April 11, 2011
Pandora Radio: From Rags to Riches to Federal Investigation?
By Brittany Schweiker
Pandora Radio has always done a great job forming and presenting their image to the public. Taking co-founder Tim Westergren’s
Tim Westergren, Founder of Pandora
“Music Genome Project” and turning it into the most popular consumer based internet radio, the company has created their brand as being cool, innovative, grassroots and most importantly, user focused.
Their back story is a good one too. Created in 2000, the project has been a rags to riches type tale. Along the way Pandora watched as other music services such as Napster and imeem all met their slow and painful demise, but still they persevered. Westergren maxed out twelve credit cards, had no means to pay employees for two years, and failed on 383 pitches to gain any investor interest in the organization. That was until his 384th pitch in early 2004 to Larry Marcus, a musician and venture capitalist, who decided to endow $9 million into the project. It was all they needed. Listenership quickly rose, and in 2005 they sold their first ad.
As the site’s popularity grew so did their headaches. In 2007, the federal royalty board significantly increased the rate paid by online radio stations to musicians. After two years of lobbying and uncertainty in the company’s future, Pandora and the royalty board reached an agreement on a still high, but lower rate. Pandora could no longer provide a “free” service, but they were able to alter their structure with little effect on their user base. Presently, users are permitted 40 hours of music per month at no cost. After hitting that 40 hour mark, registrants are given the option to pay .99 cents to go unlimited for the remainder of the month – a pretty good deal if you ask me.
It wasn’t until 2008 that business began to surge. Realizing that the internet was moving beyond a computer screen, Pandora was one of the first companies to use developing technologies to integrate their business into their consumers every day, or should we say every hour, life. First was the release of their mobile app, which allowed consumers to stream music to their mobile devices. Almost immediately, user registration doubled, averaging some 35,000 new users a day.
Pandora iPhone App
They didn’t stop there. A few months later Pandora announced they were teaming with automotive companies like Ford, Mercedes Benz, Toyota and Hyundai to offer drivers the ability to sync their mobile Pandora app to their car radio by use of their smart phones. Since the announcement, other electronic companies like Samsung and Vizio are also working to integrate Pandora into their blu-ray DVD players, TVs, and music stereos.
Ford Sync: Pandora
But Pandora has more than just a cool brand, a great back story and product integration, they have user loyalty. There are plenty of other music services that offer things Pandora does not: specific song selection, 1 million + song catalogs or completely free services, yet Pandora continues to be overwhelmingly the most popular choice. Which is why plenty were shocked when just last week the Wall Street Journal broke news of a federal investigation into whether or not Pandora, along with other app publishers, were collecting and distributing private user data without proper consent.
Software analysis firm, Veracode, publicly confirmed that both Pandora’s Android and iOs app logs and transmits a user’s GPS coordinates, age, gender, unique mobile code and birth date to several advertising firms. While each independent piece of information does not seem significant, when grouped all together it is definitely viable to determine the kind of person that specific user is – scary. Pandora claims that the subpoena was delivered ”on an industry-wide basis to the publishers of numerous other smartphone applications.” Makes sense I suppose, but other apps like Twitter and FourSquare tend to make it pretty obvious that they are tracking user data like location, birthdate, and interests to enhance the user experience. But who would of ever thought that a company like Pandora would sneakily be distributing such specific personal data without user consent?
The investigation centers around the Computer Fraud and Abuse Act, a law created to prosecute hackers. If found guilty, the consequences and legal matters could potentially shut down a company indefinitely. How can Pandora, an organization only just beginning to reach a comfortable financial position, reflect, or if proven guilty, rebound from these allegations? Will Pandora’s good image and public trust be affected by the investigation? Should we as app users be concerned with this matter, or is it a price we pay for a free service?
