CP&B, EURO, BEING MILKA: CP&B
KRAFT NORTH AMERICA will own four largely U.S.-focused brands that compete, to varying
degrees, in commodity categories:
Could Kraft split be a
blueprint for blue chips?
KRAFT from p. 1
keters, looking to drive value in
fast-growing emerging countries.
Firstly, the split says something
about how difficult it is for a mod-ern-day, giant-sized marketer to act
nimbly and respond to changing
“Kraft sort of realized that their
[grocery-] food-product businesses
have just become such a combination of big and commoditized
[brands] that they can’t deliver
what they’ve promised Wall Street,
and when you can’t deliver what
you promised, well, change the
game,” said marketing consultant
Kraft, in particular, has had
trouble merging the Cadbury cul-
ture into its established businesses,
according to people familiar with
the company. Kraft made its name
marketing to moms with brands
such as Oscar Mayer and Jell-O.
But selling the gum and candy in
Cadbury’s portfolio requires acting
quickly to respond to the changing
tastes of teenagers. Cadbury was
“put into this almost old-school,
slow-growth machine that is a real
disconnect from the way these cat-
egories behave,” said one former
A prepaid card good for ...
one full-size frozen pizza?
goods marketers distributed fewer
coupons in the first half of 2011
than they did a year ago, breaking
a three-year run of rising distribution. Pulling back on couponing
amid rising commodity prices
undoubtedly fueled part of that,
but some marketers have been
wary of couponing making consumers more price-sensitive and
bargain-driven. Unlike coupons,
samples get consumers to try
products without training them
SAMPLING from p. 3
to look for price deals.
Mr. Lockwood said Young
America is in talks with several
marketers on the tactic but hasn’t
signed any up yet.
Using the prepaid cards does
appear to offer several advantages
over coupons or traditional direct-to-consumer sampling, said Cindy
Johnson, a former P&G sampling-promotion executive and now
principal of Cincinnati-based
research firm Sampling
“A lot of consumers complain
about the sample size not being
big enough for them to notice the
difference,” she said, particularly
with hair-care or skin-care products that may only be enough for
one or two uses. So full-size samples can be preferable, even if
more expensive, and she has seen
instances of manufacturers distributing full-size samples, generally through retailers, as was the
case with a P&G “Future
Friendly” program in Walmart
stores in April.
“The con is that the brand
ends up paying the retailer price
vs. the manufactured price,” she
said, which can be considerably
have shops crying foul
AGENCY SQUEEZE from p. 1
cies and educate clients on how to
fairly and respectfully treat potential future partners.
“What we see with some
client-led reviews is the original
amateur hour,” said Tom Finneran,
exec VP-agency management
services at the 4A’s. Often, clients
are leading their own reviews as
part of procurement departments’
remit to help choose which agencies a company works with.
“People will take [request-for-pro-posal] forms that they use to [buy]
corrugated cardboard and use that
same RFP to conduct an agency
search, maybe tacking in a few
additional agency questions.” He
recalls one RFP last year that had
281 questions, about 10 of which
were marketing related.
Agencies are also still smarting
from a series of recent open-call
reviews—or as ad folks not-so-affectionately dub them, cattle
calls. There was the Voss water
review that began with a press
release, the Current TV review that
was launched over Twitter, and
Finneran: “Say what
you will about search
consultants … but at
least they understand
the business, and
importance of having
a reasonable list and process and
winnowing it down.”
In the current Best Buy review,
the marketer’s procurement
department issued the RFP docu-
ment. Other accounts up for grabs
that aren’t using a consultant
include Chobani yogurt and the
U.S. Corp. for Travel Promotion.
“As more clients are managing
their own reviews, they are less
aware of the time needed to fulfill
crucial milestones in a review,”
said Ken Robinson, principal at
reviews are plain
says 4A’s exec.
Ark Advisors in New York.
“That’s why they might ask for a
response in three days. … We had
a client that wanted final presen-
tations to be done December 26,
and we told them that wasn’t
And, he added, “if a client is
leading the review themselves,
chances are they aren’t going to
think to offer a stipend.”
“I can see the frustration with
consultants seen as being a buffer
[between the agency and client]
… but sometimes you could argue
face time—if you’re not getting
paid for the work—isn’t good
either,” said Lauren Crampsie,
chief marketing officer at Ogilvy.
The complaints have spurred
the 4A’s to approach the ANA
about the issue, and now the
groups are working together to
develop best-practice guidelines
for agency search.
they use to [buy] corrugated
cardboard and use that
same RFP to conduct an
“We are doing that because
there is an acknowledgement—by
both advertisers and agencies—
that search practices aren’t being
conducted as efficiently as they
should be,” said Mr. Finneran.
And [lack of] efficiency isn’t just
costly to agencies, it’s also costly to
advertisers because their manage-
ment will become distracted if
pitches aren’t conducted well and
it adds to agency cost.”
The guidelines are set to be
issued in the fall.
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