Here it is J.D.
dailynews.yahoo.com
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Saturday May 8 2:04 AM ET
Dell Computer Tabs Ammirati For U.S. Campaign
By Daniel Grebler
NEW YORK (Reuters) - Dell Computer Corp. (Nasdaq:DELL - news), which last month parted ways with its advertising agency of 11
years, Thursday selected the New York office of Ammirati Puris Lintas to handle the ad campaign for its U.S. Home and Small Business
Group.
Dell's choice of Ammirati Puris, a unit of the Interpublic Group of Companies Inc. (NYSE:IPG - news), comes less than a year after the end of the agency's
relationship with Dell competitor Compaq Computer Corp. (NYSE:CPQ - news)
The appointment of Ammirati Puris to the Dell account, worth an estimated $70 million to $90 million, is the second round in a game of ''musical chairs'' played by
personal computer makers and their ad agencies. In April, long-time Dell agency Goldberg, Moser O'Neill of San Francisco resigned the account after Dell put it in
review. It subsequently signed on with Micron Electronics Inc. (Nasdaq:MUEI - news), a top competitor of both Dell and Compaq in the market for PCs sold
directly to businesses and consumers.
The market for home and small business computers is Dell's fastest-growing business segment, the Round Rock, Texas-based company said. The unit's small
business sales grew 60 percent annually over the past two years, while sales to consumers climbed 80 percent.
Dell is counting on Ammirati to propel it past Compaq, the largest seller of personal computers, which last month shocked the industry by removing the chief
executive who had led its stunning growth over the past decade.
A spokesman for Ammirati Puris declined to comment on the agency's previous ties to Compaq and its move to Dell, and said Ammirati Chairman, CEO and Chief
Creative Officer Martin Puris was unavailable to comment.
Dell said Ammirati's previous ties with Compaq had no influence on its choice of the agency.
''We never looked at their existing or previous client set,'' said Frank Muehleman, vice president and general manager of Dell's Small Business division.
''We needed someone with the systems and people to execute flawlessly,'' he told Reuters in an interview. ''These guys fit with us very well ... Having a partner
who keeps pace with us is usually a challenge.''
Muehleman said that despite Dell's strong growth in both the business and consumer markets, ''There is a segment of the market that's not aware of Dell, or it's not
as high as we'd like it to be. We want to become the No. 1 consumer and small business computer maker.''
The month-long review included Temerlin McClain, an Irving, Texas-based unit of True North Communications Inc. (NYSE:TNO - news), and Boston-based
Bronner. Goldberg, Moser O'Neill had initially been invited to participate in the review.
''I don't know if having Compaq's old agency is a particularly good idea,'' said Roger Kay, an analyst who follows Dell for Framingham, Mass.-based International
Data Corp. ''From a brand image point of view, Compaq's marketing has not been off the map. It's hard to say.
''I think it's surprising that people didn't know who Dell was or what they did,'' he added. ''It turns out that there are lots of people who don't.'' |
