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[ Marketing news and other sick stuff ]

Contrary to what you may believe, Space Jam wasn't created to sell Nikes. It was created to sell Warner Bros. merchandise.

"This is a merchandising bonanza first and a movie second, " Jim Riswold, the copywriter who dreamed up the original Michael Jordan/Bugs Bunny Nike commercial, told The Wall Street Journal. No need to be shy about it. Discussing the movie's motivation in extremely blunt (even for the business press) terms, Riswold continued, "The idea is to sell lots of product."

Though Space Jam cost nearly $90 million to make, Warner co-chair Robert Daly says it'll be a great return on the investment if it reaches $95 million in domestic ticket sales. But, considering that studios typically receive only half the take from ticket sales (in this case, $47.5 million), how can that be?

"You can make a ton of money" from merchandise, the overseas release, and home-video sales, said Daly. Indeed, the studio plans to turn Space Jam into a huge franchise that will sell as much as $1 billion of its merchandise.

Meanwhile, Warner executives insist the film won't be just another long-form commercial. As proof, they site the fact that an actual comedy director, Ivan Reitman (Ghostbusters, Dave), will produce (mitigating factor: Joe Pytka, the director of the original Nike commercial, will direct). (The Wall Street Journal, 9/24/96)

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According to Ground Zero, the advertising agency that produced commercials for Michael Jordan cologne, a silhouette of Jordan's head is more readily recognized than the faces of Madonna or President Clinton. And when shown photographs, 90 percent of consumers correctly identified the back of Jordan's head. No other public figure scored higher than 80 percent, Ground Zero said. (Los Angeles Times, 12/4/96)

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A few of the movie and television properties which will be merchandized in the summer and fall of 1997. (We're just warning you now.)

Little Orphan Annie (TV)
Extreme Ghostbusters (TV)
The Lost World: Jurassic Park (Universal)
Alien Resurrection
Batman and Robin (Warner)
Men in Black (Sony)
Starship Troopers
Steel (Warner)
Hercules (Disney)
Anastasia (Fox)
Quest for Camelot (Warner)
The Little Mermaid (Disney rerelease)
Team Knight Rider (TV)
Time Cop (TV)<
Stargate (TV)
Mask of Zorro
Power Rangers Turbo (movie and TV)
Spawn (live action movie and TV cartoon)

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Since departing the ABC sitcom Full House, nonanimated children's heroes Ashley and Mary-Kate Olsen have raked in over $77 million with two series of low-budget videocassettes: The Adventures of Mary-Kate and Ashley and You're Invited to Mary-Kate and Ashley's. Scholastic Inc. is distributing a line of 14 children's books based on the shows and two Olsen music CDs have each sold more than 350,000.

The Wall Street Journal attributes the twins' "surefire" success to the lack of competition--the fact that they're among very few TV properties not aimed at boys or families. Plus:

The videos are shamelessly cross-promotional. In exchange for being featured prominently in the shows, companies like Carnival Cruise Lines, Sea World, and U.S. Space Camp cover all lodging, transportation, and catering costs on location. For "The Case of the Hotel Who Done-it," the twins repeatedly plug the Hilton Hawaiian Village Hotel. "This hotel was so cool, they even had someone who parked our bikes," the twins say, adding that the lobby is "so awesome." Just when it seems the only thing left for them to do is list the hotel's amenities, the girls break into a song during which they raid the minibar, watch in-room movies and chant, "Why can't we live in a hotel all the time?" (WSJ, 3/10/97)

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At least 6 million and perhaps as many as 17 million people lost their lives during the Holocaust. Six million--an almost incomprehensible number, so a seventh grade history teacher at one Channel One school came up with a lesson to help students comprehend the incomprehensible and consider the "catastrophic effects of intolerance." His plan: collect six million tabs from soda and juice cans.

"We're not trying to equate a pop tab for a life," Kevin Daugherty, the teacher, is quoted as saying. While he neglects to specify what consuming drinks and collecting their tabs is related to, he maintains that 6 million tabs would fill 300 grocery bags. (Channel One Online, 2/19/97)

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"A marketing bonanza." --The Wall Street Journal on the FCC's new requirement that television networks devote three hours a week to educational programming. (The Nation 3/10/97)

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Top 10 Educational software titles

1. Barbie Fashion Designer
2. Toy Story Animated Storybook
3. Toy Story Activity Center
4. Barbie Print 'N Play
5. Barbie Story Maker
6. Green Eggs & Ham
7. Where in the World is Carmen Sandiego?
8. Donald's Alphabet Chase
9. Elmo's Preschool
10. Mickeys' Runaway Zoo
(Toy Book February 1997, Softtrends November 1996 Top Sellers)

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According to the Bureau of Labor Statistics, more people died last year on the job in advertising than in petroleum refining, electrical repair shops, and car factories. (Ad Age, 8/19/96)

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The Abundant Life Christian Center in Colorado has found a way to combat the devil's holiday (Halloween) and make money at the same time. For $6, people can enter a Hell House, which is like a traditional haunted house, only "100 percent message oriented."

