Friday, March 18, 2011

The Tylenol Crisis

I ended my last post with the cliche, "honesty is always the best policy."  This colloquialism has some merit in public relations, however.  In my last post I gave an instance of unethical behavior creating problems.  To reinforce the idea of ethical action rewarding a company, I would like to explain how ethical action in a crisis situation has helped a company.  This is also a very interesting story that occurred in the midst of a crisis.

In 1982 several people died in the Chicago area after consuming Tylenol capsules.  The problem was not that the product was tainted by the manufacturer, but that the Tylenol bottles had been tampered with.  Cyanide was place in Tylenol bottles.  Obviously, something had to be done.  Johnson and Johnson couldn't very well sell a product that could kill you.  The market share of Tylenol plummeted from the top spot during this time.  Johnson and Johnson could have left Tylenol on the shelves and quickly phased out the capsules, however, the corporation went above and beyond to ensure the wellbeing of its public.

Every bottle of Tylenol was recalled (an estimated loss of $100 million).  Tylenol bottles were then equipped with tamper evident covers.  Finally Tylenol reintroduced the product at a reduced price.  Sales quickly rebounded and Tylenol was on top again.  However, their ethical actions put them ahead of the game.  Tylenol's voluntary recall was inevitable, but so was the voluntary recall of every pain medication.  This allowed Tylenol to reintroduce its product first.  Secondly, Tylenol led the way in terms of safety innovation.  Many other companies soon followed, but Tylenol was at the forefront of product improvement.

This story is proof that acting in the best interests of your publics can work out for you.  Tylenol faced a catastrophe but ended up on top because of the way the company responded during a crisis.

The Tylenol story can be read here:
http://iml.jou.ufl.edu/projects/fall02/susi/tylenol.htm

Public Relations Ethics Disasters

The Public Relations Society of America advocates a code of ethics for all public relations practitioners (viewable here: http://www.prsa.org/AboutPRSA/Ethics/).  Public relations practitioners are expected to abide by the code of ethics, however, sometimes people and organizations fail.  I will discuss a recent high profile case, and how the organization failed.

In 2006 two individuals traveled across the country in an RV Wal-Mart allows free RV parking at all of it's locations.  Wal-Marting across America was born.  Jim Thresher and Laura St. Claire traveled across the United States in their RV writing and posting pictures about how they believed Wal-Mart is wonderful.  This seems perfectly innocent, however, soon the blog attracted the attention of the media.  Jim and Laura were not who they said they were... Jim was a photographer for the Washington Post, and Laura was a professional writer.  This was not entirely damning, however, until it was revealed that Wal-Mart was funding the entire expedition!  The entire blog was a sham created by Wal-Mart to deceive the public into thinking that this couple was independently chronicling the wonders of Wal-Mart and the great treatment/attitude of Wal-Mart employees.  The bogus blog was wrong on multiple ethical grounds.
The blog was a front group.  The blog was discrediting the profession.  The blog was perpetuating the idea of spin and it could have been considered propaganda.  As opposed to listening to stakeholders in the Wal-Mart organization, the company decided to deceptively use a one-way communications model to mislead the public.

Ethics should not be taken lightly, and the exposure of the story created an even greater problem for Wal-Mart.  The story is proof that honesty is always the best policy.

The Wal-Mart blog catastrophe can be read about here:
http://www.msnbc.msn.com/id/15319926/ns/business-bloomberg_businessweek/

Research Revisited

In the last post I discussed how my public relations class conducted a research campaign.  In this post I will provide more in-depth information regarding the first arm of public relations.  A good research campaign must begin with an good understanding of current opinions.  Our class used secondary (information gathered by someone else) research to better understand college broadcast stations.  We also met with our client (the college broadcast station) to understand what he wanted to know about his organization.  Our second task was to conduct large surveys.  Surveys are considered primary quantitative data.  The information from surveys can be used to create statistical information as well.  In politics the first poll conducted is referred to as a benchmark poll.  These polls usually track a candidates standing, and support for the candidate/opposition based on different issues.  In our class we then conducted more in-depth research using interviews as well as focus groups.  The information gathered here was qualitative data.  This information is not usually provided as a statistic, however, common ideas amongst your participants provide good information.  Good research starts with understanding the problem, then understanding the public's perception, then understand what the public wants to see.  It is important to remember to model the number of people and demographics after the demographics population of your potential public (this allows for accurate and applicable information).  Good research is just as good as that!

