Ronn Torossian Update

Volkswagen is apologizing after a social media ad was called “racist” by some consumers. In the ad, a giant white hand initially shoves a dark-skinned man away from a Volkswagen car. When the man tries to hold his ground, the giant hand flicks him away from the car.

That might have been enough for some to cry foul, but there’s more. According to reports in the Associated Press and other media outlets, the name of the café into which the man is “flicked” translates as “Little Colonist,” and, when the name of the vehicle comes on screen, the initially jumbled letters reportedly, and briefly, spelled out a racial slur.

It has become one of the most iconic performances in sports history: The Flu Game. During the 1997 NBA Finals against the Utah Jazz, Chicago Bulls megastar Michael Jordan scored 38 points, helping his team take game five in the series 90-88. A tight margin in what would be a hard-fought series. That game helped cement Jordan’s already incredible legacy, as people are still using it as the bar against which all ‘will to win’ is measured.

For decades, basketball fans believed a flu-stricken Jordan led his team to victory through the sheer force of his indomitable will and incredible talent. But, an episode of the popular ESPN docu-series, The Last Dance, tells a different version of the story. At least, in the episode, Jordan does.

Announcing layoffs can be challenging for many different reasons. Fundamentally, no one likes giving or receiving bad news. Beyond that, though, there are more specific reasons why this kind of announcement requires careful consideration of both the messaging and the audiences involved.

The recent announcement made by United Airlines of a coming layoff offers a real-world example of this challenge. In a memo sent out to approximately 11,500 workers and shared with the media, United Airlines head of human resources, Kate Gebo, announced that the airline would reduce hours and staffing in the coming months, layoffs that could also include the company’s administrative team.

The announcement included the caveat that these moves would be made after funding from the CARES Act is no longer available to keep the company afloat. This factor somewhat complicates this communication, because it is unclear if there will or will not be any further help from the government.

What is clearer in the message is that the company expects air travel passenger demand to continue to be drastically reduced, and that United expects it will take some time, perhaps years, for demand to return to pre-COVID levels. That, company leadership says, means growing smaller for the long-term.

These are not the only details in the announcement. Additional communication was specifically focused on non-union employees who were told they would be required to take 20 unpaid days off and that some would be required to transition to a four-day work week.

When asked about the reasons behind these changes, a company spokesperson said they had no choice given the economic circumstances. “Travel demand is essentially zero for the foreseeable future… Even with federal assistance that covers a portion of our payroll expense, we anticipate spending billions more than we take in… For the next several months. That is not sustainable.”

Many company employees are currently on voluntary leave, and United has presented some offers for voluntary contract buyouts. Meanwhile, the company is facing a lawsuit from some union workers, who want to block the reduction in work hours. The suit alleges the choices being forced on employees by the company violates the CARES Act.

Through all of this, the company has continued regular direct communication with employees, offering a series of company memos explaining how things were and what company executives had decided to do about it. While the news is difficult to hear, the communication is clear, allowing workers at every level to make decisions with the facts in front of them.

As the powers that be ponder how to reopen Broadway, a ballerina not far away is busy making sure the show goes on, even if it means broadcasting from homes across the world. Working with Joseph Phillips, Misty Copeland is the innovator behind “Swans for Relief,” an organization working to raise funds for dancers all across the world who are out of work due to COVID-19 related shutdowns.

Copeland told the Associated Press the effort is a way to “bring the dance world together” in order to make a bigger impact as a group. “I started reaching out to my friends, and everyone I was reaching out to was like ‘Yes, I’m in!’”

This agreement led to a joint production for a virtual audience and led to a partnership with the Entertainment Industry Foundation to “help ballet dancers maintain living expenses.”

To show the strength of what might be possible, Copeland brought together 32 colleagues from across the globe, with dancers representing at least nine different countries performing the “Dying Swan.”

Copeland said one of her secondary goals with this effort was to begin a conversation about how the ballet world interacts with its fans. “We needed (to) reset, step back, and reassess how we do things… It’s about time we learn how to exist in this virtual world for the ballet community… figuring out new ways of bringing theater to people… reaching more people.”

For Copeland, one of the first steps in creating this conversation is showing how it can be done. She hopes to develop a better and greater idea from that seed, with help from other performers and producers.

This conversation about effective communication and new ways to connect with an audience runs parallel to a debate currently in process where producers and performers connected with Broadway are deciding when and how to reopen theaters. The parallel narratives create urgency for both groups to generate ideas and put them in front of an audience.

