Wednesday, November 28, 2007

Study: Am Ex Ranks Highest in Satisfaction

AMERICAN EXPRESS RANKS HIGHEST AMONG credit cards in customer satisfaction, according to the J.D. Power and Associates 2007 Credit Card Satisfaction Study.

The inaugural study, released earlier this week, measures customer satisfaction with credit cards by examining five key factors. In order of importance, they are: benefits and features (34%); rewards (25%); billing and payment process (21%); fees and rates (16%); and problem resolution (4%).

American Express ranks highest among the 10 credit card issuers examined in the study with a score of 735 on a 1,000-point scale--performing particularly well in benefits and features, as well as problem resolution. Discover closely follows American Express with a score of 728, performing well in rewards, and billing and payment.

The company is clearly doing a good job of informing customers of the benefits they receive from being cardholders, says Jeff Taylor, senior director of the banking practice at J.D. Power and Associates, which is headquartered in Westlake Village, Calif. "Those customers identify an average of 6.3 benefits versus 3.5 for the overall industry average. It really differentiates them from the rest of the industry."

Only non-business account American Express customers were surveyed, Taylor says. The study focused on the primary card used by the participants, who said on average that they use three major credit cards regularly. The study is based on responses from 7,812 credit card users, and was fielded in June and July.

Credit card holders typically fall into one of two categories--those who always or usually pay the full balance on their cards each month (called transactors) and those who don't (referred to as revolvers). The study finds that each group selects their cards for different reasons. Nearly 65% of transactors indicate that rewards programs are most important, while only 29% of the revolvers say the same. Conversely, nearly 40% of revolvers indicate that lower interest rates and fees are most important, compared with only 8% of transactors.

The study also finds that rewards are key in credit card selection across the industry, and 80% of cardholders receive some type of reward with their credit card usage. The most popular rewards program is airline miles, with 40% of credit card holders receiving this incentive. However, customers who receive cash points (22%) applied to their card's balance or hotel rewards points (9%) express higher levels of overall satisfaction.

While rewards programs are important to many credit card customers, some are also attracted to credit cards that offer lower interest rates and no annual fees. The study finds that customers of Discover, WaMu and Wells Fargo frequently cite "no annual fees" as the reason they selected their cards. In addition, 84% of Wells Fargo cardholders also use Wells Fargo as their primary bank.

Here is how the cards ranked in customer satisfaction:

Based on a 1,000-point scale:

American Express735
Discover728
Industry average658
Citi Cards652
Chase651
US Bank646
WaMu638
Wells Fargo636
Capital One617
Bank of America607
HSBC571

Link to MediaPost Article

Mobile Social Networks Hit Mass Market


Digital Music and the Museum Model

Since the beginning of the digital music revolution, artists have taken the lead on innovative ways to deliver music directly to their fans.

Some, like Prince, have given away front-line product free. Others, like Tori Amos and Alanis Morissette, have offered up Web-only exclusives, also free.

Then there have been the famous holdouts: Metallica, which joined the fight to shut down Napster, and the Beatles, who, despite years of rumors to the contrary, are still conspicuously absent from iTunes and the rest of the legal Web.

Now comes Radiohead with potentially the most ground-breaking move of all: putting its new album, "In Rainbows," out there for fans to pay what they want.

This museum model of a "suggested donation" is entirely untested, and the industry will be watching closely to see how the experiment plays out.

That said, it is important to keep in mind that this is a niche play from a band that already has a huge, loyal audience, not to mention ownership of its own masters. Whether fans pay for this album will have little bearing on the decisions of rank-and-file artists who don't have Radiohead's clout.

Nor is this move likely to affect the labels' digital strategies. Even if the gambit is wildly successful, it will not change the fact that the industry is staring down the barrel of free-falling CD sales and insufficient digital volume to make up the slack.


Link to eMarketer Article

Still, it will be interesting to see what happens with "In Rainbows." Some of Radiohead's legions may actually pony up some serious dough, if nothing else to reward the band for not treating its fans as if they were criminals.

While most fans will probably help themselves to the album gratis, inevitably there will be a few crackpots who will pay obscene sums for it, maybe for the attention, or maybe just because they have money to burn and can't help themselves.

It will take only a few of those to give Radiohead a much bigger and more immediate payday than it would have ever gotten from Capitol, its former label.

Link to eMarketer Article

Nokia Maps

Nokia is buying digital mapmaker Navteq for $8 billion. (See WSJ coverage here). Navteq powers many in-car navigation services, but it is also one of the providers of mapping data used in Google Maps. Every mobile device should include mapping services. It’s a natural fit. But will Nokia try to charge extra for this or will every future Nokia phone come with free maps?

You can already get Navteq-powered Google Maps on many phones today like the iPhone or the Blackberry. It’s becoming a killer app for phones. Nokia could try to charge Google a whole lot more for the Navteq maps, but that might just drive Google deeper into the arms of its other map vendor, Tele Atlas.

The smart move for Nokia would be to negotiate with Google to share in any future map-based advertising revenues in return for distributing the mobile version of Google Maps with every new Nokia phone. (The cell phone carriers would have to be brought into the negotiations and given a cut as well, but it could be done). That way, consumers would get free maps and a reason to stick with Nokia. And Nokia won’t have to try to beat Google at its own game. Google has a much better chance of figuring out mobile advertising than Nokia, and its mapping software already has a huge following among both consumers and developers.


Link to TechCrunch Article

FriendFeed To Aggregate Social Network Data Into A Single Feed

There has been an absolute flood of tech news this morning. Lost somewhere in the shuffle is the private beta launch of a new startup, founded by four ex-Googlers, called FriendFeed. And while it may not get a lot of attention today, keep an eye on them. I have a feeling it will be a very popular service.

It’s a simple product that, like a ton of sleepy competitors (see Spokeo, ProfileLinker, MyLifeBrand and the more recent Fuser) is trying to help people organize user data stored across a myriad of social networks.

But unlike those competitors, FriendFeed’s simple approach may be the way to win. Instead of layering another social network on top of all of the ones you already belong to, FriendFeed is taking the year old Facebook News Feed idea, which may be the single most important feature contributing to the success of Facebook Platform, and opening it up to all social networks.

When you sign up for FriendFeed, you tell it the social networks you belong to, widely defined (Facebook, Last.fm, Flickr, Netflix, Digg, etc.). It tracks what you are doing on those networks, aggregates it all and provides you and your friends with a personalized feed of the data.

That feed can be accessed on the FriendFeed site, or embedded via a widget into another website.

FriendFeed will be a social network itself, of course. But it may also allow niche social networks, focusing on just one thing like movies or music, to thrive while simultaneously allowing users to have a single feed to aggregate all that they are up to. That means Facebook and the other giants don’t have to be everything to everyone (or at least that people don’t have to use it that way).

The company was founded by Bret Taylor, Jim Norris, Paul Buchheit and Sanjeev Singh. No word on funding, but the four were acting as entrepreneurs in residence at Benchmark Capital while creating the company.


Link to TechCrunch Article

Google Buys Social Mobile Provider Zingku

IN ANOTHER MOBILE MOVE, GOOGLE late last week acquired assets and technology from social mobile service provider Zingku. Financial terms of the deal were not disclosed. Zingku's services are free and, until now, have been offered through a private beta, which allows users to share cell phone photos with friends and family through texting, access online blog posts sent to their cell phones as text messages, and poll friends via text message.

Link to MediaPost Article

Wednesday, November 14, 2007

Dolby Purchases Coding Technologies, $250 Million Deal

Dolby Laboratories is now purchasing Coding Technologies AB for $250 million. The deal broadens the technology footprint for Dolby, already a leader in audio and surround sound cinema, broadcast, home audio systems. Coding Technologies, a Stockholm-based company, specializes in audio compression, and is best known for its aacPlus codec. Additionally, Coding Technologies has also helped to shape open standards like 3GPP, 3GPP2, MPEG, DVB, Digital Radio Mondiale, and DAB+.

The buyout gives Dolby better expertise in lower-bandwidth, emerging platforms. "By adding Coding Technologies' expertise and high-efficiency audio compression to our portfolio of technologies and services, we will be better positioned to support our customers as they continue to move into more bandwidth-constrained delivery methods such as mobile networks and the internet," said Bill Jasper, president and chief executive at Dolby Laboratories. The definitive agreement was first disclosed late last week.

