Advertising & Promotion Campaigns

Bird in hand for M&C's retail drive

The Australian Financial Review
Page: 48 : 10 March 2008
Original article by Neil Shoebridge

LexisNexis Summary: Advertising & Promotion Campaigns

Advertising agency, M&C Saatchi, has appointed Jon Bird as its new director of retail marketing. Bird, a founder of retail ad group, IdeaWorks, will work with the staff handling M&C's accounts with Westfield, Woolworths and Repco. These groups account for approximately 30 per cent of M&C's annual revenue. Bird will also be responsible for pursuing new retail clients and will work with the agency's digital, database and customer relationship marketing business

Expansion plans face delays

The Australian Financial Review
Page: 49 : 10 March 2008
Original article by Noelle Waugh

LexisNexis Summary: Advertising & Promotion Campaigns

BlueFreeway, Hyro, Destra, Q Limited and Commquest are among the Australian marketing and media groups that recently posted profit results. BlueFreeway recorded a $A4 million net loss for the December 2007 half, which it attributed to higher-than-anticipated head office costs. Meanwhile, Hyro posted a $A6.6 million loss for calendar 2007. The loss came in spite of a surge in revenue to $A51.9 million. Destra's reported net profit for the December half fell 28 per cent to $A2.2 million, although its revenue increased to $A66.6 million. CommQuest has forecast a $A7.6 million full-year net profit, while Q Limited CEO Mark Halstead expects the company to achieve full-year revenue of $A28.5 million

Seven slips in battle for ads spend

The Australian Financial Review
Page: 49 : 10 March 2008
Original article by Neil Shoebridge

LexisNexis Summary: Advertising & Promotion Campaigns

The Seven Network's share of Australian TV advertising spending is expected to fall from 39.2 pr cent to 38.5 per cent in the June 2008 half. Meanwhile, the Ten Network is tipped to secure a 30 per cent share. Seven has suffered since the 10 February launch of the official TV ratings season, due to a combination of factors including the success of Ten's "So You Think You Can Dance" reality program and Seven's decision not to launch new shows such as "Gladiators" and "Private Practice". Seven's night-time audience share among people aged 25 to 54 fell 11.3 per cent in the first three weeks of the ratings season

Jobless rate tipped to touch 4.2pc, confidence to fall

The Australian Financial Review
Page: 4 : 10 March 2008
Original article by John Breusch

LexisNexis Summary: Advertising & Promotion Campaigns

A marginal rise in unemployment to 4.2% is expected for February 2008 in Australia. Unemployment fell 0.2 of a percentage point to 4.1%, a 33-year low, in the previous month. The consensus among economists is that 15,000 new jobs were created in February 2008, but there will still be a small rise in unemployment because of an expected increase in the participation rate. Olivier E-cruitment Advisors' job index showed a 5.9% decline in job advertisements for the month, which was the first fall since 2005

Mission to create rules of engagement

The Australian Financial Review
Page: 50 : 10 March 2008
Original article by Neil Shoebridge

LexisNexis Summary: Advertising & Promotion Campaigns

In February 2008, the Advertising Research Foundation in the US established a council to revive a project. The initial project, launched in mid-2005, had been charged with producing a definition of consumer engagement with advertising. Ultimately, it was determined that a system could not be developed to measure engagement. The new council aims to pull together various engagement reports and to publish a report summarising those studies. Ultimately it hopes to create a set of "action points" that companies can use to help measure engagement

Products & Services

ACCC Grocery Inquiry submissions reveal host of grievances at store and corporate level

Retail World
Page: 10-11 : 3 March 2008

LexisNexis Summary: Products & Services

The Australian Competition & Consumer Commission (ACCC) is currently undertaking an investigation into the retail grocery sector. A study of submissions made to the inquiry that have been placed on the ACCC's web site suggests that many small retailers and consumers are unhappy with the conduct of the large grocery retailers. In its submission to the inquiry, the Southern Sydney Retailers Association noted that the retail price of bread has risen by 123 per cent since 1990, while the consumer price index has only risen by 60 per cent. It also claims Australia is the only nation in the developed world where supermarkets prices are rising higher than inflation

