Belvedere Vodka Apologizes for Ad

Belvedere Vodka apologized for an ad that many believe mocks sexual assault, but the apology also drew criticism.

As one of many who reacted negatively to the ad, @KateHarding tweeted about her feelings:

"The @belvederevodka rape joke ad disappeared just as I was about to share it on FB. Hope someone got a screenshot. Appalling."

Belvedere initially tweeted this short apology:

After more criticism, the company released a more formal statement:

"My name is Charles Gibb and I am the President of Belvedere Vodka. I would like to personally apologize for the offensive post that recently appeared on our Facebook page.

"It should never have happened. I am currently investigating the matter to determine how this happened and to be sure it never does so again. The content is contrary to our values and we deeply regret this lapse.

"As an expression of our regret over this matter we have made a donation to RAINN (America's largest anti-sexual violence organization. www.rainn.org)"

RAINN posted a note on its Facebook page:

"We got a call from Belvedere Vodka's president, who was profusely apologetic about an offensive Facebook post yesterday. He stressed how much it was contrary to his values and what Belvedere stands for, and that he feels awful about it. He offered to make a generous donation to RAINN to support our work to help victims of sexual violence and educate the public. Nice to see a company that not only undoes its mistake but looks for a way to do good afterwards."

Discussion Starters:

• Compare the two apologies. What are the main differences?
• What are components of a effective apology? Do you find the second apology effective? Why or why not?

Three Dead Horses, One Cancelled Show

HBO's "Luck" has run out. After three horses died, the HBO Show, starring Dustin Hoffman and Nick Nolte, has been cancelled. 

In a statement, HBO explained the decision:

"Safety is always of paramount concern. We maintained the highest safety standards throughout production, higher in fact than any protocols existing in horseracing anywhere with many fewer incidents than occur in racing or than befall horses normally in barns at night or pastures. While we maintained the highest safety standards possible, accidents unfortunately happen, and it is impossible to guarantee they won't in the future. Accordingly, we have reached this difficult decision."

People for the Ethical Treatment of Animals (PETA) disagrees with this assessment, claiming that the organization suggested ways to protect the horses even before filming began. PETA also criticizes the use of former race horses, who were out of practice and out of shape and should never have been raced twice in one day. 

In a letter to the Los Angeles district attorney, PETA encourages an investigation and outlines circumstances, as it sees them, around the first two deaths.

Discussion Starters:

• Did HBO make the right decision to cancel "Luck" because of the horses' deaths?
• How do you assess HBO's statement? Is this the best approach?
• In PETA's letter to the LA district attorney, which do you believe are the strongest and weakest arguments?

Resigning Employee Says Goldman Is "Just About Making Money"

In a stinging op-ed piece in The New York Times, a former Goldman Sachs manager calls the company's culture "toxic and destructive" and says the company has lost its focus on clients. Greg Smith, former head of Goldman's U.S. equity derivatives business in Europe, the Middle East, and Africa, resigned from the firm as of today-and went out with a bang.

In some ways, the letter confirms the negative image of Goldman as too focused on profits:

"What are three quick ways to become a leader? a) Execute on the firm's 'axes,' which is Goldman-speak for persuading your clients to invest in the stocks or other products that we are trying to get rid of because they are not seen as having a lot of potential profit. b) 'Hunt Elephants.' In English: get your clients - some of whom are sophisticated, and some of whom aren't - to trade whatever will bring the biggest profit to Goldman. Call me old-fashioned, but I don't like selling my clients a product that is wrong for them. c) Find yourself sitting in a seat where your job is to trade any illiquid, opaque product with a three-letter acronym."

Smith also tallies recent image-damaging transgressions, with helpful links from The New York Times to related stories:

"It makes me ill how callously people talk about ripping their clients off. Over the last 12 months I have seen five different managing directors refer to their own clients as "muppets," sometimes over internal e-mail. Even after the S.E.C., Fabulous Fab, Abacus, God's work, Carl Levin, Vampire Squids? No humility? I mean, come on. Integrity? It is eroding. I don't know of any illegal behavior, but will people push the envelope and pitch lucrative and complicated products to clients even if they are not the simplest investments or the ones most directly aligned with the client's goals? Absolutely. Every day, in fact."

