She can sing, she can act, and she can sell plenty of cosmetics. Now Queen Latifah will see if she can sell high-end perfume, too -- Queen by Queen Latifah will hit shelves of U.S. department stores this fall, and roll out internationally soon after. The scent -- in partnership with Parlux, which also sells fragrances fronted by the likes of Paris Hilton and Jessica Simpson -- is a deep Oriental fragrance, "and reminiscent of aged Tequila," the company says, with notes of bergamot, citrus, rose, cognac and coriander. The bright-red bottle is square with gold borders, and has a raised heart on it, "reinforcing Queen's message of beauty from within," Parlux says. While this is her first scent, Queen Latifah also appears in ads for Cover Girl, owned by Procter & Gamble. The eau de parfum will retail for $59, and the eau de parfum spray for $49. The line will also include body lotion ($35) and body butter ($40). Print ads featuring the Academy Award winner in an opulent dining room, surrounded by gilt and chandeliers, will support the launch -- with an ad budget that Women's Wear Daily estimates at $20 million, and which will reportedly include a holiday TV spot in conjunction with Macy's. In addition to Queen, Parlux is also rolling out other new scents this fall, including Paris Hilton Siren, Jessica Simpson Fancy Love, Josie Natori Natori, and Nicole Miller Frenzy, as well as Marc Ecko Ecko for men. It also markets the fragrance brands of GUESS?, Kanye West, Rihanna, Shawn "Jay-Z" Carter, XOXO, Ocean Pacific (OP), and Andy Roddick, and holds the licenses for Paris Hilton watches, cosmetics, handbags, and sunglasses. Industry-wide, sales of prestige fragrances have been faltering. The Fort Lauderdale, Fla.-based Parlux recently announced that in its fourth quarter, net sales skidded 30% to $28.2 million. Sales to domestic department stores, however, gained 7%.
Congressional passage of the bipartisan Food Safety Enhancement Act of 2009 became more likely than ever last week. On Friday, just two days after the legislation passed the House Energy and Commerce Committee, news broke of the latest in a growing series of contamination scares -- this one involving cookie dough. Nestle USA voluntarily recalled its Toll House refrigerated cookie dough products after learning that the Food and Drug Administration and Centers for Disease Control are investigating illnesses linked to consumers eating raw cookie dough contaminated with E. coli O157:H7. The FDA, which issued a warning to consumers not to eat any of the refrigerated Toll House products, reported that there have been 66 reports of illness across 28 states since March. No one has died, but 25 people have been hospitalized. Seven experienced a complication called Hemolytic Uremic Syndrome, which "can lead to serious kidney damage and even death," according to the FDA. "If there was anyone left in America who didn't realize we need to reform the food safety functions at the Food and Drug Administration, this latest recall of Nestle Toll House Cookie Dough provides a sobering wake-up call," the Center for Science in the Public Interest said in a statement released Friday. "For too long, the agency has lacked the authority and the resources it needs to inspect food-processing facilities, issue mandatory recalls, and punish violators. Once again, the agency is forced to react after illnesses are already occurring, when the focus should be on preventing contamination in the first place. We urge the House to pass the Food Safety Enhancement Act now." "The fact that this outbreak was not detected until more than 60 people were ill in 28 states is precisely why we urgently need increased funding for the agencies responsible for public health," said food litigator Marler Clark. After the bill's approval by the Energy and Commerce Committee, which is chaired by the bill's sponsor, Rep. Henry A. Waxman (D-Calif.), Grocery Manufacturers Association president/CEO Pamela G. Bailey reaffirmed GMA's support of the legislation. "Because consumer confidence is the foundation of everything we do, manufacturers take food safety very seriously and invest their reputations and resources in producing safe products," she said in a statement. "Our industry is increasing its investment in food safety and is prepared to make additional investments to continually improve the safety of our food supplies. We look forward to working with Congress to swiftly enact food safety legislation that boosts consumer confidence and addresses the challenges posed by today's global and complex food supply." The House is now expected to vote on the bill prior to its July 4 recess, according to Defendingfoodsafety.com, a site run by food safety defense attorneys. At this juncture, it is hard to imagine legislators voting against the bill. "Who wants to vote against having safe food?," comments Laura Ries of the Ries & Ries brand consultancy. "That's like voting against clean air." While food manufacturers and retailers obviously stand to benefit from legislation and initiatives that help restore consumer confidence, messages promoting safety measures by individual marketers would be counterproductive, in Ries' opinion. "Airlines don't promote safety measures because it would make people think about crashes, and every major airline has had crashes at some point in its history," she says. "Similarly, most people don't think about food safety until there's a problem, and individual companies highlighting safety measures would just serve to raise concerns." Although products from some of the country's largest food marketers have been involved in recent contamination scares, Ries believes that major brands may be able to differentiate themselves from private-label products and cheaper alternatives by conveying that brands invest in quality and measures such as added safety packaging. "Of course, you can't just say it -- the brand has to demonstrate its quality and safety to consumers in tangible ways," she stresses.
