adage special report 10.404. · 2013-07-31 · adage special report power players october 4, 2004...

AdAgeSPECIALREPORT 10.4.04

POWERPLAYERS

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INSIDE Addicks, Mark P-12Bousquette, Janine P-4Boylson, Michael P-12Conn, Eric P-8Connelly, Jed P-6

Costello, John P-8Crawford, Karen P-10Eberhardt, Joe P-4Hamilton, Carol P-16Helfant, Adam P-16

Johnson, Allison P-12Johnson, Dave P-10Kelly, J. Patrick P-4Kelly, Tim P-12Kohnstamm, Abby P-14

Kosak, Kim P-12Lauder, William P-14Lefar, Marc P-12Lentz, James P-8Light, Larry P-4

Linton, Michael P-14Lyons, Steve P-6Mathews, Mich P-10McEvoy, Ashley P-14McKines, Charlotte P-8

Pernock, David P-4Rodkin, Gary P-8Simmons, Brad P-6Stengel, James R. P-4Stratten, John P-8

PHOTO BY ROSS VANPELT

James Stengel tops the Ad Age Power Player list. Findout who else made the cut.

AD AGE MAIN 10-04-04 B 1 AADB 9/29/04 5:16 PM

AdAgeSPECIALREPORTPOWER PLAYERSOctober 4, 2004 | Advertising Age |P-4

AGENCY ROSTER INCLUDES: Grey GlobalGroup’s Grey Worldwide, Wing Latino Group andMediaCom, all New York; Grey, Toronto. PublicisGroupe’s Bromley Communications, SanAntonio; Leo Burnett USA and Burrell Commu-nications Group, both Chicago; Leo Burnett,Toronto and London; Conill, Kaplan Thaler Group,Medicus and Publicis Worldwide, all New York;Saatchi & Saatchi, New York and Los Angeles;Starcom MediaVest, New York and Chicago.Carol H. Williams Advertising, Oakland, Calif.

POWER PLAY: It doesn’t get much better thanthis for a 167-year-old marketer. Sales soared 19%in the fiscal year ended June 30 to $51.4 billionglobally, up 8% even without acquisitions andcurrency effects. In the U.S., sales rose 8.4% to$23.7 billion. Efforts by Mr. Stengel, 49, to hammer

home consistency through his “marketingframework” have paid off, with all regions andbusinesses reporting growth. He even convincedChairman-CEO A.G. Lafley to join the P&Gdelegation at the Cannes festival this year.

DOWNSIDE:Efforts to improve creativity of itsads aside, P&G came away from the InternationalAdvertising Festival this year with no morecreative Lions than in 2003. It faced murmurs ofdiscontent that the marketer invasion it helpedspawn was spoiling the fun. Beauty care has beenthe key strategic priority for P&G in the U.S. Butit’s losing share in its haircare businesses andfaces a flat to declining overall U.S. mass beautymarket. P&G has two straight years of solidgrowth, but faces tough comparisons with noblockbusters a la Prilosec OTC in pipeline for ’05.

1JAMES R.STENGELGLOBAL MARKETING OFFICERPROCTER & GAMBLE CO.

AD BUDGET:

$3.32billion

AGENCY ROSTER INCLUDES:Aegis Group’sCarat North America, New York. Havas’ ArnoldWorldwide and Euro RSCG Life LM&P; InterpublicGroup of Cos.’ McCann Erickson Worldwide;Omnicom Group’s BBDO Worldwide, AtmosphereBBDO, Cline Davis & Mann, Lyons Lavey NickelSwift, Merkley & Partners and TBWA Health, allNew York; Dieste Harmel & Partners, Dallas.Publicis’ Kaplan Thaler Group and Saatchi &Saatchi Healthcare; WPP’s Berlin Cameron/RedCell, Ogilvy & Mather Worldwide, J. WalterThompson USA, WPP Health Success and Wun-derman, all New York; CommonHealth, Wayne,N.J. CCA Advertising, New York. Digitas, Boston.

POWER PLAY:Pfizer introduced the Value Cardloyalty program—a first in the pharmaceuticalindustry—offering a free prescription of Viagra

after six are purchased. Under Mr. Kelly, Pfizeralso invited roster agencies to pitch ideas forViagra. Cline Davis & Mann had handled the $100million account. In August, a new campaign fromMcCann Erickson Worldwide put Viagra on asexier path; the lifestyle-oriented advertising isthemed “Get back to mischief.”

DOWNSIDE:The Viagra campaign shows howPfizer does not own the ED field anymore—observers see the new push as a response to themore sex-conscious ad themes of Levitra (Bayerand GlaxoSmithKine) and Cialis (Eli Lilly & Co. andIcos). Pfizer signed William Morris Agency to helpplace its brands in movies and TV, but FDA rules on“fair balance” could dampen those aspirations.Pressure on drug advertisers could increase if theDemocrats seize the White House next month.

2J. PATRICKKELLYVP-PRESIDENT, U.S. PHARMACEUTICALSPFIZER

AD BUDGET:

$2.84billion

AGENCY ROSTER INCLUDES:Omnicom’sBBDO Detroit and PHD Detroit, both Troy, Mich.Interpublic-backed GlobalHue, Southfield, Mich.Omnicom-backed Organic, Detroit.

POWER PLAY:Mr. Eberhardt, 40, is administeringmuch improved ad executions across all brands,beefing up his 2004 ad budget by $250 million formodel launches. The Chrysler Pacifica is on trackafter a fumbled 2003 launch. The hot newChrysler 300 sedan has boosted the brand’s salesand helped increase buyer consideration acrossthe entire Chrysler lineup by about 25% vs. a yearago; awareness is up 50%. Jeep sales are upwithout much new product. A new Chrysler brand

campaign is themed “Inspiration comesstandard,” replacing “Drive+Love.” Theautomaker shows a willingness to keep trying non-traditional ways to reach prospects such as online,events and videogames. Chrysler introduced theindustry-first “Stow and Go” fold-flat rear seats inDodge and Chrysler minivans. It created strongawareness for Hemi (engine) as a brand.

DOWNSIDE:Despite selling more cars and trucksthrough August than a year ago, Dodge wassurpassed by Toyota in sales. Chrysler faces thechallenge of Dodge Dakota midsize pickup launchthis fall in a sluggish segment. Resale values of itsproducts are not as high as top Japan carmakers.

3JOEEBERHARDTEXEC VP-GLOBAL SALES AND MARKETING,CHRYSLER GROUPDAIMLERCHRYSLER

AD BUDGET:

$2.09billion

AGENCY ROSTER INCLUDES:Grey GlobalGroup’s Grey Healthcare Group and MediaCom;Havas’ Arnold McGrath, Euro RSCG Worldwide andMPG; Interpublic’s FCB HealthCare, all New York.Publicis’ Publicis Mid-America, Dallas; Saatchi &Saatchi, New York. WPP’s CommonHealth,Parsippany, N.J.