Goldman was quick to respond to the letter:

"We disagree with the views expressed, which we don't think reflect the way we run our business. In our view, we will only be successful if our clients are successful. This fundamental truth lies at the heart of how we conduct ourselves."

CEO Lloyd Blankfein and COO Gary Cohn also responded in an open letter to employees: 

"In a company of our size, it is not shocking that some people could feel disgruntled.  But that does not and should not represent our firm of more than 30,000 people. Everyone is entitled to his or her opinion.  But, it is unfortunate that an individual opinion about Goldman Sachs is amplified in a newspaper and speaks louder than the regular, detailed and intensive feedback you have provided the firm and independent, public surveys of workplace environments.

"While I expect you find the words you read today foreign from your own day-to-day experiences, we wanted to remind you what we, as a firm – individually and collectively – think about Goldman Sachs and our client-driven culture."

For another perspective, Jim Cramer, of  MSNBC, says the letter is "devastating" and "shocking." (Forward to 1:10.)

Update: Goldman Sachs lost $2.15 billion in market value following Smith's letter; the stock dropped 3.4%, the third largest decline in the company's history, according to Bloomberg.

Discussion Starters:

• Read the entire op-ed letter by Greg Smith. What do you consider to be his strongest and weakest arguments?
  
• Read Goldman Sachs' response. Same question: What do you consider to be the company's strongest and weakest arguments?
• How, if at all, do you think the letter will affect Goldman's image?
• Do you think that Goldman Sachs will change its business practices as a result of this letter?

American Airlines Response About Flight Attendant

American Airlines passengers were alarmed when a flight attendant started screaming about 9/11 and a potential plane crash. The flight attendant was removed from the plane, and the Dallas-to-Chicago flight was delayed but eventually took off without any further trouble.

American Airlines issued this statement in response:

"This morning Flight 2332 had left the gate at DFW bound for Chicago, when an incident occurred involving some of the cabin crew. The aircraft returned to the gate, where it was met by Department of Public Safety officers. Two flight attendants were taken to local hospitals for treatment. We continue to investigate the details and circumstances and will have no further comment at this time. We will ensure that the affected flight attendants receive proper care, and we commend our other crew members for their assistance in quickly getting the aircraft back to the gate so that customers could be re-accommodated. Our customers were not in danger at any time. The cabin crew was replaced. The flight departed for Chicago at 9:46 a.m., and is scheduled to land around noon. We apologize for any inconvenience to our customers, and we appreciate their patience and understanding."

Discussion Starters:

• How do you assess American Airlines' response? What works well, and what could the company say differently?
• If you were American Airlines' head of customer relations, what, if anything, would you do for or communicate to the passengers of this flight?

Huggies Revises Dad Ad

In what Advertising Age called a "poop-storm," Huggies ran a campaign called a "Dad Test." Described in the promotional video, Huggies promises "to prove Huggies diapers and wipes can withstand anything...put them to the toughest test imaginable: dads, alone with their babies in one house for five days, while we gave their moms some well-deserved time off."

Reactions to the campaign were mixed, with many feeling that the ad insults dads, 32% of whom are primary caregivers.

Huggies maker Kimberly-Clark responded to the controversy:

"We have heard the feedback from dads concerning our current 'real life' dad commercials. We recognize that we need to do a better job communicating the campaign's overall message. The singular goal with this campaign was to demonstrate the performance of our products in real-life situations because we know real life is what matters most to moms and dads. A fact of life is that dads care for their kids just as much as moms do and in some cases are the only caregivers.

"We intended to break out of stereotypes by showing that dads have an opinion on product performance just as much as moms do. That said, the Huggies brand is learning and listening, and, because of the responses we have received, are making changes to ensure that the true spirit of the campaign comes through in the strongest way possible.

"We have already replaced our initial TV ad with a new one that more clearly communicates our true intent and are in the process of revising the wording of the Huggies brand online communications."

Huggies has changed its approach and now encourages people to nominate great dads for a chance to win Huggies products.

