ROYAL CROWN COLA NAMES GSD&M AS NEW AD AGENCY; SOFT-DRINK MANUFACTURER HIRES TEXAS-BASED AGENCY WITH 'A DAVID VS. GOLIATH REPUTATION'
MIAMI, Aug. 12 /PRNewswire/ -- In a move reflective of its commitment to re-energize its brands and to support its bottler network, Royal Crown Cola Co. has named Austin, Texas-based GSD&M as its national advertising agency for its $8-10 million business including RC Cola and Diet Rite. It was widely speculated in the advertising industry that RC would hire one of the major agencies based in New York. Instead, RC President and Chief Executive Officer John Carson chose a firm that he said "knows where we're coming from." "We looked for a firm that had a history of helping lesser-known clients fight the 'big boys' and their big ad budgets," said Carson. "We can't afford to take our competition on dollar-for-dollar, so we need a firm that has demonstrated its ability to help the corporate underdog with very precise positioning and relevant creativity." Probably GSD&M's best example of doing just that is Wal-Mart, for which it created the "Always the Low Price" campaign that helped position the retailer from third to first in the retail industry. It also works for such well-known up-and-comers as Coors Brewing, Chili's Grill & Bar and Southwest Airlines. "When RC approached us, we were faced with a challenge we could not afford to miss. This is a wonderful opportunity to become the lead agency for a national brand," said GSD&M President Roy Spence. "As we like to say, we're not in the advertising business. We are in the business of building our clients' business. Royal Crown Cola Co. is really poised to grow if given the right support. We love to take on challengers like Wal-Mart and Southwest Airlines. It's the type of challenge everyone can get truly excited about." Carson, who came to Royal Crown Cola. Co. from Cadbury Beverages, said that he knew of GSD&M through advertising connections in his native UK. GSD&M is affiliated with GGT in the UK. Carson indicated GSD&M became a late-entry, dark-horse candidate following a courtesy introduction meeting. "We were impressed with GSD&M because of their business philosophy, their people, and their demonstrated ability to build market share against industry giants," Carson said. "Our advertising needs are very different from the other soft drink players." Carson said he views advertising as not a means in itself, but as a means to an end -- that of building business. With such similar advertising philosophies, he said, following introductory meetings with GSD&M and several New York-based agencies, GSD&M emerged as the best choice to help RC accomplish its ad mission. "They are a very balanced agency with savvy marketing and media skills, and excellent creative. Plus, they love to win. They are not just going to create our ads, they're going to become partners with us and our bottler community to build our business and make every dollar work like it's a million." RC's business amounts to a $8-10 million account for GSD&M. The ad agency represents more than $210 million in billings overall. Its first steps for RC will involve intensive market research, and a new advertising campaign is expected by January. Carson became president in May 1993, coinciding with the ownership change of DWG Corporation, Royal Crown Cola Co.'s parent company. Royal Crown Cola Co. is the third-largest cola franchise company and the fifth-largest soft drink company in the United States. Its brands account for 3 percent of the soft drink industry market share. The company operates through 200 franchisees and distributors in the United States and sells products in 50 countries. -0- 8/12/93 /CONTACT: Lynn Sokler or Caroline Duffy of Manning, Selvage & Lee, 404-875-1444, for Royal Crown Cola Co./
CO: Royal Crown Cola Co.; GSD&M ST: Florida, Texas IN: FOD ADV SU:
BR-RA -- AT002 -- 2063 08/12/93 10:47 EDT
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|Date:||Aug 12, 1993|
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