Yoga Apparel Company’s PR in Downward (Dog) Spiral

June 12, 2013 by Leave a Comment
Yoga Apparel Companys PR in Downward (Dog) Spiral

THE PR VERDICT: “D” (PR Problematic) for Lululemon. (Pictured: Former CEO Christine Day)

Off with their heads! That may have been the cry from yoga apparel maker Lululemon‘s board of directors, which was likely behind the resignation of two key executives after an embarrassing and costly incident. The company had to recall their signature Luon yoga pants after customers complained that they revealed more than just good form in yoga classes. The switch from opaque fabric set Lululemon back to the tune of $140 million, with a drop in stock prices. As the sheer pants exposed more tails, heads were sure to roll.

First to go was Chief Product Officer Sheree Waterson, who left the company in April. And yesterday, Christine Day announced she would be stepping down from her position as Lululemon’s CEO after nearly six years. PR was spun far thicker than the fabric that caused the problems in the first place. Day calmly called the move a “personal decision,” adding that she would stay on until a successor was named. This was, of course, meant to sound like all were in agreement and yogically serene.

The stock market was not quite so zen. Lululemon’s shares fell 12 percent in the wake of the news, which brings up the question of not only when to fire, but if. Yes, this was a costly mistake, and certainly an embarrassment for one of the most successful athletic apparel chains around. But the beheading, following the mistake, may have taken things from bad to worse.

THE PR VERDICT: “D” (PR Problematic) for Lululemon. Too much unrest in this high-end clothing company is making them look bad.

THE PR TAKEAWAY: Sometimes, it’s better to let sleeping (downward) dogs lie, at least for a while. A given in any business is that mistakes will be made, and a large part of any good PR department’s work is cleaning up after the initial mess. But once that’s done, why create another mess, just as the public is forgetting about it all? It’s the job of any good PR to advise execs about potential fallout resulting from drastic moves. They won’t want to hear it, but they’re sure to look for someone to blame when they find themselves in an even more painful position.

Filed Under: Advertising and PR, Branding, Companies & Markets, Marketing and PR Tagged With: , , , , , , , ,

Galliano Fashions a PR Comeback

June 10, 2013 by Leave a Comment
Galliano Fashions a PR Comeback

THE PR VERDICT: “A” (PR Perfect) for John Galliano.

Is John Galliano’s exile from the fashion world over? The designer has finally broken his silence, following his spectacular fall from grace in 2011 after making anti-Semitic rants in Paris. One episode in particular was videotaped, prompting his immediate firing from Dior and later conviction by a French court.

In his first interview since the scandal, Galliano opens up to a very sympathetic Vanity Fair.  His story has the making of an epic novel – the “un-idyllic” childhood in a multi-cultural but rough London neighborhood, where he was bullied for his homosexuality; his ascent into the world of high fashion; and the demons unlocked in fashion’s world of high pressure and unhealthy pampering. En plus, the unclear provenance of the incriminating video, fed to the media before Galliano’s arrest, provides just a hint of conspiracy. Vanity Fair spares no effort to exonerate, consulting and quoting experts to make the case that, when he hissed those spiteful things to people, Galliano just couldn’t help himself: Alcohol and drugs had simply made him insane.

Center stage in the article is Galliano’s contrition. Friends and other supporting sources, such as Jewish leaders he met through an executive of Vanity Fair’s publisher Condé Nast, vouch for the same. He studied the Holocaust, attended service at a synagogue, and is finally making tentative steps back into his profession, supported by fashion royalties such as Oscar de la Renta and Anna Wintour. Shalom, John, welcome back!

THE PR VERDICT: “A” (PR Perfect) for John Galliano. With a little help from influential friends, a comeback is always possible.

THE PR TAKEAWAY: For perfect rebound PR, timing is everything. Prepare the line-up of your supporters carefully, and make sure potential antagonists remain silent; one of the key stakeholders in this saga, Galliano’s former employer LVMH, declined to comment due to ongoing litigation about Galliano’s compensation. (The article hints at a soon-to-be-expected “human-to-human” apology from Galliano to his former bosses.) The glitterati love a tormented, artistic soul, and once confession and amends have been made, one may be pardoned and permitted to go back to work. Our PR advice? Post-comeback, work in silence.

