Posts Tagged‘public relations’

July 29, 2014

A Major PR Clean Up … In Every Aisle

For most of us, making that weekly run to the grocery store is uneventful. We choose fresh produce, pick up some milk, go aisle by aisle never really thinking the path each item has taken to get here, or what happens behind the scenes to keep the system running.

For shoppers in Massachusetts, Maine and New Hampshire who frequent Market Basket stores, however, the curtain has indeed been drawn back, revealing an increasingly ugly – and incredibly costly – family drama. One of the oldest family-owned businesses in the country, generating an estimated $4.6 billion annually, Market Basket has become ripe with controversy and the fall out is having an incredible ripple effect.

The Backstory

Owned by the Demoulas family, the 71-store chain of Market Basket grocery stores began one hundred years ago as a single shop in Lowell, Massachusetts. After its founder, Aurthur Demoulas, retired in 1954 and sold the business to two of his sons, Telemachus and George, the company expanded quickly. When George died in 1971, Telemachus shocked George’s heirs by gradually taking control of his nieces’ and nephews’ shares in the company. Thus began a family feud which lead to lawsuits being filed in the 1990’s and a never-ending struggle for George’s heirs to claim the fifty percent ownership of the company they feel is rightly theirs.

For the last thirty years, one of the founder’s grandson’s, Arthur T. Demoulas – of the Telemachus side of the feud – has run the business. Employees of the company see Arthur T. as fair and company-focused, encouraging a close-knit culture and support for workers in every part of the business.

The Spark

In 2013, one relative who had previously fed the stand-off by supporting Arthur T. changed her stance, shifting her support behind Arthur S. – George’s heir and arch rival of his cousin, Arthur T. (Getting all of this?) The move necessitated a vote by the company’s board of directors, who chose to remove Arthur T., putting Arthur S. and the heirs of George Demoulas in full control of the company.

The Fall Out

The ousting of Arthur T. set off a chain reaction unlike any other. After three decades leading the company, he had developed a loyalty among his employees, thousands of whom have turned up at rallies in support of their former boss. “Bring Back Arthur T.” social media campaigns have been launched, and media coverage of the uproar has been near constant.

Several employees have been fired for their actions in support of Arthur T., including those who have worked thirty or more years with the company. The refusal of some employees who are still at work to do their jobs has lead to a near shutdown of operations, resulting in undelivered product and bare shelves in many store locations. Shoppers, either out of loyalty or frustration, have taken their business to competing stores.

The Clean Up

It remains to be seen how the drama will play out. Arthur T. currently has a bid on the table to buy the company outright from his cousin, and the board of directors is giving it consideration. Other potential suitors have apparently stepped up as well, giving the board more to consider.

Meanwhile, stores are losing millions of dollars in lost sales, while rally organizers continue to encourage protestors to stay the course. The company’s new chief executives are offering to welcome back associates who are refusing to work, while the board is striking a more stern tone in statements which call the employee actions negative, accusing them of contradicting culture by not putting the needs of Market Basket customers first.

The next few weeks should be interesting, that’s for sure. From a PR perspective, all involved have some serious damage control ahead of them, regardless of the outcome. Who is the good guy here? Who will prevail? Are the employees showing loyalty or hurting their own customers?

We’ll be watching closely along with everyone else…stay tuned. In the meantime, check out our post on why it’s important to create a PR strategy so you can hopefully steer clear of a messy situation, or at least be better prepared to stay in-control when a situation arises.

We’re here to help you. The experts here at Kovak-Likly can work with you to build a plan to help you avoid or mitigate potential damage that can come to your brand. To get started, give us a call at 203.762.8833 or visit www.klcpr.com.

– BML

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July 17, 2014

Shifting Gears: When An Old Dog Brings a New Trick to Market

Whether it gets your heart racing in anticipation or your eyes rolling in annoyance, the sound is unmistakable. The throaty rumble of a Harley-Davidson is one of the many attributes its admirers love, setting it apart from the buzz-like hum of its foreign competitors. Enthusiasts are a die hard breed, pumping millions into bikes, parts, and gear every year. With such incredible history and brand loyalty, why change the game?

