The Wall Street Journal (subscription required)
Lexus, Toyota's posh nameplate, is undergoing a makeover intended to transform it from a respectable-but-boring brand into one associated with the biggest names in luxury, like Louis Vuitton, Prada and Gucci. Known for its ultra-conservative culture, Lexus is introducing a slew of new vehicles costing more than $70,000--nearly twice the price of its best-selling RX SUV. It deployed a "super affluent team," a group that traveled the country asking the ultra-rich what they want. It is throwing lavish parties around the country, and cozying up with brands like Vogue and Neiman Marcus stores. Lexus's somewhat nerdy image dates …
The New York Times
T.G.I. Friday's--a chain known for calorie-rich items like deep-fried potato skins stuffed with Cheddar cheese, bacon and sour cream--is gambling that diners will order what it calls "Right Size" portions that average about two-thirds the size of the usual serving. Richard Snead, CEO of the chain's parent company--Carlson Restaurants Worldwide--says many consumers are tired of huge portions, especially on weeknights or at lunch when they do not want to indulge. But he admits that his move toward smaller portions is "scary." Many restaurateurs remember what happened to the Ruby Tuesday chain in 2004 after it trimmed some portions …
St. Paul Pioneer Press
General Mills better-than-expected quarterly results came from some unusual sources: its natural-foods unit, international customers, a bevy of new product launches, and from convenience stores and food-service providers. Plus, it got help from Oprah Winfrey, whose popular "Best-Life Diet" includes so many General Mills products that the company believes it made a difference in third-quarter sales. The book was written by Winfrey's personal trainer. CEO Steve Sanger noted that the quarter is historically strong for healthier food products, "but we think they did a little better, after that "Best-Life Diet" came out." The company has launched …
Los Angeles Times/Financial Times
Private labels--whether offered by deep discounters, supermarkets or fast-fashion stores--are increasingly menacing the once-comfortable world of the premium-brand owners, according to "Private Label Strategy," a new book by Professors Nirmalya Kumar of London Business School and Jan-Benedict Steenkamp of the University of North Carolina. Private labels can compete effectively in almost any product category. The authors identify four types of private labels: generic, "value" category; the copycat brand, which apes the qualities of a premium brand; the premium store brand, which may be sold at the same or even a higher price than those of other manufacturers; the "value …
Chicago Tribune
Mary Dillon, McDonald's executive vice president and global chief marketing officer, is not only crafting campaigns for the Internet, mobile phones and other alternative outlets, she's also expanding the company's licensing strategy. Dillon is breaking away from Disney movies to make promotional deals for films such as "Shrek the Third." The marathoner and mother of four refers to the strategy as the "I'm lovin' it" next-generation program. Since joining the company 18 months ago, Dillon and her team of marketers have shifted the focus of the slogan from the personal "I'm" at the beginning to the "it" at the …
Ad Age
Crispin, Porter & Bogusky, which produced the "Man Laws" campaign for Miller Brewing Co., resigned the business yesterday, citing "fundamental differences over creative and strategy." It was the agency of record for both Miller Lite and Miller High Life. Crispin said "Man Laws" was an attempt to build "social currency" for Lite, using humorous concept spots starring celebrities such as Burt Reynolds and football star Jerome Bettis. The ads generated buzz and seemed to penetrate pop culture, but Miller Lite sales declined during 2006 as sales for rivals grew. Miller scrapped the Man Laws campaign in January. …
International Herald Tribune/Bloomberg News
Mark Parker, a designer who became Nike's CEO in January 2006, has created a new marketing structure.Teams are focusing on six main categories: running, soccer, basketball, men's training, women's fitness, and sports culture, which the company defines as products for casual wear rather than athletic performance. The shift came as Nike lost market share to Under Armour, which sells tight-fitting, sweat-wicking athletic clothes. Under Armour gained ground by focusing on high-school football players year-round, while Nike wooed them only during football season. In 2005, Parker called Apple CEO Steve Jobs with the idea of synchronizing running shoes with …
Promo
The Federal Communications Commission banned from the airwaves new Dove Pro-Age commercials that feature women over 50 because they "implied nudity," says Maureen Shirreff, group creative director of Ogilvy & Mather Chicago. The Pro-Age campaign, which launched last month, is a continuation of Dove's Campaign For Real Beauty, which began in 2002 and has won wide praise for depicting real women in advertising. "They [the FCC] wanted to see some presence of clothing," Shirreff says. "They were really nice, and we don't fault anyone." O&M and Dove felt that it would be impossible for the spots to be edited--as …
The Wall Street Journal (subscription required)
After an 11-year effort to gain traction in the U.S., Major League Soccer has done a lot more in recent months than sign David Beckham--the sexy 31-year-old British midfielder and global marketing icon--to a five-year contract with the Los Angeles Galaxy. Today, the Galaxy will announce a jersey sponsorship deal with Herbalife Ltd.--the Los Angeles-based nutrition-supplement company--which will pay the club between $3.5 million and $5 million a year through 2011. The pact is the second uniform deal signed since last fall, when the league changed its rules to allow advertising on the fronts of jerseys. Other …
The New York Times
Edward J. Zander, the chairman and CEO of Motorola, faces two somewhat contradictory tasks. In the short term, Motorola's best hope for a quick turnaround is coming up with a new breakout product like the slim Razr V3, which was introduced in 2004 and went on to become the cellphone industry's equivalent of "Star Wars." In the long run, several analysts suggest that Motorola needs to turn away from the hit-driven business model. The Razr was largely the creation of Mike S. Zafirovski, who was brought in from General Electric in 2000 to revive Motorola's handset business. But after …