada; V8 vegetarian soups, entrees and chili (for away-from-home consumption); low-sugar V8 Splash juice and Smoothies line extensions; and Campbell's Chunky Chili (four flavors, first entry into the $300 million U.S. chili category) with ad support via Young & Rubicam, New York City. Launches are slated for fiscal 2005. Campbell also will spend $65 million to double its production capacity for microwaveable soups by August 2006 and will keep significant marketing support. Separately, Campbell is expanding its gravity-feed shelving system to 8,000 stores by yearend with commitments from another 2,000 stores. The shelves have helped bump condensed soup sales and helped grocers better organize stock. Campbell has spent $600 million since 2001 on new product and packaging development, quality improvements and increased marketing support. That has improved sales across its portfolio, especially in beverages, snacks—and soup, where convenience products have helped spur sluggish sales. New lines Chunky, Select and Soup at Hand are expected to hit $250 million in annual sales by August, per Campbell. "We've significantly improved the quality of our products and packaging, restored marketing spending to very competitive levels, and rebuilt our innovation pipelines," said CEO Douglas Conant in a statement. "Our consumer insights are much better and our customer relationships are stronger" since Campbell began its turnaround plan in 2001, "However ... we're not yet where we want to be in some areas. It has taken us longer than expected to moderate the decline in condensed soup and this will continue to be a priority for us." Back to top NASCAR Rejects Diageo as Sponsor Diageo, set to pay millions to sponsor a top car racing team, was rebuffed by NASCAR, which said no to allowing a hard liquor company to sponsor Jeff Burton's No. 99 Ford. NASCAR does allow beer and malt liquor sponsors but has had a long-standing policy of not permitting spirits advertising at any of its events or as team sponsors, according to news reports. Burton, who finished fourth in the NASCAR Nextel Cup race several weeks ago in Dover, Delaware, drives for Roush Racing, one of the top teams. Calls to Diageo were not returned. Nextel Communications took over as title sponsor of NASCAR's highest profile racing series last year after R.J. Reynolds dropped its sponsorship after 30 years as the title sponsor of The Winston Cup. Diageo is the maker of Captain Morgan, Johnnie Walker, Jose Cuervo, Smirnoff, Tanqueray and Seagram's among other brands. Back to top Matsui and Mets Sign With MassMutual By Tim Parry NEW YORK—Though he now plays for the New York Mets, Kazuo Matsui is one of the most popular baseball players in Japan and the Mass Mutual Financial Group knows it. The group inked the shortstop—and the Mets—to a sponsorship deal last Thursday that makes Matsui the pitchman for MassMutual Life Insurance Co. and its Japanese subsidiary, MassMutual Life Insurance Co. of Japan.  The companies will be featured on rotating signage beyond the left field fence at Shea Stadium, with the company's name and corporate logo appearing in both English and Japanese characters—the first English-Japanese advertisement ever to be featured at Shea.
