Daily Buzz 1-19-11
Yum Puts A&W and Long John Silver’s on Block
- Yum Brands, parent company of Pizza Hut, Taco Bell and KFC, today announced it’s putting A&W All-American Food Restaurants and Long John Silver’s up for sale.
- The company said it has been focusing on aggressively growing overseas, particularly in China, as well as improving sales in the U.S. on its three main brands. “Over the past decade, Yum has delivered annual [earnings-per-share] growth of 13%, exceeding our 10% annual growth target. This has been driven by aggressively building restaurants in China and Yum Restaurants International at a pace of nearly four new restaurants every day of the year. We do not believe Long John Silver’s and A&W-All American Food restaurants fit into our long-term growth strategy,” David C. Novak, Yum Brands chairman-CEO, said in a statement.
- According to the statement, when Yum Brands was spun off from PepsiCo in 1998, 22% of its profits were sourced internationally. Today, about 65% of the company’s profits are from the China and Yum Restaurants International divisions. Yum said it expects that percentage to grow to 75% by 2015. In the U.S., Taco Bell accounts for approximately 60% of the company’s profits, followed by Pizza Hut and KFC. (www.adage.com)
Super Bowl Ad Time Up 27% Since 2001
- In accordance with its stature as America’s greatest secular holiday, the Super Bowl has been super-sized. Over the course of the last decade, ad time in the NFL’s showcase game has soared 27 percent, as commercial spots and network promos have expanded from a total of 82 in 2001 to 104 in Super Bowl XLIV.
- According to research from Kantar Media, CBS’ Jan. 28, 2001, presentation of Super Bowl XXXV featured 40 minutes and 15 seconds of commercial messaging; but for a few retrograde years, the allotment of spots has steadily increased.
- Last year’s Saints-Colts battle on CBS was punctuated by 47 minutes and 50 seconds of ads and network promos. In terms of quantifiable airtime, that 2,870-second load marked an 18 percent time differential versus the Giants-Ravens blowout 10 years earlier.
- Viewers who tuned in for the last 10 Super Bowl broadcasts were exposed to a whopping 425 minutes of commercial time, per Kantar, which estimated the total value of that load at around $1.62 billion. (www.brandweek.com)
- Li Ning Co. is increasing its investment and marketing in the U.S. as the Chinese sports-apparel maker attempts to become a global brand.
- Li Ning will invest $10 million in its U.S. business this year and enter a joint-venture with Acquity Group LLC to expand U.S. distribution, Li Ning Chief Executive Zhang Zhiyong said in an interview Tuesday.
- Acquity, a Chicago-based brand-consulting firm whose clients include General Motors Co. and the American Airlines unit of AMR Corp., is designing an ad campaign for Li Ning. (www.wsj.com)
NBA Game Promises to Be a Turkey? Call In the Turks—or the Filipinos
- Salih Eroglu prepared carefully for the Los Angeles Clippers’ big day-after-Christmas basketball game.
- The 33-year-old gathered Turkish baklava pastries, sparkling “evil eye” pendants and sunflower seed snack packs. He ordered 1,000 red “Turkiye” baseball caps and 1,000 T-shirts emblazoned with images of Hedo Turkoglu, Istanbul-born forward of the visiting team, the Phoenix Suns.
- On hand, too, were Turkish dancing girls, a Turkish pop star to sing “The Star-Spangled Banner” and raffle stubs for an airline ticket to Istanbul. In short, Mr. Eroglu had everything for a successful Turkish heritage event—an occasion meant to boost attendance for the Clippers, one of the National Basketball Association’s worst-drawing teams. (www.wsj.com)
Chrysler Seeks To Boost Jeep’s Marketing Mileage (Slideshow)
- Chrysler has pushed for better fuel economy from its line of Jeep SUVs and crossover vehicles, but it has also been trying to get more mileage out of the Jeep brand’s rugged, go-anywhere image and even its military heritage dating to World War II.
