Monthly Archives: July 2014

July 29, 2014

A Major PR Clean Up … In Every Aisle

For most of us, making that weekly run to the grocery store is uneventful. We choose fresh produce, pick up some milk, go aisle by aisle never really thinking the path each item has taken to get here, or what happens behind the scenes to keep the system running.

For shoppers in Massachusetts, Maine and New Hampshire who frequent Market Basket stores, however, the curtain has indeed been drawn back, revealing an increasingly ugly – and incredibly costly – family drama. One of the oldest family-owned businesses in the country, generating an estimated $4.6 billion annually, Market Basket has become ripe with controversy and the fall out is having an incredible ripple effect.

The Backstory

Owned by the Demoulas family, the 71-store chain of Market Basket grocery stores began one hundred years ago as a single shop in Lowell, Massachusetts. After its founder, Aurthur Demoulas, retired in 1954 and sold the business to two of his sons, Telemachus and George, the company expanded quickly. When George died in 1971, Telemachus shocked George’s heirs by gradually taking control of his nieces’ and nephews’ shares in the company. Thus began a family feud which lead to lawsuits being filed in the 1990’s and a never-ending struggle for George’s heirs to claim the fifty percent ownership of the company they feel is rightly theirs.

For the last thirty years, one of the founder’s grandson’s, Arthur T. Demoulas – of the Telemachus side of the feud – has run the business. Employees of the company see Arthur T. as fair and company-focused, encouraging a close-knit culture and support for workers in every part of the business.

The Spark

In 2013, one relative who had previously fed the stand-off by supporting Arthur T. changed her stance, shifting her support behind Arthur S. – George’s heir and arch rival of his cousin, Arthur T. (Getting all of this?) The move necessitated a vote by the company’s board of directors, who chose to remove Arthur T., putting Arthur S. and the heirs of George Demoulas in full control of the company.

The Fall Out

The ousting of Arthur T. set off a chain reaction unlike any other. After three decades leading the company, he had developed a loyalty among his employees, thousands of whom have turned up at rallies in support of their former boss. “Bring Back Arthur T.” social media campaigns have been launched, and media coverage of the uproar has been near constant.

Several employees have been fired for their actions in support of Arthur T., including those who have worked thirty or more years with the company. The refusal of some employees who are still at work to do their jobs has lead to a near shutdown of operations, resulting in undelivered product and bare shelves in many store locations. Shoppers, either out of loyalty or frustration, have taken their business to competing stores.

The Clean Up

It remains to be seen how the drama will play out. Arthur T. currently has a bid on the table to buy the company outright from his cousin, and the board of directors is giving it consideration. Other potential suitors have apparently stepped up as well, giving the board more to consider.

Meanwhile, stores are losing millions of dollars in lost sales, while rally organizers continue to encourage protestors to stay the course. The company’s new chief executives are offering to welcome back associates who are refusing to work, while the board is striking a more stern tone in statements which call the employee actions negative, accusing them of contradicting culture by not putting the needs of Market Basket customers first.

The next few weeks should be interesting, that’s for sure. From a PR perspective, all involved have some serious damage control ahead of them, regardless of the outcome. Who is the good guy here? Who will prevail? Are the employees showing loyalty or hurting their own customers?

We’ll be watching closely along with everyone else…stay tuned. In the meantime, check out our post on why it’s important to create a PR strategy so you can hopefully steer clear of a messy situation, or at least be better prepared to stay in-control when a situation arises.

We’re here to help you. The experts here at Kovak-Likly can work with you to build a plan to help you avoid or mitigate potential damage that can come to your brand. To get started, give us a call at 203.762.8833 or visit www.klcpr.com.

– BML

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July 17, 2014

Shifting Gears: When An Old Dog Brings a New Trick to Market

Whether it gets your heart racing in anticipation or your eyes rolling in annoyance, the sound is unmistakable. The throaty rumble of a Harley-Davidson is one of the many attributes its admirers love, setting it apart from the buzz-like hum of its foreign competitors. Enthusiasts are a die hard breed, pumping millions into bikes, parts, and gear every year. With such incredible history and brand loyalty, why change the game?