Discussion Starters:

• Do you find the original Huggies ad offensive, funny, or something else? Do you understand the backlash, or do you think dads are over-reacting? 
• How do you assess Kimberly-Clark's response? What are the most and least convincing arguments?
• How successful is the revised approach? Will this satisfy those who were offended by the original ad?

Will This Student's Video Get Her into Yale?

Jackie Milestone really wants to go to Yale, but she was deferred admission. To try to influence the admissions committee, she created a video, "White and Blue for You."

It's a catchy tune, but Jackie might take some lessons in persuasive communication.

Discussion Starters:

• How does Jackie balance emotional appeal, logical arguments, and credibility in her video? 
• What suggestions do you have for Jackie to improve her video and possibly sway the admissions committee?
• If you were deciding Jackie's fate, would the video influence you? Why or why not?

Claire's Response to Jewelry Plagiarism Charges

Tatty Devine's website shows several suspiciously close comparisons between its jewelry designs and those of Claire's, a 3000-store retailer of jewelry and accessories. Tatty Devine's jewelry is high-end; the "dinosaur" necklace shown on the left side is handmade from bones and costs £132, while Claire's version is rubber and costs £4.

While the lawsuit is under way, social media activity rages on, and Claire's isn't handling it too well. The company has been criticized for deleted and ignoring Facebook comments, such as those below:

Claire's also took two days before responding to the plagiarism charge, which had already received support on Tatty Devine's blog. Finally, Claire's posted this statement on its Facebook page:

"Claire's Stores, Inc. is a responsible company that employs designers, product developers and buyers, and works with many suppliers to provide innovative collections that bring customers all the latest fashion trends. As such, we take any allegations of wrong doing seriously. We are looking into the matters raised."

One blogger described the statement this way: "The response is a stiff corporate apology that appears to dismiss the concerns expressed by their consumers."

PR expert Scott Douglas suggests this as a better approach:

"The pictures show remarkable similarities, and clearly that's upset a lot of people. We understand those reactions. That's why we are determined to get to the bottom of what happened and launched an immediate investigation. We promise to keep you updated."

I wonder how Claire's lawyers would like that response.

Discussion Starters:

• Compare Claire's response and proposed response. What are the benefits-and the risks-of each?
• What principles should Claire's follow when addressing social media comments?

Microsoft Attacks Google Docs

Microsoft has created a campaign attacking Google Docs. In a video that has reached over 800,000 viewers, Microsoft mocks the "Googlighting Stranger"-set to the theme of the old TV show, "Moonlighting." The premise is, "What happens when the world's largest advertising business tries to sell productivity software on the side?"

Previously the brunt of jokes, such as Apple's highly successful "I'm a Mac; I'm a PC" campaign, Microsoft is now on the offensive. The video criticizes Google Docs for having fewer features and shifting capabilities, implying that programs can change and leave businesses in the lurch.

In a blog post, Microsoft's Tom Rizzo elaborates on the company's qualifications compared to Google's:

• Expertise
• Trust
• Flexibility
• Privacy
• Enabling Quality Work

Discussion Starters:

• How do you assess the video? Would it convince business people to stick with Microsoft products rather than switch to Google Docs?
• In Microsoft's blog post, what do you consider to be most and least convincing arguments?

Sugarland Flubs Response to Victims

Country music group Sugarland is facing lawsuits following a stage collapse at a concert last summer. At the Indiana State Fair, seven people were killed and 45 were injured. 

In the lawsuits, victims and their families criticize the band and the fair for not postponing the show because of bad weather conditions and not evacuating more quickly. Attorneys for Sugarland responded harshly to the allegations: "Some or all of the plaintiffs' claimed injuries resulted from their own fault." Critics call the legal approach "cowardly." Read the entire legal statement. 

The statement is a dramatic contrast to what Jennifer Nettles, lead singer, said two days after the incident:

"...moved by the grief of those families who lost loved ones. Moved by the pain of those who were injured and the fear of their families. Moved by the great heroism as I watched so many brave Indianapolis fans actually run toward the stage to try and help lift and rescue those injured. Moved by the quickness and organization of the emergency workers who set up the triage and tended to the injured."

