Thanks to the Internet and the urgings of marketing gurus, we've entered an age of highly targeted marketing. That's not a bad thing. It should make us more efficient and more
economical. The problem with focusing so closely on specific audiences, however, is that you forget that audiences are like radio waves. Just because on paper they say they don't
go beyond a particular geographic area, doesn't mean you can't pick them up when driving around. Both our crises this month are the results of bad cases of tunnel vision.
Philip Morris Company (the corporation, not the brand) seemed to be speaking only to investors and potential shareholders when it changed its name to "Altria." The problem is
that their opponents are not about to let the consuming public forget that despite the altruistic sounding name, 61 percent of their sales come from a known health hazard. Already
the Web sites and consumer activists are making sure that that fact does not go unmentioned in newspaper coverage of the company. Most coverage of the shareholder vote to change
the name specifically referenced their ties to tobacco. Our guess is that this is not a problem that will go away in the near future.
In a similar case of overly focused messaging, Abercrombie & Fitch targets men and women between the ages of 18 and 25 in its ad and marketing campaigns. It publishes a
magazine that features more nude bodies than clothes and gets quite a bit of attention by doing so. So much attention, in fact, that various moral crusaders have launched boycotts
of their products. But that brouhaha paled in comparison to their most recent marketing gaffe - putting what some considered ethnic slurs on their t-shirts. No doubt some market
research probably determined that men between the ages of 18 and 22 like bad ethnic humor and so they thought it would be amusing to put stereotypical slogans on a shirt and sell
it for $24.50.
Needless to say, crisis ensued. Hundreds of protestors took to the sidewalks in front of their stores chanting, "Racist fashion's got to go." The issue hit the media, the
protesters presented a long list of demands, a boycott has been called and the Organization of Chinese Americans has started an email campaign to make sure the company lives up to
its promises. I give A&F mixed grades on their response. While their official message was "We make fun of everyone" (which is hardly an excuse for racism), they were quick to
take action and remove the shirts from all 311 stores in 50 states. (Katie Paine is president of KDPaine & Partners, [email protected])
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Abercrombie & Fitch - HQ: New Albany, Ohio
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Criteria
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Grade
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Comments
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Advice
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| Extent of coverage | C | The story made headlines for a few days but doesn't seem to have enduring "legs." | Fast action and plain speaking work well to defuse a crisis. By removing the offending products, the company deflected media attention. |
| Effectiveness of spokespeople | C | The company's message may have been an odd one, but spokesman Hampton Carney was effective in getting it out there. | If you keep your messages simple, and make sure they sound like sound bites, chances are you can make any spokesperson effective. |
| Communication of key messages | D | The message that "we make fun of everyone" isn't necessarily the best message - but it definitely got out there. | Didn't these guys ever listen to their mothers? How many times do we have to tell you that just because everyone is doing something doesn't make it right. And just because you are equal-opportunity racists doesn't mean your actions are justifiable. |
| Management of negative messages | C | The problem with A&F is it is so hard to tell what is a negative message for them. Both the shirt controversy and the dust up over previous catalogs position the company as irreverent and outrageous, which is just what their target audience wants. |
Sometimes what is a negative message for one audience can be a positive or at least neutral message when heard by different ears. |
| Impact on investors | D | Investors generally don't like recalls and boycotts but whether it has any impact won't be known for a few months. In the meantime, the investment community is probably as baffled as the rest of us as to why A&F even thought this was amusing. |
Boycotts have had mixed impact on actual sales, but the mere threat of them sends investors scurrying for cover. |
| Impact on customers | C | The response was mixed. Some consumers saw the shirts as amusing, some saw them as offensive. However if A&Fs opponents can make an argument that this is a consistent pattern of racism, they'll lose a lot more in a boycott than the cost of recalling a few shirts. |
In today's world of branding, all it takes is one incident to take your brand from "cool" to "anyone-wearing/buying-that-must-be-a-clueless-dork." Guard your reputation with all the talent you can muster. |
| Impact on employees | D | No one likes to walk through a crowd of chanting protesters on their way to work or be the subject of ridicule in the press. | Public protests can be devastating to employee morale, but crisis can also be a powerful bond to bring people together. Be as honest and open with employees as you can be, and above all keep them informed. |
| Overall score | C- | As a person not in A&F's target audience, the retailer's shirts offended me, and my opinion of their brand has declined, but they probably don't care what I think. Will their target audience change its behavior as a result of this crisis? Probably not. Can this reputation be saved? Yes. |
It's fine to focus your communications on a specific target audience, but remember that there are other eyes and ears out there. Chances are someone you didn't intend to reach will hear whatever message you communicate. |
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Altria - HQ: New York, N.Y.