[images via New York Times/Pandora]
April 9, 2011
Revival of PR in India
By Ishan Kumar-
The decade dating from 1990 to 2000 saw the rebirth of Indian PR system as whole. In October 1996 the ED (Enforcement Directorate) and DRI (Customs and Department of revenue intelligence) conducted raids on ITC (Indian Tobacco Company), one of the biggest tobacco companies in India and world.
Troubled Times
ITC was accused of mismanaging foreign exchange and ED found sufficient evidence against ITC which resulted in a number of arrests including K L Chugh, ITC chairman under FERA (Foreign Exchange Regulation Authority) violations act. ED even suspected that ITC has contravened FERA regulations up to $100 million.
http://www.icmrindia.org/free%20resources/casestudies/The%20ITC%20Classic%20Story1.htm
ITC vs BAT
BAT (British American Tobacco) was the major share holder at about 32% in ITC’s stocks and debentures. In late 1991 the differences regarding ways of working between the two companies began to increase and in 1995 K L Chugh stirred a new controversy by accusing that BAT was trying to overtake ITC. K L Chugh always wanted ITC to be an independent body. Regarding the case the Indian Media produced reports out of proportion and created a lot of negative publicity for ITC that eventually forced Mr. Chugh to resign which he did almost after a year.
http://www.corporatebattles.com/2010/11/itc-vs-bat/
The PR Department
For the first time in Indian history the whole PR department was fired as the board members of ITC accused the department of not acting swiftly in a crisis situation. They even called the entire incident as, “Death of Public Relations”. Some stated that, the incident delineated the true and ugly face of Indian PR system. Many confessed that Public Relation personals are not employed for warm handshakes or sunny smiles; they do not only have to promote company’s new policies but as well to help overcome companies reputation and goodwill in crisis situations.
Indian Media on Public Relations
On the other hand, Indian Media supported PR personals. Media wrote that, “it was because of them (PR Personals) such a big fraud was highlighted”. Often PR department tries to overshadow the wrongdoings of their, “big bosses” in order to save company’s reputation in market which eventually acts against nation’s interest.
Question-
Should the PR Department of a company restrict themselves in sensitive cases, especially those cases which are against the nation’s interest?
March 27, 2011
Loss and Redemption: The Munich Tragedy and its Affects on the Olympic Games
-Alexander Englander-
In April 1966, 30 years after Hitler’s Olympic Games in Berlin, Germany; Munich, West Germany beat out Madrid, Montreal and Detroit to win the right to host the 20th Olympiad in 1972. These Olympic Games were going to help heal old wounds from those dark 1936 Games and mend fences, not only with Jews but the world as a whole over World War 2. These would be known as “The Serene Games.” A joyous celebration of sport and culture in one of the oldest cities in Europe as a back drop. The people of Munich and West Germany worked tirelessly for years to ensure their Olympic Games came off without a hitch. The Opening Ceremony was the most spectacular every staged by a host city and for the first 10 days it seemed as though Munich had delivered their “Serene Games.” However, that serenity was shattered in the early morning hours of September 5, 1972 as 8 Arab terrorists seized 11 Israeli athletes and killed two others. Time Magazine ran an article a week after the attacks which describes in detail, all of the events of September 5 and 6, 1972. However, it barely touches the surface of the ramifications of the terror attacks. On September 2, 2002, Time ran another article, to commemorate the 30th anniversary of the attack, this time looking more closely not just at the physical attacks, but the ramifications they had on the Olympic Movement and future host cities.
The attacks at Munich ushered in a dark time for the Olympic Movement. There was no way to spin the attacks to make the Olympic Games look good. Munich had lost out on its opportunity for redemption. Public Relations professionals can call the Munich Massacre a teachable or learning moment, there was much to learn about what happened during those two days in September 1972. But it would take nearly 20 years for the Olympic Movement to recover from these atrocities. From 1976 to 1988 the Olympic Games were marred by boycotts and bankruptcy. Few cities around the world were willing to take on the task of organizing such a large project with as many unknown variables as an Olympic Games has. Even as sports heroes were breaking records, the games were breaking the bank. It would be very hard to pitch a city into bidding for an Olympic Games if the previous host had lost one billion dollars or the image of masked gunman holding hostages in the Olympic Village were burned in one’s mind. What Olympic PR needed was a break. They needed something that would get the world energized again and wanting to host the largest sporting event on the planet.
