'Fast Five,' 'Thor,' 'Transformers' Mark Return of Summer-Movie Auto Tie-Ins

'Thor' Brings First Entertainment Marketing Program from Honda Motor Co.'s Acura

This weekend's blockbuster release of Universal's "Fast Five" didn't just mark the return of the box office, it also reignited another temporarily dormant summer-movie staple: automotive marketing tie-ins.

"Fast Five," which took in over $83.6 million for the year's most successful opening to date, was supported by a hefty marketing campaign from Chrysler's Dodge brand. Dodge has been featured in all five films in the "Fast & Furious" franchise via product placement but "Fast Five" marked the brand's first formal marketing relationship with the series, part of a larger marketing effort to support the launch of its 2011 Dodge Charger. A series of TV ads from Wieden & Kennedy, titled "Car Chases Make Movies Better," got major exposure during the NCAA Final Four championship on CBS, while Dodge also helped sponsor the film's premiere in Rio De Janiero and a "Fast Five"-branded Charger that made its debut at NASCAR's Martinville Speedway on April 3.

The auto-marketing trend continues this coming weekend with the release of Paramount and Marvel Entertainment's "Thor," which marks the first-ever entertainment marketing program from Honda Motor Co.'s Acura. Multiple Acura vehicles are featured in the film itself as the official cars of S.H.I.E.L.D., Marvel's famed peace-keeping organization, with the Acura TL receiving star treatment in a series of co-branded TV spots from agency RP&, a division of Santa Monica, Calif.-based Rubin Postaer & Associates.

And later this summer sees the release of Paramount's "Transformers: Dark Of The Moon," with General Motors returning as the film's automotive partner in support of the Chevy Camaro. A teaser spot aired during this year's Super Bowl, with a media blitz expected to hit closer to the film's July 1 release date. General Motors recently switched its talent-agency representation from William Morris Endeavor Entertainment to Creative Artists Agency as part of its effort to reinvigorate its Hollywood marketing opportunities, as a GM spokeswoman confirmed exclusively to Ad Age.

Year-to-date car sales have increased 17.9% as of April 1, according to MotorIntelligence.com, and the broader economic rebound has already brought automotive spending back in a big way to live sporting events like the Super Bowl and the NCAA basketball tournament.

But the Hollywood comeback took a little bit longer to take shape, since automotive partnerships for tentpole movies are often negotiated 12 to 18 months in advance to secure in-film placement and make sure the script and production adhere to the vehicle's specific features. That takes a considerable amount of commitment on the auto brand's part.

"You can never predict what's gong to happen a year in advance," said Susie Rossick, brand manager of Acura's national advertising group. "You need to have the ability to jump on board and say this is a risk worth taking. We want to be part of it."

"It's another great vehicle, another way to get people engaged with your car with your brand," Ms. Rossick added. "Sometimes traditional media doesn't have that ability. This gives you the ability to do whatever you want, however you want to engage consumers back with the brand."

Timing is crucial, too. "Every car company is looking for that ultimate confluence of car launch and movie launch at the same time," said Stephanie Sperber, president of Universal Pictures' partnerships and licensing. "Integrations are always an interesting option for car companies. They will often support a film without any integration, but ['Fast Five'] is so incredible in the showcase it provides -- you get to see the car doing really cool things. It's the best of the best in terms of showcasing really great car moments."

Ralph Gilles, CEO of Chrysler Group LLC and Dodge brand president, told Ad Age via email that Dodge has launched six new or improved vehicles in the 2011 model year and is constantly looking for effective sponsorship opportunities, whether it's the brand's support of "Fast Five," the Challenged Athletes Foundation, Super Cross or NASCAR, among others.

"The 'Fast Five' premiere fit perfectly with the new Charger's introduction into the marketplace," Mr. Gilles said. "It's an excellent opportunity to showcase our brand's flagship sedan in a very organic way in a great movie that has a huge fan base. Continuing to create awareness about the Dodge brand and its products in a unique and engaging manner is definitely a priority."
 
