Record companies spin off into CD singles
Warner Music, Sony Music Entertainment Polska and PolyGram this week began selling CD singles in two Warsaw record stores.
Up until now, only EMI has been selling single titles in Poland. The market has been dominated by black-market sales of titles illegally imported to Poland.
"We simply want to stop it somehow," said Rafal Baran, Sony's marketing manager.
On the black market CD singles tend to sell for up to zl. 40 ($16) apiece, but the legitimate titles that went on sale beginning this week are selling for an average retail price of zl. 17 ($7). That translates into a 35% profit margin for retailers Planet Record and Digital. The retail price for the single-title CD is about a third of a full-album CD.
"This is a low-cost way for the consumer to get into CDs," Baran said. Currently, only 12% of the population in Poland owns a CD player.
Executives from the three record companies said that customers have been asking for single titles, and there is a niche to be filled.
"We are basically trying to fill the needs of the customer," said Rob Anderson, director of marketing and distribution for Polton Records & Tapes, the exclusive distributor in Poland for Warner. He added that the record companies are targeting not just end-users, but disc jockeys as well. Many single CDs contain four dance mixes of a particular song.
Each record company plans to release up to 20 titles this year, starting with international artists such as Rod Stewart and Mariah Carey, but may expand later to Polish titles.
Saving face
Poland is getting a lot of positive press during these days of political uncertainty. Paid press, that is.
This week's international edition of Newsweek magazine features an eight-page advertising supplement touting investment opportunities here.
The supplement includes advertisements for Bank Polska Kasa Opieki SA, Wielkopolski Bank Kredytowy SA and Polish Airlines LOT.
The Polish Agency for Foreign Investment (PAIZ) took out a one-third-page ad in the supplement showing the rise in foreign investment here over the last four years.
Wladyslaw Serwatowski, head of PAIZ's promotion department, said the agency is taking a more aggressive approach to lure foreign investors here. Last week, during the world economic conference in Davos, Switzerland, the agency took out a full-page ad in the international edition of Time magazine targeting potential German investors.
While he doesn't expect any immediate results from such advertisements, Serwatowski said the publicity tends to spark phone calls from potential foreign investors.
"It's purely a prestige exercise," said Slawomir Majman, managing director of Biuro Reklamy, a Polish advertising agency that used the Newsweek supplement to advertise exhibitions it is organizing in Poland this year. "It's not a way of generating business for our agency," he said, though it may help in future pitches if a potential client remembers the agency name.
While the Newsweek supplement appears to be on track with all the numbers - GDP growth, investment figures, etc. - some of the statements require additional digging. For example, the article on the banking sector declares that "new technology and services have completely transformed Polish banks."
Well, that may depend on how far back you're looking.
Moving pictures
Polish film distributor ITI Cinema has dumped sister firm McCann Communications for an outside advertising agency.
Young & Rubicam Poland won the United International Pictures account from McCann Communications - formerly the media department of ITI/McCann Ericson and one of nine companies under the International Trading and Investments (ITI) Holding Co. umbrella.
Previously, McCann handled media buying for ITI Cinema. But under pressure from the London headquarters of United International Pictures, ITI Cinema decided to go with a full-service agency, said Jacek Caputa, in charge of promotions for ITI Cinema. Young & Rubicam handles worldwide advertising for United International Pictures.
"They don't know much about the movie business," Caputa said of Y&R. "But they know much more than we know about advertising."
Y&R's other new coup: the Samsung account, taken over from Saatchi & Saatchi.
Cheap tease
Wondering what all those mysterious new red billboards all over town asking "What do I do now?" mean?
It's J. Walter Thompson's new teaser campaign for ABC Medicover, a private health-care clinic and ambulance service.
The outdoor campaign began two weeks ago with 100 billboards, 50 in Polish and 50 in English, targeting well-paid professionals.
Marek Gargala, senior account manager with J. Walter Thompson, said the campaign is aimed at drawing attention to a new type of service in Poland.
"The ABC Medicover name didn't say anything to anyone in Poland," he said. Besides, he noted, the four-week outdoor campaign costs only $250,000, compared to $350,000-$400,000 for a month-long television campaign.