 

Filed Under: Branding, Celebrity, Marketing and PR, Media, Religion Tagged With: , , , , , , , , ,

The PRV Report Card: This Week’s Winners and Losers

June 7, 2013 by Leave a Comment

The PRV Report Card: This Weeks Winners and LosersPR WINNER OF THE WEEK: “A” (PR PERFECT) TO New Jersey Governor Chris Christie for pulling off another political pirouette. A week after rekindling his late summer hurricane “bromance” with President Obama, the Republican governor put the partisan gloves back on in the wake of Democratic Sen. Frank Lautenberg’s death. Christie appointed the state’s Republican Attorney General to caretake Lautenberg’s seat and called an early, off-cycle election to fill the seat permanently. No matter that the special election will cost taxpayers an extra $24 million; Christie successfully sold it as being in the state’s best interests. Of course, it nicely serves the GOP’s and his own interests as well by keeping a popular Democrat and his strong partisan support out of the November general election. A purely political calculation, but Christie made it look like he was just doing the right thing for his constituents.

The PRV Report Card: This Weeks Winners and LosersPR LOSER OF THE WEEK: “F” (FULL FIASCO) TO Major League Baseball’s latest steroid scandal. Twenty baseball heavyweights, including Alex Rodriguez of the New York Yankees (left), are under investigation for alleged involvement in a Florida “anti-aging clinic” whose elixir of youth was performance enhancing drugs. A-Rod previously admitted to taking PEDs from 2001-3, but has denied taking them since. If found to be lying, he could face a 100-game suspension. No word on the effect that will have on his 10-year, $275 million contract, especially after a bad season.

The PRV Report Card: This Weeks Winners and LosersTHE PRV “THERE’S NO ‘THERE’ THERE” AWARD to The Guardian, the British newspaper that breathlessly reported that the National Security Agency (NSA) issued a “top secret” order for the daily phone records of millions of Verizon customers. The order, the paper said, “shows the scale of surveillance under the Obama administration.” US lawmakers, who can usually find outrage in a cup of coffee, were unmoved. Senior Democrats and Republicans in Congress said they know about it and have no particular problem with it, especially in the wake of the Boston Marathon bombing. The White House simply said measures are in place to ensure that the program, which does not permit authorities to listen in on phone calls, complies with various laws. It also appears this clandestine order The Guardian stumbled upon may just be a reauthorization of a program that’s gone on for years. Phonegate it’s not. Ho-hum.

Filed Under: Featured News Stories, Marketing and PR, Media, Politics/Government Tagged With: , , , , , , , , ,

Cook Keeps Apple’s PR Polished

June 4, 2013 by Leave a Comment
Cook Keeps Apples PR Polished

The PR Verdict: “B” (Good Show) for Tim Cook and Apple.

Though its market value has declined by a gasp-inducing one-third since September, Apple remains the most valuable public company in the world. Nearly everyone expects each new Apple product launch or refresh to be a game-changer, so when the company falls short of these outsized expectations, it tends to be publicly punished more harshly than others. As Apple moves inevitably through a period of slower growth and longer product cycles, its need to manage expectations and tend to its well-burnished image takes on greater prominence. PR to the rescue!

CEO Tim Cook, who has performed superbly in the all-but-impossible role as successor to the iconic Apple leader Steve Jobs, is well aware of these imperatives, as is Apple’s best-in-class PR and marketing team. Apple’s annual developers conference, where it typically unveils its latest and greatest, starts next Monday. Cook has been out polishing his Apple in preceding weeks, successfully defending the company in a May 21 appearance before a Senate committee bent on making Apple the poster child for corporate tax avoidance. Last week, at a prominent tech conference, he laid out a less aggressive but still ambitious agenda of product development, strategy, and enhancement for 2013, affirming that Apple has “several more game changers in us” but refraining from promising the iMoon. What the secretive, surprise-loving Apple will unveil next week remains anyone’s best guess. Fortunately, people are still guessing.

THE PR VERDICT: “B” (Good Show) for Apple and Tim Cook, for taking care of business when business doesn’t take care of itself. Probably only Steve Jobs himself could earn an “A.”

