The Wall Street Journal
Vonage Holdings has agreed to pay Sprint Nextel $80 million in a licensing deal that covers past and future use of some 100 patents related to connecting Internet phone calls. Vonage still faces a separate legal battle with Verizon Communications that is considered more serious because the patents at issue play a more fundamental role in Vonage's operations. A pioneer in offering Internet phone service, Vonage has suffered through a flood of negative press and litigation, which have curtailed customer growth. But even before the problems, the company lost money as it spent heavily on subscriber growth. The Sprint deal …
USA Today
TiVo is expected to announce a deal today with RealNetworks under which it will offer the Rhapsody subscription music service to TiVo users who subscribe directly and have their machine connected to a broadband network--about 850,000 of TiVo's 4.2 million existing customers. It's the first step in a TiVo campaign to broaden its audio service and further differentiate itself from in-house DVR offerings by cable and satellite providers. Rhapsody--RealNetworks' joint venture with MTV Networks--gives subscribers access to about 4 million songs that can be played on their PCs any time. Rhapsody's basic service costs about $13 a month, and $15 …
Los Angeles Times/AP
Bobby McKinney--a hard-hat-wearing fire code inspector from Winter Haven, Fla. who wrestled professionally under the name Cowboy Bobby Steel--is making a killing selling perfume, lingerie and women's wrinkle cream at construction sites. He's an Avon man--one of a growing number of male salespeople who are part of a strategic move by the New York-based beauty company to broaden its appeal. Sales to men--and an increasing number of products for them--have helped Avon's bottom line, with sales growing from about $6.2 billion in 2002 to $8.7 billion in 2006. New recruiting brochures picture both men and women. Yankees star Derek Jeter …
Ad Age
The $16 billion bottled water industry--dominated by industry giants such as Nestlé, Coke and Pepsi--is under siege. This summer produced a deluge of headlines about the environmental impact of plastic water bottles, and retail sales (excluding vending machines and Wal-Mart) grew only 9% this year compared with 16% in 2006. Joe Doss, president of the International Bottled Water Association, says the bottled-water industry has been unfairly targeted. In August the association began a PR and advertising campaign to "bring balanced, positive and factual bottled-water information to consumers and community leaders." Individual bottlers are reducing the materials required for their bottles, …
BusinessWeek
Procter & Gamble and Kraft Foods are facing sluggish sales for their hallmark Folgers and Maxwell House brews--and the demographics are moving against them. Only 37% of young adults between the ages of 18 and 24 drink coffee, compared with 60% for those between 40 and 59 and 74% for Americans over 60, says the National Coffee Assn. The problem for P&G and Kraft is that their supermarket brands no longer cut it with consumers who have gotten hooked on the darker, richer brews from Starbucks, Dunkin' Donuts, and even McDonald's. Coffee sold through restaurants grew at a compound …
The Wall Street Journal
Deloitte & Touche's marketing strategy is based on a simple, yet radical, idea: Just as women consumers shop differently than men, businesswomen shop for professional services differently than men. After teaming up with consulting firm TrendSight Group and interviewing senior women executives and Deloitte employees, it concluded that the same discovery process women use when doing personal shopping applies to purchasing business services. A woman might go into a store for black pants, for example--but then see something else she likes and buy that, too, or change her mind. Men just buy the pants. Among other things, Deloitte is also …
USA Today
The right name for a new pharmaceutical can give a drug cachet. The wrong name can lead to serious medical errors. As a result, the drug-brand consulting industry has grown dramatically to help companies name their products, with prices often running from $200,000 to $500,000. It's the job of drug consultants to create a name that's not already taken, won't lead to medical mix-ups, and can help cut through the marketing clutter. "A lot of it is more art than science," says William Trombetta, professor of pharmaceutical marketing at St. Joseph's University in Philadelphia. Letters like Z, M or P …
Brandweek
Smart Balance spread is launching a $40-million marketing campaign this week in support of an expanded product line. It also wants to reach beyond its core base of consumers--who are over 50--to tap into the "healthy lifestyle revolution," says Greg Venner, CMO at Smart Balance. New products include four butter spreads that contain Omega 3, varieties of milk (1% skim, fat free/lactose-free and chocolate), cream cheese, and butter blend sticks for cooking and baking. TV spots for the new butter spreads are set to Jackie DeShannon's 1969 song "Put a Little Love in Your Heart," and feature multigenerational groups …
Ad Age
Procter & Gamble charges in a lawsuit filed Oct. 2 that ads for Kimberly-Clark's Huggies make false claims about the comparative fit and comfort of Huggies compared to P&G products, including Pampers and Luvs. P&G says Huggies new round of ads in the "Brick Baby" campaign imply that Pampers and other competitive diapers are better-suited for bricks than toddlers, despite a May decision by the National Advertising Division of the Council of Better Business Bureaus advising K-C to modify similar ads. Data from Information Resources Inc. show Huggies gaining share consistently on P&G when the ads were running …
Promo
Delta has opened a temporary 3,500 square-foot lounge in midtown Manhattan where consumers can test some of the airline's newest features, including refurbished seats, new menu items and route information. It will be open for six weeks through Nov. 10. People can relax on Delta's all-leather coach seats and the new international BusinessElite seats, which recline into a flat position. Or they can test its in-flight entertainment offerings and watch HBO programs like "The Sopranos" or the latest films. Free coffee and Coca-Cola products will be served. Flight attendants are on site. On Wednesdays, Delta will sample …