Expansion: Morpace

New in Logistics

Arm & Hammer Acquires

Leaving Town

Correction

Deaths

OUT/ Leaving Town

Out of Business

Corrections or additions?

These articles were prepared for the May 23, 2001 edition of U.S.

1 Newspaper. All rights reserved.

Life in the Fast Lane: Leland Kroll

Leland Kroll describes his company’s new location as

being "on the other side of the corn field." Last month (April

27), Kroll Direct Marketing moved from 4,000 square feet at Princeton

Meadows Office Center to 8,000 square feet on Morgan Lane off

Plainsboro Road, "just one traffic light away."

Bill Barish of Commercial Property Network found the offices for the

growing direct mail marketing company, and

Kroll is delighted with the office, but the space was not his first

choice. "My initial goal was to buy a building," he says.

"I looked for seven years." Kroll examined every possibility

in the geographic area bounded by Route 130 and Route 1 to the east

and west and by Monroe and East Windsor to the north and south. He

looked at large homes, farm houses, and warehouses, as well as office

buildings.

Nowhere in the area could he find a space that was large enough, or

where zoning would permit the expansion and parking he needed.

"There were a lot in Ewing and Hamilton," he says, "but that

isn’t conducive to where my employees are located."

Some come from the shore and others from areas just east or north

of Plainsboro and he feared the extra few miles of travel on Route

1 it would take to get to Ewing or Hamilton could have induced some

to leave the company.

Having settled for leased space, found with the help of Commercial

Property Network’s Bill Barish, Kroll says he is pleased with his

new offices, which accommodate his 20 employees with room left over

for growth. The fitout was done by LCOR, but he says very few changes

had to be made. Kroll decided to go with all new furniture in

mahogany, purchased from North American Furniture of Linden. This is

his company’s fifth

move. All of the others were to increasingly larger offices in the

same building. "We kept buying a little furniture here, a little

furniture there," he says. "We wanted a more professional

look."

Mahogany in 8,000 square feet of office is a decidedly more

professional

environment than the one in which Kroll began his direct mail career.

That first workspace was a basement. To be exact, it was the basement

of the Scotch Plains home in which his brother-in-law Donn Rappaport

lived at the time. That was 1979; Kroll was four years out of Monmouth

College; and Rappaport was beginning to build American List Counsel,

now the largest direct marketing list broker in the country.

Kroll left American List Counsel in 1989 to start his own company.

He says he and Rappaport remain friendly enough. "We get together

on holidays, and keep the kids close," he says, and the companies

buy from one another.

Like American List’s spin off, Impower, a company that recently

moved into new offices on Dow Jones’ South Brunswick campus, Kroll

Direct Marketing has E-mail direct marketing as a specialty. But it

is another niche, international direct marketing, that is driving

the company’s growth.

The company made its first foray into international business in 1992,

and has since built a database of 2.8 million international

executives,

most of them Europeans, that it calls Publibase. In addition to

selling

subsets of this list, it acts as a representative of European list

owners, selling their lists in the United States and thereby providing

them with ancillary income. The company’s Kroll International

Marketing

division is headquartered in Dublin, a location the company chose

because of its favorable tax environment, well-trained labor pool,

and communications and transportation infrastructures that Kroll terms

"top notch."

Kroll International is headed up by Kevin Eakins, who oversees

representatives

in a number of countries, including Germany, France, Belgium, Spain,

the Netherlands, and the United Kingdom. Selling lists of European

executives and businesses can be lucrative. Kroll says a specialized

list — perhaps of German physicians — would fetch a one-time

use fee of $300 to $400 per 1000. A list of American physicians,

by contrast, would go for about $100 per 1000. But while rates

are higher for international lists, demand is substantially lower,

Kroll says.

Part of the reason fewer companies are interested in acquiring the

rights to international lists is that they need to be set up for

global

trade before such lists can be of any benefit. There Kroll thinks

the Internet will be a major boon. "With the Internet, you can

be global overnight," he says. Setting up a website to accept

foreign currencies is a snap, and makes it "much easier to

market."

Kroll sees great promises in E-mail direct marketing, but acknowledges

that marketing method has a ways to go before it approaches the reach

for postal direct marketing. For one thing, he says, only a small

percentage of E-mail addresses contain much information about their

owners, and some reveal only a name. Without much more substantial

demographic information, including a real-world address, the Internet

addresses are not much good for marketing purposes. And niche E-mail

lists, perhaps of Fortysomething married preachers who live in the

Mid-West and enjoy fishing, often are non-existent.

