5 Blogs Before Lunch

China's Spring Airlines To Offer "Standing Room Only" Fares?

How low can airlines go before passengers just give up?

It must be quite a challenge for marketers to have to advertise a constant DECREASE in service to customers while airline ticket costs continue to rise.

It seems relatively easy to market a product when you are adding special features and services to customers, but how do you sell the concept of "get less for more money" to consumers?

The only marketing position that comes to mind is the idea of "a la carte" flying--the idea that the world of full-service airline travel has changed forever--and get used to it.

Welcome to the world of pay-for-play travel.

Pay-up or take the bus.

First there were fees for security, fuel surcharges, baggage, additional legroom and even food. Airlines have floated the idea of charging passengers by weight, and Ryanair announced they were thinking of charging for the use of toilets on planes, and asking passengers to self-load their luggage into the belly of the plane to help reduce the cost of baggage handling (both ideas presumed to be for promotional-hype only).

What's next? A fee for a seat?

Well, yes.

China's Spring Airlines says it has been considering the concept of selling "standing room only" fares since the beginning of the year to accommodate a surge in passenger volume.

While a representative for the airline claims that the new method is "just like bar stools," it could allow for 40% more passengers and cut costs by 20%, while lowering airfare for consumers.

The idea, apparently, has been floated around for some time. Back in 2006 it was reported that Airbus had been quietly pitching the standing-room-only option to Asian airlines.

Passengers in the standing section would be propped against a padded backboard, held in place with a harness.

What's next, a fee for flying while inside the plane?

"Our base fare is for wing-seating only. If you'd like to sit in the main cabin, our rate is..."

Graphic source: The New York Times

Aston Martin Develops Sub-Compact Car For "Zipping Around Town"

Aston Martin is a car company known for its uncompromising luxury, power, and design.

It now wants to build a new compact car based on that brand DNA.

Partnering with Toyota, Aston Martin has announced its new "Cygnet" which the company calls a “luxury commuter concept.”

The car will be based on Toyota's iQ city car, which Toyota began selling in Japan and Europe late last year.
So why would Aston Martin dive into the sub-compact market?

Apparently they're seeking to capitalize on a niche within a niche market--the high-end luxury marketplace of individuals who own a fleet of cars--including at least one small car for zipping around town.

“This concept — akin to an exclusive tender to a luxury yacht — will allow us to apply Aston Martin design language, craftsmanship and brand values to a completely new segment of the market,” said Dr. Ulrich Bez, Aston Martin’s chief executive, in a news release.

Incidently, The name Cygnet, means "young swan"

Source: The New York Times

Thieves Steal Christian Audigier's new Champagne From Launch Party

Christian Audigier has been associated with the success of iconic fashion brands such as Diesel, Von Dutch and Ed Hardy (among others).

He was said to be collaborating on a new line of clothing with music legend Michael Jackson before his death, and rumored to be the next lessee of the house where Jackson died last week. Apparently, he's also teaming up with Madonna on a clothing collection aimed at "seven-year-olds to 77-year-olds" called The Material Girl Project.

Also last week (if all of this wasn't enough), Audigier premiered a new brand of Champagne at London's Movida nightclub.

What could have been a well-orchestrated and proper global brand launch turned salacious when the cases of Audigier's Grand Cru and Rose Champagne were stolen from the venue--scuppered or nicked as the British say.

The whole lot stolen just hours before they were to be unveiled!

Attendees of the event had no Champagne to drink, but thankfully Audigier is also a maker of wine (not of the sparkling sort) and plenty was on hand to whett the palettes of the party attendees.

Crispin, Porter + Bogusky Creates "Giant Digital Fishing Net"

 Ad agency Crispin Porter + Bogusky has created a promotional gathering place on the web. The site contains news and promotional items about the agency, their clients--and as a video from agency prinicpal Alex Bogusky states: "the good, the bad--the mildly unnerving."

The site features Twitter posts, News and Blog content--anything that mentions the agency and its work, in a newfeed environment. It also features client's TV spots under tabs for Microsoft, Burger King, Old Navy Domino's, Coke Zero, Guitar Hero and Hulu.

While it feels incredibly self-indulgent on CP+B's part (I mean REALLY self-indulgent), I have to admit, it is a fun site to explore, reminding me of what a creative agency is all about.

The site appears to be in beta (not yet publicaly announced) but is publicly available at http://beta.cpbgroup.com/ and should be accessible at www.cpbgroup.com in the future.

Levi's: Go Forth

Levi's has, over the years, commissioned some of the most innovative, entertaining and strategically brilliant advertising campaigns in the industry. Thanks (primarily) to agency Foote Cone + Belding (San Francisco) and later BBH, we've been treated to some great advertising--with a subtle sexiness that has become Levi's trademark.

Now it is time for Wieden + Kennedy Portland to take a swing at Levi's. It recently introduced a a new campaign titled Go Forth, which draws on the brand's heritage as the quintessential American jeans, and targets the next generation of twenty-somethings (Levi's core target).

From Stuart Elliott of The New York Times:

The campaign is meant to buff the image of the Levi’s brand as much as sell products like 501 button-fly jeans. The hope is that “Go forth” will resonate with young America today the same way that campaigns like “501 blues” and “501 U.S.A.” successfully appealed to a generation two decades ago.

The “Go forth” campaign is replete with Americana imagery, in keeping with research indicating that teenagers and 20-somethings are patriotic and optimistic about the United States. Those elements include the poetry of Walt Whitman, flags, paeans to the pioneering spirit, declarations of independence, salutes to hard work and, in the star-spangled tradition of Madison Avenue, copious amounts of nubile flesh.

