filter by tag: crisis

Hanes’ decision to end its advertising campaign featuring Charlie Sheen, following the actor’s domestic violence charges, comes right on the heels of a flurry of other terminated celebrity partnerships stemming from the Tiger Woods scandal.

Given the recent spate of high-profile celebrity partnerships turned sour, many brand marketers are scrambling as they rethink their celebrity engagement strategies for 2010. But, before you hit the panic button, be sure to take a step back and carefully weigh the benefits and risks of celebrity engagement.

Celebrity spokespeople can be a powerful addition to a marketing communications strategy. Celebrities have strong influence with consumers and drive valuable media coverage and exposure for a brand. But there can be some risk involved. Keep in mind that celebrities are human beings – meaning they have plenty of flaws and are apt to make mistakes. While most celebrity partnerships go off without a hitch, those that don’t often end up splashed across news headlines, creating problems (and headaches) for brand marketers.

So what’s the best approach for maximizing value from a celebrity partnership while minimizing your risks?

• Do your homework – In addition to the basics of ensuring a celebrity partner is a good fit for your brand and your target audience, conduct a thorough background check to uncover any “skeletons” that may be hiding in his or her closet. If a celebrity has been tied to scandals in the past or has had previous run-ins with the law, be aware of the risk you are taking.
• Set clear parameters – When developing a contract with a celebrity, clearly outline your expectations and behaviors that will result in termination of the contract. Be sure to structure your contract in a way that gives you an out if the celebrity should engage in behavior that is not in keeping with your brand.
• Be prepared – Tiger Woods is a prime example that even celebrities with a squeaky clean image can be a risk, so prepare for the worst. Have a clearly defined action plan for handling a crisis involving your celebrity spokesperson. Determine in advance what key factors you will use in deciding your course of action. Be sure to identify the key decision makers and map out how you will communicate your decision. This will allow you to take swift action if the need should arise.
• Act quickly and decisively – In the hours following a scandal involving your celebrity partner, what you do – and don’t – say can have a significant impact on your brand. Hanes’ quick decision to pull its ad campaign sent a very clear message to consumers about its brand values to ensure the Hanes brand image stayed intact.

-- Amy Russ, Director

Few stories over the past months have gotten as much attention as the Tiger Woods saga. And as marketing and public relations professionals, it is worth taking a look at the way this story has spiraled from a one-car fender bender to worldwide scandal that will be measured in the hundreds of millions of dollars.

This story, more than most in recent memory, has precipitated a flurry of opinions and advice from public relations professionals on how things “should” have been done as the scandal began to take shape. Some say it would have been best for him to speak publicly and put the rumors to rest – the David Letterman approach. Others argue his silence has been valuable. Still, some say the media are infringing on a hurting family’s privacy and should only be interested in Tiger Woods as a golfer, not as a family man. But for those of us whose business isn’t what is happening in Tiger’s personal life, it is worthwhile to look at the impact this scandal has on Tiger Woods the brand.

Image Credit: Examiner

Tiger Woods isn’t “just a golfer.” For many, he’s essentially the public face of golf. And he certainly is the public face of many companies who have paid millions to see Tiger don their watches, consume their products or speak to the superiority of a company, with the expectation that both deliver high standards and superior performance. His sponsorships may be based on his athleticism, but they go beyond that. And at this point, his personal brand has been turned upside down, and ultimately, the financial impact of this scandal is a real one. Some say what he does on his own time is his own business, but it is a hard argument to make when his actions could do financial harm to those that have invested hundreds of millions in his image.

As sponsors continue to “evaluate” their sponsorship deals, it will be interesting to watch how much of an impact the personal side of an athlete who was celebrated for his sports’ achievements and not for his personal life will have. Recently, AT&T announced it, too, would drop Tiger Woods as a sponsor, following in the footsteps of Accenture, Tag Heuer and Gillette, who have ended or scaled back relations with Tiger.

In today’s content-obsessed media environment few things are secret – or sacred – and it is extremely difficult for a brand (whether a person or company) to control its reputation. Reputation and credibility can be stripped away in a matter of minutes not only because of a scandal, but also because of poor communication and management during the crisis. And many would argue this Tiger Woods story is a classic way not to handle a crisis.

Cone’s EVP of Crisis Prevention & Management, Mike Lawrence, recently had the privilege of speaking at the 2009 Bulldog Media Relations Summit in New York, NY. His presentation, entitled “Lightning Response: Surviving the First 24 Hours of Crisis” can be viewed below.

Thank you to everyone who attended!

As yesterday’s New York Times reported, Chevron hired former CNN reporter Gene Randall to create an Internet video in response to a “60 Minutes” investigation about the company’s oil pollution in the Amazon region of Ecuador and the resulting $27 billion lawsuit.

Chevron’s video lays out the oil company’s side of the debate, downplaying its responsibility for the oil waste in Ecuador’s waterways. The segment signs off with, “This is Gene Randall reporting.”

While this type of advocacy isn’t new to the arsenal of PR professionals, the reach and level of engagement is greater today with the democratization of mass communication and the proliferation of social media tools.

With corporate reputation crucial in a struggling economy, Chevron’s approach underscores the importance of transparency and maintaining stakeholder trust when developing counter-crisis strategies.

-- Jennifer George, Account Supervisor

Cone's Chief Reputation Officer Mike Lawrence also commented on Chevron's crisis response in a recent Ad Age article.

Oprah is the holy grail of celebrity endorsements, so it shouldn’t have come as such a shock to KFC when its local franchises were inundated with customers eager to collect on a promise of a free two-piece grilled chicken meal.

To help launch its new grilled chicken line as a healthier alternative to fried chicken, KFC brought in Oprah, who is very publicly struggling with weight management, to promote the grilled chicken on her show. As part of the deal, Oprah viewers could visit her Web site and download a coupon for a free two-piece grilled chicken meal. Unprepared for the hoards of Oprah fans, KFC franchises were overwhelmed by the traffic. Customers complained of long lines, stores refusing the coupons, and Internet rumors surfaced about an alleged riot at a Manhattan KFC, which the chain is denying.

Marketing execs at KFC hit a home run when they signed Oprah, but could have better prepared franchisees for the increased demand that comes with an Oprah endorsement. The following are some simple tips for communicating nationwide promotions to local franchises.

• Communicate promotions as far in advance as possible: Give franchisees the opportunity to prepare their stores for crowds by ordering extra product or scheduling additional staff.
• Provide promotion activation guides or tool kits: Ensure franchisees are communicating the right messages to customers by supplying message guides and background information on the promotion, and give them tips for marketing the promotion locally.
• Set expectations: Provide traffic data from past promotions, or proxy data, so franchisees won’t be caught off-guard during the campaign.
• Measure ROI: Use this as an opportunity to gauge consumers’ attitudes about the company and the promotion. This will help not only in determining the success of the promotion in changing customers’ opinions, but guiding decision-making about future promotions.