Burger King Corp. has signed a licensing agreement with Crunch Pak to sell BK Fresh Apple Fries in supermarkets. The popular BK Kids Meal product is made from fresh (not fried) skinless red apples sliced to resemble traditional potato fries. It will be available in the fresh-cut fruits and vegetables section of approximately 10,000 supermarkets nationwide, starting this fall. A single serving will be priced at approximately $1, and a larger package with multiple servings will sell for between $4 and $5. Noting that BK has sold 29 million servings of the apple fries since their launch last year, John Schaufelberger, SVP global product marketing and innovation, said in a statement that the item clearly satisfies parents' desire for foods that are nutritious, convenient and appealing to kids. This is not BK's first foray into supermarkets. In November 2007, Burger King Snacks -- including chips in "Ketchup & Fries" and "Flame-Broiled Burger" flavors and onion rings -- were introduced in mainstream retail channels and vending machines. BK executives characterized the snack's launch as being more about brand visibility than revenue, and the chain says this is also true for the Apple Fries retail extension. "The program will result in revenue, but that is not the primary focus," according to a spokesperson. With consumers cutting back even on fast-food restaurant visits in favor of buying food for home-prepared meals these days, the exposure level should be significant. In fact, Schaufelberger pointed out that "the popularity of this clever product is now opening up new channels for our business and providing our customers with a menu favorite in the places they shop most." BK is one of a growing number of restaurant chains to license its brands for retail products, including Starbucks, California Pizza Kitchen and Dunkin' Donuts.
Older cars, more uninsured motorists and rate increases are prompting insurers to take a direct approach in communicating with consumers, according to Mintel Comperemedia. Even as advertising and marketing budgets shrink across the board, auto insurers continue to send out a steady stream of marketing direct mail offers. Nearly 3 billion auto insurance direct mail offers were delivered to American mailboxes from April through December 2008, according to Mintel. This is nearly the same amount that was sent one year prior, despite drastic changes in the economy. GEICO was the top mailer of auto insurance offers, sending nearly one-third of those tracked. State Farm followed with 16% of total mailings, while Liberty Mutual, The Hartford and Allstate took the third, fourth and fifth spots, respectively. Together, these five mailers accounted for 70% of auto insurance direct mail tracked by Mintel. The past two years' mail volume represents a high for the auto insurance industry. Five years ago, auto insurers sent less than half as many offers, according to Mintel. "The recession brings new challenges, like rising repair costs and more uninsured motorists, to the auto insurance industry," says Daniel Hayes, vice president of insurance services for Chicago-based Mintel Comperemedia. "Insurers realize higher rates won't bode well with cash-strapped consumers, so they're using direct mail to communicate policy changes with drivers." Rate increases are necessary for auto insurers to remain profitable, Hayes says. Annual direct written premium (DWP) for private passenger auto insurance -- which grew around 8% annually in the early 2000s -- has fallen flat in recent years. In 2007, for the first time since 1993, annual DWP fell by 0.4%. Add to that people cutting collision coverage and increasing deductibles to save money, and there's a definite need for insurers to boost revenue. "Despite proposed rate increases, auto insurers still focus on finding savings for individual drivers," Hayes says. "The top three themes I see in auto insurance direct mailings are saving over competitors' rates, accident forgiveness and rewards for safe driving."