In 1984, Los Angeles played host to the 23rd Olympiad. They became the most successful games to date and even manged to make a profit of over 200 million dollars for the organizing committee. This is what would help turn the Olympic Movement around. Twelve years after the terrorist attacks at Munich, Los Angeles would find the redemption which Munich had longed for. Public relations professionals could use and did use the success of the Los Angeles Games to pitch Olympic sponsorships and show how they were not investing in a dying tradition. The Los Angeles Olympic Games would show the world that the Olympic Movement was alive and well. If I were attempting to revitalize this failing franchise, this is what I would do: I would present the games as a classic tale of loss and redemption. Being brought the brink of extinction and finding your way back. It is a heroes tale; of athletes who have struggled from all over the world, to find a dream. For those 11 Israeli athletes, that dream is cut short. Yet, in continuing on with the Games, not just after the attacks in Munich, but every four years hence, every athlete who competes is competing for those who were lost. When broadcaster Jim McKay uttered those infamous words, “They’re all gone,” one would have thought the Olympic Movement would be gone as well.
Today, the Olympic movement is moving forward, presenting itself to a new generation of athletes and fans around the world. They
can be found on Facebook , at their webpage: Olympic.org, and even on their sponsors pages. Their image has been brought back, though it sometimes gets tarnished the public relations professional is there to help make it shiny again. Finally, Munich is trying once again at a shot for redemption. The city is bidding to host the 2018 Winter Olympics. If the city is selected, it will be the biggest public relations coup for the city and for the Olympic Movement since Atlanta beat Athens to host the Centennial Games in 1996. Never before has a for has a former Summer Games host played host to a Winter Games. No city is as infamous in the Olympic Movement as Munich. Lastly, no city has as much to prove to themselves and to the world, as Munich does.
March 13, 2011
Skype Introduces Advertising on Homepage
By: Christine Kenyi
On March 7th Skype announced that it will be introducing display advertising for users in the US, UK and Germany. The ads will appear on the Skype homepage and many major companies such as Visa, Universal Pictures, and Nokia have already signed on to sponsor this development. According to Skype’s director of advertising Andy Sims, the ads can include audio, video and social media tags. Companies will also have the option to include a click-to-call feature enabling users to use Skype for immediate contact if they so choose.
Skype’s popularity has grown exponentially since its birth in 2003. At the end of 2010 it boasted 663 million users and its revenue grew to $860 million (compared to $719 million in 2009). Despite this success, this latest advertising introduction is obviously an attempt to generate more profit and growth. However as would be expected, many Skype users are less than thrilled that they will have to be bombarded with these ads.
In order to reassure their users that they are being sensitive to their needs, the Skype team has approached this new change carefully, most notably through the internet. Skype has an impressive online presence with over 2 million likes on Facebook, a frequently updated Twitter account and a well-maintained blog. They have in the past shown their ability to construct effective viral campaigns such as my personal favorite, the hilarious Skype Laughter Chain that was hugely popular in 2008.
On their March 7th blog post announcing the advertising introduction they wrote,
“The Skype experience is our first priority, which is why we’ve taken a lot of time working through and testing what kind of advertising would work best in the Skype environment…”
They then continued on to give users details about the kind of advertising to expect, and were even upfront about the fact that they may be using demographic data such as gender, age or location to better target the ads. The blog post is well-written, open, and provides users with all the relevant information that this change will have on their Skype experience.
