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Chicken of the Sea International
The Jessica Simpson Spokesperson Decision
Teaching Note

Case Overview

This case examines Chicken of the Sea International (COSI), one of the major competitors in the canned/packaged tuna and seafood industry, and the decision facing the company's senior vice president of marketing as to whether the he should hire pop star Jessica Simpson as a spokesperson. COSI received a tremendous amount of publicity in the Fall of 2003 and early 2004 following the famous fish faux pas that Simpson made on the MTV reality show The Newlyweds: Nick & Jessica. While eating a can of Chicken of the Sea tuna Simpson turned to her co-star husband and asked the whether the product inside is chicken or tuna. Simpson's gaffe became the target of jokes and a myriad of media stories that resulted in a great deal of publicity for Chicken of the Sea. The company took advantage of the incident by having her make a surprise visit to its annual sales meeting in October 2003.

     The case focuses on whether COSI should try to capitalize on the publicity and hire Simpson as a spokesperson. There are a number of factors that Don George, the senior vice president of marketing must consider in making this decision including whether the company can afford to hire her, how her image will fit with the brand, and how 25-54 old women who comprise the company's core target market might react to her as a spokesperson for the brand. It can be used with Chapter 6, Source, Message and Channel Factors, as it focuses on the use of a celebrity as a spokesperson and issues to consider in selecting an endorser. The case provides students the opportunity to evaluate Q scores for Jessica Simpson and see how they vary among different demographic groups. This case can also be used with Chapter 16 on Sales Promotion as COSI is a company that allocates most of its marketing budget to consumer and trade promotion. A decision to use Simpson will mean more emphasis on media advertising which will take monies away from the sales promotion budget.

     This case should be of great interest to students since many of them will be familiar with Jessica Simpson and are probably aware of her famous fish or tuna faux pas. Many will feel that COSI should take advantage of her gaffe and hire her as an endorser. However, the case be used to show that the decision to hire a celebrity endorser requires the consideration of a number of factors. Classroom discussion of this case can be enhanced by showing the video case on Chicken of the Sea that is part of the supplements package that accompanies the text. The video case can be found on tape or CD ROM 5 and provides an excellent overview of Chicken of the Sea, the competitive situation in the tuna industry, the company's new branding initiative, the various types of consumer and trade and promotions used by the company and the role the company's web site plays in its IMC program.

Discussion Questions

1. Discuss the consumer decision making process for a product such as canned tuna and the response hierarchy model that is most likely to applicable in the purchase of this product.

   Canned tuna is a very good example of a product that is a low involvement purchase decision for most consumers. Tuna is essentially a commodity product with very little differentiation among the various brands. While the three major brands (StarKist, Chicken of the Sea, and StarKist) all claim to have superior taste, most consumers do not perceive significant differences in taste and quality among them. Moreover, many consumers recognize that private label brands are produced by the same companies that process and can the national brands and find them acceptable substitutes. The lack of perceived differentiation among the competing brands means that canned tuna is often purchased on the basis of price. Marketers of canned tuna must keep their shelf prices competitive with the other national brands as well as the private label brands offered by the various retailers. Sales promotion plays a very important role as consumers are usually looking for brands that are on sale or for which they might have a coupon.

        The low involvement response hierarchy is likely to be applicable in the processing of information and purchase of canned tuna. As discussed in Chapter 5, this hierarchy views the consumers as engaging in passive learning and random information catching rather than active information seeking. Consumers are likely to engage in peripheral processing of advertising messages and may focus more on elements such as music, characters, symbols, and slogans or jingles than actual message content. These peripheral cues become salient when the consumer is actually in the store and making a purchase decision among the various brands. All three of the major tuna brands appear to be marketed with the low involvement hierarchy in mind. Advertising for StarKist relies on the personality symbol of the Charlie the Tuna animated character (see Chapter 9 for a discussion of this execution technique). Chicken of the Sea relies on its iconic mermaid and the use of a catchy jingle ("Ask any mermaid you happen to see..What's the best tuna? Chicken of the Sea.") while Bumble Bee also uses its Bee character and a jingle as well ("Yum, yum Bumble Bee, Bumble Bee tuna"). A classic Bumble Bee commercial can be found on the company's web site (www.bumblebee.com) under products.

        In discussing the consumer purchasing process for canned tuna it is important that you do not lead students to conclude that this product has become totally commoditized and no brand differentiation is possible. There are several key points you might want to make to students who try to draw this conclusion. First of all, the three national brands (StarKist, Bumble Bee and Chicken of the Sea) account for 82 percent of the market share in the tuna category. If tuna was indeed a commodity, one might expect that private label brands would have a greater share of the market. A second important point is that there is strong brand loyalty in the canned tuna category. Figure 4.5 of the text shows that 44 percent of consumers indicate that they are loyal to one brand of tuna. Moreover, brand preference for tuna is also somewhat regional as Bumble Bee does very well in the Northeast and Florida while StarKist and Chicken of the Sea are stronger in the North Central and West regions of the country. While there is a strong level of brand loyalty for the various brands, it is important to note that many consumers remain loyal to a brand only if it is priced competitively. Thus, marketers of the three national brands recognize that it is important that they maintain shelf prices that are the same or within a few cents of their competitors as well as the store brands. This means they will rely heavily on price oriented types of sales promotion such as trade and promotional allowances. One area where the tuna marketers have been able to break away from the heavy emphasis on price and promotion is with new pouch products such as the tuna salad kits and Lunch To-Go.

2. Discuss the role integrated marketing communications plays in the marketing of canned/packaged tuna for a company such as Chicken of the Sea. How might the company use the various IMC tools as part of its marketing program?

   Integrated marketing communications plays a very important role in the marketing of canned/tuna as the various companies use all of the IMC tools, although to different degrees. Media advertising is used to create and maintain brand awareness and to help differentiate a brand. The major product attributes that are emphasized in media advertising are taste and quality. As noted in question 1, given the low involvement decision making process for tuna, the companies use peripheral cues in their ads such as catchy slogans and jingles as well as personality characters and symbols. Media advertising is also important in the introduction of new types of tuna products. As discussed in the case, there have been several important product innovations in the category in recent years such as tuna in a pouch, tuna salad kits, flavored tuna, and Lunch To-Go products. StarKist and Chicken of the Sea have used media advertising to introduce these product innovations to consumers. It is important to note that the level of media advertising in the tuna category is really very low as most of the promotional budgets of the three major competitors are being allocated to sales promotion. StarKist spends the most on television advertising for ads featuring its Charlie the Tuna personality character. Chicken of the Sea spends nearly its entire media budget on radio, print ads and floor signage ads. Bumble Bee has not been running any media advertising for several years, choosing to focus its attention on consumer and trade promotion.

        The primary IMC tool used by the marketers in the canned/packaged tuna category is sales promotion. As discussed in the case, price competition as well the significant market share of private label brands have shifted the power from the marketers to the retailers who demand, and usually get, trade and promotional allowances from the manufacturers. The three competitors also rely heavily on consumer promotions in the form of national FSIs, check out coupons, point-of-purchase displays, premium offer, price-off deals, and contests and sweepstakes. You might ask students to examine Exhibit 16-26 of the text which contains a promotional calendar showing the various promotions Chicken of the Sea uses for its products over the course of a year. Chicken of the Sea International has also recently implemented the Mermaid Club which is a consumer loyalty program that is designed to encourage repeat purchase and get consumers more involved with the brand. The heavy emphasis on sales promotion in the tuna industry is a very good example of a promotional trap which is discussed in Chapter 16 and shown in Exhibit 16-8. It will be very difficult for the competitors to break out of this trap unless they agree to cut back promotional spending. However, they are afraid to do so because of a fear of losing market share to other national brands and/or private label brands offered by the retailers.

        While sales promotion and media advertising are the IMC tools used the most by the marketers of canned/packaged tuna, they also used direct marketing, the Internet, publicity/public relations and personal selling. Direct marketing is used by periodically sending target direct mail pieces that contain coupons or premium offers to consumers. COSI is also beginning to do direct marketing through email to consumers who join its Mermaid Club. Publicity/public relations is also an important part of the IMC program of the various companies. Each company regularly issues new releases dealing with health and nutritional issues related to tuna and other products. For example, the industry recently has had to deal with negative publicity concerning the mercury content in tuna and its potential impact on pregnant women. Each company as well as the industry's major trade association, the United States Tuna Foundation, have ongoing public relations efforts that address major issues facing the industry. Each company also works to generate publicity for its products and marketing efforts. As noted in the case, Chicken of the Sea's public relations firm issued video news releases to generate publicity over Jessica Simpson's visit to the company. StarKist and COSI often issues news releases regarding their upcoming advertising campaigns to advertising and marketing publications such as Advertising Age, AdWeek and Brand Week as well trade publications such as Progressive Grocer, Grocery Headquarters and Food Engineering. Another type of public relations activity that is used by the competitors in the tuna category is event sponsorship. For example, Chicken of the Sea sponsored the U.S. Synchronized Swim team that competed in the 2000 Olympics and used its sponsorship to offer a sweepstakes whereby consumers could win a trip to games in Sydney, Australia.