Convenience sector on the rise

Retail World
Page: 18 : 3 March 2008

LexisNexis Summary: Products & Services

Sanitarium's recently released Curios breakfast snacks were three years in development and involved the creation of world-first technology. They are targeted at teenagers and young adults who seek a cereal that is both healthy and convenient. The new product was launched on the back of concerning research that one in 10 children eat ice creams, chocolate and potato chips for breakfast, while 25 per cent of children drink soft drink at breakfast at least once a week

E-Business

BlueFreeway treasury plan runs into flak

The Australian Financial Review
Page: 47 : 10 March 2008
Original article by Neil Shoebridge and Noelle Waugh

LexisNexis Summary: E-Business

Australian-listed digital marketing services group BlueFreeway has set up a centralised treasury function. It has notified the two dozen affiliated companies, many of which were acquired under earn-out arrangements, that the move was mandated by its lender, National Australia Bank. The financial institution has extended new loan of $3m to BlueFreeway, whose total debt now stands at $A33m. It has also issued new scrip worth $A3.5m. BlueFreeway was recently to become the subject of due diligence for a possible merger with Mitchell Communications Group, but that entity abandoned the talks after a brief period. As a result BlueFreeway stock closed on 7 March 2008 at $A0.35, down from $A0.60

Marketing Strategy

The Crepe Cafe, Go Sushi to expand

Inside Retailing
Page: 6-7 : 3 March 2008
Original article by Lyn White

LexisNexis Summary: Marketing Strategy

Go Franchise has closed a number of The Crepe Cafe outlets in Australia since acquiring the master rights to the franchise in August 2007. Scott Philipson, national marketing manager for Go Franchise, which also owns the Go Sushi brand, said the decision to close a number of Crepe Cafe outlets was based on a feeling that a few things needed to be improved about its operation. The Crepe Cafe was started on the Gold Coast in 2001 by Norbert Baillette and Jean-Pierre Corget, who still own its franchise rights for New Zealand, the Middle East and North America

Reaching shoppers while they're in the spending mood

Retail World
Page: 8 : 3 March 2008
Original article by Warren Beaumont

LexisNexis Summary: Marketing Strategy

Independent supermarkets in Queensland are finding that new digital television systems are getting support from both customers and suppliers. Chris Walker, of Cornetts Supa IGA, said that sales of promoted products have risen by as much as 10 per cent since the introduction of the Dirrectv systems. Nestle, Supa Fin Seafoods and Black Swan Dips are among the companies that have run campaigns since the systems were introduced. Terry Patridge, of Supa IGA at Regent Park, says it has noted a similar increase for promoted sales since it introduced Directtv

Consumer Behaviour

Air of uncertainty puts dampener on home sales

The Australian Financial Review
Page: 5 : 8 March 2008
Original article by Michelle Singer and Mark Phillips

LexisNexis Summary: Consumer Behaviour

The latest interest rate rises appears to have made residential property buyers cautious. Michael McNamara, of Australian Property Monitors, says many people did not expect two consecutive rate rises. McNamara says people are eager to avoid buying at the top of a possible downward cycle and are waiting for clarity on market conditions. Scott McElroy, of Hocking Stuart, notes that inner city sales are still strong in Melbourne. Rod Druitt, head of the Real Estate Institute of Western Australia, says that buyer sentiment is "a bit negative"

ARA slams latest interest rate rise

Inside Retailing
Page: 5 : 3 March 2008

LexisNexis Summary: Consumer Behaviour

Consumers spent an estimated $A6.1 billion between Boxing Day 2007 and mid-January 2008, according to Australian Retailers Association modelling. Richard Evans, the Association's executive director, says this is $A100 million less than it had originally estimated and indicates that the Reserve Bank of Australia was hasty when it increased interest rates recently, as consumers had already started to cut back on their spending

Ready to drink

Choice
Page: 24-26 : March 2008

LexisNexis Summary: Consumer Behaviour

Ready to drink alcoholic beverages are particularly popular among teenagers. They are also known as alcopops or designer drinks. A recent survey showed that such drinks are not always distinguished from soft drinks. Only 51 per cent teenagers who participated in the survey thought alcopops contained alcohol while 100 per cent identified beer and wine as alcoholic beverages. This is an important matter as teenage drinking is a serious problem