What does the Coke-Dr Pepper deal mean to Madison Avenue?
Well, initially, it means that Coca-Cola USA has added another agency, Young & Rubicam`s New York office, one of America`s best, to its roster.
What happens, if anything, to the Dr Pepper-Y&R relationship under new parent Coca-Cola Co. will be worth watching, particularly within the ranks of the Interpublic Group of Companies, parent of several agencies that now have all of the Coke business.
Coca-Cola, the top soft drink firm, Thursday said it reached an agreement to acquire Dr Pepper Co., the fourth biggest soft drink maker, for $470 million.
McCann-Erickson here, Interpublic`s flagship agency, got on board at Coke in 1955. SSC&B and Lowe Marschalk, both New York, are other Interpublic agencies with major pieces of business from Coke.
McCann`s creative for Coke hasn`t been that sharp, or at least as good as advertising for rival Pepsi-Cola, whose work is produced by Batten, Barton, Durstine & Osborn`s New York office. In fact, McCann last November lost the advertising responsibility of Coke Classic (the original Coke) to sister agency SSC&B, which also has the Diet Coke account. McCann now works on
”new” Coke, which was introduced last spring, Tab and Cherry Coke for its Atlanta-based client.
With the addition of Y&R, Coca-Cola now has another option for a creative resource in case it has problems getting the best advertising possible from one of its existing Interpublic agencies.
Y&R has performed exceptionally for Dr Pepper in Dallas, a client since 1969. Remember that it was Y&R that turned out the memorable ”Be a Pepper”
campaign for the soft-drink maker. Presently, Dr Pepper is being promoted by an ”out of the ordinary” pitch, the drink for noncola drinkers.
Coke already had a ”relationship” with Young & Rubicam Inc., whose Burson-Marsteller public relations subsidiary has done much PR work for Coca- Cola Co.
The Y&R ad agency also does advertising for Canada Dry, a property of R.J. Reynolds Industries. This relationship would not appear to be a conflict. — Rumors persist that J. Walter Thompson USA might go outside the agency to hire a new general manager for its Chicago office. As disclosed in this column four months ago, JWT`s Chicago boss, Joseph W. O`Donnell, is being promoted to JWT`s corporate headquarters in New York. There has been considerable speculation about his new position, but this column on Jan. 31 said O`Donnell would become chief executive officer of J. Walter Thompson Co., the worldwide parent of JWT USA. Former Chicagoan Burt Manning is chairman-CEO of JWT USA, also based in New York. Under a new JWT management lineup, to be announced the week of March 3, O`Donnell will be Manning`s boss. O`Donnell would report to Don Johnston, JWT Group chief executive officer. Separately, Manning is becoming a member of the board of directors of JWT Group.
— James B. Beam Distilling Co. in May will introduce for summer sale its Jim Beam bourbon and lemonade, a new flavor for its pre-mixed line called Zzzingers. Beam now markets three other flavors: Beam with cola, with lemonlime and with ginger ale. Based on sales this summer, it will be determined whether Beam and lemonade will be added for year-around
distribution. Bozell, Jacobs, Kenyon & Eckhardt/Chicago has advertising responsibility for Zzzingers.
— Sony Corp. of America, a firm headquartered in Park Ridge, N.J., consolidated its consumer products advertising with McCann-Erickson in New York. McCann is picking up advertising for Sony`s videocassettes,
videocassette recorders and 8 mm. video cameras, all formerly handled by Lowe Marschalk in New York, and the Sony`s unit`s business-to-busines s advertising previously with Ammirati & Puris, also New York. Total Sony billings at McCann are believed to be $30 million to $40 million. Marschalk and McCann are units of Interpublic.
On the move: Jan Fickinger Roy promoted to an account group supervisor at Golin/Harris Communications. . . . Marji Simon joined D.S. Howard & Associates as director of research. . . . John J. McHugh became director of corporate communications and corporate affairs at Hartmarx Corp.
Strictly Personal: Birthday greetings to Bill Alenson, Kathy Nowicki, Ed Smason, John Dellert and Donald P. Kelly.
Appointments: Cloverhill Bakery retained Ladd/Wells Advertising for communications services for its The Round Croissant, a frozen presliced sandwich croissant in limited distribution, including Chicago area
supermarkets. . . . Merrill Lynch Realty/Illinois appointed Kostman/Schmid & Associates for a radio advertising campaign. . . . Syntex Corp., a health-care company headquartered in Palo Alto, Calif., assigned advertising of a new calcium channel blocker product called Cardene to Abelson-Taylor Inc. here.
— Northwest Orient Airlines, St. Paul, has tentatively set the week of April 21 for presentations from Grey Advertising`s Minneapolis office and Dancer Fitzgerald Sample in New York for an introductory ad campaign for the combined Northwest-Republic airline. Pending government approval, Northwest is acquiring Republic Airlines, also Minneapolis, whose ad account now is handled by Dancer. Grey, Northwest`s principal agency in this country, also does advertising for the airline in a number of overseas markets.
On Tap: Debbie Schneider, a senior media buyer at Leo Burnett USA, is the speaker at Wednesday`s dinner of the Chicago chapter of American Women in Radio and Television (AWRT) at the Chicago Marriott. She`ll discuss all phases of broadcast buying, including ”buying creatively.” For information, contact Hilary Anderson at 727-2881.