POWER PLAY:Sports have been good to Mr.Pernock and GlaxoSmithKline. Former NFLplayer/coach Mike Ditka is “Tackling Men’s Health”for Levitra, the ED remedy from GlaxoSmithKlineand Bayer; last month, fellow Hall of Famer TonyDorsett joined the program. Meanwhile, Glaxo’sWellbutrin XL depression medication is a sponsor

of Nascar driver Bobby Labonte. As part of thatdeal, Glaxo sets up screening facilities at racetracks.Such efforts aren’t as glaring a target for critics asprime-time TV commercials. Which is not to rap TVadvertising, since Levitra and rival Cialis bothadvertised on the year’s biggest TV event, theSuper Bowl.

DOWNSIDE:Visible as pharma’s No. 2 marketer,Glaxo can’t avoid the heat from those whooppose DTC advertising, charging that itcontributes to the high price of drugs. Glaxo hasfelt it necessary to run ads raising questionsabout the safety of low-cost drugs imported fromCanada. That’s hardly a way to build your brands.

4DAVIDPERNOCKSENIOR VP-U.S.PHARMACEUTICALSGLAXOSMITHKLINE

AD BUDGET:

$1.55billion

AGENCY ROSTER INCLUDES:Publicis’ BurrellCommunications Group, Chicago. WPP’s BravoGroup, Kang & Lee and Wunderman, all NewYork; Ogilvy & Mather Worldwide and Y&RAdvertising, both Chicago; MindShareWorldwide, New York and Chicago.

POWER PLAY: Ms. Bousquette, 43, has shuffledspending to rely less on sales and promotionalevents, and reportedly has been seeking ideasoutside Sears’ agency roster to keep themessage fresh. The chain has added morelifestyle-focused brands and advertising.

DOWNSIDE:Sales are off with chains such asHome Depot and Lowe’s cutting into Sears’keystone appliance business, while fashion-forward discounters such as Target Storessiphon off young apparel shoppers. Sears hasannounced it will create the position of presidentof Sears Retail, which will put another layer of management between Ms. Bousquette and CEO Alan Lacey. This summer, the company absorbed its standalone multiculturalmarketing department; observers saw that as abad move for one of the largest mulitculturaladvertisers.

5JANINEBOUSQUETTEEXEC VP-CHIEF CUSTOMER AND MARKETING OFFICERSEARS, ROEBUCK & CO.

AD BUDGET:

$1.63billion

AGENCY ROSTER INCLUDES:Havas’ ArnoldWorldwide, Boston. Omnicom’s DDB Worldwide,Chicago; Tribal DDB and OMD Worldwide, bothNew York. Publicis’ Leo Burnett USA and BurrellCommunications Group, both Chicago. Omnicom-backed Del Rivero Messianu DDB, Coral Gables,Fla. Mother, New York. InLine Media, Denver.

POWER PLAY: Investors and consumers clearlyare lovin’ the changes McDonald’s has made torevitalize the Golden Arches, and Mr. Light, 62, isa key player in the effort. Systemwide same-storesales are up about 8.4% year-to-date and

continue to surprise Wall Street as the chainoverlaps increasingly difficult same-store sales,both incrementally and at the expense of rivals.

DOWNSIDE:The biggest challenges still lie aheadas the McGuru faces besting the chain’s ownimproved image. Now that the Mr. Light’s teamhas helped make McDonald’s more relevant andconsumers clearly don’t care how many caloriesare in a double cheeseburger, will they notice thatthe lines are still long, orders still get messed upand bathrooms still aren’t as spotless as theycould be?

6LARRYLIGHTEXEC VP-GLOBAL CHIEF MARKETING OFFICERMCDONALD’S CORP.

AD BUDGET:

$1.37billion

STENGEL PHOTO BY CHRIS CASSIDY

AD AGE MAIN 10-04-04 B 4 AADB 9/29/04 5:14 PM Page 1


AGENCY ROSTER INCLUDES:Grey GlobalGroup’s Grey Worldwide, New York. Interpublic’sCampbell Mithun, Minneapolis; Dailey &Associates, Los Angeles; Lowe & PartnersWorldwide and McCann Erickson Worldwide, bothNew York. Omnicom’s DDB Worldwide, New York.WPP’s Ogilvy & Mather Worldwide, New York andChicago; J. Walter Thompson USA and MindShareWorldwide, both New York. Amalgamated, NewYork. Publicis-backed Bartle Bogle Hegarty, N.Y.

POWER PLAY:As the top U.S. marketingexecutive at Unilever, Mr. Simmons, 49, helpedimplement a communications planning modelyears ahead of rivals, starting in 2000. Thesystem, under which a media-neutralcommunications idea based on consumers’habits guides marketing plans, has led to a far

broader marketing mix, including more use ofevent and experiential efforts. Axe, launched in2002 and now the No. 3 U.S. men’s deodorantbrand, is a poster child for the strategy’s success.

DOWNSIDE:There have been too few Axe-stylesuccesses and too many failures—from the decayof Unilever’s laundry detergent business to lossesin the bulk of its haircare portfolio that can’t makeup for gains by Dove. After slashing yearend adspending amid overall disappointing results lastyear, Unilever appears resolved to maintainsupport through 2004. Despite five years ofrestructuring, sales of Unilever’s leading brandsare expected to decline this year globally; NorthAmerican results should be better. Mr. Simmonsand Unilever’s other marketing execs bear littleblame for key problems in business fundamentals.

7 BRADSIMMONSVP-MEDIA SERVICESUNILEVER U.S.

AD BUDGET:

$1.33billion

AGENCY ROSTER INCLUDES: WPP’s J. WalterThompson USA and Ford Motor Media, bothDetroit; UniWorld Group, New York. ZubiAdvertising Services, Coral Gables, Fla.

POWER PLAY: The successful $100 million-plusdebut of the redone 2004 F-150 full-size pickupwas dubbed “the most important launch in thehistory of Ford” by Ford Motor Co. Chairman-CEOBill Ford. Results include impressive jumps in bothsales and buyer consideration. Ford Division underMr. Lyons will follow the F-150 formula for all keymodel launches with more integrated blitzes,dialing up events and online activities. Theautomaker hiked fourth-quarter ad spending by

50% for its new-model debuts, including theredone Mustang and all-new Freestyle sportwagon. The new, low-volume GT sports car droveinto the Super Bowl ad arena. Ford Focus was asponsor of the popular “American Idol.”

DOWNSIDE: The division needs new models to liftvolume. Its overall vehicle sales through Augustslipped by 4.3% to 1.87 million vs. a year ago; brightspots were the F-Series truck and Escape SUV. Butthe press panning the styling of upcoming FiveHundred doesn’t bode well for the new sedan. Thisyear’s Freestar minivan ads, with “talking head”radio auto journalist Rick Titus, were non-creativeand boring, but Mr. Lyons said dealers liked them.

8STEVELYONSPRESIDENT-FORD DIVISIONFORD MOTOR CO.

AD BUDGET:

$1.32billion

AGENCY ROSTER INCLUDES: Omnicom’sTBWA/Chiat/Day, Playa del Rey, Calif.; OMDWorldwide, Los Angeles. Ornelas & Associates,Dallas. True Agency, New York.

