Best-Promoted Brands of 2001
“BUSINESS AS USUAL.” It’s a phrase most-often used to put a positive spin on a tenuous situation, as in, “The bank called in our loans, our ceo has been indicted, and our overseas plant has been captured by radical separatists. Otherwise, it’s business as usual here at the company.”
In marketing, however, it has been business as usual in 2001 — but in a good way. For while ad buys have been reduced and budgets have been cut, there hasn’t been any drop in the number of messages being presented in the marketplace. As far as consumers know, it truly is business as usual (no matter how many unemployed agency execs may understandably argue otherwise.)
Thus,PROMO‘s editors have been watching a steady flow of campaigns hit the street this year. As usual, we try to examine each one we encounter both viscerally and scientifically, to judge the impact it will have on consumers as well as the strength it has as a marketing strategy. And whenever possible, we go back to get the results, to see if we — and the people responsible for the campaign — were correct in our assumptions.
For the second straight year, we decided to sift back through the files and pick our favorites — the brands that captured our attention most often or, in a few cases, grabbed us by the throat once or twice. What we found were 25 brands that have kept their shoulders to the wheel, their noses to the grindstone, and their hands on the checkbooks in 2001 that rose above the “down economy” and produced great marketing — as usual.
Readers with good memories will note that we scaled back our endeavor this year, cutting our selections in half. Hey, we had to make some concession to the economy.
Without further ado, PROMO‘s Best-Promoted Brands of 2001.
AMERICAN AIRLINES
Why: At age 20, its AAdvantage frequent-flier program has a steady stream of partners and 43 million members (and more to come when TWA’s Aviator service merges this fall). In July, it launched buyAAmiles and giftAAmiles, programs that let AAdvantage members purchase their way to upgrades. The offerings “have taken off like a rocket. We sold one million miles in the first two days,” says Bruce Chemel, president of AAdvantage marketing programs. American extended its reach through alliances with outside brands including Kellogg, America Online, and MCI. Promotional delivery has been enhanced by the Internet: An e-mail campaign with Hyatt Hotels scored a 12-percent click-through rate. Elsewhere, Dallas-based American promoted its additional-legroom initiative with a sweeps giving away the seats removed from cabins. (A variety of agencies handle.)
BALLY TOTAL FITNESS
Why: Because its alliance-based strategy not only extends the health club chain into alternate channels, but provides another revenue stream as well. Deals with such blue-chip partners as Kraft Foods, Pepsi, Kellogg, Sprint, Kodak, Gatorade, Sunkist, and Unilever’s Dove have put the brand message in front of potential customers, but also provided more amenities for existing members. “The real untapped resource for us is the strength of our membership base,” says chief operating officer Paul Toback. On-pack trial-membership offers (part of most CPG deals) bring typical redemption rates but good exposure for Chicago-based Bally, and a high-perceived value for its partners. “We’re putting $25 offers on products under $4,” Toback says. Retail stores in 350 of the chain’s 400 fitness centers make it a good distribution partner, too.
BMW
Why: What to do when you don’t have James Bond to drive? Give five Hollywood directors $2 million apiece to create the much-praised Hire Films Series, online shorts starring both BMW autos and major stars. “It demonstrates for us that there are additional roads to explore,” especially when 85 percent of prospects check the Information Superhighway before buying, says vp-marketing Jim McDowell. Woodcliff Lake, NJ-based BMW was by no means a one-trick pony, however: It got heavy play on cable network VH1 in July by teaming on a sweeps delivering one Z3 Roadster per day for the entire month, and did some fulfilling cause work with the Susan G. Komen Breast Cancer Foundation. Next up: Online videos for the 7-series that will be downloadable to PDAs. But p.s. Bond should be back.