But that’s exactly what Harley-Davidson has done by announcing plans to produce the company’s first ever electric motorcycle through Project LiveWire. They unveiled handmade demonstration models at an event in New York; demos are currently being held around the country to gather rider feedback before a refined version is brought to market sometime in the next several years.

Aside from the starkly different hum-like engine sound, the new prototype is said to provide better handling and quicker acceleration – 0 to 60 in four seconds. The downside? The same obstacles currently faced by electric car manufacturers, namely the need to recharge after about 130 miles.

So how does an American classic go about switching things up so drastically? With a strategic and carefully planned out PR plan.

Invite Interaction

By unveiling a prototype, then soliciting feedback and input from Harley enthusiasts around the country, Harley-Davidson has shown the level to which they value their riders. These are people who know bikes and know Harley, and their opinions matter. By being given the chance to have a say in the new bike’s design, current Harley riders will be part of the process, solidifying the company-customer relationship.

Continue to Service Loyal Customers

Harley-Davidson has made it clear that the introduction of an electric model doesn’t indicate a complete switch in the company’s philosophy. With over 100 years of history under their belt, and annual sales topping a quarter of a million bikes, why would it? By using tag lines like “You don’t know where the line is – until you cross it,” Harley-Davidson is announcing new innovation to an audience who loves a thrill.

Get It Right

The project launched in June; but the electric model itself won’t come to market for several years. For a company with a history like Harley-Davidson, it is vital to wait until they’ve reached near perfection in order to maintain confidence in the brand, and that is exactly what they are doing. In the process, they’ve garnered quite a bit of attention from the industry and consumer sectors, who will no doubt watch the project’s progress closely. When the eventual unveiling hits, all eyes will be on Harley-Davidson.

When bringing a new product or service to market, it is crucial to balance history and consumer confidence with interaction and a sense of collaboration. The right combination will pique interest while maintaining trust, with positive results on both sides of the table.

If you are weighing a shift in your market position or the debut of something new, we at Kovak-Likly can help you develop the PR messaging and action plan that is just right. Let’s talk. Give us a call at 203.762.8833 or visit www.klcpr.com.

– BML

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July 7, 2014

Big Score in the Social Media World

fifaWhether you were following the World Cup minute-by-minute or only knew it was happening from the whooping and hollering of your neighbors, there was no getting around the top sporting event last week. The most vocal fans out there? Facebook fans, it would seem.

The social media company announced last week that the World Cup was the largest event ever – sports or otherwise – in their history, generating more than one billion interactions on the site. The likes, comments, and posts came from 220 million Facebook fans, representing 17% of their total user base.

Participation came in many forms, including posts from soccer fans around the globe and from many of the players themselves. Looked at from the big picture, the experience demonstrates what social media can create – enthusiastic and sustained synergy between a product (in this case an event) and its ambassadors (fans).

Before social media, a large-scale event like the World Cup would be watched on television, a one way interaction. High five-ing after goals and commiserating over disappointments would be left to those sharing a living room or a sports bar. Many small ripples, no overlap.

By enabling fans around the world to interact with both the event and each other through social media, however, that ripple has no bounds. Even those with very little interest in soccer (or fútbol) were drawn into the action last week, curiosity sparked by endless posts and photos populating their Facebook feeds.  Some of the most popular, most shared contributions, in fact, were those from the star players themselves. A photo posted by Brazil’s “Neymar” with his teammate Hulk, for example, drew almost 2.5 million likes.

Your business can cause a ripple, too, if social media is engaged correctly. Meaning, in a way that both promotes the brand, invites interaction, and provides compelling content. By keeping those three elements in play, the conversation knows no end.

Promote the Brand

Obviously this is the goal. But it’s important to go about it in a mindful way. One-way communication is for traditional media, best left to print and broadcast. First, it’s critical to know why your brand should be important to your target audience. What are their hot buttons? For example, the right angle to promote might be the product itself, or what it represents, or what causes the business supports.