        The Internet has also become an important IMC tool for the tuna companies as they all maintain web sites that contain company information, product information, recipes, health and nutritional information, new releases and examples of their advertising. As discussed in the video, Chicken of the Sea's web site is an important part of their IMC program. The site contains an easy-to-use recipe generator, resources on health and nutrition, as well as games and educational content. It also includes the Mermaid Store, where consumers can shop for everything from T-shirts to watches to sporting goods featuring the classic mermaid logo. The web site has become an integral part of Chicken of the Sea's IMC program as the company uses other forms of media to drive consumers to the site and engage them in the brand. COSI uses its web site as the vehicle through which consumers can join their customer loyalty program called the Mermaid Club.

3. Discuss how Chicken of the Sea's marketing personnel and advertising agency might evaluate the appropriateness of using Jessica Simpson as a spokesperson for the company and whether she is a good fit for the brand.

   This question provides the instructor with the opportunity to apply the information in Chapter 6 that discusses the use of celebrities as endorsers. There are a number of ways Chicken of the Sea International marketing personnel and ad agency can evaluate how well Jessica Simpson might work as a spokesperson for the company. One basic consideration is whether she might overshadow the product and the advertising message. This is important since consumers might pay attention to Simpson and not notice that she is promoting the Chicken of the Sea brand. However, since tuna is a low involvement product, it is likely that any advertising using Simpson will contain a simple message promoting attributes such as taste or quality. Thus, it should not be difficult to generate strong brand and advertising awareness by using her. Another consideration is overexposure. Simpson did sign an endorsement deal with Pizza Hut and appeared in a commercial that premiered on the 2004 Super Bowl. However, at the time of the case she was not serving as a spokesperson for any other companies or brands so this should not present a problem to COSI. The company must also consider whether there is any risk associated with using Simpson as an endorser. In general this should not be a problem since she has a wholesome image and is not as controversial as other young female pop stars such as Brittany Spears or Christina Aguilera. However, Simpson has become known for her ditzy behavior and comments on The Newlyweds MTV show and COSI may have some concern that she might say or do something that would be even more embarrassing than the fish or chicken gaffe. As with any celebrity, there is a certain amount of risk associated using her as any inappropriate acts or behaviors she might engage in would be covered heavily by the media and could reflect negatively on COSI if she was a spokesperson for the company.

        One of the most important considerations for COSI regarding Simpson is that of target audience receptivity. As noted in the case the core target market for Chicken of the Sea is 25 to 54 year old women and it is unlikely that this group will identify with Simpson and may even have negative opinions toward her because of her ditzy blonde image. Moreover, the company must consider whether these women would see her as a credible spokesperson for Chicken of the Sea, particularly considering the fact that she was not even aware of whether the product was tuna or chicken. Chicken of the Sea's advertising agency will be challenged to develop a campaign using Simpson that will be received favorably by the core target audience. On the other hand, younger consumers may be more receptive to Simpson as a spokesperson since she is very attractive and popular celebrity. The information from the Marketing Evaluations/TVQ study supports this argument as Simpson has a Q score of 23 among 12-17 year olds but only a 9 among those 18-34 and a 10 among those 25-49. It is also important to note that the percentage of those familiar with Simpson is very high among the 12-17 year old group (72%) as well as the 18-34 year olds (76%). However, the familiarity score drops to 49 percent for those in the 35-49 year old age group. Exhibit 1 also show that Simpson's Q score among the core target market of 25-54 females is an 8 while the percentage of those familiar with her is 55. Students should be encouraged to analyze the Q scores and other information provided in Exhibits 1 and 2 for both Simpson as well as other female musical performers.

        Another factor COSI must consider is how well she fits with the company and brand as an endorser. As discussed in Chapter 6, advertisers must try to match the desired image for the company and/or brand with the image and characteristics of the celebrity. Students should be encouraged to consider how McCracken's meaning transfer model might be applied to Simpson as a spokesperson for Chicken of the Sea. This requires them to consider the cultural meaning of Jessica Simpson and whether this is the image that COSI wants to have transferred to the company and/or brand. Students should be asked to discuss the meaning/image of Simpson and how it was acquired. They are likely to note that her image originally was that of a young, attractive singer with somewhat of a wholesome image. However, her meaning changed dramatically as a result of her role on the MTV show Newlyweds as she became known more as a "ditzy blonde" who often says and/or does dumb things. COSI must consider if they want their brand associated with this image as it might be a turn off to older women in their core target market.

        Some students may argue that Simpson can be portrayed in a role as the Chicken of the Sea mermaid since she is a very attractive young woman who bears a resemblance to the latest version of the well known icon. One way of evaluating this suggestion is to consider how well Simpson image matches the characteristics COSI tries to portray in the mermaid. The case notes that the attributes of the mermaid include being trustworthy, magical, attractive, friendly, approachable, contemporary and fitting with the Chicken of the Sea brand. Simpson's image actually fits well with most of these attributes although it is questionable as to whether she would be perceived as trustworthy and as fitting with the Chicken of the Sea brand.

4. Discuss the pros and cons of Chicken of the Sea International hiring Jessica Simpson as a spokesperson for the company. Can the company afford to hire her and spend the money on TV advertising to use her effectively?

   Many of the pros and cons of COSI hiring Simpson as an endorser have been addressed in the answer to the previous question. However, it still may be helpful to have students make a list of reasons why the company would benefit from having her as a spokesperson as well as why this would not be a wise decision. Arguments in favor of hiring her include the opportunity for COSI to build on the favorable publicity that has resulted from her famous fish or chicken faux pas. Using her as an endorser may be a particularly effective way to increase awareness and interest in the brand among younger consumers. Awareness of Simpson is probably even higher in early 2004 than the Q scores results indicate since she received a tremendous amount of exposure and publicity in late 2003 and early 2004. Moreover, since tuna is a low involvement product, consumers may be receptive to advertising for Chicken of the Sea featuring Simpson. One option that the company was considering was to feature her in print ads with the headline stating "Our mermaid has never looked so good." It is likely that COSI could generate a great deal of publicity if the company hired Simpson as a spokesperson which would result in exposure and attention for the company and brand that would extend well beyond the media time or space that was actually purchased.

        There are, however, a number of arguments that could be made against using Simpson. One of the primary arguments against using her is that the 25 to 54 year old women in COSI's core target market may not respond favorably to Simpson and may even be turned off by seeing her in ads for the brand. This group purchases most of the tuna and may not be influenced by Simpson because of her ditzy blonde image and or lack of relevance to the product. Another problem with using Simpson is that COSI really does not have a large media budget and probably cannot afford to use television on a regular basis. A celebrity such as Simpson would be more effective in TV commercials than print or radio ads, which is where COSI spends most of their advertising dollars. The case notes that COSI is planning on spending approximately $11 million on advertising in 2004. However, Simpson's endorsement fees would have to come from this budget as would production costs for commercials. This means there would be less money available to run ads in media traditionally used by COSI such as radio, print and in-store. Students might note that COSI is now a $600 million company and the proposed media budget of $11 million is less than two percent of sales. However, the company spends a great deal of money on consumer and trade promotion so the overall marketing communications budget is a much higher percentage of sales than two percent.

5. What would you do if you were Don George? Would you recommend that the company hire Simpson as a spokesperson? Why or why not?

   The ultimate decision Don George and COSI must make is whether to hire Jessica Simpson as a spokesperson. As noted in the case, COSI will probably have to pay her more than a million dollars which is a very large sum of money for a company that does not spend much money on media advertising. The main question George must try to answer is what type of return on investment the company would get if it were to hire Simpson. While she would probably be effective at increasing advertising and brand awareness, the ultimate issue is whether using her would help increase sales as well. One way of looking at this is to consider what the return would be if she helps COSI increase its market share. One market share point in the canned tuna market (including food service, and warehouse/club stores) represents approximately $20 million in sales. If COSI's profit margin is 4 percent, the company would generate $800,000 in profits for each share point gain. Based on these figures, Simpson would have to help the company increase its share of the canned tuna market by a little over one point to cover the costs of using her. However, Simpson could also be used to endorse other COSI canned seafood products so the cost of using her could be allocated across these items as well. Of course there is no guarantee Simpson will help the company move the sales needle as increases in advertising and brand awareness do not always result in sales increases. While it is important for COSI to analyze this decision from a financial and ROI perspective, there are other considerations that factor into the decision. One of COSI's goals is to try to attract new and younger users to the brand and Simpson may be helpful in achieving this. Of course George must also consider whether there might be some type of backlash among the older women who comprise the core target audience as they may not like the ditzy blonde image that Simpson has come to personify.