I think overall, Skype’s approach to unveiling the introduction to advertising has been well done and highly effective. As you can see below, they got only positive responses on their Twitter from users after the announcement. I think the reason for this is two-fold; first because Skype offers an incredible free service, and secondly because over the years they have proved to their consumers that they take their feedback and overall Skype experience seriously. As a frequent Skype user myself, although I’m a little annoyed about the introduction of ads I know I will certainly not be deterred from using it because of this.
What are your thoughts, do you think Skype will suffer a loss of consumers because of this? What, if anything, could they have done differently to introduce this change to their users more effectively?
February 28, 2011
Planet Fitness: For everyone, but not for everyone
I have been playing sports since I was three. I have always had an active lifestyle and took pride in my health, my physical image, and my work ethic. Since I started playing college sports, I took a big interest in weight lifting. This has become a 5-day a week thing for me which I enjoy. About seven months ago when I lifted at my old college, the gym was closed because of summer vacation. I had to take myself to Planet Fitness, the Judgment Free Zone, or so I thought.
Planet Fitness, which has had mixed reviews, has made quite a statement about their beliefs and their policies. Some beliefs have come off well, while others, not so much. My personal experience did not go so well. Before I go on to the rest of my story, I would like to let everyone know what Planet Fitness is all about and their mission statement. The first two sentences read:
We at Planet Fitness are here to provide a unique environment in which anyone – and we mean anyone – can be comfortable. A diverse, Judgement Free Zone® where a lasting, active lifestyle can be built.
For anyone who doesn’t know what the Judgement Free Zone is, it is basically what it says, “Judgement Free.” You are not allowed to judge people as they workout and this Judgement Free Zone was created so that people could relax, not worry so much about what other people are thinking, and exercise. I agree with this statement completely. Who wants to be judged while they work out? However, for a company that doesn’t want to judge people, they have the lunk alarm.
This brings me to my story. I go to Planet Fitness, sign in, and start to workout. About half way through my workout, I had dropped a weight on the floor because of the exercise that I was doing. It was a little noise, not a big one, but soon enough, the Lunk Alarm went off and I looked around to see everyone staring at me. I felt like a total idiot.
The lunk alarm is d
efined as one who drops weights, grunts, or judges. If someone is to drop a weight, this siren goes off and a flashing purple light goes off as well to let everyone know someone has broken the rules. Here is a link to the Lunk Alarm.
Now you heard how loud that siren was. It’s intention is to embarrass, not to alert someone they are being too loud. For a place that has a Judgement Free Zone, I felt pretty judged by the organization. How do they know I didn’t drop the weight by accident? It ruined my workout and I left very soon afterwards.
Planet Fitness Judgement Free Zone is a complete joke because of the Lunk Alarm. Talk about not being able to relax and exercise. I bet some people are uncomfortable to workout there in fear they might set the siren off. Not only does Planet Fitness have this Lunk Alarm, but they discriminate anyone who enjoys lifting and has muscle. Take a look at their advertising video, Planet Fitness Advertisement and also this advertisement Another PF commercial.
Although these commercials are actually quite funny, I am pretty sure that not everyone who lifts weights and looks muscular makes those noises and wear those type of clothing. Is this not judging though? Is this not discrimination? What is Planet Fitness trying to tell the public? If you are in any type of shape and have some muscle, you can’t lift there? This is an extreme example, so please no judgment, no pun intended, but what if I opened a gym for just body builders? Then what if I continuted to make a commercial of fat, slow, sweaty, sloppy people walking around the gym, then I showed them the door because it is not “their” gym? Would that be acceptable or ethical? No it wouldn’t, and there would most likely be many negative reactions brought upon my company.
The Planet Fitness image is that of a gym that is for everyone and very comfortable. I believe that is a good approach, however, just leave out the Lunk Alarm and the discrimination.
Is Planet Fitness ethical with those commercials or the lunk alarm? I feel as though they are sending out mixed signals about their beliefs. Should the public be offended by this? How does Planet Fitness look in the public eye?