- Following the long-anticipated roll-out its new Grand Cherokee, Jeep is celebrating its 70th year with special anniversary editions of all its models. It has also opened up the family photo album that includes Jeeps dating back to the first vehicles built for a 1940-41 military competition.
- Jeep has been selling sport-utility vehicles since long before the term was coined. Some trace the SUV craze that got going in the 1990s to luxury versions of the Jeep Grand Cherokees and Grand Wagoneers of the 1980s. At that time the term “luxury truck” was largely an oxymoron but it has since become a recognized — and large — segment of the auto industry.
- Jeep says its models have appeal around the world and sells all its models outside the U.S. Each Jeep model is available with right-hand drive and with gasoline and diesel power trains depending on the market. (www.wsj.com)
Roche Skin-Cancer Drug Shows Promise
- Swiss drug giant Roche Holding AG said Wednesday its promising new skin-cancer drug helps patients with advanced forms of the disease live longer and without their illness worsening, according to late-stage trial data.
- RG7204 is a novel drug compound that targets a specific part in the cell, which is considered to be causing cancer in half of all patients who suffer from metastatic melanoma tumors. The drug tries to subdue activity of the mutated form of the so-called BRAF protein. (www.wsj.com)
Nike Introduces New Look for French Soccer Team
- After a disastrous 2010 World Cup, the French national soccer team made a symbolic break with the past this week, introducing a new uniform from a new sponsor, Nike. The outfit consists of an all-blue jersey and white shorts; the third color of the French flag, red, is revealed when players turn over the ends of their shirtsleeves.
- The new outfit is the centerpiece of Nike’s effort to recoup a more than 300 million euro ($400 million) investment, after it wrested the French soccer federation away from its longtime sponsor, Adidas. The deal, struck three years ago, before France’s soccer fortunes took a sharp turn for the worse, is by far the most lucrative sponsorship in the international game.
- “What Nike has now is a huge challenge,” said Henri de La Grandville, senior researcher at Sportcal, a firm in Lausanne. “The first thing they have to do is to sell a lot of shirts.”
For Les Bleus, as the soccer team is known here, Nike chose a design that is radically different from the previous generation of jerseys. While Adidas stuck to a traditional soccer aesthetic, featuring the French red, white and blue and its own logo, the new jersey features a thin collar and a sleek, monochrome torso. (www.nytimes.com)
- The National Basketball Association honored two licensees for the first time as part of its annual Retail Summit Awards.
- Majestic Athletic was named the first apparel licensee of the year for the “Notorious,” “Swagger,” and “Here’s to a Big Season” T-shirt programs.
- Wincraft was recognized as the first non-apparel licensee of the year. An NBA licensee for more than 30 years, Wincraft offers more than 3,600 NBA products, which are manufactured in the U.S. (www.licensemag.com)
Stewart-Haas Racing announces two race primary sponsor
- Oil filter brand Wix Filters has been announced as an official sponsor of Nascar Sprint Cup Series team Stewart-Haas Racing (SHR).
- Joining the Nascar team as its official filter, Wix will serve as the primary sponsor on Ryan Newman’s No. 39 Chevrolet Impala at two Sprint Cup Series races in 2011, the Budweiser Shootout at Daytona International Speedway and the Carfax 400 at Michigan International Speedway.
- Additionally, when not represented on Newman’s car’s livery, the Wix bran will have logo placement beneath the hoods of both (SHR) entries and on the sleeve of Newman’s overalls.
- Jeff Blocher, Wix Filters brand manager, said, “With Stewart-Haas Racing, we have an excellent partner to help promote our brand, but we also have a Nascar team that uses our products to help them win races and perform at the top level of the sport. It’s a point of pride when the guys working on the racecars come up and tell you they like using your products and they have great confidence that Wix Filters will get the job done every weekend.” (www.sportspromedia.com)
Jim Furyk endorses hotel brand
- Hotel chain Westin Hotels & Resorts has announced its sponsorship of professional golfer Jim Furyk, winner of the 2010 Fedex Cup and 2010 PGA Tour Player of the Year.
