Don’t mention the ‘r’ word

’Downturn’, ’slowdown’ and ’correction’ have been applied to the conditions in a year in which marketing has been overshadowed by larger events. Marketing Week reporters look at what went on in 2K1

Many will wish to forget 2001 – a year which seemed to deliver one disaster after another. The British meat industry – on the verge of recovering from BSE – was again thrown into turmoil, this time by the outbreak of foot and mouth. Agriculture was not the only sector to be affected: UK tourism lost millions of pounds as the countryside was put off limits to ramblers and sightseers. But the year held far worse horrors. As pictures of the terrorist attack on the World Trade Center were broadcast on TV screens across the world, first thoughts were obviously for the victims and their families. But the event has had wider ramifications – bloody war, best covered under other mastheads, apart – severely affecting the travel industry as well as contributing to a severe economic downturn that has resulted in a spate of job and budget cuts. For most, the outlook can only get better. Analysts are already predicting that advertising spend will start rising again in the third quarter of next year.

January

A particularly difficult year for Ford begins with the defection of global marketing chief Jim Schroer to rival DaimlerChrysler – and ends in the ousting of chief executive Jacques Nasser.

Bartle Bogle Hegarty picks up the &£100m global advertising account for Ericsson’s troubled mobile phone division, only to find that it is to be merged with Sony’s mobile business. Fortunately

for BBH, it was retained to handle the advertising for the new joint venture company, Sony Ericsson Mobile Communications.

Fast food giant McDonald’s buys a 33 per cent share in upmarket sandwich outlet Pret A Manger. Later in the year its US operation is rocked after the FBI unearths a $13m (&£9m) fraud scandal involving two of its promotions.

The Guardian newspaper, reviving the partnership that created its award-winning skinhead ad, reappoints BMP DDB after a 12-year break.

Heineken is tipped as the most likely bidder for Bass Brewers following the Government’s ruling that Interbrew must sell the business it bought for &£2.3bn last year.

With the Dome closed, marketing director Sholto Douglas-Home finds a new job as marketing director for Reuters’ Internet venture, Kalends. His colleague, Reuters chief marketer Kevin McCarten, is made redundant in June as part of a restructure.

HSBC Holdings appoints Young & Rubicam North America chairman Peter Stringham as head of group marketing. In April, the company moves its account out of St Luke’s and into Lowe Lintas.

February

Never short on innovation, the detergent sector is set to be shaken up by the launch of Lever Fabergé’s Persil Capsules. Not wanting to be left behind, P&G unveils a spoiler – Ariel Liqui-Tabs. But both are beaten in the race to the shelves by the Co-op’s Acti-Pods.

March

Foot and mouth hits the tourism industry and the English Tourism Council ventures outside its remit, funding a press campaign imploring tourists to explore the attractions of the countryside.

The European Union bans the use of terms such as “light” and “mild” on tobacco products. Plans to ban tobacco advertising are reintroduced in the EU.

Interpublic acquires True North.

The BBC hires Andy Duncan from Unilever to replace Matthew Bannister as director of marketing and communications.

April

Vauxhall dumps Griff Rhys-Jones as the face of its advertising.

A raft of departures of marketing directors from national newspapers begins – Patrick Sheriff leaves The Times and Sunday Times, later to be joined by Trish Wadley of The Independent and Independent On Sunday and Margaret Harvey of Trinity Mirror.

The nation’s favourite sport hits the jackpot – Nationwide continues its sponsorship of the Football League in a &£12m deal. Not to be outdone, a month later Barclaycard splashes out &£48m on a three-year sponsorship deal for the FA Premier League.

Barclays poaches EMAP consumer magazines marketing director Simon Gulliford to be its first group marketing director. He appoints Starcom Motive to the &£15m media account in July, replacing MediaVest; Bartle Bogle Hegarty becomes lead agency on the &£20m ad account in August, replacing Leagas Delaney.

ITV appoints Stuart Prebble as chief executive, overseeing the network and ITV Digital. It’s a bad year for ITV as its advertising revenue plummets and it is forced to reschedule The Premiership away from its early Saturday evening slot because of poor viewing figures.

May

The broadsheet battle between The Times and The Daily Telegraph hots up as they both rush to be the first to publish a standalone sports section six days a week. The Telegraph wins.

Johnny Hornby and Simon Clemmow, joint managing director and chief executive respectively of TBWA/London, leave the agency to start up their own shop. Charles Inge, Lowe’s top creative, joins them as they take the &£10m Carphone Warehouse account with them.

June

Canadian marketing services group Envoy decides not to go ahead with the acquisition of Leagas Delaney.

Microsoft promotes director of enterprise marketing Oliver Roll to the new position of marketing director.

P&G buys haircare brand Clairol for $4.9bn (&£3.7bn) from Bristol-Myers Squibb. But the deal is overshadowed by the furore created by allegations that P&G has been spying on rival Unilever’s US haircare business.

Transport for London invites agencies to pitch for the business to promote Mayor Ken Livingstone’s congestion charge. The tender eventually becomes mired in controversy after the account is first handed to, then taken away from, M&C Saatchi. A repitch is held in December, the result of which is still eagerly awaited.

