Bates takes the cake

Without the tireless efforts of Bates Canada, would the youth of this nation enjoy the same minty-fresh breath? This we'll never know with absolute certainty. What we can safely say, however, is that the media folk at Bates know how to...

Without the tireless efforts of Bates Canada, would the youth of this nation enjoy the same minty-fresh breath?

This we’ll never know with absolute certainty. What we can safely say, however, is that the media folk at Bates know how to spread the word about gum. Witness their work on behalf of the MaxAir and Dentyne Ice brands – the campaigns that took first and second place, respectively, in Strategy’s fourth annual Best Media Plan competition.

These two plans earned the highest overall scores from our 13-member panel of judges. The Media Edge – winner of our 1999 competition – took third place, for the orchestration of last summer’s Kool-Aid campaign.

The MaxAir plan claimed Best Plan for a Budget of More Than $1 Million, while Dentyne Ice topped the Less Than $1 Million category. The two also finished first and second in Best Use of Television and Best Use of Interactive Media. And Dentyne won Best Use of Radio honours, in addition to coming third in the Newspaper category.

Both plans are showcased in this report, along with those others that received outstanding marks from the judging panel.

Strategy launched this competition in 1997 with the goal of giving greater recognition to the high quality of thinking that goes into the development of Canada’s media plans – and encouraging greater respect, particularly in the client community, for the creativity and skills of media professionals.

Granted, media is no longer perceived as a dreary back-office function. Indeed, with audiences growing ever more fragmented, it is now generally acknowledged that media planning demands the same combination of insight and intuition as creative development. Still, to many marketers, the field remains something of a mystery. Anyone, after all, can see where advertising is placed. But an understanding of how plans are conceived is much rarer outside the media community. Though this competition, we hope to assist in changing that.

Strategy asked agency media departments and independent media companies across Canada to review all of their plans that appeared in the marketplace during calendar 1999, and to submit the best of those for consideration.

We instructed them to prepare a summary for each, describing the plan in detail and outlining the results. We were not looking for charts and graphs or reams of numbers, we explained, but rather trying to get at the quality of the thinking behind the plans: What were the objectives and challenges, as presented by the client, and how were these addressed strategically and creatively?

The judges – all of them senior media professionals – were asked to assign each submission a score from 0 to 10. (Judges were not given media plan submissions for clients with which they compete directly.) Their judgments were made on the basis of: the quality and originality of the strategy and the communications insight on which it was based; the creativity and originality of the media solution; and the plan’s effectiveness as evidenced by sales results or tracking studies.

The winning plans are featured on pages BMP3-BMP40. A full list of the winners in all categories can be found below.

The Winners

The following are the winning plans in Strategy’s 2000 media competition, listed by client/brand and agency/media company.

Best Plan Overall

Winner: MaxAir/Bates Canada

Runner-up: Dentyne Ice/Bates Canada

Second Runner-up: Kool-Aid/The Media Edge

Best Plan for a Budget of More Than $1 Million

Winner: MaxAir/Bates Canada

Runner-up: Kool-Aid/The Media Edge

Second Runner-up: Philips Electronics/MediaVest Worldwide

Best Plan for a Budget of Less Than $1 Million

Winner: Dentyne Ice/Bates Canada

Runner-up: Panasonic Power Activator Batteries/Palmer Jarvis DDB

Second Runner-up: Aussie Hair Care/OMD Canada

Best Use of Television

Winner: MaxAir/Bates Canada

Runner-up: Dentyne Ice/Bates Canada

Second Runner-up: Clairol Natural Instincts/OMD Canada

Best Use of Radio

Winner: Dentyne Ice/Bates Canada

Runner-up: Toronto Blue Jays/MediaVest Worldwide

Best Use of Newspaper

Winner: Minute Maid/Starcom Worldwide

Runner-up: Canada

Second Runner-up: Dentyne Ice/Bates Canada

Best Use of Magazine

Winner: Aussie Hair Care/OMD Canada

Runner-up: Campbell Soup Classics/OMD Canada

Second Runner-up: Scotiabank/OMD Canada

Best Use of Out-of-Home

Winner: Kool-Aid/The Media Edge

Runner-up: Panasonic Power Activator Batteries/Palmer Jarvis DDB

Second Runner-up: (Tie) Western Union International/MediaVest Worldwide; Clearnet PCS/Media Experts

