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How Subway's $5 Footlong Became An Accidental Bonanza
Business Week
Matthew Boyle weaves the tale of Stuart Frankel, a transplanted New Yorker who began selling foot-long subs for $5 in his two Miami Subway franchises on weekends and evidently turned around the company's fortunes in the process. Subway sold $3.8 billion worth of footlongs in the year ending in August, making it one of the top 10 fast-food brands in the U.S, according to NPD Group.
"There are only a few times when a chain has been able to scramble up the whole industry, and this is one of them," says Jeffrey T. Davis, president of restaurant consultancy Sandelman & Associates. "It's huge."
Boyle's story is all about how a corporate giant can seize on a good idea that's not generated at headquarters and make it a system-wide success even though, as marketing chief Jeff Moody puts it, "it violated all our normal processes." It's a good read. - Read the whole story...
How Maclaren's Is Botching The Stroller Recall
Time
Yuppie parents who have been partial to Maclaren strollers are "having fits," Sean Gregory reports, over the way that company has handled the recall of models that have been implicated in amputations involving 12 children who got their fingers caught in a hinge.
Maclaren is offering free hinge covers, available through its website, as a remedy. But yesterday afternoon the site was besieged by traffic and it was difficult to get through. (Still is this morning, and the recall notice is not very apparent.) "We are working to address the issue," says Charlotte Addison, marketing manager for Maclaren USA. She says that the company intended to announce the recall today and was not ready for the volume generated when the Consumer Product Safety Commission released the information. (Consumers can also call 877-688-2326 between 8 a.m. and 5 p.m.)
Meanwhile, parent blogs are buzzing and strollers that had a reputation for dependability are now being seen as "the one that could cut kids' fingers off," Gregory writes. But despite some stumbles setting up Twitter accounts, its brand equity need not be irreparably tarnished, he suggests. One blogger wrote that she was "really pissed off" but "I'm not ready to break up with you, Maclaren." Gregory says it will all come down to "how many Maclaren parents will forgive and forget." - Read the whole story...
McDonald's Puts Big Bucks Behind Staff 'Idol'-Style Contest
Ad Age
McDonald's is putting a healthy dollop of marketing and ad support behind its third "Voice of McDonald's" competition, an "American Idol"-style karaoke contest in which servers are vying to be one of 12 semifinalists who make it to the company's biennial global conference next April, Emily Bryson York reports. The winner will take home $25,000.
"I've always felt that our employees are our biggest assets," says Dean Barrett, McDonald's svp-global marketing. "So to allow our employees to have the fun and excitement and to have talent come through in a unique and different way has been a lot of fun for me and McDonald's."
The 2008 contest allowed consumers to vote on semifinalists; 46,000 did so. Since then, McDonald's has increased its presence on Facebook and Twitter, among other sites, and consumer participation is expected to skyrocket. The semifinalists will be announced later this week. - Read the whole story...
Frank: Credit Card Hikes Show Need For Oversight
NPR
The response of some credit card companies to new federal regulations that take effect in February -- raising rates and reducing credit limits -- may boomerang, suggests Rep. Barney Frank (D-Mass.), who serves as chairman of the House Financial Services Committee. He says the actions are helping to build support for the creation of a consumer financial protection agency.
"People now understand the need for an ongoing supervisory power that's aimed at consumers and not as an afterthought to bank regulation," Frank tells Michelle Norris.
Slipping into Betty Furness mode, Frank also suggests that consumers in the market for a credit card should comparison shop. And he says those who already have them should pay the bill before the due date or pay cash until the new rules, which govern when and how banks can charge borrowers, take effect. - Read the whole story...
Kraft Foods Will Turns Its Attention To Cadbury Stockholders
Chicago Tribune
After yesterday's swift-if-expected rejection of its formal takeover bid by Cadbury management, Kraft is expected to sweeten its offer and take it to the confectionary giant's shareholders, Mike Hughlett reports. They, in turn, face a difficult decision in weighing whether Cadbury management can deliver more value than Kraft in the long term.
"The offer is worse than the proposal the board previously rejected as fundamentally undervaluing Cadbury and its prospects," the board said in a statement, and chairman Roger Carr called it "derisory." Kraft's shares, which will finance 60% of the deal, have fallen slightly since the initial offer.
But Morningstar analyst Erin Swanson says that Cadbury shareholders may take a Kraft offer rather than hold on to Cadbury shares that are likely to drop, at least in the short term, if the bid fails. "That's the trade-off Cadbury shareholders will be forced to consider," says Edward Jones analyst Matt Arnold. - Read the whole story...
PETCO's Pesky Puppies Found in Los Angeles Park
Fast Company
Alissa Walker asks: Are the yellow cut-outs ingenious or invasive? - Read the whole story...
BBDO To Shut Detroit Offices Once Chrysler Exits
Adweek
GNC Making A Pitch To Attract Women
New York Times
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