From SnowDoku to Dribble for Dodge and "Sebring Says," Chrysler Group (along with event agency ClearBlue) has spent the past few years running quirky marketing PR events to keep its vehicles in the media well after the products themselves have hit showrooms. Recent examples of the tongue-in-cheek efforts have included "Hats off to the Derby," a hat-rendering contest to promote the Chrysler Sebring convertible around the Kentucky Derby; the above-mentioned events "Dribble for a Dodge," a basketball-dribbling marathon to promote Dodge's National Truck Month promotion and the Dodge Ram around the NCAA finals; and "SnowDoku," a giant Sodoku contest in New York's Bryant Park to tout the Chrysler Aspen. The next such effort, timed with something called National Stress Awareness Day on April 17, will promote the new Dodge Avenger through an essay contest. Like previous stunts, the campaign touts vehicle amenities from a quirky angle. The Avenger has various in-car comfort and entertainment amenities like MyGIG, and temperature-controlled cup holders. Thus, the effort focuses on the stress of commuting and enduring traffic jams, and how to relieve it. Consumer/commuters enter by submitting a 250-word essay to DodgeAvengeYourCommute.com, about why they believe they have the most stressful daily drive and are most deserving of a new car. The winner gets flown to L.A.--which Dodge chose because it's the city emblematic of commuter hell--to be the subject of a Dodge "Avenge Your Commute" event on April 16. He or she will get a 2008 Dodge Avenger and a chance to destroy a separate car, thereby relieving stress. Highlight footage of those events plus footage of life coach, columnist and stress guru Dr. Martha Beck talking about how to relax when stuck in bumper-to-bumper traffic will do a satellite tour of morning shows nationwide that week. "We have been doing these for the past four years, and it's really tied to reaching media beyond the automotive press," says Carrie McElwee, senior manager brand marketing communications, who adds that the marketing team brainstorms the efforts aimed at sustaining awareness of a product after the initial post-launch media and ad salvo. "We have refined it, but we look for ideas that have a product focus but are still quirky and fun enough to generate interest." Last year, to promote the Dodge Ram at the Chicago Auto Show, the company did an immense musical chairs contest, with the last six contestants playing the game within the Dodge Ram Megacab. "That communicated a consumer product message about the Megacab seating six adults," she says. She says the strategic timing of the efforts--the dribbling contest during the collegiate basketball finals, or derby-drawing contest timed with the Kentucky Derby generates Web traffic and media coverage. Last summer, Chrysler promoted its new Compass with a beach competition in Los Angeles, in which contestants had to find a buried set of keys to a Jeep Compass. The finder won the vehicle. "From that we got great coverage," she says. The event was picked up on The Weather Channel, ESPN2's morning show, Cold Pizza, as well as news shows across the country. In addition to a number of automotive Web sites, Chrysler's recent SnowDoku Challenge in New York got play in The Wall Street Journal, Forbes, and several local and regional TV and national morning shows.
Having proven it can attract advertisers to support its three-screen content strategy, AT&T has entered into its first traditional-content distribution relationship, partnering with the 2007 Masters Tournament. Under the deal, AT&T will provide golf fans with access to Masters previews and daily highlights, live tournament and practice range coverage, player interviews, live updates, links to real-time scoreboards and more. Masters coverage will be available on AT&T blue room, AT&T U-verse TV, AT&T Homezone service, AT&T U-verse OnTheGo, AT&T Broadband TV, and Cingular Wireless service. Live video, including Masters Extra and Amen Corner Live, real-time scoring, and additional information are also available on the Masters official Web site, masters.org. Masters Week runs April 2-8. Five print ads have been created to support the coverage, featuring shots of TV screens and handsets set against the pristine greens and crowds on the golf course of the tournament. "As audiences look to get content on the range of digital devices, three-screen entertainment is the future. The Masters recognizes that successful programming translates to all three screens, which AT&T can deliver to consumers, programmers and advertisers," says Dan York, head of content and programming, AT&T Entertainment Services, in a statement. AT&T Entertainment Services was founded in 2006 to leverage the company's post-merger "total network assets" which it calls "unmatched in the industry" to give AT&T an edge in forging content and advertising relationships for the company. After its merger with BellSouth was completed, AT&T quickly announced its three-screen strategy, which offered a unique value proposition to advertisers and marketers: enabling them to reach consumers via the most ubiquitous communications and entertainment devices which AT&T now owns. J.P Morgan Chase Card Services was the first advertising sponsor for AT&T's first three-screen deal involving content on wireless telecom, TV and PC. Under the arrangement, announced in early January, Chase Card Services will be the exclusive sponsor of "Swampstock," an annual music festival and fundraiser hosted by country music singer Tim McGraw.
