Under the Influence with Terry O'Reilly - S10E14 - One Toke Over The Line: 50-Year Marketing Milestones

Episode Date: April 8, 2021

This week, we talk about companies and products that turn 50 years old this year. Back in 1971, some of the best-selling products were created that are still best-sellers today. There were also a numb...er of famous advertising campaigns launched that year. Hosted on Acast. See acast.com/privacy for more information.

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Starting point is 00:00:00 Hi, it's Terry O'Reilly. As you may know, we've been producing a lot of bonus episodes while under the influences on hiatus. They're called the Beatleology Interviews, where I talk to people who knew the Beatles, work with them, love them, and the authors who write about them. Well, the Beatleology Interviews have become a hit, so we are spinning it out to be a standalone podcast series. You've already heard conversations with people like actors Mark Hamill, Malcolm McDowell, and Beatles confidant Astrid Kershaw. But coming up, I talk to May Pang, who dated John Lennon in the mid-70s. I talk to double fantasy guitarist Earl Slick, Apple Records creative director John Kosh. I'll be talking to Jan Hayworth,
Starting point is 00:00:46 who designed the Sgt. Pepper album cover. Very cool. And I'll talk to singer Dion, who is one of only five people still alive who were on the Sgt. Pepper cover. And two of those people were Beatles. The stories they tell are amazing. So thank you for making this series such a success. And please, do me a favor, follow the Beatleology interviews on your podcast app. You don't even have to be a huge Beatles fan, you just have to love storytelling. Subscribe now and don't miss a single beat. We'll see you next time. new locations. What matters is that you have something there to adapt with you, whether you need a challenge or rest. And Peloton has everything you need, whenever you need it. Find your push. Find your power. Peloton. Visit Peloton at onepeloton.ca. This is an apostrophe podcast production. You're not you when you're hungry
Starting point is 00:02:27 You're in good hands with all things You're under the influence with Terry O'Reilly One night back in 1971, talk show host Dick Cavett was interviewing a guest. His name was Jerome Rodale. Rodale was an author and magazine publisher. For the previous 20 years, he promoted controversial, non-traditional health and nutritional advice.
Starting point is 00:03:15 He was an early proponent of organic gardening and healthy living. In his autobiography, he described himself as a, quote, weak and sickly young man. But when he started growing everything he ate, he found the results to be miraculous. Rodale had a small but devoted audience for most of the 50s and 60s, but once the counterculture took hold, the circulation of his publications skyrocketed. His Organic Gardening and Farming magazine sold 720,000 copies in 1971, and his
Starting point is 00:03:48 health magazine Prevention soared to over 1 million readers. On June 6, 1971, the New York Times magazine put him on the cover, calling him the guru of the organic food cult. That notoriety landed him on the Dick Cavett show two days later. Jerome Rodale was Cavett's third guest that night. He talked about organic foods, the dangers of sugar,
Starting point is 00:04:17 and how he worshipped manure. It was a very amusing conversation, and Cavett made a mental note to have him back on in the future. 72-year-old Rodale said he was in very amusing conversation, and Cavett made a mental note to have him back on in the future. 72-year-old Rodale said he was in such good health, he offered to do a backflip for Cavett. He even said that he fell down the stairs yesterday and laughed all the way. Rodale declared he had decided to live to be 100,
Starting point is 00:04:40 then said, I've never felt better in my life. A few minutes later, Jerome Rodale died of a heart attack right there on the stage, in front of the audience. At first, Dick Cavett didn't know what to do. Moments before he had brought out his next guest, Rodale had moved over to the next chair, Cavett started the interview. Then Rodale made a rude snoring sound.
Starting point is 00:05:10 That made the audience laugh. Then his head tilted sideways and the snoring continued. Cavett grew alarmed and asked Rodale if he was all right. Rodale snored again and the crowd roared. Then the snoring stopped. His head rolled back, mouth open. Cavett jumped up and checked Rodale's wrist for a pulse, then ran to the side of the stage and asked,
Starting point is 00:05:35 Is there a doctor in the audience? The crowd went silent. Four medical professionals who happened to be there that night ran on stage to try and revive him. An ambulance was called. But it was too late. Rodale was gone. Over the years, many people
Starting point is 00:05:57 have said to Cavett, I'll never forget the look on your face when that guy died on your show. Cavett then always asks the same question. Were you in the audience? They will inevitably say no. They saw it on television. But that's a false memory.
