Piaggio USA, which markets both Piaggio and Vespa brands in the U.S., has had a banner year for both brands, whose products range from 50-cc scooters to Piaggio's highly unusual MP3--a scooter with two front wheels with a steering and suspension system that lets the wheels lean together on turns while remaining independent over bumps. But the company's president and CEO, Paolo Timoni, says it's not all about gasoline. Timoni says in the first seven months of the year, sales are up around 93% versus last year, with a big acceleration during the summer. "We saw sales increase 100% in May, 147% in June and 169% in July [versus those months in 2007]." He says August will slow a bit because of tight supply, to 80%-90% above last year. Scooters from Piaggio and its upmarket sibling, Vespa, range from around $2,000 to $9,000. Timoni says that three things drive sales to record numbers: gasoline prices, traffic congestion and a resurgence of environmentalism. He says that regardless of where gasoline prices go, traffic congestion remains severe, and concern for the environment is growing. "We interview customers after a few months of using scooters and find that the great majority are happy not only because of the money they are saving on gas, but because of the sense of liberation they get, and the convenience: They don't have to think about parking, and about congestion," says Timoni. "It's permanent trend," he opines. "There are 30 million scooters on the road in Europe and only a million in the U.S., but the same drivers that created the [pro-scooter] behavior in Europe are becoming a reality here: People spend 3.7 billion hours in traffic; gas prices will never go back to $2.50 a gallon; and the population density in metropolitan areas will get higher and higher." He says that while Piaggio leads in U.S. scooter market from a dollar perspective, the Japanese makes lead in volume. "In dollars, in the first seven months, we are No. 1, but our Japanese competitors tend to sell more because they sell more of the 50-cc scooters. Also, we are very new to the market, and our dealer network is 300 dealers. Honda, for instance, has a dealer network of 11,000 to 12,000," he says. Timoni says Piaggio USA's best-selling model is the Vespa LX 150, a mid-range scooter for city riding, with an average price of around $4,300. The company has sold more than 2,300 MP3 trikes since the launch last fall. Timoni says it appeals to a somewhat older segment of the market. "Contrary to Europe, where many people learn to ride when they're young, most Americans are not familiar with motor scooters." He says the MP3, which ranges from $7,199 to $8,899, appeals to consumers 40 and older. The company is running a number of summer promotional programs, such as offering gas cards with purchase of a scooter and a cross-promo with Logitech computers for college-bound students. But Timoni says that Piaggio--which doesn't do any TV ads, although it posts videos about products like MP3 on YouTube--has gotten the most mileage from PR around scooters as an alternative to cars. "Clearly, what has given us a lot of visibility has been the exposure we have had on TV and in newspapers, with gas prices increasing and people looking for alternatives."
Building on the momentum of its recently launched Tuscani Pastas line, Pizza Hut is releasing a new, even kid-friendlier pasta item just in time for back-to-school: Premium Bacon Mac 'N Cheese. The highly adult-friendly, super-convenience concept behind the pasta line, launched in April with two items (Meaty Marinara and Creamy Chicken Alfredo), is no doubt a major driver behind its impressive success to date. "As the first delivery pasta offered by a national chain, we expected that Tuscani Pastas would be extremely well-received by consumers, and the sales in the first five months have exceeded our initial expectations," reports Doug Willmarth, director of brand marketing, pasta for Pizza Hut. "We sold more than one million units of Tuscani Pastas in the first month, making [them] one of our most popular product launches ever." Basically, the "restaurant-quality pasta delivered to your home" provides Mom and Dad with a more-or-less guilt-free way to feed the family a hot, substantive, relatively inexpensive meal (with both kid and adult appeal) without so much as having to boil water or microwave a jar of sauce. No stops at the grocery store and, as Pizza Hut touts, "No cooking or clean-up!" The new offering--pans of baked rotini in cheese sauce, topped with bacon and melted cheese--is, like the other varieties, priced at $12.99--big enough to feed four, and accompanied by five breadsticks. The pastas can be ordered by phone, online (including mobile) at www.pizzahut.com, or even by texting. The truly hooked-on-convenience can "download a desktop application that allows you to order your favorites with just a few clicks of your mouse." The integrated campaign for the new Tuscani line currently includes national TV and radio, Internet banner ads, FSI mailers, box toppers, email blasts, POP and public relations. Pizza Hut--which, according to Willmarth, had varieties beyond the initial two in development since the initial planning stages-- cleverly timed the debut of this third item for extra appeal during a more-frenzied-than-usual time of the year. "This is a time of year when convenience is at a premium, not only for families with kids heading back to school, but people without kids who might be busier at work now that the summer is winding down," notes Willmarth. "We want to give our customers the delicious taste of a pasta variety we know they love while making their lives a bit easier during these hectic times." Willmarth confirms that Pizza Hut will continue to expand the pasta portfolio with new recipes next year. Might Pizza Hut now be contemplating launching new delivery-friendly food lines beyond pasta and pizza? Willmarth replies that the chain already offers WingStreet--an item offering "eight intense flavors of wings"--through 1,300 restaurants spanning many markets, and plans to continue to expand that selection's delivery across the country.