February 19, 2011
Kenneth Cole, Red Cross and the Misuse of Twitter
Social media can be a Public Relations practitioner’s best friend or worst enemy. Sites such as Facebook and Twitter can connect people rather effortlessly, but used incorrectly or recklessly can lead to discord.
via Mashable.com
On February 6th a tweet appeared on the official Twitter page of Kenneth Cole, which is operated by Cole himself. Which is not that surprising. However when the tweet implies the Egypt uprising is due to Kenneth Cole’s Spring Collection there might be a problem. The tweet, reading “Millions are in uproar in Cairo. Rumor is they heard our new spring collection is available online,” is obviously inappropriate as it pokes fun at the very serious popular uprising by the people of Egypt. The tweet did cause some internet buzz, but not in a good way. Many insinuated that Cole had hijacked the Cairo hash tag, so when people searched Cairo during that day Cole’s tweet would end up in those search results.
Kenneth Cole’s reaction? (get it?) He removed the tweet, apologized on Facebook and life went on.
On February 17th a strange tweet appeared on the American Red Cross twitter feed. “Ryan found 2 more 4 bottle packs of Dogfish Head’s Midas Touch beer… When we drink we do it right. getting slizzerd.”
via Mashable
The tweet was posted by Gloria Huang, who cited her inability to use Hootsuite as the cause for the ‘rogue tweet.’ The tweet would be taken down about an hour later and Huang would apologize via her personal twitter page.
However, Dogfish Head saw this as an opportunity to try and get fans of their microbrews to donate to the Red Cross. They set up an account to take donations, and used the hash tag “gettingslizzerd” to spread the word. What could have been a PR nightmare for the Red Cross turned into a marketing opportunity for Dogfish Head, and an impromptu donation drive for the Red Cross.
This shows how social media can run amok, but also how, when done right, a potentially awful situation can turn positive if handled a proper way. Had the Red Cross fired Huang for her mistake the backlash may have been negative. Instead the companies official response, via Twitter, “We’ve deleted the rogue tweet but rest assured the Red Cross is sober, and we’ve confiscated the keys.”
Sometimes, laughter is the best medicine, and it also makes a company more human, approachable, and friendly. This reaction may have gotten people to look at the Red Cross in a different light, not just as the Blood van. As a humanitarian organization that tends to deal mainly in doom and gloom, this is a great way to handle the situation, with some humanity and humor.
Kenneth Cole may have tried to use humor to promote his spring collection, but funny is was not. It was distasteful at best. His post did not make me think any different about him, or his brand, however I have never seen either in a positive light to begin with. The Red Cross, though, I now see as less stiff. They now have some character.
What are your knee jerk reactions to these situations?
February 13, 2011
P.T. Barnum: Huckster or public relations pioneer?
by Leslie
The name Phineas Taylor Barnum stirs up strong emotions among public relations practitioners. Some feel Barnum lied to and chea
ted the public. Others feel that he merely stretched the truth, but ultimately gave the public an entertainment experience. These people feel Barnum was a founding father of public relations.
Barnum, did not limit himself to public relations. He was a one man show of public relations, marketing and advertising.
Notable quotes:
He certainly provided good pullquotes for the newspapers. But was he a Renaissance man or a grifter?
Born in Connecticut in the summer of 1810, Barnum owned small businesses in his 20s, including a weekly newspaper. Perhaps it was this venture into journalism that made him so adept at acquiring publicity — earned media– in later life. After all the best way to know what newspaper owners are looking for is to have been one.
Barnum created a variety troupe in 1835 and toured the United States. Then he created of a museum of oddities and then PT Barnum’s American Museum in New York City. The executive director of the Barnum Museum in Bridgeport, Conn., Kathy Maher felt Barnum would have utilized the Internet as a marketing an PR tool to its fullest if he were alive today.