- Under terms of the deal, Furyk will wear the Westin logo on his hat at more than 20 events he will play in 2011.
- Additionally the golfer, known for his unconventional swing, will act as a Westin Hotels spokesperson, making appearances at resort locations on behalf of the chain’s loyalty programme.
- The deal is particularly pertinent given that Furyk was disqualified from the Barclays pro-am, the first tournament in the Fedex Playoffs, after his alarm clock failed to wake him in for his scheduled tee-off time. (www.sportspromedia.com)
UFC lures Toyo Tires back into the Octagon
- US-based tyre manufacturer Toyo Tire has signed a deal with the Ultimate Fighting Championship (UFC) that will see it return as the official tyre of the UFC this year.
- The company had previously sponsored the leading MMA series from 2006 to 2008.
- The new deal will see the Toyo Tire logo appear on the side of the ‘Octagon’ for six live UFC pay-per-view events this year, as well as on the canvas for select events to be broadcast on Versus and Spike TV.
- “Toyo Tires is proud to once again be the official tyre of UFC,” said Stan Chen, manager of events and motorsports at Toyo Tire. “UFC continues to grow, as does their dedicated fan base. This renewed sponsorship places the Toyo Tires name in front of those loyal fans, across North America and the world.” (www.sportspromedia.com)
TheLadders.com Dangles Edge To Job Seekers
- In today’s economy, with many more people looking for work than there are jobs, it helps to have an edge. In a new advertising campaign, TheLadders.com asserts that it is the place to give professionals seeking the most desirable (i.e., those earning $100,000 or more) positions that edge.
- The new ad campaign, which was created to coincide with seekers’ New Year’s resolutions to find new jobs, positions TheLadders.com as a site that will make applicants more attractive to potential employers through services such as providing one-on-one guidance through a personalized Job Search Advisor, resume reviewing or access to professional recruiters.
- The television commercials, which will air during different flights throughout the year, depict decidedly average-looking professionals (actual members of TheLadders who applied to be in the commercials, the ad agency says) striking model poses in office environments. The theme: Make Yourself More Attractive to Employers. (www.mediapost.com)
Lay’s and Doritos Are ‘Calling All Artists’ for Black History Month
- Frito-Lay North America’s Lay’s and Doritos launched a Black History Month Art Contest that asks consumers to submit an original piece of art online for a chance to win $5,000 and a gallery showing in their local community. The overall winner of the creative competition will be chosen in part by consumer voting.
- In addition, Frito-Lay will donate $1 to the UNCF—United Negro College Fund—for each consumer vote received and for each piece of artwork entered. If consumers also submit the 9-digit code from a bag of Lay’s potato chips or Doritos tortilla chips when voting, Frito-Lay will donate another $1 to UNCF, up to a maximum of $35,000. Frito-Lay is guarantying a minimum donation to UNCF of $25,000. (www.popsop.com)
Nike Supports Knicks Poetry Slam—Contest for Young NY Poets
- Knicks Poetry Slam is a joint project run by the New York Knicks and the Urban Word NYC (a non-profit organization involved in the field of youth literacy and personal development) aimed at encouraging young people from the big city to have their say in poetic format. This project is supported by the leading sportswear brand as Nike. This is a competition for young poets that allows them to demonstrate their talents in public and compete with others for a chance to earn a better future: the winners will be awarded with educational grants, $450,000 in total, www.nikestadiums.com reports.
- For the first time in the contest history, the program’s semifinal was held at Nike Stadium in Manhattan. Nike Stadiums are new multi-purpose destinations located in Berlin, London, Milan, New York, Paris and Tokyo. They serve as “stages for inspired performers, labs for innovative expressions, spaces where stories are told and others are written”, according to www.nikestadiums.com. (www.popsop.com)

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