While there may be some friction and divergence between these ideas, that doesn’t necessarily mean the two efforts are in opposition with each other or that the narratives from one group necessarily contradict those from the other group. Effective communication around these efforts and to these audiences, for which there is significant crossover, is a vital component of how success in these endeavors will be developed and measured.

Copeland has an active and enthusiastic audience now. It will be interesting to watch how she promotes her vision going forward.

Last week the world of sports rejoiced at the news that, someday soon, Major League Baseball might re-start. But it didn’t take much time for the other side of the argument to surface. From a sports PR perspective, the weeks and months prior to the announcement that MLB Spring Training was canceled, and that the season would be postponed, were dominated by news of the sign stealing scandal. The Houston Astros and Boston Red Sox were called out, and several players and coaches were specifically named as willing participants, in what some commentators in the sports media called one of the worst professional sports scandals in decades.

Now, just as fans were getting accustomed to the idea of baseball making a comeback, MLB Commissioner Rob Manfred announced the penalties the league is leveling against the Red Sox. Saying that the team’s infractions were less severe than those of the Astros, the penalties he announced were also less severe. Boston lost a second-round pick in the next amateur draft, and former manager Alex Cora was suspended through the 2020 postseason. In addition, Red Sox replace system operator JT Watkins was suspended without pay through this year’s postseason for “violating the prohibition on in-game use of video to revise sign sequences…”

Speaking directly about his decisions, Manfred said: “Unlike the Astros conduct, in which players communicated to the batter from the dugout area in real time the precise pitch about to be thrown, Watkins’ conduct by its very nature was far more limited in scope and impact…”

Watkins, who came up through the Red Sox system, playing until 2015, initially denied the allegations against him. Manfed disagreed, calling Watkins a “key participant” in the infractions. Watkins has said nothing else since Manfred made his announcement. Personally, Watkins will have some ground to make up to win back his reputation, however, the team as a whole came through fairly unscathed.

One of the biggest questions when the news of how pervasive the sign stealing scandal went came out, was which teams would be tainted by the news. Would the Red Sox see their championship run attached to an asterisk with the label “cheater” associated with it? At present, that doesn’t look like it will be the case, at least for most fans. They understand the relatively limited nature of this infraction, especially compared to what the Astros had been accused of.

However, “less ground to make up” is not “no ground to make up,” and that means the Red Sox will have to answer some questions, win back some doubters, and put up with connections to the cheating scandal for some time yet.

Even without a marquee live program like Game of Thrones to bank on, HBO is gambling that customers are ready to officially cut the cord and pay them directly to stream their content. The premium cable network recently announced a release date for its HBO Max streaming service on May 27. Given that, at $14.99 a month, the price tag is more expensive than competitors like Disney+, Hulu, and Netflix, it’s clear the brand believes it still has enough to entice viewers.

So, what can streamers expect from HBO’s new service? Early press reports offer a varied lineup of WarnerMedia brands including Friends, Looney Tunes, Sesame Street, as well as new “Max Original” series for both adults and kids.

Some viewers are asking if that’s all. WarnerMedia says “no.” In fact, the company recently told the press AT&T, which it owns, is planning to invest about $2 billion in programming and promotions for HBO Max over the next two years. WarnerMedia Chairman Robert Greenblatt, told the press: “Our number one goal is having extraordinary content for everyone in the family, and the HBO Max programming mix we are so excited to unveil on May 27 will bear this out…”

With the coronavirus forcing millions to stay at home, streaming demand is way up, which means this may be a great time to get into the market. But finding market space will be a challenge. Netflix stock is through the roof, and Disney+ plus is seeing a major surge in subscribers. HBO clearly believes they can compete with these streaming titans head to head. Greenblatt said: “The all-star teams behind every aspect of HBO Max will deliver a platform and a robust slate of content that is varied, of the highest quality, and second to none…”

That’s a strong, positive message that, ultimately, will be left up to the streaming consumer. The big question right now, is what will HBO use to entice people to give the service a try? Will they give them a trial period for a free or reduced price, or are they banking on big-name programs to get people to switch over?

At this point, the jury is still out on that one. The company has about a month to bring out the big guns and show consumers the “varied high-quality” content on offer for nearly fifteen bucks a month. There’s no doubt people are willing to pay for streaming content, as long as it’s high quality, but it will need to be as good or better than what’s already out there.

One factor HBO is banking on is exclusivity. The company has already said some programming, even classic sitcoms, will stream exclusively on HBO Max, even those that have previously been available on other platforms. That could be a big win for the company, if viewers find a show they care enough about. So, how will they approach this PR challenge? Time will tell, and the clock is ticking.