        At the time this case was written (late January 2004), COSI had not entered into an agreement to hire Simpson. In the authors' discussion with Don George, he indicated that the company was reluctant to pay the large amount of money that would be required to retain Simpson and felt that COSI's limited media budget would not allow them to use her effectively. Moreover, he felt that COSI was benefiting from all of the publicity that was generated by the Simpson faux pas and thus she was serving as a type of quasi endorser but not really costing the company any money. George was also concerned as to how retailers might react if COSI retained Simpson as they might view this as evidence that the company had marketing funds available and thus put more pressure on them to provide more trade promotion dollars. Instructors should keep updated regarding developments involving Simpson and whether COSI ultimately decides to hire her as a spokesperson or in some other capacity.

MAZDA – POSITIONING A PRODUCT LINE
TEACHING NOTE

Case Overview

     This case examines Mazda North American Operations and the efforts of the automobile company and its advertising agency, Doner, to its position its vehicles in the highly competitive U.S. automotive market. The case begins by describing the IMC program developed by Doner to reposition the subcompact Mazda Protegé model a few years ago using the "Get In. Be Moved" tagline. The repositioning of the Protegé was very successful and Doner began using the tagline in advertising for other Mazda vehicles. However, Mazda's marketing executives were concerned that "Get In. Be Moved" theme was too passive and vague and was not effective in positioning Mazda as a company that makes sporty vehicles that appeal to the driving enthusiast. In 2001 Mazda began using a new creative platform in advertising and replaced the "Get In. Be Moved" tagline with a new theme based on the phrase "Zoom-Zoom." The case provides an opportunity for students to evaluate the change in Mazda's positioning strategy and the IMC campaign used to reposition the Protegé, as well as a new campaign for the MAZDA6 sports sedan.

     The classroom discussion of this case can be enhanced by showing the Mazda Protegé video that is provided as part of the instructor's supplement package. This video presents a detailed examination of the integrated marketing communications program developed by Doner to reposition the Mazda Protegé as a cool, fun, hip, vehicle that would appeal to a younger target audience. It examines the various elements of the IMC program for the Protegé including media advertising, the development of an Internet website and use of banner advertising, sales promotion, direct marketing, publicity/public relations and point-of-purchase programs. Three of the commercials developed by Doner as part of the repositioning campaign for the Protegéare also available on tape one under Chapter 2. Additional background information regarding the Mazda Protegé video and the three commercials is available in the Instructor's Video Manual.

     In addition to the video and commercials, print ads for the Protegé5 and MAZDA6 are included with the case. Students should be encouraged to review these ads when analyzing the case to gain more insight into the advertising used for these models. You should also encourage students to visit the Mazda web site at www.mazda.usa.com where information is available on the various Protegé models and the MAZDA6, as well as the Mazda Tribute and the RX-8.

Discussion Questions

1. Analyze the role of integrated marketing communications in the marketing of automobiles such as the Mazda Protegé and MAZDA6. How is each IMC tool used to market automobiles?

        Integrated marketing communications play a very important role in the marketing of automobiles such as the Mazda Protegé and MAZDA6. Many automobile buyers base their purchase decisions on product related attributes such as price, quality, reliability, durability and performance, as well as on factors such as style and brand image. A variety of IMC tools are used to provide consumers with information about the Protegé as well as to create an image that will appeal to the target market for the car. The case notes that Mazda's turnaround strategy in 1997 called for a change in the positioning of the Protegé. The car was originally positioned as a step up from a compact sedan and but as a car that retained compact attributes such as fuel efficiency and a low price. The new strategy called for positioning the Protegé as a cool, fun, hip-to-drive car for young professional women in their early 20s to mid-30s. To accomplish this repositioning, the advertising for the Protegé began focusing on attributes such as the car's euro-chic styling, room for friends, value, reliability, and cool features such as CD players and air-conditioning.

        Mazda uses all aspects of the promotional mix to market its automobiles and other vehicles. Advertising on television as well as in magazines played a very important role creating and reinforcing an image of the Protegé as a car that is cool, fun, and hip-to drive. The TV commercial depicting the group of hip 20-somethings carpooling in the Protegé and driving through the surrealistic cityscape was designed to help create the above noted image and positioning for the car. Direct marketing was used by building a data base of customers who enter the sweepstakes on the Mazda web site and/or request more information about the Protegé. These customers were sent information about the Protegé and occasionally received direct mail pieces. Interactive media and the Internet were also used as part of the IMC program for the Protegé. Mazda's interactive agency created the "Protegé road trip" on Mazda's web site where consumers could take a cyber journey to learn more about the car. Mazda also mailed a CD-ROM with music, movie reviews and interviews to consumers who requested more information about the Protégé. Sales promotion techniques such as a consumer sweepstakes and dealer incentives and contests were also part of the Protegé launch. Mazda also generated a considerable amount of publicity for the Protegé and its advertising campaign through press releases and various public relations activities. Finally, promotional efforts for the Protegé were extended to dealerships to support the personal selling effort and to convert the showroom into a "Protegé World" that extended the advertising and positioning theme to the showroom floor. Sponsorship of events such as auto racing and motocross is also a very important part of Mazda's IMC program.

        An integrated approach was also used in the introductory campaign for the MAZDA6 that involved the use of media advertising; a direct mail program which included the mailing of videos and CD-ROMS to prospective buyers,; event sponsorship; participation in various promotions sponsored by ESPN; showroom displays in Mazda dealerships; online advertising, and a specific section on the MadzaUSA web site. You might go through each of the IMC tools used for the Protegé and the MAZDA6 and discuss the role each plays in the marketing communications program for these vehicles.

2. Evaluate Mazda's decision to drop the "Get In. Be Moved' tagline for the Protegé and adopt the "Zoom-Zoom" theme for its advertising.

        The decision to drop the successful "Get In. Be Moved" tagline would appear to be based on Mazda's desire to return to and build upon its heritage and long-term positioning of making fun-to-drive cars that are sporty and appeal to the driving enthusiast in everyone. While the "Get In" tagline may have worked well for the Protegé, Mazda's marketing team felt that it really did not differentiate the brand very well nor contribute to the aforementioned positioning platform. To effectively position an automobile, it is necessary to develop an image over time. Mazda positioned itself as a company that made sporty cars that appealed to driving enthusiasts way back in the 1970's, and attributed much of its early success in the U.S. market success to this image. The success of the Mazda RX-7 sports car and the Miata roadster reinforced this positioning platform.

        The highly successful launch of the Mazda Tribute sport utility vehicle, which was positioned as having the "soul of a sports car" and accompanied by ads using the "Zoom-Zoom" mantra, provided further support that the sports car tie-in would be beneficial to Mazda. Subsequent use of "Zoom-Zoom" in advertising for other vehicles led to increases in advertising and brand awareness. For a company that struggled with a brand identity in the 1990's, the adoption of the "Zoom-Zoom" advertising was a smart move. In part, the mantra contributes to the positioning that has made Mazda successful in the past. The "Get In. Be Moved" theme would not have been as successful in achieving the sporty positioning that Mazda is trying to achieve.

3. Evaluate the strategy Mazda of North America is using for the new MAZDA6 sports sedan. Do you agree with the decision to use a more mature and less playful approach to advertising for the MAZDA6?

        As noted in the case, the MAZDA6 introduction was one of the most important in Mazda's history. The MAZDA6 competes in the mid-size sedan segment, which is the most important segment of the automobile market due to its size, and success or failure in this segment may have a halo effect that carries over to the rest of the product line. In addition, cars that compete in this segment often constitute the foundation upon which the product line is based. To compete in this segment, Mazda will have to go head-to-head with the Toyota Camry, Honda Accord and Nissan Altima, all of which are highly successful and worthy adversaries. In addition, the target market for the MAZDA6 is consumers in their mid-30's, typically male, and somewhat less of a car enthusiast, which makes this group somewhat different than the customer for the other Mazda models.

        Mazda's strategy for the "6" must strike a balance between the sporty positioning and a more reserved, mature approach. They must be careful not to give up on the positioning that has made them successful, but recognize the needs of a more mature audience, and translate "sporty" into "enthusiast." At the same time, they must find a way to differentiate themselves from the firmly entrenched competitors such as Toyota, Honda and Nissan. The MAZDA6 strategy appears to be well designed. The retention of the "Zoom-Zoom" mantra helps to maintain the sporty positioning strategy, which should serve as a basis for differentiation. The ads themselves appear to be more mature, less playful and suggest that the MAZDA6 is a more "grown-up" option, without abandoning the fun aspects of driving. The focus on handling, performance and mechanical aspects should appeal to the enthusiast, who may be looking for something different from the standard midsize car (after all, getting older doesn't mean one has to act older!).