Link to Digital Music News Article

Apple Faces Mixed iPhone Reception in Europe

Americans waited for hours - and even days - to get a first-run iPhone. But in Europe, the reception was less enthusiastic. The iPhone debuted on Friday in both the UK and Germany, though interest fell short of expectations. "The days preceding the launch had been filled with pages of coverage from posh papers and broadsheets alike," declared Andrew Orlowski of the UK-based Register. "But now it looks as if a tight-knit group of media and PR people got caught in a feedback loop."

British early-adopters aggregated most heavily around Apple stores, leaving spotty traffic for Carphone Warehouse and O2 outlets. "There was a security guard and a guy at the door handing out numbers for the queue," said buyer "Steve" in comments to mobile blog dialaphone.co.uk, describing an 02 location. "Both looked bored to tears." The iPhone was released in Britain at 6:02 pm GMT, a clever timing pushed by exclusive partner O2.

In Germany, the story was also mixed. Exclusive carrier T-Mobile offered an initial sales tally of 10,000, and like its British counterpart, consumer interest varied greatly store-to-store. Reuters reported a "throng" outside a Deutsche Telekom store in Cologne, but almost total indifference in Frankfurt.

Link to Digital Music News Article

Publicis' Levy Blasts Facebook Deal, Warns Ad Dollars Don't Support Online Investments

CALLING MICROSOFT'S $240 MILLION INVESTMENT in Facebook "insane," and asserting that that there is not enough advertising budgets to support the rapid expansion of online advertising services, Publicis Chairman-CEO Maurice Levy warned that the industry was approaching the kind of hyper inflated economics that led to the so-called dot-com crash in 2000-01. In an address at this weekend's Monaco Media Forum Levy cautioned that the rapid run-up in the valuation of ad-supported online services may turn out to be fool's gold. "Everyone is seeing advertising as the manna. Far too many people are building plans based on advertising and they may well be disappointed because there is not enough money for everyone," Levy asserted, according to a report in this morning's edition of the Financial Times. "It's exactly the same situation as we saw at the end of the 1990s, when everyone thought that because he had a website he'd get the valuation. Now everyone building a Web 2.0 operation believes he will receive the advertising."

Levy is a co-chair of the 2007 forum, which marks the second year of the international advertising summit organized by Prince Albert II of Monaco.

Levy was especially critical of the social networking craze and of the valuation generated by Microsoft's acquisition of 1% of Facebook, which he termed "unbalanced" relative to the potential advertising value of the social media marketplace.

He said the "bloom" was off the "Myspace rose," and that the exuberance driving investments in online social networks has yet to be proven by practical advertising models.


Link to MediaPost Article

Look Out, YouTube: Here Comes Bebo

CBS, MTV Set Up Channels on Social Net -- and Keep All the Resulting Ad Revenue

NEW YORK (AdAge.com) -- Bebo today unveiled its new vision for social networking -- and it looks a lot like an aggregated media destination. The venture, coined Open Media, is a platform of channels offering free content from major broadcasters as well as emerging media companies.
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Open Media was launched at simultaneous press conferences in New York and London. The extravagant London affair was attended by a couple hundred journalists and media watchers and featured live performances from jazz keyboard performer Jamie Cullum and up-and-coming singer-guitarist Remi Nicole.

Control the environment
Turner, CBS, MTV, BBC, Sky and a host of other broadcasters are creating individual channels using their own media players, which means they can retain control of the environment, the content and of their brands. Broadcasters will keep 100% of the revenues from advertising shown on their channels.

"This is about making Bebo more interesting and engaging and about the self-expression of our users," Joanna Shields, president of Bebo, said at the London launch.

The move makes Bebo more of an entertainment portal and differentiates it from rivals such as Facebook, which is viewed mainly as a communication forum. While MySpace is also more entertainment centric, it is known mostly for its strong music community. (Bebo has not yet signed up any record labels to Open Media, but Ms. Shields said bulking up the site's music offering is a matter of "when, not if.")

"The spectrum of social networking is evolving beyond utilities and applications," Ms. Shields said. "Bebo is a 'social media network' where culture and content come together and people use media and entertainment as a form of self-expression."

40 million users
Any media company can create a channel on Open Media through a "self-service" system and create the potential to expose free content to Bebo's 40 million users worldwide. If a company is not set up with its own online ad-sales or player technology, Bebo will step in with its own offering.

Bebo users can add video content to their own "personal video profile." Bebo claims this will create a turbo-driven word-of-mouth element that makes YouTube look like it's just scratching at the surface.

"This is not just another deal," said Casey Harwood, senior VP-digital media at Turner Europe. "Bebo is more of a community or a magazine and we are creating a new channel in its own right that will require its own channel manager."

Richard Cohen, commercial director of Premium TV, lauded the distributed nature of Bebo's entertainment offering. "The idea of trying to drive people to your own site is now defunct," he said. "You have to recognize where people are and want to be and capture their attention there, not dictate where they should be. Plus, this gives us the ability to monetize -- it's a natural extension to syndication."

Asked whether Bebo's audience would feel invaded by big brands and advertisers, Ms. Shields pointed out that you have to hit "explore" on the home page and then enter the "discovery" section to view Open Media content. "It's not forced on you; it's something you can discover at your own leisure," she said.

'We will tread carefully'
Said Turner's Mr. Harwood: "You can't antagonize the user because it's all about retention. We will have frequency capping and make sure that ads are relevant. We will tread carefully and won't change the environment."

One of the Open Media features Bebo touted is a content-discovery mechanism that matches users with people who share the same entertainment tastes. Users who choose a channel, program or band as a favorite can automatically receive online and mobile alerts when any new content is made available.

Bebo is the third-largest social networking site in the U.S. and the largest one in the U.K. It was founded in 2005 and claims its core of 16- to 24-year-olds spends 35.7 million collective hours on the site per month.

Link to AdAge Article

Lincoln Has New Celeb Endorser: Common

Rapper Replaces Magic Johnson as Brand Eyes Younger Consumers

DETROIT (AdAge.com) -- Goodbye, Magic Johnson. Hello Common.
Ford says Grammy winner Common appeals to consumers in their late 20s to mid 30s.
Ford says Grammy winner Common appeals to consumers in their late 20s to mid 30s.


Lincoln has ended its three-year relationship with NBA-star-turned entrepreneur and teamed with hip-hop artist Common to reach African Americans. In a deal announced at the Los Angeles Auto Show, Ford Motor Co. said the celeb will mainly plug the Lincoln Navigator luxury SUV in ads across a variety of media, at events and online.

'A little cooler'
Marc Perry, multicultural marketing manager for Lincoln, told Advertising Age the Grammy winner appeals to consumers in their late 20s to mid 30s. The star will help meet the marketer's plan to make the Navigator and the Lincoln brand overall "hipper and a little cooler," he said. While Magic Johnson worked well for Lincoln, the marketer wanted to "keep things contemporary," he said.

Lincoln is hoping Common will help Navigator overtake General Motors Corp.'s Cadillac Escalade as the most popular luxury SUV among African Americans, Mr. Perry said.

Seven percent of all Navigator buyers from last October to March 2007 were African American, according to data from consultant Strategic Vision. The Escalade had twice as many African-American buyers than any contenders in the SUV segment, said Alexander Edwards, president of Strategic Vision's auto practice.

He noted the median age of Escalade buyers during that period was 51, just one year older than the average age across the entire luxury-SUV category and significantly younger than the median age of Navigator buyers, 57.

Hefty price tag
Lincoln's new deal with Common isn't likely to resonate with its current buyers, but could help build long-term aspiration for the brand, Mr. Edwards said. "How many consumers in their 20s can afford a Navigator?" The suggested retail price for the 2008 model SUV is $47,755.

Common's one-year deal with Lincoln was developed by UniWorld Group, New York, the brand's African-American agency of record. Other than to say Common gets a free, new Navigator, Mr. Perry declined to discuss financial details of the deal.

