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Recently Revised Profiles and Snapshots

In the news this fortnight: Advertisers

Rock star Bono has assembled an impressive line-up of partner marketers to support Red, the new multi-brand initiative established by his Global Fund to fight Aids, tuberculosis and malaria. Companies already signed up include American Express, whose new Red credit card will contribute at least 1% of your monthly spend to charitable causes; Gap, which is launching a special Red collection of garments this Spring; Emporio Armani, which is selling a pair of specially designed Bono-style sunglasses; and Converse, which is contributing a new one-off sports shoe. The Fund this week appointed Mother to handle advertising for Red.

Brent Redstone, eldest son of Sumner Redstone, the 82-year-old entrepreneur who built up the Viacom empire, this week filed suit against his father's personal holding company. Redstone elder split Viacom into two separate businesses earlier this year. One retains the Viacom name, the other is CBS Corporation. Both are controlled through Redstone's National Amusements holding company, also a major cinema owner in the US. Redstone younger already has around a sixth of National Amusements' equity in his name and is said to earn a handsome annual salary and dividend from the company. But he is currently prohibited from selling any of his shares, and his lawsuit seeks to change this restriction. Most observers believe the action to be motivated primarily by bruised pride. Brent has for several years been sidelined in the family business in favour of his younger sister, Shari. Clearly designated as Sumner's heir apparent, she is president of National Amusements as well as vice chairman of both Viacom and CBS.

Samsung Group this week apologised for a series of financial scandals that have muddied its reputation in Korea in recent years. It offered to make amends with a huge donation to local charities worth around $850m. The group also said it would withdraw its opposition to government initiatives designed to further reduce the power of the country's family-owned "chaebol" conglomerates. 

Merrill Lynch agreed to merge its investment management subsidiary into independent fixed income specialist BlackRock, in return for a controlling stake in the enlarged company. That deal will boost Merrill back into the upper ranks of global financial institutions, with combined assets worth over $1 trillion. In other deal news, DIY giant Home Depot is planning a move into China, a market in which it has for several years expressed interest. It is said to be negotiating a stake of up to 49% in Orient Home, currently the leading player in China's fast-expanding home improvement market. Its chief rival in China is Kingfisher's B&Q. Also this week, the consortium which owns German broadcast giant ProSiebenSat1 has withdrawn the business from sale, at least for the immediate future. A deal to sell to Axel Springer was blocked last month by German regulators, and talks with other buyers proved unsatisfactory. 

As had been expected, Sony BMG's chairman and CEO have swapped roles. Bertelsmann's representative Rolf Schmidt-Holz, formerly chairman, takes over as CEO. Andrew Lack, a Sony appointee, was transferred into the position of chairman. The swap follows several months of disagreement between Sony and Bertelsmann over Lack's management style.

There was another clutch of full year financial results for 2005. Results from Danone, France Telecom, Omnicom and Beiersdorf were all good. Reynolds American was encouraging. 

In the news this week: Agencies

Two rankings from recently launched monitoring agency The Won Report revealed the most awarded direct marketing and digital agencies in 2005. Proximity London was the most awarded DM agency, supported by Saatchi & Saatchi Singapore and CP Proximity in Spain. Most awarded networks were OgilvyOne, Proximity and Wunderman. Most awarded digital agency was Crispin Porter & Bogusky, with Goodby Silverstein and DDB Brazil as runners-up.  

Reflecting buoyant conditions in the luxury goods sector, two London agencies have announced the launch of specialist inhouse units. M&C Saatchi will unveil its unit later this year, with an expected title of M&C Lux; Miles Calcraft Briginshaw Duffy's satellite began operations this week under the name Brand Couture. The luxury marketing sector is already big business in France, where several agencies run dedicated units, of which the best known is probably the Luxe division of BETC Euro RSCG. These are the first two agencies set up in the UK specifically to specialize in the sector.

WPP's legal department has its work cut out at present. The investigation into possible corruption in Italy involving a former staff member widened further this week. Meanwhile, WPP is now having to fight an unconnected lawsuit in the US against Richard Desmond, the notoriously litigious owner of Express Newspapers and OK! magazine. WPP's Mediacom subsidiary was appointed to handle media for the launch of Desmond's OK! in the US, and last week filed a suit against the publisher for non-payment of bills. Desmond this week responded with a $5.5m claim for breach of contract and damages. He claims WPP encouraged him to spend more than he budgeted on the launch by promising to help find buyers for advertising pages in the titles, but then failed to deliver. Mediacom adamantly denies any such arrangement.

In the UK, DDB lost its business from cereal marketer Weetabix. Rather than follow Paul Hammersley to Frank Lowe's Red Brick Road agency as had been expected, Weetabix moved across to WCRS. In other UK changes: Allied's Kingsmill and Allinson's bread brands moved from JWT to M&C Saatchi; The Post Office reappointed Publicis and Joshua. Elsewhere, Adidas and Reebok announced a global media review following their merger; Exxon Mobil moved its corporate account to Euro RSCG New York; Mother's New York office picked up creative for Johnson & Johnson's Rembrandt oral care brand; and in France, Heineken moved media to KR Media and Virgin Mobile appointed MindShare.

Regards


Simon Tesler
Publisher, Adbrands

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Recommended Reading

UK & European users

Two essential primers on the power of using words effectively to communicate with customers. Simmons is a well-known branding and communications consultant and has a particular interest in language. The Invisible Grail is more specifically marketing-oriented, exploring different strategies for using verbal brand identity to engage with audiences. Simmons aims to challenge the now accepted truism that a striking image is worth a thousand words of advertising copy, and updates more traditional ideas of the power of well-crafted copy. That doesn't mean a return to the sort of text-heavy ads with which David Ogilvy made his name in the 1950s, but a careful use of language to deliver more effective brand stories. He illustrates his point with a number of effective examples, often from smaller and more innovative marketers who have used clever verbal technique to make up for the shortcomings of a more limited advertising budget. They include Innocent Smoothies, Ben & Jerry's (pre-Unilever), and Lush soaps as well as bigger brands such as Guinness and Egg. 

We, Me, Them & It is also about using language for marketing, but in a more intrinsic way as part of everyday business communication. Simmons offers ideas and techniques for creating more effective dialogue between companies and individuals - not just their customers but also their own employees - by stripping out unnecessary barriers to understanding in everything from signage to internal memos and external letters to customers and clients. As Simmons explains, "it's clear that the competitive business environment is about out-thinking others in the marketplace. How do we think? Primarily we think with words. If we think well, we write well. If we write well, it's good evidence that we are thinking well." Or as David Ogilvy once put it: "Knowledge is useless unless you know how to communicate it - in writing." Both books are essential reading for anyone involved in the business of verbal communication. 

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