In the first room, a homosexual who has died of AIDS lies in a casket. "We've got your alternative lifestyle all right . . ." says the "demon tour guide." ". . . in hell!!!"

In the next room, abortionists operate on a young woman writhing in pain. "Killing babies is a wonderful choice," says the demon. "After all, it's so-o-o-o convenient." Then it's on to a party room where a young woman mixes drugs and alcohol and dies. Eventually, visitors arrive in hell itself, which, apparently, smells like crocks of burning Limburger cheese. People wail in eternal torment as Satan brags about killing the unborn. An angel eventually appears and guides the visitors to the final room, which has soft lighting and music. Where there's potpourri, there's Heaven and God and talk of Jesus.

Abundant Life has sold hundreds of complete Hell House Outreach kits to churches in 35 states. The promotional flyer for the Hell House kits calls it the most "in your face, high-flyin', no denyin', death-defyin', Satan-be-cryin', keep-ya-from fryin', no-holds-barred, cutting-edge evangelism tool of the '90s!"

A recent study by the National Retail Federation found that Halloween generates more revenue than any other holiday on the calendar save Christmas. (New York Times, Oct. 27, 1996)

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Unsatisfied with record numbers of tourists in the Cayman Islands, officials in the British territory decided to sink a Russian ship. The idea was to attract tourists looking for more than just the wonders of nature. Tourist officials in the Bahamas and a few other places have also sunk ships to boost tourism. "It adds attractiveness as a resort destination," says Jed Livingston, an exec with the National Association of Underwater Instructors. (New York Times, 10/14/96)

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To help push sales of classical music, marketers are turning to what's known as secondary exploitation (aka "entertainment packaging" or "convincing people to buy something they don't like to begin with").

Recent efforts with secondary exploitation, such as RCA's The Idiot's Guide To Classical Music, have been major hits. Others, like the gay-targeted Out Classics and Sensual Classics Too have achieved considerable press attention, but poor sales (go figure).

Nonetheless, Idiot-inspired compilations keep on coming. London Records has targeted older rock and pop listeners with Exile on Classical Street (featuring works by composers such as Mozart, Gershwin, Debussy, etc. personally selected by Steven Tyler, Elton John, Michael Stipe . . .) and Mr. Holland's Guide to the Classics.

Atlantic Classics is going to try again at the sensual thing with Classic Love, a two-CD set. "If you can think of a way to related music to a nonmusical concept people can identify with, you can make a connection," says Kevin Copps of Atlantic.

In other words, the way to sell classical music is to act like it's not music. (Billboard, 9/79/96)

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According to American Demographics, fans of TV sitcoms aren't poor and stupid. In fact, Comedy Central's audience is upscale and educated. Its viewers are 48 percent more likely to have household incomes of $60,000 or more and a college education, and 33 percent more likely to have a head of household who has a professional or managerial job. (Not all comedy fans are the same, however. NBC says Seinfeld viewers make an average of twice as much as the people who watch Fox comedies). Comedy Central's core audience is a demographic coveted by advertisers: 57 percent male and 67 percent 18 to 49 years old. But more important, says network rep Debbie Reichig, they share a clearly delineated psychographic profile. Shows like Dream On, Politically Incorrect, and Absolutely Fabulous "totally fit the psychographic of our viewers. Our audience is looking for intelligent humor, edgy comedy with a hyper reality that gives them reason to pay attention." (American Demographics, Nov. 1996)

Surveys by the American Animal Humane Association show that seven out of ten American pet owners think of their pets as children. The cost of caring for critters is rising by as much as 15 percent a year, making the pet industry one of the fastest-growing segments. Sales of premium (i.e., upscale, health-food-type) pet foods now total $2.5 billion a year, or 25 percent of all pet-food sales. By the turn of the century, the premium brands could amount to half of the pet-food business. Pet food is just the beginning for a pet health industry that also includes:

PHARMACEUTICALS--Not only are there pet versions of human drugs but human drugs themselves are used: Zithromax (an antibiotic), antidepressants such as Prozac, skin lotions, drugs to help arthritis, beta blockers, and drugs that help prevent the rejection of transplanted organs.