   The highly integrated media campaign also looks promising. An increase in print ads may be necessary to explain some of the sporty features of the new MAZDA6, while the television spots are still exciting and fun to watch. The media schedule, which is heavily weighted to ESPN, the NFL and NCAA College Football, reinforces the sporty aspects of the car, while reaching the sought target audience. Tie-ins to other sports programming such as ESPN's Pigskin Pick'Em, Exhilarating Moments and Truck 2 Promo should help reach the target for the MAZDA6. Mazda has also integrated elements of previously successful campaign including the Internet, publicity and public relations, direct mail, and event sponsorship into the IMC program. Receiving recognition from automotive magazines such as Car and Driver's award for one of the 10 Best Cars for 2003 is great publicity that can be promoted in media advertising and other venues such as the web site for the MAZDA6.

4. What recommendations would you make to Mazda regarding its integrated marketing communications strategy as the company moves forward?

        When Mazda has been successful, it is due in large part to having an image as a company that makes sporty, fun-to-drive cars. This positioning helped them achieve success with the RX7 and the Miata. When Mazda has gone away from this positioning the company has lost its basis for differentiation and its models have become "just another car". To be successful, companies must develop a sound positioning strategy and maintain it over time. In the 1990's it was not clear as to what Mazda brand stood and the company had trouble differentiating its vehicles from the competition. However, by establishing and maintaining the sporty positioning strategy, Mazda now has a stronger image and identity for its various models. For those consumers that want some exhilaration and fun in their driving, Mazda models such as the Protegé and MAZDA6 should appeal to them. A lesson can be learned by observation of the BMW's strategy of differentiation. Their "Ultimate Driving Machine" position has been used for nearly two decades and has been very successful over the years.

Teaching Note for Gateway: Searching for the Right Agency

Case Overview

This case examines Gateway, which is one major competitors in the personal computer industry, and its search to find the right advertising agency and positioning platform for the company. Gateway has switched advertising agencies six times from 1997 to 2003 and three times in a 14 month period from early 2002 to 2003. The case can be used with Chapter 3 as it expands on the discussion of Gateway's search for the right agency that is presented in IMC Perspective 3-3. In Chapter 3 we also discuss reasons why agencies lose clients and ways how they gain new accounts. The case provides an excellent opportunity to discuss reasons why Gateway has changed agencies so many times and the factors that have contributed to its agency switching. It also provides an opportunity to discuss the role of in-house agencies and the value of using an outside agency versus handling advertising internally. The case can also be used with Chapter 8 where we discuss creative strategy and how some companies are constantly searching for the right advertising campaign.

     The classroom discussion of this case can be enhanced by showing the series of Gateway commercials that are provided on the video provided in the instructor's supplement package that accompanies the text. Fourteen Gateway commercials appear on tape one including eight spots from the "People Rule" campaign developed by McCann-Erickson and six developed by Siltanen/Keehn during its brief tenure as Gateway's agency in 2001-2002. Three of the commercials develop by S/K are spots from the campaign featuring Ted Waitt and the talking cow who advises him on ways to entice customers to buy Gateway products. The other three commercials are stylish, product-focused ads including a comparative ad used to take on the highly successful Apple iMac personal computer. You should review these commercials and read the background information on them provided in the Instructor's Video Manual before teaching the case. You might also pay attention to advertising being run by Gateway at the time the case is being taught. Gateway print ads can often be found in PC enthusiasts magazines such as PC World, PC Magazine, Wired, and Computer World. Ads targeting business customers can be found in publications such as Fortune, Forbes, and BusinessWeek.

Discussion Questions

1. Analyze Gateway's decisions to change advertising agencies so many times over the past six years. Identify and discuss specific factors that may have led to each decision to change agencies.

   As noted in the IMC Perspective 3-3, some companies have long-lasting relationships with their advertising agencies while others change agencies more frequently. Decisions to switch agencies can be driven by a variety of factors including increases in the client's size, changes in the markets it serves, reorganizations that lead to changes in top management, changes in a company's marketing and/or marketing strategy, poor performance or service by the agency, and declining sales. A detailed list of reasons why agencies lose clients, along with a discussion of how agencies gain clients, is provided in Chapter 3 (pp. 90-93). A good way to approach this question is to consider what factors may have contributed to each agency change made by Gateway over the past six years.

        The first issue that should be discussed is Gateway's initial decision to hire an outside agency. As the case notes, up until 1993 Gateway relied solely on print advertising that was produced in-house. However, as the company grew rapidly, it decided to add television ads to the media mix and retain the services of an outside agency to work with its in-house advertising department. Some discussion should focus on Gateway's hiring of the Carmichael Lynch, Minneapolis and the company's need for an outside agency. It is very unlikely that Gateway's in-house advertising department had the ability to produce quality television commercials and the expertise of an outside agency was needed. As discussed on p. 76 of the text, companies may rely on an in-house advertising department initially, but often hire outside agencies as they grow and their advertising budgets and needs increase. Outside agencies usually have more highly skilled personnel such as creative talent and other marketing communication specialists and provide a broader perspective to companies than they might get from an in-house advertising department.

        Carmichael Lynch served as Gateway's agency for four years until Gateway decided to move its advertising to a larger global agency, D'Arcy Masius Benton & Bowles. The decision to hire DMB&B was made because Gateway wanted a larger agency with global capabilities that could help the company with its growing international business in Europe and Asia. This is an example of a situation where a client changes agencies because it feels a larger agency is needed to handle its business and, in this case, an agency that could handle its growing international business. The next agency change Gateway made the decision to drop DMB&B and take its advertising back in house, while using a small creative boutique, DiMassimo Brand Advertising, to handle its creative work for television advertising. The decision to drop DMB&B appears to have been the result of personality conflicts, a lack of rapport between agency personnel and Gateway's in-house advertising department, and dissatisfaction with the type of ads the agency was creating. As the case notes, Gateway CEO Ted Waitt is known for his dislike of traditional advertising that uses actors and scripted approaches and favors more unscripted, folksy ads with "real people." You might note that in addition to moving the advertising back in house and hiring DiMassimo, Waitt brought back Henry Corra to work on Gateway's advertising. This is a very good example of the important role personal relationships often play in agency decisions. Waitt has always been very fond of Corra and his creative style and a strong trust and personal relationship has developed between the two.

        The next agency change to discuss is the decision to move from DiMassimo Brand Advertising and once again hire another large outside agency, McCann Erickson Worldwide. This decision was made after Jeff Weitzen, a former AT&T executive, was brought in to run Gateway in early 1998 as Ted Waitt decided to step back from the day-to-day operations of the company. The decision to hire McCann appears to have been based on several factors including the preferences of Weitzen and other new top managers, as well as a change in Gateway's corporate strategy. Gateway had begun implementing its "beyond the box" strategy and transforming itself from a manufacturer of personal computers into a company that would derive its revenue from a variety of sources. Weitzen and other felt that new advertising was needed to help communicate this new strategy to the market.

        Many advertising and industry analysts felt that the "People Rule" campaign developed by McCann was a very good campaign and was successful in positioning Gateway as a customer friendly company. However, McCann Erickson's tenure ended after a management shake-up that resulted in Weitzen's resignation and Waitt resuming control of the company in January 2001. It should be noted that Gateway posted a financial loss in the fourth quarter of 2000 as its core PC business was not profitable. There are a number of factors that appear to have led to the decision to dismiss McCann Erickson including the management shake-up, the decline in profits, and Waitt's dislike for large agencies. The case also mentions that there was speculation that Gateway was dissatisfied with the level of service it was receiving from McCann after the agency had won the Microsoft account.

        After dropping McCann Erickson, Waitt decided to move Gateway's advertising back in house and once again rely on Henry Corra to direct its commercials as the company returned to the "You've got a friend in the business" tagline. However, during this period, the Siltanen/Keehn agency was working with Gateway on a project basis. The founders of S/K had worked on the Apple Computer account when they were with the TBWA/Chiat/Day agency in Los Angeles which meant that they had very good insight into the personal computer industry. This is a good example of how experience in a particular industry and reputation can be important factors in gaining new business. S/K also did some very good creative work for Gateway including the campaign featuring the commercials with Ted Waitt and the talking cow.