In response to criticism of the legal statement, Gail Gellman, Sugarland's manager, posted this on the group's website:

"Sadly when a tragedy occurs, people want to point fingers and try to sensationalize the disaster. The single most important thing to Sugarland, are their fans. Their support and love over the past 9 years has been unmatched. For anyone to think otherwise is completely devastating to them."

Also on the website are comments from many supportive fans, who compliment Sugarland and their music.

Although Sugarland had been tweeting almost daily, their last tweet was on February 15-now a week ago. Fans might like to hear directly from the duo.

Discussion Starters:

• What is the attorney's perspective in this situation? Do you agree with this position?
• What should the Sugarland duo do at this point? What, if anything, should they tweet or write on their website? What are the potential consequences, and is it worth it?

McDonald's Bitten by Pit Bull Ad

McDonald's has apologized for an ad that offended pit bull dog owners. To promote Chicken McBites, the radio ad said, "Trying a brand-new menu item at McDonald's isn't risky. You know what's risky? Petting a stray pit bull or shaving your head just to see how it looks..."  

Soon after the ad aired, pit bull lovers defended their pets and accused McDonald's of unfairly stereotyping. A Facebook page, Pit Bulls Against McDonald's, has been liked by almost 12,000 people. The group has started a petition and requests that McDonald's do the following:

"The undersigned are requesting that McDonald's use it's [sic] worldwide reach to make a difference for all the Pit Bulls that have been victims of a bad reputation that they neither earned, nor deserve. We want McDonald's, a family company that many of us have loved and grown up with, to take a stand for family values - because those of us that love our Pit Bulls consider them family. We'd like McDonald's to right this wrong by airing a commercial that shows the American Pit Bull Terrier in a positive light. If you need any actors, the shelters and rescues are chock of full of lovable characters that would love to ham it up for the camera."

Although the ad ran only in Kansas City, the company did apologize:

"The ad was insensitive in its mention of pit bulls. We apologize. As soon as we learned of it, we tracked the source and had the local markets pull the ad immediately. We'll do a better job next time. It's never our intent to offend anyone with how we communicate news about McDonald's."

No word yet on whether McDonald's will meet the petition-signers' demands.

Discussion Starters:

• Do you find the ad offensive? Can you see how pit bull lovers might take issue with the ad?
• Could McDonald's have done anything to avoid this situation? Should they have -- or could they have -- prevented this reaction?

RIM's #BeBold: Another Hijacked Hashtag

As McDonald's learned last week, Twitter hashtags may not get the results that companies want. BlackBerry maker Research in Motion started the hashtag #BeBold, but unfavorable tweets started soon after:

"Be Bold" is part of RIM's marketing campaign involving the Bold Team, a group of cartoon characters, which has also been criticized as "cheesy":

"Each character comes with a name (like Trudy Foreal) and cheesy biography that seems to cater to the younger demographic.

"If there was ever any question RIM was running out of ideas in the business and professional sectors, this cartoon collective is your definitive answer."

Although companies are trying new approaches, they may have to give up the hashtag: it's too easy for people to use the tag for their own fun.

Discussion Starters:

• What would you advise companies who want to use a hashtag on Twitter? Could a different approach work, or is it too risky?
• What's your reaction to RIM's Bold Team? Do you find this to be an effective marketing strategy for young people and, if so, how young?

NYSEG Explains Security Breach to Customers

Customers of NYSEG (New York State Electric & Gas) received a letter saying that records of their Social Security number, birth date, and perhaps bank account numbers have been breached. What the company calls "unauthorized access to one of [its] customer information systems," has resulted in credit card and other information being released by a contract employee.

NYSEG sent a letter to affected customers, encouraging them to monitor their accounts for unauthorized activity and offering a free credit report and a credit monitoring service for a year. NYSEG also posted a Q&A for concerned customers.

Clayton Ellis, a spokesperson for NYSEG, denied malicious intent or misuse so far:

"We need to emphasize too that there's absolutely no evidence through our investigation so far that any of our customer data has actually been misused or that there was any malicious intent on this individual's part."

Discussion Starters:

• Assess NYSEG's letter to customers. If you were a customer, what would you find reassuring? What could be improved?
• Also assess the Q&A. Same: what is reassuring, and what could be improved in this communication?

