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Direct Response Marketing

Field Reports

1 Mar, 2007 By: Thomas Haire, Courtney Beth Pugatch Response


 

Salton Enters Into Merger Agreement with Applica

 

By Courtney Beth Pugatch ( cpugatch@questex.com)

LAKE FOREST, Ill. – Housewares giant Salton Inc. announced on Feb. 12 that its wholly-owned subsidiary, SFP Merger Sub, and APN Holding Company have entered into a definitive merger agreement whereby SFP Merger Sub will merge with and into APN Holding Company, the entity that acquired all of the outstanding common shares of Applica Inc. The merger results in another housewares leader, Applica, and its subsidiaries becoming subsidiaries of Salton.

The combination of both companies is expected to yield one of the largest U.S. companies selling small household appliances. The companies' portfolios include such brand names as George Foreman, Salton, Toastmaster, Russell Hobbs, LitterMaid and Farberware.

"We are pleased to announce this strategically and financially compelling transaction that is the result of our previously announced review of strategic alternatives to enhance stockholder value," said Leonhard Dreimann, president and CEO of Salton. "The combination of Salton and Applica is expected to create the opportunity for significant value enhancement for Salton stockholders, as well as benefit customers and employees as a result of the expanded brand portfolios, strengthened international presence and improved capital structure flexibility of combined companies."

With Salton and Applica merging, both companies are looking forward to reduced costs, attracting new and expanding existing customer relationships, improving the cost of goods through larger volume purchasing, and broadening each company's geographic strengths. Salton has a large clientele in Europe, Australia and Brazil, with Applica offering a large presence in Mexico, South America and Canada.

Salton estimates that the combined company will have consolidated annual sales of more than $1 billion. Dreimann said that the combined company is expected to achieve pre-tax annual run-rate cost synergies of at least $50 million by the end of 2008's fiscal year.

 

Super Bowl Advertisers Fumble Cross-Channel Integration

 

By Courtney Beth Pugatch ( cpugatch@questex.com)

NEW YORK – Reprise Media released its third annual Search Marketing Scorecard on Feb. 5. The report found that advertisers who bought time during the CBS broadcast of Super Bowl XLI the previous day made a great effort in generating buzz and interest, but lacked the substance to lead the buzz to Internet activity.


"This year, companies featured more Web-based tie-ins than ever before, making cross-channel integration essential," said Joshua Stylman, managing partner at Reprise Media. "Advertisers that integrate all their marketing efforts should no longer be considered cutting edge. It's expected that brands of this caliber understand their audiences and how they act on information."

The Search Marketing Scorecard ranks Super Bowl advertisers based on their ability to use search engines as a link between their advertisements and a Web presence. To expand this year's analysis, Reprise Media partnered with Optimost to provide analysis and insight into the effectiveness of landing pages used by the Super Bowl advertisers.

Companies, such as Snickers, Blockbuster, Pizza Hut and GoDaddy.com, were able to score a touchdown with viewers by not only having a well-executed advertisement, but also were able to generate leads to the Internet. Pizza Hut, for example, linked to a YouTube channel to continue discussions about the advertisements and products.

Doritos, T-Mobile, Snapple and Toshiba fumbled, quickly becoming forgotten after their respective commercials were aired. The companies failed to establish any sort of Web presence, and were mostly all buzz with no substance.

Overall, fewer than 30 percent of all landing pages surveyed for the study didn't have any clear association with the Super Bowl advertisements that generated traffic. Nearly 90 percent of the advertisements that included a link to a Web page didn't give viewers a clear reason to visit.

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