Common's first national general-market ads break Nov. 25 during "Sunday Night Football" on NBC, but more targeted TV will begin after the New Year on cable and national radio, Mr. Perry said. Magazine ads will break in February titles.

Common will appear next spring at test-drive events, dubbed Lincoln Lounge, and will be integrated online at LincolnLounge.com. Lincoln is wrapping up details on online and offline promotions, licensing of his songs for TV and web ads and how the automaker will integrate into his 2008 concert tour.

Link to AdAge Article

Constellation Buys Fortune Brands' U.S. Wine Portfolio

Clos du Bois Among Brands Changing Hands in $885 Million Deal

NEW YORK (AdAge.com) -- The world's largest winemaker, Constellation Brands, is set to become even bigger following a $885 million deal announced today to purchase Fortune Brands' U.S. wine business, which includes Clos du Bois, Geyser Peak and Wild Horse.
Clos du Bois is one of the wine brands moving from Fortune to Constellation.
Clos du Bois is one of the wine brands moving from Fortune to Constellation.


As part of the transaction, which pending regulatory approval is expected to close by year's end, Deerfield, Ill.-based Fortune Brands will hand over roughly 2.6 million cases of wine, 1,500 acres of Napa, Sonoma and Carneros, Calif., vineyards and five California wineries.

Push for premium
Constellation's most recent acquisition is expected to help the Fairport, N.Y., wine giant gain a stronger foothold it the high-end segment of the wine market. "We are delighted about the prospect of adding these wineries and brands to our existing portfolio, which will enhance our growing position in the U.S. premium-wine business," Robert Sands, who this summer took over as president-CEO of Constellation, said in a statement.

Earlier this year Constellation -- which is home to more than 250 brands including Ravenswood and Robert Mondavi and also has some U.S. import rights for Corona beer -- expanded its spirits portfolio with its $380 million-plus purchase of Svedka vodka.

Unloading the wine business will allow the estimated $8 billion Fortune Brands to concentrate on its higher-return premium-spirits business, rather than the "lower margin" and "more capital intensive" wine business, Norm Wesley, chairman-CEO of Fortune Brands, noted in a separate statement.

Major spirit brands currently at Fortune include Jim Beam and Maker's Mark bourbons, Sauza tequila, Canadian Club whisky, Courvoisier cognac, DeKuyper cordials, Starbucks liqueurs and Laphroaig single-malt Scotch.

Following the deal, analysts speculated that Fortune's sale of its U.S. wine business would arm the company with cash to purchase Absolut vodka's parent, Vin & Sprit of Sweden.

Link to AdAge Article

Ad Age: Marketing 50 - Fifty Sharp Ideas and the Visionaries Who Saw Them Through

ACTIVIA
ANDREAS OSTERMAYR
Photo: Tony Pettinato
Tummy problems are a hot topic among women, and Dannon Co. marketed a solution that could help: probiotic yogurt, backed by solid medical research.

Abandoning yogurt's usual pastel packaging, Activia was launched last year with bold logo colors in a hunter-green package, supported by $30 million on spot, network and cable TV via Young & Rubicam, New York. There was no print and little online advertising.

"We spent a long time developing a product that would sell itself," says Andreas Ostermayr, Dannon's chief marketing officer. "TV was the fastest way to get the word out, and after that it was word-of-mouth."

Women were told Activia really works to help regulate the digestive system, and during the product's first eight weeks, there were more than 70,000 downloads of the study on its website explaining how.

Activia sales soared 213.1% in dollar sales in its first year, and the brand contributed to 60% of the growth in the yogurt category this year, according to Dairy Management Inc.
-- Kate Fitzgerald

UMPQUA
LANI HAYWARD
Umpqua Bank, with 147 branches in Washington, Oregon and northern California, competes against giants Wells Fargo, Bank of America and Pacific Northwest rival Washington Mutual with a tiny $5 million ad budget.

Yet in each of the past three years, it's taken a sizable chunk of its budget and put it toward experimental projects aimed at getting "our brand spirit out on the street -- you can't do that with a print ad," says Lani Hayward, 40, exec VP-creative strategies. To break into the bank-saturated California market, two Umpqua trucks handed out free ice cream in summer and hot chocolate in winter to prospective customers. "It breaks through," Ms. Hayward says. "It's not such blatant advertising. It takes you by surprise."

It also gave really small loans of $10 and start-up kits to young lemonade-stand entrepreneurs as part of a "Lemonaire" program that generated buzz. Umpqua's sweet approach is paying off: In Oregon, the FDIC moved the bank from sixth to fifth in its rankings. In California, the Lemonaire promotion picked up 1,500 new small to medium-size business customers.
-- Alice Z. Cuneo

JENNY CRAIG
SCOTT PARKER
The only problem with Kirstie Alley hitting her weight-loss goal on direct-response TV commercials for Jenny Craig last year was the end of her dramatic arc from a fat actress to a skinnier woman.

"Our new-client leads began to flatten," says VP-Marketing Scott Parker, 51. Enter Valerie Bertinelli, TV personality with a girl-next-door image and 30 pounds to lose. The pairing was a huge hit, resulting in an immediate 30% boost in calls to Jenny Craig's toll-free number. Mr. Parker says he could tell within a day it was a hit. Response to the TV campaign was fed by content on Valerie's video blog on the Jenny Craig website. "Valerie was a tiny bit offended when she heard why we were calling," Mr. Parker says, "but it's worked out fabulously. She's thin, and now she's writing a book."
-- Kate Fitzgerald

SOLEIL
SUSAN LANZAROTTO
Facing off are giant Gillette, backed by even bigger Procter & Gamble Co., and Schick, backed by feisty Energizer Holdings. What chance does tiny Bic have?

A pretty good one: Amid some of the fiercest competition ever in the U.S. razor market, Bic this year expanded from its foothold in disposables into the bigger razor-systems market with its Soleil brand. Bic has added $9 million in system sales while gaining 0.7 share points in disposables in the 52 weeks ended Sept. 9, according to Information Resources Inc. Ads from Resource Marketing, Westport, Conn., and Hemisphere Droit, Clichy, France, focus on the brand's fun character.

"It's been incremental to the Soleil franchise," says Susan Lanzarotto, 35, director of shaver marketing at Bic Consumer Products USA. It's added sales from handles and cartridges but didn't lose any business from disposables as a result."
-- Jack Neff

YELP
JEREMY STOPPELMAN
If you live in San Francisco, odds are you've Yelped.

The popular consumer-review site is a household name in San Francisco and is quickly spreading to cities such as New York, Boston, Chicago and Los Angeles; its unique visitors have grown 133% to 1.65 million a month, according to ComScore. For Jeremy Stoppelman, the 30-year-old founder and CEO of the site, the success is a result of trying not to do too much too soon. That kind of restraint is rare in a booming internet start-up industry.

"We didn't want to be mediocre in every city," he says. "We wanted to be awesome in San Francisco." The site spent a year concentrating on marketing itself in its hometown. And by going deep in one geographic area, it convinced people in the Bay Area of its value. Blog chatter about Yelp helped seed interest in other cities, and Yelp began its expansion. In each city, it employs a community manager, whose job is to manage street marketing, offline meet-ups and events, and a weekly newsletter.
-- Abbey Klaassen

CR-V
TOM PEYTON
Tom Peyton, senior manager-national advertising of American Honda Motor Co.'s volume division, says his challenge with the redone 2007 Honda CR-V was telling people it had a slick new look inside and out.

RPA, Santa Monica, Calif., created a "Something New to Crave" theme for the launch last fall that started with TV but moved into a photo-sharing blitz. Disneyland visitors could have their photos taken with the CR-V and retrieve the photos online. RPA bought boards at 86 malls in 10 cities.

Mr. Peyton, 52, dialed up online spending, with a broad buy of search-marketing terms that drove traffic to crave.honda.com. There, visitors could submit photos with descriptions of what they craved.

Honda's CR-V is sitting pretty. The latest generation of the small SUV was the best-selling SUV of any size in 2007's first nine months, tallying sales of 167,223 units. Mr. Peyton is also pleased with the new CR-V's demographics. "Generally that size SUV does not appeal to men, but the CR-V hasn't been labeled a chick car."
-- Jean Halliday

JOHNNIE WALKER BLUE
BILL TOPF
Photo: Tony Pettinato
In an economy where consumers seem never to tire of trading up for more luxurious brands, a product like Johnnie Walker Blue Label basically sells itself.