As T.G.I. Friday's carries on its nerve-racking experiment with smaller portion sizes (and prices) in response to society's concern with obesity, McDonald's is joining its brethren in offering what may be its biggest burger yet: the premium Angus Third Pounder, with 720 to 860 calories. The Double Quarter Pounder has 740 calories. Served on a bakery style roll with sesame seeds, it is intended to be more "gourmet" than the average McDonald's fare. To some, it is reminiscent of 1996's Arch Deluxe, which was an expensive failure. McDonald's phased out its Supersize menu three years ago after the movie "Super Size Me" generated negative publicity and equated the term with obesity in consumers' minds. Now, it is testing the concept of a third of a pound of beef on a bun in southern California with three versions, the Angus Deluxe, Angus Mushroom & Swiss and Angus Bacon & Cheese. The products are available at 600 restaurants in Kern, Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties. At $3.99, they are priced the same as Carl's Jr. and Hardee's half-pound burgers. CKE Restaurants owns both those chains. Burger King has had its own Angus burger for three years. Michael Solomon, director of the Institute for Lifestyle Research and professor of marketing at St. Joseph's University in Philadelphia, sees the initiative as a "competitive response to Burger King, which has done well by appealing to ... blue-collar young men, who are a great example of the hallowed 80/20 rule that 20% of your customers account for 80% of your sales." A McDonald's spokesperson says it is the company's desire to continue to provide our customers with choices. "We are hearing from customers who are still wanting burger choices," she says. But Solomon points out that the incremental cost of a larger portion is negligible. "If you charge a lot more for the Gonzo Burger, your profit margin goes up, since most costs are derived from overhead and labor, not food." "The Angus Third Pounders are being supported with an aggressive television, radio, outdoor and regional Web site advertising campaign, aerial banners flying high above Southern California and point-of-purchase materials found in all participating stores," says Sue Mullins, director of marketing for McDonald's Southern California Region. The product can be seen at mcdonaldsocal.com.
The Tribeca Film Festival, a project of actor Robert De Niro and Jane Rosenthal and now in its sixth year, is adding a raft of new sponsors for this year's event, with brands Montblanc, Target, Yahoo, AARP and others joining a roster of some 50 corporate sponsors. The festival--which runs from April 25 through May 6 this year--was founded in 2002 by De Niro, Rosenthal and Craig Hatkoff partly as an effort to revitalize Manhattan's downtown, whose economy had been crippled by the 9/11 attacks. Sponsorship activity for the festival, which has attracted 1.5 million attendees so far--and about 450,000 last year--includes relationships with specific films, sponsorship of awards, categories, grass roots and guerrilla efforts in New York City, national advertising integrated and timed with the festival, and media partnerships. Jon Patricof, COO of Tribeca Enterprises, says there has been a dramatic increase in the depth of sponsorship participation, with media and content driving national and global reach for sponsorships. "Basically, traditional on-site sponsorships have morphed into multi-platform relationships that cut across both activities in New York as well as media activation, consumer promotions, and content area," he says. "We try, where we can, to find ways for sponsors to enhance filmmaker experience and opportunities." He says that last year, for example, Jameson Irish Whisky worked with the festival to be a partner of the Ed Burns-helmed "The Groomsman," in which Jameson has sponsored a European tour of the film