JUNK MAIL NOW CAN BE THROWN INTO THE NEAREST VCR

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, January 8, 1992                   TAG: 9201070206
SECTION: EXTRA                    PAGE: E-8   EDITION: METRO 
SOURCE: BARRY MEIER
DATELINE:                                 LENGTH: Medium
JUNK MAIL NOW CAN BE THROWN INTO THE NEAREST VCR
As some companies scramble to generate sales, consumers are increasingly seeing high-tech forms of advertising - videotapes and computer discs that promote products, including some that are mailed to consumers' homes.
Last September, for example, some newsstand copies of Elle magazine came with a videocassette that contained a two-and-a-half minute commercial for Spellbound, a perfume made by Estee Lauder. And for Christmas, Hartmarx Corp., the Chicago clothing manufacturer and retailer, mailed videotaped catalogs to the homes of some 150,000 customers.
These high-tech approaches to direct advertising are still relatively new. For one thing, they have been far more expensive than printed catalogs. But with many companies struggling in the recession, some are willing to gamble on novel strategies.
"It's so different that some companies figure that maybe it will work," said Lisa Caugherty, a spokeswoman for the Direct Marketing Association, a trade group in New York City.
With videocassette recorders in 71 percent of American homes and with growing numbers of personal computers, this new approach to marketing becomes more attractive. But like junk mail, much of it will also be thrown away.
In recent years, high-tech marketing has taken several forms. Some companies, like Spiegel, have sold videotapes about fashion through their catalogs as a means of promoting clothing sales. Others, like Compaq Computer, have mailed prospective customers informational discs for personal computers promoting new computers.
Toyota the maker of Lexus, has been among the most frequent users of direct videotape advertising. In 1989, just before the Lexus went on the market, thousands of tapes on the new cars were mailed out to car enthusiasts, said Ann Pollack, the Lexus product marketing manager.
That promotion was so successful that last year the company sent videotapes featuring new models to thousands of potential customers before any publicity about them appeared elsewhere, Pollack said. The idea behind these six-minute programs was to entice consumers into showrooms when the new cars arrived, Pollack said.
The Hartmarx videotape, "A Perfect Picture for Christmas," showed a large family around a Christmas with each person wearing clothing from Hartmarx. It cost about $1 million to produce, which the company said was not much more than its printed Christmas catalog. The video catalog was sent only to customers who had bought at Hartmarx stores in the past year, the company said.
In terms of packaging, it would be hard to equal Estee Lauder's promotion. The videotape and Elle magazine came in a stiff plastic wrapper. Inside the box holding the tape was more promotional material, including a piece of scented cardboard cut in the shape of a perfume bottle and prices.
The videotape features stark images of a man and woman intermingled with pictures of crashing waves. The videotape was distributed with Elle magazine at newsstands in 10 cities including New York, Los Angeles and Washington.
A spokeswoman for Estee Lauder said officials were not available for interviews about the promotion. But in a news release in August, Robin Burns, the company president, said the videotape was an effort to reach potential customers.

by Archana Subramaniam by CNB