Starting point is 00:06:15 The episode never aired. The taping was to air later that night, but a rerun was quickly inserted instead. To this day, Dick Cavett gets asked about that fateful night at least 20 times a year, which is a lot considering the event took place way back in 1971. A lot of interesting events took place way back in 1971. Many famous companies and products were born that year, and several iconic advertising campaigns were launched.
Starting point is 00:06:57 The 60s were over, a recession had just ended, and inflation was at its highest point since the mid-50s. The counterculture was slowly taking over the steering wheel. There are several interesting 50-year milestones this year. Let's take a trip down memory lane. You're under the influence. While doing some research for another episode, I came across an article about products that were turning 50 this year. That list was fascinating and surprising.
Starting point is 00:07:47 So I decided to dig around a little more. For example, Starbucks is 50 years old now. Kind of surprising, but it was started in 1971. That was about 32,646 stores ago. Time flies. One of the advertising campaigns I remember very vividly from 1971 was for Memorex.
Starting point is 00:08:12 Hard to believe it's 50 years old now. The Leo Burnett advertising agency in Chicago was asked to come up with a new TV commercial to promote Memorex's new line of blank cassette tapes. Portable tape recorders were popular, cassette decks were in cars,
Starting point is 00:08:28 and Memorex saw a big opportunity. Someone at the ad agency mentioned that the human voice can shatter glass when it hits a certain high frequency at a certain volume. That led to an interesting television commercial idea. First, they needed a great singer. Someone suggested jazz great Ella Fitzgerald. Her voice was remarkable and her pitch was extraordinary.
Starting point is 00:08:56 So, an audition was arranged at the Algonquin Hotel in New York. Ella was asked to sing the ending of the song How High the Moon. A wine glass was placed on a table. Ella kept singing the last note over and over, climbing higher each time
Starting point is 00:09:14 until... the glass broke. She got the job. Not long after, a TV commercial was filmed that showed Ella hitting that amazing note and shattering the glass. Then, a recording of Ella was played back on a Memorex tape.
Starting point is 00:09:32 Ella Fitzgerald. She's attempting to shatter a glass with her amplified voice. She did it. You are now hearing the Memorex cassette tape recording we just made of Ella. Now you'll see a glass shatter again. But is it Ella, or is it Memorex? I'll never tell. When the glass broke twice, it astounded viewers. That's the power of a demonstration.
Starting point is 00:10:03 When a product's chief benefit can be dramatically demonstrated in a commercial, rather than just talked about, it's incredibly persuasive. Clearly, Memorex's recording reproduction was precise with minimal quality loss. That commercial and the resulting campaign hoisted Memorex to the top of the cassette category in the 70s, blowing rivals Maxell, TDK, and Scotch out of the water. Is it live or is it Memorex became a pop culture catchphrase. There was another reason why that commercial was such a success. Ella Fitzgerald was a jazz legend, and she lent her authenticity to that
Starting point is 00:10:46 ad. She had begun her recording career in the 1930s, hit a peak in the 40s, and had an acclaimed body of work. Interesting to note, Ella Fitzgerald's career was in decline in 1971. She was 54,
Starting point is 00:11:02 and jazz wasn't as fashionable as it once was But the Memorex campaign became so popular it ignited a career revival As one critic said at the time Ella Fitzgerald's pitch for Memorex probably did more for her than 100 concerts That 50-year-old pitch had perfect pitch
Starting point is 00:11:23 for both Memorex and Ella Fitzgerald. 50 years ago, the cost of a Super Bowl commercial was just $72,000. The Montreal Canadiens won the Stanley Cup, Richard Nixon was Time magazine's Man of the Year. And McDonald's had two landmark successes. The first was the launch of McDonald's most famous slogan. Keith Reinhardt was the creative director at McDonald's advertising agency in 1971.
Starting point is 00:12:02 Many years later, in the 80s, that agency would merge with the agency I worked at. Keith became chairman, and that's when I met him. But back in 71, Reinhard was given the assignment
Starting point is 00:12:14 to come up with a new campaign for McDonald's, based on research which revealed that moms needed an escape from meal planning, dads needed an escape from the high price of restaurant food, and kids needed an escape from meal planning, dads needed an escape from the high price of restaurant food,
Starting point is 00:12:26 and kids needed an escape from broccoli and table manners. Reinhardt came up with the idea of comparing McDonald's to an island getaway. The McDonald's staff were friendly, the food was good, and the whole experience was affordable. Reinhardt pitched the line, Come to the McDonald's Islands. They wrote a catchy jingle with an island flavor. McDonald's liked it,
Starting point is 00:12:50 and Reinhardt headed off to Hollywood to film the commercial. During the first day of shooting, Reinhardt got a frantic call from McDonald's legal department. Apparently, a chain of root beer stands
Starting point is 00:13:02 somewhere in the Southwest was marketing its locations as Islands of Pleasure. The film shoot was abruptly cancelled, the commercial's air date was just days away, and Keith Reinhardt suddenly had no commercial. So Reinhardt jumped on a plane and flew to New York to meet with the top jingle composer. When that composer asked him what the new slogan was, he said he didn't have one yet.