        The next agency change to discuss is the decision to drop S/K after only 10 months and hire the Arnell Group, New York. This decision appears to have been driven by the decision by Gateway to change its positioning and image from folksy to hip. The Arnell Group was known of its branding work with retail clients such as Banana Republic and was hired to help with the makeover of the Gateway Country stores as well as the advertising. Again, we see an example of how a change in strategy often results in a decision to change agencies. The final agency change made by Gateway was from the Arnell Group to Leo Burnett. A factor that may have played an important role in this decision was the fact that Gateway's new executive vice president of consumer marketing was a former Leo Burnett executive who was very familiar with the agency and the work it has done through the years with various clients. It might also be noted that Leo Burnett is based in Chicago and thus might be perceived by Ted Waitt as better able to identify with and understand the folksy, Midwestern culture of Gateway.

2. Discuss how Gateway's frequent agency switching has affected the company's branding and positioning efforts. What recommendations would you make to Gateway management regarding its agency switching and its impact on the company?

   Gateway's frequent agency switching has obviously affected the company's branding and positioning efforts, particularly more recently, as the changes have made it difficult to establish any continuity and consistency in its advertising. Over the past six years Gateway has used a number of tagline/campaign themes including the following;

   • "You've got a friend in the business ( 1994 to 1997)
   • "From South Dakota to the rescue" (1997)
   • "Let's talk about your Gateway" (1998)
   • "Yourware" (1999)
   • "Gateway@Work (business-to-business)" (1999)
   • "People rule" (2000/2001)
   • "You've got a friend in the business (2001)
   • "Gateway: A Better Way" (2002)
   • "The Comforts of Gateway" (2003)
   • "Humanology" (business-to-business) 2003

   As can be seen from this list, Gateway has used ten different advertising campaigns over the past six years and five since early 2001. Most of these taglines have lasted less than a year which has made it difficult for the company to establish a clear identity and image. You might ask students to discuss whether they feel there is a consistent theme running through all of the different taglines. As discussed in the case, Gateway has always tried to position itself as a company that assists its customers in understanding technology and how it can help them in their daily lives. This theme is reflected in the most recent business-to-business campaign which uses the "Humanology" tagline as the goal of this campaign is to transfer Gateway's approachable and helpful image to the business market.

        It should be noted that most of the recent changes in positioning themes have come about following a change in Gateway's overall corporate strategy. It is not surprising that the company would develop a new advertising tagline that might better represent its new strategic direction of trying to expand beyond personal computers and become more of a provider of a wide range of digital electronic products. However, it will be important for Gateway to settle on an advertising theme and stay with this tagline. Unfortunately, when companies are in Gateway's position and experiencing declining sales and profits, it is not unusual for them to keep changing their positioning and advertising in hopes of finding an approach that will strike a responsive chord with their customers. It is likely that Gateway will always strive to be a humanistic brand, holding true to its core philosophy that, no matter how much technology evolves in the future, it is of little value unless it can do something to improve the user's life today. The challenge facing Gateway is to find a way to deliver this message and stay with it long enough.

3. If you were an executive at an advertising agency and Gateway's decided to switch agencies again, would you advise your account development team to pursue the company's business? Why or why not?

   An interesting issue to discuss is why large agencies keep pitching Gateway when the company has a history of changing agencies so often. First, it should be noted that despite its recent problems, Gateway is still a very large company with sales of nearly $4 billion and is the third largest personal computer company in the U.S. Moreover, Gateway spends an estimated $150 million a year on advertising which makes it a very large account that will attract the interest of many agencies. Large Fortune 500 companies such as Gateway are very high profile accounts that are coveted by many advertising agencies. Most agencies are likely to view Gateway as a significant opportunity since the company still has a significant market share, a strong product line, and a viable business model as one of the two major direct sellers of personal computers and other electronic products. Gateway may be able to return to profitability as the economy rebounds and spending on personal computers and other electronic products by both businesses and consumers increases.

        Some agencies may be reluctant to pursue an account such as Gateway for several reasons, not the least of which is the company's track record of switching agencies so often. Agencies often invest a great deal of money to pitch a new client and become involved with them. A great deal of time, effort, and money is often spent by an agency when they take on a new client to become familiar with the company's industry, market segments, competition, its marketing strategy, and its customers. Primary and secondary research studies are often conducted which the agency bearing some of the cost of these studies. For a large account such as Gateway, additional personnel may be hired in various areas such as account management, creative, and other areas of the agency to service the account. Agencies view all of this as an investment that they can recoup over several years. If the client drops the agency after only a year or so, this may result in the agency losing money along with the opportunity costs of not pursuing some other account.

        Another issue agencies must consider is the tendency of Gateway CEO Ted Waitt to meddle with the company's advertising. As described in the case, Waitt is not considered to be a fan of traditional advertising and has played a major role in the decision to dismiss several of Gateway's agencies. Consideration must be given to whether Waitt's hands-on approach might interfere with an agency's ability to develop good advertising for Gateway. Moreover, even if the agency developed effective advertising, there is still the possibility that Gateway may still find it difficult to increase its sales and market share given the formidable competition the company faces from Dell and Hewlett Packard. This might result in a decision by Waitt and Gateway's top management to once again change agencies.

Teaching Note for War on Drugs: Using Advertising to Fight the War on Drugs: The Power of Social Marketing or a Waste of Money?

Case Overview

This case examines the advertising efforts that have been used by the Partnership for a Drug Free America (PDFA) for the past nearly 20 years, and more recently the U.S. government through the Office of National Drug Control Policy (ONDCP), to deal with the problem of illicit drug use. The PDFA consists of a coalition of advertising, marketing and media people, and has been conducting the largest public-service advertising and social marketing campaign in history with the goal of helping kids and teens avoid drug use by influencing their attitudes through persuasive information. In 1998 the U.S. government became involved in the use of advertising to fight the war on drugs when the U.S. Congress approved The Media Campaign Act of 1998 which directed the ONDCP to conduct a national media campaign for the purpose of reducing and preventing drug abuse among young people in the United States. As part of this legislation, the federal government allocated a billion dollars over a five year period for a mass-media based drug prevention campaign. However, after only a few years, the PDFA and ONDCP found themselves in a battle for control of the anti-drug advertising efforts over issues such as the type of ads that should be used, and whether monies should be allocated primarily to media advertising or to support a more broad-based integrated marketing communications program. Moreover, both organizations have had to deal with questions regarding the effectiveness of the anti-drug advertising campaign in reducing drug use and whether the government should continue to fund their efforts.

     This case can be used with Chapter 19 which deals with measuring the effectiveness of the promotional program, as well as with Chapter 22 which deals with social and ethical aspects of advertising and promotion. It should be noted that IMC Perspective 22-3 discusses the use of advertising to deal with the problem of drug use and the ONDCP's controversial campaign that linked drug use with terrorism. This case should be of interest to students as they have probably seen many of the anti-drug ads run by the PDFA and the ONDCP and can discuss whether they feel these messages have had any effect on them or their peers with regard to attitudes toward drug use or actual behavior. The classroom discussion of this case can be enhanced by showing some of the anti-drug ads created by the PDFA that are available on tape/CD-ROM four of the instructor's supplement package. The tape/CD contains 42 of the recent commercials developed by various ad agencies for the Partnership that address various drug problems such as the use of ecstasy, methamphetamines, marijuana and general drug abuse. Several of the print ads from the ONDCP's campaigns linking drug use with terrorism can be found in the set of acetates that are provided in the supplement package (T22-2 and 22-3). You might also encourage students to visit the web sites of the PDFA (www.drugfreeamerica.org) and the ONDCP (www.whitehousedrugpolicy.gov). The PDFA web site has a section containing many the Partnerships latest commercials by category including drug, agency, audience and medium. The ONDCP site has a Media Campaign section that contains the latest television and radio commercials as well as print ads.

Discussion Questions

1. Evaluate the creative strategy used by the Partnership for a Drug Free America in its advertising campaign, particularly with respect to the use of strong fear appeals.

   In the early years of the PFDA campaign, numerous agencies provided pro bono creative. Many of the messages attempted to employ strong fear appeals to "scare" the audience into not using drugs. Ads showing a rat eating cocaine until it died, or in which an analogy was drawn between using drugs and pointing a gun to one's head (a shot is heard at the very end of the commercial) along with others of this nature were commonly employed. In many of the cases, the commercials were not effective as viewers engaged in selective exposure by not watching, paid little attention to the ads or counter argued with them. As noted in the case, the ads were often exaggerated, distorted or misrepresented. The effective use of fear appeals, particularly those indicating physical harm, is often a difficult task to achieve. As noted in the text, some studies have demonstrated a curvilinear impact of fear, in which the message increases in effectiveness to a point, then decreases. In some of the early PFDA commercials, the appeals may have been too strong which limited their effectiveness.

