Funny SNL Parody of a CVS Advertisement

If you are CVS, you probably don't mind this SNL ad parody.   It has generated a ton of free publicity for the firm.  Some companies would get upset at comedians poking fun at them.  Thankfully, CVS understood that it was all in good fun, and that it was actually a positive thing for the firm.  In GoLocalProv, CVS Spokesperson Erin Pensa commented, "We did see it and feel that parody is a form of flattery! And we encourage our shoppers to check out the truly fun and unexpected Valentine's Day gifts that we are offering this year."  Now that's the way to respond to a bit of comic relief.  More firms should take a cue from CVS and not take themselves too seriously. 

The Controversy Sweet Spot in Marketing & Public Relations

Wharton Professor Jonah Berger has conducted some fascinating research on the role of controversy in marketing and public relations.  Berger and his co-author, Zoey Chen, discovered that increasing the level of controversy can increase the volume of online conversation about a company or brand.  However, the relationship is not linear.  A moderate level of controversy increases conversation.  Increasing the controversy even further, though, starts to dampen the level of online conversation.  

In one study, they examined 200 articles posted on a particular online site, and they asked independent evaluators to rank them in terms of level of controversy.  Then they counted the number of online comments posted by readers.  They found that higher levels of controversy increased the number of online comments up to a moderate level of controversy (4.6 on a 7.0 scale).  Beyond 4.6, however, they found that high controversy articles tended to elicit a lower number of online comments.   In a series of experimental studies, Berger and Chen confirm this same curvilinear relationship. 

Berger notes that high controversy diminishes online conversation because people sometimes feel uncomfortable chiming in on a highly explosive topic.  Berger says, "“At the core, the key [question] is … how will talking about an issue affect how people see me?”  

Berger argues that the findings do not suggest that firms should avoid controversy.  However, they should consider the "sweet spot" for their firm.   That sweet spot will differ among firms.  In some cases, controversy quickly creates a great deal of discomfort.  Thus, the controversy doesn't create the online buzz that they seek.  People instead get quiet, for fear of how others will perceive them.  For other companies, it takes quite a bit to reach that level of discomfort where online conversation, buzz, and word-of-mouth actually becomes suppressed.  

Dove Real Beauty Sketches

This Dove "Real Beauty" online ad has created quite a stir.  You can read about the response to this campaign here.  Dove certainly seems to have struck a chord with its customers.  The fact that some people have criticized the ad doesn't seem to concerning, as most Dove customers seem to be responding positively.  The attention that it has received seems to endorse the view: there is no such thing as bad publicity.   Nevertheless, there's a big question remaining:  Will this attention turn into additional revenue for Dove?  Can the engagement with customers translate into sales in the supermarket?  

Carnival Cruise Ship: Public Relations Mess

We have all watched the amazing story unfold on that Carnival cruise ship over the past few days.  Overflowing toilets, irate customers, and an explosion of criticism via social media... Carnival executives have their hands full with this incident.  Many people have been offering suggestions regarding the near term public relations strategy that Carnival should employ.   I would like to offer one point that is a bit more long term in nature.  Carnival has to conduct a highly transparent after-action review.  I would recommend bringing in reputable outside experts to help conduct a review of safety and operational procedures.  Moreover, Carnival needs a clear communication plan associated with that after-action review process.  How will the various stakeholders be kept informed of the process and the findings?   How will potential customers learn about the corrective actions that result from this lessons learned exercise?   Having a transparent and legitimate/credible after-action review process will go a long way toward rebuilding the company's reputation.   Yes, they can do some things in the short term to manage the public relations crisis.  However, salvaging the brand in the long run requires a clear demonstration that the firm has done everything possible to insure that this type of incident does not happen again. 

Amazon's Public Relations Problem

Amazon caused quite a stir this week with a new promotion.   They introduced a new "Price Check" smartphone app for consumers.  Individuals could visit a brick and mortar store, check the item's price on Amazon, and then receive a 5% discount (maximum $5 savings) if they purchase that particular item from Amazon.  Now, smartphone apps that enable consumers to check prices elsewhere have existed for quite some time.   Yet, this promotion by Amazon went one step further. It not only enabled price checking, but actually gave a discount to the consumer if they chose Amazon over the brick-and-mortar retailer in which they were shopping at the moment.   That extra step caused a backlash.  Small business owners and advocacy groups expressed outrage at the promotion almost immediately.  Politicians became upset as well.  Maine Senator Olympia Snowe issued a press release in response to the promotion:

"Amazon's promotion - paying consumers to visit small businesses and leave empty-handed - is an attack on Main Street businesses that employ workers in our communities. Small businesses are fighting everyday to compete with giant retailers, such as Amazon, and incentivizing consumers to spy on local shops is a bridge too far...   We should remember that our local restaurants, bookshops, and hardware stores are the economic engines in our communities.  I urge Amazon to cancel its planned promotion, and look for ways to partner with Main Street, not promote anti-competitive behavior that could shutter the doors of America's small businesses." 

What do we make of this situation?  At the end of the day, price checking via smartphones will not be stopped.   It has already begun to transform the way people shop, particularly for pricey electronics.  The prevalence of such price checking will only increase in the future.  Small businesses will not be able to put an end to that phenomenon.  On the other hand, Amazon may have underestimated the extent to which the discount would create a public relations mess.  While the firm states that they were focused mainly on competing with large retail chains, they ended up becoming portrayed as the enemy of small business.  I'm sure that they don't want to be seen in this fashion.  Moreover, the timing doesn't serve them well at all, given that they already face a growing controversy over the sales tax issue.   Given the anti-big business mood of many people at the moment, I'm surprised that Amazon didn't think through the way that this move might feed that sentiment.  Every large firm needs to consider how they might get caught up in that national mood these days.

In the video below, we hear the other side of the story.    Evan Newmark, a Wall Street Journal writer and former Goldman Sachs executive, defends Amazon and criticizes Senator Snowe.