Matsui, who was a prized free agent last winter and is in the first year of a three-year contract with the Mets, will be featured in MassMutual Japan's print ad campaign in Japan as well as in its marketing materials and annual report. In addition, he will make an appearance in Japan on behalf of MassMutual Japan, whose logo also will be included on Matsui's personal Web site, www.kazuo25.com. In Japan, the MassMutual Japan logo and Matsui's image in a Mets uniform will appear on billboards and buses. "We are excited by this opportunity to team up with Kazuo Matsui and the New York Mets," said Hidezo Hirano, president and CEO of MassMutual Japan. "He is a great role model for Japanese people, especially our professional employees." Hirano was at Shea to give Matsui an honorary Samuri helmet with the MassMutual Japan logo and also threw the ceremonial first pitch that afternoon against the Cincinnati Reds. Suzanne Tougas, assistant VP for MassMutual, would not disclose the financial details, but said it is a three-year deal. The Graubard Group, New York City, handled the deal. Tougas said Springfield, MA-based MassMutual chose Matsui because of the person he is, not just his on-field heroics. "I think you can have great players and not necessarily good personalities and great work ethics," Tougas said. "He matches the quality of our employees at MassMutual Japan and I think he can really help us build our brand and further help us build our name recognition in Japan." Matsui's consecutive games streak of 1,213, including 1,143 in Japan and 70 with the Mets, was ironically broken the day the deal was announced. Tougas said the deal was more significant to MassMutual Japan, but that the U.S. aspect could be elevated over the terms of the agreement. "We would like to further enhance the brand in the Japanese market in the states, but the real concentration is on MassMutual Japan," she said. The deal did, however, have a viral effect in the New York market, thanks to the Mets decision to bench Matsui that day. During the broadcast on Fox Sports New York, when Matsui was shown in the dugout, mentions of his streak ending were followed up with news that he signed the MassMutual deal. In May, Matsui signed a similar global deal with MasterCard International. Back to top CoActive Posts $2.6 Million Loss CoActive Marketing Group reported a $2.6 million loss for fiscal 2004, due in part to a change in accounting practices. CoActive had been reporting revenue for partially completed work to the Securities & Exchange Commission, but asked the SEC to clarify that practice. Under SEC guidelines, CoActive will now report revenue only when the full contract is complete. The year ended March 31. The bulk of its fiscal 2004 loss is a $2.2 million accounting charge; the remainder is $417,000 in expected fourth-quarter business that didn't materialize. Much of that work was postponed to fiscal 2005, due in part to the United Food & Commercial Workers strike against California grocers. Great Neck, NY-based CoActive projects a profitable fiscal 2005. "We are very disappointed in our results for fiscal 2004," said President John Benfield in a statement. "We have reduced expenses and revamped our sales efforts to improve profitability. Our goal is to capitalize on our capacity to offer multi-faceted solutions to our clients using all our services and skills in an integrated fashion. We are dedicated to regaining our profitability and credibility in 2005." CoActive, a marketing, sales promotion and Internet services agency, ranked No. 26 in the PROMO 100 with 2003 U.S. net revenues of $32 million. Back to top ADVERTISEMENT Add Entertainment to Your Marketing Mix! At The L.A. Office RoadShow, hear about hundreds of entertainment marketing opportunities in Music, Television, and Film! No meetings to schedule, no driving from studio to studio... at RoadShow, just sit back and enjoy the show as each entertainment executive introduces you to their slate of upcoming promotional opportunities! Hundreds of Entertainment Opportunities. One Event to Find Them All! September 21-23, 2004 Hollywood, California (310) 275-2088 www.laoffice.com/promo1.asp Eric Mower Buys PriceMcNabb Promo shop Eric Mower & Associates bought boutique shop PriceMcNabb to form a full-service agency with six offices and revenues of $155 million. Eric Mower & Associates was drawn by PriceMcNabb's "excellent reputation in branding, retail and TV advertising, business-to-business communications and public relations," CEO Eric Mower said. That complements Eric Mower & Associates' expertise in business-to-business marketing, promotion and p.r. PriceMcNabb President-CEO Tom Eppes becomes a senior partner; PriceMcNabb's Charlotte, NC, headquarters becomes Eric Mower & Associates/PriceMcNabb and keeps its current management. Syracuse, NY-based Eric Mower & Associates ranked No. 46 in the PROMO 100 with 2003 net revenues of $18.8 million. PriceMcNabb didn't participate in the ranking. Back to top Grey Shopping for a Buyer Grey Global Group went on the block last week, reportedly hiring Goldman Sachs to shop the $1.3 billion global network, the marketing industry's last independent holding company. Word is Publicis Groupe, WPP Group and Japan's Denstu are interested; but WPP's work for Unilever would be a significant conflict with Grey's work for primary client Procter & Gamble, and WPP continues to digest its August 2003 purchase of Cordiant Communications. Publicis handles P&G work. Grey's U.S. revenues hit $547 million in 2003, with P&G work accounting for more than 10% of that. New York-based Grey declined to comment. Back to top Catchphrase "You're Fired" Ignited Success of The Apprentice By Lorin Cipolla NBC's The Apprentice is one reality show that has resonated with viewers across the country thanks to strategic promotional tactics and its dynamic front man, real estate mogul Donald Trump. To promote the second season of the show, which debuts this September, NBC will be running teasers of new footage. Marketing and promotion will resemble that of a scripted show. Brand name phrases will also be used to leverage the show's return, such as the infamous "You're Fired." Merchandising has also debuted since the launch of the first season—there are now You're Fired T-shirts and mugs and Trump has appeared in commercials for both Verizon and Visa.