Sales of the long-aged, hyperpremium blended whiskey, which comes in a serial-numbered bottle that lies in a silk-lined box, should anyone miss the point, grew more than 100% between 2001 and 2006, to slightly more than 20,000 cases, according to the alcohol trade magazine Impact. So last year, parent Diageo North America gave it a further boost -- the brand's first full-fledged branding campaign, which consisted mostly of stylish print ads in upscale magazines via Bartle Bogle Hegarty, New York.

The idea, says VP Bill Topf, isn't merely to sell more bottles of Blue Label, although it has. Exposure for Blue Label "positively impacts the entire Johnnie Walker trademark," including the much larger -- and cheaper -- Black Label and Red Label blends. How's that working out? Johnnie Walker's U.S. sales are up 7% this year vs. a 2% decline for Scotch in general.
-- Jeremy Mullman

ENERGIZER
JEFF ZIMINSKI
The Energizer bunny faced a challenge back in 2005: Rival Gillette's Duracell had just been snapped up by giant Procter & Gamble Co. But, like the slogan, the bunny just kept going.

Energizer has picked up one and a half share points in alkaline batteries and two points in all other batteries since 2005, according to Information Resources Inc. Products such as portable cellphone and iPod chargers have put the bunny in new markets. And its stock has more than doubled since 2005.

Jeff Ziminski, 44, global chief marketing officer for Energizer, is leading the charge. Mr. Ziminski, who's worked on the brand since 1998, credits the "Keep Going" campaign from TBWA/Chiat/Day for paving the way. "Consumers clearly identify the bunny as the symbol of perseverance and long-lasting quality," he says.
-- Jack Neff

CREST PRO-HEALTH
DIANE DIETZ
Crest had been losing share for eight years when Diane Dietz became brand manager of the Procter & Gamble Co. line in 1998. Nine years later, Crest arguably (and Colgate-Palmolive Co. will debate it) has become the leading U.S. toothpaste brand again, thanks to the 2006 launch of Crest Pro-Health toothpaste and the work of Ms. Dietz, 40, now VP-North American oral care.

Pro-Health has reached $100 million in sales, adding about two share points for Crest, according to Information Resources Inc. Ads from Saatchi & Saatchi, New York, focused on Pro-Health as the only toothpaste that addresses the seven oral-care issues that concern dentists most. "We knew this launch could not be good -- it had to be great," Ms. Dietz says, noting that P&G delayed Pro-Health for more than a year to get the product, packaging and ads right.
-- Jack Neff

RAY-BAN
FABIO D'ANGELANTONIO
Photo: Tony Pettinato
Not long ago, if you were wearing Ray-Ban Wayfarers, people probably thought you were channeling a certain tighty-whitey-wearing, Bob Seger-singing actor.

No more. These days, wearing a pair of Ray-Bans comes entirely without Tom Cruise associations, a cultural shift that's allowing millions to partake in a classic American brand experience in an irony-free manner. For that you can thank Fabio d'Angelantonio, 38. Since Luxottica bought the brand from Bausch & Lomb in 1999 and shaped up the design, it's no longer in low-rent retail environments such as gas stations.

The past two years have seen a major effort under a "Forever Ray-Ban" platform. Mr. d'Angelantonio and Erika Ferszt, 33, group advertising manager, have been seeding shades with celebrities such as Kirsten Dunst, doing PR events and developing new ads. Its biggest paid-media push in recent memory was Cutwater's "Never hide" campaign, the most awesome part of which was a viral video called "Sunglass Catch" that's gotten more than 3 million YouTube views. For the past four years, Ray-Ban experienced year-over-year double-digit sales increases and doubled its size between 2000 and 2006.


ALLI
SUSAN EDWARDS
Photo: Tony Pettinato
Forget for a moment that, uh, unpleasant side effect known as "anal leakage" associated with taking the over-the-counter weight-control medication Alli.

Then again, never mind. VP-Marketing Services Susan Edwards and her staff at GlaxoSmithKline have done an admirable job of using the accident in some portions of Alli's marketing (urging consumers to bring an extra pair of pants to work, for instance). In other spots, well, Alli is doing fine on its own.

Analysts predicted sales would be between $200 million and $500 million for the year when Alli launched June 14. In its first five weeks on store shelves, GSK sold $155 million worth of Alli. Need a better indicator of its success? In the four months Alli has been on the market, shares of diet-food company NutriSystem have slid from $69 to $28 as of Nov. 2.
-- Rich Thomaselli

7-Eleven
RITA BARGERHUFF
It was a big risk for 7-Eleven Senior Marketing Director Rita Bargerhuff to change the names of some of the chain's convenience stores to Kwik-E-Mart for a month. But the move paid off as the chain reaped the equivalent of more than $9 million in media hits for its over-the-top "Simpsons Movie" tie-in, deeply resonating with its 18-to-34 male customers.

The "Simpsons" promotion in July turned 11 stores into Kwik-E-Marts, the name of the fictitious stores in the film and TV show, and filled the entire national chain with "Simpsons"-themed products such as Buzz Cola and Krusty O's. It was all part of a slew of integrated efforts aimed at young men this year.

"We received hundreds of calls from customers telling us how much they enjoyed the 'Simpsons' experience in our stores and how, for some, it reconnected them with our brand," Ms. Bargerhuff says. "Plus, the 2 million Sprinklicious doughnuts that were sold and enjoyed helped generate awareness of our bakery and sandwich products."

One exec says visits to 7-eleven.com and slurpee.com have tripled over the past year.
-- Stephanie Thompson

MUCINEX
M'LOU ARNETT
First it was Mr. Mucus, making himself comfortable in your lungs. Then he tied the knot. Then he and Mrs. Mucus had their first little phlegm ball, Junior Mucus. Senior VP-Marketing M'lou Arnett says there was "an art to making sure what was done was done in a tasteful way."

It still might sound yucky, but Adams Respiratory is riding the nasty little computer-animated critters all the way to the bank. Sales of the adult Mucinex franchise grew 7% in the first half of 2007, to $254.7 million, led by growth in Mucinex DM, which generated sales of $94.6 million, an increase of 60% over the first half of 2006.

Sales of the children's version of the product are also contributing, helped by Ms. Arnett's partnership with DC Comics to create a comic book for "The Adventures of Mr. Mucus and Family."
-- Rich Thomaselli

FACEBOOK
MARK ZUCKERBERG
Facebook, like its neighbor Google just a few miles down Highway 101, has for the most part marketed itself. Working outside the marketing box, Facebook has grown to 45 million active users who spend an average of 22 minutes on the site.

Facebook's growth really started to accelerate in May, when 23-year-old CEO Mark Zuckerberg said he would allow third-party developers to create applications for the site.

Mr. Zuckerberg saw the importance of providing valuable communication and entertainment services to Facebook's users. He gave developers the incentive to make money off their creations, and innovation -- and services for Facebook users -- exploded, making the social network a much more valuable place.

Today, not only is Facebook a booming consumer service, it is the center of a major development ecosystem. Microsoft acquired a 1.6% stake in the site in October for a reported $240 million.
-- Abbey Klaassen

'HALO 3'
JEFF BELL
Even though "Halo 3" just made its debut in September, its first-day, chart-topping $170 million and first-week tally of $300 million assure its No. 1 status through the holiday season. While the third and final installment was expected to be a big hit, the marketing coordination sealed the deal.

Jeff Bell, 39, corporate VP-global marketing, Microsoft Interactive Entertainment Business, and his team at Microsoft Corp. built buzz online with free beta tests for players beginning in the spring, as well as live-action videos and documentaries about its making.

One partnership created a "Halo 3" Mountain Dew Game Fuel soda; there were similar deals with Burger King, Pontiac, 7-Eleven, Nascar, Samsung, GameStop and Comcast. McCann-Erickson, San Francisco, and its TAG arm, did their part with a haunting one-time TV ad followed by a "Believe" launch campaign that went beyond traditional video-game advertising in style and concept. Both earned kudos from critics and consumers.
-- Beth Snyder Bulik

COKE ZERO
CAREN PASQUALE SECKLER
Photo: Tony Pettinato
Coke Zero was born when research showed younger men wanted the taste of Coke without the calories but didn't like the word "diet."