But that’s exactly what Harley-Davidson has done by announcing plans to produce the company’s first ever electric motorcycle through Project LiveWire. They unveiled handmade demonstration models at an event in New York; demos are currently being held around the country to gather rider feedback before a refined version is brought to market sometime in the next several years.

Aside from the starkly different hum-like engine sound, the new prototype is said to provide better handling and quicker acceleration – 0 to 60 in four seconds. The downside? The same obstacles currently faced by electric car manufacturers, namely the need to recharge after about 130 miles.

So how does an American classic go about switching things up so drastically? With a strategic and carefully planned out PR plan.

Invite Interaction

By unveiling a prototype, then soliciting feedback and input from Harley enthusiasts around the country, Harley-Davidson has shown the level to which they value their riders. These are people who know bikes and know Harley, and their opinions matter. By being given the chance to have a say in the new bike’s design, current Harley riders will be part of the process, solidifying the company-customer relationship.

Continue to Service Loyal Customers

Harley-Davidson has made it clear that the introduction of an electric model doesn’t indicate a complete switch in the company’s philosophy. With over 100 years of history under their belt, and annual sales topping a quarter of a million bikes, why would it? By using tag lines like “You don’t know where the line is – until you cross it,” Harley-Davidson is announcing new innovation to an audience who loves a thrill.

Get It Right

The project launched in June; but the electric model itself won’t come to market for several years. For a company with a history like Harley-Davidson, it is vital to wait until they’ve reached near perfection in order to maintain confidence in the brand, and that is exactly what they are doing. In the process, they’ve garnered quite a bit of attention from the industry and consumer sectors, who will no doubt watch the project’s progress closely. When the eventual unveiling hits, all eyes will be on Harley-Davidson.

When bringing a new product or service to market, it is crucial to balance history and consumer confidence with interaction and a sense of collaboration. The right combination will pique interest while maintaining trust, with positive results on both sides of the table.

If you are weighing a shift in your market position or the debut of something new, we at Kovak-Likly can help you develop the PR messaging and action plan that is just right. Let’s talk. Give us a call at 203.762.8833 or visit www.klcpr.com.

– BML

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July 7, 2014

Big Score in the Social Media World

fifaWhether you were following the World Cup minute-by-minute or only knew it was happening from the whooping and hollering of your neighbors, there was no getting around the top sporting event last week. The most vocal fans out there? Facebook fans, it would seem.

The social media company announced last week that the World Cup was the largest event ever – sports or otherwise – in their history, generating more than one billion interactions on the site. The likes, comments, and posts came from 220 million Facebook fans, representing 17% of their total user base.

Participation came in many forms, including posts from soccer fans around the globe and from many of the players themselves. Looked at from the big picture, the experience demonstrates what social media can create – enthusiastic and sustained synergy between a product (in this case an event) and its ambassadors (fans).

Before social media, a large-scale event like the World Cup would be watched on television, a one way interaction. High five-ing after goals and commiserating over disappointments would be left to those sharing a living room or a sports bar. Many small ripples, no overlap.

By enabling fans around the world to interact with both the event and each other through social media, however, that ripple has no bounds. Even those with very little interest in soccer (or fútbol) were drawn into the action last week, curiosity sparked by endless posts and photos populating their Facebook feeds.  Some of the most popular, most shared contributions, in fact, were those from the star players themselves. A photo posted by Brazil’s “Neymar” with his teammate Hulk, for example, drew almost 2.5 million likes.

Your business can cause a ripple, too, if social media is engaged correctly. Meaning, in a way that both promotes the brand, invites interaction, and provides compelling content. By keeping those three elements in play, the conversation knows no end.

Promote the Brand

Obviously this is the goal. But it’s important to go about it in a mindful way. One-way communication is for traditional media, best left to print and broadcast. First, it’s critical to know why your brand should be important to your target audience. What are their hot buttons? For example, the right angle to promote might be the product itself, or what it represents, or what causes the business supports.