Product integration will also be featured in the second season. New York Times advertising columnist Stuart Elliott, who moderated the panel discussion, grilled Trump along with Dennis Swanson, COO, EVP-Viacom Station Group and Vince Manze, president of The NBC Agency, to find out what helped make this show a hit. "It resonates with viewers because it is about something we all have—a job," Manze said. He went on to explain that NBC sold the show like a drama with Trump acting as "our own J.R. Ewing," alluding to the famed Dallas front man. Swanson pointed out that America is a star-driven society and its star, Donald Trump, propelled the show. Trump referred to himself as a "larger than life character, who leaps off the stage." As for the You're Fired moniker. Swanson said that the catchphrase served an important role in the show, "It's critical in this morass of clutter on TV—you pray that you can get a catchphrase like that." Back to top Woman Injured in Diamond Dig Promotion A woman in a race to dig for diamonds in the infield at last Thursday's Delmarva Shorebirds game was rushed to a hospital after she tripped in a crowd of gemstone-hungry mad dashers. "She didn't find jewelry, but the good thing was, she was treated right away," Nick Mirabello, Shorebirds marketing and communications manager, told The Daily Times of Salisbury, MD. The injured woman fell as fellow contest participants armed with plastic spoons charged onto the infield to dig for five boxes of buried diamonds worth $10,000, according to the report. About 150 women participated in the annual event, which was sponsored by a local jeweler. Back to top Ashley Judd to Represent New Estée Lauder Brand Estée Lauder has signed actress Ashley Judd as the spokeswoman for its new skincare and cosmetics brand, American Beauty.  The brand is set to launch in October at Kohl's department stores. A complete rollout is expected in the fall of 2005.
"Ms. Judd is glamorous, elegant, intelligent while being warm and accessible and we're confident that women will connect with her," COO William Lauder, said in a statement. Judd, 36, is married to Scottish motor racing star Dario Franchitti. She is costarring with Kevin Kline in the film De-Lovely, about American music legend Cole Porter, which opens this weekend. Back to top GameWorks Gives Away Free Comic Books This Saturday comic book stores across the country will give away comic books to promote Free Comic Book Day.
As part of the Spider-Man 2 launch, participating comic book stores, movie theaters and select retailers in each GameWorks market will distribute GameWorks Secret Identity Cards, which offer guests free game cards with undisclosed values at their nearest GameWorks location. Card holders will have until July 31 to visit GameWorks and uncover the value of their cards, which may be worth up to $150. Every card is a winner.
GameWorks is the high-tech entertainment, restaurant and bar experience where guests can eat, drink, party and play.