Starting point is 00:13:31 So the composer sat down at the piano to work on some music, while Reinhard frantically worked on some lyrics. He came up with, We're so near yet so far away, so get up and get away to McDonald's. A jingle was recorded and presented to McDonald's. They loved the melody and hated the words. Reinhardt now had a great jingle with seven blank notes. So he scoured the research again and noticed that many people used the word break when talking about the getaway they needed.
Starting point is 00:14:04 Keith took that word and wrote breakaway, then take a break, then take a break today. Then it came to him. You deserve a break today. It fit perfectly into the melody, McDonald's loved it, and in 1971, 50 years ago, McDonald's most famous jingle hit the air. You deserve a break today So get up and get away To McDonald's A classic jingle born of desperation, not inspiration.
Starting point is 00:14:49 McDonald's is celebrating a second 50-year milestone this year. The creation of the Quarter Pounder. Now, I assume the Quarter Pounder had been around much longer than just 50 years. But not so. The Quarter Pounder was created by a franchisee named Al Bernadin in 1971. He owned two McD's locations in Fremont,
Starting point is 00:15:12 California. Bernadin felt there was something missing in the McDonald's menu. Specifically, they needed something to offer people who wanted a, quote, higher ratio of meat to bun. So, he created a burger with a pre-cooked ratio of meat to bun. So he created a burger with a pre-cooked weight
Starting point is 00:15:27 of just over four ounces. He called it the Quarter Pounder, which was much better than his other option, the Big Four Ouncer. Bernadine introduced the burger at his locations with a sign that said,
Starting point is 00:15:41 Today Fremont, Tomorrow the World. Big Al wasn't wrong about that. The Quarter Pounder was an instant success. The name was trademarked, and it became a McDonald's menu item worldwide. Interesting side note. A&W decided to give the Quarter Pounder
Starting point is 00:16:02 some competition in the 1980s. So it introduced the Third the Quarter Pounder some competition in the 1980s. So it introduced the third-of-a-pound burger. It was priced the same as the Quarter Pounder, but with a third of a pound of beef instead of just a quarter pound. It even outperformed the Quarter Pounder in taste tests. But nobody bought it. When A&W did focus groups to try and figure out why, the reason was simple
Starting point is 00:16:26 and hilarious. It turns out people suck at fractions. More than half the people in the focus groups questioned the price of the third pounder. They wanted to know why they should have to pay the same price for a third of a pound as they did for a quarter pound
Starting point is 00:16:41 at McDonald's. They said you're overcharging us. You're ripping us off. People genuinely thought a third of a pound was less than a quarter pound. They thought three was less than four. True story. And we'll be right back in 21 and one-third seconds.
Starting point is 00:17:03 I've done the math. If you're looking for flexible workouts, right back in 21 and one-third seconds. I've done the math. routines, new locations. What matters is that you have something there to adapt with you, whether you need a challenge or rest. And Peloton has everything you need, whenever you need it. Find your push. Find your power. Peloton. Visit Peloton at onepeloton.ca.
Starting point is 00:17:46 You're listening to Season 10 of Under the Influence. If you're enjoying this episode, you might also like The World's Oldest Brands, Season 5, Episode 14. You'll find it in our archives wherever you download your pods. FedEx is 50 years old this year, and it has a great story. Fred Smith was a U.S. Marine pilot in Vietnam and had flown 200 combat missions. He understood planes. Back in 1971, Smith had an idea. He wanted to start a package delivery service that worked on the principle of spokes and hubs. Instead of crisscrossing
Starting point is 00:18:34 the country with packages, they would all be sent to one hub, then smartly rerouted to spokes across the country. He wanted to be able to deliver packages overnight, anything from computer parts to blood plasma. This was a revolutionary thought in 1971. So he started Federal Express with some inheritance money. He chose Memphis as headquarters because it was close to the geographical center of the U.S., and the airports were rarely closed
Starting point is 00:19:05 because of bad weather. But with the high cost of jet fuel due to the OPEC oil crisis, the company suffered $26 million in losses. Then Fred Smith did something extraordinary that we've mentioned in a past episode. He didn't have enough money to pay his pilots or fuel the planes. He only had $5,000 left. So he went to Las Vegas and gambled the money on the blackjack tables. He was good at blackjack and soon turned that $5,000 into $27,000.