Best Use of Interactive Media

Winner: MaxAir/Bates Canada

Runner-up: Dentyne Ice/Bates Canada

Also in this report:

* MaxAir fires on all cylinders: Multi-tiered plan for high-menthol gum was imbued with irreverence p.BMP3

* Dentyne Ice kisses up to teens with party promo: Initiative was designed to drive both brand awareness and sales p.BMP4

* Kool-Aid placement reflected fun, refreshment p.BMP6

* Aussie creates ‘in your face’ presence: Repositions brand as funky, outrageous p.BMP8

* Guerrilla tactics get Panasonic noticed: Campaign used underground channels to reach club crowd p.BMP10

* Much VJ follows his Natural Instincts on air p.BMP12

* Chapters stands out in dot-com crowd p.BMP15

* Campbell’s cooks up targeted advertorial: Partners with CTV, magazines to create a presence beyond traditional ad buy p.BMP16

* Looking at Philips through fresh eyes: Redefinition of target market sparked departure from the traditional choice of television p.BMP18

* Jays plan hits home run p.BMP21

* Minute Maid aims for morning ownership p.BMP24

* Western Union a global Villager p.BMP28

* Scotiabank breaks out of the mold p.BMP32

* Clearnet clusters creative: Complementary boards were positioned in proximity to one another to maximize visibility, engage consumer p.BMP38

* The Judges p.BMP43

Kraft Heinz beats the street, but reports slight sales slide

The company's Q2 net sales, while down slightly, reveal continued demand for snacks and pre-packaged meals.
Kraft Heinz

Kraft Heinz is reporting earnings of 78 cents a share, beating Wall Street’s estimate of 72 cents a share, thanks to continued demand for snacks and pre-packaged meals. However, the company also reported a net sales decline of 0.5% compared with the same period last year, to $6.6 billion, according to its latest Q2 earnings report, released Tuesday.

The company experienced a favourable 2.3 percentage point impact from currency and a negative 0.7 percentage point impact from its February divestiture of Hormel Foods – including the Planters peanut brand – which closed in the second quarter of 2021.

Its cheese divestiture – which included the sale of its natural cheese division to Lactalis – is expected to close in the second half of 2021, says Kraft Heinz Global CEO Miguel Patricio in this morning’s conference call.

Adjusted EBITDA slumped 5.2% versus the year-ago period to $1.7 billion and increased 6.6% versus the comparable 2019 period. Higher transportation and inflation-related goods costs continue to affect the company’s bottom line.

Kraft Heinz’ organic net sales declined 3.6% in Canada over the last three months compared with a comparable period last year, this as total net sales rose 8.8% year over year. 

However, its overall organic net sales slipped 2.1% compared with 2020 figures. This includes the negative impact stemming from exiting its McCafé licensing agreement. However, this decline was partly offset, Kraft Heinz reports, by “partial recovery in foodservice channels and retail consumption trends.”

“Food service is recovering, and recovering fast,” Patricio stressed in today’s earnings call. He said “the bet to support QSR” early in the pandemic, with individual packets of ketchups and sauces, is paying off.

Channel trends are still normalizing, he warns, and it’s too early to see how at home or away from home, will net out. “We have big ambitions for away from home business,” he said. Consumers continue to evolve how they eat, with Patricio saying that Kraft Heinz is collaborating with a popular DTC brand for its Philadelphia cream cheese.

Accrued marketing costs, the company reports, rose to $968 million from $946 million in December 2020.

“We are investing more in our brands, and better as well, building a much more creative company,” Patricio reported.

Kraft Heinz is also strengthening and diversifying its media presence, he said, driving repeat rates for those discovering and rediscovering the brand. Patricio added that the company is continuing to drive its transformation program forward, modernizing its brands and better connecting with its consumers.