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PRobecast #143: Fans’ favorite brands, Target, RIM, and Rio de Janeiro

January 26th, 2012 by

In this episode of PRobecast, Ann Dalrymple, Sam Friedman and Josh DeStefano join me in talking about which brands Patriots fans and Giants fans love, Rio de Janeiro’s infrastructure problems, Target’s complaints about online shopping, and RIM’s new CEO.

Rio Building Collapse: Will Brazil be ready for the Olympics? – Brazil’s buildings have suffered from poor structure for decades, and now that the 2014 World Cup and 2016 Summer Olympics are on the horizon, this could potentially be a disaster for these global events. Over the past year, there have been manhole explosions which injure people, and new buildings and highways already have cracks in them due to poor design. Rio is known for being one of the most beautiful cities in the world, and these infrastructure and housing problems aren’t doing them any favors for tourism. Do you think the Olympics or the World Cup organizations should be doing their part to help Rio out? Will these problems deter tourism for the events?

Giants Fans Dig Hip Hop; Patriots Fans Dream on Steven Tyler – Social media analytics firm Colligent has completed a survey on which brands Patriots fans and Giants fan love most. New England fans are notorious for their allegiance, so don’t get in the way of our Dunkin Donuts and Harpoon craft beer, and we’ll stay away from Giants’ Bruce Springsteen and Reebok!

Showdown Over ‘Showrooming’ – Target is tired of being used as a showroom for sites like eBay and Amazon. Last week, in an urgent letter to vendors, the Minneapolis-based chain suggested that suppliers create special products that would set it apart from competitors and shield it from the price comparisons that have become so easy for shoppers to perform on their computers and smartphones. Where special products aren’t possible, Target asked the suppliers to help it match rivals’ prices. It also said it might create a subscription service that would give shoppers a discount on regularly purchased merchandise. “The traditional retailers are still doing business the old way while Amazon has reinvented the model,” says Sucharita Mulpuru, retail analyst at Forrester Research. “Wal-Mart and Target are willing to sell a few things at a loss. Amazon’s whole business is a loss leader.”

RIM’s new CEO Wants to Focus More on Consumers – Thorsten Heins, wants the company to improve its product development while also becoming better at marketing, he said during a conference call on Monday. At first, Heins will focus on improving the company’s marketing efforts, which include hiring a new chief marketing officer as soon as possible, and the way it develops products. “We need to be more marketing driven, and we need to be more consumer-oriented because that is where a lot of our growth is coming from,” said Heins. Another of Heins’ main challenges will also be to help RIM regain some of former glory in the U.S. The company watched its market share drop from 24 percent in the third quarter of 2010 to just 9 percent in the same period last year, according to Canalys. However, the picture for RIM in other parts of the world is more positive. The Middle East and Africa and Southeast Asia were particular bright spots during the third quarter, Canalys said. “There are a number of markets where BlackBerries are still selling really well, but the problem RIM has that everyone is focused on the U.S. market, and that is where is has taken a real beating,” said Cunningham. It is likely to get worse before its gets better for RIM. Just like vendors such as Sony Ericsson, Motorola Mobility and HTC RIM struggled during the fourth quarter. RIM has its BlackBerry World conference coming up at the beginning of May. That will be one of the first opportunities for Heins to present his vision for the company, and bring back some excitement.

Now it’s time for the PRobecast PR Power Ranking – which is when we go around the room and pick the story that we think ranks the highest PR-wise – meaning any aspects of PR could be the reasoning behind the pick. Is it the story itself, good data that was used, what’s getting the most pickup, was it a good PR move the company made, etc.

This week, we chose Target as the Power Ranker of the Week. We felt that online shopping is growing more and more, so kudos to Target for reaching out to vendors and making the attempt to stay on the front foot. It’s not easy competing with Amazon or eBay, so good luck, Target!

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My so-called marginal tax rate

January 25th, 2012 by

Unlike (too) many of my posts, this will be mostly about PR – the PR nightmare resulting from the presidential candidates’ lack of transparency and foresight, and near-terminal indecision, with special attention to Mitt Romney’s PR fumbles.