While these hurdles are universal in cyber-direct marketing, Kroll

says the problems are compounded in Europe. For one thing, it tends

to cost more to surf the Internet across the Pond, because charges

often are racked up by the minute, rather than on a flat monthly fee,

as is the case with nearly all Internet service in the United States.

Another obstacle, Kroll says, is that privacy laws are much stricter

in Europe.

Speaking of privacy, or infringement there upon, does Kroll’s

business,

aimed as it is at delivering marketing messages — sometimes called

junk mail or spam — ever provoke mildly unpleasant remarks at

social gatherings? Sure, he says cheerfully. "I call it

unrequested mail, not junk mail," he says. And when the

conversation takes a nasty turn, he can point out that he receives his

fair share.

A car buff, he says his purchases of model cars, car accessories,

and the car-themed art that decorates his offices do indeed result

in "unrequested mail," and that, he, for one, welcomes all

such missives. "Really, it’s beneficial."

— Kathleen McGinn Spring

Kroll Direct Marketing Inc., 101 Morgan Lane,

Suite 120, Plainsboro 08536. Leland Kroll, president. 609-275-2900;

fax, 609-275-6606. Home page: www.krolldirect.com.

Top Of Page
Expansion: Morpace

Morpace Pharma Group, the marketing research company, has expanded

shared office space at HQ in Forrestal Village to 1230 Parkway Avenue

in Ewing and brought its personnel from Doylestown to Ewing. It is

an independent subsidiary of Morpace International, based in Concord,

Massachusetts.

Morpace does market research on advertising and sales promotion for

existing brands for pharmaceutical and biotech companies. Using the

Internet, it integrates data into market models. "We also help

our clients discover which compounds to develop and which indications

will give them the best return," says Les Leathem, vice president.

Among the five people at this location are those doing marketing

communications

research — web-based professional and direct-to-consumer

promotional

research. Statisticians from Concord will also move to central New

Jersey. The company also has offices in Boston, Baltimore, London,

and Brussels and plans to open in Tokyo this summer.

The son of an electrician, Leathem grew up in New Orleans and went

to Louisiana State, Class of 1978, followed by stints in

pharmaceutical

sales, product management, and new product development, He worked

at Rohrer (now Aventis) and Janssen Pharmaceutica, and then at an

advertising agency doing marketing research. Before opening this

office

of Morpace, he had been with Perq/HCI, a syndicated healthcare

research

company at Lawrence Commons.

"Our work is not about getting smart Internet strategies,"

says Leathem. "We are trying to help our clients be better about

developing their compounds. In our market research, based on the

Internet,

we collect data from clients and physicians to help companies

understand

which of their products will bring them the best return."

Suppose a company wants to develop a compound in a particular disease

by 2003. Management needs to know what will happen to the value of

that compound

if a competitor launches a product in 2004, one year later. "But

what would happen if the competing product launches in 2002? The trick

is to integrate all that information in a way that the client can

go back and ask questions — how will that affect the value of

our brand."

Morpace’s platform for therapeutic expertise and number manipulation

is called the MPG Director and targets physician opinions. It is in

an integrated suite of products that can do population modeling and

clinical analysis and what Leathem calls "a variety of other

things

on the web-based interface." To develop a project takes only a

couple of months. "We use the web to do the upfront development

— the survey can be done on the web for instance — and deliver

the report to our clients more rapidly. It allows us to integrate

all the different kinds of information on diseases, populations, and

markets."

Morpace Pharma Group Ltd., 1230 Parkway Avenue,

Ewing 08628. Les Leathem, vice president. 609-434-1008; fax,

609-434-1015.

Home page: www.morpacepharma.com

Top Of Page
New in Logistics

Jebsens (USA), 212 Carnegie Center, Suite 206 B,

Princeton 08540. Ronald E. Orton, president. 609-919-6350; fax,

609-452-8950.

Home page: www.jebsens.no

Ronald Orton closed down his Pennsylvania office and has reopened

at the Carnegie Center; he works for an international global

transportation

provider with its core business in ocean transportation. For such

clients as grain and fertilizer companies, metals, and mineral

companies,

Jebsen’s USA offers logistical services and bulk transportation by

carrier ships. "Some vessels we own, some we charter, some we

manage for others," says Orton.

Jebsens is a 200-person family-run company based in Bergen, Norway

but with offices in Australia, Singapore, Tokyo, London, and the

Philippines.