POWER PLAY:A stream of stylish new andredone models coupled with smart advertisingfrom TBWA/Chiat/Day, Playa del Rey, Calif., havespurred increased sales for both brands throughAugust. More buyers are putting the brands ontheir shopping lists. The automaker iscontributing its fair share to soaring corporateprofits of its Japanese parent. Nissan hired its

first media auditor earlier this year to ensuretargeting efficiencies; there have already beenimprovements with shuffling media buys,including more online ads and shifting dollarsfrom broadcast network TV to cable. Mr. Connellyis using new buzz marketing techniques viaNissan’s first urban shop, True Agency, New York.

DOWNSIDE:Nissan still needs to boost credibilityfor its first full-size pickup, the Titan, and its firstfull-size SUV, Armada, in these Detroit-dominatedsegments. The redesigned Quest minivan isn’tmeeting sales projections in a tough segment.

9JEDCONNELLYSENIOR VP-SALESAND MARKETING, NISSANAND INFINITI DIVISIONSNISSAN NORTH AMERICA

AD BUDGET:

$1.3billion

hree power players—Verizon Wireless’John Stratten, Sprint Corp.’s Tim Kellyand Cingular Wireless’ Marc Lefar—areleading their companies from marketer to

medium. The cell phone is transforming intowhat’s being dubbed the “third screen,”providing information and entertainment,along with the TV and PC monitor.

“The third screen is in fact a reality,” saysMr. Kelly, senior VP-consumer solutions,marketing, strategic planning, businessdevelopment and product realization at SprintConsumer Solutions. Already, Mr. Kelly says,Sprint has begun to view itself as an aggregatorof content akin to a cable TV company.

“We are very focused on the contentcustomers want,” he says, pointing out thatcell phones have the potential to become amobile TV device.

“It’s the beginning of a new era,” saysGlenice Maclellan, VP-messaging services atAT&T Wireless Mobile Multimedia Services.

At the leading edge of this new era will becarriers like Sprint, Cingular and Verizon.The wireless carriers—some of themoffshoots of major landline telcoms—havealready stolen the marketing spotlight byunleashing ad blitzes worth about $5 billion ayear to win subscribers.

“Wireless provides a tremendous reachvehicle,” says Mr. Lefar, chief marketing

officer at Cingular, adding, “It’s a very uniquecontent distribution vehicle and the next bigmarketing tool.”

Text messaging is leading the newrevolution. AT&T Wireless’ Ms. Maclellanserved as a point person on one of the biggestpackage-goods trials involving textmessaging. In the McDonald’s Corp.promotion, 250 million bags for takeoutorders were handed out during the SummerOlympics with a text messaging trivia contest.

Cingular has major text-messaging dealsin the works with Procter & Gamble Co. andCoca-Cola Co., Mr. Lefar says.

A $5 BILLION MEDIUMSuch efforts turn wireless communicationsinto a marketing medium. The amount ofmoney companies spend on mobile phones asa marketing medium in the U.S. is expected togo from less than $1 billion this year to anestimated $5 billion in 2005, says Peter Fuller,executive director of the Mobile MarketingAssociation. “When big brands get involved,it’s definitely a turning point,” he notes.

Mr. Fuller says messaging codes will be asubiquitous as Web addresses on shoppingbags during the dot-com boom. Integratedmarketing programs will be consideredlacking if they fail to include a text messagingelement starting as early as 2005, he says.

Beyond text messaging, some of theworld’s most powerful brands are eyeing themobile phone as a branding weapon. In themobile sector, Sprint offers its services as a hostfor other wireless brands. Already, VirginMobile operates through Sprint’s facilities.AT&T Corp. has announced plans to start anew wireless offering under a similararrangement with Sprint. That effortconceivably could give the AT&T brand asecond life in wireless.�

Wireless playersbecome mediumCATEGORY KILLERS:

‘New era’ for telecomsector as cell phones turn into marketing tools

TBy ALICE Z. CUNEO

BUILDING THE POWER GRIDTHE POWER PLAYERS PROFILED in this Special Report have key roles in the marketingstrategies of some of the leading advertisers as identified in the 49th annual 100 Leading NationalAdvertisers Special Report (AA, June 28). The marketers range from Procter & Gamble Co., No. 2 onthe 2004 LNA list, to Nike, which held the No. 59 slot.

Power Players gives Advertising Agethe opportunity to focus on the people behind the adbudgets—executives whose influence on their companies and even their industries extends beyondwhich commercial is placed on which TV show. In effect, the Power Players franchise puts a humanface on the immense media budgets of the leading advertisers in the U.S.

The executives featured in Power Players are chosen and ranked by Ad Ageeditors and beatreporters based on several criteria, starting with how much ad spending these executives have at theirdisposal. In some cases where the Power Player oversees spending for a specific unit of a company, theAd AgeDataCenter refined the LNA numbers to break out 2003 ad spending for that specific unit. Forexample, General Motors Corp. tops this year’s LNA list with $3.4 billion in U.S. ad spending for 2003.But Power Player Kim Kosak gets credit only for the $995 million used by Chevrolet.

Each Power Player was scored based on how much ad spending they have at their disposal (50%of the score), their marketing successes (30%) and leadership ability (20%). Also influencing thePower Player’s score was a company’s ability to leverage the media buying power of a corporateparent; other marketing spending such as sponsorships, distribution, merchandising and productinnovation; and the marketer’s overall impact in setting trends and innovating within its category.



AGENCY ROSTER INCLUDES:Publicis’ BurrellCommunications Group, Chicago; Conill andSaatchi & Saatchi, Torrance, Calif. Ground Zero,Marina del Rey, Calif.

POWER PLAY: Mr. Lentz, 48, is trying to evolvethe conservative brand with the new, moreemotional “Moving forward” umbrella adtheme. The automaker is sustaining its salesmomentum, surpassing Chrysler Group’sDodge as third-besting selling brand throughAugust vs. a year ago. Independent GroundZero, Marina del Rey, Calif., has been hired asfirst youth agency for several models, andToyota is kicking off a drive tour with onlineelements for several models. Otherdevelopments: Scion sub-brand has rolled outnationally; exclusive auto partnership with

eBay; and more shipments from Japan of thehot-selling second-generation hybrid Prius(first-quarter media buy was canceled due totoo many orders for the sedan).

DOWNSIDE:Dents in the armor? Toyota hadtwo major recalls this year: 128,000 Camrycars for a potential side air-bag problem and367,000 Highlander SUVs for possible faultychild-safety rear door locks. Toyota recentlychanged rules for dealer awards in its latestattempt to improve customer satisfactionratings. The automaker continues to lag incustomer satisfaction at dealerships; J.D.Power & Associates ranked it No. 28, below theindustry average, in this year’s annual surveyof buyers. Toyota has been trying to makeinroads in this arena since at least early 1998.

10JAMESLENTZGROUP VP-MARKETING, TOYOTA DIVISIONTOYOTA MOTORSALES USA

AD BUDGET:

$1.26billion

AGENCY ROSTER INCLUDES: Interpublic’sFoote Cone & Belding Worldwide, FCBHealthCare, Regan Campbell Ward, R/GA andInitiative, all New York. Omnicom’s DDBWorldwide, New York; Corbett HealthConnect,Chicago. WPP’s Ogilvy & Mather Worldwide, NewYork. Hal Lewis Group, Philadelphia. PrimeAccess, New York.