Here's Creative Review's summary:

The campaign will run across TV, print, and digital (with the website launching tomorrow) and, according to executive creative director Susan Hoffman, wants to pay homage to Levi's history, "but also to refresh and reinvent the idea of a pioneering spirit for the times in which we live". These times are of course that of a recession and the spots feature a manifesto suggesting that one of the answers is to abandon suits and make a return to good ol' fashioned hard graft (presumably done while wearing Levi's jeans) – "I am the new American pioneer, looking forward, never back," it states. "No longer content to wait for better times... I will work for better times. Cause no one built this country in suits." The two TV spots continue in a similar vein, featuring works by US poet Walt Whitman.

Microsoft Pulls Vomit Ad--Deemed Distasteful

Microsoft has pulled an online ad for its browser Internet Explorer 8, which featured a woman vomiting several times.

The ad was deemed...distasteful, by consumers. (apologies for the pun).

The ad features actor Dean Cain who explains how IE8 can wipe-away browsing tracks to avoid others from seeing a user's web surfing history.

The offensive part of the ad comes in the rather graphic demonstration of the results of a wife, using her husband's computer, who inadvertently finds a site in the browsing history and finds it so disturbing, she vomits on the floor.

Her husband slips over on her vomit and she proceeds to vomit all over him while Cain steps into the foreground and tells viewers that the woman is suffering from "OMGIGP" or "Oh My God I'm Gonna Puke" syndrome.

For those who are interested, here's a link to the offending ad:

Gap Hires Crispin Porter + Bogusky To Run Its Holiday Campaign

Last year, Gap brand Old Navy hired Crispin Porter + Bogusky to revamp its brand to focus on Moms (from its previous teen/twenty-something target). By most accounts, the campaign has seemed successful.

Now CP+B gets a chance at marketing the mother ship--the Gap brand.

Reports are that the agency will handle the flagship brand's holiday campaign. This is the first time in seven years that Gap will bypass agency of record Laird & Partners, New York, for the all-important seasonal push.

And, they made the decision through a review process--with as many as ten agencies participating, including Laird & Partners and Campbell-Ewald.

Here's AdAge's take on the shift:

Independent Laird & Partners, New York, has been Gap's creative agency of record since 2002, when it was selected to handle print and TV advertising amid a 21-month decline in same-store sales at the retail giant. The agency has done some well-regarded work for the retailer, but monthly same-store sales, after rebounding temporarily in 2003 and 2004, have lagged again in recent years. The retailer is now in the midst of a 13-month sales decline.

The decision is a blow to Laird & Partners, a boutique shop that primarily counts fashion and luxury brands among its clients. Trey Laird, CEO and chief creative, could not be reached for comment. It's not clear whether the shop, which has been Gap's agency of record, will retain that position or be invited to participate in future campaigns.

Here's a few Gap holiday ads from years past:

Subway Ad Featuring Michael Phelps To Debut

A few months back, Olympic swimmer Michael Phelps was caught up in controversy following the publication of an embarrassing photo of the star taking a bong hit at a party.

Phelps lost his Kellogg's endorsement deal as a result.

But Subway kept its sponsorship pact with Phelps, and this weekend marks the launch of a new television campaign featuring Phelps, alongside longtime Subway pitchman Jared Fogle.

Adweek reports that the ad, titled "Be Yourself," is designed to play up how easy it is to personalize sandwiches at Subway and provides a humorous contrast between the lifestyles of its two stars.

This 4th of July, Sales of Hot Dogs Are Up, Fancy Sausage Sales Down

Maybe it is due to economic factors, maybe it is a return to traditional, patriotic themes, but sales of hot dogs have been going up in recent months while sales for the more expensive bratwurst and knockwurst sausages  have been declining.

This, according to data from research from Nielsen who say this is a reversal of sales trends from the past several years.

The Nielsen study shows that until recently, purchases of bratwurst and knockwurst have been growing. However, sales of the fancy sausages have fallen by 6.7 percent over the past two months, compared to the same period last year, while the report notes that sales of hot dogs have seen a marked increase during the same two months, increasing 3.7 percent.

Source: Brandweek

25 Years On, Twiggy Returns To Olay Ads To Show She's Still "Got It"

Here's a little bit of marketing genius.

In 1985, P&G hired 1960's supermodel Twiggy to be the face of its Oil of Olay anti-aging cream. Now, 25 years later, proviing that she's still "got it" the company has hired her to be the spokesperson for Olay Definity.

The first ad campaign, which targets women aged from about 50 to 65, will run in the UK.

 "We we thrilled to welcome Twiggy back to the brand," says Sarah Clarke, spokesperson for Olay Definity. "She is a true beauty icon who continues to be an inspiration to millions of women across the UK."

"Some of our consumers will remember Twiggy's first campaign," said Carla Berry, P&G beauty and grooming spokeswoman. "But what is most important is that she is a relevant role model for mature modern women today."

Sources: The Guardian and Stylist

Very-American Themed Brand Polo Ralph Lauren To Continue Working With U.S. Olympic Association

Polo Ralph Lauren was the official outfitter for the U.S. team at the 2008 Summer Olympics in Beijing.

And, it looks like the association was a good fit.

The U.S. Olympic Committee (USOC) has announced that Polo Ralph Lauren will continue as an Official Outfitter of the U.S. Olympic and Paralympic Teams for the 2010 and 2012 Games.  The very-American themed brand will be designing the official Opening Ceremony and Closing Ceremony Parade Outfits for the U.S. Teams for both the 2010 Olympic and Paralympic Winter Games in Vancouver and the 2012 Olympic and Paralympic Games in London.

Not surprisingly, the clothing will showcase a classic Americana and patriotic palette of red, white and blue. 

It is clearly a good match for both organizations, which often play to historic references and patriotism.

