Kimpton Updates Rewards Members
Kimpton Hotels has emailed Inner Circle members to provide an update on the rewards program. Sent by the senior director of guest marketing, the email seems to respond to unanswered questions. With a conversational style, Maggie Lane promises more communication:
We know things have been a bit quiet on our end. There's been a lot of hard work behind the scenes. Our team has also been listening and we know you want more information. We get it.
Her conversational style is also evident in the email closing:
That's all I got for now. I wish you a delightful, eggnog-fueled holiday season and New Year with your loved ones.
The approach is interesting and may be a reaction to the news of Marriott's acquisition of Starwood. Much of that news has been about the great opportunities for Marriott Rewards and Starwood Preferred Guest members. IHG's acquisition of Kimpton was announced in December 2014 and hasn't gotten much press since then.
Discussion Starters:
- Using principles from Chapter 4 in the textbook, analyze Kimpton's audience for this email. Who are Inner Circle members, what do we know about them, and so on?
- Assess the conversational style, particularly the word choice. How do you think the audience might react?
Trump Wants to Ban Muslims
Donald Trump is taking a bold stand against terrorism-or his version of it. In a press release, Trump proposes preventing any Muslims from entering the United States.
DECEMBER 07, 2015 -
DONALD J. TRUMP STATEMENT ON PREVENTING MUSLIM IMMIGRATION
(New York, NY) December 7th, 2015, -- Donald J. Trump is calling for a total and complete shutdown of Muslims entering the United States until our country's representatives can figure out what is going on. According to Pew Research, among others, there is great hatred towards Americans by large segments of the Muslim population. Most recently, a poll from the Center for Security Policy released data showing "25% of those polled agreed that violence against Americans here in the United States is justified as a part of the global jihad" and 51% of those polled, "agreed that Muslims in America should have the choice of being governed according to Shariah." Shariah authorizes such atrocities as murder against non-believers who won't convert, beheadings and more unthinkable acts that pose great harm to Americans, especially women.
Mr. Trump stated, "Without looking at the various polling data, it is obvious to anybody the hatred is beyond comprehension. Where this hatred comes from and why we will have to determine. Until we are able to determine and understand this problem and the dangerous threat it poses, our country cannot be the victims of horrendous attacks by people that believe only in Jihad, and have no sense of reason or respect for human life. If I win the election for President, we are going to Make America Great Again." - Donald J. Trump
A Fox News article quotes Trump: "Look at what FDR did many years ago, and he's one of the most respected presidents," Trump said. "We have people in this country that want to blow up our country - you know it and so do I. They're looking at the jihad. They want a jihad." This seems like a logical flaw: how will preventing Muslims affect people already in this country?
Reactions to Trump's proposal have been mostly negative. An NBC/Wall Street Journal poll found that most people oppose his plan.
Another lens on this issue is the perspective from Muslims on college campuses. An article in The Chronicle describes the experience of Muslim leaders: "It's like holding your breath."
Discussion Starters:
- What are the benefits and drawbacks of Trump's plan?
- Does the data about American's views they justify his proposal? Is the data from credible sources?
- Will the proposal reduce terrorism in the United States? Explain your position.
Latest Hashtag Trouble: Lane Bryant
You never know what you'll get on Twitter with a hashtag campaign. Lane Bryant's CMO Brian Beitler tried to engage customers with #AskLaneBryant, but he got a lot of tough comments. PR Daily captured many of them and complimented some of the company's approach:
To the brand's credit, Beitler addressed several concerns during the hour, and the brand's account tweeted its thanks for the "candidness" from chat participants.
Several comments criticize the plus-size retailer for product, model, and associate choices. Although some tweets were "snarky," as PR Daily calls them, Beitler could have been bolder in tackling some of them.