Dove is a perfect example of this concept. They are selling soap, yes. But via video campaigns shared on social media, their brand is about positive body image in women. Would you share a post about how great their soap is? Probably not. But a lesson in helping women feel better about themselves? You bet.

Invite Interaction

It’s what social media is all about. Everyone is on the guest list; the playing field is leveled when your target customers feel like their opinions matter and that their feedback is truly being heard. In a case like the World Cup, fans were able to post in direct response to their favorite players. With consumer goods and services, the celebrity factor may not be there, but the feeling of inclusion is just as powerful.

Provide Compelling Content

Soccer fans wanted minute-by-minute updates. Non-fans wanted just enough to speak knowledgeably at the water cooler. And let’s face it, some fans (mainly female, just guessing) were most interested in photos of the athletes. In any case, there was something for everyone. This is achievable with just about any brand. While one contingent from your target audience may be most interested in your actual product, others may feel more drawn to your overall message. By keeping content fresh and compelling, you can serve all with what influences each the most.

Social media is the most flexible of all PR channels. To find out how you can best utilize this incredible tool, let’s have a conversation. Give us a call at 203.762.8833 or visit www.klcpr.com.

– BML

 

 

 

 

 

 

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July 3, 2014

Staying Ahead of the Game: The Importance of Proactive Communications

Last week, a car crashed into a tree on a road not far from my own. A neighbor, who had just come from the direction of the accident, reported the news.  “What happened?” I asked. “Not sure,” she said. “But the air bag deployed; it looked bad.”

Unintentionally, I was already formulating theories in my head. It was just past noon; surely the driver hadn’t been drinking? Maybe they were texting; it seems everyone is distracted one way or another these days. Was it an adult? A teen?

Days later, the photo of the clearly totaled SUV was in the local paper. Again, not many details on the accident other than the driver’s name, age and town. No cause yet determined. With a shortage of facts, I continued to fill in the blanks on my own. An adult male, middle of the day, tells me speed was a factor. Probably some sort of device causing a distraction as well.

Did I have a right to form these theories? I don’t know this man one bit. He could have swerved to avoid a deer, or been experiencing chest pains. Who am I to sum him up with no solid information?

We’re Only Human

Like it or not, such is human nature. When lacking the immediate information we so crave, we tend to fill in the blanks ourselves, often to negative ends. Without a detailed police report, I’ve proclaimed this driver a distracted speeder – without a shred of evidence to support it.

The same exists in the world of business communications. A public so used to immediately disseminated information – right or wrong – exhibits very little patience when not fed quickly enough. If your company’s first words to them are reactionary and incomplete, you’ve already lost control of the message.

Be Known to Them Before You Need Them

How can your company avoid such a misinformation feeding frenzy? Through proactive communications. By maintaining a steady stream of messaging to your target customers on a regular basis, you become a known quantity. Your public consistently receives information which helps them understand who you are, what you do and how you do it.

This familiarity is invaluable when a sensitive public relations situation arises. The groundwork  you have taken the time to lay means you won’t be forced to start from square one – introduction – when trying to manage potentially damaging information on its way to your public.

Spin Free Zone

It is also key to keep proactive communications positive in an effort to develop trust. If you have paid attention to the concerns and preferences of your target customer, and have developed your messaging strategy appropriately, your public will feel a connection with your company which is regularly reinforced.

Again, when faced with a tricky public relations scenario, this means your customers will pause before they believe whatever information hits them first. The need to “spin” furiously is eliminated, because your public is less apt to jump on a negative message bandwagon if they feel they know enough about you to doubt it first.

A Relationship to Build On

Once familiarity, consistency and trust are in place, you are in a much stronger position to hold on to your customer base through even the stormiest corporate communications storms. In this sense, public relations is very much like interpersonal relations. When you truly feel you know someone, you trust first, weigh information carefully, and doubt almost never. Does that sound like a connection you’d like to forge with your target customers?

If so, we’d love to help. At Kovak-Likly, we make it our job to help you define your audience, refine your message, and formulate a public relations plan which build that level of trust layer by layer. To find out how we can work together, give us a call at 203.762.8833 or visit www.klcpr.com.

