The Washington Post
Dunkin' Donuts plans to open 10,000 new stores around the U.S. by 2020. It also intends to add 325 stores in Washington, D.C. and Baltimore by 2010. A similar announcement has already been made in Chicago, and several more are in the works around the country. Dunkin' Donuts currently has 4,400 stores, compared with 8,600 for the more upscale Starbucks. The company's carefully orchestrated media and ad blitz has fueled conversation about the expansion, but also leaves coffee drinkers wondering: How much more do we need? "People have been predicting that we'd hit a saturation point two years out for …
The Wall Street Journal (Subscription Required)
Wal-Mart Stores is attempting to goose sluggish same-store sales by breaking the one-store-fits-all mold--a radical departure for the world's largest retailer, which built its empire on the strength of standardization. It is divvying up its approximately 3,400 U.S. stores into six different models, targeted to corresponding demographic groups: African-Americans, the affluent, empty-nesters, Hispanics, suburbanites and rural residents. Eduardo Castro-Wright--chief executive of the company's U.S. stores and architect of the new approach--beefed up Wal-Mart's marketing department several years ago, adding Ph.D.s in areas such as ethnology, food science, and research and evaluation. The department began researching its shoppers last year, using …
Adweek
As 400 Federated Department Stores convert to the Macy's name, giving the venerable department store a national footprint, it is rolling out a new campaign featuring a re-creation of the Martha Reeves and the Vandellas hit "Dancing in the Streets." The spots depict young, multicultural, Macy's-clad consumers dancing through their daily lives against a backdrop of city skylines (including New York, St. Louis, Chicago and Los Angeles). Macy's signature red color scheme and the star on its bag are prominently featured. "Now wherever you are, there's a Macy's near you," a voiceover says. The company's familiar tagline, "Where to shop," …
The Wall Street Journal (subscription required)
Although Hershey told financial analysts a few weeks ago that it expected a strong second half, preliminary data from checkout-counter scanners suggest that its sales may be weakening. It is facing stiff competition, particularly from perennial rival Mars Inc., as it pushes to expand sales into new channels. It struck a deal to put its candies in 1,700 Home Depot Inc. stores around the country. One concern involves Hershey's abilities to improve sales through convenience stores, where the brand only gets about 16 percent of its sales. Convenience stores are a growing source of candy sales and are a hot …
The Wall Street Journal (subscription required)
Anheuser-Busch intends to launch an online entertainment network containing at least seven types of TV-quality programming the day after the Super Bowl. Targeted at young men 21-34, many of the offerings will be dedicated to sports, but will also include stand-up comedy and original series. "Replaced by a Chimp," for example, shows what happens when a chimp replaces a human in the workplace. Another venture, "The Dating Game," is an online reality show that will begin casting calls in bars in November. Most of the shows will have an interactive component; "Bud Tube" lets consumers create their own beer ads. …
The Journal News
The potato chip, in a smorgasbord of international flavors, is one of the salty snacks propelling the growth of PepsiCo overseas. The regional seasonings for the sliced-up spud range from seaweed in Thai markets to Peking duck in China. Lays Mediterraneans, a line fried in olive oil and offered in flavors such as feta cheese and tomato-and-basil, does well in South America. PepsiCo's portfolio of overseas products is highly diverse, reflecting the tastes of different cultures. Seeds and nuts are popular in the Middle East, while sunflower seeds are favored in China. Turks like to snack during teatime; crackers flavored …
Adweek
Eastwest Marketing Group, the New York-based independent agency, won the creative and promotional portion of the Bally Total Fitness account. Bally--based in Chicago, where Eastwest maintains an office--runs 420 fitness facilities in the U.S., Canada, Mexico, Asia and the Caribbean. Eastwest is charged with building the brand in traditional above-the-line media, as well as below-the-line activities, including national promotions and guerrilla marketing campaigns. Various shops and the client's in-house marketing department previously handled the assignment. Bally's last major national campaign--"Meet your potential"--depicted eight people describing their reasons for getting fit. It was produced in-house, and launched in January. Bally spent …
The Miami Herald
Fruit and vegetable growers are attempting to boost sales to kids by licensing popular cartoon characters, such as Mickey Mouse, the Tasmanian Devil and SpongeBob to market their wholesome--but not always popular--products. The characters are popping up on packages across the country. "We're doing it predominantly because it is the right thing to do, but secondarily, because it is the right business to be in," says Harry Dollman, head of food products licensing for Disney, which has the largest presence in produce aisles. Imagination Farms, which distributes produce for 15 large growers across the country, currently has more than 30 …
Brandweek
In an effort to cater to harried consumers, Domino continues to expand its offering this fall with new side dishes and desserts including ribs, potato wedges and oven-roasted brownies that come free with an order of large pizza. "Every macro trend I see is people are busier than ever and are looking for convenience," says Ken Calwell, CMO at Domino's Pizza, Ann Arbor, Mich. "I have a long list of things people want delivered to them." Calwell has put a strong emphasis on product development since assuming the CMO role in 2001, including cheesy bread, bread sticks, buffalo wings, Cinna …
Los Angeles Times/Financial Times
Nestle CEO Peter Brabeck-Letmathe has committed the world's biggest foods group to increasing sales by 5 percent to 6 percent a year, excluding acquisitions. In a marketplace that's only expanding by 1.5 percent annually, he determined that developing healthier products and adding health-oriented services is the best way to boost growth. Nutrition has been upgraded to full divisional status, putting it on a par with mineral waters and Nestle's other divisions, which are defined by geography, not products. In Germany, Nestle has started a "nutritional institute" to advise people on dietary issues. In France, the company runs a nutritional home-care …