The quick lesson: if you’re in a public role, either as a business leader or a politician, plan for the worst. PR people can help you: we’re natural-born catastrophizers. We see downside everywhere; it’s part of the job description. First we think of something positive about a client’s products, services and value proposition and then we turn around and attack those assumptions from all angles. It’s the only way to prepare for the tough questions inevitable from the press and, at some point, consumers.

Apparently Mitt Romney thought he was immune from catastrophe. Either that or his PR counsel didn’t worry enough about worst-case scenarios, especially with regard to timing of disclosure of details of his taxes, financial status and the disposition of his investments. Perhaps he was holding the story for the fall when the Democrats would certainly raise a challenge, and his PR counsel went along with it (which seems inexplicable). Whatever. The strategy failed. His own side attacked, making things much easier for the incumbent and making the GOP look like a pack of clowns.

As a mostly-private person I am on Romney’s side. I wouldn’t disclose that information. But he chose a public life, and with the choice comes a diminution of personal rights, especially the right to privacy. (That’s a whole separate subject with Google’s Monday announcement.)

It doesn’t matter that Gingrich soaked Freddie Mac for millions as an ‘historian’ or that John Kerry hides behind Teresa Heinz Kerry and tried to fool people and dodge taxes by berthing his (New Zealand built, for shame) boat in Newport, R.I. It doesn’t matter that the Kennedys built their fortune rum-running, or the Bushes through banking and oil. It doesn’t matter that Bill Clinton is cleaning up, post House impeachment and general running around, giving speeches. What matters is Romney was caught flat-footed, and it’s critical for a politician to be on the front foot, anticipating everything.

PR, properly strategized and executed, keeps you on the front foot. It helps you prepare for questions you don’t want to answer. It makes you consider a position from many points of view. No one is immune from catastrophe. Plan accordingly.

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Scaring the masses for effect: does the end justify the means?

January 24th, 2012 by

Our media love scaring us. Whatever the issue, even when the government, allied advocacy groups, and media, are correct about the problem and solution, they can’t help but send a message in such a way that terrifies the general populace into thinking if they don’t do what the “experts” think is best, they will die a slow and painful death.

The newest controversy is about anti-obesity ads targeting children. NPR focuses in on Georgia, a state with the second-highest obesity rate in the nation, where close to 1 million children reportedly obese. The ads show obese children ‘scared’ of what’s happening to them and why they’re fat. Those children are accompanied by graphic images of other fat children or horrible diseases one gets from obesity, such as hypertension. Children’s Healthcare of Atlanta, which is spending $25 million on a five-year campaign to fight obesity, justified the scary tone it’s setting:

“It has to be harsh. If it’s not, nobody’s going to listen,” says Linda Matzigkeit, vice president of Children’s Healthcare of Atlanta, the pediatric hospital running the campaign.

Rodney Lyn of Georgia State University’s Institute of Public Health disagrees with the tone of the campaign, saying,

“This campaign is more negative than positive…We know that stigmatization leads to lower self-esteem, potential depression. We know that kids will engage in physical activity less because they feel like they’re going to be embarrassed.”

Both of the individuals are correct. People are naturally lazy, and if they aren’t scared, they won’t do something because they ‘don’t have the time’ (read: interest) in taking care of their health. The result? Millions spent on healthcare that could be saved if they weren’t so fat. That said, Lyn is correct that the campaign is a scare tactic designed to make kids and parents feel if they don’t immediately take action, they will suffer drastically. The fear-mongering is not necessary to inform the public about the dangers of obesity: too much scaring could lead either to more psychological problems, or more visits to the Emergency Room that increase wait time and over exhaust doctors, when those problems could have been solved at home instead.

I personally side with Matzigkeit (names NOT to be tested on the spelling), and say there are times fear-mongering is a good thing. Having just returned from Israel, I can contrast the foods eaten and portion sizes (smaller, more fruits and veggies, more natural) there to America (processed, hormone-injected, larger, more salt) and I felt like I ate much healthier there than I do here. Given the difficulty then of getting people into good eating habits (myself included) is no doubt difficult, but scaring them to take actions that ultimately lower healthcare costs might work.

What do you think? Is it justified for government and advocacy groups to scare people into doing something if it makes a positive difference? Or should they try to educate people rationally and make them see why eating healthier is better, all without fear-mongering?

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