To play-up the association, apparel from the entire Polo Ralph Lauren U.S. Olympic and Paralympic Team Parade Outfit collection will be available for sale, along with a full assortment of the athlete village wear pieces for men, women and children, in Polo Ralph Lauren retail stores, Ralphlauren.com, USOlympicshop.com, U.S. Olympic Shops and exclusively at select department stores.

Luxury Marketers Are Embracing Social Responsibility and Eco-Friendly Brand Values

A growing number of luxury goods companies are touting their social responsibility strategies and weaving environmental themes into their advertising and marketing.

Lexus has a $100,000+ Hybrid vehicle. LVMH Moët Hennessy Louis Vuitton recently took a stake in Edun, an organic-clothing company founded by the singer Bono and his wife. Tiffanny & Co. is touting its efforts on behalf of coral reefs in store windows, and Barneys New York is marketing a line of sneakers constructed partially with organic material.

The Wall Street Journal suggests this new strategy is based on the the bad economy and a fundamental, generational shift in affluent buyer's world view. The savvy marketers are changing with the times, with financial necessity as the clear motivating factor.

We are seeing a generational shift, with the rise of younger shoppers who more often consider their impact on the environment than do traditional luxury-goods buyers.

The WSJ reports that the Luxury Institute, a New York research firm, found that younger and more-affluent consumers seek information about corporate social responsibility more actively than their older and less well-off counterparts. "Young consumers believe that caring about the environment is how you create a meaningful life," said Milton Pedraza, the firm's CEO.

Here are three campaigns as example of how companies are embracing these new themes (both from the WSJ):

LVMH's Louis Vuitton leather-goods brand launched a "Core Values" ad campaign that has featured tennis player Andre Agassi, rocker Keith Richards and, most recently, astronaut Buzz Aldrin. The ads have emphasized the company's support for the Climate Project, and the celebrities appearing in them have donated at least part of their modeling fees to the nonprofit group, which was founded by Al Gore.

This fall, luxury menswear label Ermenegildo Zegna will begin selling an "Ecotech Solar" jacket under its Zegna Sport label, with solar panels on its sleeves that can be used to recharge a battery and heat up the jacket's collar.

Last month, upscale retailer Barneys New York began promoting a collection of $75 sneakers with uppers and linings made of organic material. The sneakers were designed by organic-clothing brand Loomstate in a partnership with Keds.

Brinks Home Security To Abandon Well-Established Brand Name

Perry Brink started a cartage business in Chicago in 1859, evolving it into one of the most well-known brands in history. When you see a "Brinks" truck delivering or picking up money at a business, you think security, confidence and trust.

The brand successfully was transferred over to their home security business starting in 1983.

But now, the company is abandoning the Brinks Home Security name as part of the spinoff of Brink's Home Security Holdings from its parent.

The company will change its name to Broadview Security. The brand created by Landor & Associates.

To make the transition, Brink's Home Security is embarking on a two-year, $70 million to $120 million marketing plan to rebrand as Broadview Security. As part of its transition, the new company is employing the tagline, "The next generation of Brink's Home Security."

They've got quite a challenge in front of them. Trying to transfer one of the most well-known brands in the business to a different name is a Sisyphean task.

Sources: Adweek and Advertising Age

The Aflac Duck and Risk Management: 'no guts, no glory,'

In a recent Q&A with The New York Times, Aflac CEO Daniel P. Amos discussed how risk management can be as much about identifying a good gamble as it is about avoiding bad ones--like adopting the company's famous duck mascot.

"The duck is a good example of being aggressive," he says. "To make fun of your name is something that's kind of scary, but I thought it might work. It was a hard decision, but I finally decided, 'no guts, no glory,' and we needed to try it."

Will The Wall Street Journal Charge For Its Mobile App?

The folks at The Wall Street Journal just can't seem to agree on a pricing strategy.

Ever since News Corporation purchased the venerable newspaper, pricing announcements have had the paper going free to online viewers, then back to paid.

Rupert Murdoch, head of News Corp, has recently been urging newspapers to begin charging for their online content. He's quoted as saying "People are used to reading everything on the net for free, and that's going to have to change."

In April, News Corp launched an iPhone application that was free to mobile users, while they still charged $100+ for subscriptions to the online or print versions. And now comes rumor of a micropayment scheme (i.e. pay per article) for mobile users as well.

The online edition has over one million subscribers, and the iPhone app has been downloaded more than 300,000 times during the first three weeks of availability.

Now someone at the company has came up with the idea to let the public decide the pricing of the mobile app.

The company is asking iPhone and Blackberry users if they would be willing to pay a subscription to access the mobile version of the paper. Mobile users were asked to complete a survey through their phones, which asked "If full access to Mobile Reader required a paid subscription, how likely would you be to subscribe?".

Brand Republic reports that The Wall Street Journal has not released the results of the survey. And there's no word as to whether they'll pay any attention to it.

Karl Malden Passes Away at 97. Here's Hoping He Didn't Leave Home Without It

Karl Malden, accomplished stage and screen actor, died at the age of 97 today. He won an Academy Award, and was known to many for his work on "The Streets of San Francisco."

But I'll remember him as the spokesperson for American Express Travelers Cheques that made the tagline "Don't Leave Home Without Them" an iconic advertising theme.

Air New Zealand Video Teaches The Naked Truth About Airline Safety

In-flight safety videos typically leave a lot to be desired.

Air New Zealand’s new video leaves only a little to the imagination.

Launched this week, the video (and accompanying ad) feature flight attendants, pilots, and baggage handlers clad only in body paint.

It takes a moment or two to realize that the models are naked-'cept-for-some-paint, as the body art is designed to look like their uniforms.

It is cheeky, fun, and informative.

Nice work Air New Zealand.

Source: The New York Times

Here's the video: And the "Making of" video:

Starbucks Unveils New Food Menu

Starbucks has made major changes to its food offerings over the last several months, and today they're ready to finalize the big push to healthier food offerings with a raft of new items.