POWER PLAY: In an industry now starved forbreakthrough products, more attention is beingpaid to new brands that combine existing drugs.That’s the case with Merck, which is partneringwith Schering-Plough Corp. to introduce Vytorin.The combination of Merck’s Zocor and Schering’sZetia competes in the largest pharmaceuticalsegment, the $20 billion market for cholesterol-lowering drugs. But it will have to grapple with the

top drug brand, marketed by the top pharma—Pfizer’s Lipitor. Vytorin is especially important forMerck because the pharma company loses itspatent protection on Zocor in 2006. Otherimpending opportunities for Merck and Ms.McKines, 45: a drug combining Merck’s Singulairand Schering-Plough’s Claritin is planned to fightasthma; FDA approval appears imminent forMerck’s new COX-2 inhibitor pain drug Arcoxia.

DOWNSIDE:One big risk to direct-to-consumerdrug marketers became clear late last weekwhen Merck announced a worldwide recall ofarthritis drug Vioxx, due to concerns that itincreases risk of heart attack and stroke. So muchfor the hundreds of millions of ad dollars that havebeen spent on the brand during its lifetime. Similarhealth concerns have been raised about Arcoxia.

11CHARLOTTEMCKINESEXECUTIVE DIRECTOR-MARKETING COMMUNICATIONSMERCK & CO.

AD BUDGET:

$1.26billion

AGENCY ROSTER INCLUDES:Omnicom’sBBDO Worldwide, Atmosphere BBDO, Spike DDBand OMD Worldwide, all New York; DiesteHarmel & Partners, Dallas; Element 79 Partners,Chicago; GSD&M, Austin, Texas; TracyLocke,Dallas. Publicis’ Fallon Worldwide, New York.WPP’s J. Walter Thompson USA, New York.

POWER PLAY:To say PepsiCo is faring better inthe fizzling beverage industry than Coca-Cola Co.is hardly a ringing endorsement. Coke is smartingfrom its arrogance in not buying Gatorade whenit had the chance, and that serendipity for Pepsihas proved fruitful in the long haul. While non-carbonated soft drinks are also sluggish, Pepsi

under Mr. Rodkin, 52, has done a far better jobthan its rivals responding to the continuingexodus of consumers from carbonated softdrinks with seasonal beverages, flavored watersand juice drinks. Moreover, Pepsi’s much betterhiring and retention of promising marketingtalent have given the company retail leveragethat Coke can’t offer. Pepsi thus should emergebetter poised to move quickly into and out of amarket opportunity, say industry observers.

DOWNSIDE:Despite this varied activity, fizzydrinks still are the mainstay of the category, andPepsi has to do a better job at keeping the PepsiGeneration interested in them.

12GARYRODKINCHAIRMAN-CEO, PEPSICO BEVERAGES & FOODSPEPSICO

AD BUDGET:

$1.21billion

AGENCY ROSTER INCLUDES: Interpublic’sInitiative, Atlanta. Omnicom’s DDB Worldwide,Chicago. Richards Group, Dallas. VidalPartnership, New York.

POWER PLAY:“You can do it, we can help” hasbeen a strong, double-edged positioning for HomeDepot, which continues to reap the benefits ofhome ownership and the home improvementboom. Advertising continues to appeal to both thedo-it-yourselfer and to the “do it for me” crowdHome Depot is increasingly courting withenhanced services. Under Mr. Costello, 57, HomeDepot continues to expand its leverage ofsponsorships including popular home-

improvement shows on The Learning Channel andan attention-getting Olympics tie-in. The chain isstepping up its courtship of Hispanic customerswith a new ad agency, Vidal Partnership, New York.

DOWNSIDE:With interest rates on the rise, thehome refinancing boom that fueled Home Depot’ssales for the last three years may lose somesteam. The company has admitted that inflationand the recent spike in fuel prices have begun toaffect sales. Lowe’s aggressive expansion andmarketing also could begin to take their toll. Andwith nearly every broadcast and cable networkdeveloping home makeover shows, the glut couldtake the edge off Home Depot’s TV sponsorships.

13JOHNCOSTELLOEXEC VP-MARKETING AND MERCHANDISING, AND CHIEFMARKETING OFFICERHOME DEPOT

AD BUDGET:

$1.15billion

AGENCY ROSTER INCLUDES: Interpublic’sMcCann Erickson Worldwide and UniversalMcCann, both New York. Publicis’ Verizon Media atZenith, New York. Interpublic-backed GlobalHue,Southfield, Mich. Viva Partnership, Miami.

POWER PLAY: Verizon Wireless has been laudedas one of the best carriers in the business, and themarketing spearheaded by Mr. Stratten, 43,echoes exactly that positioning with its “Can youhear me now?” campaign that puts the Verizonman to work wherever cell phone users are. Proofof its success: Verizon has one of the lowest

churn rates in the business, while its acquisitionrate is one of the best, adding more than 1 millionnet subscribers for five straight quarters.

DOWNSIDE:Verizon hasn’t been as aggressiveas its rivals on the data services side of thebusiness. However, it recently announced plansfor a major push in mobile broadband service,taking on Nextel and Sprint. As the perennialwireless price wars ensue, Verizon may feel someheat simply because the cost of quality isn’tcheap. Rivaling its rate of acquiring newcustomers is low-cost competitor T-Mobile USA.

14JOHNSTRATTENVP-CHIEF MARKETING OFFICERVERIZON WIRELESS

AD BUDGET:

$1.18billion

AGENCY ROSTER INCLUDES:Rubin Postaer &Associates, Santa Monica, Calif. La Agencia deOrci & Asociados and Muse Cordero Chen &Partners, both Los Angeles.

POWER PLAY:The fourth quarter will be themost active for American Honda as 2005 modelsroll out. The automaker has upped online adactivity: a cool contest compared entrants’ looksto various Honda vehicles, tying in with a similarTV spot. It will also use more broadcast networkTV for the 2005 Odyssey minivan launch, shiftedfrom heavier spot TV buys. The Odyssey gets

more online ads and a buzz marketing event inTimes Square, unusual for Honda. Acura ismaking impressive gains in sales, partly throughnew models. The Honda Civic small car line triedto keep front-of-mind with another youth-targeted, summer concert tour.

DOWNSIDE: Honda Division had a tough 2004,just two years after its ambitious new-productblitz. Sales of the Honda brand slipped throughAugust by 2.3% to 812,292 units, says AutomotiveNews. Is this the year Honda Division breaks its 10-year run of setting continual annual record sales?

15ERICCONNASSISTANT VP-ADVERTISING, HONDA AND ACURAAMERICANHONDA MOTOR CO.

AD BUDGET:

$1.14billion



AGENCY ROSTER INCLUDES: Interpublic’sMcCann Erickson Worldwide, New York and SanFrancisco; Universal McCann Worldwide, NewYork. WPP’s Wunderman, New York.

POWER PLAY: IT spending is back, and Ms.Mathews, 37, is guiding Microsoft marketing tomake sure it get its share. New marketing andadvertising initiatives for MSN (a new version withmore butterfly ads) and the Windows MediaPlayer garnered attention. Microsoft’s Xboxgame platform continues to steal market sharefrom Sony PlayStation, and should get a

marketing boost when the new Xbox 2 debutsnext year.