One of the more challenging tweets referenced a study published in the journal Social Problems. Here are the tweet and article abstract:
Drawing on participant observation at a women's plus-size clothing store, "Real Style," this article draws on the unique experiences of plus-sized women in their roles as workers, managers, and customers, to examine how mainstream beauty standards, body-accepting branding, and customers' diverse feeling rules shape service interactions. Despite branding that promoted prideful appreciation for "Real" bodies, the influence of these body-accepting discourses was constrained by women's internalization of mainstream fat stigma, resulting in an environment characterized by deep ambivalence toward larger body size. This ambivalence allowed hierarchies between women to be reified, rather than dissolved; although plus-sized employees and customers expressed gratitude to have Real Style as a "safe space" to work and shop, workers experienced gender segregation of jobs, and thinner employees were privileged with special tasks. Further, managers and white (but not black or Latina) customers used body-disparaging "fat talk" to elicit workers' emotional labor while confronting thinner workers for defying aesthetic expectations. This research offers a more nuanced understanding of the ties between aesthetic labor and emotional labor, while highlighting some of the factors that prevent stigmatized groups from successfully reclaiming status within consumer contexts.
Discussion Starters:
- Read PR Daily's compilation of tweets. To which do you think the company should have responded?
- How should Beitler have responded to the reference to the journal article.
- Once again, should companies just avoid a branded Twitter hashtag? Discuss the value and the downsides.
"They" Can Be Singular in The Washington Post
It's a sad day for grammarians everywhere. The Washington Post will allow "they" as a singular pronoun when we don't know the person's gender. A memo from Bill Walsh, the paper's style chief explains the decision:
It is usually possible, and preferable, to recast sentences as plural to avoid both the sexist and antiquated universal default to male pronouns and the awkward use of he or she, him or her and the like: All students must complete their homework, not Each student must complete his or her homework.
When such a rewrite is impossible or hopelessly awkward, however, what is known as "the singular they" is permissible: Everyone has their own opinion about the traditional grammar rule. The singular they is also useful in references to people who identify as neither male nor female.
I find Walsh's second example puzzling: why can't we write, "Everyone has an opinion..."? On the other hand, if we're talking just about the case for "everyone," I wouldn't rebel over it. I also understand using the singular they for transgender people including those who choose not to conform to a binary gender.
Of course, this is only an issue because we don't have an adequate gender-neutral pronoun. Unfortunately, none of several proposed options have stuck. The APA Style Guide provides a more reasoned approach to the dilemma.
Here's my favorite tweet on the subject:
Discussion Starters:
- What do you think of The Washington Post's announcement? Is this a big deal or not?
- How do you handle this issue in your own writing?
NRA Responds to Shooting
The National Rifle Association is shifting blame for the shooting in San Bernardino county t0 President Obama and his administration's policies. In a letter in USA Today, the executive director of the NRA's Institute for Legislative Action uses principles of persuasion to focus on the tragedy.
Chris Cox uses strong language, accusing the president of "politicizing" the "horrific crimes." His argument is that our policies have made us less safe, so we need guns to protect ourselves.
California has the strictest gun control in the nation, so Obama's politicization of San Bernardino rings sickeningly hollow.
Just when we think that politics can't sink any lower, President Obama once again proves us wrong by politicizing the tragedy in San Bernardino before the facts were even known. What we do know is that theAmerican people are heartbroken by these horrific crimes - and despite what the president would have us believe - America's law-abiding gun owners are heartbroken by these horrific crimes as well. At the same time, we are sick and tired of this president suggesting the men and women of the National Rifle Association are somehow to blame.
The National Rifle Association is not to blame. Neither is our Second Amendmentfreedom. An act of evil unfolded in California. President Obama used it not as a moment to inform or calm the American people; rather, he exploited it to push his gun control agenda. Policy discussions should be intellectually honest and based on facts, not politics. And the fact remains that California has already adoptedPresident Obama's gun control wish list: "universal" background checks, registration, waiting periods, gun bans, magazine bans and an expansion of prohibited gun categories. But those laws did nothing to prevent this horrific crime from taking place. Nothing.
Here's another fact: the president's failed foreign policy has made us less safe. And his domestic gun control agenda would jeopardize our safety even further. In California, President Obama had what he wanted - the strictest gun control in the country - and it did not prevent this evil act. The plain truth is that the president cannot keep us safe. And his policies would leave us defenseless. That's why our Second Amendment right to defend ourselves must be protected. It's not just a constitutionally guaranteed freedom. It's a natural, God-given, human right.