The company has been overhauling its menu over the last several months, with oatmeal, naturally sweetened baked goods, and smoothies with protein and fiber. Oatmeal, in particular has been a big hit.

Today, Starbucks is announcing that they have overhauled 90% of its bakery case.

The company is announcing the shift in newspaper ads in The New York Times, The Wall Street Journal and USA Today.

From Advertising Age:

"There are few things good enough to go with Starbucks coffee," says the ad, from BBDO, New York. "Luckily we now have them all in our bakery case." Starbucks has readily acknowledged that its food offerings failed to stand up to its premium beverages, and CEO Howard Schultz has made upgrading the chain's eats a top priority.

Has OK Magazine Crossed The Line of Bad Taste With Deadthbed Photo of Michael Jackson

OK Magazine reportedly paid $500,000 for exclusive U.S. and U.K rights to a photo of Michael Jackson taken as he lay dying while paramedics attempt to resuscitate him using CPR.

After buying the photo, they decided to put it on the cover its Michael Jackson Tribute issue (a 132-page glossy that is scheduled to be on sale for a month).

Now, fans of the King of Pop are up-in-arms over the "tribute" and have launched a petition to encourage the magazine to stop selling further copies of the magazine.

Sarah Ivens, editorial director at OK!, told MediaWeek.com that she thought the dying Jackson photo would differentiate OK! from the other magazines running tribute issues this week.

Hello magazine, OK!'s rival, is also running a Michael Jackson tribute issue this week, but its cover image is of the star waving goodbye in a shot taken a few years back.

Sources here and here.

One Sexy Calvin Klein Billboard Replaces Another in NYC's SOHO District

A couple of weeks ago, I posted about the Calvin Klein Jeans ad in New York's SOHO that some called pornographic.

Well, it seems the ad has been replaced.

Were the Calvin Klein folks shamed into replacing the ad? Did they feel they got their first 15 minutes of fame, and decided to try for another round of media talk about the billboard (by replacing it), or was this simply a case of standard ad rotation?

You be the judge, because the clothing manufacturer is not making public statements.

Here is the first billboard that caused all the hub-bub:

And here's the latest ad, raised above SOHO last week:

The Shuttering of Vibe

Quincy Jones founded Vibe magazine in 1992 (in partnership with Time Warner). It was an urban-music magazine that enjoyed significant success through the 90's.

The Wicks Group (a private equity firm) bought the magazine in 2006, and has now decided to close the magazine citing reduced advertising revenue. The publishing group had, in recent times reduced its publishing frequency, cut salaries and moved employees to a four-day workweek to save money, but it apparently was not enough to save the magazine. 

From the NYT, Steve Aaron, chief of the Vibe Media Group wrote a note to staff:

“The print advertising collapse hit Vibe hard, especially as key ad categories like automotive and fashion, which represented the bulk of our top 10 advertisers, have stopped advertising or gone out of business,”

Sources: The Daily Finance and The New York Times' Media Recorder

Michael Jackson, Farrah Fawcett, and Ed McMahon Used Madison Avenue To Build Their Iconic Status

We lost three superstars in the last couple of days. Michael Jackson, Farrah Fawcett and Ed McMahon were all cultural icons.

Helping to create this iconic status was, of course, the entertainment industry. However, the advertising industry had a big hand in helping form these entertainment brands as well.

Michael Jackson will always be remembered for his Pepsi commercials--spectacular event TV, that showcased his music and dance. One could say the King of Pop was also the King of Soda Pop. Jackson recreated his hit Billie Jean in one ad and Bad in another for Pepsi ads created by agency BBDO

"He (Jackson) really set the bar for the corporate world to embrace pop music," said Ryan Schinman, CEO of Platinum Rye Entertainment.

Ed McMahon was a pitch-person for a variety of advertisers, not-the-least-of-which was for American Family Sweepstakes and Publishers' Clearinghouse. Sadly, he may also be remembered for his Super Bowl ad in February when he appeared with MC Hammer to promote Cash4Gold--two icons, down-on-their-luck, pitching for cash--not fame.

Fawcett applied her sex-kitten image to ads for Noxzema shaving cream with NFL great Joe Namath, an ad for the Mercury Cougar, Ultra-Brite toothpaste her own line of shampoo by Faberge.

These relationships were of course mutually beneficial to both the superstars, and Madison Avenue.

Jackson, Fawcett, and McMahon grew fan bases and kept their brands in the public eye, at the same time building trusted brand relationships between fans, and colas, shampoos, cars and toothpaste.

More at USA Today on Jackson's Pepsi ad relationship

 

Kit Kat Produces Edible Postcards, and Wins A Cannes Lion

This week, they're handing out honors at the Cannes Lions International Advertising Festival. It is one of the most prestigious awards in the advertising industry.

One of the Lions went to Nestlé's Kit Kat and its agency JWT Japan who won the Media Grand Prix award for creating edible postcards that could be purchased at post offices and sent by consumers to Japanese students wishing them good luck on exams.

"It was a brilliant idea, flawless execution and amazing results," media jury president Nick Brien said. "They created a business model that didn't exist before."

Advertising Age reports that Kit Kat Mail was available in 20,000 Japan Post outlets, creating a new, competition-free retail channel where the product was heavily promoted in a place where there were no rival products. It was also the first time Japan Post ever partnered with a private company.

L'Oreal Guilty of Racism

L'Oreal, the global cosmetics giant, has been found guilty by a French court of racial hiring discrimination.

The court found that in 2000, L'Oreal's Garnier division recruited sales people for the Fructis Style haircare line based on skin color and cultural background.