DOWNSIDE: Microsoft never followed throughon its promise to spend more to stave offcompetition; ad spending for the first half of 2004was $186 million, sliding 29.5% from the sameperiod in ‘03, according to TNS MediaIntelligence/CMR. Microsoft’s big product of2004, Windows XP Service Pack 2, was a bigdisappointment, both in terms of productperformance and marketing communicationsthat might explain its benefits.

16MICHMATHEWSVP-MARKETINGMICROSOFT CORP.

AD BUDGET:

$1.15billion

AGENCY ROSTER INCLUDES: Interpublic’sAvrett, Free & Ginsberg; Foote Cone & BeldingWorldwide; R/GA; and Universal McCannWorldwide, all New York; Casanova PendrillPublicidad, Irvine, Calif.; Dailey & Associates andMcCann Erickson Worldwide, both Los Angeles.Havas’ Euro RSCG Worldwide, N.Y. MDC’s Colle &McVoy, Minneapolis. Omnicom’s Corbett AccelHealthcare Group, Chicago; Goodby, Silverstein &Partners, San Francisco; TBWA Worldwide, N.Y.Publicis’ Fallon Worldwide, Minneapolis; Bromleyand Nelson Communications, both N.Y.; PublicisWorldwide, Dallas. WPP’s Berlin Cameron/RedCell, Ogilvy & Mather Worldwide and Sudler &Hennessey, all N.Y.; Mendoza Dillon & Asociados,Aliso Viejo, Calif.; J. Walter Thompson USA,Chicago. BLVDwest, Newport Beach, Calif. MediaHorizons, Norwalk, Conn.

POWER PLAY: Under Ms. Crawford, Nestlerecently developed new minimum performancerequirements for trade promotions that its retailpartners must meet to get paid. To likewise driveefficiencies, Nestle is in the midst of a review forits $1.5 billion global media account. Nestle hasstarted using consumers who call its toll-freenumbers for market research that has alreadyinfluenced packaging and advertising changes.

DOWNSIDE:Nestle is battling to play in healthierfoods. Earlier this year, Ms. Crawford, 43, shiftedits $46 million Stouffer’s “Red Box” frozen mealsbusiness to J. Walter Thompson USA, Chicagofrom Euro RSCG Worldwide, New York, toreposition the brand as healthier. Nestle hasn’tbeen able to gain as much traction in sugar-freecandy as Hershey Foods and Russell Stover.

17 KARENCRAWFORDDIRECTOR-MEDIA ADVERTISING AND RELATIONSHIP MARKETINGNESTLE USA

AD BUDGET:

$1.11billion

AGENCY ROSTER INCLUDES: Interpublic’sFoote Cone & Belding Worldwide, Chicago andNew York. Publicis’ Leo Burnett USA, Chicago;MediaVest, New York. WPP’s Bravo Group,Ogilvy & Mather Worldwide and UniWorld Group,all New York; J. Walter Thompson USA, Chicago.Lord Group, New York.

POWER PLAY:Kraft has said it plans to boostmedia spending by $500 million to $600 millionthis year to build its key trademarks, and as headof marketing and sales, Mr. Johnson is overseeinga strategy to develop “fewer, bigger, better” newproducts. Among the efforts for efficiency are

pushes for new beverage acquisition VeryfineFruit, and Kraft’s marketing partnership withStarbucks and Tazo Tea. Mr. Johnson, 47, alsospearheaded a promotional alliance with “SouthBeach Diet” author Arthur Agatston. Kraft hasannounced plans to develop a pay-for-performance structure for trade promotion.

DOWNSIDE: Kraft has had to acknowledge itslimitations as private-label encroached on itsbusiness in such categories as cheese, deli andcoffee, where it has responded by loweringprices. Observers say crucial categories likecereal have been ignored.

18DAVEJOHNSONPRESIDENT-NORTH AMERICACOMMERCIAL, KRAFT FOODSALTRIA GROUP

AD BUDGET:

$1.08billion

or power players in the consumerelectronics market, digital downloadshave changed everything.Not so long ago sales were stagnant,

and the potential of digital technology wasmired in doubt as illegal downloads of musicran rampant.

But the success of the iPod has changed thegame. It’s not only that technology andhardware marketers are rushing to meetconsumer demand for digital music products,but also that those digital music players havebecome a marketing tool—a for computerand electronic companies to lure newcustomers to their portfolios of products.

The hot-selling item for this holidayseason will be hand-held digital musicplayers, now driving a resurgence inconsumer electronics sales. Also helped byimproved sales of high-definition TVs,videogame consoles and in-car entertainmentsystems, industry sales are expected to hit ahigh of $108 billion this year, according tothe Consumer Electronics Association.

“The promise of digital technology—getting your entertainment where you wantit, when you want it and how you want it—has finally arrived, and everyone wants to getin on it,” says Jeff Joseph, VP-communicationsat the CEA.

A major turning point came last yearwhen the runaway success of AppleComputer’s iTunes Music Store proved thatconsumers were happy to pay for songsdownloaded to their computers and digitalmusic players if the price was reasonable andthe technology worked.

Apple is now selling 16 million songs permonth at 99¢ each. Apple claims 70% of legalmusic downloads, as well as about half of theU.S. market for hand-held music players,thanks to its popular iPod device.

COMPETITION MULTIPLYINGIts leadership is under attack, however, ascompetitors multiply. Major online musicpurveyors now include RealNetworks’Rhapsody, Roxio’s Napster, Wal-Mart Stores,Sony Corp. and Microsoft Corp., whose MSNMusic offering was unveiled last month.

Industry observers expect the market forlegitimate digital music downloads to increaseby more than 170% over the coming year.

Microsoft’s music service offers songsplayable on 70 different types of devices. Apple’siPod plays only music downloadable from theiTunes site, a detail that may eventually createmajor challenges for the company.

Sales of portable music devices arebooming, with a 90% increase to 5.7 millionunits expected in 2004, says the CEA. Makersof all types of computers and chips, includingIBM Corp. and Intel Corp., are getting intothe game through development of platformssupporting the growth of digitalentertainment

Hewlett-Packard Co., riding high onstrong sales of its digital cameras and printersfor consumers, didn’t want to miss out on theportable music revolution. HP got into themarketplace quickly by partnering withApple to produce its own version called theApple iPod From HP.

Although it looks and functions exactlylike Apple’s iPod, HP is differentiating itsversion by offering customizable, printablecovers for the devices. It’s also pushing theproduct through broad, PC-oriented retailchannels where it has strong market share,including Best Buy Co., CompUSA,RadioShack and Costco.

ENTERTAINMENT OPTIONS“Our goal is to get you the content youwant—music, movies, TV shows, games andphotos—on the digital device of your choice,”says Allison Johnson, senior VP-corporatemarketing at HP and a 2004 Power Player.

In its advertising, HP is also promotingeasy interoperability of all its consumer-

targeted devices, which is expected to helpgrease sales of its iPod.

“Making things easy is, of course, reallyhard,” says Ms. Johnson.