– BML

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June 25, 2014

Raise A Glass to Social Media This Summer

This Fourth of July, as we celebrate our independence from Great Britain amid a sea of patriotism, you might just reach for a British beer. That is, if a Facebook campaign planned by Newcastle Brown Ale does its job.

A recent Adweek article dissected Newcastle’s use of social media to outpace traditional advertising at carefully selected times of the year, highlighting the Heineken-owned brand’s core platform, Facebook.

Newcastle’s Fourth of July campaign, entitled If We Won, will feature videos presenting what our world would look like if the British had won the American Revolution. The humorous twist will follow on the heels of the company’s Super Bowl 2014 campaign, If We Made It, which poked fun by showing what Newcastle would have done with the time, had they bought an actual television spot during the big game.

According to the article, that campaign resulted in a triple digit increase in beer sales, as well as marked increases in brand awareness and purchase consideration. The company is hoping for a similar success as the beer of choice on America’s birthday.

The idea of harnessing the power of social media to outpace traditional advertising is one which has gathered momentum in the national marketplace.

Also targeting the predominantly male sports fan demographic, Red Stripe lager ran a social media campaign around the 2013 Super Bowl which garnered significant attention. It was created spontaneously in response to media conversation around a leaked Volkswagen ad centered on drivers speaking with Jamaican accents. When a media conversation grew, calling the ads offensive, Red Stripe responded by posting videos through social media channels. The hook was a Jamaican referees making on-field calls, including the VW ad controversy – which he declared not offensive, as “happiness was always in play.”

By the end of the big game, Red Stripe held a top spot in the social media rankings for the Super Bowl without ever placing an ad.

Big or small, it’s about changing the conversation.

Newcastle and Red Stripe are large brands with large agencies. But regardless of a company’s resources, the concept is the same: change the conversation.

While traditional marketing channels hold a powerful position, especially in the areas of reinforcing an overall brand, social media allows for immediate interaction. To spark a topic, one need only post it. No need to wait weeks or longer to check response rates; they will be right in front of you.

If you’re going to change the conversation, however, you also need to steer it.

A random post here and there won’t set the right ball in motion. With the ability to respond immediately to what you have posted, people will do so – positively or negatively – and it’s important to be ready.

To make sure you guide the conversation, it’s important to cover some bases:

  • Word your post in a way that solicits response. Ask a question, take a poll – anything to make your recipient pause and think of how they might contribute.
  • Be ready to chat. You wouldn’t start a conversation at the dinner table and then walk out of the room. Posting and moving on is the same concept. If you successfully engage your audience, let them know you are listening.
  • Address concerns. Even online, the customer is always right. If you receive negative feedback, address it right away with an offer to help correct the situation. People appreciate good customer response – the quicker the better.

Planned strategically, social media marketing can supplement or even surpass the ROI of traditional advertising. If you need help developing the right content for your social media audience, and to make a splash in a creative and impactful way, we would love to help. Visit us at www.klcpr.com or give us a call  at 203.762.8833.

– BML

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June 11, 2014

Show Me the Money

A well designed and executed PR campaign can go far in enriching a brand, supporting a message, and drawing attention. Hopefully, in the end, the results will lead to sales and ultimately to the internal meetings everyone loves – the ones with the power point slides featuring arrows that go up instead of down.

Other campaigns, however, cut to the chase: “We need your money.”

The simple truth is that for many businesses and industries, lack of revenue or investment means a slowdown in crucial research or production development that could benefit everyone. It is okay for companies to speak openly about this in the context of an expertly crafted PR campaign.

For one Dublin-based company, lack of investment could mean the perpetuation of a severe void in Ireland: that of locally produced, real corn tortillas.

Tortillas in Ireland? Yup. Serious business for Philip Martin, the entrepreneur and restaurateur behind the highly successful Little Ass Burrito Bar, which opened in 2012. To date, tacos haven’t been on the menu, because Martin felt the quality available in his country simply wasn’t up to par. Searching for a solution, he traveled to Mexico, learning all he could about corn within Mexican food culture and the creation of tortillas, starting right in the field.