Those branded mugs that banks give away at street corner tables for new-account signatories may not look like much, but those branded promotional items -- and products like them, from pens, paperweights and packets of mint to branded Philippe Patek watches and Waterfords (for those invitation-only, experiential-marketing events, presumably) -- add up to huge dollar volume. An annual study by the Promotional Products Association International (PPAI), an Irving, Texas-based industry group, says distributor sales of swag hit $18.1 billion last year -- the third-highest sales number on record. The PPAI-commissioned effort, by Richard A. Nelson at the Manship School of Mass Communication at Louisiana State University and Rick Ebel, principal of Glenrich Business Studies in Corvallis, Ore., found that in spite of a 6.89% decrease from 2007, promotional products have trended up almost a percent from 2006 to 2008. The group says the numbers diverge from newspapers, business magazine, and radio advertising, down over 8%, 3.9%, and 3.3% respectively for that period. Steve Slagle, president and CEO of PPAI, says last year's drop in part reflected the Pharmaceutical Research and Manufacturers of America's voluntary PhrMA Code on Interactions with Healthcare Professionals -- restrictions that suggest only items related to education of practitioners and patients be given by pharma reps -- meaning no branded golf bags, balls, pen sets ... you name it. "In light of the recession and the dramatic decrease in sales attributed to the PhRMA Code in the last half of 2008, we were not surprised at the drop in sales last year," says Slagle. "[It] was a tough year for many of our members. However, it was particularly interesting that the more tangible and personally engaging forms of advertising fared much better overall compared to more passive media like television, radio and newspaper, which all reported a sharp decline," he said. "These numbers clearly support our research that proves when used as a key element in the marketing mix, promotional products effectively cut through advertising clutter to create a more positive outlook toward the ad and the brand." The researchers for the PPAI study garnered data via survey sent to 16,000 member and non-member promotional consultant companies. The study asked promotional consultant companies to report products sales for the 12-month calendar year ending Dec. 31.
Fleet modernization programs, known colloquially as the "Cash for Clunkers" bill, seem to have worked in Europe and Asia to keep the auto industry there from going to hell in a fast-back. But will they work here? It seems, at long last, that we are going to find out. Late in the week, the Senate passed its version of the House fleet modernization bill contained in H.R. 2346. The auto stimulus bill -- the first legislation aimed at shocking the automotive market back to life -- essentially pays consumers up to $4,500 for trading in a less-fuel-efficient vehicle for a cleaner, more fuel-sipping car or truck. Actually, the Senate almost didn't get the bill passed because a critical group of lawmakers did not want the $1 billion program attached to the wartime spending bill. The minimum number of lawmakers rejected an effort to eject the program from war spending, with one senator casting the key vote after President Barack Obama reportedly promised her that he would push for more fuel-efficient vehicles. A Web site for the program, www.CashForClunkersHeadquarters.com, explains that, hypothetically, a consumer could take a car worth $500 on trade-in and wind up with $5,000 for trade-in by getting up to $4,500 from the government. The Web site says it is running a national effort to certify eligible car dealers and equip them with the right communication plan and campaigns to reach and help qualifying consumers in their market. CashForClunkersHeadquarters.com is using celebrities to push the effort. "Dancing With The Stars"' Cristian de la Fuente and "Ugly Betty" star Angelica Vale are both involved, focusing on the Hispanic American community. The bill -- officially "Consumer Assistance or Recycle and Save Program" -- is intended to do three things at once: boost the market, save consumers money and help the environment. Car shoppers will get a $4,500 voucher if the car they are trading in gets 18 miles per gallon in fuel efficiency or worse. Drivers who buy a car with a 10-mpg improvement over their previous car qualify for the $4,500 voucher; those who choose a car with a 4-mpg improvement qualify for $3,500. SUV and truck owners also qualify for the program but fall under slightly different qualifications. Automakers and dealer groups are supporting the measure. The National Automotive Dealers Association (NADA) says it has been working with the National Highway Transportation and Safety Association to make this bill happen. Said John McEleney, chairman of NADA: "With families struggling in this economy, giving them an additional $3,500 to $4,500 to apply toward their down payment will put a new vehicle purchase in reach for many. With more fuel-efficient vehicles on the road, it will also help reduce the nation's dependence on foreign oil. A spike in new car and truck sales will also help communities that rely on the revenue from vehicle sales taxes and other fees to fill their budget shortfalls." The Association of International Automobile Manufacturers, representing Japanese, European, and Korean automakers' U.S. operations, offered support. The group's president and CEO, Michael J. Stanton, said that by stimulating the economy, the program will "radiate economic benefits out to suppliers, dealers and small businesses all around the country."