The future of digital entertainment isexpected to go well beyond music. Microsoftexecutives have said MSN Music is less aprofit driver than a magnet for its overallMSN offerings that will become increasinglyenriched by digital technology.

Its new services include MSN MusicRadio, which provides ad-supported radioprogramming based on actual local radiostations. (For $30 a year, subscribers can get itminus advertising.) Next up: A Microsoftportable video player with manufacturingpartners Samsung and Creative Technology.The hand-held device will allow consumers toplay TV shows and video, as well as music.

Analysts say it’s premature to gaugedemand for a portable video device, butmarket research has shown strong consumerinterest. The CEA’s Mr. Joseph notes: “So far,the rule has been if you build a bettermousetrap, consumers will come.” �

Portability boostselectronics salesCATEGORY KILLERS:

Success of iPod sparksrash of mobile devices

FBy KATE FITZGERALD

“So far, the rule is if you build a bettermousetrap, theconsumer will come”



AGENCY ROSTER INCLUDES:Havas’ BrannWorldwide, Chicago. Interpublic’s Foote Cone &Belding Worldwide, Caparra, Puerto Rico.Omnicom’s Organic, San Francisco. Publicis’Publicis BOS Group, Publicis Dialog and Saatchi &Saatchi, all New York; Publicis & Hal Riney, SanFrancisco. WPP’s VML, Kansas City, Mo.BVK/Meka, Miami. Callahan Creek, Lawrence, Kan.Lewis Advertising, Rocky Mount, N.C. ModemMedia, San Francisco. NKH&W, Kansas City, Mo.

POWER PLAY:Sprint’s Fair & Flexible plan struckan aggressive blow to the category’s standardrate structure based on plans that allow fixednumbers of minutes for a fixed price but then

charge high rates for overage. More good newsfor Mr. Kelly, 45, is that execution was strong in anOlympic campaign asking children to predict howmany minutes they would be practicing for asport. Sprint also has continued to leverageleading-edge services in the marketplace,especially in the burgeoning data services arena.

DOWNSIDE:Sprint’s customer servicecontinues to be its Achilles’ heel, and analystswarn the telco ignores the issue at its own peril.It’s paying the price. Sprint’s churn rate is amongthe highest of the major carriers, about 2.3%compared with Verizon and Nextel’s industryleading rate of about 1.5%.

19 TIMKELLYSENIOR VP-CONSUMER SOLUTIONS,MARKETING, STRATEGIC PLANNING,BUSINESS DEVELOPMENTAND PRODUCT REALIZATIONSPRINT CONSUMER SOLUTIONSSPRINT CORP.

AD BUDGET:

$1.07billion

AGENCY ROSTER INCLUDES:Omnicom’sDDB Worldwide and OMD Worldwide, bothChicago and Dallas; Dieste Harmel & Partners,Dallas. Amistad Media Group, Austin, Texas.InterTrend Communications, Long Beach, Calif.

POWER PLAY:Mr. Boylson, a longtime veteranof J.C. Penney, was named the chain’s chiefmarketing officer last year. The executivecontinues to tinker with the “It’s all inside”campaign that helped put Penney’s house brandson the map. This year, he hired a new Hispanicagency, Dieste Harmel & Partners, Dallas, to zeroin on what’s a key market for the retailer, and isseeking more efficient media buys along with

agency OMD. The chain has been doing well andreporting rising sales in recent quarters as aresult of its redesigned stores and improvedproduct mix. Penney’s has added new lines fromlifestyle celebrities Chris Madden and Colin Cowieto round out its home lines.

DOWNSIDE:Seesawing consumer confidencemakes sales forecasting difficult, and Wall Streetis still irked by what analysts see as low sales-per-square-foot numbers. Penney’s remains underpressure from fashion-forward discounters suchas Target Stores, and same-store sales early nextyear could suffer by comparison to the strongnumbers posted in early 2004.

20 MICHAELBOYLSONCHIEF MARKETINGOFFICERJ.C. PENNEY CO.

AD BUDGET:

$1.02billion

AGENCY ROSTER INCLUDES: Interpublic’sCampbell-Ewald and General MotorsMediaworks, both Warren, Mich. Publicis’ GeneralMotors Planworks, Detroit. Interpublic-backedAccentmarketing, Coral Gables, Fla.

POWER PLAY:After returning to Chevrolet inJune 2003 to oversee advertising, Ms. Kosak ledthe charge on developing Chevy’s umbrella“American Revolution” campaign. The bold effortis signaling the brand’s heritage and onslaught ofnew models. It’s getting plenty of media backing,including a major presence during Olympicbroadcasts. Traffic to chevrolet.com jumped by50% since the campaign broke, and prospectleads to dealers from the site are up 170%. The

new Colorado midsize pickup got good launchexposure as part of an in-program giveaway to afinalist on CBS’ “Survivor: All-Stars” this pastspring. Chevrolet reupped its U.S. ski teamsponsorship in a deal separate from GM’s broaderone with the U.S. Olympic Committee.

DOWNSIDE:While the brand’s total salesthrough August rose by 16,707 units from a yearago, with car sales increasing by 57,217 units,Chevrolet’s crucial truck sales slipped by 40,510units, according to Automotive News. Colorado’slaunch got off to a sluggish start, though GM saysthat industrywide the mid-pickup segment is soft.With several key new models out, it’s too soon totell whether Chevrolet’s “Revolution” is a coup.

21KIMKOSAKGENERAL DIRECTOR- ADVERTISING ANDSALES PROMOTION,CHEVROLETGENERAL MOTORS CORP.

AD BUDGET:

$995million

AGENCY ROSTER INCLUDES: Interpublic’sCampbell Mithun and Zentropy Partners, bothMinneapolis; Casanova Pendrill Publicidad,Costa Mesa, Calif. Publicis’ Arc, Saatchi &Saatchi and Zenith Media, all New York; BurrellCommunications Group, Chicago.

POWER PLAY: Mr. Addicks was promoted to chiefmarketing officer from VP-Gcom marketing divisionsince last year’s Power Players, based largely on hissuccess building General Mills’ internal “BrandChampions” branding model. To drive efficiencies,General Mills recently pledged to cut 20% of itsproduct portfolio, a move that’s expected to allow Mr.Addicks, 49, to focus more closely on building thecompany’s top-selling products. Mr. Addicks made a

big play in the health arena, an area General Mills plansto further emphasize, with the launch this year of low-sugar versions of top kid cereals including Cocoa Puffsand Trix, backed by unprecedented in-store and adsupport. Competitor Kellogg Co. had earlier launchedlow-sugar Fruit Loops and Frosted Flakes.

DOWNSIDE:At a time when General Mills badlyneeds new-product success stories, a much-touted crispy glaze innovation in the Pop Secretmicrowave popcorn line was recalled due toconsumer complaints about burns. Likewise, thecompany pulled back on an intended extension toits low-carb Total Protein cereal and lowered thepremium price of the base Total Protein, whichretailers expect won’t last long due to poor sales.