Now, Martin is appealing to investors and foodies everywhere with a straight PR message for his newest company, Blanco Niño: “We need your money.”

Through a crowd funding campaign launched on CrowdCube, Martin – through Blanco Niño – is looking to fund the creation of Europe’s first real corn tortilla factory in Ireland. He has announced plans to create 30 jobs within the next five years, and to partner with Irish farmers to cultivate over 600 acres of farmland to grow high quality corn maize for his new line of tortillas, nacho chips, and masa harina products.

So far the Blanco Niño campaign has attracted 87 investors, contributing £121,550 (appx. $204,156). Their initial target?  £60,000 (appx. $100,776).

Not bad for a campaign asking for money. So, what makes this one so easy to embrace?

Ask me nicely. Tell my why.

When crafting a PR campaign to raise revenue or funding, it’s important to treat the public as you would any investor. It’s their money, after all, and they can choose how to spend it. By offering as much relatable information as possible, you may just hold their attention long enough for them to open the proverbial checkbook.

In the case of Philip Martin’s Blanco Niño campaign, he has drawn on his background, his commitment, and his plans to give back – in a highly compelling way – to bring us in.

  • Background: Little Ass Burrito Bar is already well-known among the Irish in Dublin and beyond, having drawn loyal business as well as several food awards at festivals and competitions. By launching Blanco Niño, Martin has piqued the interest of those who already know his dedication as a restaurateur.
  • Commitment: Martin didn’t just turn down the corn tortilla options he found in his home country. He headed straight to Mexico and immersed himself in the culture – and agriculture – until he learned how to grow and make them from scratch on his own. By sharing this story, he is solidifying his commitment to making the new company a success by truly creating a high quality product for his customers.
  • Giving Back: Born and raised on an organic farm in North Dublin, Martin is keeping in mind the opportunity to benefit more than just himself, his restaurant, or his company. By enlisting the participation of area farmers, he is boosting an industry which has its share of challenges. By promising jobs in the new production facility, he is supporting the local community.

Through this comprehensive campaign, Martin is sharing the compelling tale of an entrepreneur who will make this happen. Who wouldn’t want to invest in a company that seeks quality, starts from scratch if that’s what it takes, and helps their community while bettering their products?

If your company has a great idea, but needs the revenue to grow toward it, your message needs a special touch. Luckily, the PR experts here at Kovak-Likly have it, and would love to be part of the drive toward your future success. To talk to us about your challenges and goals, visit us at www.klcpr.com or call  203.762.8833.

– BML

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June 2, 2014

When Partnerships Work

Which sweetener packet do you add to your coffee in the morning? The blue one? Yellow one? Pink one? Through a new video campaign designed to reach women, Sweet N’ Low is hoping more will choose their product when given the choice. (They are the pink one, by the way.)

As reported on Adweek.com, the sweetener company has partnered with Womensforum.com to offer two-minute video lifestyle tips on the publisher’s website, focused on helping women with weight management strategies. Focusing on low calorie recipes, clothing options, and exercise ideas, the videos will feature expert spokespeople for each topic. It’s all part of a web series called “Makin’ Life Sweeter,” sponsored by Sweet N’ Low.

The idea for the campaign – which according to Adweek will receive secondary support through web ads, display ads, and event sampling opportunities – came about as a way to reach Sweet N’ Low’s target customers, predominantly busy women. The company’s brand manager, Monica Oliva, was quoted as saying that the two minute videos were designed to not only be quick, but to include information which female consumers would find relatable.

In PR and advertising, some partnerships are forced, while some fit like an old pair of jeans. The Sweet N’ Low Womensforum.com campaign seems to be headed into the latter category, for good reason…

Understanding a target customer means more than knowing who they are.

Does Sweet N’ Low know their customer? Sure – super busy women. But to understand that customer – therein lies the key. What does a busy woman’s lifestyle entail? What will capture her attention while making it easy for her to choose to engage?

In this case, they understand that busy women don’t have time to watch long videos, so tips are held to two minutes.

