Archive for January 31, 2011

Stink Outside the Bun: The Taco Bell PR Saga

For fast food chain Wendy’s in the 1980s, all it took was an old woman yelling “Where’s the beef?!?” to both skyrocket the popularity of burgers and etch a classic catchphrase into advertising history. Meanwhile, for Mexican chain Taco Bell, a similar question has been nothing as of late but a source of headache: What, exactly, is the beef?

According to Beasley Allen, the Alabaman law firm that filed class action against the Bell one week ago, a scientific analysis of the restaurant’s seasoned meat yielded concerning results: just 35% of the ground beef is actual animal meat, while the remaining 65% is an amalgam of man-made flavors and coloring agents — including maltodextrin, autolyzed yeast extract and silicon dioxide — that are as hard to pronounce as they might be to stomach. In its lawsuit, Beasley Allen asks not for monetary compensation but for Taco Bell to take responsibility for false advertising. For the chain, this could mean either a mandatory recipe overhaul or a future without mentioning the word “beef” in its ads; instead, a euphemism like “taco filling” would have to be used in its place.

This isn’t the first time, of course, that a fast food joint has been caught blushing in the media. In 1993, Jack in the Box faced violent criticism for selling burgers infected with E. Coli, which lead to four deaths and cost the chain $160 million in legal punishment. Just last year, meanwhile, an advisory board in San Francisco voted to ban toys from McDonald’s Happy Meals if the contained food and drink totaled more than 600 calories — a rule that goes into effect in December of 2011. But in the face of its own controversy, Taco Bell has employed a bold and relatively newfangled PR move: responding immediately with attitude and humor.

Within days of the court filing, Taco Bell bought ad space in several major newspapers — the L.A. Times, the Wall Street Journal and the New York Times among them — and ran a full-page retort titled “Thank you for suing us…Here’s the truth about our seasoned beef.” The ad, styled like a traditional press release, calls the claims against Taco Bell “completely false” and reassures consumers that the restaurant’s meat is “88% Beef and 12% Secret Recipe…[added] to give the meat flavor and quality.” On Friday, meanwhile, Taco Bell president Greg Creed appeared on Good Morning America to defend his tacos after posting an explanatory video on YouTube that has already logged 90,000 views in four days (see below). Asked by George Stephanopoulos of ABC News whether his “Thanks for suing us” campaign was like “waving a red flag in front of a bull,” Creed responded with a key strategy of modern marketing: “I think when your reputation is sullied, you have to be swift and you have to be decisive.”
[youtube=http://www.youtube.com/watch?v=ah05FEWcJWM]
Indeed, Greg Creed’s quick and witty response may very well create a golden opportunity out of a tough situation, and a chance to reconnect with consumers and reinforce their faith in Taco Bell’s food. Some are arguing otherwise, but, provided that Taco Bell’s claims — that its meat is 100% USDA-approved and 88% beef — are valid, the chain might very well emerge as a winner both legally and publicly in this fight. Psychologically, consumers want to see companies as human and sympathetic, not as major corporations selling sludge and calling it pure snow; Creed’s response not only gives a face to his company — even tempered with an endearing Aussie accent — but also uses humor and personality versus the technical and stiff language of his accusers. What remains to be seen is simple: whether there’s bull in Taco Bell’s meat or bull in Creed’s statement.

Speaker Series: Carrie Stojack

Each Friday, our program hosts an industry pro with insight into career opportunities, marketplace trends and new ideas. In order to teach us essential real-world lessons and to increase our comfort with professional interaction, this guest lecturer engages with us for two full hours of afternoon class time. On January 21, 2011, our speaker series featured Ms. Carrie Stojack, a Managing Partner at Hall and Partners, a market research firm located in Los Angeles.