From Brand Republic:

When the brief went out, one of the requisites was that staff should be "BBR", an acronym for the colours of the French flag and widely used to signify someone who is white and of French descent. It also wanted the women sized between 8 and 12.

L'Oreal and personnel hiring firm Adecco, which handled the racist job hunt, has been fined $41,500 (£25,500) each and ordered to pay the same amount to anti-racist group SOS Racisme who brought the suit to the court's attention.

Barclays Buys Naming Rights To Brooklyn Subway Stops

New York's Metropolitan Transportation Authority is set to sell the naming rights to subway stops in Brooklyn.

For $4 million, the names of subway stops at Atlantic Avenue, Pacific Street and Flatbush Avenue in Downtown Brooklyn will be purchased by a financial institution marketer: Barclays.

The Barclays deal ties in with the naming of the yet-to-be-completed Barclays Center, the sports arena planned as part of the Atlantic Yards project.

As The New York Times rightfully points out: "a New Yorker might wonder what’s next: Coca-Cola Presents 59th Street-Columbus Circle?"

“It’s always a question of balancing our need for revenue and our stewardship of public space,” said Jeremy Soffin, a spokesman for the agency. Advertising may make the most sense for a company associated with a station, he said, “but we’re not closing anything out.”

NYC Ad Agency Opens Doors To The Unemployed of Madison Avenue

The Emmy-award winning owner of a small New York City ad agency has opened his doors to unemployed advertising and marketing professionals.

It's not a soup kitchen, but a place that gives those seeking work a base for their activities (bring your laptop and grab an empty desk) and gives the small creative agency access to a new source of creative professionals, who are encouraged to pitch him ideas for new business. If Horn gets the work, he hires the creator to run the project.

Ariel Horn, who runs The Horn Corporation has found both a way to help unemployed ad workers in New York, and a new business model.

From NPR: "On any given day, there's a small, shifting crowd here, like a pickup basketball game. It's a community of job-seekers."

Van Halen Sues Nike over Dunk Lows Shoe Design

Eddie Van Halen is suing Nike, saying that the trademarked red, white and black stripe design found on his guitars since 1978 is also used on Nike's new line of "Dunk Lows" sneakers.

The Van Halen camp say that Nike infringed on his copyright without "consent, approval or license."

Van Halen is looking for general and punitive damages, all profits arising from the sales of "Dunk Lows" and a permanent injunction halting production of the shoes. They're also asking for "the impoundment and destruction of all footwear."

But this is not just about similarity between shoes and guitars. Van Halen recently launched his own line of men's high and low top sneakers, featuring the Frankenstein design.

Source: Spinner and NowPublic

Can New Balance Get Away With a "Made in the U.S.A." Campaign When 75% of Its Shoes Are Made Outside the U.S.?

Over the years, brands have used a "Made in America" messaging strategy to tug at the nationality heartstrings of consumers. The concept works well when there is a collective concern over the loss of American jobs to oversees manufacturers.

Shoe maker New Balance has created a multiplatform campaign to showcase its U.S. production facilities at a time when the country continues to lose manufacturing jobs.

The problem is, the company only makes 25% of its footwear in the U.S., so it's not clear whether the effort will resonate with the public.

From Advertising Age:

New Balance does run the risk that consumers will view the campaign as disingenuous. After all, 75% of the company's footwear is produced outside the U.S., although that compares with 100% for most other U.S. footwear companies. And eagle-eyed consumers will note some New Balance products are labeled "Made in America," while others are tagged "Assembled in America." New Balance said the bottom line is that its U.S. operations allow for 1,300 manufacturing jobs in Maine and Massachusetts. Globally, the company employs about 4,000 people.

Guest Blogging at Cisco WebEx's "Ideas in Motion"

I'm guest blogging today over at Cisco WebEx's "Ideas in Motion" blog. My topic: How to improve communication: Shower people with humanity.

Calvin Jeans Ad in NYC's Soho: Pornography; Fashion Ad; or a little bit of both?

You may have heard that a recent Calvin Klein Jeans television ad was banned in the United States. (psst, see it here).

So how did a similar-themed outdoor ad make it to filling-up the skyline around Lafayette and Houston streets in the Soho district of NYC?

The ad for the company's Spring/Summer 2009 campaign, has apparently been called "borderline pornographic."

When asked for comment, a Calvin Klein spokesperson told wcbstv.com the "intention was to create a very sexy campaign that speaks to our targeted demographic."

Well done, Calvin Klein.

Source: AOL's Morning Rush, The Sylist

Green Washing? Kmart Slapped by FTC Over Biodegradability Claims

The company famous for its Blue Light Specials got a Red Light from the FTC on its Green advertising and products.

The Federal Trade Commission (FTC) has charged Kmart, along with Tender Corporation, and Dyna-E International with making false and unsubstantiated claims that their paper products were “biodegradable.”

The FTC announced the cases last week in testimony before the U.S. House Subcommittee on Commerce, Trade, and Consumer Protection of the Committee on Energy and Commerce.

The FTC charged the retailers with making deceptive and unsubstantiated biodegradability claims: Kmart Corp. called its American Fare brand disposable plates biodegradable, Tender Corp. called its Fresh Bath-brand moist wipes biodegradable, and Dyna-E International called its Lightload brand compressed dry towels biodegradable.

The FTC says that in order to call something "biodegradable" the product will need to be able to completely decompose within a reasonably short period of time under customary methods of disposal.

In the three complaints announced today, the FTC alleged that the defendants’ products typically are disposed in landfills, incinerators, or recycling facilities, where it is impossible for waste to biodegrade within a reasonably short time.

"For the marketplace to thrive...companies must compete on the basis of legitimate advertising claims and consumers must be able to rely on those claims," James A. Kohm, associate director of enforcement for the FTC's Bureau of Consumer Protection told a congressional subcommittee.