        Research has also indicated that fear appeals are likely to work best with nonusers as opposed to users of drugs. Given that one of the goals of the campaign was to reach young people before they started using drugs, the use of fear appeals could be effective, as long as the level of fear is not too high. On the other hand, the likelihood of impacting users is lower. Some studies have demonstrated that more rational messages are likely to work than fear appeals, particularly with adolescents. Noting that this age group tends to be skeptical and even cynical, approaching them with a matter of fact approach might prove to be more useful than attempting to scare them. A good example of this skepticism was the famous ad "This is your brain on drugs" commercial which featured an adult frying an egg and drawing an analogy to frying one's brain. The commercial was parodied on TV shows, bumper stickers, and t-shirts and likely did more harm to the anti-drug cause than good.

        Later in the campaign, the appeals were considered by the drug czar John P. Walters to be too "soft" and "indirect". He argued that the anti-drug ads were ineffective and that the message had become diluted. Walters and the ONDCP called for stronger appeals and ads linking drug use to terrorism. The PDFA refused to produce spots that contained this message, so the ONDCP had them produced themselves. Reaction by teens to the terrorism linked spots would seem to favor the PDFA position. While 60% of those participating in the research said that if drug money went to support terrorism they would think about not using drugs, most of the feedback indicated that the commercials were an over reaction, a "typical adult overstatement", and insulting to them. As noted by one creative executive: "Kids told us, "I did not bomb the World Trade Center. I just smoked a joint at lunch." The research on fear appeals indicates that they must be used carefully and pre-tested prior to being used.

2. Discuss the market segmentation strategies used by the PDFA and ONDCP in the anti-drug campaigns. Which of these segmentation strategies would be most likely to be effective?

   As noted in the case, a number of segmentation bases have been used in the anti-drug advertising campaign of the PDFA and ONDCP. The segmentation strategy used most often is based on demographic variables, specifically age. Throughout the PFDA campaigns, specific messages have been developed for different age groups, ranging from the very young to adults. When the ONDCP became involved, segmentation took on an even more critical role, with socio-economic, ethnicity, and geographic factors being used. The research indicating the importance and value of reaching parents led to additional attention being placed on them as a segment as well. Another important segmentation strategy used in these campaigns is based on reaching drug users and nonusers. As noted earlier, responses to various types of appeals may differ depending upon whether the individual is using drugs. Users may be less rational and less receptive to the anti-drug messages than nonusers. The latter might internalize the anti-drug messages and view them as support for the decision that they have made not to use drugs.

        Segmentation on the basis of geographical criteria has also been employed. Many of the commercials developed appeared to target "inner city" or urban youth, particularly those involving appeals for hard drugs like crack cocaine. In the early days of the campaign there seemed to be a perception that only those living in the inner cities used drugs. However, studies have shown young people living in the suburbs, as well as rural areas are not immune from drug abuse. Depicting drug abuse as a problem limited to the inner cities could lead to a false sense of security for suburban and rural inhabitants, or a basis for denial that the problem exists where they live.

        Age is another important market segmentation base. Reaching children before they begin using drugs is an important goal of the campaign. Previous research has shown that the appeals have had different impact on various age groups. Earlier research provided by the PFDA indicated that the appeals were not working with well with 13-18 year olds and considered them the most difficult segment to reach. It is obvious that appeals must be developed for different age groups, as they will have different lifestyles, needs, and motives that may impact their likelihood of using drugs. Additionally, the distinction between appealing to kids and their parents is a critical one. For many children, their parents are their role models, and they are respected if not revered. As noted, many parents did not recognize that they still could make an impact on their children's decision to use drugs. Thus the development of advertising strategies to reach them as well as their children is a critical one.

        As noted toward the end of the case, the emphasis on targeting continues to change. First there was emphasis on youth and nonusers. Then the appeals targeted parents, with the belief that they could impact their children. By the end of 2003, there was again a shift back to focusing on youth. This switch lead to a change in creative as well as media strategy. There is also a lack of consistency in respect to the appeals based on the type of drugs used. Early ads focused on hard core drugs, then the campaigns addressed less addictive substances as well as marijuana and hard core drugs, and then again shifted back to a strong focus on marijuana. This lack of concentration over the years may be contributing to the perceived ineffectiveness of the program. Regardless of the segmentation strategy employed, it is obvious that an undifferentiated strategy is not going to be successful. It should also be noted that there are different media habits for the various segments as they will not all watch the same TV shows nor read the same magazines. The Internet has become a more important medium to some segments than others. Thus, the PDFA and ONDCP will need to continue to segment the market, understand these segments and determine the most effective way to reach them if they hope to be successful.

3. Much of the controversy surrounding the anti-drug advertising campaigns has involved the determination of the effectiveness of the ads. Evaluate the various approaches used to determine the effectiveness of the anti-drug ads. What types of measures should be used to evaluate the effectiveness of the campaign?

   Given the tremendous amount of money spent each year to develop and run the anti-drug advertisements, measuring the effectiveness of the campaign is essential. If the government is to continue to expend hundreds of millions of dollars on the anti-drug campaigns and advertising and media companies are going to continue to contribute their time and effort, they need to be sure that this money is being well spent. In addition, they need to know which program elements are working and which are not. Therefore, the issue is not whether there measures of effectiveness should be taken, but rather what these measures should be. What is interesting about this case is that the criteria used to measure the effectiveness of the campaign may not be in line with the objectives of the campaign. As noted, many of the objectives involved the changing of attitudes toward drug use by enhancing positive aspects of not using drugs and negative aspects of social use which ultimately would lead to behavioral change. Unfortunately, many of the bases for evaluation have involved a direct attempt to equate declines in drug usage to the campaigns themselves. For example, the last two studies cited in the case used effectiveness measures that included attitudinal and behavioral intention results, but then seemed to focus on the fact that drug had not decreased. As with other attempts to measure advertising effectiveness, it is extremely difficult to determine the direct impact of the ads on behavior. As is the case with product/service advertising, there are many other factors that will influence behavior. For products and services it may be price, availability, quality, competition and other factors. With respect to using drugs, other factors will also have an impact including peer pressure, availability, price, and characteristics of the user such as his or her self-esteem. Attempting to relate increases and decreases in drug use figures directly to the impact of the advertising campaigns is likely to be extremely difficult.

        Many of the studies also may have been influenced by the fact that they employ self-report measures. Asking respondents whether they saw and recall the ads may be valid measures, but attitudinal and/or behavioral measures may be impacted by socially desirable responses—particularly among adolescents. If you asked a teen their reaction or attitude toward an anti-drug ad, they will be inclined to overstate the amount of influence. If you asked them if they did drugs, or if the ads would make them less likely to do so, they may be unwilling to respond positively to the first question and negatively to the second. Thus, the survey results may be distorted.

        Perhaps the greatest value of the research used to measure effectiveness would be an attempt to assess recall of the messages and assign a value to the appeals themselves. In this way, some communications measures of the impact of the campaigns would be taken, with the information useful in developing future commercials. This information might also be useful for determining the relative effectiveness of media placements, if it could be determined where these commercials and ads were seen or heard. However, equating the effectiveness of the campaign to increases or decreases in the use of drugs may be too much to ask.

4. Discuss the merits of using an integrated marketing communications program that encompasses a variety of communication tools to prevent drug use versus an approach that relies primarily on media advertising.

        One of the basic premises of IMC is that the various marketing communication tools offer different advantages and disadvantages and that the utilization of an integrated approach will lead to a more effective and cost efficient communications program. This is likely to be the case for the war on drugs, though many of those involved in the PDFA might disagree. However, the anti-drug campaign may benefit from the use of a variety of IMC tools to deliver the message regarding the dangers of using drugs. However, the requirement that as much as 80% of the budget be spent on media does not support the use of an IMC approach. As noted by Richard Earle, the use of an integrated campaign designed to drive viewers to the websites of the PDFA and/or ONDCP offers great potential. As noted in the text, a number of companies and organizations have used this strategy such as the U.S Army, Nike, Mazda, and many others.

        The PDFA and ONDCP would best be advised to consider a combination of mass media and other IMC tools to achieve their communication goals. A problem that might hinder the use of a more integrated campaign could be the ability to measure its effectiveness. It is very difficult to measure the effectiveness of media advertising and adding more communication tools to the mix may make it even more difficult to do so. However, the fact that an integrated approach may complicate the measurement of effectiveness, does not mean it should be abandoned. In the case, it is mentioned that the Allen Rosenshine, vice chairman of the PDFA, criticized the integrated marketing communications effort, noting that it is too complex and that establishing 19 communications objectives complicated things. He argued for an effort in which advertising and message repetition is the core of the strategy, thus simplifying the process. However, it has been noted by advertising industry journalists that that Mr. Rosenshine's advertising agency, BBDO Worldwide, has used IMC programs for many of its clients. An additional consideration in whether the PDFA should move to more of an integrated approach is where the support for this effort will come from. The PFDA relies heavily on with pro bono work and media support which is donated by the advertising agencies and media companies. A factor to consider in the allocation mix is the impact that the shifting of the emphasis of the campaign to other IMC tools such as direct media or the Internet might have on the pro bono support the PDFA receives.