BUDWEISER
Why: Because it’s everywhere, but never takes its mammoth marketing budget for granted. St. Louis-based Anheuser-Busch backs its flagship suds with one of the most comprehensive marketing mixes around, but tweaks by region, trade account, event, and demographics. The world’s largest sponsorship portfolio ranges from the esoteric (drag racing) to the universal (NFL). The traveling Bud World delivers entertainment and education experiences across the U.S. Continuous on-premise events (a Wild On Bud promo linked to E! Entertainment Television is hitting bars in 32 markets) let the brand say “whassup” to consumers everywhere. “We tie it all together and try to dominate at retail,” says group vp-premium brands David English. “We’re always out there trying to strike a chord with the consumer.” (A number of shops handle.)
CENTURY 21
Why: For giving a ho-hum category like real estate a shot in the arm. The Parsippany, NJ-based broker “went yard” with its third-annual Century 21 Home Run Derby Sweepstakes, which has become a major attraction at Major League Baseball’s All-Star Game. This year’s effort yielded 250,000 entries, and its eight finalists got as much ESPN air-time as the all-stars themselves. “The Derby has become so popular that it feels like the crown jewel, rather than the All-Star Game,” says executive vp-global marketing Steve Savino. “We’ve had some great moments in the past, but I think this year was the best.” Off the diamond (but not out of the clouds), Century 21 goes the nostalgic route musically by sponsoring Ringo Starr and His All-Starr Band. BFG Communications, Hilton Head, SC, handles.
CINGULAR
Why: Because the newbie wireless brand’s strategy is light on technology and heavy on “self expression.” A year after 11 providers merged into the second-largest wireless provider, Atlanta-based Cingular continues to recruit talkers with marketing that is constantly being reviewed and adjusted. “Everyone takes himself too seriously in this category,” says chief marketing officer Virginia Vann. “We’re trying to have a lot of fun.” A holiday partnership with Simon Property Group served lap time with Santa (and a photographer) in malls. Pitches to Hispanics are getting play through a Web site and a Fiesta tour with Sears. A Special Olympics sponsorship trades donations for sign-ups. Cingular’s also sponsoring NASCAR and NCAA hoops. BBDO, New York City, handles, with sponsorship elements from Velocity Sports & Entertainment, Westport, CT.
DISNEY
Why: Mickey ubiquity. The Mouse House excels at partnerships. Take Kellogg: Kid cereals tied to October’s Monsters, Inc. scream when opened; tamer brands get talking-mirror displays for the Snow White and the Seven Dwarfs re-release. Disney parks and cruises are always in the prize pool, despite the trend toward one-of-a-kind giveaways. Media holdings from ABC to Radio Disney play promos right: Radio Disney’s free family concerts (Baha Men, Aaron Carter, and Krystal) have marketing zones for sponsors (Wrigley, Hershey, sister Buena Vista Home Entertainment). Burbank, CA-based Disney embraces CRM through a database of 31 million households gleaned from five divisional databases. First tailored pitch is Disney Club: $40 a year for discounts, special merchandise, and show previews. This fall’s 100 Years of Magic highlights the original core asset: Walt.
FARMER JACK
Why: The Detroit-based grocery chain has gained national attention by doing exactly what all retailers want to: carefully mine its customer base to develop offers that meet lifestyle needs both in the store and in the community. The blueprint for its award-winning Baby Bonus Savings Club is now used to reach health & beauty buyers (as well as by parent A&P and competing grocers). A deal with Northwest Airlines to offer miles for grocery dollars has participants spending 25 percent more than they did before; discount tickets to local parks and events generate loyalty and goodwill. The latest effort is a store-wide Guaranteed Fresh or It’s Free offer. “Not all of these programs appeal to the whole [customer base],” says vp-advertising and marketing Paul Coleman. “But you add them up, and you start getting close to the whole.” Mars Advertising, Southfield, MI, handles.
FOOD NETWORK
Why: Because the little cable network is drawing millions of consumers out of the living room and into the kitchen. The programming mix is sautéed with promotions that reel in viewers from a variety of demographics. An on-air sweeps last winter sent celebrity chef Emeril Lagasse to a school for a day as a cafeteria cook (“Bam!”), while a Taste the Adventure effort this summer put a winner and friends on a private jet for a three-stop trip serving gourmet experiences. “We are not just a cooking network,” says Adam Rockmore, the New York City-based network’s vp-marketing. “We are a lifestyle network, and doing Taste the Adventure was about communicating that to people in a big, big way.” A Super Bowl tailgate push rolls out this fall.