Starting point is 00:19:38 Enough to keep FedEx going one more week, which was just enough time to get another bank loan to stabilize the company. Next, Fred Smith needed great advertising. So he met with a creative advertising agency named Alley & Gargano. While that agency was always interested in working with entrepreneurs who wanted to change the world, they were wary of an entrepreneur who was willing to play blackjack to meet payroll. But they met Smith, liked him, and agreed to take on the account. Their first assessment of FedEx was that they had to move fast to gain awareness and trial. Print ads would have been too slow, so they chose television advertising instead.
Starting point is 00:20:24 Six markets were selected. The test was simple. Run the ads and count the packages. The strategy for the first TV ad was to introduce the first new airline in 30 years for packages only. America, you've got a new airline. The first major airline in over 30 years. There's no first class, no meals, no movies.
Starting point is 00:20:49 In fact, no passengers. Just packages. Small, important shipments that have to get where they're going overnight. But up to now, I've had to fly at the mercy of the passenger airlines. Not anymore. Federal Express. A whole new airline. But packages only.
Starting point is 00:21:12 Fred Smith's goal was to deliver 10,000 packages every night. After that commercial, the package count hit 11,400. Phase two was to become profitable, and the quickest way to achieve that was to attack the industry leader, Emery Air Freight. Here's what they did. Alley and Gargano hired an independent firm to run a test. They filled 47 packages with sand and sent them to 47 different cities via Emory.
Starting point is 00:21:47 On the same day, 47 sand-filled packages were shipped to the same 47 cities by Federal Express. The results were impressive. Emory delivered 43% of the packages the next day. FedEx delivered 93%. That led to a series of ads that proclaimed FedEx was not only faster than Emory, but cheaper. When the president of Emory Air Freight was quoted saying that when the airlines are in trouble, his business is affected, FedEx ran a print ad that said, That's exactly why we bought our own planes. Within just three years, Federal Express became the market leader. No need to attack Emory anymore.
Starting point is 00:22:26 Phase three was to establish a leadership role and appeal to anyone who wanted to ship a parcel overnight. That led to one of the great taglines. Federal Express. But it absolutely positively has to be there overnight. From that point on, FedEx moved to humor. Their commercials were hilarious and always strategically delivered the benefit of overnight delivery.
Starting point is 00:22:51 This FedEx commercial was voted one of the top three commercials of the 20th century. It featured the fastest-talking man in the world, John Machida. Okay, you and his travel plans. I need to be in New York on Monday, L.A. on Tuesday, New York on Wednesday, L.A. on Thursday, New York on Friday, got it? Got it. Got it. So you want to work here. What really makes you think you deserve a job here? Well, sir, I think I'll buy a few dumb good figures and have a sharp mind. Machida. Thank you for taking me. Peter, you did a bang-up job. I'm putting you in charge of Pittsburgh. Pittsburgh, sure. I know it's perfect, Peter. That's why I picked Pittsburgh. Pittsburgh's perfect, Peter. May I call you Pete?
Starting point is 00:23:25 Call me Pete. Pete. There's a Mr. Schnitler here to see you. I'll have to wait 15 seconds. Can you wait 15 seconds? I'll wait 15 seconds. Congratulations on your deal in Denver, Dave. I'm putting you down to deal with Dallas.
Starting point is 00:23:32 Don, is it a deal? Do we have a deal? It's a deal. I gotta go. I got a call coming in. Hi, Doc. Just dealt with Don. In this fast-moving, high-pressure, get-it-done-yesterday world, aren't you glad there's one company
Starting point is 00:23:41 that can keep up with it all? You got a deal. Good. I'm putting you down to deal with Dick. Dick, what's the deal with the deal? Are we dealing? We're dealing. Dave, it's a deal with Don, Doc, and Dick. Dick, what's the deal with the deal? Are we dealing? We're dealing. David's a deal with Don, Doc and Dick. Doc, it's a deal with Dave, Dick and Dave.
Starting point is 00:23:49 Don, it's a doc with Dick, Dave and Doug. Gotta go, Dave, disconnecting. Gotta go, Dick, disconnecting. Gotta go, Dan, disconnecting. Federal Express. And it absolutely, positively has to be there overnight. When Alley and Gargano took on the FedEx advertising account, FedEx was teetering on bankruptcy and only delivering 2,500 packages nightly.