The Fight Over A Reebok-sponsored NBA Player's Nike Tattoo

Marcin Gortat of the NBA's Orlando Magic has a shoe contract with Reebok.

So, the shoe company was non-too-thrilled to discover that Gortat had a tattoo on his lower right leg...a Nike tattoo (Reeboks chief competitor).

Representatives of the company found out about the tattoo from a photo in a newspaper of his Michael Jordan/Nike logo tattoo on his lower right leg.

So did Reebok rescind his contract? Ask him to have the logo surgically removed?

No, they asked him either to wear higher socks to cover up the tattoo, or to apply makeup so it will not be noticed...at least through the rest of the NBA Finals.

Given the fact that the reason Reebok has a contract with Gortat (a relatively unknown NBA player) is so he promotes THEIR brand, not their competitors, this seems like a logical request.

However, the NBA sophomore is having nothing of it.

It seems Gortat believes that the tattoo has helped him get to the NBA--somewhat of a good-luck charm, and he's not happy about being asked to hide it.

From Fanhouse:

"I've been wearing it 4-5 years now, and it helped me get to the NBA," said Gortat. "They didn't say anything about it when I signed the contract, so it's not going anywhere. I don't think they are paying me enough to take it off.''

"I've heard from other people that even other players, if they don't know my name, they know I'm the big white guy with the Jordan tattoo,'' he said. "I like that. Reebok will have to get used to that.''

Looks like Reebok may want to consider tattoo-checks before they sign their next athlete.

Febreze, Dasani, Scion: The Man Who Made it All Up (Lexicon Branding)

GM to Sell Saab To Swedish Sportscar Company Koenigsegg

Saab, the iconic Swedish car company that has been under the hand of General Motors for the last XX years, has reportedly been sold to Swedish luxury sports carmaker Koenigsegg and a group of Norwegian investors.

General Motors has been trying for months to find a buyer for its Swedish Saab unit. The bancruptcy of GM may have been the push it needed to unload the car company. There are reports that GM had been in talks with two or three bidders in the past weeks.

Here's The Wall Street Journal/Dow Jones Newswire's take on the match-up:

With the industry suffering from significant overcapacities in what has proved to be its most dramatic crisis since the World War II, analysts remain puzzled over Koenigsegg's plan given that Saab's rivals enjoy much larger economies of scale and are backed by relatively cash-strong parent companies. Apart from their Swedish heritage, Koenigsegg and Saab appear to be unlikely bed fellows.

Koenigsegg Automotive was founded in 1994 by Christian von Koenigsegg, a 22-year-old auto enthusiast, and delivered its first vehicle, a Koenigsegg CC 8S, to a customer at the Geneva Motor Show in 2002, according to its Web site. Christian von Koenigsegg, now in his late thirties, remains as chief executive.

Koenigsegg employs just 45 full-time workers, including seven engineers, four research and development personnel, five pre-assembly workers, three engine-assembly staff and 14 final assembly workers, manufacturing just a handful of cars a year. Its headquarters near the southern city of Angelholm are a cluster of buildings formerly occupied by the Swedish Air Force, and where a runway doubles as a landing pad for well-heeled customers and a test track for the super-fast cars.

"Leading Your Way Out Of The Recession": David Allen Ibsen on the Big Think

Big Think, a global forum "connecting people and ideas" recently posted an article I penned on how to succeed during the recession. The headline: Leading your way out of the recession."

The big idea: This is no time to be a follower. It is a time to lead.

Check it out here.

Missouri Family's Christmas Card Photo Ends Up in an Ad--In Prague.

When an image of Woody Allen was used on an American Apparel billboard without his permission, he sued and eventually was awarded $5 million.

When a model for a Taster's Choice found out his image was being used on the labels of coffee jars in 121 countries without his permission he sued and was awarded $15.6 million (the case is now on appeal).

But what are you to do if your family's Christmas card photo end up in the Czech Republic, splashed across a huge storefront advertisement?

Well, if you are Danielle Smith from Missouri, you shrug it off.

Yes, this is apparently a true story of a family snapshot, sent to family and friends, posted on a personal blog and a few social networking sites that somehow, someway, ended up in the window of a store specializing in European food--in Prague. A friend of the Smiths reportedly saw the image, snapped a few pictures and sent them to Smith.

Smith said the photo wasn't used in an unseemly manner, it was just used to tell potential shoppers about the store's delivery service. The shop owner says he got it "on the Internet" and he now has plans to remove it.

Source: Daily Telegraph/AP

Crispin, Porter + Bogusky Buys Sweden's Daddy

Crispin, Porter + Bogusky is acquiring Swedish digital shop Daddy.

"Over the past couple of years, not having overseas capabilities has dinged us with potential clients," says Co-Chairman Alex Bogusky in The Wall Street Journal.

CP+B already has service offices in London, Spain and Germany, but will consider Daddy (renamed CP+B Europe) its "creative hub and factory."

Daddy has 50 employees and has clients that include H.J. Heinz, Autodesk, Philips, and the Scandinavian airline SAS.

It is our understanding that Daddy has no relationship to Mother.

Bank of America's Ritz Carlton Hotel: While You're Making Green, You Can Stay Green

It seems like an interesting, but logical combination. An environmentally sensitive Ritz-Carlton, owned by Bank of America.

Yes, BofA is opening a Ritz-Carlton hotel across the street from its Charlotte, North Carolina headquarters.

The 18-story building will have a 12,000 square-foot penthouse wellness center, a street-side BLT Steak restaurant and 147 rooms including a 2,900 square-foot Presidential Suite--which we assume will be well-used as there are a lot of corporate presidents who come calling on BofA.

The folks at Ritz-Carlton call it the first luxury hotel in Charlotte. "Urbane and sophisticated yet warm and friendly, The Ritz-Carlton, Charlotte offers guests an unforgettable experience just steps from the city’s cultural heart."