GUINNESS
Why: Because it keeps weaving deeper into the lives of its cultish customers. Stamford, CT-based Guinness Bass Import Co.’s flagship brand mixed it up in 2001 after a year of research: The long-running Win a Pub campaign was replaced by an Unlock the Gates endeavor serving first-time tours of the Dublin brewery. The annual Flead Irish concert was supplanted by sponsorships of Lit, Papa Roach, and Big Head Todd. The launch of a paid loyalty program called the 1759 Society was gutsy, but drills right to the customer core. A blitz breaks this month for a new bottled line of Guinness Draft. “The connection consumers have with our brand allows for deeper promotions,” says brand strategy manager Leslie Arcesi. “We’re not like other beers.” Colangelo Synergy Marketing, Darien, CT, handles.
HAPPY MEALS
Why: The promotion grew up into a brand, and now also feeds tweens — and adult psyches. Happy Meals made the ranks when Oak Brook, IL-based McDonald’s Corp. broke a stylish image campaign selling parents on the emotional value of a promotional meal. Print and TV (via Leo Burnett USA, Chicago) soft-sell the current promo offer while branding stays consistent from flight to flight. “We see it as cementing our emotional relationship with parents,” says R.J. Milano, McDonald’s vp-marketing U.S. “There’s no longer the thinking that you have to hit consumers over the head with a hard-sell retail spot.” Mighty Kids Meals launched in March with bigger entrées for kids eight to 10. (Toys, drinks, and fries stay the same.) Simon Marketing, Los Angeles, handles with an assist from Marketing Store Worldwide, Oak Brook, IL.
JIM BEAM
Why: It doesn’t make its winners drink alone. Deerfield, IL-based Jim Beam Brands has been throwing intimate bashes for young men since its 1999 repositioning as a guy’s best friend. Two summer sweeps awarded trips for four: Throw Down the Rock sent a quartet to New York City to play basketball with band Papa Roach, then hang with NBA Hall of Famer Walt Frazier. Real Deal sent a foursome to Las Vegas via private jet with Playboy Playmates on board, providing a weekend suite and $20,000. Communicator Worldwide, Chicago, handles. “Anyone can send someone to the Bahamas. We want to create an aura that’s relevant, [so we ask], ‘What do guys want to do on a free weekend?’” says vp-global brand management Tom Maas.
JVC
Why: It has cranked up the volume in the rebate-driven consumer electronics category with an eclectic array of campaigns for all ages. The longtime JVC Jazz Festival sponsor went down home with the Fender Catalina Island Blues Festival, then launched a loyalty program featuring bad-boy rockers and extreme-sports champions as spokespeople. A $40 million deal with New Line Cinema’s Lord of the Rings trilogy will spawn a variety of campaigns, including customized SKUs this fall. Wayne, NJ-based JVC is even tapping into eating and travel habits, placing Domino’s Pizza coupons in-pack and co-sponsoring Mexico’s Foxploration theme park. “If you think that the only people who can buy your products are an older demographic, you’re missing a lot,” says color TV unit vp Michael Holmes. (The company uses multiple agencies.)
KIX
Why: Because Minneapolis-based General Mills gambled twice and won, choosing evergreen over fad and betting that a long-term tie-in would produce better than a limited-time offer. Kix’s two-year sponsorship of PBS’s animated Clifford series (inked with property owner Scholastic last October) has turned cereal boxes into mom magnets. “It’s a rare situation to do something like this,” says Big G promotions planner Mistie Psaledas. “But the equities matched up so well.” Since debuting on-pack (and on-air) last fall with a plush-toy self-liquidating offer, the Clifford run has featured a video SLO in March and activity books shrink-wrapped to boxes in May. Next month, Kix serves in-pack finger puppets. The promotions change, but the canine doesn’t: Increased sales volume has earned Clifford permanent on-pack real estate. Mills handles in-house.
