Jeff Herbert, who joined Aflac as its first CMO last October, is centralizing sales and strategic operations under its marketing department. He has also created a business-to-business marketing practice. The latter will begin outreach to corporations about its workplace disability insurance and other services. Herbert says the changes would enable the sales, product-marketing and channel-marketing groups to become more consumer- and product-focused. Publicis Groupe's The Kaplan Thaler Group--which has handled Aflac's advertising since 1999 and created the iconic duck that quacks the company name in commercials--will continue as its agency for mainstream advertising and "other projects." But Alflac …

Volkswagen is launching a line of high-end lifestyle products like a cashmere wrap and slip-on driving shoes in an effort to woo women to its news Eos convertible. The decidedly upscale line--created by the New York design and branding consultancy, Aruliden--also includes a silk scarf and a rather bizarre coat-cum-two-person-blanket, complete with two head holes for back-seat passengers. There are also plans to introduce in-car items, such as a shoe holder for high heels. There is a dedicated online store, the Eos Boutique, to cut back on retail or distribution expenses. The creators also hope that …

A U.S. District Judge in Brooklyn yesterday ordered that a doctor and lawyer return confidential marketing documents about the schizophrenia drug Zyprexa to Eli Lilly. In his decision, Judge Jack B. Weinstein also chastised a New York Times reporter for his role in the matter. The documents were submitted to support patients who claimed Eli Lilly failed to adequately warn that Zyprexa can cause diabetes and other illnesses. The plaintiffs also said Lilly promoted Zyprexa for unapproved uses. The court had ordered the documents sealed. According to yesterday's order, Times reporter Alex Berenson suggested that David Egilman, a …

Russell Stover candy--long a favorite of the geriatric set--is attempting to update its image with more-sophisticated lines (Urban, Private Reserve), upscale flavors (vanillabean brûlée), trendy packaging (red, alligator-skin-clad hearts) and a new marketing push. Although the marketer--which also owns the Whitman's brand--dominates the box-chocolate category, Russell Stover sales fell 4% last year to $93 million, and Whitman's sales dropped 12% to $41 million. Meanwhile, Lindt and Ghirardelli -- each with less than $5 million in sales in the segment -- skyrocketed 87% and 244% respectively, according to Information Resources Inc. Russell Stover will use extensive TV advertising to …

In an internal report, a top Toyota executive warns that the Japanese automaker could face criticism from consumers and politicians because its U.S. sales are increasing, while Detroit's automakers are losing sales and shuttering plants. Writing that recent market-share gains brings both risks and responsibilities, Seiichi (Sean) Sudo, president of Toyota Engineering & Manufacturing in North America, also says: "Our competitors are jealous of our success." Detroit's congressional allies of GM, Ford and Chrysler say it's not jealousy. They say Japanese automakers are exploiting an artificially weak yen to make their products more affordable. With a new Democratic …

Coca-Cola has reached an agreement with most of the 56 bottlers that sued the company after it began shipping Powerade sports drinks directly to Wal-Mart distribution centers. The warehouse deliveries bypassed a more than century-old franchise system, under which bottlers sell directly to retail stores in their territory after purchasing concentrate from Coke. Sandy Douglas, president of Coca-Cola North America, says that warehouse delivery would be used only for select products at select stores. He says the model is the best way to price products competitively, get them in front of customers in individual stores and reduce empty shelves …

Go-To-Market Reinvention--a program Proctor & Gamble quietly adopted following its acquisition of Gillette in 2005--is resulting in double-digit sales gains and earning plaudits from Wall Street analysts. Thomson Financial projects Procter's per-share earnings to advance by more than 14% in the year, compared with 6% for the S&P 500. Go-To-Market's goal is to sell more products. That means getting a higher number of packages to the retailer, at Mach-like speed, and then making them more desirable once on the shelf. The former means reducing theft and other forms of loss, or shrink--an area where Gillette has considerable expertise. …

Boots, the biggest pharmacy chain in Great Britain, plans to start selling Viagra over the counter on Wednesday--a day that carries the dual designation of Valentine's Day and National Impotence Day. Under the scheme, men age 30 to 65 that want the impotence-fighting drug will have a one-hour consultation with a pharmacist, who will take their medical history and check blood pressure, cholesterol and glucose levels. If no medical red flags are raised, the men can buy four Viagra pills for $97. For a refill, they will have to see a private doctor. Dr. Andrew McCullough, a sexual-health …

TNS Media Intelligence data shows a falloff in General Motors ad spending for the first 11 months of the year, from $2.65 billion in '05 to $2.03 billion in '06--a stunning drop of 24%. GM, however, says the cut was closer to 10%, or a reduction of nearly $300 million. But TNS stands by its methodology, which it says was the same in '06 as it was in '05. Bottom line: the country's second-largest advertiser is demonstrating a shift toward channels such as direct marketing, Web sites, online video, event marketing, branded entertainment and Internet advertising, which are harder …

Payless ShoeSource--the bargain shoe retailer that's seen its fortunes flag in recent year under pressure from Wal-Mart and other discount rivals--is undergoing a makeover. Long known for cluttered, warehouse-like stores, CEO Matthew E. Rubel believes stylish products and spruced-up stores will lure young, hip consumers. Payless is offering trendier products, such as Lucite platform wedges and patent-leather zippered boots by fashion designer Laura Poretzky. Most of its shoes are still inexpensive, but it is also testing pairs that cost $40 or even $60. The company is opening a design office in New York this summer to focus on …