5. Evaluate the advertising campaign developed by Ogilvy & Mather for the ONDCP linking drug use with terrorism. Do you think these ads were an effective way of changing the attitudes and behavior of young people with regard to the use of drugs? Why or why not?

   The goal of the drugs-and-terror campaign developed for and sponsored by the ONDCP was to link drug use with the support of terrorism by suggesting that illegal drug sales are a major source of money for terrorists. The ads implied that the weapons and other supplies used by terrorists were paid for by the money they get from drug sales. The idea behind the campaign was that people would be less likely to use illegal drugs if they understood that by using them they might be supporting terrorism. The campaign was launched five months after the September 11, 2001 terrorist attacks and was designed to capitalize on the public's outrage over the terrorist attack as part of the effort to fight drug abuse in the United States. A second part of the campaign was designed to refute the notion that illegal drug use is a victimless crime and shifted the focus from terrorism to personal harm with ads suggesting that the purchase of drugs supported drug-cartel attacks on innocent people.

        The campaign was very controversial and was criticized by many different groups. Some were critical of the government's effort to draw a connection between drug money and terrorism, arguing that it was not fair to blame nonviolent drug users for the actions of terrorists or drug cartels. Other groups such as the National Organization for Marijuana Legalization argued that the campaign created a false impression that terrorism is caused by drugs rather than the illegality of drugs. Groups such as NORML argued that legalization of some drugs is the answer to the problem rather than trying to discourage drug use. The Partnership for a Drug-Free America was also opposed to the campaign, as it did not agree with the strategy behind the ads. The Partnership feels that the best way to deal with the problem is to promote drug resistance techniques, positive alternatives to drug use and parental involvement.

        The ONDCP decided to stop running the controversial campaign in May of 2003. The reason given for the decision was that the campaign put the ONDCP in a battle with the PDFA since the ads were produced outside of the Partnership by the drug office's agency, Ogilvy & Mather. The ONDCP wanted to present a more united front with the Partnership to Congress which has to vote to extend the anti-drug campaign. The drug office announced that it would be directing more of its money toward youth-oriented media and focus its effort on halting drug use among kids rather than trying to deter them from starting to use drugs.

6. Evaluate the merits of the anti-drug advertising campaign from a social perspective. Should the government be involved in this effort or is the PDFA the more appropriate organization?

   It is unlikely that anyone would challenge the goal of the anti-drug campaigns of the PDFA and ONDCP as drug use among young people is a major societal problem. As noted in the case, the original founders of the PFDA had no political agenda, and established the organization with truly altruistic goals in mind. The fact that the original concept was based on pro bono work and contributions speaks even more to the intentions of the founders and participants. The work of the PDFA over the past two decades is often recognized as an example of an effective cause-related marketing campaign and how advertising can be used to deal with a social problem. However, many experts feel that the involvement by the ONDCP altered the landscape in the use of advertising to fight the war on drugs. Critics argued that government involvement politicized the effort and interfered with the efforts of the PDFA. In addition, many disagreed with the use of tax dollars to fund the anti-drug campaign arguing that it was not really a good investment of government funds.

        Perhaps the biggest concern is that of direct involvement of the federal government. The PFDA consists of practitioners in the advertising and media industries and the campaign is an extension of their expertise to a worthy cause. It entails the use of advertising which is what they do day-to-day and they are good at it. Government officials are not likely to be as knowledgeable of advertising and media strategy as those who work in these industries. The case notes the fact that the marriage between the PDFA and ONDCP was not a happy one and one might speculate as to the reasons why and who was to blame. Nevertheless, an adversarial relationship has developed that is likely to be counterproductive unless steps are taken to address the problems between the two organizations.

        Another factor to consider is the actual amount of government money being allocated to the campaign. One might argue that so long as the creative and media time is being provided on a pro bono basis, the effort is worthwhile as there is no direct cost to the taxpayer. However, when tax dollars are being spent to run the ads, accountability becomes much more of an issue. People want to know where their tax dollars are being spent and if it is a worthwhile use of these monies. Thus, there will be more pressure to produce positive results to demonstrate the value of the investment. The war on drugs is not the first time that advertising has bee used to address a social problem, nor is it likely to be the last. Drug use among young people is a major problem in the United States and that steps must be taken to remedy the situation. The best way to do this may yet to be determined, but advertising and other IMC tools can be of value in this ongoing battle.

Teaching Note Benetton Group: Evolution of Communication Strategy

Case Overview

This case examines the controversial "shock advertising" campaign that was used by Benetton, the Italian-based clothing manufacturer and retailer for nearly two decades. Thanks to its unusual communication strategy, the Benetton Group is one of the most visible specialty retailers in the world. Benetton has used some very controversial images in its communication campaigns. Masterminded by Benetton's creative director and photographer Oliviero Toscani, the shock ads generated both criticism and accolades throughout the world. However, in 2000 Toscani went too far when he created the controversial "We, on Death Row" campaign which featured ads showing piercing pictures of death row inmates along with their names and date they were to be executed. The criticism surrounding this campaign was so intense that Toscani was forced to resign. Under the new creative director James Mollison, Benetton began using more traditional product-based advertising. This case examines Benetton's unique communication philosophy and the controversy generated by it. The case can be used as a basis for a lively discussion on the use of shock advertising as well as ethics in advertising.

     Benetton has always been well known for its colorful and provocative advertisements. The company employs unusual, controversial advertising techniques and themes that use "shock value" and powerful images to grab viewers' attention. Unlike most advertisements which center on a company's product or image, Benetton's advertising campaigns have focused on social and political issues such as racial integration, AIDS awareness, war, poverty, child labor, death, hunger, and pollution. Many of the these ads evoked controversy as critics have argued that the real goal of the shock ads has been to generate publicity for Benetton and the some have criticized the company for exploiting human suffering to sell its products. Following the controversy surrounding the "We, On Death Row" ads, Benetton realized that it had crossed even the boundaries of unconventional advertising. Various surveys suggested that some loyal customers had been put off by this campaign and some retailers refused to carry the company's products.

     This case can be used with Chapter 22 which deals with social, ethical and economic aspects of advertising. This chapter includes a discussion of ethical issues of advertising and promotion and notes how companies such as Calvin Klein, Abercrombie & Fitch, and Benetton have received a great deal of criticism for their use of "shock ads" containing controversial images. The case can also be used with either Chapters 8 or 9 which deal with creative strategy. Benetton has used the shock ads to position the company as a cutting-edge, socially conscious marketer. Many students will be familiar with Benetton and its controversial ads as they are part of the company's primary target market. Thus, the case should generate a lively discussion as to what Benetton's was trying to accomplish with the ads, whether they had pushed the envelope too far with the death row campaign and whether the use of more conventional, product-focused advertising will be successful.

Discussion Questions

1. What are the basic objectives of advertising? What are the advertising objectives of Benetton?

   Advertising may be used to achieve a variety of objectives including building awareness of the brand and/or company, informing customers about the product/service or company, providing information and developing an image Additional objectives include creating favorable attitudes and preferences for a brand, persuading the target audience to switch brands, and encouraging them to try new products. Advertising may also used to maintain top-of-mind awareness of a brand and/or company.

        The objectives of Benetton's advertising appear to differ from those discussed above. Benetton's shock advertising did not focus on the company or its products, choosing instead to address socially relevant issues that might concern the global audience such as war, poverty, AIDS, discrimination and the death penalty. Benetton believed that its advertisements could project the company as a supporter of social causes and that its customers would highly value that stance. Of course many would argue that while Benetton's goal was to use the ads to position itself as a socially conscious company, the ultimate objective was to use this image to help generate sales of its products.

2. Discuss the pros and cons of the shock advertising campaign that Benetton used for many years.

   There are few companies in the world that enjoy the global brand recognition of Benetton. The unconventional shock advertisements used in this campaign evoked strong feelings among consumers and helped the company attract attention and generate publicity. One of Toscani's quotes is appropriate here: "Most good ads are forgotten after six months, but who still remembers the Benetton ad with the priest kissing the nun? Ten years later and people remember! That's immortality!" Benetton has always had an image as somewhat of a renegade in the advertising community because of the avant-garde approaches the company has used. However, the company is also known for being very socially concerned and trying to make consumers realize the realities of the world in which they live. Benetton's goal with the shock advertising campaign was to raise public awareness of social issues and position the company as a cutting-edge, socially conscious marketer. However, one might argue that the ultimate goal of the campaign was to help the company sell more of its products. The controversy surrounding the various shock ads that Benetton used over the past two decades generated a tremendous amount of publicity and made many consumers aware of the company. Also, it is important to note that Benetton's primary target market is teens and young adults who are likely to be more tolerant of the shock ads as they may identify with the issues and causes the company is raising in these ads. Thus, the campaign might have actually helped Benetton's image and sales.