THE PR TAKEAWAY: Reputation management never ends, but occasionally it takes on heightened importance. Apple responded proactively and aggressively to accusations of tax avoidance and put the blame where it belongs – on the tax code. It did so at a time when its product cycle has slipped ever so slightly back to earth, addressing that with statements tempering specific (and more measurable) short-term expectations while promising bigger, better, shinier things to come. The trick is finding the PR wording that allows everyone to hear what they wanted or expected to hear – not easy, but as Apple’s combined management and PR teams have shown, it can be done.

Filed Under: Advertising and PR, Branding, Companies & Markets, Marketing and PR, Media, Silicon Valley, Tech Sector Tagged With: , , , , , , , , , , ,

Nike Drops Charity, Yet Their PR Image Lives Strong

May 29, 2013 by Leave a Comment
Nike Drops Charity, Yet Their PR Image Lives Strong

THE PR VERDICT: “B” (Good Show) for Nike, which very quietly severed a costly tie with Livestrong.

Yesterday, Nike announced they would cease production of products associated with the Livestrong brand. Livestrong, the charitable organization founded by cyclist Lance Armstrong, had a nine-year relationship with the world-famous sportswear brand that raised over $100 million through the sales of products. “We expected changes like this,” said a Livestrong spokesperson. As did the PR world.

After Armstrong admitted to doping his way through all seven of his Tour de France wins, his sponsors jumped ship faster than any of Armstrong’s cycling records, Nike included. But how would it look if they abandoned a charitable foundation? Livestrong was blameless, their only crime guilt by association.

Nike’s PR team knew that withdrawing money from a charity, even in the wake of a disgraceful scandal could backfire on them. The more sensible and low risk option? Pull the plug on the products and continue to fund the charity directly.

THE PR VERDICT: “B” (Good Show) for Nike for beginning to sever ties with a high-profile charity with minimum fuss.

THE PR TAKEAWAY: When ties must be cut, don’t hack; slice gently. The harsh fact is that Nike had to distance itself from Armstrong and all to do with him. However, this is a charity; how to distance without looking like villains? Stop production of products –  a practical measure anyone could agree with – while confirming to the media that the company will keep making donations to the charity. Without patting themselves on the back, Nike still comes out looking like a decent company, despite dealing what may well be a fatal blow to Livestrong. (Actually, their founder did that.) What happens to Livestrong remains to be seen, but Nike has already come out ahead.

Filed Under: Advertising and PR, Branding, Highest Graded, Marketing and PR, Media, Not for Profit /Charitable Giving Tagged With: , , , , , , , , , , ,

Three Steps FWD, Two Steps Back?

May 15, 2013 by Leave a Comment

Screen Shot 2013 05 13 at 7.37.31 PM 150x60 Three Steps FWD, Two Steps Back?Political advocacy group FWD.us was launched last month by Facebook’s Mark Zuckerberg and so far it has run up an impressively depressing string of PR gaffes. As a tax-exempt “social welfare organization” (a la Citizens United), it can raise and spend money to promote political and legislative aims virtually unchecked. But the group’s missteps have made it the story instead of its cause and FWD.us now runs the risk of having little influence or gravitas.

Its initial focus was clear: comprehensive immigration reform. As a cause this made perfect sense. It is near and dear to talent-hungry tech firms and backed by deep-pocketed Silicon Valley luminaries including Eric Schmidt, Marissa Mayer and Bill Gates. The launch augured an auspicious foray into muscle-flexing issues advocacy in Washington.

But things went pear-shaped from the start. An embarrassing leak spoiled its launch, disclosing a seemingly unseemly strategy to promote its agenda via “avenues of distribution” dominated by member companies like Facebook and Yahoo. The leak forced president Joe Green (Zuck’s roommate at Harvard) to apologize. Then, it alienated supporters with a confusing advertising campaign that veered way off-topic, advocating for controversial projects like the Keystone XL pipeline and against Obamacare. FWD.us said the ads sought to create “political cover” for supporters of immigration reform in Congress, but its move prompted progressive organizations to pull ads from Facebook in protest, and two key Silicon Valley entrepreneurs to later withdraw from the group.

The PR Verdict: “F” (Full fiasco) to date for Zuckerberg’s FWD.us, for bungling what should have been a sure-footed start. 

The PR Takeaway: Opening baby steps need to be unambiguous and unassailable. Opening gaffes can sink a new venture, and one misstep can lead to and/or magnify others. Move cautiously and deliberately. Leaks happen, so be mindful of how even internal communications might play in public. If something leaks, get back on message fast – with actions, not words, that spell out your group’s mission and galvanize supporters. This isn’t that hard. If Zuckerberg’s other business had stumbled as much at the outset, he might still be at Harvard studying for finals.