culminating this year. Jameson activated the association with advertisements in European editions of GQ and Esquire. "That's a really good example of where we were able to find a very organic way to integrate marketing partners to benefit all three parties." Sponsors also tout promotional arrangements and have banner ads on www.tribecafilmfestival.org, which features short films, official selections, and trailers and touts sponsored events, and banner ads for sponsors' products. ESPN is touting a May 5 series of panel talks, sports-themed films and events at the festival featuring actors and sports stars and moderated by Giants player-turned-announcer Tiki Barber. Patricof says plans involving last year's partner, NBC, are in development. Last year NBC ran a festival special in 13 markets. "Access Hollywood and Reel Talk will cover the festival so there's no doubt there will be national exposure on TV," he says. "Sponsors who want to activate on a national level will get involved with the TV part of it, as well." Cinema chain AMC is promoting its relationship with the festival by screening trailers of festival films, per Patricof. As part of their sponsorship deal, AMC runs Tribeca Film Festival trailers pre-festival about six weeks out in 1,257 screens in AMC theatres in major markets nationwide. Sponsors are boosting grassroots efforts as well. Founding sponsor American Express last year ran national TV spots during the festival starring De Niro. The company's grassroots efforts this year will include information centers throughout Manhattan, a Family Festival Street Fair, and presenting sponsor of awards for Best New Narrative Filmmaker and Best New Documentary Filmmaker. AmEx will also run special access offers for cardholders. Montblanc will use its sponsorship to present, in New York, the 15th annual Montblanc de la Culture Award, which supports the arts in 10 nations. The company will hold a gala awards ceremony for nominees Wynton Marsalis, Quincy Jones and Martha Richards, with Val Kilmer, Rosanne Cash and Lee Daniels as jurors. Denise Scala, Montblanc representative, says the company will use the event to run its global arts award program. "We may have collateral material and point of sale within retail boutique to honor the award recipient." Patricof says Anheuser-Busch is promoting its Budweiser Select through consumer promotions around a film in the festival, which includes private screenings and a concert on April 26. Target will sponsor a Tribeca Filmmaker Lounge. Other sponsors include Chock Full O'Nuts coffee, which will celebrate its 75th anniversary at the festival and use its presence there to unveil a new corporate jingle. The Massimo Zanetti Beverage Group brand will also field street teams in the city, who will offer samples of coffee. Chanel will sponsor the Artists Awards Program for the second year; Delta Air Lines also sponsors, putting its name on World Narrative Feature, Best Actor and Best Actress awards. New sponsor AARP (American Association of Retired People) will have a "huge presence" at the festival, per Emilio Pardo, chief brand officer. He said the group, which has over 2.6 million members in New York City, will sponsor the festival volunteer corps, which includes an AARP tent for attendees, hundreds of volunteers and member discounts to festival programs. He adds that the festival will be featured in AARP magazine and bulletin, which have a circulation of 22 million. "We will be using those channels and the Web," he says. The AARP, which recently expanded to 38 million members, is growing as boomers keep hitting 50--and members, which are skewing younger, show a strong affinity for arts, and culture. "Forty nine percent of our members are working, and there are three generations of members now." Editor's note: This article has been edited since its publication to correct minor errors.