They also know that most women in their target demographic are managing one weight challenge or another; video content is then chosen accordingly. Variety adds to the appeal, with topics ranging from activity to food to clothing, all centered around the same theme.

Finally, Sweet N’ Low knows they are speaking to the Womensforum.com audience – reportedly 39 million women from all around the globe. By keeping topics fresh, and by extending the web series over a number of months, the ability to reach such an expansive group is reinforced.

Content is king.

In the Adweek article, Sweet N’ Low’s brand manager is quoted as saying that while they obviously wanted to keep mention of their product in the videos, it was most important to populate the web series with relatable content. “Who wants to listen to…a two minute session on just one product?” she says in the interview. Definitely not busy women!

By working in partnership with Womensforum.com to create true, relatable content, Sweet N’ Low is doing more than advertising a brand; they have transformed themselves into a resource for the very consumers they are trying to reach.

In an age when straight ads simply aren’t enough to attract and hold the attention of your target customer, it is more important than ever to know your audience, choose partnerships carefully, and provide a real benefit for your target customer. If you need help breaking down your strategic plan to best maximize partnerships and PR vehicles, our experts here at Kovak-Likly are ready to help. Stop by our website, give us a call, or stop on into our offices if you are in the area. We can have coffee with any color sweetener packet you like.

-BML

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May 21, 2014

The Power of Virtual Communities

“We’re rare, but we’re everywhere.”

Wow, did those words resonate. At a recent healthcare communications conference, members of our team had the good fortune of listening to a panel discussion entitled “The Connected Patient.” Among the participants were a three-time cancer survivor and breast cancer support group Twitter host, a young woman and author who has dealt with chronic illness her whole life, and a self-described “e-Parent” who made the above statement when referring to her own unique circumstances (more on that in a minute).

The gathering was a discussion on the ways in which social media and online communities can truly connect and support those who may have been left to their own limited devices in the pre-internet era. The first panelist was able to best articulate that evolution, having battled her first bout with cancer – lymphoma – in the early 1990’s, and then successfully beating breast cancer in 2004 and 2007. The glaring difference between the two decades, in terms of taking proactive steps to seek out reliable health information? “Google!” she said.

The internet proved even more crucial for the e-Parent on the panel, a highly educated, multi-degreed professional who found herself swirling when she became the mother of a “medically complex” child – a term she described as meaning there is something wrong, but a team of specialists and geneticists were unable to pinpoint it.

In her case, the journey led to an introduction to the CHARGE syndrome community, a group focused on an extremely perplexing genetic birth defect with widely varying characteristics. With such a limited population, the odds of finding a family with similar challenges would have been nearly impossible prior to the social media wave. Today, the CHARGE Facebook page has over 4400 members, many of whom meet in person once a year to share information, ideas, and life-changing friendship.

The author and speaker discussing chronic illness had a similar story; having been misdiagnosed from birth to her early 20’s, she had lived her childhood in hospitals more than she was out of them. An eventual diagnosis of PCD – Primary Ciliary Dyskinesia – made her one of approximately 25,000 people worldwide with the disease; she estimated that less than 1,000 of those were accurately diagnosed. Imagine her difficulty in finding those with shared experience without the reach of the internet. Today, she is linked to fellow PCD patients all around the world, able to offer emotional support to those just joining the community, and able to gather the intellectual support she seeks as a person maintaining her health.

Healthcare is about the patient. Patients are social beings.

The takeaway from the discussion couldn’t have been clearer. The power of social media is beyond measure when it comes to those seeking healthcare information, particularly those who have farther to look. Whether frightened by a new diagnosis, investigating treatment options, or researching for a loved one, we immediately jump online to not only find information, but to hopefully find it from those with real life experience. There is simply no substitute for finding that person – across the country or the globe – who can say to us “I’ve been there too.”

Let them lead the discussion.

This mindset blends into the way in which we plan PR campaigns as well. Think about it from a personal perspective. If you have been recommended for knee surgery, are you paying more attention to the print ad you saw about the surgical center in your area? Or are you asking friends, neighbors, and coworkers to find someone who has had knee surgery there, and to gather details about their experience?

