Fighting For Ephedra
From "
Ephedra
Marketers Take Cover" by Nat Ives, New York Times,
March 17, 2003
The death last month of Steve Bechler, a baseball player
who had been taking ephedra, has placed a big target
on the backs of manufacturers of the over-the-counter
dietary supplement.
Critics have been lobbying against the selling of the
supplement, claiming it poses unreasonable health risks.
Ephedra retailers are either taking the product off
their shelves or limiting sales to individuals over
the age of majoirty.
Some companies have dropped the product from its offerings
altogether. Others are determined to stick around and
fight.
"There was a storm brewing on ephedra all along," says
Bryan Glazer, president and executive director of World
Satellite Television News in New York City. "The death
[has] turned a Category 1 storm into a Category 5 hurricane."
Key Points
- Cytodyne Technologies, which manufactures the
supplement that Bechler is said to have taken, has
pulled all traces of the product off of their website.
Last year, the company spent $4.4 million advertising
the capsules and tablets.
- Glazer's World Satellite Television News, a public
relations firm employed by Cytodyne, has battled
news media attention by distributing information
from medical experts and questioning the role of
the substance in Bechler's death. Glazer claims
Bechler did not follow the label's instructions
properly.
- Many critics are calling for the Food and Drug
Administration to outright ban over-the-counter
distribution.
Portfolios Point of View:
- We're not sure that thirty days after the high
profile death of Bechler is a good time for ephedra
supporters to stand up and be counted. In fact,
we'd imagine companies associated with the former
diet wonderdrug may want to disappear into the shadows.
- But clearly Cytodyne has plenty invested in the
product. If it honestly believes that Bechler's
death was by his own mis-use -- that it could have
been avoided altogether -- then the company has
a reasonable point and should do its best to rationally
argue its case.
- On the other hand, if the company has any knowledge
of culpability -- any studies or results that indicate
the drug is outright dangerous, it ought to bow
out quick. If any "internal memos" or "confidential
test results" wind up in public hands, Cytodyne
Technologies -- and the entire dietary supplement
sector -- could experience a disastrous tailspin.
Surf At Ronald's Turf
From "
Not
So Fast, says McDonald's, sit and surf" by David
Lyman, Detroit Free Press, March 13, 2003
Fast food chain McDonald's is aiming to re-position
itself for the internet generation.
This past month, the company launched high-speed wireless
internet access at ten of its New York City locations.
Customers who purchase an extra value meal are given
an hour of free access. The service will be tested in
New York, Chicago and a yet-to-be-named California city.
The concept represents a new approach for McDonald's
which has spent the last few decades trying to provide
a "fast food" experience. Now they're banking that consumers
want to sit down, absorb the grease and hang out.
Key Points:
- Skeptics point at McDonald's finances as the
reason for the seemingly out-of-place decision.
The company's worldwide sales have fallen for a
12th straight month. February sales at restaurants
open at least 13 months declined 4.7%.
- Other see a new model for a company that's been
stuck in an old mode of business: "I think McDonald's
has to evolve," says John Kostecki, co-owner-operator
of nine Detroit locations. "We have to move into
the 21st century."
Portfolios Point of View:
- Greasy mouse buttons aside -- and that is a legitimate
concern -- we can't be critical of the golden arches'
obvious attempt to stay current. With web appliances
everywhere, offering consumers the chance to wire-in
while eating their dinner is an intriguing option.
- While fast food's target demographic has always
been families, single men of all ages have traditionally
been the largest consumer of the sector. While the
company's ads continue to focus on its "desired"
market, it's interesting to consider that internet
access is a benefit definitely more applicable to
lone eaters.
- Congratulations to the braintrust behind this
innovation. It may work, or it may not. But clearly
the good folks behind Ronald McDonald are thinking
outside of their traditional sector.
The Bermuda Brouhaha
From "
Tourism
Print Ads Called 'Dishonest'" by Stephen Breen,
The Royal Gazette, February 28, 2003
Bermuda's Department of Tourism came under attack from
within recently when local photographer and National
Liberty Party vice chairman Graeme Outerbridge charged
that photographs featured in Bermuda's latest tourism
ad were not even taken in the country.
The campaign, created by agency Arnold McGrath, features
photographs taken in Hawaii and Florida. One photograph
features a large school of barracuda's -- a difficult
proposition, Outerbridge maintains, considering this
particular fish is not found in the country.
For his part, Bermuda Tourism assistant director of
marketing Michael DeCouto says only three of the campaign's
photos were not of the island, and that the advertising
agency used them to create "emotion".
He says the rest of the images were from local photographers.
"To focus on three abstract images," he added, "is not
fair [to] the campaign as a whole."
Key Points:
- The battle has turned into a war of words between
Outerbridge and DeCouto. One salvo fired by Outerbridge:
"Mr. DeCouto said the art director at Arnold Advertising
was simply after a feeling. This feeling is a lie
and you cannot expect to attract people to Bermuda
based on dishonesty."
- Retorts DeCouto: "The images in questions, you
could never tell where in the world they are, and
they are images that portray more a feeling and
position for Bermuda in our profile of sophisticated
contemporaries."
Portfolios Point of View:
- Advertising's as much about politics as it is
about selling. Or rather, without good politics,
the sale becomes even more difficult. We're not
exactly surprised, disappointed or alarmed that
the Bermuda tourism campaign doesn't feature images
exclusively from the destination. However, we do
advise that entities that embark upon this slippery
slope make sure not to get caught.