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Criteria
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Grade
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Comments
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Advice
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| Extent of coverage | C | Altria received widespread coverage during the initial announcement of the name change and then again when the shareholders officially voted to adopt it. Most of the coverage however, speculated on the reasons for the name change. |
Sometimes name change coverage is too much of a good thing. While you want to get the word out, PR may be the wrong way to do it, since it leaves the door wide open to ridicule. This is one instance where I find paid promotion and advertising to be far more effective. |
| Effectiveness of spokespeople | C | The company's official spokespeople were "on message" about what Altria meant and what they were trying to do with the name to incorporate a broader corporate image and loftier ideals. Unfortunately, the stock analysts contradicted them by mentioning the fact that the stock was depressed by the tobacco linkage, so the conclusion most reporters drew was that the name change was being done to boost the stock price. |
Before any major announcement, make sure you check your media coverage to see who the key reporters are and who is most likely to call for quotes. Make sure those "thought leaders" are thoroughly briefed on what you are doing so they echo rather than contradict what you are trying to communicate. |
| Communication of key messages | C | They got the word out that Altria means "high" and used the publicity to communicate the notion that they were more than just tobacco, but it will be a while before consumers and investors believe that - if ever. |
Don't confuse outputs with outcomes. Just because your message shows up in your media tracking report doesn't mean anyone believed it or will act on it. Make sure you survey your audiences to see if they really did "get the message." |
| Containment of negative messages | F | No matter how hard they tried, they couldn't escape all the negative comments about the Tobacco Settlement, law suits, decline in stock price, etc. |
If you have a millstone around your neck, it's best to avoid the limelight. |
| Impact on customers | C | Consumers will probably not buy any more or any fewer Altria products as a result of the name change. Those who were boycotting all Philip Morris brands will simply shift their ire to Altria. Those who don't care still don't, and since Altria is not a name that will show up on their grocery store shelves, they will remain immune in their oblivion. |
In any crisis, it is important to track the actions you want your audiences to take as a result of your communications. Do you want them to buy more products? Stop a boycott? Or maybe take no action at all? Whatever the answer, make sure you set up a system to monitor the response. |
| Impact on investors | D | Investors are smart people, and while they no doubt got the message that this name change was aimed at boosting the stock price, they also know that the company is still the same company underneath all the press releases. |
If you want to attract the attention of investors, do something newsworthy, don't just deal in words. A name change is purely cosmetic and a company trying to gloss over past failings with better marketing doesn't fool investors. |
| Impact on employees | C- | What they were saying with this name change is that the old days are gone, and this is the new company with a new philosophy. For the people who embrace change, they will view this as a good thing. Unfortunately, most people don't like change, so expect grumbling. |
Name changes are significant events in the minds of employees because they affect so many facets of their lives - from the name on their pay stubs, to the letterhead, to the name on the side of their buildings. You need to make sure that the day the name changes is seen as the start of better times - not worse. |
| Overall | D+ | It will be years before the impact of this name change will be known. For now, I'd say it was a very small ripple in a very large pond. | Brand reputation is changed over years, not months, so plan on gauging image shifts over the long haul, not the short term. |