When it comes to healthcare PR, it is crucial to recognize that care is no longer entirely driven by the caregiver. Messages are relationship driven, with the patient often at center stage. An ad touting the superiority of a medical center’s capabilities will make some headway from a marketing perspective, but conversations between patients discussing their first-hand experiences there will reach far beyond the normal scope.

Whether you want to connect physicians to potential patients, encourage patient discussion around a new medication, or open a forum for collaborative patient support, we can help you to shape the social media strategy which is best for you. At Kovak-Likly, we know healthcare, and we know communities. Let’s build some together.

-BML

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May 12, 2014

When to Swerve…and When to Pin It

If you’ve been reading our blog from the beginning you’ll know we wrote about Tesla a few months ago.  We’re a fan of their cars and their CEO’s flair for public relations.  I ask for your forgiveness as we write about them again because anyone who has seen a Tesla in person doesn’t soon forget it. The sleek lines, the unmistakable presence of style and innovation…and if you’ve been lucky enough to watch it cover zero to sixty in 5.4 seconds, well, you might just need a moment to catch your breath.

I sat in a friend’s Tesla recently – and even drove it about three feet. I heard how he had taken it from Connecticut to Baltimore and back without buying a drop of gas, stopping only once at a Tesla super charging station to power up on the way. No worries, he said, he used the recharge time to stretch his legs and have a cup of coffee.

But behind the power and glamour, there still lies a car company very much in building mode. A recent CNNMoney report said that in a letter to shareholders, Tesla Motors CEO Elon Musk reported increased revenues in the most recent quarter, but a large drop in profit. A close to $29 million drop, to be exact.

While this may have investors shifting in their seats, CNN reported that Musk followed up the announcement with plans for increased spending, with investments this year of up to $850 million focused mainly on research and development around the new Model X, set to go to market next year, and on planned expansion into China and Europe.

Musk is also continuing to move forward with the construction of a $5 billion lithium-ion battery “Gigafactory,” the location of which has yet to be determined as five states vie for the contract.

Long story short, Musk could have succumbed to the pressure of bearing bad investor news by downshifting. He could have eased concerns by cutting back, reassuring the skittish, or at the very least, spinning the numbers into a blur.

Instead, he chose to gun it.

Yes, profits are down, he said, but here’s why we’re going to spend more. Invest more. Expand more. As if that wasn’t enough, he reiterated his goal of delivering 35,000 cars around the globe this year, which would represent a 55% increase over 2013. The guy has chutzpah, you’ve got to give him that.

From a PR perspective, Musk’s approach presents an interesting dichotomy. On the one hand, there’s the negative financial news to which we’ve all become so accustomed, particularly within the automotive industry. An announcement like this could easily trigger a media feeding frenzy around the rush to write Tesla’s preemptive obit.

But from the public’s perspective, Musk’s forth righteousness is refreshing; we almost can’t help but root for Tesla against all odds. Musk is committed to going big or going home. What can we, as PR professionals, take away from this?

1) Please Don’t Feed the Cynics

With today’s unlimited access to information, readers and viewers are more informed than ever before. Research can be performed in minutes, leading to a nearly instant ability to discredit whatever diluted story has been approved for distribution. Add that to a morbid fascination with bad news, especially in corporate America, and you’ve got yourself a nation of harsh critics waiting to pounce. The decision to bare all and spin nothing can be an instant diffuser, allowing the attention to shift to where your client wants it to be.

2) Position Yourself: Failure or Underdog?

Once the truth is out, and the flame of negativity has been denied oxygen, your client has the floor. From here, smart positioning will not only erase the bad news as an indicator of failure, it will move it to the background. Coming to the forefront will be the story of the underdog, surging onward, taking on challenges in the name of innovation. We hit a snag, your client says, but what greatness was ever achieved without some strife along the way? By guiding PR efforts around this message, you can not only silence critics, but enlist fans.

When it comes to strategic – even seemingly risky – messaging decisions, there are more vital opinions to be considered than just those in an agency conference room. Millions of them, in fact. At Kovak-Likly, we are dedicated to keeping our finger on the collective pulse of the public you want to reach, so that your message can be honed and presented in the best light possible for the greatest response. What are your PR challenges for 2014? We’d love to hear from you and help find the best approach.