Dove is a perfect example of this concept. They are selling soap, yes. But via video campaigns shared on social media, their brand is about positive body image in women. Would you share a post about how great their soap is? Probably not. But a lesson in helping women feel better about themselves? You bet.

Invite Interaction

It’s what social media is all about. Everyone is on the guest list; the playing field is leveled when your target customers feel like their opinions matter and that their feedback is truly being heard. In a case like the World Cup, fans were able to post in direct response to their favorite players. With consumer goods and services, the celebrity factor may not be there, but the feeling of inclusion is just as powerful.

Provide Compelling Content

Soccer fans wanted minute-by-minute updates. Non-fans wanted just enough to speak knowledgeably at the water cooler. And let’s face it, some fans (mainly female, just guessing) were most interested in photos of the athletes. In any case, there was something for everyone. This is achievable with just about any brand. While one contingent from your target audience may be most interested in your actual product, others may feel more drawn to your overall message. By keeping content fresh and compelling, you can serve all with what influences each the most.

Social media is the most flexible of all PR channels. To find out how you can best utilize this incredible tool, let’s have a conversation. Give us a call at 203.762.8833 or visit www.klcpr.com.

– BML

 

 

 

 

 

 

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July 3, 2014

Staying Ahead of the Game: The Importance of Proactive Communications

Last week, a car crashed into a tree on a road not far from my own. A neighbor, who had just come from the direction of the accident, reported the news.  “What happened?” I asked. “Not sure,” she said. “But the air bag deployed; it looked bad.”

Unintentionally, I was already formulating theories in my head. It was just past noon; surely the driver hadn’t been drinking? Maybe they were texting; it seems everyone is distracted one way or another these days. Was it an adult? A teen?

Days later, the photo of the clearly totaled SUV was in the local paper. Again, not many details on the accident other than the driver’s name, age and town. No cause yet determined. With a shortage of facts, I continued to fill in the blanks on my own. An adult male, middle of the day, tells me speed was a factor. Probably some sort of device causing a distraction as well.

Did I have a right to form these theories? I don’t know this man one bit. He could have swerved to avoid a deer, or been experiencing chest pains. Who am I to sum him up with no solid information?

We’re Only Human

Like it or not, such is human nature. When lacking the immediate information we so crave, we tend to fill in the blanks ourselves, often to negative ends. Without a detailed police report, I’ve proclaimed this driver a distracted speeder – without a shred of evidence to support it.

The same exists in the world of business communications. A public so used to immediately disseminated information – right or wrong – exhibits very little patience when not fed quickly enough. If your company’s first words to them are reactionary and incomplete, you’ve already lost control of the message.

Be Known to Them Before You Need Them

How can your company avoid such a misinformation feeding frenzy? Through proactive communications. By maintaining a steady stream of messaging to your target customers on a regular basis, you become a known quantity. Your public consistently receives information which helps them understand who you are, what you do and how you do it.

This familiarity is invaluable when a sensitive public relations situation arises. The groundwork  you have taken the time to lay means you won’t be forced to start from square one – introduction – when trying to manage potentially damaging information on its way to your public.

Spin Free Zone

It is also key to keep proactive communications positive in an effort to develop trust. If you have paid attention to the concerns and preferences of your target customer, and have developed your messaging strategy appropriately, your public will feel a connection with your company which is regularly reinforced.

Again, when faced with a tricky public relations scenario, this means your customers will pause before they believe whatever information hits them first. The need to “spin” furiously is eliminated, because your public is less apt to jump on a negative message bandwagon if they feel they know enough about you to doubt it first.

A Relationship to Build On

Once familiarity, consistency and trust are in place, you are in a much stronger position to hold on to your customer base through even the stormiest corporate communications storms. In this sense, public relations is very much like interpersonal relations. When you truly feel you know someone, you trust first, weigh information carefully, and doubt almost never. Does that sound like a connection you’d like to forge with your target customers?

If so, we’d love to help. At Kovak-Likly, we make it our job to help you define your audience, refine your message, and formulate a public relations plan which build that level of trust layer by layer. To find out how we can work together, give us a call at 203.762.8833 or visit www.klcpr.com.

– BML

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