Birmingham Fans Getting Free Plungers Roto-Rooter Services Co. will give away 1,500 plungers at the Birmingham Barons baseball game as part of a sponsorship the plumbing company made last week with the team. Roto-Rooter's deal includes stadium signage, radio advertising, on-field promotions and the plunger giveaway night July 30, which the Barons believe is a first in minor league baseball. "The idea there was to place a product that would continue to brand Roto-Rooter's name and be in the bathrooms of 1,500 families," said Roto-Rooter VP-Marketing Steve Pollyea in a statement. "Going further, should they not be able to fix the problem with the plunger then they have the 800 number there to call to take care of the emergency." The plungers will feature Cincinnati-based Roto-Rooters logo and 800 number along with the Barons logo. Back to top Hampton Hotels Encourages Summer Vacations Hampton Hotels wants consumers to travel this summer and to visit its Web site to find the latest hotel and activity information and vacation tips. This summer, Hampton is highlighting HamptonInn.com as a planning resource and anyone who books a room online during its Get Out and Play promotion, now through Aug. 14, will receive one of three e-coupons, good for a discount at either Lands' End, Borders or Dan's Chocolates. The site also features online cartoon characters, online games and e-postcards. While online, visitors can also register and play the Get Out and Play sweepstakes instant win game for a chance to win daily drawings. Five times a day Hampton will award $250 in gift cards from top retailers and each week a two-night stay at any Hampton Inn with $300 spending money will be given away. All registrants are automatically entered in the grand-prize drawing for a $30,000 convertible. ePrize, Farmington Hills, MI handles. For more stories on games, contests & sweepsFor more stories on couponsBack to top Correction Re: Loews Cineplex Presents Jingle Contest, June 15 Loews Cineplex Entertainment partnered with Independent Film Channel, not International Film Channel, as was misreported. Back to top News Briefs FAMOUS FOOTWEAR: has been creating awareness of its new Manhattan store with a promotion involving 100 area dry cleaners. Customers picking up their clothes from the cleaners receive them in a customized dry cleaner bag with a hang tag featuring a coupon and the address of the new store, which opened in April. Some 250,000 customized bags with coupons are slated to be given away this month. In a previous promotion used to generate awareness for the New York store, living mannequins stood atop five-foot pedestals set up in Penn Plaza in New York City clad only in body suits and the season's hottest footwear. GMR Marketing, Milwaukee, handled both promotions. KLUTZ: creator of activity products for kids, has launched a Summer Boredom-Busters promotion that runs from now through July 31. Consumers who buy any two Klutz activity books will receive a coupon redeemable for two free tickets to a movie of their choice. DISCOVERY KIDS: will give children visiting Applebee's restaurants this summer a Discovery Kids activity booklet and collectible plastic cup themed with Kenny the Shark and Tutenstein, characters from Discovery Kids' real world animated series known as RealToons. The partnership runs through September. EastWest Creative, New York City handles. RADIO DISNEY: and Music Choice have partnered to bring Radio Disney programming to digital cable and satellite TV homes and cable-modem subscribers beginning July 7. Back to top ADVERTISEMENT When was the last time you gave away the chance to win $1,000,000? Find out why national and international brand name companies and agencies use IC Group's Prize Insurance to create IMPACT with their promotions while maintaining a FIXED BUDGET. Click Here to receive your FREE information package and do MORE with less today! IC Group, Inc.—All the impact and security you're looking for in a promotion! Call us at (800) 575-5590 for more information. SAVE 10% TO 100% OF YOUR PROMO ADVERTISING EXPENSES!
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About This Newsletter Editorial Director: Kathleen Joyce Senior Editor: Betsy Spethmann Managing Editor: Patricia Odell Associate Editor: Tim Parry Senior Writer: Lorin Cipolla Feedback should be sent to: Kathleen Joyce TO FIND OUT HOW YOU CAN SPONSOR PROMO XTRA!, PLEASE CALL ALAN STEEN AT 203-358-4191. E-MAIL HIM AT: asteen@primediabusiness.com GET YOUR OWN COPY OF PROMO XTRA! If you're a pass-along reader, information could be passing you by. Get your own FREE subscription to PROMO XTRA! by clicking on the link below or copying and pasting to your Web browser. PROMO XTRA! is a free e-mail service from PROMO magazine. Please forward this e-mail to as many of your colleagues as you like. They can receive their own free subscription by clicking on the link below: Subscribe To unsubscribe click here: Unsubscribe |
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