"Our biggest forte," he says, "is trade within Europe

and TransPacific. We carry lumber and fertilizer from New Zealand

to the West Coast and back." Rather than bid on individual jobs,

the company tries to forge partnerships and long-term contracts

in the Australia-Asia area with Fortune 500 companies. "We book

sales on a 10-year contract carrying copper from Indonesia to the

Philippines, for instance, and build trades upon that. We have

specialized

ships that unload 2,000 tons per hour."

Until recently the United States operation was a joint venture with

a German partner, Hartmann. "The chairman of the company decided

to sell his shares back to Hartmann," says Orton. "Hartmann

is continuing as United Bulk Carriers in Wayne, Pennsylvania."

Each group had its own clients. "Our group owns, operates, and

manages somewhere between 20 and 35 oceangoing ships of all different

types. We have three people in the United States and hope to be five

or six by the end of the year," says Orton.

Orton went to Hunter College, Class of 1972, New York, earned a

master’s

in biochemistry at Wagner College, and studied medicine at the

University

of Brussels. After several years of teaching high school and college

biology, he went into the shipping industry, following in his late

father’s footsteps. "I guess I loved world trade," says Orton.

"I still got to use my expertise in science. I worked as director

of marine transportation for a number of years with a fertilizer

company

in New York, booking shipments and selling fertilizers." He has

been with this company for 13 years.

The ups and downs of this business are dependent on monetary changes,

fuel prices, and global economic changes. Particularly unpredictable

are shifts in pricing, as when a client is not successful from a

certain

destination forcing the carrier to change business strategies. But

he loves his work. "It’s an opportunity to do business worldwide

and meet lots of people."

Distribution Management Associates, Suite 102 A,

12 Roszel Road, Box 8858, Princeton 08543-8858. Shyam S. Sethi,

president. 609-497-1040; fax, 609-497-9154.

Shyam Sethi, a supply chain management consultant, has ended a five

year association with Dechert-Hampe and moved from Research Park.

The son of a lawyer, Sethi went to the Berla Institute of Technology

in Bihar, India, to study mechanical engineering. At the University

of Wisconsin in Madison, he did research on industrial engineering

operations and spent 10 years at Drake Sheahan/Stewart Dougall in

Manhattan, where he was vice president.

In 1980 he set up his own consulting group, Distribution Management

Associates, in Scotch Plains, moving to Princeton in 1988. He and

Dechert-Hampe

merged, and the merger lasted five years. Dechert Hampe is based in

Mission Viejo, California, and has offices in Connecticut and

Illinois.

It does consulting in the logistics of distribution, both

manufacturing

and retail.

"As of February we decided to go our own way," Sethi says.

Sethi has temporary quarters in Roszel Road at the office of Creative

Business Decisions but also has a post office box.

His clients are Fortune 100 companies such as Colgate-Palmolive, Mars,

CVS, KB Toys, Corning USA, and two of the largest retail firms in

Columbia. He and his wife live in Bridgewater with their two

daughters.

Top Of Page
Arm & Hammer Acquires

Church & Dwight Co. Inc. (CHD), 469 North Harrison

Street, CN 5297, Princeton 08543-5297. Robert A. Davies III,

chairman and CEO. 609-683-5900; fax, 609-497-7177. Home page:

www.armhammer.com.

With the just-completed purchase of USA Detergents Inc., Church &

Dwight — makers of Arm & Hammer brand products — expects to

manufacture $400 million in laundry products annually and be the third

largest manufacturer in this industry. USA Detergents has 463

employees at 1735 Jersey Avenue in North Brunswick. Founded in 1988,

USA Detergents went public in 1995, expanded in 1996, and was listed

as among Inc. Magazine’s fastest growing small public

companies.

Church & Dwight has also announced that it intends to buy

Carter-Wallace’s consumer division (including the Trojan condom and

Arrid deodorant brands) for $739 million. Carter-Wallace’s drug and

tests unit would be sold to MedPointe Capital Partners for $408

million. Carter-Wallace used to have a condom factory in Trenton but

still employs about 850 people in the greater Princeton area. Church &

Dwight has about 300 employees in Princeton, including offices on

Thanet circle, and 1,400 employees worldwide.

Top Of Page
Leaving Town

ProTeam.com, Cranbury Business Park, Building 2,

Box 9707, Cranbury 08512-9707. 800-776-8326. Home page:

www.proteam.com.