Top 10 DMAs in which live adults who ate potato chips in the last six months: 1 Cincinnati, Ohio 2 Jackson, Miss. 3 Springfield, Mo. 4 Davenport/ Rock Island, Iowa/ Moline, Ill. 5 Grand Rapids/ Kalamazoo/ Battle Creek, Mich. 6 Green Bay/ Appleton, Wis. 7 Lexington, Ky. 8 Des Moines/ Ames, Iowa 9 Madison, Wis. 10 Charleston/ Huntington, W.Va. Source: MRI's Market-by-Market study, www.mediamark.com
Please allow me to share my experience with one of your standout customer service agents, today. Feel free to use this incident in the unquestionably effectual training program this person must have completed. If I may be so bold, I'd recommend titling this exercise; "The ROI of Hiring Ass Hats." Looking at my flight history, you'll notice I have 35 travel segments with your airline year-to-date. I'm not sure I can more adamantly emphasize how appropriate the term "history" applies with regard to my patronization of your airline. Today, I was called home for a family emergency. A trip I neither planned nor desired. I was previously booked on a flight this Friday. Silly me, of course, putting you out by occupying an empty seat on a Tuesday afternoon and freeing up a seat on your typically full Friday flights. For inconveniencing you, I was penalized by being made to purchase another ticket for an additional 300 dollars. Not only was I charged for another ticket but, because of my exquisite planning skills, I am able to purchase flights in advance at a discounted rate meaning, of course, I am due no refund of the seat I will not use. My apologies for putting you out. I can assure you it won't happen again. In fact, as soon as I use the remainder of my well-planned itineraries, rest assured you will be rid of the blight of my frequent impositions. Not only did your emissary of empathy charge me for the flight, she neglected to put my frequent flier number on the sparkling new voucher she sold me. She also bristled when I demanded my share of the Friday seat I purchased, that you will no doubt resell to some other vagrant who dares to fill it for you. I can only advise you to spend your windfall wisely as it will take considerable investing savvy to make up for its cost to you. I'm not really good at math, but given my documented flight schedule, the average price of one of your golden tickets, plus the 15 years, if I'm lucky, until retirement, I am certain one of your highly trained policy makers can compute just how much pinching me for three bills will ultimately cost your esteemed organization. Of course, you'll need to factor the additional and occasional $8 beer you somehow sell me without the courtesy of a reach around. Do not, for any reason, respond to this email. I am uninterested in speaking to "someone who can help me." That authority should have been extended to the agent who "helped" me today. I've included my frequent flyer number only so you can watch my segment total dwindle to zero for the rest of the year. I'm not unreasonable. If you'd like to talk, you can find me any Monday morning at whatever Tampa International Airport gate AirTran departs for Atlanta from. By the way, please pass on my regards to the ticket agent who tolerated my intrusion on her conversation with another employee, today. I'm certain she is due some "up sell" revenue generation award. Sincerely, Michael Williams FF# 22173xxxxx