22MARKADDICKSCHIEF MARKETING OFFICERGENERAL MILLS

AD BUDGET:

$956million

AGENCY ROSTER INCLUDES:Omnicom’sBBDO Worldwide, Atlanta and New York;Targetbase, Irving, Texas; OMD Worldwide,Atlanta and New York. Publicis’ Relay, Chicago.WPP’s Mendoza Dillon & Asociados, Irvine, Calif.Ant Farm Interactive, Atlanta.

POWER PLAY: Thanks to the imminentacquisition of AT&T Wireless, Cingular will jump inrank over Verizon Wireless to become the nation’sNo. 1 cellular provider. Under the leadership of Mr.Lefar, 40, Cingular already has taken up themantle of the category leader, for example, byopening up contests to not just its own base but toall wireless providers’ subscribers. Cingular sent a

fleet of vans across the U.S. explaining advancedcell-phone features hoping to grow the category.

DOWNSIDE:Cingular’s surge to No. 1 isn’twithout peril, starting with the back-shop, nuts-and-bolts practicalities behind the integration ofAT&T Wireless customers into its base. Beyondthat, marketing already has proved a challenge asAT&T Corp., holder of the license for the AT&TWireless name, announced its plans to re-enterthe market. Sprint Corp. and Verizon Wirelesshave gained ground through a focus on hot newgizmos such as cameras, games and music. Mosttelling, Cingular’s net subscriber gains are halfthose of some market leaders.

23MARCLEFARCHIEF MARKETING OFFICERCINGULAR WIRELESS

AD BUDGET:

$940million

AGENCY ROSTER INCLUDES:Omnicom’sGoodby, Silverstein & Partners, San Francisco.Publicis’ Publicis & Hal Riney andZenithOptimedia, both San Francisco.

POWER PLAY: Hewlett-Packard’s linkup withApple Computer to launch the iPod From HPshows great initiative, plus a bit of humility inbeing willing to admit when the other guy got itfirst. Ms. Johnson, 43, drove the newthematically similar campaigns for consumer(“You+HP”), enterprise (“Change+HP”) andbusiness (“Customers+HP”) to keep the bigbrand under one umbrella. The b-to-bcampaign had to cross vertical segments such

as financial services and manufacturing. Last-mile details like agreements with Best Buy Co.and Circuit City Stores for creative HP productdisplays show the company’s willingness to putits money down when it comes to drivingbusiness through marketing.

DOWNSIDE:Wide product portfolios alwaysrequire careful management and ongoinginnovation to succeed. A few missteps are agiven. HP was late to the game in digital imagingproducts such as PC camera docks and 29¢online prints. Still, HP believes in itself with amassive buyback of more than $2 billion in stockunder way.

24 ALLISONJOHNSONSENIOR VP-CORPORATEMARKETINGHEWLETT-PACKARD CO.

AD BUDGET:

$899million

BOYLSON PHOTO BY ED LALLO



AGENCY ROSTER INCLUDES: WPP’s J. WalterThompson USA, New York.

POWER PLAY: The grandson of companyfounder Estee Lauder, Mr. Lauder was promoted topresident-CEO from chief operating officer last Julyand is boldly mining the beauty products behemothfor growth outside of its largest brands. Mr. Lauder,44, recently cited the company’s nascent haircaredivision as a major growth driver, building amongothers its professional salon brands Aveda andBumble & Bumble through tactics including a majorpush during New York’s Fashion Week that it willtout to hairdressers and consumers. Mr. Lauder hasalready driven a relaunch of the Origins brand hespearheaded as president in 1990. An ongoingagency review is widely expected to maintain thecompany’s relationship with J. Walter ThompsonUSA, New York, and to use the agency beyond just

media placement for creative assistance on its mostadvertised brands—Estee Lauder and Clinique—among others.

DOWNSIDE:The cluttered fragrance categorycontinues to be a challenge for Estee Lauder,despite the company holding five of the top 10fragrances. Mr. Lauder recently signed deals withDonald Trump and Sean “P. Diddy” Combs formen’s fragrances for fall 2005. In addition, Mr.Lauder faces trouble expanding his company’sbrands beyond its traditional prestige channels.Earlier this year, Lauder sold the mass teen brandJane that it had purchased in 1997. Recently,Lauder’s BeautyBank unveiled at BergdorfGoodman the new Flirt cosmetics line intendedexclusively for midlevel department store Kohl’s.Mr. Lauder explained the event was to establishan aspirational image for Flirt.

25WILLIAMLAUDERPRESIDENT-CEOESTEE LAUDER COS.

AD BUDGET:

$906million

AGENCY ROSTER INCLUDES: Interpublic’sR/GA, New York. WPP’s Ogilvy & MatherWorldwide, Ogilvy & Mather Interactive andOgilvyOne Worldwide, all New York. AnswerThink,New York. Modem Media, Norwalk, Conn.

POWER PLAY: Ms. Kohnstamm, 51, cleared adifficult marketing hurdle this year, overseeingthe successful transition away from IBM’s long-running, powerful “e-business” message to abroader “on-demand business” tag to betterrepresent Big Blue’s capabilities and futureambitions. The IBM bottom line is also strong,thanks to growth across almost all its globalbusinesses (except financing); revenues for the

first half of 2004 hit $45.4 billion, up nearly 9%from a year earlier.

DOWNSIDE: IBM is betting its business, andbrand, on several still-emerging technologiesincluding on-demand computing and the Linuxopen-source operating system. It has investedheavily not only in marketing and advertisingthese ideas, but also in supporting them, forexample, with the purchase of PwC Consulting inlate 2002 and the revamp of internal systems.While IBM has signed up many customers (someused as case studies in its print advertising), on-demand needs to be in even greater demand forcontinued growth.

26ABBYKOHNSTAMMSENIOR VP-MARKETINGIBM CORP.

AD BUDGET:

$862million

AGENCY ROSTER INCLUDES:Publicis’Starcom, Chicago. Avenue A, Seattle. Digitas,Chicago. La Comunidad, Miami Beach, Fla.

POWER PLAY:Mr. Linton, 47, leads adepartment that’s been willing to try new ideas inboth general advertising and non-traditionalmedia, such as a guerrilla Web site featuring amini-movie culled from one of its ads or anexclusive DVD deal with the Rolling Stones. Theelectronics retailer has identified a group of storesit’s using as “labs” to try new in-store marketing

ideas, and it broke a new Hispanic ad effort.

DOWNSIDE:Best Buy has benefited from thewidespread adoption of DVDs and the fall in theprice of newfangled technology such as plasmaTVs. Without those advantages, the chain willneed to market heavily going into this year’s keyholiday season to show sales increases. RivalCircuit City Stores recently named a new chiefmarketing officer and agency, and is expected toput Best Buy’s feet to the fire during this holidayseason.

27MICHAELLINTONEXEC VP-CONSUMER AND BRAND MARKETING, AND CHIEF MARKETING OFFICERBEST BUY CO.

AD BUDGET:

$838million

im kosak has climbed a few rungs ofthe ladder at General Motors Corp.since arriving there out of college in1989 as a market research analyst at

Chevrolet, and her latest ascent places herback at the division in which she began.

