Easy Riders
Subaru, Cherry Hills, NJ, has tapped four-time Tour de France champion Lance Armstrong as its new spokesperson, replacing actor Paul Hogan. The agreement also ushers in a new tagline with “Subaru. Driven By What’s Inside,” which replaces “The Beauty of All-Wheel Drive” tag that debuted in 1995. While Subaru remains mum on terms of the agreement, industry estimates peg the five-year deal to be worth $12 million.
“Paul Hogan had done an excellent job promoting the Baja but we were looking for someone who could represent our entire product line,” says Subaru spokesperson Mike Whelan.
A national campaign featuring Armstrong will debut in April. Dallas-based Temerlin McClain handles. Subaru’s relationship with Armstrong stretches back 12 years, to when Armstrong was a member of a Subaru-sponsored cycling team. Armstrong also has endorsement deals with Coca-Cola, Bristol-Myers Squibb, the U.S. Postal Service and Nike.
Avon Products, New York City, and J.C. Penney Co., Plano, TX, have put the kabosh on their alliance to sell Avon’s beComing line of cosmetics. The deal had been Avon’s first attempt at selling through a retailer rather than directly to consumers. The beComing line will now be sold by Avon Beauty Advisors, while J.C. Penney will stop selling cosmetics and skin care products in favor of women’s accessories. Avon teamed with J.C. Penney over two years ago in a deal that originally included Sears, Roebuck and Co., Hoffman Estates, IL. Sears pulled out of the deal before it could be implemented.
Continental, Delta and Northwest airlines are going ahead with a marketing alliance despite contention with the Department of Transportation over some of the terms of the deal.
The U.S. Department of Justice approved the airlines’ plans on Jan. 17, allowing the three to share frequent-flier miles and airport lounges, and to codeshare for booking flights.
The alliance gives consumers more flights, more low-priced seats, access to lounges, frequent-flier reciprocity and “seamless service to thousands of new markets,” per the airlines. This is the biggest airline marketing alliance in the U.S. The DOJ spent six months reviewing the deal to prevent antitrust problems, since the three airlines control about one third of U.S. air travel. A five-year-old deal between Continental and Northwest has brought consumers $1.5 billion in annual savings, the airlines claim. United Airlines and U.S. Airways began a similar deal last year.