Unlike the president, regular citizens are not surrounded by armed secret service agents wherever they go. When we find ourselves under attack, no one is there to protect us. That responsibility is ours and ours alone. The American people - including law-abiding gun owners - are scared these days, and for good reason. As a nation, we sit helpless and watch as innocent and defenseless people are slaughtered. President Obama's response is not one of unity, but rather a condescending lecture that we need more laws to restrict us from defending ourselves. Enough is enough with the self-righteous and self-serving demagoguery.
The NRA is calling on the president to stop exploiting tragedies to push his failed political agenda. It's shameful. Given the reality that he's unlikely to listen, however, we will continue to stand and fight for law-abiding gun owners who are both disgusted and heartbroken by these heinous acts - whether committed by madmen, gang members or terrorists. The NRA will neither accept the blame for the acts of murderers, nor apologize for fighting for our right to defend ourselves against them.
Of course, it's not just President Obama who is questioning the NRA's role in mass shootings, which, this year, have resulted in 462 deaths and 1,314 injuries. At the same time, now we know the shooters also had pipe bombs and links to ISIS, so have people blamed the NRA too quickly?
Discussion Starters:
- Assess the NRA's USA Today letter. What examples do you see of pathos, logos, and ethos? Which arguments are strongest and which fall short?
- What's your view: is the NRA to blame for this and other mass shootings? Plan your argument carefully.
Trump Speaks to Republican Jewish Coalition
Donald Trump spoke at the Republican Jewish Coalition in Washington, DC. He started by saying that his daughter is Jewish (she is married to a Jew and converted). He then talked about how his campaign is self funded but he hasn't spent a lot of money on ads and is still in "first place by a lot" in all polls.
Trump made some questionable comments to this audience. An MSNBC article summarizes them well: "at times [Trump] flirted with stereotypes about Jews as wealthy deal-makers":
- "I'm a negotiator, like you folks. Is there anybody that doesn't renegotiate deals in this room?. . . . This room negotiates them perhaps more than any other room I've ever spoken in."
- "You're not going to support me because I don't want your money because, stupidly, you want to give money."
Trump focused much of his speech on Hillary Clinton, how she's unqualified to be president and why she shouldn't be allowed to run.
He was characteristically confident: "I'm gonna win." "My life has been about winning." He also said that now he's dealing in trillions for the first time; he is used to dealing in billions. Trump promised to repeal "Obamacare" and criticized Jeb Bush's low energy.
Discussion Starters:
- Do you find Trump's comments offensive? Why or why not?
- What else do you find notable in Trump's speech and in the Q&A?
- How, if at all, does this speech affect your vote?
Press Conferences Following San Bernardino Shooting
A shooting at the Inland Regional Center in San Bernardino, CA, left 14 people dead and 17 injured. Two suspects have been killed, and their motivation for the attack at the facility for people with developmental disabilities is unclear. A holiday party was taking place in the conference room where the shooting took place.
County police have been holding press conferences, providing as much information as possible. The police chief gave an initial statement:
In this video, so many questions are unanswered that I wonder whether the conference was held too early:
As he has after other recent shootings, President Obama gave a statement:
Discussion Starters:
- Do you agree with my assessment of the police news conference? Is it too soon to offer a Q&A session if so little is known and so few answers are given?
- So far, the National Rifle Association is quiet on social media, although others blame the organization. Should the NRA respond or make a statement at this time?
- Compare President Obama's statement with his news conference following the recent school shooting in Oregon. What differences and similarities do you see?
Talks at the Climate Summit in Paris
With an impressive list of speakers, the United Nations Framework Convention on Climate Change started on Monday in Paris. The goal is for leaders from 195 nations to agree to limit carbon emissions. As expected, leaders, such as President Obama, began their speeches by expressing condolences for lives lost during the recent terrorist attacks in the city.
Reuters selected portions of leaders' talks as "highlights," and this video shows three hours of discussion.
The Telegraph analyzed 10 claims about climate change and comments "on just how far [leaders'] fears are really justified." The claims are about rising temperatures, melting polar ice, and increasing hurricanes.
Discussion Starters:
- Read Reuters' highlights. What distinguishes the leaders' key messages?