The mystery will be revealed next week, as old billboards are covered with new ones containing bandages across the signs with the ABC Medicover name.
Up until now, only EMI has been selling single titles in Poland. The market has been dominated by black-market sales of titles illegally imported to Poland.
"We simply want to stop it somehow," said Rafal Baran, Sony's marketing manager.
On the black market CD singles tend to sell for up to zl. 40 ($16) apiece, but the legitimate titles that went on sale beginning this week are selling for an average retail price of zl. 17 ($7). That translates into a 35% profit margin for retailers Planet Record and Digital. The retail price for the single-title CD is about a third of a full-album CD.
"This is a low-cost way for the consumer to get into CDs," Baran said. Currently, only 12% of the population in Poland owns a CD player.
Executives from the three record companies said that customers have been asking for single titles, and there is a niche to be filled.
"We are basically trying to fill the needs of the customer," said Rob Anderson, director of marketing and distribution for Polton Records & Tapes, the exclusive distributor in Poland for Warner. He added that the record companies are targeting not just end-users, but disc jockeys as well. Many single CDs contain four dance mixes of a particular song.
Each record company plans to release up to 20 titles this year, starting with international artists such as Rod Stewart and Mariah Carey, but may expand later to Polish titles.
Saving face
Poland is getting a lot of positive press during these days of political uncertainty. Paid press, that is.
This week's international edition of Newsweek magazine features an eight-page advertising supplement touting investment opportunities here.
The supplement includes advertisements for Bank Polska Kasa Opieki SA, Wielkopolski Bank Kredytowy SA and Polish Airlines LOT.
The Polish Agency for Foreign Investment (PAIZ) took out a one-third-page ad in the supplement showing the rise in foreign investment here over the last four years.
Wladyslaw Serwatowski, head of PAIZ's promotion department, said the agency is taking a more aggressive approach to lure foreign investors here. Last week, during the world economic conference in Davos, Switzerland, the agency took out a full-page ad in the international edition of Time magazine targeting potential German investors.
While he doesn't expect any immediate results from such advertisements, Serwatowski said the publicity tends to spark phone calls from potential foreign investors.
"It's purely a prestige exercise," said Slawomir Majman, managing director of Biuro Reklamy, a Polish advertising agency that used the Newsweek supplement to advertise exhibitions it is organizing in Poland this year. "It's not a way of generating business for our agency," he said, though it may help in future pitches if a potential client remembers the agency name.
While the Newsweek supplement appears to be on track with all the numbers - GDP growth, investment figures, etc. - some of the statements require additional digging. For example, the article on the banking sector declares that "new technology and services have completely transformed Polish banks."
Well, that may depend on how far back you're looking.
Moving pictures
Polish film distributor ITI Cinema has dumped sister firm McCann Communications for an outside advertising agency.
Young & Rubicam Poland won the United International Pictures account from McCann Communications - formerly the media department of ITI/McCann Ericson and one of nine companies under the International Trading and Investments (ITI) Holding Co. umbrella.
Previously, McCann handled media buying for ITI Cinema. But under pressure from the London headquarters of United International Pictures, ITI Cinema decided to go with a full-service agency, said Jacek Caputa, in charge of promotions for ITI Cinema. Young & Rubicam handles worldwide advertising for United International Pictures.
"They don't know much about the movie business," Caputa said of Y&R. "But they know much more than we know about advertising."
Y&R's other new coup: the Samsung account, taken over from Saatchi & Saatchi.
Cheap tease
Wondering what all those mysterious new red billboards all over town asking "What do I do now?" mean?
It's J. Walter Thompson's new teaser campaign for ABC Medicover, a private health-care clinic and ambulance service.
The outdoor campaign began two weeks ago with 100 billboards, 50 in Polish and 50 in English, targeting well-paid professionals.
Marek Gargala, senior account manager with J. Walter Thompson, said the campaign is aimed at drawing attention to a new type of service in Poland.
"The ABC Medicover name didn't say anything to anyone in Poland," he said. Besides, he noted, the four-week outdoor campaign costs only $250,000, compared to $350,000-$400,000 for a month-long television campaign.
The mystery will be revealed next week, as old billboards are covered with new ones containing bandages across the signs with the ABC Medicover name.