It will also be the first LEED-designed new hotel in Charlotte, North Carolina. LEED certification is what makes hotels "green"--or environmentally sensitive. The hotel is  and is the first green Ritz Carlton hotel.

Source: Luxist and USA Today

"Nice People Take Drugs" Ad Campaign Seen As Offensive

A mobile outdoor ad campaign running on London buses has been pulled by CBS Outdoor. The headline, "Nice people take drugs" was deemed too offensive for public consumption.

A charity organization, Release, created the ads that were intended to spark "a realistic and honest" debate on the government's policies towards drug abuse in the UK. 

Release campaigns for changes to UK drug policy to bring about a "fairer and more compassionate legal framework to manage drug use in our society."

Apparently, it was the bus company that complained to CBS Outdoor to remove the ads. CBS Outdoor pulled the plug on the campaign and suggested Release change the wording on the ads to include the words "also" or "too" to insure minimal offence to the general public.

CBS Outdoor reportedly said Release can re-run the campaign free of charge at the end of the month if the wording is changed.

Man on the Taster's Choice Label Sues Over Rights Issues

In 1986, model Russell Christoff posed for a Taster's Choice coffee photo shoot in Canada. He gave permission for the photo to be used in Canada.

Little did he know that Taster's Choice had other plans for the photo, and that his image would end up plastered on coffee cans in 21 countries, including the Latin regions where they darkened his complexion and added sideburns so the customers would better relate to his love for the "delicious" Taster's Choice brew.

You see, it seems that the photo was tucked away into Taster's Choice archives after that first shoot in Canada, but was re-introduced in 1998 when a Nestle employee was searching the archives for just the right "Taster" to portray the brand. Apparently without consulting the model release, Nestle began using the image without Christoff's permission.

The issue ended up in court. The model initially won $15.6 million in damages but that claim was overturned as being excessive, and that it exceeded the 2-year statutue of limitations.

Now, he's back in court, arguing the verdict reversal should be reversed. It is a complicated legal matter, but one that cou;d have been solved so simply, back when that employee found that image--by simply asking the model for a new release. 

Source: Wallet Pop

Danica Patrick's Boost Mobile Ad Stirs Controversy

The fine folks at Boost Mobile have a tendency to accentuate the outrageous in their marketing. It feels apropos to their brand, and appropriate in connecting with their intended target.

Case in point: a new spot from Boost featuring race car driver Danica Patrick, and a pit-crew dressed in women's clothing.

The commercial shows Patrick getting her car serviced by a pit crew wearing skimpy tops, miniskirts and high heels. "What? You think this is wrong?" asks Patrick. "I'll tell you what's wrong. Paying extra to use all your phone's basic features."

The ad is clearly designed to be provocative. Here's one group's response to the deconstruction of gender roles in the ad:

"Trans people who saw this commercial went ballistic," wrote Monica Helms, an employee of Boost Mobile's parent company, Sprint Nextel, and "activist for the transgender community."

"Even though the commercial does not specifically make fun of trans people, out of the 300 million Americans, many will use this as another excuse to discriminate and hold back equality for Transgender Americans," said Helms.

The Wondershirt For Men by Equmen

There's the Wonderbra, and Spanx for women--undergarments designed to re-shape bodies to look fitter, and sexier.

Now men have their own "shapewear." It is called the Core Precision Undershirt, aka the "Wondershirt" by Equmen.

The Wondershirt uses a highly sophisticated-sounding HELIX-MAPPING technology that is said to improve posture, warm and support core muscles and create the appearance of a slimmer body frame (i.e. straightening out the unwanted bulges).

Of course, beauty is never cheap--even for men. The undershirts start at $89.

Here's an analysis from one "test case":

In the final husband analysis, this high-performance undershirt was great for defining pecs and abs, but make sure your love interest or roommate is nearby, because it's a two-person job to peel off. He didn't find it uncomfortably constricting, even though this was the first size medium tee he's ever worn. His post-test words: "Remember, it's a Wondershirt, not a miracle shirt."

Miley Cyrus and Max Azria Launch Clothing Line at Walmart

Pop-Ka-Ching.

That's the sound of a pop star making away with a boat-load of cash from a Walmart merchandising deal.

Walmart has teamed up with teen pop star Miley Cyrus and BCBG designer Max Azria for a new back-to-school fashion line with most of the collection of knit tops, pants and graphic T-shirts selling for under $12.

The Miley Cyrus and Max Azria clothing will be sold along with a CD Cyrus made exclusively for the retailer. Walmart is also the sole sponsor of the teen pop princess' upcoming U.S. and European tour.

Cyrus promoted her new line with a performance ata  big Walmart shareholders meeting at the Walton Arena in Fayetteville, Arkansas on June 5. The collection will debut in stores in Aurgust.

The line joins two other exclusive Walmart collections aimed at teen girls: the surfer-inspired Op and jeans by L.e.i.

Sources: The Wall Street Journal Celebrity Gossip and AP

GM to Sell Saturn To Penske

The New York Times' Dealbook is reporting that General Motors has agreed to sell its Saturn brand to Roger Penske, a major auto dealer.

Saturn had reportedly drawn 16 bidders in months-long sales process to rid GM of the brand.

The Penske Automotive Group is one of the largest dealerships in the country and will reportedly buy Saturn vehicles from GM, but is expected to eventually buy cars from other automakers like Renault, through its Samsung Motors Unit in Korea.

Penske, which owns 310 franchises around the world, already serves as the sole distributor of Daimler’s Smart line of small cars.

P&G To Eliminate Max Factor Brand in the U.S.

Max Factor cosmetics, a brand founded over 100 years ago by a Polish-Jewish makeup artist for the Russian royal ballet will no longer be sold in the United States.

