Hershey (NYSE: HSY) is having growth problems. Not only is it tough just navigating this high-inflationary period, but it's difficult keeping up with the competition. Consumers have a lot of candy choices, and even though Hershey is a big brand name in confections, it thinks it can do better in the marketing department. According to this Wall Street Journal (subscription required) piece, Hershey intends on implementing a 20% increase in spending for promotions.

This double-digit jump in marketing is a smart move, but it won't be easy to digest. With the aforementioned inflationary pressures on the rise, Hershey is going to be sufficiently challenged to push growth while balancing the upward trends in input costs. But is there really a choice here? When you have a super brand like Hershey running into trouble, the thing you need to do is get out there and prop up the inherent equity of the product portfolio.

Yet, there's a bit of a conundrum here, I think. Hershey needs to get people to buy its delicious candies (I'm certainly a fan of the awesome Reese's Peanut Butter Cup). Which demographic loves sweets? Younger kids. They would have represented a great group for growth opportunities, but Hershey has to be careful about marketing too much to this demo since the country has, rightly so, been focusing on healthy alternatives to fatty foods. Even though Hershey has been trying to make some of its portfolio healthier, the flagship brands will always be, one assumes, sugary and full of empty calories. In fact, Hershey is more than aware of this issue, as this corporate link demonstrates.

A few days ago, something -- I don't remember what -- reminded me of one of best parts of going back to school when I was a youngster in the early to mid-1990s: the Trapper Keeper.

I hadn't seen one in years, but a quick internet search revealed that while Mead discontinued the product, it reintroduced a new version of the Trapper Keeper in 2007. I might have to get one. So that got me thinking about old brands that I miss and I wondered: Companies spend millions to develop brands into household names only to discontinue them after a rough patch or merger. Might there be some value in the brands -- even years after they've been removed from shelves.

Turns out I'm not as creative as I thought. A cool company called River West Brands does nothing but acquire, incubate and launch long-dead brands. The current portfolio includes Coleco, Salon Selectives, and Brim coffee. The company also acquired -- and has since relaunched and sold -- other brands including Nuprin and Structure.

Rob Walker's feature story for The New York Times Magazine takes a look at River West, and it's one of the best business stories I've read this year. It's a fascinating look at reviving brands, marketing, and the tricks our minds play on us that make us remember products we've never seen before fondly.

One of the world's largest ad agency holding companies, WPP, sees its 2008 results being stronger that last year. In the scheme of things, that would seem to make no sense. WPP is a global firm, so perhaps a great deal of this improvement will come from outside the US and Europe.

According to Reuters, "The group, whose agencies include JWT and Young & Rubicam, said it had not felt any impact from global financial crises but warned again that the `real world' could be affected in 2009." What happened to the 2008 global economic slowdown?

In many ways the comments echo those from News Corp (NYSE: NWS) and CBS (NYSE: CBS). Both have indicated that they are not seeing any meaningful impact of the economy on their advertising revenue. That could be a sign that any recession is coming in pockets of the economy, but is not hitting it across the board.

WPP may be right. While the airline, auto, retail, and financial sectors are cutting back, there is evidence that consumer goods, energy, and tech companies are still recording strong sales. That may mean that marketing dollars from these areas of the wider economy are fine.

WPP has to be getting the revenue growth from somewhere. Perhaps its results are a sign that concerns about a recession are a bit overblown.

Douglas A. McIntyre is an editor at 247wallst.com

Apple (NASDAQ: AAPL) has been on the rise today, as renewed enthusiasm over future iPhone sales has brought buyers into the stock, pushing shares up $7.67 to $130.63, or 6.2% .

The company has stated that its goal for overall iPhone sales by the end of 2008 was 10 million units, and according to Apple's COO, Tim Cook, the company remains confident in hitting that hefty goal.

Since the highly anticipated release of the iPhone last year, there have been a couple of points that Apple has taken a bit of heat over, the first being that outside programmers were not allowed to write programs for the iPhone, and the second being the company's decision to grant individual carriers rights to sell their phones in their respective countries.

Back in August, I wrote about the 23 state attorneys general that were taking a look at alcoholic energy drinks, concerned that consumers weren't being warned about the dangers of mixing caffeine with beer. Studies have shown that caffeine can lead intoxicated individuals to believe that they are well enough to drive, and can also mask some of the symptoms, fooling those around them as well.

Now Anheuser-Busch (NYSE: BUD) has received subpoenas from New York, Maine, Maryland, Arizona, and Iowa while SABMiller Plc. has received subpoenas for documents from Illinois, New York, Iowa, Maine, and Maryland.

In one of the more idiotic defenses I've seen in awhile, Anheuser-Busch released a statement saying that "If the Attorneys General truly believe that, despite the state and federal regulatory approvals, alcohol and caffeine should not be mixed, then they should use their powers to persuade these authorities to regulate or ban all such beverages, not just the lower-alcohol, prepackaged ones,"

What? Isn't that kind of like saying that the police shouldn't crack down on people selling crystal meth because you can buy all the products you need at the grocery store? Not that I would know ... but if Anheuser-Busch is marketing a product that contains a chemical combination that is more dangerous than the sum of the parts and consumers aren't aware of that, it's worth investigating.