As for Tesla Motors, I am rooting for them in a big way. Despite a significant drop in profit, they still beat the expectations of most industry analysts, which tells me there are likely more surprises in store. Personally I hope one of them is an all wheel drive version for the snow with better battery life…and perhaps a tad lower purchase price.

– BML

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May 7, 2014

Global Re-imaging? Or Midlife Crisis?

Ronald McDonald's New Look. Image Courtesy: Huffington Post

Ronald McDonald’s New Look. Image Courtesy: Huffington Post

Everyone loves a good makeover story, often for different reasons. The ultimate “reveal” we eagerly anticipate can be a source of awe or of awkwardness, depending on the subject. Target of admiration or butt of jokes – it’s still a story, right?

When the McDonald’s Corporation announced last week that a newly hip and updated Ronald McDonald was ready to take the promotional and social media world by storm, I have to admit I cringed. The promotional photos, taken to show off Ronald 2014’s new wardrobe – rugby shirt, vest, and cargo pants to replace his trademark yellow jumpsuit – proved the old “lipstick on a pig” adage, except in this case, we see that you can put trendy pants on a clown…but he’s still a clown. (Incidentally, the big red shoes and matching hair remain intact.)

This raises two questions.

1) Who are they trying to reach?

In 1966, when Ronald McDonald first became the company’s national spokesman, clowns and kids went together like, well, burgers and fries. But in all honesty, when was the last time your child asked to have a clown at his or her birthday party? Or ran up to one at an event just busting to get a hug? This week I saw a clown portrayed in a child’s art project at one of our local schools; part of an assignment for a French class, the clown stood next to a child whose thought bubble proclaimed “J’ai peur!” (I’m scared!)

Not to beat up the clown industry. It’s just that for a national chain of restaurants which has put several makeover strategies in play in recent years, it seemed an odd move, sentimentality aside. Will Ronald be hocking the McCafe Coffees to urban professionals as well?

2) How does this fit into the company’s brand?

Since 2011, McDonald’s has made bold moves to shift their stores toward a more upscale, cafe-style atmosphere. Earth tones replacing primary colors, faux leather chairs in place, even an occasional fireplace welcoming customers to sit and relax for awhile. At the time of the campaign’s launch, the McDonald’s Corporation described the makeover as a billion-dollar undertaking. Just three years later, Ronald’s redux seems misplaced within this vision, seemingly aimed at the ball-pit crowd more than the java & laptop customers they have been targeting in recent years.

Not that Ronald should disappear. After coming under fire for using child-targeted marketing to push unhealthy food not long ago, the McDonald’s Corporation had limited the character to supporting Ronald McDonald House Charities, a phenomenal organization which helps more than seven million families per year who are dealing with pediatric illnesses. Helping children feel better by keeping families together seems like a perfect fit for the Ronald McDonald character, especially when the charity arm of the company is so branded with the name.

And yet, here he is at 51 years old, hitting the promotional and social media circuit sporting a new look which includes a “whimsical red blazer” for particularly spiffy occasions. Yes, that wording comes directly from the company’s announcement, along with the fact that Ronald’s new duds were designed by Tony Award winning theatrical designer Ann Hould-Ward of “Beauty and the Beast” fame. They’ve certainly put a lot into this campaign.

It’s a gamble, to be sure. How will midlife crisis Ronald fit in with the overall branding proposition? It will be interesting to gauge response, starting with this week’s bi-annual worldwide convention for McDonald’s franchisees, at which the company will introduce the new concept.

At Kovak-Likly, we know that it truly is all about the brand. Marketing strategies need to be built on a solid platform so that its pieces make sense and fit together. We work with our clients to determine exactly what that platform needs to be, and then walk through the steps that follow, giving each the focus and attention it needs to keep the brand in play.

If you would like to talk to us about how you can best determine your brand and share it with your target customers in a way that is both impactful and consistent, we’d love to talk to you. No big red shoes required.

-BML

 

 

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