July's release of "Captain America: The First Avenger" will also be accompanied by a to-be-named automotive partner, according to Bob Sabouni, exec VP-worldwide marketing partnerships at Marvel Entertainment, further evidence that comic-book properties have become a new go-to for auto brands a la Audi and the 'Iron Man' films.

"At our core competency, we are the perfect partner for a car company," Mr. Sabouni said. "We're about creating summer tentpole movies with lots of action and action lends itself to great car partnerships. We've been fortunate to have great partners. The partnership has to be holistic and organic to the storytelling and not ever curb that process."

Auto Dealers - Meeting New Marketing Challenges

In the past decade, the world of automotive marketing has experienced a drastic change in complexion. Several factors have led to the fundamental re-thinking of traditional marketing methods. These included increased competition, mega-mergers, fragmented audiences and new media-all combined for declining margins.

The result has been a shift in focus, placing greater emphasis on direct involvement with the end consumer, media partnerships, improved accountability and better customer relations.

Dealers who still advertise by the spray and pray method are left scratching their collective heads and watching their market share drop while their bottom line goes up.

Today’s market leaders are adopting a more strategic approach that reflects their multi-million dollar business plan and sales goals-a detailed road map of how they are going to hit annual numbers. Once they establish an annual plan, they back it down with a quarterly focus and monthly tactics. This is reviewed weekly with their agency and evaluated on a monthly basis-course adjustments are made as necessary.

In today’s marketing warfare, it is not about how much money you spend- it is about selling more cars—everyday. Top dealers know this and they are experts in managing the processes-marketing is just one of the processes.

Ask yourself: How many cars are you going to sell this year, this quarter, this month? Do you have a marketing plan that reflects your sales goals? Do you have specific tactics to implement your strategy? Does your creative talk to your customer with their best interest in mind and have a compelling offer to come do business with you today? Is your branding and offer consistent throughout all your marketing efforts?

If you can’t answer yes to all of these questions, don’t worry- you are not alone. There is a simple approach you can adopt to manage the marketing processes more efficiently.

Start by hiring an advertising agency that has a deep bench of automotive experience. An agency with a variety of automotive clients is more exposed to best practices and creative ideas. An automotive agency won’t ask you how much your budget is, rather how many cars you think you can sell. They will dig deep in your sales tower and BDC finding out about your sales team, management, floor plan (new and used) and lease penetration. They will want zip code analysis and customer profiles. They should think differently, plan meticulously, and evaluate a custom approach.

Be prepared to provide them with historical sales numbers, sales forecasts, investment criteria, seasonal pushes and fixed marketing expenses. Provide them a direct line of communication to decision makers in all departments. This will allow the agency to analyze the entire marketing mix against set criteria and develop a strategy that reflects your dealerships goals-not an off-the-shelf media and creative campaign that worked in another market.

This strategic approach allows the dealer and the agency to utilize all the disciplines of marketing (television, radio, print, direct mail, outdoor, Internet, customer database, in-store promotions, community events, cross-promotions, etc.) and construct a through-the-line consistent campaign. The end result is that the dealer and the agency work together to build consistent and seamless marketing bridges that all combine to complete the link between buyer and seller.

Therefore, with consistent and seamless marketing bridges you will have adopted a more strategic approach that efficiently achieves your sales goals and reduces your bottom line. Clear direction goes a long way when building a road map to selling more cars.

Thomas Hensey   

Prison Not Most Cost-Effective Way to Treat Low-Risk Substance Abuse Offenders

Substance abuse takes a significant toll on Texas families and taxpayers.  Given that the state has increasingly limited resources, it is an opportune time to evaluate those strategies that can produce the greatest reductions in substance abuse and related criminal activity with every dollar spent, says Marc Levin, director of the Texas Public Policy Foundation's Center for Effective Justice.        

• In 2009, 133,191 arrests were made in Texas for drug possession and 16,598 for selling or manufacturing illegal drugs.         
• There are 16,188 inmates in Texas state lockups due to a drug possession conviction, which translates into a biennial cost to Texas taxpayers of $600.2 million.

