European Stars And Stripes (Newspaper) - March 26, 1989, Darmstadt, Hesse                                Page 18 the stars and stripes business news by Randy Mcclaln Seesaw Buck reflects mixed economic signs currency traders have been befuddled the my few Days by a . Economy thai can seem in male up its mind Aboul the direction it wants a Lake. Jum win111 in looks As if the latest economic stalk tic released in Washington proves that in Lvalion in the states is running wild out comes act Altit report thai says the heal is off the mixed signals kept the Buck trailing on a Yoyo like path the week before easier. Each move up was followed by a Day in which the Greenback lost All the ground it hid gained. By week s end. Most currency traders had Sim ply Given up. Foreign Exchange markets closed their doors Early on thursday in Europe for a four Day Holiday weekend. The Dollar stood in the neighbourhood of 1.8650 Marks at inc end of trading Down slightly from a week car lick. The military Exchange rate in Frankfurt West Germany was set at 1.84 Marks for a Dol Lar thursday afternoon a loss of one pfennig on inc week. That Rale will apply to military banking transactions through at least tuesday. It was quite a turn of  the Start of the week it seemed almost a certainly that inc Dollar would be getting stronger.  speculation was the March 17 report from Washington that the . Producer Price Index wholesale prices had gone up by a whopping i percent in february la was inc Sec Ond month in a Row that wholesale prices had risen by a full percentage Point and i Fla lion warning sirens began sounding around the Globe. The Dollar responded by heading higher hit Ting 1.8755 Marks in London trading on March 17 and Matching that figure on monday. Many traders said the Only thing that kept the Greenback from rising even further was concerted intervention by the major Central Banks in Europe. Thai intervention led by inc West German Bundesbank which flooded the Market with As much As $400 million in Dollar sates in a single  slopped the Buck from lopping 1.88 Marks. Thai level is widely considered to be the upper end of the dollars acceptable trading Range As set b the group of seven nations a he Buck lops that level it is thought in will climb Mcculy. In inc past five trading Days though it turned but that inflation fears May have been overblown. Consider these stamp is All of which were released shortly before easter new housing starts in the United Stales plunged by 11,4 percent m february after hav ing risen by � percent in january. The 1 consumer Price -. Index for february Rose but on by a relatively mild 0.4 percent that was less than economists had expected and a significant improvement from the month be fore when Rico l jumped by an inflationary  percent and factory orders for us. Durable goods fell by 4.6 percent in february following a 2.9 Percini decline in january. It was the first Back to bail drop m thai economic Calegory in three years. All of those statistics  economic pro Tih in inc United states is slowing and that inflation May not be the problem in was perceived to be a Mere week ago. One person who believes that is Alan Green Span chairman of the Federal re scam Board Greenspan testifying before Congress at mid week said he expects the us. Economy to con Niue Cooling off As to Teresa rate increases engineered by the fed Over the last year begin to quell consumer spending. If Greenspan s prognosis is Correct look for the Dollar to Drift lower in the next few weeks but keep in mind thai currency traders have one Eye peeled for new indicators that inflation has not Cyl been Shin. One hint that in still Ives and inc Dollar will be on the a up again. The but and strip Agency advertising by Kandy Mcclain financial writer Don t look for Tina Turner to be belting out what s love opt to do with ii for Pepsi cola on Moscow television but inc  Best thing to Wes Lorn style commercials has just arrived in he soviet Union. Ogilvy & Mather one of the world s largest and Agen cies set up an eight person shop in Moscow on feb. 1 and Hopes to use its foothold there to promote East Wes Trade. The Agency is the first from the West to be allowed behind inc Iron curtain it s operating in Moscow in partnership with a hungarian and Agency and the giant soviet Public relations company  which has 23 offices and j 0,000 employees throughout the country we Are not right now in the business of developing major and campaigns for the soviet Market thai will come tomorrow or the Day after tomorrow. Right now we re More involved in Public relations and business to business contacts said Hans Drgon Lange chief of Ogilvy & Mather s european operations and the Man responsible for the Moscow office Lange. Who Calls Frankfurt West Germany Home when not hobnobbing with top Trade and government officials in Russia said he thinks the soviet Union could do a better Job of