Dull Clients? Buy ‘Em!
Advertising mavericks Maurice and Charles Saatchi are taking a novel approach to getting out of the spending slump that’s plaguing the advertising and promotion industries: buy clients. Their agency M&C Saatchi and its Saatchinvest division recently paid H.J. Heinz Co. at least $10 million for a 51 percent stake in the company’s Complan meal-replacement drinks and Casilan protein supplements, according to Forbes Magazine. The agency plans to reposition the brands, then turn around and sell them off again.
M&C Saatchi will look to do the same with other consumer goods, particularly in the sports apparel and distilled spirits industries. The London-based agency could also get a boost from CPG marketers, who are selling off many marginal brands (Procter & Gamble recently unloaded Clearasil and Comet), and may turn to some of its existing clients — such as Nestlé and Pfizer — for additional spin-offs.
Entertainers are muscling in on sneaker deals as Stoughton, MA-based Reebok teamed with rapper Jay-Z to develop a signature shoe line. In June, Reebok will introduce the S. Carter Collection by Rbk (Shawn Carter being Jay-Z’s real name and Rbk is Reebok’s own “street” designation). Last fall, Reebok signed on as tour sponsor of pop star Shakira.
College cable provider Zilo Networks, New York City, will get a boost from the Gravity Games for its All Terrain Challenge: Air-Land-Sea extreme sports series. Hosted during Spring Break in Cancun and Panama City, FL, the 2003 All Terrain series will feature professional athletes presented by the Gravity Games. Spring breakers compete for cash, prizes, and scholarships.
Toys “R” Us, Paramus, NJ, inked an agreement with supermarket retailer Albertsons, Boise, ID, to host a test of Toys “R” Us Toy Box stores in Albertsons’ Chicago-based Jewel-Osco stores. Toys “R” Us introduced the store-within-a-store concept in Giant Food supermarkets in 2001.
Ford Motor Co., Detroit, has signed a two-year marketing deal with CART that may save the racing association from folding. New sponsors such as Ford and Bridgestone Tires may draw new drivers to the circuit, which lost its highest-profile drivers last year, reports the Associated Press. The series becomes “Bridgestone Presents the Champ Car World Series Powered by Ford.” Four-year title sponsor FedEx bowed out in 2002.
Radio Disney, Burbank, CA, has been named by the American Youth Soccer Organization (AYSO) to be the exclusive media partner for selling third-party sponsorships of AYSO. Under the agreement, Radio Disney advertisers will receive preferential AYSO sponsorship pricing, as well as on-air features, grand prize promotions, and giveaway weekends.
