Magazine article Marketing

Grand Marques in Ad Revolution

Magazine article Marketing

Grand Marques in Ad Revolution

Article excerpt

Moet & Chandon, Marks & Spencer and Waitrose are three upmarket brands which on the surface have little in common. But in the past six months all have decided to break with their traditional marketing strategies and look more seriously to advertising.

In the case of Moet & Chandon, which is rumoured to be spending a seven-figure sum on its first ever campaign, it is a tradition that, until now, has survived more than 250 years.

So what has forced the traditional spurners of advertising to eat their words? The recession, say industry commentators, is the biggest factor, with the need to build stronger brands in crowded marketplaces.

"The UK is just dragging itself out of the longest ever recession, and, for the first time, companies are starting to feel bullish. Those which have suffered most during this period are especially eager to speed up their rate of growth. And advertising is a means to that end," said Chris Powell, chief executive of BMP DDB Needham.

Recent profit figures for Waitrose, and Louis Vuitton Moet Hennessy the luxury goods group which owns Moet & Chandon, show both were hit hard during the recession.

In the half year to June 1993, LVMH's bubbly division reported a loss of |pounds~11.3m. Similarly, a poor performance by Waitrose forced its parent, the John Lewis Partnership, to report a 10% drop in pre-tax profits to |pounds~16.4m for the six months to July last year.

The woes of the champagne industry have been well documented. …

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