While prisons are appropriately utilized to protect the public from drug kingpins and those whose illegal drug use is part of a pattern of criminal or gang activity indicating a threat to the community, the evidence indicates that for those low-level drug possession offenders who are not a danger to public safety, other approaches are often more cost-effective.       

• A Maryland study, for example, found that low-risk substance abuse offenders that were directed into an evidence-based probation and treatment program were 22 percent less likely to recidivate within a year after the program than comparable offenders sent to prison.        
• The national Drug Abuse Treatment Outcome Survey of 10,000 treatment participants found that residential treatment reduces criminal behavior, with a 50 percent reduction in drug use and a 61 percent reduction in crime; outpatient treatment resulted in a 50 percent reduction in drug use and a 37 percent reduction in crime.

Drug court programs -- special courts assigned to dispose of cases involving substance abuse offenders through comprehensive programs -- have shown significant savings potential.  Consider, a drug court program costs between $2,500 and $4,000.  By comparison, the annual cost per Texas inmate is more than $18,500.

Source: Marc Levin, "Breaking Addiction without Breaking the Bank: Cost-Effective Strategies for Texas Lawmakers to Reduce Substance Abuse," Texas Public Policy Foundation, April 2011.

Homeownership Does Not Create Wealth

It is easy to see why policymakers have bought into the uncontested belief that homeownership is a good investment.  Looking at the Case-Shiller housing price index over time, we can see that prices grew steadily until the 1990s and then took off like a rocket until the bubble burst in 2006.  However, while owning a home is rarely a bad thing, it might not be the great investment our parents told us it would be, says Anthony Randazzo, the Reason Foundation's director of economic research.       

• When you adjust these numbers for inflation, housing prices stayed nearly flat from the end of World War II until the mid-1990s.        
• Only once the so-called 1992 Government-Sponsored Enterprise (GSE) Safety and Soundness Act opened up the floodgates of federal subsidies, later to be caffeinated by the Federal Reserve's loose monetary policy in the early 2000s, did prices double nationally.        
• Of course, that price jump was a bubble and prices have fallen nearly back to levels last seen in the 1990s.        
• By this measure, there really was very little national investment gain in housing until excessive subsidies created the housing bubble. 

This is not to say homeownership is a bad thing.  And on an individual level, low- and middle-income families certainly were able to build equity during this period -- which is a good mechanism for creating wealth.  But a lesson from the evolving "foreclosure society" in the wake of the housing bubble is that what many thought was homeownership was simply a twisted form of renting, says Randazzo.

Source: Anthony Randazzo, "The Myth of Homeownership Wealth Creation," Reason Foundation, April 26, 2011.

Used-car price index hits another record high

Tighter new- and used-vehicle supplies and increased retail demand helped push the Manheim Used Vehicle Value Index to another record in April.

The index, which measures used-vehicle prices, stood at 126.6 last month, up from 124.2 in March and 120.7 in April 2010. The previous record was set in January 2011 at 124.9.

“Wholesale used vehicle prices are also now being supported by the new-vehicle market’s tight inventories, steady demand and higher net transaction prices,” Manhiem said in its monthly commentary.

The index started in January 1995 at 100 and is adjusted for vehicle mileage, model mix and time of year.

Citing data compiled by CNW Marketing Research, Manheim said used-vehicle sales by franchised and independent dealers rose to 7,158,917 units in the first four months of 2011, up 10 percent from the year-earlier level. Sales rose 14 percent to 2,650,619 in April.

Manheim also said certified used-vehicle sales are on pace to set a new record in 2011.

Arlena Sawyers Automotive News

Fruit Marketers Go Bananas For Partnerships

Rightsholders Should Track Sales Trends to Identify Categories That Need Marketing Help

Declining consumption of bananas is promoting new sponsorship and promotional activity from the major marketers of the tropical fruit.