MINUTE MAID
Why: Because Coca-Cola’s orange juice division is real picky, deftly squeezing a small marketing budget to make big campaigns. This year, Houston-based Minute Maid leveraged its SPY kids tie-in across all channels via on-pack promotions, online games, and retail trade activity. One sweeps had kids crafting their own spy devices out of Hi-C cartons (the winning gadget will appear in the sequel), while another offered a walk-on role. (CDM, Newport Beach, CA, handled.) “We focus on a few programs instead of constantly being out there, and are specialized in what we do,” says promotions manager Chris Bearinger. Watch out for more magic this fall as it rides Coke’s exclusive tie-in with Harry Potter.
NICKELODEON
Why: Because its marketing alliances get smarter and stronger with age. New York City-based Nick’s promotions group is striking deeper deals these days, adding multi-million dollar pacts with Embassy Suites and the Islands of the Bahamas to already-established relationships with Ford Motor Co. and Kraft Foods. Nickelodeon is everywhere and anywhere kids want to be — and in some cases, where they never were before. Some 2001 milestones for the Viacom-owned company: Slime Time Live from the Bahamas and The Rugrats 10th birthday, the latter celebrated with a sweeps and all-time ratings highs. “It’s been a great year,” says senior vp-promotions marketing Pam Kaufman. “It will be hard to top, but I think we will do a good job at it.”
PAMPERS
Why: While it’s playing the traditional game in the aisle — licensed character images, on-pack sweeps — it’s taking parent P&G’s online mandate seriously with a Web site offering child-rearing (ahem) info that goes way beyond the diaper. Launched a year-long Pampers Perks continuity program in February, offering merchandise from marketing partner Fisher-Price; in summer 2001, it staged an on-pack instant-win game for a mini-van filled with product and an online sweeps for $20,000 in scholarships. It also demonstrated the uses of new brand extension Bibsters with a Messy Eater video contest and sweeps that included a referral offer for more entries. “After 40 years, we’re still finding fresh, new ways to reach and meet the needs of parents,” says brand spokesperson Lisa Hulse Jester.
PEPSI-COLA
Why: For keeping it fresh, even if it’s old. Signing teen queen Britney Spears as a ubiquitous spokesperson was a major coup for Purchase, NY-based Pepsi (one that made rival Coke’s subsequent deal with Christina Aguilera seem like catch-up). Got the promotional ball rolling for Wild Cherry Pepsi with an on-pack instant-win sweeps tying into summer hit Tomb Raider. Found that last year’s resurrection of the Pepsi Challenge was a good move, so ran it out again in 2001. Next up will be round two in its alliance with Yahoo on PepsiStuff.com. “We really made inroads on the Internet this year,” says Craig Coffey, vp-marketing. “Now, we can directly communicate with our consumers.” And with Britney’s face, they’ll probably listen. TLP, Dallas, handles the bulk of promotion work.
QUISP
Why: It holds the kitsch niche. With a marketing plan born on eBay, Chicago-based Quaker Oats Co. followed the lead of fans to boost a mature brand. Auctioneers got $20 per box, thanks to ‘70s nostalgia. So Quaker put a storytelling ad — Quisp’s first ad in decades — on-pack, with the ending posted at quisp.com. (True to the brand, it’s rife with puns.) Guerrilla displays put pallets in random stores; when supply is gone, it’s gone. (Only six grocery chains and netgrocer.com carry the product.) “It’s not just about Quisp, it’s about the quest for Quisp,” says Pat Culligan, brand manager during the first-quarter campaign. Sales jumped 65 percent to $456,496 for the 52 weeks ended June 17, per Information Resources, Inc. Given its slim budget, Quaker is happy with the return.
SHREK
Why: Not only is it the year’s box-office smash ($255 million and counting), but it proved that Glendale, CA-based DreamWorks can pull off a boffo marketing tie-in campaign. Partners took a gamble on an unknown property and came out winners: Baskin-Robbins ran cause-related Shrek nights and put the ogre on its menu, H.J. Heinz Co. tied premium offers to green ketchup, Burger King moved kids’ meals with toys, and Kroger handed out tickets through a continuity club. Also along for the ride were Chevron, American Licorice, and toy licensee McFarlane Toys. “The characters were innovative and lent themselves so well to promotions,” says Anne Globe, DreamWorks consumer products marketing and national promotions chief. Expect partners to keep knocking — for Shrek’s November video release as well as future properties from the studio.