Sony Electronics and Waste Management Recycle America are teaming up to raise awareness of the importance of recycling electronics. To that end, the companies will stage an event in Boston on Sept. 13 wherein the first 2,000 consumers to drop off their old electronics at Gillette Stadium receive a free "environmentally friendly" cloth tote. And Sony is recycling an old television ad promoting what looks like one of its first Beta video recorders and players. Superimposed near the end are these words: "We're recycling our old 1970s commercials to remind you to recycle your old electronics." TV and newspaper print ads will run over the next couple of weeks prior to the Boston event and then roll out to other markets such as Phoenix, Austin, Texas, and Atlanta. "We realize e-waste has become a big barrier to recycling because many of the items you want to recycle are large," says Stuart Redsun, senior VP corporate marketing at Sony Electronics. "Some U.S. states don't have programs to take back old VCRs and televisions." Doug Smith, director of corporate environmental affairs at Sony Electronics, says that with help from Waste Management, Sony has opened about 155 recycling drop-off locations since September. The objective is to have a free and convenient network for electronics waste. The electronics company says the promotion fits nicely into its ongoing Take Back Recycling program, which provides free recycling for Sony products. At the Boston event, Sony will open free recycling to other brands, Smith says. With plans to bring several other electronic manufacturers into the program, Waste Management introduced the electronics recycling program with Sony Electronics a year ago, and recently added LG Electronics to the mix, says Wes Muir, director of corporate communications for Waste Management. Along with Waste Management, Sony has collected about 9.2 million pounds of electronic waste. Citing statistics from the U.S. Environmental Protection Agency, Muir says about 2 million tons of cellular phones, televisions, printers, and computers are collected annually, but there are 5 million tons in basements, garages and attics being stored that can be recycled, Muir says. Not surprisingly, electronic waste is the fastest-growing commodity in the waste management system considering the number of gadgets being introduced monthly. Design and delivery cycles on smaller electronics are sometimes fewer than six months. For example, on Thursday Sony unveiled three new Walkman players and a 10-megapixel Cyber-shot DSC-T500 camera with an HD movie recording feature. The Walkman series S, E and B players provide easy content transfer software with drag-and-drop features for non-DRM music, videos and podcasts, while the Sony Cyber-shot offers wide and full- screen 720p movie recording at 30 frames per second in fine and standard and VGA recording modes.
