Industry News

On The Radar Screen

FedEx Delivers a Dose of PR With Letter to Employees

Although corporate execs aren't willing to reveal how much they paid, FedEx got its name in the papers Aug. 22 when it placed an open letter from CEO Frederick W. Smith in daily newspapers to thank employees who "rose to the occasion" during the UPS strike.

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FedEx's advertising house, BBDO, New York, took out full-page ads in such papers as The Washington Post, The Wall Street Journal, USA Today, Chicago Tribune, New York Daily News and San Francisco Chronicle, according to Greg Rossiter, managing director of PR for FedEx.

Rossiter called the ads unprecedented for FedEx but we see them as much more than a first-time tactic: FedEx found a way of getting good external PR by speaking to its internal audience. (FedEx, Greg Rossiter, 901/395-4440)

Dow Corning: Easing its Public Image

Dow Corning, which is still immersed in the silicone breast implant controversy, is finally realizing what crisis management consultants have said all along: be up front and apologetic - even if it means earmarking funds for victims - because long, drawn-out court battles won't only drain your company coffers.

They'll turn you into the bad guy and give the press a litany of stories to hunt down and print.

The company is reportedly backing down from its previously aggressive stance and has increased its settlement offer to women claiming injury from its products.

In a front-page business story, the Washington Post reported that Dow announced that as part of its $3.7 billion plan to "emerge from bankruptcy court protection," it's setting aside $2.4 billion to resolve claims from 200,000 women. (Corning, 607/974-9000)

AMA and Sunbeam: Bad PR All the Way Around

When PR NEWS went to press last week, the next round in the American Medical Association/Sunbeam endorsement deal had yet to start but already the controversy could be boiled down to bad PR on both sides.

The AMA said it hadn't thought through its decision to allow Sunbeam to use the AMA seal on home health products and Sunbeam was steadfast in saying that it had no intention of releasing AMA from the deal.

For outsiders watching the controversy unfold, it wasn't nearly as riveting as the Tyson/Holyfield hoopla, but it was an earful. Both sides needed to consult with their media relations experts and then come back into the arena with clear messages and final decisions.

New Ventures

PR Newswire Creates PRN International

PR Newswire has created a new business unit, PRN International, that's being headed by Shari Ford, corporate VP of PR Newswire, who's been named president of the new venture (she'll remain in the corporate VP slot as well).

Ford will be overseeing the opening of a PRN office in London in September that will be staffed with media, sales and marketing specialists.

In the future, Ford will also be scouting for more overseas offices. (PRN, 212/596-1560)

Ludgate Launches New Unit To Be Headed by Quattelbaum

Gail Quattelbaum, a 22-year veteran of Burson-Marsteller, has been hired by Ludgate Communications as consultant and lead media trainer as the New York-based investor relations house kicks off a new business unit.

The division will offer media training, presentation know-how and crisis communications services to clients and other companies on a project-by-project basis.

Quattelbaum will team with former BM cohorts Jim DiClerico and Steve Naru. (Ludgate, 212/688-5144)

Labor Stats Good for PR

Stanton Addresses Students About PR Growth

Another sign that it's a healthy period for PR came during Stanton Crenshaw Communications CEO Alex Stanton's keynote address at the Public Relations Students Society of America's 1997 Regional Conference in Ithaca, N.Y.

Stanton cited U.S. Bureau of Labor Statistics which lists PR as one of the 10 industries with the fastest projected job growth from 1994 to 2005.

(Stanton, Crenshaw, 212/727-3300)

Tool for the Trade

New Online PR Site

Ad-supported PR Web, http://www.prweb.com, made it cyberspace debut Aug. 26. The free site allows visitors to post online press releases and profiles of PR firms as well as search its database of press releases.

It also permits users to place bylined articles with links to the authors' Web sites and list new Web sites in search engines. And for $20 each time you use it, its Automated Online Press Release Factory is meant to guide novices with the "creation of 15 common press releases."

(PR Web, 313/427-5065)