First thing's First


Any good public relations student knows that there is a methodical way to begin a new campaign.  This could exclude crisis communications situations, but not necessarily.  An acronym exists that guides public relations efforts: R.A.C.E. which stand for research, action, communication, and evaluation.  The building block of a public relations campaign is based on research.  Before you can change the perception of society, it is important that you research your audience.  What does you target public believe?  What does your target public want to see?  There are multiple ways to conduct research.  Just listening to the needs of your public can be a method of research.  Scanning the environment to understand what is on people’s mind is another method of research.  In my political experiences, we have always hired someone else to survey the public, to conduct our all of our polls (benchmark, tracking, and brushfire), and to conduct opposition research.  In smaller public relations firms, you may be required to conduct a limited research campaign of your own to understand your public.  I recently completed a class where we participated in a semester long research program.  Here is how we did it.  We first conducted surveys (a form of primary quantitative research).  We then found the standard deviation as well as the means and average of our survey participants.  Our second task was to conduct in-depth interviews.  Following our interviews, our class researched previously published works relating to our situation.  Finally, we held focus groups to speak directly to our publics.  The work of the class was a prime example of the first arm of public relations.  

Writing for Your Audience

I was recently commissioned to write a travel article for a website (retrips.com).  This article is a sample of writing for a specific audience (in this instance travel), but also it was written to optimize the use of a search engine. S.E.O. is a good concept.  For the public relations practitioner attempting to gain more traction from a story, search engine optimization is for you.  If an article uses specific keywords (approximately 20% of the article) it should appear on the first page of a Google search.  In my instance I used the words "second home" and "Grand Lake".


Grand Lake- A Beautiful Place to Own a Second Home in Oklahoma
            The state of Oklahoma is a place that residents cherish.  From the friendly culture to the sincerity of the people, something about Oklahoma is very attractive.  With good economic conditions within the surrounding area, owning a second home in Oklahoma is becoming more common.  Americans are industrious and hardworking, and most deserve a second home where they can take a break from the rigors of every-day life.  If you think Oklahoma is all prairie… think again.  Grand Lake (shortened from Grand Lake O’ the Cherokees) is an Oklahoma gem.  Those who wish to build a second home away from the city will not find a better vacation spot for nearly 500 miles.  Grand Lake provides all the amenities of a city while providing residents with a refreshing new environment in which to build a second home (not to mention one of the top rated fishing spots in the United States).  The charm and amenities of the area are dwarfed by the fact that constructing a second home at Grand Lake is incredibly inexpensive.  A comparable lake or beach house in a Gulf Coast state would easily be three times as expensive.  The crystal clear waters of Grand Lake, Oklahoma offer a serene outdoors experience for a significantly lower price.  Grand Lake has nearly 50,000 acres of surface area and 1,300 miles of shoreline.  Your second home will feel like your hometown in Grand Lake, Oklahoma.  The local Oklahoma culture is incredibly hospitable and offers everything from scenic hiking, to nightlife, and more.  The recreational activities you will find on Grand Lake are second to none in the region.  The best Bass fishing in the state of Oklahoma is found at Grand Lake.  Boating and water sports are very popular as well.  Imagine the beautiful views of the rocky shore you will experience on Grand Lake from the porch of your second home.  You can watch the kids swim with your new neighbors during the day.  In the afternoon, you and your family can rent kayaks. Finally, at night you can take your spouse out for authentic line dancing and some of the best catfish in Oklahoma.  If this is not your ideal day in your second home, then imagine a different scenario.  You and your friends are vacationing at your second home in Grand Lake, Oklahoma.  You wakeup early and watch the sunrise on Grand Lake as you and your friends toss out your fishing lines.  The cool lake air and the fresh smell of water are all around you.  After the best day of fishing in your life, you take your boat back to your lake house to clean up.  There’s a party tonight on one of Grand Lake’s tour boats.  After hours of fun on the water, the night is not over yet!  Your friends make a trip to one of the lakes many resorts to watch a live concert on shore.  Who thought you could do this in a land locked state like Oklahoma?  Finally, the night is over and you are only a short walk from your second home.  You work too hard to be trapped in the stifling city environment every weekend.  Make your second home at Grand Lake, Oklahoma and enjoy the amenities of the city surrounded by the tranquility of nature.

http://www.retrips.com/index.aspx