- Choose one of the claims identified by The Telegraph. Do you find the commentary convincing? What evidence is provided? What, if anything, is missing from the argument?
Adweek Rounds Up Best Ads of 2015
Adweek has identified some of the best international ads of the past year. Topping the list are phenomenal Swedish skaters performing to the song "The Reindeer Herder's Joik" by Jon Henrik Fjällgren.
A commercial advertising organ donation uses a clever strategy:
Discussion Starters:
- Adweek identifies "fun" as a common theme of these ads. After watching more of them, what else do they have in common?
- What are your favorite commercials from 2015?
Nordstrom Excelling on Social Media
According to Engagement Labs, Retailer Nordstrom is doing a great job on social media based on three performance rankings on specific social networks:
- Engagement: how much interaction the company's posts receive
- Impact: the level of reach to constituencies
- Responsiveness: how quickly the company replies to specific users' comments
Of all the brands Engagement Labs analyzes, Nordstrom is doing the best, according to a write-up by Forbes:
"Upscale fashion retailer, Nordstrom, is a top performer on Facebook FB +0.00% and Twitter TWTR -1.20%. On Facebook, Nordstrom has the highest eValue average score on the list at 93.11. It has enjoyed fan growth of 89,536 within the one-month tracking period and attracted 380.57 likes per 1,000 fans-the highest on the entire list."
Engagement Labs also follows Vloggers and has highlighted YouTube stars PewDiePie, Smosh, Rhett & Link, and others.
Discussion Starters:
- What is your favorite brand, and how would you rate its levels of engagement, impact, and responsiveness on social media? What examples do you see of interaction?
- How, if at all, does a brand's use of social media affect your purchase decisions?
REI Makes Headlines with #OptOutside
Outdoor and sports equipment retailer REI is closing its 143 stores for Black Friday, instead encouraging people to #OptOutside. A CEO message on the company's website says employees will be paid not to work:
REI is closing on Black Friday.
You read that correctly. On November 27, we'll be closing all 143 of our stores and paying our employees to head outside.
Here's why we're doing it.
For 76 years, our co-op has been dedicated to one thing and one thing only: a life outdoors. We believe that being outside makes our lives better. And Black Friday is the perfect time to remind ourselves of this essential truth.
We're a different kind of company-and while the rest of the world is fighting it out in the aisles, we'll be spending our day a little differently. We're choosing to opt outside, and want you to come with us.
Jerry Stritzke, President, CEO
An NBC article questions whether the strategy will pay off. The move responds to criticism of increasing consumerism and from employees who want the day off, and it's a "gesture" against bigger box retailers who couldn't afford to lose the day's sales. Still, the company suffered some backlash with employees on Reddit complaining about low wages, poor benefits, and pressure to sell memberships.
Overall, its seems like a good move. After all, REI is an outdoor company-and the weather in New York at least is uncharacteristically warm for this time of year.
Discussion Starters:
- What's your view of REI's decision? How would the company decide whether the positive publicity is worth the lost sales?
- How could the CEO have handled the Ask Me Anything (AMA) questions on Reddit? Some say he didn't respond to important employee complaints, such as the pressure to sell memberships.
Nestle Addresses Worker Abuse
A non-profit organization commissioned by Nestle has exposed worker abuse in the Thailand seafood industry, which includes fish sold by the company. The report is titled, "Recruitment Practices and Migrant Labor Conditions in Nestlé's Thai Shrimp Supply Chain: An Examination of Forced Labor and other Human Rights Risks Endemic to the Thai Seafood Sector."
Business Insider explains the abuse:
The laborers come from Thailand's much poorer neighbors Myanmar and Cambodia. Brokers illegally charge them fees to get jobs, trapping them into working on fishing vessels and at ports, mills and seafood farms in Thailand to pay back more money than they can ever earn.
"Sometimes, the net is too heavy and workers get pulled into the water and just disappear. When someone dies, he gets thrown into the water," one Burmese worker told the nonprofit organization Verite commissioned by Nestle.
"I have been working on this boat for 10 years. I have no savings. I am barely surviving," said another. "Life is very difficult here."
Nestle has responded by restating its commitment:
"As we've said consistently, forced labor and human rights abuses have no place in our supply chain. Nestle believes that by working with suppliers we can make a positive difference to the sourcing of ingredients."
