Social/ Advertising: Hovis “Buzz”

Hovis embarks on first ‘buzz marketing’ drive
Hovis is launching its first marketing advocacy programme, to promote its recently launched Hearty Oats product. The Premier Foods bread brand is mirroring initiatives undertaken by Procter & Gamble, which has also used word-of-mouth programmes to raise awareness of its products. The aim of the campaign is to recruit 8000 advocates to help support the launch of the product, as Hovis introduces a greater word-of-mouth element to its marketing activity. Hovis Hearty Oats is the UK’s first loaf baked with 50% wholegrain oats and 50% wheat flour. Premier Foods claims that it can help to maintain normal cholesterol; the company has received the backing of charity Heart UK. Meh. For me Hovis is still about the Hovis ‘Bike’ advert from 1973 (Britain’s favourite TV ad apparently)

Reblog this post [with Zemanta]

Cadbury’s 800lb Gorillas: Kraft and Hershey

The UK’s most famous confectioner Cadbury has rejected a £10.2bn takeover bid from Kraft Foods that the Oreo and Dairylea-owner said would create “a global powerhouse in snacks, confectionery and quick meals” In a statement to the stock market this morning, however, the US food giant appealed directly to shareholders, saying it is “committed to working toward a recommended transaction and to maintaining a constructive dialogue and is announcing this proposal as a means to encourage and further that process”.
US confectionery group The Hershey Company has appointed JPMorgan to advise on its options as it weighs up a bid for Cadbury in the aftermath of Kraft’s £10.2bn offer. The Times has reported that Hershey’s could partner with Nestle, the Swiss multinational, in any counterbid. The move came as Irene Rosenfeld, Kraft’s chairman and chief executive, rebuffed claims Kraft could be forced into overpaying.
Should Kraft Foods’ takeover play for Cadbury eventually succeed, it would create a $51 billion package-food and confectionary company and a $2.7 billion global advertiser. Advertising Age estimates that the two companies would spend about $1.5 billion in the U.S. alone, including both measured and unmeasured channels. According to TNS Media Intelligence, Kraft spent $837 million in measured media during 2008 to Cadbury’s $138 million. While Cadbury may be best known in the U.S. for its Easter-time cream eggs, in actuality the company spends the majority of its budget on gum brands including Trident, Dentyne and Stride. Rounding out the company’s top five U.S. brands by ad spending are Hall’s cough drops and Green & Blacks premium chocolate bars.
Reblog this post [with Zemanta]

Brands: Power, Damage and Woolworths

Companies that lower the prices of their products during the recession may risk damaging long-term brand perceptions because suspicious consumers assume something is wrong with the product or brand if it’s being discounted, according to a study from The Futures Company.
depression advertising
Reblog this post [with Zemanta]