Advertising & Promotion Campaigns

Broker tones down Fairfax outlook

The Age
Page: B2 : 5 June 2008
Original article by Jesse Hogan

LexisNexis Summary: Advertising & Promotion Campaigns

Fairfax Media shares rallied on 4 June 2008, despite a bearish earnings forecast from Deutsche Bank. Andrew Anagnostellis of Deutsche expects the media group to be adversely affected by a slowdown in the advertising market. Anagnostellis forecasts a downturn in Fairfax's earnings per share for 2007-08 and 2008-09, due to factors such as the state of the advertising market and higher borrowing costs. Deutsche rates Fairfax stock as a "hold", although its 12-month share price target has been cut from $A4.35 to $A3.50. Fairfax shares gained $A0.13 to close at $A3.38

Products & Services

GUD sells Victa as drought cuts grass

The Australian Financial Review
Page: 23 : 5 June 2008
Original article by Noelle Waugh

LexisNexis Summary: Products & Services

Australian-listed GUD Holdings is a diversified industrial products group. It will gain $A23 million after selling its Victa lawnmower business to a US engine supplier, Briggs & Stratton. GUD MD, Ian Campbell, noted that the group is looking for acquisitions. The Victa business has suffered in recent years due to the prolonged drought in Australia, as lawns have dried up and died. GUD will use the proceeds of the sale to reduce debt. The Australian Competition & Consumer Commission will have to give approval for the sale to proceed. Shares in GUD closed 2.64% higher at $A8.93 on 4 June 2008

Wine exporters hard pressed

The Australian Financial Review
Page: 22 : 5 June 2008
Original article by Simon Evans

LexisNexis Summary: Products & Services

US-based Constellation Brands purchased the BRL Hardy wine company in Australia for $A1.9 billion in 2003. The latter has since been renamed Constellation Wines Australia. Constellation Brands is reviewing the Australian wine business, to cut costs and improve efficiencies. Constellation's Australian business has suffered from the soaring Australian dollar and the earlier grape glut, which led to a profit squeeze. The glut has since ended, but the Australian dollar has risen even higher. John Grant, of Constellation Wines Australia, says he is concentrating on the high-priced premium brand wines

E-Business

Ninemsn faces ugly reality

The Sydney Morning Herald
Page: 33 : 5 June 2008
Original article by Paul McIntyre

LexisNexis Summary: E-Business

Australian web portal, ninemsn, faces a challenging future. Five senior executives, including CEO Tony Faure, have left or are leaving. The online advertising market has significantly slowed in 2008. As well, small operators are taking an increasing share of the high-margin display advertising market from ninemsn and the other four large online publishers. One observer said that ninemsn has lost innovation while another said that its executives are leaving because its aims do not match reality

Marketing Strategy

M&C Saatschi has more in store after poaching IdeaWorks talent

The Sydney Morning Herald
Page: 33 : 5 June 2008
Original article by Julian Lee

LexisNexis Summary: Marketing Strategy

Former IdeaWorks design director, Gary McCartney, has joined M&C Saatchi (M&C) as head of a new business, Brands in Space. IdeaWorks' founder and M&C retail marketing director, Jon Bird, describes Brands in Space as part of the next generation in retail marketing. Bird says 77 per cent of all buying decisions are now made in-store, resulting in companies seeking new ways to ensure customers receive the same message across a number of different "touchpoints"

Consumer Behaviour

Wireless broadband clicks

The Age
Page: B2 : 5 June 2008
Original article by Jesse Hogan

LexisNexis Summary: Consumer Behaviour

There has been a change in the Australian broadband market. The strong demand for wireless broadband has reduced demand for fixed-line broadband. Goldman Sachs JBWere has increased its market penetration estimates for wireless broadband for the years to 2010. Analysts note that Australia's fixed-line broadband market is slowing. However, they say there is still a strong need for a fast broadband network. Shares in Telstra closed at $A4.70 on 4 June 2008. However, Goldman Sachs JBWere has raised its Telstra share price target to $A5.41

Fuel's gold as a million people play cards with Woolworths

The Sydney Morning Herald
Page: 33 : 5 June 2008
Original article by Julian Lee

LexisNexis Summary: Consumer Behaviour

Over a million people have registered for Woolworths' new discount fuel card, according to company executives. Speaking on 4 June 2008, Woolworths' GM customer engagement, Richard Umbers, said the card may allow the retailer to target offers to shoppers more effectively in the long-term by supplying a greater understanding of purchasing habits. Umbers said the card would initially be built around fuel discounts and a weekly in-store prize draw valued at $A10,000. The Everyday Rewards Card debuted in New South Wales in June 2008

Golf's popularity is in the rough, survey shows

The Australian Financial Review
Page: 3 : 5 June 2008
Original article by Neil Shoebridge

LexisNexis Summary: Consumer Behaviour

Sweeney Research's sports survey indicates that interest in golf has declined to the lowest level since the start of the annual surveys 20 years ago. Interest is determined by combining data on participation, attendance and media consumption. Interest in golf declined from 31 to a score of 23, compared with scores of 57 for tennis, 53 for cricket and 52 for Australian Rules football. IMG Australia sales and marketing director, Chris Gilbert, said the emergence of some new talented young golfers in Australia will renew interest in the sport

Travel weary want service

The Australian Financial Review
Page: 70 : 5 June 2008
Original article by Lisa Carapiet

LexisNexis Summary: Consumer Behaviour

A number of business travellers in Australia prefer serviced apartments to hotels. They like the fact that there is more room, there is a kitchen and they can stay as long as they like. It appears that business travellers will choose a serviced apartment if they have to stay for longer than two days in a place - they want the ability to cook their own meals. In the US, business travellers are seeking out extended stay accommodation - serviced apartments where they can stay for quite some time. There is also more privacy in a serviced apartment

Market right to price in interest risk

The Australian Financial Review
Page: 13 : 5 June 2008
Original article by Alan Mitchell

LexisNexis Summary: Consumer Behaviour

The national accounts data for Australia released on 4 June 2008 has generated confusion. It is possible that the economy is healthier than indicated by earlier data. In 2007, economic growth was estimated to be 3.9 per cent, but the reality was 4.3 per cent. The underlying inflation rate is four per cent. Consumer spending appears stronger than expected but there are signs that the economy is beginning to slow. It should be remembered that the latest national account data is not gospel and is likely to be revised further