The Wall Street Journal (subscription required)
Guests who sneak a smoke at any hotel in the Marriott chain could face a "cleanup fee" of up to $300 come September, reports The Wall Street Journal. That's when the lodging giant plans to institute a no-smoking ban in every room of its 2,300-plus hotels in the U.S. and Canada. Smoking will also be banned in public spaces. The policy will apply to all 10 of its brands, starting with the luxurious Ritz-Carlton chain right down to the extended-stay Residence Inn. "We hope it will improve guest satisfaction and long-term loyalty to us," says Steve Lampa, Marriott's senior vice …
The New York Times
Procter & Gamble will be closing its Rochas ready-to-wear fashion line after the fall season. The consumer-goods company--which acquired Rochas as part of the package when it bought the German cosmetics company Wella in 2003--lacked the resources to continue producing $4,000 suits and dresses, according to P&G spokeswoman Francine Gingras. But the company will continue its profitable Rochas fragrance line. The shuttering of the Rochas fashion brand, begun as a couture line founded by the designer Marcel Rochas in 1924, "is the latest rebuke to the industry's longtime practice of throwing unlimited resources at fashion shows with the expectation that …
The Wall Street Journal (subscription required)
Luxury hotel brands like the Four Seasons and Ritz-Carlton are building a new business niche: inviting executives in service-challenged industries to learn the fine art of customer engagement. Banks, hospitals, law firms and car dealerships were among the first to partake in the training sessions, which are now attracting retailers, including Macy's and Starbucks. The goal for companies is to get tips on how top hotels train their own staffs and treat customers. One Lexus dealer in Alabama reports sales are up 20 percent and customer retention for vehicle service increased at least 10 percent since redesigning and implementing the …
Ad Age
Returning from a TV ad hiatus of almost a year, Gap is launching a TV campaign in an effort to boost its ailing brand, reports Ad Age. "Jeans Take Shape" launches July 20 and focuses solely on jeans. The ads were created by longtime agency Laird & Partners and are the first of three sets of ads scheduled to launch later in the year. T-shirts and skinny black pants get the royal treatment in future campaign flights.
The Wall Street Journal (paid subscription only)
The rise of "pay-per-click" online advertising, celebrated for turning Google and Yahoo into enormous businesses, is proving a boon for cyberthieves, reports The Wall Street Journal. Hackers are using increasingly sophisticated computer programs to automate phony clicks on Internet ads and then hide the click fraud from detection. This threat, although still small, poses a challenge for Google, Yahoo, and other Internet companies that sell pay-per-click ads and need to assure advertisers that they are paying for legitimate clicks from potential customers. One catalyst has been the explosion of "bots"--malicious software that hackers sneak onto thousands of home computers and …
Promo Magazine
Ben & Jerry's is combining social activism and ice cream sampling with its national Federal Budget Priorities Campaign, meant to raise awareness of the discrepancy between national spending on nuclear arms versus the budget for children's needs, reports Promo magazine. The company will visit seven cities offering samples of American Pie, its new ice cream flavor--apple ice cream with apples and piecrust pieces. Its packaging contains a "food for thought" section encouraging ice-cream lovers to get involved. Inside Ben & Jerry's Scoop Shops, a national postcard-writing campaign will direct customers to send a postcard to their Congress members asking them …
Ad Age
Cincinnati-based Church & Dwight Co. has agreed to pay $325 million to buy Orange Glo International, whose $200 million household cleaning products business is led by Oxi Clean, one of the leading brands in the laundry-additives category, reports Ad Age.The deal gives C&D access to Orange Glo's direct-response TV pitchman Billy Mays and its strong relationship with Wal-Mart Stores, which helped propel the brand to national prominence. Oxi Clean's "pure and natural" positioning is compatible with C&D's Arm & Hammer brand, and gives it a distinct differentiation from category leader Clorox. Oxi Clean also has considerable strength in club stores, …
Wall Street Journal--paid subscription required
To increase business-class traffic by providing the most comfortable flying experience, American Airlines is launching a seat that reclines almost--but not quite--flat. While other carriers, such as British Airways and Virgin Atlantic, already have fully flat seats to mimic a bed-like experience on overnight international flights, American chose the lesser alternative to save room for a lucrative row of business-class seats. This breed of traveler--whose tab can reach almost $10,000 for some trips--is "the big airlines' revenue bread and butter," according to The Wall Street Journal. That's why American is spending $87 million on the new seats alone; United is …
Business Week Online
How does a toy brand like Mattel's HotWheels--which is coming up on its 40th anniversary--remain true to its heritage, yet change with the times? Vice President of Wheels Design Gary Swisher says it only makes sense to add cost-increasing technology to a product that costs a buck if it adds the element of magic. "The biggest thing we grapple with is exciting a kid's imagination," he says. Mattel has big expansion plans for the community element of the HotWheels Web site, which now offers car games, a collector club, and the ability to decorate cars. As for the toy itself, …
Advertising Age
In an attempt to upgrade its coolness quotient for the back-to-school season, Wal-Mart is inviting teens (it calls them "hubsters") to create their own Web pages and submit videos for a chance to win a spot on a Wal-Mart commercial. The social-networking site "School Your Way" is an attempt to close the trend gap with Target. The retailer reserves the right to edit video content, and also gives parents veto power over submissions because Wal-Mart plans to e-mail the parents of every registered teen. Whether this highly sanitized corporate attempt at "we-media" is enough to overcome in-store issues is the …