Advertising & Promotion Campaigns

CommQuest management cops the flak

The Australian Financial Review
Page: 33 : 2 July 2008
Original article by Noelle Waugh

LexisNexis Summary: Advertising & Promotion Campaigns

CommQuest management has been criticised after the Australian marketing services group downgraded its prospectus forecasts. This occurred only months after it upwardly revised them. The downgrade was associated with cost increases, contract delays and lower than expected growth by its direct marketing division. The company now expects pro-forma EBITDA of between $A10.3m and $A11.3m, compared with its prospectus forecast of $A11.9m and its upgraded forecast of $A13.2m in February 2008. ABN Amro Australia analyst, Nick Harris, said the downgrade has damaged the credibility of CommQuest

Products & Services

Seven, Foxtel chiefs war of words over digital recorders

The Australian
Page: 29 : 2 July 2008
Original article by Nick Tabakoff

LexisNexis Summary: Products & Services

Both the free-to-air Seven Network and pay TV rival Foxtel in Australia are launching new personal video recorders (PVRs). Seven has struck an alliance with US manufacturer TiVo and plans to sell its device for $A699, while Foxtel's competing iQ unit will attract monthly subscription fees. Seven is rejecting claims that the ability to skip through advertisements with a TiVo will jeopardise its business model, and says banner ads may in future be placed on top of the fast forwarding screen. It also notes that 70% of Australians have so far shown no desire to take out a pay TV subscription. TV audience ratings systems will be able to accommodate time-shifted recordings made with PVRs after 2010

Liquidity comes in daily doses at DWS

The Australian Financial Review
Page: 34 : 2 July 2008
Original article by Nina Wan

LexisNexis Summary: Products & Services

DWS Investments has launched a more liquid version of its fund of hedge funds in Australia. The DWS Strategic Value Fund (Enhanced Liquidity) provides daily as opposed to monthly liquidity. Investment specialist Jody Fitzgerald said the Enhanced Liquidity version of the fund will make it easier for investors to manage their cash flows. The new fund invests in certificates which try to duplicate the performance of the underlying Strategic Value Fund. Fitzgerald said the alternative of only investing in highly liquid investments would have an effect on returns

Exchange-traded funds get moving

The Australian Financial Review
Page: 32 : 2 July 2008
Original article by Stephen Calder

LexisNexis Summary: Products & Services

Exchange-traded funds (ETFs) are rapidly gaining in popularity in Australia, where they are a quite recent phenomenon. The latest addition to this segment is the Barclays iShares-based product by Citigroup, which allows Australian investors to gain exposure to overseas equities through instalment warrants issued over the ETFs. These could be exploited for example by those who believe the US dollar is about to recover ground against the Australian currency and that the US stock market is also about to expand again. One point to note is that dividend income would be likely to be higher in Australia than in the US

Consumer Behaviour

Optimism collapses - Voters fear for future

The Australian
Page: 1 : 2 July 2008
Original article by Dennis Shanahan

LexisNexis Summary: Consumer Behaviour

The latest Newspoll survey shows that confidence among Australian consumers is deteriorating in mid-2008. Some 43% of voters now forecast their living standards to decline in the second half of 2008, up from just 18% in late 2007. Only 13% now expect an improvement, whereas this had been at 21% previously. The levels of confidence are the lowest seen since the recessionary period of the early 1990s. Among the reasons are higher fuel and grocery prices, stock market upheaval and rising interest rates. The Reserve Bank of Australia left the latter on hold on 1 July 2008, noting the slowing of the economy in certain sectors

New offering not enough to boost brand

The Australian Financial Review
Page: 6 : 2 July 2008
Original article by Neil Shoebridge

LexisNexis Summary: Consumer Behaviour

Qantas Airways will need more than an improved frequent flyer scheme to revive its brand. The new scheme, unveiled on 1 July 2008, will be popular if it fulfils its claims. It aims to increase the engagement of consumers. However, before people engage with a brand, they have to like it. It takes a long time to build brand reputation, but it can be destroyed very quickly. Qantas's brand has been weakened by the failed private equity bid and poor service. It was judged the most authentic brand in 2006, but it has fallen to 14th ranking in 2008

Weaker jobs demand takes pressure off

The Australian Financial Review
Page: 13 : 2 July 2008
Original article by Adrian Rollins

LexisNexis Summary: Consumer Behaviour

Employers are beginning to cut back on casual staff and overtime in response to rising interest rates and fuel prices, according to the Reserve Bank of Australia (RBA). RBA governor, Glenn Stevens, said on 1 July 2008 that there are "some tentative signs" that the retail, property, business services and manufacturing sectors are feeling the effects of slowing consumer demand and reducing expectations of a wages breakout. Meanwhile, a survey by Hudson of 7,358 hiring managers has suggested that 40.8 per cent of employers intend to increase their workforce, down 2.9 per cent on the March figures