In a new study by the media agency Mediaedge:cia, Coca-Cola and Adidas got the most from their sponsorships of the Beijing 2008 Summer Olympics when it comes to awareness among Chinese consumers. The firm says the top 12 official Summer Olympics sponsors invested a combined $866 million in sponsorship activities, including advertising. The agency said only Coca-Cola and Adidas resonated strongly with the 1,000 Chinese consumers the agency surveyed. Forty percent of respondents mentioned the two brands as having been prominent in the games, while other big spenders like McDonald's did not generate "significant" brand awareness. The agency commissioned Seattle-based Global Market Insight to do online interviews of some 1,000 residents of Beijing, Shanghai or Guangzhou during one week in April and one week in August. Coca-Cola, which spent between $75 million and $90 million on its Chinese Olympic sponsorship, boosted awareness of its brand among respondents from 28% in April to 50% during the Games. The agency says Coke got those results by tripling its monthly spend in the six weeks leading up to the opening ceremony. Mediaedge:cia says Adidas spent $250 million on its complete Olympics sponsorship and advertising but that Adidas and competitor Nike, which did not get official sponsorship status, got the same level of brand awareness--16% and 11%, respectively. But the firm says that by August, Adidas grew Chinese consumer awareness to 38%, while Nike only raised its awareness to 18%. Why? According to the media firm, Adidas's success was a result of on-screen presence through branded clothing and consistent Olympics-related advertising in the six months prior to the Games. Chinese sportswear retailer Li Ning saw brand awareness among Chinese consumers grow from 8% in April 2008 to 20% during the Games, although the brand had no official Games sponsor status. But the company sponsored the Chinese gymnastics team, and the company's founder, who is a former Olympic athlete, lit the torch at the opening ceremony. Other brands, says MEC, did not fare as well because they didn't shell out. Lenovo, a top sponsor and torch partner, was the brand that Chinese consumers most associated with the Beijing Olympics, but its brand awareness levels remaining static until the first week of the Games, says the agency. Jon Wright, director of MEC MediaLab APAC, said it ain't just the cash. "If brands want to maximize the return of their sponsorship, they need consistent, integrated advertising strategies. There are six months from the torch relay to the end of the Games, and our research has shown that the brands that succeed are the ones that continually keep their advertising and sponsorship fresh and engaging for consumers." A final wave of the research will be conducted in the second week of September.
Starting next weekend, Campbell Soup will roll out its "Working Day" campaign, with a set of 15- and 30-second TV spots focusing on the working life of San Diego Chargers running back and former NFL MVP LaDainian Tomlinson. In the spots, which will run not only during football games but also during programs that appeal to the general population, LT--as he is known--plays football as a voiceover describes him interacting with his colleagues (fellow players), meeting the approval of his boss (coach) and other workaday descriptions. Then he sits down to a meal of Chunky Soup as the voiceover suggests: "Fill up on the good stuff." Brand manager Doug Brand says the new tack is an evolution for Chunky. "The way we were talking about our product was from the benefit of 'full'--it fills you up right," he says. "We've been doing that for the last 10 years. Now we want people to feel confident that they have made a good choice." Campbell had enlisted the mothers of NFL football players over the last decade to help advertise its brand. The "Working Day" advertising campaign consists of two :30 and three :15 broadcast spots, as well as print, radio and online advertising. Print is set to launch on Thursday, and will extend through March in publications that reach men such as Men's Heath, Men's Fitness, Sports Illustrated, ESPN the Magazine, Popular Mechanics and Rolling Stone. Chunky soup ads will also run in Health, People and TV Guide, which skew to a more female audience. "A significant portion of Chunky consumption spans the breadth of consumers," says Brand, so the media buy extended to reach the gatekeepers--wome--as well as the bull's-eye demographic of men in their 30s and 40s. "We have seen strong growth in our Chunky Healthy Request line over the last three years. Our consumers are saying: 'We want the taste and we want to make good decisions for ourselves as well'." "Working Day" ads also will be seen on outdoor posters peppering construction sites in Detroit and Washington D.C., emphasizing the hard-working theme of the campaign. Creative was handled by Young & Rubicam, New York, which enlisted the talent of noted commercial director, Kinka Usher, of House of Usher, to produce a visually explosive campaign. Usher used computer-generated graphics and unique camera angles to create dynamic, visually intensive and precise shots to deliver the "in your face" images. Meanwhile, the NFL moms live on--as 35 of them are taking part in a philanthropic enterprise, Campbell's Chunky/NFL Tackling Hunger program. Chunky soup, in partnership with the Professional Football Player's Mothers Association, will help raise donations for Feeding America food banks nationwide.
We're taking the day off Monday to commemorate labor. Won't you join us? See you on Tuesday! Be safe and happy!