In an action plan posted on its website, Nestle reports on "pre-requisites achieved in 2014 - 2015" and identifies objectives for 2015 - 2016 summarized in this infographic:
Discussion Starters:
- Assess the infographic against principles in Chapter 10. Which are followed, and how could the graphic be improved?
- Do the same for the Verite report. Consider the format, design, content choices, organization, writing style, and so on.
Chipotle Addresses Spread of E. coli
Chipotle's E. coli trouble is spreading to other parts of the United States. Although the outbreak was thought to be limited to Washington and Oregon, new reports show illnesses in California, Ohio, New York, and Minnesota. For the first time since it became an independent company, Chipotle's same-restaurant sales may decline, and the stock has taken a hit.
On a page on its website under "Food Safety Update," the company explains the situation.
The CDC has informed Chipotle that it identified six additional cases in which initial testing matches the E. coli strain involved in the Washington and Oregon incident. Although one of the individuals has no known link to Chipotle, five individuals did report eating at Chipotle, including two in Turlock, CA, one in the Akron, OH area, one in Amherst, NY, and one in Burnsville, MN.
Investigators have suggested that in incidents like this, it is not unusual to see additional cases after the initial incident as the investigation moves forward. The source of the problem appears to have been contained during a period in late October. 42 of the 43 cases linked to Chipotle reported visiting one of the restaurants in question between October 13 and October 30. One person reported having eaten November 6.
Since this issue began, Chipotle conducted deep cleaning at the restaurants that have been linked to this incident, replaced ingredients in those restaurants, changed food preparation procedures, provided all necessary supply chain data to investigators, and surveyed employees to be sure none had E. coli (note: no Chipotle employees in any states have had E. Coli stemming from this incident). Similar actions are immediately being taken in response to these newly reported cases.
Chipotle is also taking significant steps to be sure all of its food is as safe as possible. Specifically, we are expanding testing of key ingredients, examining all of our food-safety procedures to find any opportunity for improvement, and are working with two renowned food safety scientists to assess all of its food safety programs, from the farms that provide our food to our restaurants.
Connections to this incident are limited to seventeen Chipotle restaurants.
The statement goes on to list the locations and provide a Q&A for concerned customers.
The company's Twitter page is active. Representatives respond personally to tweets, as shown here.
Discussion Starters:
- Analyze the company's statement on its website. What works well, and what could be improved? Particularly consider the last sentence shown above.
- Does this news affect whether you would visit a Chipotle restaurant? What, if anything, can the company do to assure you that the food is safe?
Radisson Blu Responds to the Terror Attacks
A terrorist attack at the Radisson Blu in Mali resulted in 27 deaths, and the company is responding to the news.
Radisson Blu's website features a large message: "Remember our guests and colleagues in Bamako." The message links to a statement and video from Wolfgang Neumann, president and CEO of The Rezidor Hotel Group (on behalf of the Carlson Rezidor Group).
In his video message, Neumann expresses condolences and appreciation. He also explains support services and provides a telephone line for people needing support and information.
On the day of the attack, the Rezidor website showed a statement saying the company was "closely following" the situation. Neumann created another video emphasizing safety and security.
Radisson Blu has been active on Twitter, providing peridic updates and links to statements and videos.
Discussion Starters:
- Assess Neumann's video statements. As always, we have to empathize with his position during this difficult time. Still, if you were his media advisor, what strengths and suggestions would you identify?
- How do you assess company communications so far? What are the Radisson Blu and Rezidor doing well?
False Claims from an Obesity Study?
A Cornell University study concludes, "consumption of fast food, soft drinks, or candy was not positively correlated with measures of BMI," meaning (excluding those very under- and overweight), people consumed these foods at about the same rate. But a Forbes writer criticizes the "false claim" reflected in Cornell's press release (and similarly reported elsewhere): "Candy, soda and fast food are not driving the rising obesity trend in the U.S."
Other headlines, such as, "Is junk food making us fat? Why cutting candy, soda may not be enough," in USA Today have little connection to the findings at all. The study says nothing about restricting certain foods. It merely reports that people of different weights consume similar amounts of these particularly foods.