The choppy/consolidating (or perhaps worse) market conditions sometimes give the impression that growth plays do not exist, but that is not the case, and one growth company worth evaluating is Urban Outfitters.

Urban Outfitters, Inc. (Nasdaq: URBN) operates more than 120 specialty retail stores under the Urban Outfitters, Anthropologie, and Free People brands, and also offers clothes via a wholesale division under the Free People label.

Analysts like the fact that URBN carries in-demand, self-expressive merchandise, with differentiated retail brands. Most analysts believe the company has achieved a retail gold star: a unique brand position in the ages 18-24 customer category. Moreover, a relatively high 50/50 private label/nation brand inventory lowers inventory risk.

Sales increased an impressive 23% in FY 2008, with analysts seeing a 20-25% rise in FY 2009. Operating costs are reasonable. The Reuters FY 2008/FY 2009 EPS consensus estimates for URBN are $0.90 to $1.15.

The U.S economy may be in for a period of sluggishness (we hope it's just cyclical sluggishness), but the internet continues its growth ramp, and with this in mind, ValueClick is worth an evaluation

ValueClick (NASDAQ: VCLK) is one of the world's largest and most diversified online marketing services companies.
Analysts see 2008 revenue increasing 15-20% following a likely 15-17% rise in 2007, as the internet continues to grab an increasing share of marketing budgets. Analysts also expect VCLK to add to its corporate customer base.

Meanwhile, the company's revenue mix remains favorable, and operating margins appear to have bottomed in 2007. Further, there's ample room for VCLK to broaden its international footprint. The Reuters F2007/F2008 EPS consensus estimates for VCLK are $0.71/$0.83.

In the marketing world, the concept of "1-to-1 marketing" gets lots of buzz. After all, with the Internet, it should be easy to personalize marketing messages, right?

Not necessarily. If anything, it's proven to be quite difficult.

Well, that's something that Genius.com is trying to solve. In fact, the company recently snagged $19 million in venture funding. The lead investor was Accel Partners, with additional funding coming from existing investors Mohr Davidow Ventures, Emergence Capital and Walden International.

With Genius.com, you can put together compelling emails for sales prospects. From there, the system tracks the leads and what are they looking at on your website?

Something else that's important: it's easy to use. "There is no need for IT," said David Thompson, the CEO and co-founder of Genius.com, in an interview with me. "It only takes two minutes to setup. We wanted to delight our actual users."

The upshot: Genius.com's customers often come from word-of-mouth. Of course, that's perhaps the best 1-to-1 marketing system you can have.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

The economy may not be in recession yet, and there's a minor chance it will avoid one in 2008, but marketers/advertisers seem to be in 'recession-mode,' regarding the tone of their ads, The New York Times reported Monday.

Along with Wal-Mart (NYSE: WMT), the Times cited several corporations that have taken a 'tougher times ahead' approach with ads. These include Capital One (NYSE: COF), "Uncertain times call for a certain rate," Starbucks (NASDAQ: SBUX), which is testing a $1 coffee in Seattle, Washington, and Nissan (NASDAQ: NSANY), which is emphasizing the fuel economy of its 2008 Altima, rather than the car's styling and performance.

Stephen Quinn, Wal-Mart's chief marketing officer, told the Times, "When gas prices spiked last spring, we saw the pressure this put on our core customers."

Economic Analysis: With major ad markets in California and Florida bearing a large portion of the housing sector's slump, it's not surprising that corporations have altered ad campaigns to emphasize the money-saving / better value nature aspects of their products and services. But one should not equate this with Corporation America believing a recession is ahead. Ad tweaking indicates that a corporation doesn't anticipate a robust year in its sector, and is adjusting its operational stance.

A better indicator of Corporate America's view of the economy? Staff hiring. If dozens of corporations announce that they're laying off employees, that'd be an indication that a economic contraction is likely.

While privately-held EMI Group announced plans yesterday to cut around 2,000 jobs worldwide, the company also announced intentions to allow corporate sponsors to brand artists. According to British music journal NME, the plan will encompass connections to new releases from such large name acts as Coldplay, Kylie Minogue, and Babyshambles. This announcement coincides with several comments from EMI acts that they intend to withhold pending releases from the company until assurances can be made about marketing and digital promotion. Radiohead reportedly left EMI after assurances in those areas were not made by the record label, and when the company balked at giving the band rights to its back catalog.

A move like this should not be surprising, especially considering that other media and entertainment outlets have long used promotions of this sort to sell new products and releases. Most prominently are the deals film studios make for product placement and tie-ins with new films. Last year's Transformers comes to mind more than any other recent film in that regard. But where it is easy to insert a car for product promotion into a scene, the same cannot be said about music. Although it is unlikely Coldplay will start to sing about some new model car about to be revealed, the amount of control that artists may lose is daunting. The basic amount of attachment artists have toward albums seems to make this kind of deal unmanageable. If it is Britney Spears though, who would want to attach their brand to her at this point?

