1998 Volume 121 No 1–4 - Phi Delta Theta Scroll Archive

L U M N I
NOTES
named one of the 50 most
influential people in marketing
by Advertising Age magazine
and was recently elected
to the Retail Marketing HaU
of Fame, got his first taste for
business growing up in
Akron's Fairla^vn Heights
neighborhood. Whether
starting his own lawn mowing
enterprise at age 13 or
b^inning his retail career
(first as stock boy and later as
cashier) at Gray Drugs in
Fairlawn Plaza, he recalls always
being interested in business
and entrepreneurial
activities. Enrolling at the
University of Akron, he took
a variety of business courses
until his involvement with the
International Association for
Students in Economics and
Commerce, a sort of business
exchange program for foreign
and American students,
sparked his interest in marketing.
After a stint in the Army
Reserves and earning his
MBA from Michigan State
University, Costello landed a
job with Procter & Gamble,
considered to be perhaps the
premier marketing company
in the country, if not the
world.
"Procter and Gamble was a
great first job and the best
place to learn and practice
marketing. The principle reason
I joined Procter &
Gamble was the quality of the
people," says Costello, who
worked on brand management
for Secret deodorant.
Head & Shoulders shampoo
and Crest toothpaste before
moving on to more seniorlevel
positions.
Cola war veteran
From Procter & Gamble,
Costello enlisted for duty in
the "cola wars." When he became
senior vice president for
marketing and sales for Pepsi-
Cola, Pepsi and Coca-Cola
were in the midst of, perhaps,
their most competitive period.
It was during his time with
Pepsi that Pepsi launched the
Shce brand. Coke floundered
with "new" Coke and Costello,
working closely with Pepsi
President Roger Enrico,
helped launch such high-profile
entertainment marketing
venues as sponsorship of concert
tours by Michael Jackson,
was now fidl of apparel," says
Costello. Meanwhfle, other
corporate decisions aimed to
retbcus Sears on its core businesses.
The company dosed
more than 100 stores and unloaded
its financial services
businesses - Coldwell Banker,
Dean Mtter, Allstate Insurance
and the Discover Card.
The Sears Catalog, unprofitable
yet \'iewed by some as
the soul of the company, was
discontinued in 1993 and re-
You surround yourself with a
team of the very best people
you can find, act decisively, and
don't be afi'aid to take risks
Tina Turner and Lionel
Ritchie.
Costello left Pepsi in 1986
to become executive vice
president of WeUs, Rich,
Greene, Inc., New York's leading
advertising agency. Artflthin
two years, he was elected
president and chief operating
officer of Nielsen Marketing
Research.
The challenge of helping
transform Sears, though, was
too big a lure for CosteUo to
pass up.
Softer side of Sears
Some may have questioned
Costello's hiring. After aU, he
had waged aU of his battles for
the customer's attention on
grocery store shelves - he had
no retailing experience. In
short time, though, he proved
that sound brand marketing
strategies aren't just for package
goods.
"Our initial goal was to let
consumers know the company
they loved for the hard lines
placed wth 20 specialty catalogs
and a 200-page hoUday
Wish Book "For years, the big
catalog was a sacred cow to
anyone brought up in the organization,"
observes
Lewison. "The new team,
however, realized they had a
gold mine in aU these addresses
so they began using
direct mail, targeting these
smaller catalogs to customers
with particular needs." Indeed,
eliminating waste and
creating better promotion
effidendes is at the top of
CosteUo's priority fist.
Because of the company's
success with its free-standing
hardware stores, more are
being opened to be convenient
to homeowners undertaking
weekend projects.
Locally-owned and operated
dealer stores have proven a
cost-effective way of selling
tools, appUances and dectronics
in rural areas. The
company also has high hopes
for Sears Home Central - an
Footnotes
California: Steven H. Scott.
'88, has been named the winner
of the 1997 Harry Sicher
Rrst Research Essay Award
This awrard is given for research
in orthodontics by the
American Association of
Orthodontics. Davidson:
John Kuykendall, '59, is leaving
the
presiderxy
of his
alma
mater
after
a distinguished thirteen-year
career. Phis from around the
country returned to Davidson
to bid him farewell, (see
photo above) New Mexico:
Felix Briones, '56, has been
honored by UNM School of
Law with its Distinguished
Achievement Award. Kenneth
D. Hanson,'55, has been a
principal in Schnabel Engineering
Assodates, inc.. and
long-time member of
Harmon-Rice Award selection
committee. His responsibilities
will include technical
consulting and business development.
Purdue: Han^
Schaefer, '64, has been the i
liaison between the West Htrflywood
(Florida) Kiwanis Club
and the Deaf and Hard of
Hearing Program at Pasadena
Lakes Elementary School.On
a yearly basis, the West Hollywood
Kiwanis Club donates
approximately $1,200 for audiological
equipment and
motivational items for speech
and language development,
funds field trips, and pays the
fee for a professional storyteller
for the children.
10 THE SCROLL SPRING 199S http://^%•^^^^v.phideh-ghq.com