Starting point is 00:24:11 By 1986, the company was delivering over 700,000 packages overnight. Today, FedEx is universal. And it's a verb, as in, let's FedEx that package. But 50 years ago, they were entirely unknown. Proving that smart advertising can make a brand famous overnight. New year, new me. Season is here and honestly, we're already over it. Enter Felix, the healthcare company helping Canadians take a different approach to weight loss this year. Weight loss is more than just diet and exercise. It can be about tackling genetics, hormones, metabolism. Felix gets it. They connect you with licensed healthcare practitioners online
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Starting point is 00:26:14 If you have any questions or concerns about your gambling or someone close to you, please contact Connects Ontario at 1-866-531-2600 to speak to an advisor free of charge. BetMGM operates pursuant to an operating agreement with iGaming Ontario. 50 years ago, there was a hit song called One Toke Over the Line.
Starting point is 00:26:45 The lyrics were kind of self-explanatory, except to squeaky clean Lawrence Welk, who mistook it for a modern spiritual and had it performed on his TV show. I highly recommend you go over to YouTube to watch it. Search One Toke Over the Line Lawrence Welk. Go. We'll wait here. You can't
Starting point is 00:27:10 make this stuff up. Comedy gold. And painful. Thankfully, back in 1971, there was a big breakthrough in pain relief. While British research scientist Stuart Adams and his associate John Nicholson
Starting point is 00:27:25 were working for British pharma company Boots, they invented a revolutionary anti-inflammatory drug. While it would become a success, the drug was actually based on failure. Adams was trying to find a cure for rheumatoid arthritis,
Starting point is 00:27:42 hoping to develop something as effective as steroids but with none of the side effects. They tested over 600 compounds, then narrowed the field down to five drugs. Four failed in clinical testing. The fifth, however, proved to be successful. While it would become a treatment for arthritis, it wasn't the cure Adams was hoping for. Before he was put on the market, Stuart Adams was attending a pharmaceutical conference in Moscow.
Starting point is 00:28:15 But he woke up that morning with a huge hangover. He had been out with some colleagues the night before and had enjoyed a few too many shots of vodka. And Adams had to deliver an important speech in just a few hours. He knew he had to do something to relieve his pounding headache. So he reached for the new drug he had developed and swallowed a couple of tablets. In no time, his headache was gone.
Starting point is 00:28:41 While the drug had been tested for pain, no one had tested it for headaches. That drug was ibuprofen. It may be the first time in history that the inventor
Starting point is 00:28:52 of a breakthrough drug tested it out on his own hangover. Ibuprofen has since become one of the world's most popular over-the-counter pain relievers.
Starting point is 00:29:09 It is now sold under many brand names, like Excedrin. Ibuprofen relief for tough headaches. New Excedrin IB. The headache ibuprofen. One package of ibuprofen is sold every three seconds in North America. Stuart Adams received no royalties for his invention, but he was bestowed with an OBE by the Queen and was inducted into the National Inventors Hall of Fame. Adams' son said his father was a humble man. He went to the pharmacy and purchased ibuprofen just like everybody else. He never mentioned he was the inventor, even when the pharmacist selling it at his local drugstore
Starting point is 00:29:44 would ask him if he had ever taken it before. Ibuprofen, a breakthrough drug developed 50 years ago to treat pain, fever, arthritic inflammation, and hangovers. When a product has survived for 50 years, it's quite an achievement. But at the same time, I can't help but think that 50 years happens in the blink of an eye. Every one of the products and companies we talked about today started well into my lifetime. That Memorex campaign feels as vivid to me as it did in 1971,
Starting point is 00:30:25 even if time wasn't kind to the cassette tape. You deserve a break today only ran for a short period 50 years ago, yet it is the slogan people remember most when it comes to McDonald's. And Stuart Adams' hangover 50 years ago convinced him he was on to a good thing. It's also hard to believe Starbucks is half a century old, as is FedEx. Both still major brands. Then there's the Quarter Pounder, still one of McDonald's best-selling menu items, a hamburger that beat the competition because math is so darn tricky.
Starting point is 00:31:04 But that's the X factor in marketing. Some brands last 50 years, and some absolutely positively don't make it overnight. When you're under the influence. I'm Terry O'Reilly. This episode was recorded in the Terrastream Mobile Recording Studio. Producer, Debbie O'Reilly. Sound Engineer, Keith Ullman. Theme music by Ari Posner and Ian Lefevre.
Starting point is 00:31:38 Follow me on Twitter and Instagram for some fun stuff at Terry O'Influence. See you next week. Caution, use only in well-ventilated area. Do not attempt if going one toke over the line. Must be 50 years of age to participate. Offer only valid in Bowser, British Columbia.

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