Dole Fresh Fruit Co. recently signed an estimated seven-figure tie with Six Flags Entertainment Corp., while Chiquita Brands Int'l, Inc. has a tie-in with the recently released Rio, the 3D-animated children's movie from Twentieth Century Fox.

The movie promotion builds on recent sponsorships from Chiquita. The company last year took title of two Nationwide Tour pro golf events: the inaugural Chiquita Classic in Cincinnati and the Fresh Express Classic in Hayward, Calif., the latter promoting the company's brand of bagged ready-to-eat salads.

Although both Dole and Chiquita are using their partnerships to tout multiple fruit and vegetable offerings, promoting their primary product—bananas—lies at the heart of many of their current deals.

That's because the two food giants are trying to reverse a decline in U.S. banana consumption. Per capita consumption of bananas declined from 26.8 pounds in 2002 to 24.7 pounds in 2009, according to the U.S. Department of Agriculture Economic Research Service.

For its part, Dole is taking a two-pronged approach to turning the tide, promoting both the health benefits of bananas and persuading consumers to consider new ways of eating the fruit.

For example on the second front, Dole is using its Six Flags partnership to support Go Bananas After Dark, a year-old marketing platform designed to increase the average purchase size of bananas by promoting consumption in the evening.

"Americans love bananas in their cereal, and as a lunchtime staple and afternoon snack; we want to introduce consumers to bananas in other ways and other times after the sun goes down, either for dinner, on the grill or as a healthy after-dinner treat," said Bil Goldfield, Dole Fresh Fruit's communications manager.

As part of the sponsorship, Six Flags is adding a grilled banana dessert to the menu at 10 of its 19 parks. "We are hoping it will be a great introduction and demonstration of how easy and delicious bananas on the grill can be," Goldfield said.

Dole will further activate the tie at Six Flags parks in St. Louis and Montreal with Coasters After Dark, a promotion offering visitors the opportunity to stay in the park for one hour after general closing. The company plans to offer extended-stay passes to consumers who show proof of purchase, said David McKillips, Six Flags' senior vice president of corporate alliances and partnership marketing.

The Six Flags deal replaces last year's partnership on behalf of Go Bananas After Dark with the Char-Broil Infrared Grilling Tour, a mobile marketing program that visited Kansas City's Great American Barbecue Festival and other barbecue events.

David Bright, vice president of marketing, spearheads Dole Fresh Fruit's sponsorship activity. Dole Fresh Fruit Co. is the largest division of Dole Food Co. The other two divisions are Dole Packaged Foods, LLC and Dole Fresh Vegetables, Inc.

What If Supermarkets Were Like Public Schools?

Teachers unions and their political allies argue that market forces cannot supply quality education.  Yet Americans would find the current politicized and monopolistic approach ludicrous if applied to other vital goods or services, says Donald J. Boudreaux, a professor of economics at George Mason University and a senior fellow at the Mercatus Center.

Suppose that groceries were supplied in the same way as K-12 education.

• Residents of each county would pay taxes on their properties.
• Nearly half of those tax revenues would then be spent by government officials to build and operate supermarkets.
• Each family would be assigned to a particular supermarket according to its home address.
• And each family would get its weekly allotment of groceries -- "for free" -- from its neighborhood public supermarket.

Of course, the quality of public supermarkets would play a major role in families' choices about where to live.  Being largely protected from consumer choice, almost all public supermarkets would be worse than private ones.  In poor counties the quality of public supermarkets would be downright abysmal.  Poor people -- entitled in principle to excellent supermarkets -- would in fact suffer unusually poor supermarket quality.

Responding to these failures, thoughtful souls would call for "supermarket choice" fueled by vouchers or tax credits.  Those calls would be vigorously opposed by public supermarket administrators and workers, says Boudreaux.

In reality, of course, groceries and many other staples of daily life are distributed with extraordinary effectiveness by competitive markets responding to consumer choice.  The same could be true of education.

Source: Donald J. Boudreaux, "If Supermarkets Were Like Public Schools," Wall Street Journal, May 5, 2011.