April 30, 1998
                     Advertising                    Cross, IBM Use Pen and Notepad                    To Convey CrossPad's Technology
                     By ANDREA PETERSEN                     Staff Reporter of THE WALL STREET JOURNAL
                     Tucked into techies' favorite computer magazines, hidden among ads for                    high-tech gizmos, is a retro, almost quaint, image: a yellow notepad and                    pen.
                     That anachronistic duo is the focal point of a new advertising campaign for                    the CrossPad, a joint venture between Cross Pen Computing Group, a                    division of A.T. Cross, and International Business Machines. The Cross                    Pad, introduced last month, allows users to make handwritten notes on an                    ordinary notepad, upload them to a personal computer and then                    manipulate chunks of the handwritten text, such as pasting them into other                    documents or faxing them.
                     Small Budget
                     The advertising challenge, Cross said, was to create a campaign that can                    convince people such a combination of old and new technology will work,                    as well as conveying the cool things the CrossPad can do without being                    mind-numbingly wordy -- and all that on a relatively small ad budget of                    about $2.3 million.
                                          So the ad campaign, mainly using print,                                         pre-empts consumer skepticism by                                         acknowledging it: "A notepad that uploads                                         right into your PC?" and "A notepad with a                                         memory chip?" are the taglines the campaign                                         uses. The product's primary functions are                                         boiled down into five pithy soundbites.
                     "One of the great fears of technology is that it's not going to live up to your                    expectations," says Richard Ellenson, president of Ellenson Group, the                    New York-based agency that created the ads. "We needed to convince                    people that something this simple will ultimately work."
                     Ellenson also needed to convince people that A.T. Cross, the                    152-year-old pen company, is hip enough for the digital world. Most                    people associate the Lincoln, R.I., company with high-end pens, or those                    pen-and-pencil sets proffered by grandparents at college graduations --                    not high-tech gadgets. To make the break, Cross Pen Computing is even                    using a separate ad agency from its parent -- scrappy start-up Ellenson                    instead of Boston-based Pagano, Schenck & Kay Advertising.
                     Nothing Hip Here
                     But the Ellenson ads shirk the hip, self-conscious lingo and graphics that                    often plague ads for electronic products. Instead, they simply convey the                    link between high-tech and low-tech: a traditional-looking Cross Pen is                    poised to write, but three little red marks depicting radio waves show that                    this pen is wired. A thin blue line, intersected by the word "upload,"                    connects the pad to a PC monitor. The same notes written on the pad are                    displayed on the computer screen.
                     Of the simplicity, Mr. Ellenson says, "We're probably proudest of the                    discipline we showed in getting out of the way of this wonderful thing. We                    realized we had a dancing bear and we didn't want to overwhelm the bear                    with the trainer."
                     Cross, which is doing all the advertising and most of the marketing for the                    product, says it is targeting PC-savvy professionals who go to a lot of                    meetings. "It is for anybody who has to take notes but for cultural reasons                    can't use a notebook [computer] or a laptop," says Brian Mullins, Cross                    Pen Computing's director of marketing. "For sales people, it's still                    culturally unacceptable to sit in front of a customer and type away at a                    keyboard."
                     Though some ads will appear in business publications as well as                    newsweeklies such as Time and Newsweek, the company is allocating                    almost half its budget to ads in major computing magazines like PC World                    and Wired.
                     Flying High
                     Cross also hopes to lure jet-lagged professionals trapped in airplanes. The                    company is allocating about 15% of the budget to ads in in-flight                    magazines such as Delta Sky and American Way. Cross also is producing                    a three-minute video to air on United Airlines' in-flight monitors. And                    hands-on customer displays of the CrossPad, which sells for $399, have                    already been shipped to big retailers such as CompUSA and Staples.
                     The CrossPad works like this: The user writes notes on a conventional                    paper pad with a special Cross pen that houses a radio transmitter, which                    beams the handwriting to an electronic clipboard behind the notepad and                    stores it. Notes can be uploaded to a PC and then viewed on the screen in                    handwritten form; or the notes can be converted electronically into                    computerized text, though the software doesn't read the handwriting                    perfectly.
                     The CrossPad is the third product launched by Cross Pen Computing.                    A.T. Cross began the division two years ago to "move the company more                    into the 21st century," says Robert Byrnes, the division's president and                    chief executive.
                     While the division contributed only $2.8 million to the company's revenue                    in 1997, Cross expects it to bring in about $25 million this year. That                    could be good news for a company that reported a loss of $1.3 million for                    the first quarter, compared with net income of $806,000 a year earlier,                    partly because of poor pen sales in Asian markets beset by recent turmoil.
                     "The whole luxury-pen market is in a bit of a funk," says Sheldon                    Grodsky, director of research at Grodsky Associates, a South Orange,                    N.J., research firm that follows Cross. "If anything good is going to happen                    for A.T. Cross in 1998, odds favor it happening on the computer side of                    the business."
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