Filed Under: Companies & Markets, Lowest Graded, Marketing and PR, Politics/Government, Silicon Valley, Tech Sector Tagged With: , , , , , , , , , ,

The Mean Girls of Retail: Abercrombie & Fitch

May 13, 2013 by Leave a Comment

blog 2 photo 150x150 The Mean Girls of Retail: Abercrombie & FitchGotta love Mike Jeffries, the surgically altered (in a big way) CEO of teenage clothing retailer Abercrombie & Fitch. He has grabbed the headlines yet again for his “mean girl” management philosophy. He doesn’t like uncool people and he dislikes ugly people. As for people who are fat? They have no place in the world of Abercrombie.

The Internet went wild last week as the media reported on a new book called The New Rules of Retail co-written by Robin Lewis. Lewis told the media that Mike Jeffries, “…doesn’t want larger people shopping in his store, he wants thin and beautiful people.” The basis of the comments come from an interview Jeffries did with Salon.com in 2006. Jeffries explained his mean girl philosophy then as follows: “In every school there are the cool and popular kids, and then there are the not-so-cool kids. Candidly, we go after the cool kids.” He went on to say, “A lot of people don’t belong [in our clothes], and they can’t belong. Are we exclusionary? Absolutely.”

Refusing to make any concessions, the retailer stops at a size ten for women. As the outrage over his recently unearthed comments continued, Jeffries and A&F were unavailable for comment. Jeffries is simply going to sit this controversy out.

The PR Verdict: “D” (PR Problematic) for Abercrombie & Fitch. Could this become one of the most disliked brands in America?

The PR Takeaway: Be careful of whom you offend. Given that the comments date back some seven years there was an opportunity for Jeffries to revise his views, but he is not giving in. Fine to stick to his guns but with nearly 40 percent of American women considered overweight, and many controlling the purse strings of their teenagers, A&F may come to regret its no comment policy. One of the lessons from high school is that the world is a fickle place. It doesn’t take much to switch from being the popular kid at school to suddenly being the unpopular one.

Filed Under: Branding, Companies & Markets, Lowest Graded, Marketing and PR Tagged With: , , , ,

The PRV Report Card: This Week’s Winners and Losers

May 10, 2013 by Leave a Comment

The PRV Report Card: This Weeks Winners and LosersPR WINNER OF THE WEEK: “A” (PR Perfect) to Charles Ramsey, the Cleveland man who helped free three girls held captive in his neighbor’s house for more than a decade. Ramsey’s Internet stardom was launched with a local TV interview that included colorful one-liners like “I knew something was wrong when a little pretty white girl ran into a black man’s arms.” One of the only people available to the media in the early hours of the story, Ramsey was roundly lauded for both his actions and his handling of the unexpected attention. Not everyone was positive: Slate gnashed its teeth over “a troubling trend of the ‘the hilarious black neighbor’.” Overall, though, the Cleveland dishwasher came off as heroic, lively, and genuine.

The PRV Report Card: This Weeks Winners and LosersPR LOSER OF THE WEEK: “F” (FULL FIASCO) to rappers and their agents who lured the allegedly unsuspecting entertainers into lucrative endorsement contracts, only to have them rescinded shortly thereafter. Three rappers were dropped this week: Reebok let go of Rick Ross, while Pepsico released Li’l Wayne and Tyler the Creator. Suddenly their lyrics were deemed to be offensive and racist and not in keeping with corporate values. The rappers issued lukewarm apologies, but what was clear was that nobody had done their homework before signing on the dotted line. Finally, Reverend Al Sharpton weighed in and said everybody was at fault. We agree. Everyone gets an “F” -  no debate.

The PRV Report Card: This Weeks Winners and LosersTHE PRV “THERE’S NO ‘THERE’ THERE” AWARD TO Georgia Holt, aka Cher’s mother. Perennially youthful celebrity Cher is a legend when it comes to reinvention of media relevancy, and her documentary Dear Mom, Love Cher - which recently aired on the Lifetime network – is one for the PR books. However, press for the tribute to Mom sounded slightly less than scintillating. When told of granddaughter Chastity’s upcoming sex change to grandson Chaz, the quote from mere Cher was, ”That’s interesting, sweetheart.” Hm. Okay. Well, good for her, but was it good for PR?