In April the catalog company closed its own fulfillment center in

Cranbury and transferred all its shipping and billing services to

a Tennessee firm, National Fulfillment. As the largest fulfillment

center in the United States, National Fulfillment serves more than

150 companies from this location: 6960 Eastgate Boulevard, Lebanon,

Tennessee 37090.

Top Of Page
Correction

An article in U.S. 1 (May 16) was incorrect in saying that 85 jobs

in the Fort Dodge animal health division of American Home Products

would for sure be gone by mid 2001.

BASF (current owners of the former American Cyanamid R&D operations

on Route 1 North) did announce that it would close down its 500-person

R&D laboratory by next year.

But American Home Products still owns the 640 acre property. By next

summer it will be occupied only by AHP’s 85 employees plus livestock.

Doug Petkus of American Home Products says that no decision has been

made about the employees or the property. "The 85 AHP researchers

in Fort Dodge animal health division will continue their jobs without

interruption," says Petkus.

Top Of Page
Deaths

Frederick C. "Fritz" Tobler, 89, on April 11. He

co-founded Mettler Instrument Corp.

David J. Schroth, 65, on May 18. He had been a Mercer

County

Superior Court Judge.

Dorothy G. Mount 73, on May 18. She had been an

administrative assistant at Veterinary Learning Systems Co. Inc.

Richard Mark Gervasio, 63, on May 19. He was an

environmental technician at such firms as Harding Lawson, ABB, and

Princeton University Plasma PHysics Laboratory.

Top Of Page
OUT/ Leaving Town

Advanced TelCom Group Inc., 993 Lenox Drive, Suite

200, Lawrenceville 08648. Carl J. Thompson, general manager.

No sooner had Carl J. Thompson opened an office for Advanced

TelCom Group on Quakerbridge Road than ATG decided not to continue

to fund this market. Thompson flirted with the idea of continuing

to work in New Jersey under his own umbrella, as Mercer

Communications,

but has taken a position with ATG as general manager of the Stamford

and Westchester market. Formerly with AT&T and Lucent Technologies,

Thompson is an alumnus of the University of Notre Dame and has an

MBA from the University of Chicago.

ATG is a facilities-based integrated communications provider that

offers one-stop shopping to underserved middle-sized business markets.

A competitor to Verizon, it leases fiberoptic networks to deliver

all its services. "We were having difficulty building on our

network

in New Jersey because of the lack of fiber — we couldn’t get our

arms around enough of it — and we didn’t think we could deliver

proper service," says Gene Sokol, vice president marketing

services,

at the company’s headquarters in Santa Rosa, California. "In some

areas it was not available. In some cases, they had promised the fiber

was

there, but when we arrived, it had not been laid."

Top Of Page
Out of Business

World PCS, 29 Emmons Drive, Building G-30,

Princeton

08540. Steve Lam.

World PCS has closed its 10-person 4,000-foot office at Princeton

Commerce Center. PCS was founded by the World Communications Group,

a Hazlet firm that sold wireless voice and Internet access

infrastructure

equipment systems to China and other developing countries (U.S. 1,

August 11, 1999). Steve Lam was in charge of the Princeton office,

but the company president was located in Atlanta.

PCS stands for Personal Communications Services and is a second

generation

digital technology suitable for college campuses or third world

countries.

Called wireless local loop, it is used for the "last mile"

or "local loop," because it links the major telephone

company’s

base station to the home. But wireless PCS phones could range only

one-half mile from a transmitter or base station, as opposed to

cellular

phones with a very wide range and signals that can be transmitted

by towers up to 3 miles apart.

Businees Week Online reports a "rash of bankruptcies" among

similar local multipoint distribution system (LMDS) companies, in

part because "getting a clean line of site from transmitters has

proved problematic in cities." The magazine points to the trend

to the more powerful fixed wireless technology, Multichannel

Multipoint

Distribution System (MMDS), which offers inexpensive Internet and

phone service within a 30-square-mile radius of a powerful

cellular-transmission

tower.

Anicom Inc. (ANIC), 1 Broadway Road, Suite 1,

Cranbury

08512. 609-409-2832; fax, 609-409-4380. Home page:

www.anicom.net.

This company went into Chapter 11 bankruptcy and is closing down,

both here at this 40-person warehouse, and at its headquarters in

Rosemont, Illinois (near Chicago). The reported reason for the

bankruptcy

was an SEC investigation into stock fraud. It billed itself as

distribution

solution for voice, video, datapower and security systems.

Corrections or additions?


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