Unless the promotion is for some brand of musical device or instrument, this arrangement just seems hard to manage and especially hard to sell to artists that are very willing to withhold albums in light of issues already out of their control.

Microsoft is looking to revolutionize the way grocery stores are able to communicate with their shoppers. Microsoft (NASDAQ: MSFT) is rolling out MediaCart consoles later this year that will let grocery stores send advertisements to consumers depending on where they are located in their stores.

The basic concept behind the new MediaCart consoles is that users are able to log into a website from their home, enter a shopping list, and have that list waiting for them on a shopping cart when they get to the store. The first of these mediacarts will be in ShopRite supermarkets on the East Coast later this year. For shoppers that have a ShopRite loyalty card, they will be able to get online at home and enter their shopping lists. Once they hit the stores, they will then be able to swipe their cards into the MediaCart, and their list will magically appear.

The carts will be able to keep track of items as they are gathered and will even keep track of the consumer's running bill as well as give them the option to pay for their merchandise without having to wait in the checkout line. I'm not really sure how this would work with weighed items such as produce, but I'm sure Microsoft has thought of this as well.

Ad executive: "Guys, guys! I got an idea about how we can change the market's perception of our company and move Xerox (NYSE: XRX) into the 21st century."

CEO: "How exciting! A new product? An innovative marketing campaign?

Ad executive: Even better. A new logo.

The new logo (shown at right) marks the first time that Xerox has identified itself with an image rather than just "XEROX." And what a creative image it is: a circle with a little "X" and now "xerox" is written in lowercase! I shudder to think about how much was spent on Madison Avenue PR firms for that bit of marketing genius.

The move is part of a plan to update Xerox's stodgy image -- the stock hasn't been cool since the 1970s.

But according to The New York Times, "But Michael Watras, president of the brand consultancy Straightline International, said nothing short of a name change would wrest Xerox from the grasp of its copier reputation. 'They should have kept the Xerox brand on some products, but renamed the company.' he said. 'Without that, this is money poorly spent. If I were a shareholder, I'd be outraged.'"

I'm inclined to agree with Mr. Watras. When your name is used as a verb meaning to copy, it's hard to get past the image as a copy company with a simple logo change.

Email marketing can be quite effective. According to a report from the Direct Marketing Association, email marketing returned $51.58 in sales for each dollar spent. This compares to $17.07 for newspaper ads and $15.64 for direct mail.

The good news is that there are cost-effective email marketing tools, such as from Constant Contact (NASDAQ: CTCT).

But what are some useful strategies? Well, I had a chance to talk to Trynka Shineman, the senior vice president of North American marketing for VistaPrint (NASDAQ: VPRT). Let's take a look:

Getting Action: Try to cross-sell customers, such as through an order confirmation email. You can provide a special price and a link to a splash page to a relevant product offer.

"It's also important to create a sense of urgency," said Shineman. "Customers need to know not only that they are receiving something targeted to them, but a date encourages them to act quickly versus delaying the decision."

In the first six months of this year, Coca-Cola (NYSE: KO) was mentioned on network television 3,054 times in product placements, according to Nielsen data cited by the New York Times.

Think about it: every time Paula Abdul gulps down a Coke -- at least that's what it says on the can -- on American Idol, that's put on the tab of the Atlanta-based company. Neither is it coincidental when a brand is mentioned on shows like Big Love, American Dad or Scrubs.

Welcome to the post-commercial world. The theory is that the 30-second spot is so 2001 and that people -- particularly the young ones advertisers want to attract -- are savvy enough to avoid most advertising. That's why product placements are soaring.

FCC Chairman Kevin Martin, for one, is concerned that the public may not always be aware that someone is trying to sell them something. That concern is justified when it comes to children who are bombarded with show after show that are just excuses to sell them crap.

Unfortunately, though, the era of product placements has only begun.

This is pretty appalling: Not content with exposing kids to junk food on television and on every street corner, McDonald's (NYSE: MCD) has apparently decided that it needs to reach out to kids on their report card envelopes.

An Orlando parent was upset when her 9-year-old daughter brought home her report card. But it wasn't Ds and "acts obnoxious in class" comments that annoyed this mom: the envelope the child brought home displayed a nice advertisement for McDonald's -- the chain whose food can have such a bad impact on health that it inspired a hit documentary.

The Campaign for a Commercial Free Childhood is, of course, not too happy about all this, and issued a press release demanding that the ads be pulled.



As a practical matter, these ads aren't really a big deal. For better or for worse, kids are exposed to fast food advertising pretty much from the cradle to the grave. But does the school really need cash so badly that it would participate in a campaign to market unhealthy food to children?

Another problem I have with it: The ad offered kids a free Happy Meal for their good work. Shouldn't kids be taught to work for knowledge and pride, not crappy food and imported toys?