Super Bowl Ad Previews on Social Media

In case you can't wait until Sunday to see the Super Bowl ads, here are a few teasers. At an average of $3.5 million for a 30-second spot, companies need to get their money's worth, so we're seeing some pre-game, viral promotion.

According to Reuters, the Super Bowl is one of the few TV shows that still garner large audiences: about 100 million people are expected to watch the game on February 5. And yet companies will supplement views by promoting their ads on social media sites. Coca-Cola's commercial, for example, features computer-generated polar bears who will have their own Facebook page and Twitter hashtag (#GameDayPolarBears). Not to be outdone, Pepsi is encouraging fans to watch Melanie Amaro perform "Respect" and then download a video using the Shazam app.

As always, the Super Bowl ads, like this one from Priceline, target their audience.

Discussion Starters:

• How successful do you think these companies' social media strategy will be? Will it achieve their objective of expanding viewers and air time?
• Watch a few of the Super Bowl ad previews. What techniques do they use to target game watchers?

Celebrity, Royal Caribbean, Norwegian Reassure Customers

Following the Costa Concordia disaster, major cruise lines are emailing customers to reassure them of ship safety. The companies are trying to stave off what may be a large decline in cruising, according to analysts. The prediction is based on graphic videos and images circulating on social media sites and the unfortunate timing of the incident: during prime cruise-booking season and three months before the 100-year anniversary of the Titanic. To commemorate the sinking of the Titanic, which lost over 1500 passengers, the media will likely draw comparisons to Costa Concordia, keeping the tragedy alive in consumers' minds.

Celebrity, Royal Caribbean, and Norwegian have emailed customers over the past few days, and we see two main themes emerge from these communications: 

• Safety standards, procedures, and records
• Qualifications of the captains

Download Celebrity Cruise email

Download Royal Caribbean email

Download Norwegian Cruise email

In its email to customers, Royal Caribbean links to this video explaining the company's safety culture:

Discussion Starters:

• What differences do you notice among the three emails, particularly whether they refer specifically to Costa Concordia?
• Which email works best and why? 
• How do you assess the Royal Caribbean safety video? Does it reassure you, as a potential passenger?

Survivors Find Costa Cruises' 30% Discount Offer "Insulting"

Costa Cruises and its parent, Carnival, have tried to make amends to survivors of the Costa Concordia ship that capsized. A spokesperson for Costa explains:

"The company is trying to do everything they can for those passengers directly affected.

"The company is not only going to refund everybody, but they will offer a 30 per cent discount on future cruises if they want to stay loyal to the company."

The offer is one way for the company to try to repair its tarnished image-and perhaps to stave off lawsuits. But will passengers want to get on another boat?

Image source.

Discussion Starters:

• How effective do you think Costa's promotion will be for future cruise goers?
• What are the potential ethical consequences of Costa's offer?
• What might be a better strategy for the company to rebuild its image?
  

Timothy's Coffee Apologizes for Facebook Promotion

Offering free coffee is a great way to increase Facebook "likes" but only if you can keep up with demand. Timothy's Coffee offered free 24-pack boxes of single-serving coffee, but ran out of supply for the number of people who requested the $17 CAD gift. The company underestimated how viral the promotion would become, and it took too long to sort out how to solve the problem.

In a video, a company spokesperson explained that they "received an overwhelming amount [sic] of entries" and "because of a technical glitch, confirmations were sent beyond the quantities available." 

The company apologized on a Facebook wall post:

Although 136 people "liked" this post, 291 commented, and many were negative, like this one: "fans being left in the dark from January 4th to Jany 13th, without A SINGLE comment regardless of the raging posts on the wall."

Responding to the disappointed fans, the company then offered a coupon for free coffee for those who didn't receive the promotional gift.

Discussion Starters: 

• How could Timothy's Coffee have avoided the failed social media promotion?
• How do you assess the spokesperson's video? What is effective and ineffective about the apology?
• In the post above, you see "[sic]" within the company's quote. What does this mean, and why is it there?

Auschwitz to Sell Fitness?

The Circuit Factory, a gym in Dubai, used an Auschwitz photo to sell membership.

No surprise, the company heard a strong reaction to the campaign on sites such as Facebook and Twitter.