A 2005 launch in a crowded cola category fizzled. But then viral marketing, including videos posted on YouTube of a faux lawsuit alleging "taste infringement," got attention for low-calorie Coke Zero. Sampling plus aggressive network and cable TV, radio, and online ads via Crispin Porter & Bogusky, Miami, invited guys to join the movement. Coke Zero is a regular part of ESPN fantasy-sports podcasts.

"We regrouped and put a laser focus to Coke Zero, giving it black packaging [vs. red for Coke and silver for Diet Coke] to differentiate it, and younger consumers understood this was their brand, created for them," says Caren Pasquale Seckler, Coke's group director for low-calorie sodas.

It worked. One of only six new soft drinks that surpassed and maintained a 1% share, Coke Zero is here to stay.
-- Kate Fitzgerald

JC PENNEY
MIKE BOYLSON
Chief Marketing Officer Mike Boylson has a never-ending array of new surprises to snare shoppers these days. Following the introductions of Sephora mini-stores, a revamped lingerie line, two proprietary Liz Claiborne lines and exclusive Chip & Pepper denim, consumers are responding.

Second-quarter operating income was $329 million, a 17.5% increase from last year's $280 million; total sales increased 3.6%, and comparable-store sales increased 1.9 %. Next up, Mr. Boylson says, is the launch of Ralph Lauren's American Living. "If we can get them in store, they'll be surprised," he says. "It's not the same Penney's store you'd have seen even three years ago."

When it was rethinking its brand image in mid-2006, Mr. Boylson, 52, says all of his competitors were trying to "out-Target Target." But it was a much-applauded campaign from new agency Saatchi & Saatchi that got the revamp noticed. Thank you, Saatchi CEO Kevin Roberts, for the primer in Lovemarks and retail.
-- Emily Bryson York

WEBKINZ
HOWARD GANZ
For 57 years, Ganz had been a leader in the stuffed-plush-toy industry. But recently the founder's grandson Howard Ganz, 52, noticed that kids were spending more and more time online and wondered how his company could better appeal to the kids who also still loved their stuffed animals.

The answer: Webkinz. The stuffed animals with coded tags that allow entry to the Webkinz virtual world swept through playgrounds up and down the East Coast.

"[We created a] concept that offered all of the best play factors of great toys with the internet experience," says Mr. Ganz, president of the company. By the end of the last holiday season, Webkinz had become a hit, reportedly selling more than 2 million and registering more than 1 million online. Ganz retailers advertised Webkinz parties and events, and even the simple sign "Webkinz sold here" became a marketing draw as the brand expanded into trading cards, charms, mouse pads—even lip gloss and body spray.
-- Beth Snyder Bulik

SWEETLEAF STEVIA
MICHELE BENE
Photo: Tony Pettinato
Although Wisdom Natural Brands is not allowed by the Food and Drug Administration to call its SweetLeaf Stevia a sweetener, its new spokeswoman Mariel Hemingway is.

"We're not allowed to say the 's' word, so we need others to spread the word," says Michele Bene, marketing and communications director. And they have. As a result of raves by Ms. Hemingway and other celebs who have sampled it at awards shows and events, including in Starbucks coffee at this year's Sundance Film Festival, the herbal sweetener raised its consumer awareness more than 80% vs. last year. Ms. Bene, 37, says the company expects growth of at least 30% in '07. Stevia grew 14% to $1.3 million (excluding Wal-Mart) for the 52 weeks ended June 17, according to Information Resources Inc.
-- Stephanie Thompson

CLARITIN-D
BRENT SAUNDERS
A 2006 federal law moved cold medicines that contain pseudophedrine into locked pharmacy cabinets. In response, major pharmaceutical marketers offered nonprescription cold pills with alternative ingredient phenylephrine in order to stay on store shelves. But Claritin-D stayed true to its roots, and Brent Saunders, senior VP-president of consumer health care at Schering-Plough Corp., educated consumers with a marketing campaign to promote the company's decision not to change the original formula of the medication. Using agency Euro RSCG Worldwide, S-P spent $52 million in measured media on Claritin-D in 2006; through the first half of 2007, it had already spent $47 million. Claritin-D now sells more units than when it was easier to access. Sales of Claritin and Claritin-D were up 9.7%, reaching $278.4 million for the 52 weeks ended July 15, according to Information Resources Inc.


'GUITAR HERO II'
STACEY HIRATA
Photo: Tony Pettinato
While "Guitar Hero" fans have been shredding to the rock-star fantasy video game since late 2005, it took the introduction of "Guitar Hero II" for PlayStation 2 in late 2006 and for Microsoft's Xbox 360 in 2007 with downloadable tracks to make the game a cultural phenomenon. Celebrity guitarists confessed their addictions and played at PR events for the game.

"Guitar Hero" parties became common for both a younger set among friends and couples and an older audience reliving the rock anthems of its youth. Under the direction of Stacey Hirata, 38, VP-marketing at publisher RedOctane, the game found popularity as a marketing gimmick at bars and restaurants to draw crowds. The Xbox 360 version got additional marketing power with a campaign from Xbox agency McCann Erickson, San Francisco, and its TAG arm.

Ms. Hirata says the aggressive marketing push focused on several fronts including promotions, public relations, partnerships and retail. "It's all about where there's music, there's 'Guitar Hero,'" she says. More than 3 million games have been sold, along with another 650,000 downloads of additional music packs.
-- Beth Snyder Bulik

HEINEKEN PREMIUM LIGHT
ANDY GLASER
There's never been an import-beer launch quite like the one Heineken Premium Light pulled off last year.

Andy Glaser, Heineken brand director, and his team launched Premium Light with a media budget ($50 million) that would make Anheuser-Busch blush and slick image advertising from Berlin Cameron United, New York, that wouldn't be the least bit out of place on a boutique superpremium spirits brand. The ads, mostly TV spots, presented Heineken Premium Light as a diva in a bottle or can, backed by the beats of the Pussycat Dolls. Unlike most import-advertising efforts, there was nary a reference to its foreign roots. Heineken chose instead to announce the brand's arrival in the mainstream with brashness -- and it worked. As a result, the start-up cracked the top 10 in import sales and is up another 30% in year two, suggesting it's yet to peak. "The fact is it revived the entire franchise," investor Thomas Russo said earlier this summer.
-- Jeremy Mullman

HANKY PANKY
GALE EPSTEIN AND LIDA ORZECK
The signature Hanky Panky thong, model No. 4811, has had a cult following since its introduction in 1986 among a loyal group of celebrities and others seeking comfort-with-no-panty-lines underwear at $15 a pop. But when the brand made The Wall Street Journal in 2004, President-Creative Director Gale Epstein says, "it launched into another stratosphere."

Since then, annual sales of the 4811 and Hanky Panky's other intimate-apparel products have climbed from $10 million to what is expected to be almost $50 million this year. With the help of PR agency Gale Group, Hanky Panky has worked to get its thongs on the likes of Ashlee Simpson and Cameron Diaz through placement in gift lounges at awards shows and on sets and, of course, to get those wearings talked about in magazines and on TV. CEO Lida Orzeck's appearance on CNBC prompted website hits to quadruple. The brand has featured a '40s Glam Girl in its marketing materials, and that theme has inspired a raft of in-store product-preview parties. A soiree in Manhattan's 59th Street Bloomingdale's to introduce the new Hanky Panky bra helped drive sales in that store up 180%, Ms. Epstein says.
-- Stephanie Thompson

LIFE IS GOOD
BERT JACOBS
The two brothers sold T-shirts at college dorms for five years, continually refining an idea for a breakthrough logo but mainly just having fun.

"Every time we came home, we'd put our best-selling designs on a wall and invite our friends over to offer their opinions," says Bert Jacobs, 42, chief executive optimist of the Life Is Good brand (his brother and co-founder John is 39). After four dozen T-shirts with the phrase "Life is good" sold out in minutes, they knew they were onto something.