Marks & Spencer appoints former Publicis director Jude Bridge as its head of external marketing, triggering further rumours that the beleaguered retailer plans to review its advertising.

TBWA/London helps propel Labour to a second landslide General Election victory, with spoof film posters featuring William Hague and Michael Portillo. The Tories fire their ad agency, Yellow M, shortly after the election.

BT finally drops ET as its mouthpiece, choosing a Coliseum-style arena as the setting for its new corporate ad. BT decides to float off its mobile division, mmO2, which in turn has plans to rebrand BT Cellnet as O2. Rebranding is also on the agenda for Deutsche Telekom, which plans to phase out One 2 One in favour of T-Mobile.

ITV’s marketing and commercial director John Hardie, who was passed over for the role of network chief executive, announces that he is leaving to go to Walt Disney as managing director of branded television across Europe. He is replaced by Channel 5 marketing and communications director Jim Hytner.

July

BMW launches its new-look Mini.

Virgin Energy is consolidated into London Electricity, and Virgin Direct and Virginmoney are merged in a bid to create a worldwide financial services brand for the Virgin Group.

Vauxhall’s UK chairman Nick Reilly moves to parent company General Motors, taking up the post of European sales and marketing chief. Later he is given the chairman’s post of newly acquired Daewoo. Former Jaguar managing director Jonathan Browning takes on the vacated sales and marketing role.

August

Npower teams up with Greenpeace to launch Juice, a “green” electricity brand. Rival retailer TXU Europe, meanwhile, is busy rebranding itself as TXU Energi, ditching its Norweb Energi and Eastern Energy brands.

An interesting product development sees P&G team up with Wrigley’s to develop a new range of gum with dental benefits – under P&G’s Crest dental care brand.

Myhome, Unilever’s home-cleaning service, is put up for sale less than 18 months after its much-hyped launch.

The merger of Halifax with Bank of Scotland sees Halifax marketing chief Philip Hanson get the top retail marketing job at newly formed HBOS.

September

The terrible events of September 11 rock the airline and tourism industries, accelerating budget cuts, consolidation and rationalisation plans.

P&G and Coca-Cola pull the plug on a joint venture to sell brands such as Pringles crisps and Minute Maid juice.

Camelot chief executive Dianne Thompson admits at the Marketing Forum that the National Lottery brand has become “battle-scarred” and “boring”.

COI Communications, formerly the Central Office of Information, adds six advertising agencies to its roster – Fallon, Miles Calcraft Briginshaw Duffy, Mother, Mustoe Merriman Levy, Publicis and Walsh Trott Chick Smith. The move reflects the Government’s increasing advertising spend – nearly &£200m for the year to March.

The economic downturn gathers pace, and with clients cutting marketing budgets a number of advertising agencies – including Abbott Mead Vickers.BBDO, BMP DDB, Claydon Heeley Jones Mason, M&C Saatchi, HHCL & Partners and WCRS – embark on a wave of redundancies.

October

There is no escaping from French Connection UK, as it unveils plans to enter the US market and puts its name onto home furnishings, toiletries and even flavoured alcoholic beverages.

Prudential appoints former Safeway marketer Roger Ramsden as its chief marketer.

November

WPP’s attempt to wriggle out of the purchase of Tempus following a plunge in share prices due to the attacks on the US backfires. CIA and WPP’s media agency are subsequently merged to form The Media Edge:CIA.

IPC Media axes Woman’s Journal – as first predicted in Marketing Week – as well as five other titles, including Your Garden, Home & Ideas and Marie Claire Health & Beauty.

HHCL & Partners’ loss of the &£16m Egg advertising account to Mother highlights a terrible year for the agency which has seen the departure of business from the AA and St Ivel Shape. In contrast, 2001 marks a coming of age for Mother, which has picked up ITV Digital, Schweppes, Oasis and Batchelors Cup-a-Soup.

Skoda marketing chief Chris Hawken announces he is to quit the company next year for a new life abroad.

Lever Fabergé plans a &£50m assault on the haircare market, with the launch of the Dove haircare range. P&G plans to fight the threat with a &£9m relaunch of its Pantene range.

Coca-Cola muscles in on Lucozade Sport’s dominance of the sports drink sector, launching Powerade.

Thomson Holidays managing director Shaun Powell is transferred to Spain as part of a restructure by company owner Preussag.

The Department of Transport, Local Government and the Regions snubs COI Communications by announcing plans to set up its own roster of creative and media agencies for its &£20m advertising business.

December

Government plans to introduce health warnings on alcohol ads meet with opposition from the Institute of Practitioners in Advertising and the Incorporated Society of British Advertisers.

The British Tourist Authority joins the fight to get inbound tourism back on its feet, appointing AMV.BBDO to a &£5m New Year campaign.

Channel 4 appoints BBC director of television Mark Thompson as its new chief executive, replacing Michael Jackson.

Camelot appoints Phil Smith, former Somerfield group marketing director, as its new commercial director.

IPA president Bruce Haines announces he is to quit as chairman of Leagas Delaney, after working with Tim Delaney for 15 years.