Wal-Mart is opening two of its newest Neighborhood Market concept stores--less than 50,000 square feet--in the next few weeks. And Home Depot, which has tried and failed with small-store concepts in the past, is reportedly testing a smaller format, too. "For the last several months we have studied our customers, seeking to understand their preferences about our store's convenience and products," Wal-Mart says in a release announcing the new prototype for its 112-unit Neighborhood Market chain, adding that the smaller format both simplifies things for shoppers, but also better addresses her needs. "The new design package is a great example of what we know customers are seeking in this type of store," the company adds. Aimed at women, the store has a "warm ambiance," lots of fresh and organic foods, a bakery, sushi bar and "a uniquely designed health and beauty department." The first prototype opened in Tulsa, Okla. in January, and the company says it plans to introduce between 15 and 20 of the new stores this year. Both the Plano, Texas store (about 40,000 sq. ft.) and the Naples, Fla., store (50,000 sq. ft.) are scheduled to open this week. Meanwhile, the Atlanta Journal-Constitution reports that Home Depot, hedging its bets, is also experimenting with store sizes, opening both its biggest ever store in New Jersey (a 225,000 sq. ft. superstore) as well as testing a smaller-store concept, which would range from 35,000 to 50,000 sq. ft.--about half the size of its normal format. The store will reportedly debut in the San Francisco Bay area in late 2007. Some observers are skeptical that small can work for big-boxers. "This isn't the first time Home Depot has tried this," says George Whalin of Retail Management Consultants. "Its Villager's Hardware concept in New Jersey years ago didn't work out. It's very hard for big companies like this to be neighborhood-y. They're global marketers, and that's how they think." In fact, while both Home Depot and Lowe's have struggled, citing softness in the real estate market as a reason for the decline in home improvement sales, chains of smaller stores have been thriving. Ace Hardware, for example, recently reported record results. And Chicago-based True Value last week said it plans to add over 1.5 million square feet of retail and $225 million of retail sales by 2009--a 154% increase. The softness in real estate is less likely to affect small neighborhood stores, says Whalin. "People have not stopped fixing their homes and repairing broken toilets and buying new lawnmowers," he says. "That neighborhood retailer is well-positioned, they're convenient, you're in and out quick--unlike Home Depot, where you know it's going to take you some time to find and buy whatever it is you need."
DFS will be the symbol under which Discover Financial Services is traded once it files for an initial public offering of stock after being spun off by Morgan Stanley. In a filing with the Securities and Exchange Commission late last week, Morgan Stanley disclosed it would have no stake in Discover, the nation's fourth-biggest credit card brand, after the transaction is completed in the third quarter. Morgan Stanley announced in December that it would spin off Discover following a trend among cardholders. Rival MasterCard Worldwide went public last year, and Visa is restructuring its Canada, U.S. and international divisions into a single entity, which it plans to take public this year. Discover is widely believed to be well-positioned as a stand-alone company: it enjoys strong brand recognition and is considered a rewards leader. It also has room to grow. With 50 million cardholders, it ranks fourth in the U.S. after Visa, MasterCard and American Express. Even so, it earned $1.5 billion in 2006 on record revenue of $4.3 billion, and receivables approached $50 billion. "Their rationale makes an awful lot of sense at the moment," Ned Riley, chief investment officer of Boston-based Riley Asset Management, tells the Chicago Tribune." They feel Discover is under-priced relative to the entire company, and this will allow them to get a higher value from the asset than was being priced by Wall Street analysts." Competition among credit card brands has heated up since a Supreme Court ruling in 2004 upheld an antitrust lawsuit against Visa and MasterCard to allow retail banks to issue competing cards from Discover and American Express. Now, Citibank, Bank of America and others offer their customers American Express cards. In reporting first-quarter results, Morgan Stanley said that Discover's transaction volume increased 13% from a year ago due to higher sales stemming from increased card usage and the acquisition of the UK-based Goldfish credit card business. Non-interest expenses increased 7%, to $653 million--due in part to higher marketing costs and the inclusion of operating expenses associated with the Goldfish acquisition.
The ANA confirms what advertising headlines have been blaring about for some time--the biggest issues on marketers' minds are integrated marketing and ROI. In its annual survey, the Association of National Advertisers asked 100 senior marketing executives to list the most important issues they confront. The changes from 2006 to 2007 were slight. Marketing accountability or ROI (return on investment) had topped the list for the previous three annual surveys. Integrated marketing communications was in fourth place a year ago. This year, integrated marketing was top of mind--getting 116 votes--while accountability got 114. In third place was what the ANA calls "aligning the marketing organization with innovation." That was farther down the priority list with 89 votes. After that, the big issue is "building strong brands," which garnered a 75 score. "Media proliferation" was in fifth place with 49 votes. Bob Liodice, president and CEO of the ANA, wasn't surprised by the results, noting: "Marketing mix allocations have become paramount in the overall accountability and brand-building equations." The next group of issues--in order--were "consumer control over what and how they view advertising," "globalization of marketing efforts," "growth of multicultural consumer segments," "advertising creative that achieves business results" and "attracting and retaining top talent." The ANA has 375 companies as members, which it says spends more than $100 billion in marketing communications and advertising a year.