The Circuit Factory responded by firing its "creative guy," pledging a donation to an undetermined charity, and apologizing:

The Anti-Defamation League issued this statement about the incident:

"We are increasingly troubled by both the ignorance and mindset of a generation that appears to be so distant from a basic understanding of the Holocaust that it seems acceptable to use this horrific tragedy as a gimmick to bring attention to promoting losing weight."

Despite the public reaction, the campaign may have worked, as Circuit Factory founder Phil Parkinson told Arabian Business News:

"A huge number people have researched or Googled… our YouTube channel has shot up, our [Facebook] group page has got an hundred extra members in minutes and we have had about five times as many enquiries as before," he said. "It has got to the point I am nervous that I can't cater for demand."

Discussion Starters:

• What's your reaction to the ad? Do you find it funny, offensive, or something else?
• What do you make of the increased interest in the gym? Did the campaign pay off, after all? 
• How can a company avoid this type of campaign, which may offend people?

Blackstone Buys blackstonesucks.com

In a preemptive social media move, private equity firm Blackstone has purchased several disparaging websites:

• blackstonesucks.com
• blackstonegroupsucks.com
• theblackstonegroupsucks.com
• schwarzmansucks.com
• stephenschwarzmansucks.com
• stevenschwarzmansucks.com
• steveschwarzmansucks.com

Blackstone follows the lead of Bank of America, which secured hundreds of domains last month, including BrianMoynihanBlows.com.

In September, Etsy, the online market for handmade art, filed suit against the owners of EtsySucks.com, .net, .org, .biz, and .info. Etsy won the case. But what about Freedom of Speech? The difference seems to be in how the domains are used; if they're used to post about a company, then fine, but these Etsy domains were empty, parked websites, indicating that the sites weren't "registered in good faith," according to Domain Name Wire.

Maybe I should register bizcominthenewssucks.com, just in case.

Discussion Starters:

• You can't blame these companies for trying to stem the tide of negative online comments, but will these domain protections work?
• What avenues would you most likely use to complain about a company's product or service? 
• Research the "sucks" domain for a company that interests you. Is it taken and populated with negative comments? What, if anything, can the company do about it?

Campaign Against Child Obesity Called "Harsh"

How would you feel if your child or brother or sister were profiled in one of these anti-obesity ads? 

The Children's Healthcare of Atlanta has taken emotional appeal to a new level to tackle the problem of childhood obesity in Georgia. Focusing on illness and social isolation, five videos show children who are obese and in distress. With this approach, the organization is trying to encourage families to take the issue seriously.

Critics say the organization's Strong4Life campaign has gone too far by stigmatizing the profiled children. Also, the ads give little guidance to how parents can help their overweight children.

Others say the ads attract attention, as they should, and that they are part of a five-year campaign that has just started. An executive at Children's Healthcare defends the campaign: "The whole goal of this is to get the discussion going," she said. "I love that it sparks dialogue, and a great dialogue has two sides." The organization also posted several comments on Facebook:

Discussion Starters:

• What is your reaction to these ads? Do you find them offensive, effective, or something else?
• How could the next phase of the campaign address the critics' concerns? What tactics would you recommend to the writers of the ads?

FedEx Responds to Viral Video of Tossed PC Monitor

How embarrassing for FedEx! One of its delivery people was caught on a surveillance camera throwing a computer monitor over a fence. The monitor broke, and the homeowner posted the video for all to see.

The company responded quickly by posting a video and blog entry called "Absolutely, Positively Unacceptable."

In the video, Matthew Thornton, an SVP, apologizes:

"On behalf of all of us at FedEx, please accept my apology. I am upset and embarrassed for our customer's poor experience. This goes directly against all FedEx values. It's just not who we are."

As of this writing, FedEx apparently hasn't decided on any disciplinary action for the employee. In the video, Thornton says, "The employee is no longer working with customers." Does that mean he's in central packaging now?

Discussion Starters:

• What is your reaction to the video apology? What messages are most and least effective? What works well and not so well about Thornton's delivery style?
• Read the company's blog post. What's different between the post and the video? Which works better and why?
• Overall, how well do you believe FedEx handled the situation?