Advertising works shocker! As the interim results season got into full swing, several companies were reporting rises in sales were linked to their investment in advertising and marketing.
Egg, the internet bank, was first off, attributing the signing of 205,000 new customers to its "Brilliant Industries" campaign, created by the London agency Mother.
Next up, Merrydown, the cider maker, attributed a rise in sales of its Shloer elderflower soft drink to a new television advertising campaign, as well as a major marketing push. It didn't say if the campaign ran only in Devon and Cornwall, but that's where the money is.
On a greasier front, Domino's Pizza, the pizza delivery chain, said a 16% rise in sales over the last six months was due to its ongoing advertising campaign and sponsorship of 'The Simpsons'. However, its announcement came just as the advertising pressure group ISBA claimed that there is no significant direct effect of TV advertising on consumption of specific foods, in response to a report that suggested a "fat tax" be introduced on food advertising.
ISBA was making the comments in relation to a report called 'Inconvenience Food: The Struggle to Eat Well on a Low Income', published by the left-wing think tank Demos. In the report, Demos called for a "fat tax" to fund a national Health Promotion Agency to promote consumption of fruit and vegetables. However, ISBA reacted angrily to the report, claiming that it was only aimed at grabbing headlines and not seriously dealing with unhealthy lifestyles.
In the US, the fat argument rolled on, if you'll excuse the pun, with the news that a 20-stone man was suing McDonald's, Burger King, Wendy's and KFC for turning him into a junk food addict. Caesar Barber, who has diabetes and heart problems, is accusing the food chains of "irresponsible and deceptive behaviour", and claims that he was unaware of the danger of eating fast food four or five times a week, until his doctor told him.
Other overeaters are reported to be joining the claim. If there's one thing the Americans love more than junk food its a class action lawsuit. The junk food industry is starting to face the possibility of tobacco-style suits, as the US faces what experts are describing as an epidemic of obesity.
Nonetheless, Diageo managed to agree the sale of Burger King this week for a sum of $2.26bn (拢1.44bn). Burger King, which has more than 11,000 stores across the world, has been bought by venture capitalists after Diageo decided it wanted to concentrate on its drinks business. In preparation, the chain has been rearranging its advertising agencies in the US and UK, with Interpublic Group of Companies agencies being the main beneficiaries.
One group that was taking a more practical step towards making consumers eat more vegetables was the scientists behind a new onion that promises not to bring tears to the eyes of those who chop it up. The Supasweet onion also promises to avoid that old problem of onion breath, and is sweet enough to be eaten like an apple. Why? It is grown in sulphur-free soil, which apparently means less of the acids that cause eyes to water when they are chopped up.
The project, which was party funded by the government, took three years and will hopefully lead to an increase in British onion growers' share of the market. However, leading chefs remain to be convinced that the old-style onion is obsolete.
On the UK retailing scene, Woolworths was looking at how it could win back customers and announced a 拢20m brand overhaul.
It is starting with the unlikely figure of Paul Kaye -- better known as Dennis Pennis, the former celebrity-bothering interviewer -- starring as a young father called Dave who uses Woolworths for all his shopping needs.
According to Marketing magazine, Woolworths admits it has failed to communicate the full range of its offering to customers, and that sales growth has been poor. The new ad campaign, created by Bates UK, will feature a new branding device -- a big, red W -- and replace the "Don't forget what you came in for" series of ads that have been running for four years.
Argos was also looking to turn around its image with a new ad campaign starring Richard E Grant, better known for his turn as an alcoholic actor in 'Withnail & I', and Julia Sawalha, aka Saffy from 'Absolutely Fabulous'. The ads, the first for the chain by Euro RSCG Wnek Gosper, will try to show how Argos can compete with more upmarket, stylish retailers.
Coca-Cola is reported to be launching a berry-flavoured Fanta drink, in an attempt to spoil Pepsi Blue, also a berry-flavoured drink.
Pepsi Blue launches in the US this week and is Pepsi's attempt to win more young drinkers to its brand. It is no surprise that Coca-Cola is to follow suit (although it denies charges of spoiling, claiming that berry is a natural extension to fruit-flavoured Fanta). Both Pepsi and Coke have launched lemon-flavoured colas this year, and back in 1992 when Pepsi launched a clear variant, Coke quickly followed suit with Tab Clear.
Barbie owner Mattel's long, drawn-out lawsuit against the Danish pop group Aqua came to an this week. It brought the suit not for crimes against music, but because Aqua had infringed Mattel's copyright with its 'Barbie Girl' song, according to Mattel.
However, a court in California threw out the trademark lawsuit, aimed at Aqua's record company MCA Records. Aqua, whose hit included such lines as "make me walk, make me talk, do whatever you please, I can act like a star, I can beg on my knees", disbanded three years ago.
Mattel has previously had another lawsuit involving Barbie thrown out, against an artist who used Barbie in compromising positions. This time one of the judges told the court: "The parties are advised to chill."
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