I also don't think the study distinguished between diet and regular soda. People at the lowest BMIs consumed the most soda.
One of the study's authors, David Just, responded to the Forbes writer's concerns:
"I clarified this with the study's lead author, David Just, a professor of economics at Cornell University, who said his aim was to consider the potential impact of public policies that banned certain foods. 'There's been a lot of diet advice given that narrowly focuses on eliminating soda and fast food and a rash of policies that are targeting these specific foods and promising to address the obesity crisis,' he said. 'I felt these policies were overpromising.'
"He said he did not intend people to leave with the message that sugary sodas and junk food have nothing to do with their weight, or that it's useless to try to lose weight by cutting back on sugar."
An infographic summarizes the study's findings, and Just describes the results in a video.
Discussion Starters:
- How would you explain the Forbes writer's concerns? What are the potential consequences of how the findings are reported?
- What conclusions are safe to draw from the study? How could the results be useful to policymakers and individuals?
More Marriott + Starwood Communications
Marriott and Starwood clearly have coordinated communications to loyalty program members and employees. Three days after the news that Marriott is buying Starwood, Marriott Rewards Members received an email. A similar message was posted on Starwood's homepage for Starwood Preferred Guests (SPG members) on the day of the announcement. At the end of the Marriott message, which you can see here, is a LOT of boilerplate.
Messages to employees are also similar. Starwood sent an email to employees from Sorenson to express his enthusiasm, welcome-and some empathy:
"I know it's strange that we will go from competitors to teammates. I believe strongly that we share similar goals and our partnership will be a natural one.
"You may already know a fair amount about our company, but I want to be sure that you know that the well-being of associates has been and will always be our first priority."
Both emails included a video of Sorenson and Bill Marriott. From what I hear from employees in the United States and Europe, they heard the news before it became public, which of course, is best.
Discussion Starters:
- Why would SPG members receive information three days earlier than Marriott Rewards members?
- One Chinese employee says she didn't receive an email about the news, only the rewards email. How do you think this disconnect happened?
- How do you explain all of the boilerplate at the bottom of the Marriott Rewards email?
Executives' "Email Habits"
Business Insider has identified ways CEOs and other executives manage their email. On average, people send and receive 116 emails per day, but we can expect this group to handle many more.
Here are a few of the lessons learned from executives:
- LinkedIn CEO Jeff Weiner sends less email, believing he receives fewer in return: "After recognizing this dynamic, I decided to conduct an experiment where I wouldn't write an email unless absolutely necessary. End result: Materially fewer emails and a far more navigable inbox. I've tried to stick to the same rule ever since." Weiner is right, according to a 2013 study in London.
- Amazon CEO Jeff Bezos seems to scare his employees when we forwards a customer complaint with only a question mark in his message. According to Businessweek, "When Amazon employees get a Bezos question mark email, they react as though they've discovered a ticking bomb. They've typically got a few hours to solve whatever issue the CEO has flagged and prepare a thorough explanation for how it occurred, a response that will be reviewed by a succession of managers before the answer is presented to Bezos himself."
- Zuckerberg Media Founder and CEO Randi Zuckerberg has two rules: "1. She waits at least 20 minutes after she's woken up before she checks it, and 2. She holds off on sending emails when she knows she's feeling overly emotional."
On the somewhat random list, others don't start with "I," wake up at 3:45 a.m. (or 5:30 a.m.), don't check email right before bed, hire "email ninja" to help, or ask people to specify by when they need a response.
The CEO of Hootsuite sometimes "declares inbox bankruptcy" and deletes everything. He recommends doing this only occasionally and letting people know in a disclaimer. This is the second time I've heard this strategy in the past two weeks, and it scares me. I would never do it. What if I miss a great opportunity or an email from a student in crisis?
Discussion Starters:
- What are your biggest challenges in managing email? Which of these tips may help you?
- What's your view of "inbox bankruptcy"? Who can get away with this and under what circumstances?
Marriott Buys Starwood
Marriott will acquire Starwood to create the largest hotel company in the world with 1.1 million rooms in more than 5,500 hotels. Crain's Chicago Business reported that Hyatt and Starwood were in "advanced discussion" about an acquisition, but Marriott is the ultimate winner.