Legitimate performers. While there were hoaxes, Barnum also provided the public with legitimate acts, such as the opera singer Jenny Lind, known as the Swedish Nightingale, who Barnum brought to America for a series of concerts. That this tour made a fortune for both Lind and Barnum, was because of Barnum’s calculated pre-tour hype and publicity efforts. Barnum used all the tools available to him, including advertisements, contests and media releases. He began his efforts six months before Lind’s scheduled New York arrival. This resulted in a reported 30,000 fans lining the docks as Lind disembarked from her ship.
Let’s not forget the Siamese Twins, the bearded lady and possibly the most Barnum’s most famous act,
Charles Sherwood Stratton, a little person who performed as General Tom Thumb, who stood only 2 ft 11 inches tall.
It is said that Barnum used Stratton’s marriage to another little person to great advantage in 
achieving press coverage for his businesses.
Hoaxes. Of course, Barnum certainly was guilty of perpetrating hoaxes on the public. The Feejee mermaid being one and Joice Heth, the “164 year-old” woman who supposedly had been George Washington’s nurse. It couldn’t possibly have been true, but posters, flyers and drop in articles for newspapers written by Barnum about the attraction kept the money flowing in.
Contemporary comparison: Was it fair to take money for fake attractions? Probably not, but was it fair for another company to take my hard earned allowance for the Sea-Monkeys® that I bought through the mail years ago?
I was promised real-life pets that I could train. Not only did these little creatures not frolic about in an underwater circus, they had the unmitigated temerity to die 20 minutes after I’d poured the magic crystals in the fishbowl. And not one of them wore a crown.
Surely fraud perpetrated through the mail was a federal offense? Surely I would have learned a lesson? But no, actually I saved up another few dollars and purchased another set of Sea-Monkeys®, so great was my desire to have them; so enticing was the comic book ad.
Update: Now I see the Sea-Monkeys®company is online and offering a sea monkey guarantee, nifty little holder tanks and even a “how-to” video. Now I’m transported back to childhood, and am sure these things are legit– there is a guarantee after all.
Oh, the delicious possibilities. . .
P.T. Barnum would be proud by the Sea-Monkeys® marketing and PR efforts. Twice burned by the lure or the Sea-Monkeys® and I am dangerously close to ordering the deluxe kit for $23.00. Maybe this time I will get the mother Sea-Monkey® and she will be wearing lipstick.
Circus: In his later years Barnum opened a circus in New York City, which is probably what he is best known for today.
Barnum died in 1891 but he certainly captured the world’s attention while he was alive and continues to do so today.
There is a musical named after him. Opening on Broadway in 1980, Barnum was a huge success. One of the most famous songs in the musical comes from a phrase, “There’s a sucker born every minute,” the while attributed to Barnum is not a phrase he is likely to have said.
Sources are linked throughout post. Unlinked source:
Public Relations for Dummies, Yaverbaum, Bly & Benun
February 5, 2011
Ishan Kumar
After reading the posted article I am in ambiguity. In today’s fast paced world PR is definitely crucial in business growth but we can’t rule out the option of meeting in personal. In science there is something called as “sub conscious mind”. So, information oozed through PR (facebook) is stored in the sub conscious part of mind and on the other hand a face to face chat would leave a greater impact on ones mind.
I understand the fact that the lady interviewing Christa does belong to a different generation and does not know much about Facebook, Twitter or Orkut as these sites were not present in that era. We must not forget that technology today would be obsolete a day later. So Facebook, Twitter or YouTube will be replaced tomorrow. So a need is there to remain updated all time.
The salary stated in Christa’s article gives a new hope to those people who cannot work as hard as the doctors, engineers and journalist who burn night oil just to get the last alphabet of news but still can earn a king’s ransom.