marketing itself and its products to the outside world. Right now he said the Sovi ets know very Little about salesmanship. Hul they re willing to learn and Ogilvy &. Mather is willing to Leach. You can talk to them about advertising for Days months years and they listen. They say go on show More. No one walks out of the room. If you can get them a Catalon from Sears and Roebuck it s the most precious thing you can  Lang said. Still the soviet Union has a Long Way to go. We arc consultants Lange said. We Are teaching their people How to create a marketing plan How to create an and How to improve products so More people will want them to hear Lange "tclj.it, inc soviet Union has been hiding its Light under a Bushel Basket for years. There Are 270 million potential Consumers in the soviet Union. Hans Lange the soviets produce some very Cood products but when in comes to Labelling and marketing those products they Are just so  he said. One Case in Point is the soviet perfume Industry. Lang said he recently look a tour of a huge perfume factory near Moscow and found visiting French so Cal specialists there looking for new Aromas to bottle Lange said the soviets could make a killing in the United Stales and Europe with perfume but hey Haven t yet developed the special flair needed for such an Enterprise. His suggestion1 invade inc West with a High priced scent named  in Honor of inc wife of soviet president Mikhail Gorbachev i could very Well imagine the marketing i around something like that said Lang who added thai the soviets arc considering hit idea. Lange said inc soviet Union might do Well with other top of the Linc products in the Ecsi including certain wines champagnes jams and marmalade. The Ogilvy & Mather executive said Many devel Oping countries that want to make a bigger Impact in world Trade often Irv to bring products 10 Market that undercut others in Price. For the soviet Union though thai would be he wrong approach Lang said in line Western markets Wilh Low Cost products is cry difficult because the Only thing differentiating your product from someone else s in those instances is Price he said. Then you run the risk of being squeezed out by other even lower Cost producers per haps those from the far  instead Lange suggests going after the More affluent consumer. To teach a. To soviets s1s l  i Lant Juren Lance ,. Suggests soviets find i ctr Niche the trick really is to find a Niche where you can develop specially products for a distinctive target Audi ence. Don t try to offer something to everyone when you go to inc  at this stage Lange gives no More than average Marks to Gorbachev s policy of Pyrc Stroika eco nomic and party Reform. In order to raise that Grade the soviet system has to do a better Job of exploiting technologies in produces More efficiently than the West he said. Look at space technology where the soviets have been beating us up lately Lange did. The catch is that the soviet Hierarchy unlike the West has traditionally been unwilling to allow the Transfer of Well kept state secrets into consumer products he said. In inc United Stales space technology has been used for inc consumer for Many  at Teflon frying  Lang said the soviets must flip the switch and allow even greater openness. The Ogilvy & Malher bo5s"bolicves Gorbachev is making headway j in thai regard bul there is still More to be done. The soviet system is changing from a planned system to Mure of a free Market system and that s causing some pain and confusion Lang said. Bul the old 5 Stem has been bankrupt for a Long Lime und or. Gorbachev and his associates know they Nave to  Lang said Ogilvy & Mather s primary thrust is to help form business partnerships and joint ventures be tween Western companies interested in Trade with the soviet Union and their russian counterparts. Usually that occurs through exhibitions symposiums and Public relations Lang said. So far there have been no major Brakl troughs bul Lange s firm has a number of Irons in inc fire. Ogilvy & Mather is looking for a partner to work with a finnish company on a Book publishing project for example and inc firm also is scouting for outdoor advertising Sites in Moscow and Leningrad where billboards will be erected fora variety of products. The firm also is conning inc russians on behalf of major Western clients that want new or expanded operations m the soviet Union thai list includes Deutsche Hank american express and  believes it a be two or three years before of Girky & Mather makes Money on its Moscow office bul he sees the operation eventually bringing in As much As 20 percent of the and Agency s worldwide reve Nues. There Are 270 million potential Consumers in the soviet Union the second biggest Market Region in the world after the european Community Lange said. And from a personal Point of View it s wonder Ful to be in the soviet Union helping Gorbachev to get inc country Lur cd