Hardee's Shifts $80 Mil. Biz from Cliff Freeman to M/Z
NEW YORK—Just 11 months after awarding its estimated $80 million account to Cliff Freeman and Partners, Hardee's has left for Mendelsohn/Zien in Los Angeles. Hardee's parent company, CKE, based in Anaheim, Calif., also owns Carl's Jr., another M/Z account.
Brann May Cut 60 Jobs
BOSTON—Brann Worldwide will trim about 60 employees, roughly half of the staff in its Wilton, Conn., headquarters, if business does not improve by year's end. The decision stems from IBM's consolidation earlier this year of its relationship marketing chores with OgilvyOne and Wunderman Worldwide, said Brann CEO David Finkel.
Burnett Lays Off 50 Employees
CHICAGO—Leo Burnett will lay off 50 people, about 2-3 percent of its staff in Chicago, and consolidate some positions by Nov. 1, according to an internal memo from worldwide president Bob Brennan and U.S. chief creative officer Cheryl Berman. The memo attributed the cuts to the continued industry downturn and a new business model within the agency. In February, Burnett let go 200 employees, about 9 percent of its staff at the time.
Kia Names New Marketing Chief
LOS ANGELES—Kia Motors America has hired Peter Butterfield as executive vice president of sales, marketing and fixed operations. Butterfield, 48, replaces Dick Macedo, who retired in April. Butterfield was recently assigned to Lincoln-Mercury after spending 11 years with Volvo. While speculation had swirled that Kia would split with agency davidandgoliath in Los Angeles once Macedo's replacement was found, a Kia rep said the Korean carmaker has no such plans. Davidandgoliath won the $120 million account in November 1999 without a review.
Post Office Puts Advertising on Hold
CHICAGO—The United States Postal Service has suspended its advertising efforts to "keep its focus on current events," according to a USPS statement. TV spots have been taken off the air and no new print buys are being made, though print ads currently in market will continue to run through November. Leo Burnett earlier this month broke a campaign for the USPS with the tagline, "We're everywhere so you can be anywhere."
United Extends Campaign; American Breaks Spots
CHICAGO—The United Airlines campaign featuring its employees has been extended through the World Series, according to Jerry Dow, the carrier's director of worldwide marketing. Fallon in Minneapolis has created four new spots for the Sept. 11-response campaign, which broke earlier this month. The new spots include a "call to action," such as taking a vacation, Dow said. Separately, American Airlines last week launched its first ads since Sept. 11 with a fare sale tagged as "The great American get-together." Print and radio ads broke nationwide from the carrier's agency, Temerlin McClain in Irving, Texas. TV spots depicting photos of family gatherings will break this week. A voiceover says lines such as, "Somewhere in America there's a table spread … with bowed heads and held hands."
WPP Appeals U.K. Panel Ruling; Releases 3Q Results
NEW YORK—WPP Group is appealing the U.K. Take over Panel's decision last week to reject its attempt to abort an acquisition of Tempus Group. The Takeover Panel's ruling committee denied WPP's invocation of the "material adverse change" clause in its move to rescind the $629 million bid for Tempus, the U.K.-based parent of CIA Medianetwork. Also last week, WPP released its third quarter earnings. While noting that revenues were up 56 percent for the first nine months of 2001, and up 41 percent for the third quarter, the company also said it would have difficulty meeting its 2001 operating margins.
The Media Edge Names Scanzoni to Broadcast Post
NEW YORK—Rino Scanzoni, the former executive vice president and a managing director of Bcom3's MediaVest, New York, has signed a contract with WPP Group's The Media Edge North America to succeed the retiring Bob Igiel as president of the media shop's broadcast division. Scanzoni will only step into the job in January, due to what sources said is a non-compete clause in his contract with MediaVest, which he left in December 2000.
Lowe Lintas & Partners has resigned its part of Western Union's $25 million account, citing the client's desire to focus on the Hispanic market. It's unclear what Western Union will do with the business. A client representative said Western Union was "not soliciting any outside proposals," noting that it has recently been conducting an "internal review" of its marketing partners. Western Union's Hispanic market agency is Bromley Communications in San Antonio. … Hasbro has consolidated its Tiger Electronics brands, previously handled by Posnik & Kolker, at DDB and Grey in New York. As a result, Posnik & Kolker has cut two-thirds of its 18-person staff. … Zenith Electronics will hear pitches from four New York shops this week and next, sources said. Vying for the $30 million account are Avrett Free Ginsberg; Hill, Holliday, Connors, Cosmopolus; J. Walter Thompson and Kirshenbaum Bond & Partners, according to sources. … Six shops are contending for Kinko's $30 million account: GSD&M in Austin, Texas; The Richards Group in Dallas; Temerlin McClain in Irving, Texas; D'Arcy Masius Benton & Bowles, in St. Louis; J. Walter Thompson in Chicago; and incumbent TBWA\Chiat\Day in Playa del Rey, Calif. … D'Arcy Masius Benton & Bowles has left the review for Molson's $10 million U.S. account, leaving Carmichael Lynch in Minneapolis and Crispin, Porter + Bogusky in Miami.