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APPAREL COMPANIES GETTING HIT BY HIGHER FABRIC COSTS
Sharp price increases for cotton and wool have "compounded the woes of the apparel industry, which has been suffering for months from sluggish consumer demand," according to Teri Agins of the WALL STREET JOURNAL. Apparel makers "are watching their profit margins erode further because they can't risk losing retail sales by passing on higher fabric costs." Russell Corp. has reported that 1stQ net income fell two cents to $.31/share from last year. While the 1st quarter is traditionally slow due to clear outs of winter merchandise, this year apparel makers cannot count on relief anytime soon "because stores remain saddled with unsold inventory" (WALL STREET JOURNAL, 4/21).
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CORRECTION: WHITE SOX AD CAMPAIGN ALIVE AND WELL
Yesterday's round-up of the ad campaigns of the 28 MLB teams mischaracterized the White Sox's approach. Early this year, the team elicited letters from fans on their feelings toward the Sox and the game itself with a "Dear Sox" campaign. According to Rob Gallas, Senior VP of Marketing & Broadcasting, while many were strike-related, the letters also included very "personal, poignant and humorous" accounts of the fans' experiences through the years. The White Sox recently selected the best 75 of the over 2,000 letters received and shot footage of those fans relating their baseball and White Sox memories. That footage was then edited into TV ads, seven of which are already running. The campaign, which will run throughout the season, is being produced by the team's ad agency, DiMeo-Rosen Partners of Chicago, and could include as many as 15 spots featuring 25 fans. The spots range from a fan who has followed the team since 1925 to a man who chose to get tatooed with a Sox logo rather than his wife's name. The fan responses and the ensuing media campaign will also be featured in radio and newspaper ads, the White Sox game programs, and the extra footage will be used in scoreboard vignettes during games. There are also plans for a coffee-table book, with proceeds going to charity. THE DAILY regrets the error.
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DRAFT COULD SPUR JAGUAR MERCHANDISE SALES ... AGAIN
Jacksonville-area retailers and regional manufactures expect a "surge in sales of Jaguars apparel similar to peak sales times during Christmas" as the NFL draft takes place this weekend. Some NFL officials predict that the draft will kick off another "buying frenzy" on apparel that will last until the start of the season. Sales of Jaguar apparel were last boosted when the team made their recent logo change (Earl Daniels, FLORIDA TIMES-UNION, 4/21).
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FANFEST COMING TO INDY MOTOR SPEEDWAY
The Indianapolis Motor Speedway announced plans for the inaugural Indy FanFest -- a temporary racing theme park open the last three weekends in May in the infield of the track. The free event culminates with the running of the Indy 500. Attractions include computer simulators, two theaters, children's pedal car racing and various racing displays. Sponsors include: LCI Int'l, Chevrolet, Firestone, DeLong, Logo 7, Salem, Miller Brewing, Budweiser, Kodak, Marlboro, Goodyear, MBNA, Valvoline, IBM, Papyrus, Delco Electronics, Pennzoil and Skybox (Indy Motor Speedway).
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MARKETPLACE ROUND-UP
Gillette Co. reported 1stQ earnings of $196.1M, up 20% from $164M a year ago. Gillette credits higher earnings with new product development, geographic expansion and an "improved product mix" (WALL STREET JOURNAL, 4/21)....Puma USA has awarded its ad account to Partners & Simons of Boston. With billings estimated between $4-8M, the account was previously handled by Berlin Cameron Doyle in New York (N.Y. TIMES, 4/21)....Sprite has filmed its second ad featuring NBA rookie Grant Hill. In the ad, Hill is challenged in one-on-one by "Little Tommy" who just drank a Sprite (USA TODAY, 4/21)....The City of Pittsburgh and the U.S. Cycling Federation announced that the '96 Thrift Drug Classic and the '96 Thrift Drug Women's Invitational have been named as events that count toward qualifying for the '96 U.S. Olympic Team (Thrift Drug)....The CFL Argonauts and two other CFL teams will feature new-look jersey fronts with four-inch numerals over the left chest (TORONTO STAR, 4/21)....Video-game maker Interplay Productions has announced the formation of VR Sports, a division dedicated to sports software for game consoles and PCs (Interplay).... Cobra Golf has filed suit in San Diego charging McLaren Golf Corp. with importing over-sized knock-offs (Cobra Golf).
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MORE MOTORSPORTS SPONSORSHIP NEWS
Pontiac, which dramatically increased its involvement with NHRA teams in '95, will become the NHRA's official car in '96 replacing Oldsmobile....Amoco has become an associate sponsor of the Bill Elliott McDonald's NASCAR Winston Cup team. Amoco will also be the name and title sponsor of the Amoco Knoxville Nationals for sprint cars (ERNIE SAXTON'S MOTORSPORTS SPONSORSHIP MARKETING NEWS). In other news, TNN and the Dover Downs Int'l Speedway extended their TV contract through 1999. The new five- year contract will keep the track's two NASCAR and Busch series races televised live on TNN every year through '99 (NASCAR NEWS, 4/12 issue). CATCH THIS RISING STAR: NASCAR driver Jeff Gordon is profiled in the current issue of SPORTS ILLUSTRATED. Ed Hinton writes, "Gordon, the little (5'7") prodigy from the San Francisco Bay Area -- darkly handsome, polished, polite, shy -- is the rising star many NASCAR people think can lead them out of the wilderness." In his third Winston Cup season, Gordon has won more races and more poles than any other driver on the circuit (SPORTS ILLUSTRATED, 4/24).