Filed Under: Advertising and PR, Branding, Celebrity, Featured News Stories, Marketing and PR, Media Tagged With: , , , , , , , , , , , ,

Martha Stewart and Match.Com: Is It Love?

May 8, 2013 by Leave a Comment
Martha Stewart and Match.Com: Is It Love?

THE PR VERDICT: “A” (PR Perfect) for Match.com.

You must have heard about it by now – after all, Saturday Night Live has already done a skit on it – but in case you haven’t, Martha Stewart, domestic diva-turned-entrepreneur, is turning to the Internet in the hopes of finding true love. Ms. Stewart has joined millions of other singles by posting a profile on dating website Match.com. She shared this tidbit last week in a candid conversation about her love life with NBC Today show host and longtime friend Matt Lauer.

What you may not have heard in the rush-to-coverage that followed, however, was much of a response from Match.com. At first blush, this seems a bit odd. After all, having one of the world’s most successful and recognizable businesswomen touting your product on national television is a dream come true. Indeed, the PR team over at Match must still be reeling from such unexpected good fortune.

Or are they? Matchmaking is a tricky business – even more so when your new unofficial spokeswoman is a global celebrity whose happiness depends on your company coming up with the goods. Sam Yagan, the CEO at Match.com, agreeably appeared on an episode of Today to help Ms. Stewart write and post her profile, but other that the Match.com response has been very low-key: no press releases, interviews, or big social media blitz. This is the right approach: Save the champagne for the engagement party.

THE PR VERDICT:  “A” (PR Perfect) for Match.com. By staying out of the media limelight now, Match leaves itself room to take credit if Martha does find Mr. Right, as well as to graciously split with her if she doesn’t, without taking an unnecessary PR hit.

THE PR TAKEAWAY: When it comes to PR, it’s the marriage that should be celebrated, not the courtship. Dating is an uncertain phase;  success is far from certain, whether in love or in business. The big PR push should come when quantifiable results are produced and stand the test of time. Until then, it’s just another concept that, like new love, could go south in a heartbeat.

Filed Under: Advertising and PR, Branding, Celebrity, Marketing and PR, Media Tagged With: , , , , , , ,

JC Penney’s “Secret” Apology

May 7, 2013 by 2 Comments
JC Penneys Secret Apology

The PR Verdict: “B” (Good Show) for JC Penney’s embarrassingly sentimental but effective ad.

How to make up after a row? That’s the question the management of JC Penney had to ask itself following its repositioning of the venerable retail chain. The storied brand was put through some radical changes under new management, and the changes, designed to attract a younger clientele, proved disastrous. Holiday sales in 2012 dropped over 30 percent, and the retail brand lost a third of its customers and over $4 billion in revenue.

JC Penney’s first step to recovery is to apologize. The retailer is kicking off with a commercial called “It’s no secret,” backed with an extensive social media and broadcast program that lets customers past and present know that they got things wrong. “What matters with mistakes is what we learn,” says the commercial’s voice over. “We learned a very simple thing: to listen to you. To hear what you need to make your life more beautiful.” The spot ends asking consumers to “come back.”

The commercial has provoked varied reactions, including some who said they were reduced to tears (really), while naysayers counter that the ad promises nothing and sounds like empty air. But just like part of a couple making up after a row, JC Penney understands that for an apology to count, it needs to be devoid of justifications and imprudent promises. First base is to let the mea culpa stand and be heard so that a new page can be turned. Then, and only then, proceed.

THE PR VERDICT: “B” (Good Show) for JC Penney and its embarrassingly sentimental but effective ad campaign.

THE PR TAKEAWAY: Apologies don’t count when padded with reasons and justifications. This ad hits the right chord and targets the family consumer who was most alienated by highhanded, wanna-be hipster management overhauls. This is a clever first step, modest and deferential while simply asking for a second chance. Hollywood couldn’t have written it better. Now let’s see if this relationship can move on.

To see the JC Penney ad, click here.

 

 

 

 

Filed Under: Advertising and PR, Branding, Highest Graded, Marketing and PR, Media Tagged With: , , , , , , , ,
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