"It was more of an attitude than a brilliant business plan," Mr. Jacobs says of the company's rise to $100 million in annual sales of apparel, accessories, sports and home-decor items, all featuring the simple, iconic logo. "We tapped into something really simple: optimism, feeling good. Everyone who wore the shirt felt like they were joining a club," Mr. Jacobs says.

And while Life Is Good doesn't do traditional marketing, it's recently begun hosting charitable festivals, which it views as a social mission.
-- Kate Fitzgerald

CARIBOU COFFEE BARS
MARTIN ABRAMS
Developing a new food brand is a challenge, but creating one that will build incremental business inside a crowded, nearly $1 billion category is especially tough.

Martin Abrams, 38, marketing manager, Wholesome Adult Business Unit, and his General Mills team did it when they linked to the adventure ambience of regional coffee retailer Caribou Coffee for a new line of Caribou Coffee bars.

Launched in mid-2006, the line of chocolate-dipped bars was readily accepted by Wal-Mart as well as grocery and convenience-store chains as a new "healthy indulgence" addition to the category. Caribou Coffee bar sales in food, mass and drug retailers excluding Wal-Mart grew to $25 million for the year ended June 17, according to Information Resources Inc., and that doesn't even include a new distribution channel for General Mills: the 480 Caribou stores in 18 states and D.C. More important than total sales, though, is that the line is "80%-plus incremental to existing General Mills bars," including Nature Valley, Mr. Abrams says. National print ads from Campbell Mithun, Minneapolis, as well as sampling in grocery stores and in Caribou stores solidified the line's positioning. Since then, Caribou has inked an ice-cream deal with Kemp's and an iced coffee pact with Coca-Cola Co.
-- Stephanie Thompson

TRESEMMÉ
BRENT SHAKESHAFT
Photo: Tony Pettinato
Tresemmé has been a surprise share winner amid the launch of Unilever's Sunsilk, restages of Procter & Gamble Co.'s Herbal Essences and Aussie, and the salon-to-mass conversion of its own Alberto-Culver Co. sibling Nexxus, even though all have considerably larger budgets.

Tresemmé, positioned as "professional hair-care products at an affordable price," has gained share in all its segments, particularly styling, where it gained more than one and a half share points in the 52 weeks ended July 15, according to Information Resources Inc. That's pushed Tresemmé to No. 5 in U.S. hair care and No. 2 in styling aids.

Brent Shakeshaft, 44, VP-U.S. hair care has led efforts including an integration in Bravo's "Project Runway." He says the deal "has helped us make the brand more relevant."
-- Jack Neff

MOOSEJAW
ROBERT WOLFE
Apparently what works to reach college students today is to not make any sense.

Nonsensical marketing -- what has been dubbed "Moosejaw Madness" -- has helped build outdoor-equipment and -apparel retailer Moosejaw Mountaineering's sales 60% annually over the past five years. "It is that idiocy in marketing that resonates with our consumers," says Moosejaw founder Robert Wolfe, 37.

Moosejaw entreats consumers to "Love the Madness" through a blog, Daily Remark, on moosejaw.com and random text messages sent often to customers who've signed up to receive e-mail marketing.

Quirky questions such as "What was Vince Vaughn's character in 'Anchorman'?" and "Does Moosejaw's founder bear a resemblance to Ben Stiller?" along with games such as rock paper scissors have response rates from a minimum of 20% of the list to as high as 70%, "a ridiculous number," Mr. Wolfe says.
-- Stephanie Thompson

SMART BALANCE
GREG VENNER
Here's a company that may actually want to thank the Food and Drug Administration. Smart Balance, known for its buttery spread and healthy blend of oils, was introduced in mid-2005, just months before the FDA mandated that trans-fat content be labeled on packaged food.

"Not only has Smart Balance always been trans-fat-free, but it is naturally trans-fat-free, unlike brands that achieve this chemically," says Greg Venner, its 50-year-old chief consumer officer.

Sales have gone gangbusters. According to Information Resources Inc. (which does not include Wal-Mart sales), the buttery spread is now the No. 3 margarine in grocery stores. For the calendar year through the week ended Sept. 9, Smart Balance had $59 million in sales, up 18.7% from a year ago. Meanwhile, overall sales for the margarine/buttery spreads category were down 1.4%.
-- Emily Bryson York

HP COMPUTERS
GARY ELLIOTT
Sure, we know celebrity sells, but the execution of that celebrity sale is much more difficult than just having a famous face in an ad. Hewlett-Packard's celebrity spots, in fact, didn't even bother with the face. And that's only part of what made them so effective.

Dreamed up by Gary Elliott, 56, and his Personal Systems Group marketing team headed by former Apple marketers Satjiv Chahil and David Roman, the simple notion of the "Hands" spots is to spotlight how personal HP computers are for these stars.

Beginning with rapper Shawn "Jay-Z" Carter in June 2006, the Goodby, Silverstein & Partners-created ads became popular pass-around and YouTube videos and attracted more celebrities. They included snowboarder Shaun White, entrepreneur Mark Cuban, designer Vera Wang and tennis star Serena Williams. HP, which has passed Dell in U.S. computer sales, posted companywide sales of $25.4 billion for the quarter ended July 31, up 17.1%.
-- Beth Snyder Bulik

WRANGLER UNLIMITED
JAY KUHNIE
Jeep's Wrangler Unlimited, the first four-door version of the SUV, is Chrysler's hottest model since the Chrysler 300 sedan.

Jay Kuhnie, 57, director-communications at Chrysler, calls the Unlimited launch Jeep's most integrated ever, citing gaming, wall-scapes and branded integration in TLC's "Miami Ink." (TNS Media Intelligence says Jeep spent $68 million on measured media for Wrangler from September 2006 through June 2007.)

Jeep said U.S. sales of four-door and two-door Wranglers had jumped 71% through September to 92,549 vehicles vs. a year ago.

Because owners routinely haul stuff, BBDO's ad theme showed an aerial view of the SUV carrying gear on the roof; the visually striking effect made the four-door Unlimited appear like a colorful beetle -- until it started driving through rugged outdoor landscapes. "It's clear there was a market for the vehicle," Mr. Kuhnie says.
-- Jean Halliday


SIGG
ROBERT RHEAUME
Photo: Tony Pettinato
It's hard to get cool, but it's harder to stay cool. Just ask Robert Rheaume. The Sigg USA VP-sales and marketing, along with Steve Wasik, president-general manager, had been peddling a $20 reusable metal bottle, but consumers didn't get it.

This fall, after a summer packed with headlines about the millions of tons of plastic water bottles flowing into city landfills, those same buyers are calling back wanting bottles -- yesterday.

In addition to brisk online sales, the number of outlets selling the bottles has grown to more than 1,300 from 400 in two years. While privately held Sigg declines to give more specific figures, it says sales are up 250% from last year. "Someone told me recently that it's so cool the product isn't everywhere," says Mr. Rheaume, 40, adding that most of the company's sales spike was built on blogs and working with outdoor enthusiasts. He started posting comments on the blogs, and now bloggers are sharing news about Sigg bottles. "They do it for us," he says.

A contest for a new design drew 30,000 votes, Mr. Wasik says, adding that the design will be for sale at Patagonia stores in time for the holidays.
-- Emily Bryson York

CPK PIZZA
SARAH GROVER
It turns out that frozen pizza, if you sell enough, can work as advertising.

California Pizza Kitchen, resurgent darling of the casual-dining industry, has been using sales of its frozen pizzas to bootstrap its branding efforts. A pact with Kraft Foods began to pay dividends in 2004 when the pizza became popular because of a clause in the contract requiring Kraft to spend 5% of sales marketing the pizza, and therefore the CPK brand. While the $100 million in 2006 sales only scored the dining chain about $4 million in licensing fees, Kraft spent $5 million in advertising, effectively tripling the pizza chain's $2.5 million ad budget. CPK frozen-pizza sales (excluding Wal-Mart) for the calendar year ended Oct. 7 were $107.7 million, up 17.3%, according to Information Resources Inc. "Now Kraft sells more pizzas than" the restaurants, says Sarah Grover, senior VP-marketing and PR, 43. "It gives people a way to get to know us if they don't have a restaurant in their town."
-- Emily Bryson York

CHIPOTLE
JIM ADAMS
Whether it's the cilantro-laced rice, the tasty tortillas or the tangy guacamole, most Chipotle devotees will admit to out-and-out addictions. Chief Marketing Officer Jim Adams, 47, is creating brand loyalty via controlled growth and a focus on core menu items and quality.