Procter & Gamble, who has owned the brand since 1991 is dropping the Hollywood-associated Max Factor to focus its efforts elsewhere--primarily on its more successful CoverGirl brand.

The brand will continue to be sold in other countries around the world but will cease distribution to US drug stores and Walmart stores where P&G has been concentrating its efforts.

The brand is reportedly sold in only an estimated 8,000 US stores, compared to CoverGirl, which is sold in more than 50,000 stores.

Max Factor (the founder of the company) coined the term "makeup," based on the verb, "to make up" (one's face) and worked with the likes of Jean Harlow, Bette Davis, Joan Crawford and Judy Garland out of the Factor beauty salon near Hollywood Boulevard.

The man and the company were behind a number of innovations including lip gloss in 1930, Pan-Cake Makeup, forerunner of all modern cake makeups in 1937, and the first "waterproof" makeup in 1971.

P&G bought the brand in 1991 from Revlon for $1.5 billion.

Sources: Reuters and AP

Digg To Let Users Vote On Ads.

The 36 million users of social news site Digg will get a chance to try out a new ad platform that allows users to vote ads up and down the same way that they do with content.

Digg Ads encourages viewers to rate ads and help select which ads get more--or less exposure on the site. The new platform allows marketers to get real-time feedback on the performance on their ads.

The amount advertisers pay will be based on the popularity of the ad, the more an ad is "dugg", the less the advertiser will have to pay, the more an ad is buried, the more the advertiser is charged, eventually pricing it out of the system.

Ads will appear with the news stories in the main news flow on Digg.com, and will also have the same "look and feel" as the news stories, said Mike Maser, Digg's chief strategy officer.

The initiative follows the announcement of Chas Edwards being brought in to create new revenue streams and advertising channels as Digg's chief revenue officer. Edwards comes from Federated Media where he co-founded the company that has helped bloggers monetize (including Digg) their web presence.

Source: PC World

What Affect Will the GM and Chrysler Bankruptcies Have On The Price of a TV Spot?

The General Motors and Chrysler bankruptcies could contribute to downward pressure on network TV ad rates. It is highly likely that advertising agencies will use the sudden availability of inventory--left by the lack of auto spending, to get better pricing.

GM alone spends about $300 million in a typical upfront media buying season, but this year's ad expenditures will be determined in bankruptcy court, and networks might have to cut deals to cover the difference.

For those unfamiliar with the "Upfronts"--it is a specific selling season when television networks sell as much as 80% of its ad inventory for the coming season.

From The Wall Street Journal:

Even before GM's filing, Wall Street had a bearish outlook on this year's rite of spring. Jessica Reif Cohen, an analyst with Merrill Lynch, is forecasting that the five major TV networks will see their upfront take plunge 13% to $6.87 billion. While some network executives dismiss such predictions, others agree that type of decline is possible.

This year's upfront "is going to be incredibly difficult," Ms. Cohen says. The GM filing and the recession "will put pressure on everything," she says. She points out that the courts recently slashed Chrysler's request to spend $134 million on ads over the next nine weeks by half.

Of course all of these numbers and expectations are still speculative, as the Upfronts have yet to be complete. In advertising lingo: "Watch this space" as spending levels by automakers are made clear, and as other advertisers swoop in (hopefully) to fill inventory.

Elizabeth Edwards To Open Retail Furniture Store

The wife of former U.S. presidential candidate and senator John Edwards, Elizabeth Edwards, is planning to open a furniture store near their North Carolina home.

The store is scheduled to open in October. It will be called Red Window and town officials said it would be similar to a charity store Edwards' mother managed when she lived in Japan.

Source: the News & Observer

Ryanair Proposes Passenger Self-Loading of Luggage and Fees For On-board Toliet Use

Ryanair, the cheeky British regional air carrier, is floating about a unique cost cutting idea. What if passengers loaded their own luggage into aircraft holds to save money on baggage handlers?

While the idea may seem far-fetched, so was Ryanair's proposal to charge passengers to use on-board toilets, or to eliminate them all together to allow for more seats to be placed on aircraft.

Ryanair loves to generate attention with such outlandish ideas.

Supposing Ryanair does go ahead with its self-handling baggage concept, does that mean they'll waive the £10 baggage handling fee currently in place? According to the Daily Telegraph, the company said the fee would remain.
  .
The Telegraph quoted a Stanstead Airport spokesman who questioned the possibility of such a move given security and practical considerations.

"I am struggling to understand this," said a spokesman for Stansted Airport, one of Ryanair's major bases in Britain.

"They haven't discussed this with us.

"There are security and practical considerations to be taken into account. For a start they would have to work out where a passenger would pick up a bag after putting it through the screening process.

"Also there are aircraft moving around the tarmac. It is hard to imagine how a grandmother or somebody with impaired mobility would be able to cope.

"Perhaps there is another agenda, what they are really saying is that they don't want passengers to have hold luggage at all."

Sources: Brand Republic and Daily Telegraph

Starcom, Leo Burnett and McCann Owed Millions by GM

Advertising Age is reporting that according to GM's bankruptcy filing, several advertising agencies are owed millions by General Motors, as unsecured creditors.

Starcom MediaVest Group, GMs' media buying and planning shop, is owed $121 million by the automaker and is ranked sixth among its 50 biggest unsecured creditors. Leo Burnett, who handles Buick, Pontiac and GMC, is due $25 million and is ranked 18th on the list.

Other agencies in the top 50 include Interpublic Group, which is ranked 20th and is due $15.9 million, and the holding company's McCann Erickson, Calgary, Alberta, which is ranked 47th and is owed $4.6 million.

The question is, will these (and other) agencies stick with GM through the bankruptcy, even though they may be losing millions of dollars in unpaid bills?