TACO BELL
Why: For chutzpah. In its battle with the burger chains, Irvine, CA-based Taco Bell scrapped its steady diet of movie tie-ins to try some new ingredients. Dropped a 40-foot-by-40-foot branded target in the South Pacific in March, promising one free taco to every American if the Mir space station struck it on the way down. After staying in touch with Hollywood through a Tomb Raider tie, signed a product placement deal with new Fox series Murder in Small Town X. Most ambitious of all is this fall’s partnership with Microsoft Corp. for the launch of the Xbox videogame console. “We look for opportunities that are relevant to our target audience [and] consistent with our brand essence,” says Debbie Meyers, vp-media services, entertainment, and licensing. Wunderman, Irvine, handles.
TARGET
Why: It makes packaged goods fashionable. Target Corp. makes it look easy: Just put these flood pants from Juniors with that Tide box from grocery and you’re stylin’. It’s hot branding — the Retail Advertising Marketing Association named Target ads Best in Show seven straight years — and it’s savvy co-marketing. National brands pay at least part of the media freight (most through co-op funds) to appear under the trendy halo. “Some contribute money, and some don’t,” says chairman-ceo Bob Ulrich. As the chain expands from 1,000 stores in 2000 to 1,954 stores by 2011, smart brands will piggyback ads and merchandising. Good-neighbor programs like Take Charge of Education and Tiger Woods’ Start Something will tally $86 million in grants this year, with most of it going back to stores’ own neighborhoods. Bull’s-eye.
UNITED AIRLINES
Why: Integration has taken flight as the Chicago-based airline seeks to “connect on a more personal level” with customers and use promotion as a proactive revenue-generator rather than a “reactive” response to market conditions, says vp-advertising and communications John Kiker. United began the year boosting College Plus enrollment 120 percent by partnering with Coke on a new-music fueled campaign, then jump-started its new Hong Kong service from New York through a regional tie-in with Kenneth Cole. Next up are activation of a four-year US Open tennis sponsorship (signed after a study of business-flier interests), promotional extensions of its current ad push (from Minneapolis-based Fallon) for newly launched airport amenities EasyCheck and EasyInfo, and a plan to make the brand’s Olympics “really work,” says Kiker. Frankel, Chicago, handles.
VANS
Why: Because few companies are better tapped into the teen scene. The Santa Fe Springs, CA-based footwear, apparel, and skateboard maker has shown what extreme marketing is all about with its eight mall-based Skate Parks (four more by 2002), through which two million teens will glide this year. “We don’t sit around trying to get teens to do something,” says vp-marketing Chris Strain. “We try to find ways we can share their lives with them.” The company’s Warped Tour brings hot bands and extreme athletes, and has cynical Gen Y’ers tolerating corporate sponsorship. The Vans Triple Crown series of pro competitions has helped put action sports on the mainstream map, and attracted marketing partners such as Target, Ford, and Pepsi. McElroy:FCB, Irvine, CA, works with Vans’ in-house posse.
VENUS
Why: It made the goddess universal. Boston-based Gillette’s $150 million global launch got two kinds of universal planning: multi-media and multi-cultural. Reps worldwide huddled in a “translation war room” to hammer out package and P-O-P language for the company’s first-ever global design. Main site gillettevenus.com was the template for 15 regional sites. “We do our homework, which takes time, but ensures that [the brand] is consistently represented,” says business manager Michelle Mulcahey. The launch included ads, displays, an Internet sweeps, and a mobile tour. One million women visited the Venus in Motion “aroma oasis” and waterfall; Celebrate the Goddess offered online time with celebrities. Venus grabbed a 20-percent share of razors (sales are $35 million) and a 1.8 percent share of blades ($16 million) in its first two months, per Information Resources, Inc.
