Tuesday, May 4th, 2010

In the wake of the worst oil spill in US history, British Petroleum (BP) has taken a unique and dangerous public relations stance; they are not apologizing. Their website’s emphasis is on the cleanup rather than detailing what and who exactly caused the spill. Rather than a heartfelt apology their website’s lead story is reporting that over 2,500 personnel are involved in the response to the oil spill in the Gulf of Mexico. Their no apology strategy continues with a quote from CEO Tony Hayward who explained, “BP is fully committed to taking all possible steps to contain the spread of the oil spill” but failed to offer an apology. Their position seems to be that it isn’t all BP’s fault. On the Today show, Hayward explained to Meredith Viera that “it wasn’t our fault but we are absolutely responsible for the oil and committed to cleaning it up”. Instead of being held accountable for the accident BP has decided to point the finger at Transocean, the offshore driller that BP has partnered with. This isn’t a very good public relations policy. For one, if you contract with someone like they have with Transocean, you are responsible for their actions. Also, trying to shift the blame and get off on a technicality makes BP look much worse than if they would simply apologize and accept responsibility. BP has had a very public, long running campaign promoting itself as a relatively green company and seeming both unapologetic and unprepared for the catastrophe is turning into a public relations nightmare. Only time will tell but the “we’re not to blame but we will clean up the mess” strategy seems to be ineffective.
Tags: bp, british petroleum, catastrophe, ceo tony hayward, environment, fail, green, gulf of mexico, oil spill, public relations, strategy
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Friday, December 18th, 2009

As smartphones continue to gain popularity and more companies release branded applications to add value and increase brand awareness it is important that they fully research and understand exactly how the app will affect their brand. Blockbuster, in an attempt to stay competitive as Netflix and Redbox devour their market share, decided a new strategy that involves offering new services and products and releasing an innovative iPhone app could increase brand awareness and relevancy. Unfortunately, they did not realize the implications of their actions. The Wall Street Journal reported that their iPhone application would allow customers to check and see if a rental is in stock before going to the store. This sounds like a great idea; it takes advantage of new technology and adds value for the customer by saving them time. However, it seems that Blockbuster has overlooked the fact that the application ultimately gives their customers a reason to not come to their stores. If someone who still uses Blockbuster to rent movies goes into the store looking for a particular movie and if they discover it is not in stock they will typically pick out a different movie because they are already in the store. This situation is ideal because it gives Blockbuster two rental sales, the current rental and then another when the customer comes back in for the movie they originally wanted to watch. Their new strategy involving the new iPhone app will result in fewer sales because the customer will not step foot in the store until it is convenient and the movie they want to watch is available. Also, depending on availability, customers using this app can get tired of waiting for a particular movie to become available and now be more inclined to switch over to Blockbuster’s more convenient competitors. Hopefully their other strategies can help them weather the storm but I predict the new iPhone app will spell disaster for the struggling rental chain. Blockbuster’s current mobile application strategy is a good example of how brands need to a well thought strategy before adopting new technology.
Tags: app, availability, awareness, blockbuster, convenient, dvd, iphone, netflix, redbox, rental, smartphones, strategy, video
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Thursday, December 3rd, 2009

Advertising Age recently posted an interesting case study in their About Digital video series about Vail Resorts and their recent shift this season to social media advertising. The video explains how they are abandoning their traditional marketing strategies and opting for new media solution. Specifically, the long lead times associated with the print advertisements they have always relied on as a primary source for advertising is not as effective because their message can change with the weather and social media is the best medium to deliver their message at the right time. They are also posting videos as the season begins, that they refer to as “ski porn” to get consumers excited about the upcoming season and get people talking and planning their winter adventures. The shift to social media has also taken some strain off their advertising budget that primarily is spent before the season even starts. I think this is a great strategy; it allows the resort to connect with customers on a more intimate level and it saves them money that will hopefully alleviate the rising costs of lift tickets. Other resorts have resorted (terrible pun) to social media in their marketing strategies. For example, Mt. Hood Meadows has a twitter account where they can announce specials, weather alerts, new websites, and other items of interest. I know they get cell reception at Meadows so I would love to see an app that reports on snow conditions, trail reports, and the size of lift lines so riders can get more runs out of the day. In October Mountain High Resort announced that they would be the first resort to launch an app that gives weather conditions and ticket information and I would expect to see other resorts following suit. As more and more businesses find new ways to use social media for its advertising potential it is very exciting to see where this new medium will take us.
Tags: advertisements, Branding, digital video, iphone, mountain high resort, mt hood, mt hood meadows, ski resorts, smartphone, social media, strategy, updates, vail
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