Ms. Stojack’s presentation, our first look into the world of market research, explored the ins and outs of the industry in which she’s risen to the top through her work at several companies. She explained how market researchers and creative marketers work together to help clients design a promotional initiative — and how the work of market research firms, which use qualitative and quantitative methods to gauge the potential efficacy of a given campaign, grants them a sort of veto power when it comes to approving ads. To give us a basic idea of marketing, Ms. Stojack presented a planning cycle concept composed of four elements: whether a company understands its target market; who represents the competition in that market; where an opportunity for targeting exists; and how a company can take advantage of such an opportunity.

In addition, Ms. Stojack taught us that companies need to be aware of their consumers and need to engage with them. Because consumer communication changes fast and utilizes different ways to make decisions — which Ms. Stojack illustrated with the example of her daughter choosing between backpacks using a cell phone and Facebook friends — companies need to rely on new methods to get close to customers. Participating in new-age communication, such as sharing information and giving opinions to consumers, is absolutely necessary, and companies needs to be open to what consumers want and need. At the same time, market researchers have also changed their means of measuring advertising over time.

Ms. Stojack is also a newly-minted member of NewMR, a professional association for market researchers that hosts an annual online conference to help shape the future of the field. She’s also an accomplished runner who has participated in Long Beach’s half marathon. Continue reading for her social media profile.
» Read more..

Good Boss/Bad Boss

Even if you have a bad boss — a harsh reality for many who count themselves as members of the workforce — perhaps it’s reassuring to know that it could be worse. eBossWatch, an online advocacy group for the victims of bad management, recently published its 2010 list of America’s worst bosses, mostly a comprehensive list of the year’s major harassment lawsuits and the top-level execs who ended up as defendants. Finding themselves on the list are former U.S. representative Eric Massa (#4); action movie star Steven Seagal (#46); and, taking the lamentable top spot, Chief Eddie Burns of the Dallas Fire Department — who cost his city nearly $1.5 million in legal fees stemming from three separate sex suits in the same year.

The misconduct of a boss, however, is often much less perceptible — and much less publicly punishable — than in the cases above. But these behaviors and attitudes trickle down to the front line employees who are the face of an organization, the very employees responsible for carrying out the goals and values of their employer — so it’s extremely important for bosses to maintain a level of respect and trust. With the help of the Human Resources Professional Association, who recently polled 793 Canadian HR reps about management and its effect on the workplace, below is a list of the characteristics of both bad and good bosses.

CHARACTERISTICS OF A BAD BOSS

1. Inappropriate Comments/Bullying. The country of Turkey, which recently passed a new workplace harassment law, has already experienced surging numbers of lawsuits related to bullying. As bosses too often forget, the office is neither a frat nor a locker room.
2. Favoritism. Even the President gets called out for this practice: with his weekend appointment of Jeffrey Immelt — former CEO of General Electric — as head of the Jobs and Competitiveness Council, Obama faced a backlash of conservative criticism because Immelt oversaw NBC, a television station historically favorable to the Democratic Party. In the office, playing favorites alienates certain employees and puts undue pressure on the shoulders of others.
3. Unwillingness to Follow Due Process. If your boss doesn’t notify the company when he’ll be leaving early, why should you?
4. Treating Employees with Disrespect. For this trait, simply see below.
[youtube=http://www.youtube.com/watch?v=K5d5jxJ5vbM&feature=related]

CHARACTERISTICS OF A GOOD BOSS

1. Giving Employees A Voice. Certain consultants encourage 360 degree feedback — a system that recommends constant job assessment from boss to employee and vice versa — as a way to establish genuine relationships in the face of hierarchy.
2. Treating Employees Like Volunteers. Using this mindset, bosses will see their associates as motivated, caring individuals who work for the benefit of the company.
3. Patience. The short tempers of bosses translate into short tempers of employees. Patience on the part of management, meanwhile, will be reflected company-wide.
4. Transparency. Employees who are privy to all of the office’s goings-on — decisions made, deals signed, etc. — are more likely to trust their company and invest deeply in it.
5. High Involvement Management. This term encapsulates all of the actions above. A boss who is highly involved with his employees, no matter their place in the company, will in turn inspire high levels of motivation and job satisfaction.

