Broadcasting Telecasting (Oct-Dec 1957)

BROADCASTING THE BUSINESSWEEKLY OF TELEVISION AND RADIO Vol. 53, No. 25 DECEMBER 16, 1957 LOYALTY TEST ON MADISON AVENUE • Must agencymen shun all products but their clients'? • Question argued after Whitehall yanks Kolynos from Grey An answer on a television interview cost Grey Adv. the $300,000 Kolynos toothpaste account last week and touched off an industry-wide re-examination of the merits and perils of "brand loyalty." Grey lost the account days after its president, Arthur C. Fatt, told interviewer Howard Whitman on WABD (TV) New York's Nightbeat that he brushed his teeth with Crest that morning. Pressed by Mr. Whitman, he pointed out that Crest was a Procter & Gamble product and that Grey handled other P&G products (but not Crest). Moreover, he said in answer to another question, he personally tries to sell his agency people on using the products of clients (see interview transcript, page 28). But Kolynos left, destination not disclosed. Whitehall Pharmacal Co., maker of Kolynos, has seven agencies handling its various products and it was understood — although not confirmed — that Sullivan, Stauffer, Colwell & Bayles, one of the seven, would be named to take over the toothpaste, effective after the first of the year. Queried about the withdrawal, Whitehall advertising vice president R. G. Rettig told Broadcasting he had no comment. He did say that "we are doing business with seven agencies and from time to time move accounts." (He was more direct when asked what toothpaste he himself had used that morning. "Kolynos, of course," he replied emphatically.) News of the Kolynos action ricocheted through advertising circles, stirring up views that varied from condemnation to warm understanding and support. Mr. Fatt, the man who tipped over the hornets' nest, outlined his position this way: "The truth," he said, "is that I have three brands of toothpaste — two types of Kolynos, Crest and super-Ipana — in my medicine cabinet, because all of our top executives are constantly, of their own volition and at the request of our research department, personally testing the products of competitors. You can understand that this provides executives with the greater knowledge of products which we are helping to sell." Mr. Fatt explained that in his definition "brand loyalty . . . consists of many ingredients." He said these included "complete acceptance of the product advertised as the best in the field for those of us privileged to advertise the product as well as for the consumer, but it does not stop there. Brand loyalty is not complete without a full knowledge of the competitive situation, without which effective marketing plans cannot be developed. That is why we at Grey are always testing new and competitive products to those we advertise." Grey Adv. management, long noted for brand consciousness, has in memo after memo to its staff emphasized loyalty to its accounts. In a recent one, for example, Mr. Fatt said "two vital ingredients contribute to our success as an agency — skill and enthusiasm. They must work hand in hand. Skill is employed on the job. Enthusiasm— for Grey, its clients and their products — is a quality you can't turn off with the light switch at the end of the day. It's the belief that everything connected with Grey is 'extra special' to be boosted 'round the clock, wherever we are, whatever we do . . . brand loyalty ... is a normal extension of belief in our work." Lawrence Valenstein, chairman of the board of Grey, said that "we have a great respect for the Whitehall people and they have always treated us fairly." Grey has handled Kolynos since September 1955. Its sales at that time were low but increasing, and were still climbing this year. Kolynos shares sponsorship, along with other Whitehall products, of Love of Life and Secret Storm on CBS-TV. Here are some of the views rounded up by Broadcasting as the debate over brand or client loyalty stirred advertising circles last week: Bruce Dodge, vice president in charge of the New York office of North Adv., was outspoken in his praise of Mr. Fatt's position. He said it was "disgraceful" if a client dropped an agency solely for the reason that a top-level agency executive preferred to use the product of a competing company. Mr. Dodge agreed with Mr. Fatt that many agency employes, including those at North Adv., are "free-thinking." He hastened to add that products handled by North — Lanvin perfumes and Toni products— are "leaders" in their fields, and agency personnel prefer to use them. But he insisted that if there were a product he could use that was "superior" to one handled by Broadcasting December 16, 1957 • Page 27