MEDICAL PROCEDURES--Dogs and cats are routinely given CAT scans and blood transfusions, not to mention open heart surgery, pacemakers, kidney transplants and orthodontic braces to correct overbites.

PET INSURANCE--Just starting to catch on in the U.S., pet insurance is popular in Britain, where pet owners shell out more than $100 million for coverage, and Sweden, where close to 20 percent of all pets are insured. (Barron's, 4/1/96)

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The Democratic National Committee has come out with a master plan for taking back the talk radio airwaves. The key instruction for candidates in the eleven-page memo by Jon-Christopher Bua is to "sound dumb." The idea is for candidates to come on at first like Andy or Mayberry with their conservative talk show hosts and then "really unload" with facts and figures later in the interview. Sadly, instructions were not provided on how to sound dumb, not that all candidates would need them. Further tips from the memo: When a host tries to slam you with facts, "change the subject." And if a caller raises a hot topic, answer with "I understand that the president is a very religious man and is a regular churchgoer." (WSJ 6/20/96, via Newspeak: http://www.scn.org/news/newspeak/)

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In their concern over widening income gaps in this country, over a dozen hospitals have responded by opening VIP suites. Now, for $2,000 a day, you can have waiters in tuxedos serving fine cuisine, monogrammed bath robes, mahogany antiques, and even a wet bar in your room. In addition to medical personnel, the hospitals have recruited staff from top hotels to ensure the finest service. This practice has the usual complaints about class inequalities. Critics question whether hospitals reliant upon Medicare should be using public funds to cater to the rich. Jose Nunez, director of the Methodist Hospital in Houston, has an effect answer for these nattering nabobs of negativity; he points to the fundamental human rights of wealthy foreigners. "International patients have higher expectations. Many of these individuals are used to having servants, maids, butlers, and gardeners." Would we want to deprive them? (WSJ, 9/16/96, via Newspeak)

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When MTV and Pocket Books teamed up to to sponsor a writing contest for unknown writers under 24, an underwhelming 200 viewers responded (Story Magazine, by comparison, averages 6,000 entries for each of its twice-a year-fiction contests). MTV would not comment on the quality of the responses, though one network exec told the New York Times Magazine, "Literature is not the most popular art form with our audience." (New York Times Magazine, 10/13/96)

Researchers in Japan have found a high-tech solution to the growing problem of elderly people who become confused and get lost: track them by satellite. While the technology has been used for years to keep track of wild animals and paroled criminals, the Japanese system is the first major application to help old people live outside of institutions.

Meanwhile, more than 1,300 of Japan's elderly will be moved to the Phillipines, where the low cost of labor--about a fifth of that in Japan--makes 24-hour care by actual humans possible. (AP World News via Suckwire, 2/27/97)

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A few of the more than 50 items Spearhead requested to be backstage during the House of Blues Smokin' Grooves Tour: no red meat; turkey: sliced-good quality; no egg salad that stinks up the dressing room; 2 large bags of nuts: cashews and pistachios; lots of ripe fruit, including kiwi and mango; cookies: chocolate chip, peanut butter, Oreos; 1 jumbo bag peanut M&M's; 12 bottles Snapple: 6 lemonade, 6 assorted fruit; 24 bottles Heineken (export only); 12 bottles Newcastle Brown Ale or Guiness; 1 bottle Baileys; 1 bottle cognac; 1 good bottle Merlot or Cabernet; 1 good bottle Chablis or Chardonnay; 12 Tylenol tablets. (Vibe, circa summer 1996)

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For an average fee of $1,800 each, businessman/seer Robert B. Scott Jr. helps accountants get to know themselves by giving them a Myers-Briggs Type Indicator. The standard personality test helps identify which accountants are among the 30% that are "serious, logical, dependable, thorough, well-organized; the 20% "practical, strong administrators, not much for theory," and "the rest." According to Scott, accountants "can and should be marketed just like soap, luxury cars, and facsimile machines." (Wall Street Journal, 1/24/97)

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Corporate Rock Still Sucks Dept.: Martha Byrne isn't just any soap-opera actress turned soft-rock balladress--she's a soap-opera actress turned soft-rock balladress who records for Philip Morris. The world's biggest cigarette company has started its own record label, Woman Thing Music. Bayne's first release, Woman Thing Music Volume 1, is a sort of limited, cigarette-purchasers-only edition, available free with the purchase of two packs of Virginia Slims. According to a Philip Morris events marketer Mary Jo Gennaro, it's all part of Virginia Slims "tradition of providing opportunities for women to showcase their talents and interests."