The inseparable nature of Ethics and Social Media in the Practice of Public Relations:The Domino’s effect. By Aoife Herbert
In 2011, the Domino's brand is still suffering from the infamous prank
In the spring of 2009, a PR ethics case also encompassing the potential danger of ignoring social media emerged in the press. On April 16th, 2009 The New York Times, under the headline “Video Prank at Domino’s Taints Brand” provided a detailed article depicting the power of social media in initiating a public relations crisis. Essentially, two Domino’s Pizza employees posted a video to YouTube which showed them in the midst of a disgusting “prank”, desecrating health and safety practices with a rather revolting use of nasal mucus as a sandwich topping.
Attributing to the power of social media and the viral nature of the unethical video, the pair of employees were almost instantaneously fired and faced with felony charges while the height of their stupidity was blatantly visible for the entire online world to see. Only one single day had elapsed before the video had been viewed more than a million times on YouTube. The Times article additionally revealed that: “references to it were in five of the 12 results on the first page of Google search for “Dominos,” and discussions about Domino’s had spread throughout Twitter”.
The potential danger of ignoring social media was illustrated in the days that followed. Domino’s initial response incongruously chose to deal with the crisis only by responding “one- on- one” to blog sites where talk of the video had spread. Perhaps the most substantial piece of evidence suggesting complete ignorance of the power of social media in a public relations setting came in the form of a quote from Tim McIntyre, Vice President of Communications for the Domino’s group.
“Domino’s doesn’t want to put the candle out with a fire horse” he said. How ironic this quote would turn out to be, as their failure to actively engage in social media discussion from an early stage only served to ignite a Public Relations catastrophe and what The New York Times described as a “digital crisis”. Domino’s PR section failed to acknowledge Twitter as a growth enhancing, social media steroid for the spread of the video, and their delayed response was rather costly. Two days later, a YouTube clarification was posted by Domino’s USA president Patrick Doyle, an action response website upheld and a Twitter account activated, but the belatedness of which had already marred the Domino’s brand.
Domino's Website newly created Customer Care Page amid the crisis
YouTube commentary response from Domino's USA President Patrick Doyle
The unethical nature of this vile and viral video had the ability to cast in a shadow of doubt the ethical practices of Domino’s pizza, especially in terms of employee selection and health code standards. Domino’s response was critical, but unfortunately it wasn’t up standard. Social media detonates the rapid explosion of on-line reaction and opinion and Domino’s was inexcusably blind to this modern reality. According to Ragan.com, Domino’s public relations response was seriously inept: “When one considers what Domino’s optimum demographic must be-teens and young adults- the company’s dismissal of that demographics primary communications network, is, at the very least puzzling”. Also, as illustrated by Nicolazzo (2009), a solid contingency plan to counteract such a crisis was ill provided on Domino’s part. On-line media keeps evolving, but the increasing need for contingency communication planning remains a must especially as it relates to social media explosions such as this one.
Breaking News
In conclusion, I chose the NY Times article on the demise of the Domino’s brand because I felt it connected the fundamental elements of Ethics and Social Media in the practice of Public Relations. Social media demands professional ethics and the pair are intrinsically connected in a sort of symbiotic relationship. Of course maintaining proper ethics in an often times excessively hyperactive network of social media is not always easy. Our society will always have YouTube idiots such as Kristy Hammonds and Michael Setzer whose actions illustrate the power of social media as a destructive tool and the disastrous consequences of its gross misuse. Although the NY Times article was published in 2009, Domino’s is still recovering its 50 year old brand image from this public relations crisis. In our modern online society, ignoring social media is a dangerous and irresponsible management decision and one that, in this case had a negative Domino’s effect.