Marriott's statement included quotations from Arne Sorenson, Marriott's CEO who will lead both organizations; JW Marriott, Marriott chairman of the board; Bruce Duncan, Starwood's chairman of the board; and Adam Aron, Starwood's interim CEO.
Sorenson focused on growth potential:
"The driving force behind this transaction is growth. This is an opportunity to create value by combining the distribution and strengths of Marriott and Starwood, enhancing our competitiveness in a quickly evolving marketplace. This greater scale should offer a wider choice of brands to consumers, improve economics to owners and franchisees, increase unit growth and enhance long-term value to shareholders. Today is the start of an incredible journey for our two companies. We expect to benefit from the best talent from both companies as we position ourselves for the future. I know we'll do great things together as The World's Favorite Travel Company."
Communication was prominent on the website and swift to Starwood Preferred Guests (SPG), members of the loyalty program. Members worry how their points will be affected by the deal. In contrast, general news of the acquisition was hidden under a "News" link at the bottom of the page. This is the same statement that appears on Marriott's website.
Discussion Starters:
- Analyze the companies' statement; it's an unconventional press release. Why would they choose this format? Does the message convince you the acquisition is a good decision? Would you react differently if you were an investor or guest?
- Explain the announcement to SPG members on the Starwood home page. Why is this communication so important?
McDonald's Video: Nutrition Advice or Infomercial?
McDonald's has created a 19-minute video, "540 Meals: Choices Make the Difference," which the company says is an educational video about nutrition. Others call it an infomercial or, as a Fortune writer put it, "a slickly produced McDocumentary." McDonald's encourages showing the film in schools and provides a Teachers Discussion Guide to help.
The star of the film is John Cisna, an Iowa teacher who lost 60 pounds on a McDonald's-only diet. (Remember Super Size Me?) Cisna reminds me of Subway's Jared, which didn't work out too well in the end.
McDonald's is hosting McTeacher's Nights, where teachers, students, and parents serve McDonald's food, and part of the revenue goes to a school fundraising campaign. Since 2013, McDonald's has contributed more than $2.5 million to schools from these nights.
Educators in a group called Corporate Accountability International call the practice "exploitative." In a letter to McDonald's, organizations and individuals write, in part,
"It is wrong to enlist teachers to sell kids on a brand like McDonald's whose core products are burgers, fries, and soda. Marketing junk food to children is a harmful practice. We are in the midst of the largest preventable health crisis in the U.S. -- one that is spreading throughout the world, and that increasingly affects children. If this trend is not reversed, many children will be burdened with diet-related diseases like obesity and Type 2 diabetes, affecting their heath for life."
Discussion Starters:
- What's your view of McDonald's video and the McTeacher's Nights?
- What principles of persuasion does the education group use in its letter to the company? Try to identify examples of pathos, logos, and ethos.
Volkswagen Tries to Win Customers with Gift Cards
Too little, too late? Volkswagen is finally trying to rebuild its image, but the approach may not work. The company is offering U.S. customers two credits for $500: one to be spent at a VW dealership and the other to be spent anywhere. In addition, customers with diesel cars will have free roadside assistance for three years.
The "Goodwill Package" is announced on the VW website.
A Fortune writer doubts the cash will have any impact:
"When it comes to throwing money at a problem, we can learn something important from an experiment that was conducted on 632 eBay users in Germany, who had left negative feedback following a transaction. In the study, published in 2010, half received an apology 'I would like to apologize and ask whether you might withdraw your evaluation.' The other half received a cash rebate (about $5) 'as a goodwill gesture.' The results? When offered cash, 21% removed their critical rating. But when offered an apology (without any cash), 45% removed the critical rating."
Customers are still waiting for a solution, but U.S. CEO Michael Horn says the company isn't ready: "We are working tirelessly to develop an approved remedy for affected vehicles. In the meantime we are providing this goodwill package as a first step towards regaining our customers' trust."
Discussion Starters:
- How effective do you think the customer credit will be in rebuilding VW's image?
- The company is taking a long time to identify a solution for customers. What's your view of the situation? Do you find it understandable, stalling, or something else?