The series fits other Philip Morris traditions as well, namely, the company's tradition of associating its cigarettes with music. There's the Club Benson & Hedges live-music series at R&B clubs, the Marlboro Music military-base tour, and Marlboro-sponsored concerts at state fairs and outdoor festivals.

Unlike corporate labels such as Disney or MCA (owned by Seagrams), Woman Thing releases will be sold exclusively to cigarette buyers. Says Philip Morris spokesperson Tara Cararo, "If we offered it on radio and TV to everyone, we would be eliminating the added value for smokers." (WSJ, 1/11/97)

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"Nutrition Nuggets" from Nabisco's Treat Yourself Well newsletter:

* The following Hershey's products are a good source of calcium (contain at least 10% of the Daily Value per serving): Hershey's chocolate milk; Chocolate milk made with Hershey's syrup and milk; Hot cocoa made with milk, sugar, and Hershey's cocoa, Hershey's drink boxes

* Chocolate milk is a good source of many nutrients. Adding two tablespoons of Hershey's chocolate syrup to milk increases the calorie and carbohydrate content, not the fat. Chocolate milk, made with 2% milk, has less fat that whole milk.

* A sundae made with fat-free frozen yogurt, Hershey's chocolate syrup and whipped topping contains 180 calories and 2 grams of fat (3% of the Daily Value).

* Most of the calories, fat, and saturated fat in the American diet come from dairy, meat, and baked grain products.

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"I'm not a flower child or a hippie, but Woodstock was the equivalent of the Civil War for the people who lived through it."

--Jonathan Drapkin, manager of Sullivan Country, on the county's decision to buy the Woodstock site and turn it into a "miniature Tanglewood as well as a museum that would offer multimedia presentation about the concert similar to those that have given distinction to the United States Holocaust Museum in Washington." (NYT, 1/26/97)

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"We don't sell a product, we sell a style of life. I think we have created a movement.... the Diesel concept is everything. It's the way to live, it's the way to wear, it's the way to do something."

--Renzo Rosso, owner of Diesel Jeans in Paper magazine.

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Talk about target markets... According to BBDO's annual Report on Black Television Viewing, the top-rated show in black households, Living Single, ranks 103rd in white households. And that pattern holds true for most of the top 10 shows among black viewers. Blacks are as likely to shun programs that rate high among nonblacks. For instance, Friends ranked No. 4. among total households but No. 103 among blacks. Only one of the top 10 shows among black viewers also turns up on the top 10 list for total households--Monday Night Football--and that's not even a typical program. (Adweek, 3/3/97)

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Brown & Williamson Tobacco Company has launched what is believed to be the first U.S. website for a cigarette brand (www.circuitbreak.com); I guess Advertising Age isn't sure because neither the tobacco company nor brand, Lucky Strikes, are mentioned anywhere on the site. San Francisco Nightclub listings, music and book recommendations, internet games, and entertainment happenings, are, however, on what PR manager Tom Fitzgerald calls "a lifestyle site," not "a Lucky Strike site."

The site, called Circuit Breaker, collects information from visitors--name, age, address, etc.--regardless of whether or not they smoke. Initially targeted to the San Francisco area, Brown & Williamson plans to duplicate the plan for other areas by placing ads in local alternative weeklies, establishing a heavy presence on the local club scene, and designing localized Circuit Breaker websites. update (4/9/97): after the Ad Age article critiquing the site, Brown and Williamson started listing their name on it (Ad Age, 2/24/97).

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Northern Trust Corp. has tapped into a new way to market its banking services: forming literary societies. Society luncheons feature all the trimmings--catered spreads, white linens, tuxedoed waiters, valet parking, bank officers that greet members by name... and, oh yeah, books. Apparently one of the advantages of Northern's club is that doesn't necessitate having an interest in reading. "I don't have time to read the books, but this gives me a place to go," one member is quoted as saying. The Wall Street Journal insists authors do discuss literature at the meeting, though, and the intellectual flavor gives the bank a nice rep. Explains a lit-clubber who pulled a wad of money from a Merrill Lynch account and entrusted it to Northern, "The meetings are run so beautifully, we thought their bank was probably run just as well."

What's more, since membership dues don't flow directly into Northern coffers, the clubs are nonprofit, meaning they qualify for tax-exempt status. Yep, another corporate marketing scheme where tax-payers foot the bill. (WSJ, 3/6/97)