"The further we go down the road, the more I feel showing restraint is important to respect for your customer, not just bombarding them with everything," Mr. Adams says. "Respect their intelligence." That means not doing the things consumers expect of a national chain. More to Chipotle's liking is turning its ubiquitous cups into a platform to promote its sustainablility mission. Mr. Adams says the burrito bastion has doubled its size in the past seven years, and in the first half of this year, store sales were up 10%, with revenue up 30% to $510 million.
-- Emily Bryson York

STRIDE
SONIA HOUNSELL
After three years in the laboratory, Cadbury Adams knew it had a hit on its hands with its new soft, sugarless gum that boasted long-lasting flavor. What better experts to call upon to market it than the target: 18- to 25-year-old adults?

"This audience wants to be taken seriously, but they also want to have fun. That's what has driven our marketing," says Sonia Hounsell, 36, the brand's marketing director.

As of the week ended Sept. 9, year-to-date sales of Stride, excluding Wal-Mart, were $40.6 million, up 396% from the same period a year ago, according to Information Resources Inc. While it ranked No. 7 in the sugarless-gum segment, two gum brands coming ahead of it had double-digit percentage drops in dollar sales. Online ads, product placement and celebrities have helped push Stride's awareness. Playful event promotions touting Stride's longevity have included staring contests, while irreverent TV spots via JWT, New York, show how the gum leaves Stride factory workers idle. "Our fans like to create their own commercials now on YouTube. They feel it's their very own brand," she says.
-- Kate Fitzgerald

SPECIAL DARK
JAY COOPER
Photo: Tony Pettinato
Dark chocolate is good for you. Few developments have ever been greeted with so much enthusiasm.

And as health nuts crossed dark chocolate off the embargo list, Hershey began marketing the tasty treat as an upscale indulgence, with Special Dark bite-size candies selling $9 million through early October, a 72.5% gain over the same period in 2006, according to Information Resources Inc. IRI showed the larger Hershey's Special Dark candy selling $35.1 million during the same period, up 24.2% from 2006. "We're seeing incremental growth in the dark-chocolate category as consumers become more aware of the benefits of the antioxidants ... in dark chocolate," says Jay Cooper, VP-chocolate. Dark chocolate's market penetration has more than quadrupled in the past four years, according to Hershey.
-- Emily Bryson York

SPARKS
RANDY RANSOM
Photo: Tony Pettinato
When Miller paid $215 million to acquire Sparks in 2006, it bought itself the dominant player in the caffeinated-alcoholic-beverage segment. But it also bought itself a community of Sparks drinkers who would be horrified to drink anything marketed in the same mass-media outpouring as Miller Lite.

So what's a marketer to do? Change its stripes.

Miller has leaned heavily on brand ambassadors (known as "Sparkitechts"), ads in counterculture magazines and unorthodox sponsorships such as a relationship with national air-guitar champion William Ocean. The upstart brand grew sales 40% in 2006 and is reportedly on pace to sell 4 million cases this year. "We've tried hard not to Millerize it," says Randy Ransom, the 45-year-old chief marketing officer. "We've been doing mass marketing a long time, and this taught us a different way."
-- Jeremy Mullman

HAVAIANAS
GLEN LAGERSTROM
There certainly was buzz about the comfy, rubber Havaianas flip-flops before this year's advertising blitz, especially in New York, Los Angeles and Florida. But before this year, Glen Lagerstrom, exec VP-sales and marketing at Alpargatas U.S., termed the brand "below the radar." Now it's a national brand.

He made it one by starting with a guerrilla campaign in which BBDO, New York, placed giant flip-flop straps on top of colorful wall murals in Manhattan. Then came a magazine blitz from Almap BBDO, São Paulo, Brazil, and an online-animated-film effort from BBDO, New York, at feetwantout.com.

Online sales have grown 30% since May, Mr. Lagerstrom says. Style West continues to push the brand via celebrity and PR placement, scoring Havaianas spots on fashion-magazine hot lists and on Oprah's Favorite Things for summer 2007.
-- Stephanie Thompson

DORITOS
ANN MUKHERJEE
Citizen journalists are so 2005. These days, it's about citizen branders.

Doritos captured consumers' enthusiasm with the launch of its "Fight for the Flavor" campaign, in which it asked fans to vote to determine which of two new flavors -- Doritos Smokin' Cheddar BBQ or Doritos Wild White Nacho -- should survive on store shelves. Smokin' launched during the Super Bowl with two consumer-generated spots in an overall campaign run by Goodby, Silverstein & Partners, which backed online and package plugs. "Consumers want to be in control, and that's what Doritos allows," says Ann Mukherjee, 41, group VP-marketing at Frito-Lay.

Doritos Smokin' Cheddar BBQ won after some 200,000 consumers e-mailed or text messaged their votes. Doritos sales, excluding Wal-Mart, were $512.9 million, up 14.1% for the period ended Sept. 9, according to Information Resources Inc.
-- Emily Bryson York

'THE 4-HOUR WORKWEEK'
TIMOTHY FERRISS
It has a genius title -- but it takes more than a catchy name to sell a book. So when first-time author Timothy Ferriss, 29, was launching "The 4-Hour Workweek," he dived into the blogosphere. And boy has it paid off: The book spent the better part of the summer on many best-seller lists.

Mr. Ferriss set his sights on a select list of top-10 bloggers and, instead of straight pitching, tried "to identify how I can customize an angle with how-tos specifically for their audiences." That led him to a presentation at the tech-blogger-heavy SXSW conference, which he says created a "Who the hell is this guy?" curiosity that led to sales.

He still used traditional media as a catalyst to gain distribution but found it was the web that really drove sales. He says an appearance on NBC's "Today" brought him up to No. 7 on Amazon for half a day. But an interview by video blogger Robert Scoble took him to No. 3 for two full days.
-- Abbey Klaassen

DREAMLINER
ROB POLLACK
Photo: The Boeing Company
Consumers might be choosy about their airlines, but do they care which aircraft they fly?

If Boeing gets its way, people will be lining up to fly in its 787 Dreamliner.

While the plane, which was officially unveiled in July, has recently suffered production setbacks, its buzz still resonates: So far, it's generated 736 orders worth about $122 billion, and its website, newairplane.com (created by New York shop Sarkissian Mason), has 180,000 registered members who learn about its development through podcasts. Even the name Dreamliner won out after half a million consumers voted in a contest through AOL.

Rob Pollack, 54, VP-brand and market positioning, calls the effort a hybrid approach of web, TV and other ads that's wooing consumers and the travel and airline industries. Feedback from the website has helped Boeing with its market research, he says. "We wanted to create a true differentiated product."
-- Patricia Riedman

SPUDWARE
STEVEN LEVINE
Photo: Tony Pettinato
Steven Levine spent 25 years selling Styrofoam plates and plastic cutlery until a light bulb came on -- a green one.

Mr. Levine, 55, and co-founder Allen King started Excellent Packaging and Supply and set out to get America off its unsustainable plastic habit. As VP-director of sales and marketing, Mr. Levine is selling SpudWare, compost-able cutlery, plates and lids made from potatoes, sugar, wheat and other food byproducts. SpudWare is baked in cutlery-shaped molds. Once used, the utensils can be composted into fertilizer to nurture potato crops. In California's trendsetting cities, he started by gaining product acceptance through wholesale customers such as vendors at San Francisco's Ferry Plaza farmers market. With a partnered website and Bay Area retailers selling the cutlery line, Mr. Levine has ramped up his marketing. Sales in 2006 were $5 million, and he says the company expects that to double to $10 million this year, with almost all of the growth in environmental packaging and utensils.
-- Alice Z. Cuneo

'SKINNY BITCH'
CRAIG HERMAN
Photo: Tony Pettinato
Craig Herman knows the power of a big-name endorsement. A president can turn a novel into a best-seller just by being pictured with it, and, as Mr. Herman found out this year, a former Spice Girl can do the same for a vegan diet book.