References
Clifford, Stephanie. (April 16th, 2009).Video Prank at Domino’s Taints Brand. The New York Times. Retrieved from http://nytimes.com
Nicolazzo, Richard. E. (April 16th, 2009). Message to Domino’s: Contingency Planning Still Rules the Roost. Odwyerpr.com.
www.ragan.com
Seitel. Fraser P. Domino’s Did the Right Thing. Odwyerpr.com
February 4, 2011
Nick Zarrelli: HP looks to begin 2011 with a clean slate
The article I chose to discuss is actually a blog post derived from a larger on-going story. The post which is titled: HP looks to begin 2011 with a clean slate by PRWeek’s editor in chief Steve Barrett, first tells of how the Hewlett-Packard’s CMO Michael Mendenhall decided to leave the company in early January. This announcement seems peculiar, since HP’s former CEO resigned from the company due to allegations of sexual harassment and falsified expenses. Also, don’t forget about the VP of corporate communications leaving last August as well.
According to Barrett, the new CEO will be Leo Apotheker. As a result from these allegations and the media bashing that has developed around HP, Apotheker has hired a former co-worker from SAP whom was previously the VP of PR at the company, Bill Wohl, to be his CCO. HP has high hopes for Wohl, as they are looking for him to handle the media much more securely and carefully due to the difficult situations from the previous year.
According to an article in BusinessWeek compiled from the authors Connie Guglielmo, Ian King and Aaron Ricadela, the problems for HP began after an investigation on CEO Mark Hurd. Hurd was allegedly involved in a personal relationship with a contractor. Consequently, Hurd was not found guilty of any sexual harassment charges, but he did violate HP’s policy in regards to falsifying expenses. In other words, he was charging the company for his personal expenses in a wrongful manner.
From a public relations standpoint, Barrett stated “HP will want the business media community to focus instead on its new product announcements at CES this week and a forthcoming separate press launch in February, when the tech manufacturer is expected to unveil its latest tablet offerings.” With that, I went to the HP website and found their press release regarding this issue.
Our textbook defines issues management as: “the capacity to understand, mobilize, coordinate and direct all strategic and policy planning functions, and all public affairs/public relations skills, towards achievement of one objective: meaningful participation in creation of public policy that affects personal and institutional destiny (W. Howard Chase).”
That being said, issues management is then broken down into several different components:
- Anticipate emerging issues: The emerging issues for HP were mainly the credibility or ethics of the company were compromised by its CEO’s absent-mindedness.
- Identify issues selectively: Though the issues present in this case are not numerous, they are quite large. It wasn’t a random tech-person under investigation; it was the CEO of the multi-billion dollar company.
- Deal with opportunities and vulnerabilities: Though this scandal primarily left HP vulnerable, opportunities certainly arose. Learning from this, the company has employed a PR person as the new CCO, which reports directly to the CEO. Having a PR mindset, this new CCO will make sure to anticipate and handle any future mishaps that surface. I believe that the only way to handle the vulnerability is to compile a well-written press release, and HP certainly did so.
- Plan from the outside in: Basically, HP must figure out what the public thinks is important or not. Was it the sexual harassment part or the fraud? Once the priorities are straight, then proceed to handle them.
- Bottom-line orientation: In my eyes, this means that HP should provide some explanation as to why this would occur, but not necessarily make excuses. Regardless of what happened, the company must carryout business and capitalize on any opportunity.
- Action timetable: There must be a plan of action to handle the issue(s) at hand. If not carefully planned and timed, these issues can permanently damage the reputation of a company. This component is where a PR practitioner would build a policy or programs and a timetable as to when to act on the policies or programs.
- Dealing from the top: The issues management must have full support and cooperation from the upper management. In this case with HP, their CEO was the issue. Therefore, dealing from the top must have been a bump in the road so-to-speak with issues management.
Hewlett-Packard seemed to have handled these several components of issues management quite well. Prior to reading these pieces about Mark Hurd, I had no idea HP even had a problem. Perhaps that is because I had not been reading into PR or business stories for that matter, or maybe because some issues from other organizations or companies have eclipsed it. If you were part of the public relations team at HP, what would you introduce or propose for the upcoming year? Is there anything that can be done to eliminate this scandal from the minds of the public?