        There are also a number of negative aspects to the Benetton shock ads. Many critics argued that Benetton was exploiting human suffering to sell its products and felt that the company used the ads to create controversy and generate publicity rather than to address social issues. One might question whether the type of publicity Benetton was getting from its shock ads was really beneficial to the company. The Benetton ads were controversial even in more liberal European countries, and advertising self-regulatory bodies in Britain, France, and Spain condemned some of the ads and urged magazines to reject them. As long as the advertisements were just unconventional in nature, Benetton's image was enhanced and sales grew. However, when Toscani resorted to using "shock techniques" from 1991 onwards with the pictures of a priest and nun kissing, a baby with uncut umbilical cord, etc., it generated huge furor among religious and social groups, not to mention the advertising regulatory bodies in various countries. Toscani argued that the company's intentions were misunderstood by the public. While many thought the kiss to be inappropriate and the uncut umbilical cord to be disgusting, the position of the company was that all that was meant was to demonstrate love and motherhood. Unfortunately for Benetton, many countries banned the two ads. Another ad which created problems due to its intensity was the scene of a dying AIDS victim. The ad angered many viewers because they thought Benetton exploited the man's suffering and intentionally made him look like Jesus Christ.

3. Oliviero Toscani has defended Benetton's use of shock advertising by noting that it constitutes nothing less than a debate between advertising and art. He argues that potentially offensive images are acceptable in the world of art and journalism while in other realms such as advertising they are not. Do you agree with Toscani's position?

   The position taken by Oliver Toscani, Benetton's former creative director, is that advertising should be free from any type of censorship or scrutiny since it is often a form of art. When viewing advertising as art it becomes difficult to say where one ends and the other begins. If one views the Benetton ads as a form of art, this suggests that there should be a wide tolerance for the types of images used. The statement by Toscani which is shown at the beginning of the case summarizes his position very well:

   When Life magazine makes a cover about war, it makes the cover to inform, but also to sell the magazine and to sell the advertising pages inside the magazine -- Chivas Regal and all the others. So Time magazine and all the others make a cover to inform and to sell. To do what I do, I do that to sell but also to inform. And as soon as you inform, people point a finger at you and say, "You are exploiting!" No. It's the people who don't even inform [who are exploiting]. I don't care about the rejection; I'm not afraid to be rejected. Actually, it's a big honor in this world.

   There are other examples which support Toscani's argument. For example, the December 22, 2003 issue of Time Magazine featured the Year in Pictures 2003 and showed disturbing images of the Iraq and Afghan war injured and dead -- not very different from Toscani's image of the bloodied uniform of the Bosnian soldier shown in one of the Benetton ads. Ethical or moral standards are very subjective and relative as evident from reactions to the Benetton ads showing an image of a priest and nun kissing. While this ad was banned in Italy, it won the Eurobest Award in Britain.

        Some people question Toscani's position, however, and argue that advertising is intrusive in nature and the public cannot decide what ads they will be exposed to in a medium. Advertising must often respond to a different set of standards since consumers often have no way of controlling their exposure to the images used in advertising and these images are often offensive to many people. Benetton has taken a novel approach and people are likely to disagree as to whether the ads are unethical. However, as noted discussed in question five, Benetton may have gone too far with the "We, on Death Row" campaign. The surviving family members of those killed by the inmates shown in the death row campaign were very offended by the ads and opposed to the idea of having the killers lionized in the national media. However, there were also those who feel that capital punishment is inhumane and praised Toscani's effort to increase awareness of the issue.

4. Can you think of any other companies that use shock advertising? For what type of companies might this type of advertising be effective?

   Calvin Klein and Benetton are the two companies that are probably best known for using shock ads although there are a number of other companies that have used the technique. Calvin Klein has been using shock ads for nearly two decades and built the company and brand by tapping into both the charge and the cultural unease surrounding youthful sexuality. The company's controversial ads have explored the taboo of youthful sexuality and appeal to the independent spirit of young people. Calvin Klein was willing to accept the controversy that accompanies its ads because the scandal and sex appeal surrounding them help differentiate CK products. It also helped generated hundreds of millions of dollars worth of free publicity. Like Benetton, CK handles its advertising in-house which means that an agency does not have to become involved with the negative publicity and controversy surrounding their shock ads. However, Calvin Klein also found that there is a limit to how far they could push could push the envelope with their advertising. Many retailers rebelled against the Calvin Klein ads featuring childlike models in provocative poses which was referred to as "kiddie porn" by many critics. Irate consumer groups also called for boycotts and threatened to picket stores carrying the brand.

        Another company that has used shock ads is FCUK (French Connection UK) who has been criticized for what many perceive as pornographic images in its campaigns. As discussed in Chapter 22 of the text, clothing retailer Abercrombie & Fitch has also been criticized for using shock techniques its ads as well as in other promotional materials such as its quarterly catalog. It should be noted that all of these companies are involved in the fashion industry and their primary target market consists of young people. Younger consumers are less likely to perceive shock ads as offensive or in bad taste and may even help create favorable attitudes toward these companies because of their edgy, rebellious tone.

        While other companies have used shock ads, Benetton's use of the advertising genre is unique. While the ads of Calvin Klein and FCUK are meant to differentiate these brands and increase sales, Benetton's goal (at least according to Toscanni) was to raise the public's awareness and make them more conscience of important social issues. Few companies are brave enough to experiment to such a degree with their advertising. One exception is Egg Banking, a United Kingdom based online financial services group that has used campaigns based on stereotyping of men, women and certain ethnic groups. One advertisement shows a dark-skinned man in an orange string bikini that revealed the outlines of his small sex organ. The caption reads, 'Black men are well endowed.' Another ad shows a blonde woman studying a modern painting as the brunette next to her studies an exit sign. The caption reads, "Blondes have nothing in their heads." However, while some consumers in the UK have viewed the ads as humorous, other have been offended by them and have protested.

5. Do you agree with Benetton's decision to drop the use of shock ads and return to the use of more conventional ads?

   Benetton appears to have pushed the envelope too far with the "We, On Death Row" campaign as the ads generated very negative reactions and there were strong repercussions as a result. Families of the victims objected strongly to the campaign and accused Benetton of glamorizing murderers while ignoring the crimes they had committed. The state of Missouri filed a lawsuit arguing that it had been misled regarding the use of the photos. The lawsuit was settled in June 2001 when Benetton agreed to write letters of apology and to donate $50,000 to the Missouri Crime Victims Compensation Fund. In the US, retailer Sears canceled an exclusive $100 million contract to sell a line of Benetton clothes, calling the death row images "terribly insensitive." Sears ended its contract even after Benetton agreed to allow the retailer to preview future ads. Toscani believed that the sharp criticism in the US was not justified as many countries in Europe had more already banned the death penalty. However, as a result of the increasing furor, Toscani resigned in May 2000. He was replaced by James Mollison, a graduate of Fabrica, Benetton's cultural research and development center that backs young artists from all over the world.

        In 2001 Benetton began running a new campaign featuring product-focused ads that ran in print and on TV and billboards. The ads showed exuberant teen models clad in Benetton sweaters and jackets against a crisp white background and were designed to convey a sense of freedom and a positive, dynamic expression of the Benetton style. The impact of Benetton reverting back to more conventional advertising is yet to be determined, although given the way Benetton had built its brand image under Toscani, this approach does appear rather conservative. As noted in the case, Toscani dismissed the more conventional ads as a "waste of money." In some countries such as Britain they were panned as "so innocuous as to be invisible." Benetton may be able to capture the customer's attention and interest with more conventional ads focusing on young people wearing its colorful clothing and emphasizing product qualities and perceived value. While these types of ads may not generate as much attention and interest as the shock ads, they may be effective in shifting attention to Benetton's products and image as a retailer rather than as a social crusader.

        Rather than moving solely into product based advertising after Toscani's exit, the company could still continue to address social issues like war, poverty, education, child labor and exploitation and the like but with less controversial ads. In fact, Benetton indicated that it would not be completely abandoning its social issues messages and planned to run ads speaking to the refugee issue. The subject is very important to James Mollison who wrote a book on Kosovan refugees in conjunction with the United Nation's High Commission for Refugees as well as an earlier book on foreign workers in the factories of northeast Italy. In 2003 Benetton began a social issues campaign dealing with the problem of hunger that exists in many countries and promoting its work with the World Food Program. The "Food for..." campaign consists of ads promoting the important role the availability of food plays in relations to issues such as education, work, peace, and life. Examples of messages from this campaign, as well as other Benetton ads, can be found on the company's web site at www.benetton.com.