Victoria Beckham was snapped holding a copy of "Skinny Bitch" this year. Smart management of the buzz by Mr. Herman, VP-associate publisher at Running Press, an imprint of Perseus Books, helped make it nothing less than a cultural sensation. Weekly sales hit 20,000 copies at one point, and there are now 700,000 copies in print, off an initial run of just 15,000. "It's rare that a celebrity will be seen with a book," says Mr. Herman, 46. "It's also rare that you can pinpoint a tipping point like that and say, 'That's it.' "

No cultural observer could resist the irony of a book called "Skinny Bitch" being held by a ... well, let's just call Ms. Beckham a very, very thin woman. Aggressive post-Posh advertising and PR made the book and its authors, Rory Freedman and Kim Barnouin, fixtures on shows such as "Today" and "The View," countless newspaper style pages, and even more blogs. It's all paved the way for two more "Skinny Bitch" tomes: a recipe book and a guide for pregnant women.
-- MATTHEW CREAMER

VASELINE
SRINI SRIPADA
Vaseline had been around more than 130 years, but the past 30 had seen steady share declines. The way back to growth began in 2005 as Vaseline redoubled efforts to spend time with consumers and named a new agency, says Brand Director Srini Sripada.

Marketers noticed African-American consumers making "cocktails" of cocoa butter, petroleum jelly and lotion to combat ashy skin. "We said, 'Why can't we give them a product ... they want?'" says Mr. Sripada, 42.

Vaseline Cocoa Butter, launched in 2006, became the No. 1 hand-and-body lotion for African-Americans and fueled more than a year of double-digit sales growth, plus share gains for the brand overall. Information Resources Inc. put Vaseline sales for the 52 weeks ended Oct. 2 at $118.7 million. "Keep skin amazing" ads by Bartle Bogle Hegarty focus artful photography on celebrating skin in its many hues. It's about not taking skin for granted, Mr. Sripada says. Certainly Unilever is no longer taking Vaseline for granted either.
-- Jack Neff

CHOCOLATE
JOHN HARROBIN
Verizon Wireless executives said they decided to forgo Steve Jobs' kind offer for an exclusive on the iPhone because of all the strings attached. But the carrier made its own move, offering customers something sweet before the iPhone hit the marketplace: Chocolate, an LG phone with music and other advanced capabilities. Its seduction was featured in TV spots simply showing the phone unwrapped, as if it were a chocolate bar. But the secret sauce went beyond paid media to include wild postings, radio and YouTube videos.

Internally, John Harrobin, 38, VP-advertising and digital media, peppered sales teams in stores with alerts and other teasers about the phone's launch. "We romanced the phone in a way we hadn't done before," he says. Verizon has sold 3.4 million Chocolate handsets in the year they've been on the market. It never officially sold the phones with chocolate, although a number of retailers did go for the nose by wafting chocolate fragrance and scattering chocolates on displays.
-- Alice Z. Cuneo

LAURA'S LEAN BEEF
LAURA FREEMAN
Laura Freeman wanted to lose weight. But the Kentucky cattle farmer had trouble finding the naturally raised lean beef she wanted in stores–so she solved the problem in a big way.

Laura's Lean Beef is a $150 million-plus business, having grown at double-digit rates for several years . Rather than grow through natural-food chains, a rarity around Lexington, Ky., Ms. Freeman, 50, took her brand more mainstream, largely through Kroger Co., which features the brand prominently.

She's used her blog, recipe-laden website and e-mail newsletters to build the brand with a growing fan base that's become familiar with her face on the label.

Not even a horse-riding accident that required a helicopter evacuation could slow down her or the brand. Instead, it provided some inspiration. She blogged that lying flat on her back, she was at eye level with a lot of people's behinds, noting: "They all were way too wide!"
-- Jack Neff

KEEN
BOBBIE PARISI
Photo: Tony Pettinato
If you promise to build sustainability, young people will come.

At least that's what green comfort-shoe marketer Keen is promoting. Since launching its environment-themed "Stand" campaign within its larger "HybridLife" effort this August, the footwear company has won over the under-35 set, says VP-Marketing Bobbie Parisi, 50.

Monthly traffic on its website is up 58%; e-mail newsletter sign-ups are up 90%; and the marketer received more than 400 submissions for a Hybrid contest handled by Forty Forty, Berkeley, Calif. The campaign includes ads in 14 publications such as Dwell, a film and posters distributed to college campuses, plus a set of brand ambassadors talking up the product.

The talk is paying off for Keen, which has seen a 30% growth in the U.S. market each year since it started and sells its products in 1,500 retail locations. This past year, Keen saw 40% growth in its international market. Keen promotes its use of natural and recycled materials in its products, including the Ventura shoe with recycled eyelets for the laces. What more could entice today's college kids?
-- Stephanie Thompson

ALWAYS
ILONKA LAVIZ
Procter & Gamble Co. has led the U.S. sanitary-pad category since 1996 with its Always brand. But this year, marketing has helped moved the brand's share past the 50% barrier, up nearly three points from a year ago, according to ACNielsen data from Sanford C. Bernstein.

Behind that gain are new products such as Always Clean (a pad paired with a cleansing wipe) and an unusual ad campaign from Leo Burnett, Chicago, with the tagline "Have a happy period." The campaign uses such lines as "It's OK to skip the gym" in transit ads. P&G also used its teen health site, beinggirl.com, to promote the products.

Ilonka Laviz, 33, associate marketing director, claims pad users have a sunnier outlook on periods than tampon users. "Her period is a natural part of being a woman," she says of the Always consumer. "These women are using their period as an excuse to indulge ... be a little more irritated or irrational, or pamper [themselves]." The effort's been controversial -- and successful because of that, she says.
-- Jack Neff

YAHOO ANSWERS
VISH MAKHIJANI
While Google shut down its Q-and-A service in early 2007, Yahoo Answers, introduced in 2006, has become one of the portal's most popular products. According to Nielsen/NetRatings, traffic to Yahoo Answers has grown from 10.5 million monthly unique visitors in September 2006 to almost 14.5 million last month.

Most responsible for the service's success are its users, quick to pitch in with advice. But Vish Makhijani, general manager and senior VP-Yahoo Search, also has been responsible -- for having patience with the site in terms of monetization. Mr. Makhijani, 38, has shown restraint, choosing to let it grow organically before launching a major monetization plan (soon to come, says Yahoo).

"The search experience is going to become richer," Mr. Makhijani told the San Jose Mercury News. It's especially important since it's an asset that rival Google no longer has. Yahoo has made Answers part of its consumer push themed "Life is a little bit better with Yahoo."
-- Abbey Klaassen

IPHONE
STEVE JOBS
In setting out to launch the iPhone, Apple CEO Steve Jobs carefully orchestrated a program of hype, viral buzz, event marketing, TV advertising and unmitigated PR triumph.

After months of hide-and-seek, he hijacked the attention of thousands of the world's technorati at the Consumer Electronics Show. When the product finally came out, lines formed in front of Apple stores, a New York Times columnist literally sang and danced in his online review, and well-crafted ads (from TBWA/Chiat/Day) beautifully explained the phone and its features. With more than 1 million phones sold, Mr. Jobs decided to give the phone a Christmas goose, dropping the price by $200. When bloggers and online critics screamed, he offered them $100 store rebates so they could buy, yes, more Apple items.
-- Alice Z. Cuneo

SEVENTH GENERATION
JEFFREY HOLLENDER
Environmental activist, author and product marketer Jeffrey Hollender knew he was onto something two decades ago. Now everyone from consumers to Wal-Mart has caught on.

The household and personal-care products of Seventh Generation have seen sales soar 40% to more than $100 million this year, capping several years of strong double-digit growth.

The CEO has been an ardent blogger, in the process winning over students to lobby colleges to adopt his green products.

Mr. Hollender likes much of what Wal-Mart is doing about sustainability, but he still says no to selling there. "When you're growing 40% without Wal-Mart, you have to think carefully about bringing on a customer that size," says Mr. Hollender, 52.
-- Jack Neff

Link to AdAge Article