Ms. Kosak became general director-advertising and sales promotion in June 2003after GM created a new layer of admanagement at Chevrolet, GM’s largestdivision accounting for more than half of theauto giant’s U.S. sales. She returned to Chevyafter a successful four-year stint as advertisingand promotion director of sibling Cadillac.

The challenges at Chevrolet and Cadillacwere very similar. “Both are great Americanbrands and both needed imageenhancements,” says the Detroit area native.

Mr. Kosak worked with Chevrolet’slongtime agency, Interpublic Group of Cos.’Campbell-Ewald, Warren, Mich., to developthe new umbrella “American Revolution”brand campaign. She says her mission is to getChevrolet on people’s radar screens. Launchedlate last December, the blitz is big, bold yetwith a clean, simple look. Ads from thecampaign got more than 200 airings duringthis summer’s Olympics TV broadcasts.

Traffic to chevrolet.com is up 50% since the

campaign started, and prospect leads to dealersfrom the site are up 170%. “It’s the newproducts and powerful campaign that are gettingthe message out to the customer,” she says.

Chevrolet sales rose by just 0.9% throughAugust, to 1.81 million units, vs. a year ago,according to Automotive News, a siblingpublication of Advertising Age. Yet to comethis year is the launch of its all-new 2005Cobalt small car.

Chevrolet’s car lineup still needs a boost,despite the success of the redone Malibu carline and sibling Malibu Maxx sport wagon.While Chevy car sales are up this year, GMhas generous incentives above the industryaverages, and several models are heavy infleet sales to rental car companies and otherbusinesses. Its truck sales dipped a bit, mostlydue to slides in sales of big, gas-guzzlingSUVs, the Suburban and Tahoe.

Ms. Kosak brings a record of success atCadillac, where she called her brand repositioningtask “daunting.” When asked how she raises thecreative bar at ad agencies, the 2004 Power Playersays marketers need to give very clear strategies totheir shops. But, Ms. Kosak adds, “you partner withthem. You can’t use a stick.” She says she acted as apartner with Campbell-Ewald when presenting“American Revolution” work to GM brass.

The challenge ahead includes succeedingin two crucial new-model launches thisyear—the Cobalt, which replaces the Cavaliercar line, and the 2005 Uplander sport van,which replaces the Venture minivan. Bothoutgoing models are long in the tooth and notvery competitive in their segments.

It’s too soon to call the “AmericanRevolution” a coup.�

RevolutionaryChevy sets toneCATEGORY KILLERS:

GM puts Kosak in chargeof winning back shoppers

KBy JEAN HALLIDAY

AGENCY ROSTER INCLUDES: Interpublic’sAlchemy and Deutsch, both New York. Publicis’Conill, New York.

POWER PLAY: Although McNeil Consumer &Specialty Pharmaceuticals and Ms. McEvoycontrol only 29% of Johnson & Johnson’s $2billion in ad spending, the unit made adisproportionately big bang in the marketingworld when late last year it moved the $100million Tylenol account to Deutsch, New York.Saatchi & Saatchi had held the account since thepainkiller was introduced in 1976, but when acategory leader is under assault, drastic change isin order. The move showed how Ms. McEvoy iswilling to think outside the box to reinvigorateTylenol. McNeil has also sought help from

Brainreserve and Deutsch sibling FutureBrand.

DOWNSIDE: As Tylenol strives to “PushThrough the Pain” with such innovative tactics asits tie-in with “Survivor” earlier this year, theassault is bound to continue from No. 2 Advil.Tylenol’s sales dropped 10.5% last year asWyeth’s Advil climbed 1.9%, according toInformation Resources Inc. And DTC marketers,also under pressure, are trying to easeconsumers’ pain with such brands as Pfizer’sarthritis drug Celebrex. Innovative marketingbehavior also poses some risks. McNeil lastmonth agreed to pay $52,000 in civil penaltiesafter New York state charged that ads for aTylenol sweepstakes tied to “Survivor” impliedthat consumers had to make a purchase to enter.

28 ASHLEYMCEVOY VP-MARKETING, MCNEILCONSUMER & SPECIALTYPHARMACEUTICALSJOHNSON & JOHNSON

AD BUDGET:

$581million



AGENCY ROSTER INCLUDES: Interpublic’sMcCann Erickson Worldwide, New York. LaMicela, New York.

POWER PLAY:As part of building a more

prestige image for the mass L’Oreal Paris brand,Ms. Hamilton recently launched the firststandalone retail store in Los Angeles featuringthe brand’s array of hair color, cosmetics, skincareand haircare products. The store, dubbed The

29CAROLHAMILTONPRESIDENT-GENERAL MANAGER,L’OREAL PARIS DIVISIONL’OREAL

2003 ADBUDGET:

$575million

ADAMHELFANTVP-USA SPORTS MARKETINGNIKE

AD BUDGET:

$559million

30

AGENCY ROSTER INCLUDES:Wieden & Kennedy, Portland, Ore.

POWER PLAY:Nike and Wieden &Kennedy have become synonymouswith the crème de la crème inadvertising creativity, but Nike alsorelies heavily on sponsorship andother sports-related activities to helpkeep the swagger in its swoosh. Thatputs Mr. Helfant, 39, in a key positionto contribute to the marketer’ssuccess. The whole marketingpackage factored into Nike boostingits U.S. revenue by 12% to $1.4 billionfor the first quarter, ended Aug. 31. Mr.Helfant earlier this year helped brokera coup, the U.S. Olympic Committee’sapparel sponsorship for the 2006 and2008 Games. Adidas previously hadthe USOC sponsorship.

DOWNSIDE: Pinning your marketingto sports and top athletes brings with itgreater potential risks than relying oncowboys or doughy little chefs. A fewdays after Nike signed Kobe Bryant to a$45 million contract, the Lakers starwas arrested for sexual assault.Though the criminal case has beendismissed, Mr. Bryant isn’t likely to jointhe top tier of endorsers anytime soon.Nike, however, has begun discussionswith Mr. Bryant’s high school to markethis prep-school jersey and otherapparel. Meanwhile out on the links,Tiger Woods is having (what for him is)a lackluster year.

Living Lab, is intended to help L’Oreal learn moreabout consumers in a realistic setting. Ms.Hamilton, 52, is also overseeing the influx of avariety of technology-driven launches, includingan expansion of the successful True Matchfoundation line, new Cashmere Perfect creamfoundation without water, a new transfer-proof lipsegment called Endless Kissable and the ReFinishtwo-step micro-dermabrasion kit. In its largestsegment, hair color, L’Oreal is putting marketingmuscle behind products that are designed forteenagers and men. L’Oreal this year signed popstar Jewel to represent its Feria hair color line

already touted by Beyonce.

DOWNSIDE:Advanced technology has itsdangers. L’Oreal recently had to pull itstechnologically savvy new hair color brand, L’OrealOpen, citing consumers’ difficulty understandingthe product in a category that thrives oninnovations. And while L’Oreal cites the skincarecategory as its biggest growth driver, it faces stiffcompetition from the prestige channel’s armada ofbeauty advisers. Ms. Hamilton, like rival Revlon,hopes to test the concept of beauty advisers withsome of L’Oreal’s larger mass retail partners.


adage special report 10.404. · 2013-07-31 · adage special report power players october 4, 2004...

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