According to American author and academic Alexis De Veaux, “Survival is a four-letter word.” But to Dan Seavers, content marketing manager at TeleWalker, “data” is another. Seavers and others like him believe data will delineate marketing’s future. How CMOs analyze and blend data with their ideas and creativeness will define their brand’s future success.

Data and Dating

In some ways, gathering data is somewhat like the initial stages of dating. Where one or both parties seek out more information to determine if the other is a potential love interest. Getting to know more about him or her is essential. This same kind of courtship is true in gathering data to successfully move a consumer relationship with the brand forward.

Evaluation

In preparing to leverage data, the first step is to assess and analyze the brand’s current situation and sources of data. Some sources include social media, CRM, sales, customer service, online, broadcast and print mentions, online reviews, analytics of websites, marketing KPIs and consumer analyses.

As discussed in earlier articles, departments in many companies remain siloed. A joint survey by HubSpot and TeleWalker recently reported that 47% of brands surveyed still remained siloed. Future success demands that all departments collaborate and share data.

Audit

Conduct an audit of existing data to understand how customers are relating to the brand. Is there enough information to enable the company to identify customer awareness of the brand to craft tailored buying experiences for them? If not, create a plan to capture that data. Conducting SWOT and PEST (political, economic, social and technological) analyses are also helpful.

Templates

Two templates are important in reaching consumers. The first is a personal template that recognizes consumer interests and touch points. What does the brand’s ultimate consumer look like? What are their goals? This information is invaluable in personalizing future communications.

The second is a journey map. This not only tracks how the brand is delivering satisfaction to consumers, but also helps identify missing content that can increase return of investment and sales. Not having this data likely means a brand being out of tune with consumer demographics and other consumer psychological attributes. And like a GPS, establishing a journey map will inform the brand where the consumer is in relation to their goals and journey with the brand.

Analysis

With the available data gathered, analyze and re-analyze what’s available and draft a strategic plan that leads to action. The HubSpot/TeleWalker survey also found that respondents overlooked 8% of data they gathered, meaning that decisions were being made on just 20% of available information.

Strategic Plan

The plan should have goals that are specific, measurable, attainable, relevant and time-based.  Within it should be action plans with timelines to keep everyone involved accountable. Some metrics to watch include using social data gathered to better understand and employ consumer behavioral insights, measuring and monitoring changes in the brand’s conversion rates, and logging the length of time consumers view band videos instead of the number of views.

Reporting

Reports should be made monthly to the marketing group, collaborating departments, and senior staff and also include analysis, insights and other suggestions.

The COVID-19 pandemic has introduced us to an unlikely media sensation. Olive Veronesi, a 93-year-old Pennsylvania resident charmed social media when she ran out of beer and took matters into her own hands. Stuck in her home due to social distancing, and hoping to offer a bit of a smile to friends online, Veronesi posted a photo of herself in the window of her home, looking bereft and holding a Coors Light can as well as a sign that read: “I need more beer!”

Shared countless times, the image – and Olive – became a social media viral hit. Thousands identified with what it feels like to be stuck inside, running out of things that we love. Social media users empathized, laughed, and spread the image far and wide. A local media station said many people reached out to Veronesi offering to bring her more beer. She says she appreciated the sentiment and hoped they got a smile from her post.

Eventually, someone at Molson Coors saw the photo and read the message. Then, a few days later, a refrigerated delivery truck showed up outside Veronesi’s home, dropping off 150 cans of Coors Light. Speaking to USA Today, Molson Coors confirmed the gift came from them, offering this message to their new fan: “When we saw Olive’s message, we knew we had to jump at the chance to not only connect with someone who brought a smile to our faces during this pandemic, but also gave us a special opportunity to say thanks for being a Coors Light fan…”

Cue another viral story. The images of a stack of beer cases, along with a smiling Veronesi hit social media like a wave of sunshine, with people spreading the fun story. Now… imagine what might have happened if the PR people at Coors had been asleep at the wheel. Sure, they could have allowed one of the many local well-wishers to fulfill Veronesi’s request, but what a missed opportunity.

By “jumping at the chance” to fulfill her wish, the company earned many more times the value of media coverage simply by being willing to take advantage of an opportunity. Sure, they can’t afford to do this for everybody, but smart digital PR means knowing when and how to tap into social media’s PR bullhorn to help amplify a message.

By preparing ahead of time to be nimble enough to take advantage of opportunities when they come, the PR team at Molson Coors bought massive consumer goodwill for the cost of a few cases of beer. An easy trade any day of the week.