Like Consumer Like Son

It’s common knowledge that all children learn basic skills from Mom and Dad, and that they make parents proud when they walk, talk and tie their shoes for the first time. Less known, however, is the genetic predisposition for product worship — or the process of learning how to shop and consume from parents and elders. You might have a specific brand of laundry detergent, for example, that your mom used when you were a kid; perhaps you can’t imagine using anything else. In psychology, acquiring skills for consumer purchase behavior is called consumer socialization — and it’s proof that consumerism runs in the family (see below).
[youtube=http://www.youtube.com/watch?v=upXKk8-2kxI&feature=channel]
This process is important for marketers because they can essentially acquire two markets by selling one product. To stick with the example from above, a company that produces laundry detergent would be wise to target moms who are looking to clean tough stains from their kids’ clothes after a long day of playing in the dirt. These moms buy the brand consistently and they become loyal customers; their kids, usually tagging along while Mom does the household shopping, become accustomed to the packaging and learn which product to pick up and put in the shopping cart. Kids, now familiar with the brand, will likely choose it when they have their own choice of laundry detergent. There are now two loyal customers, all from targeting moms effectively.

Meanwhile, an important aspect to consider is that moms are now using social media more than ever, which should affect marketers and how they reach out to potential customers. Along with CafeMom, an online community for mothers, the ad agency Razorfish released a study called “Digital Mom” in 2009 that compiled data from 1,500 survey responses from moms aged 18 to 64 with at least one child under 18 in the household. The study profiled different types of mothers and found that moms under 35 use social networks, SMS and mobile browsing while moms 45 and up use websites, online consumer reviews and podcasts. The key factor is that many moms are engaging in new media to learn about products and to make decisions about what to buy for themselves and for their children. Marketers would be wise to capitalize on this knowledge and adapt their campaigns to suit the needs of moms who could potentially bring them those two generations of customers.

Job Listings, Week of 1/24/2011

Part of the MHB program is an internship, as students choose among the myriad L.A.-based job and internship listings in the following fields: HR, market research, marketing, advertising, PR, social media and management. Here are options from this week:

Human Resources Intern (apply here)
H&M Communications (Los Angeles, CA)
“H&M Communications is an award-winning, results-driven full-service multicultural boutique marketing agency in Los Angeles, specializing in entertainment, B2B, and lifestyle marketing. We are seeking qualified interns in our LA offices. Responsibilities include: assisting the HR department; maintaining files keeping them organized and up to date; posting job opportunities; light accounting; and brainstorming. All candidates must be bilingual (read and write in Spanish and English) with prior experience and/or interest in pursuing a career in Human Resources, Marketing or Communications.”

Research & Analytics Intern (apply here)
Fanscape (Los Angeles, CA)
“Fanscape is the leading social media marketing agency with more than a decade of experience reaching and activating consumers to foster targeted word-of-mouth marketing through online and emerging media. Fanscape’s online influencer marketing experts have in-depth understanding of niche audiences and consumer behaviors across the Web, providing highly measurable, earned media strategies for major corporations and leading entertainment, technology and travel companies, including: M&Ms, MTV, GameStop, Hotels.com, TV Guide Network, Kia Motors, Lay’s and more. We seek interns for our Research and Analytics Department who will assist with developing client proposals, monitoring marketing campaigns, analyzing social media content, competitive analysis and basic market research. The applicant should be knowledgeable about social media marketing, related technology and industry trends.”

Human Resources Intern (apply here)
WorkInSports.com (West Los Angeles, CA)
“Our company is seeking an Intern to gain experience in Human Resources. The primary focus of this position is to work on hands-on projects. The internship is a part-time (15-20 hours a week), non-paid position and reports to the HR Manager. This is an ideal position for the individual who wants exposure in the sports and entertainment industry. The ideal candidate will be someone who is pursuing one or more of the following degrees: Human Resources Management, Business Administration, Psychology, Organizational Development, or Communications. You must have excellent written and verbal communication skills, be proficient in MS Office and be willing and able to maintain confidentiality.”