Articles published in August, 2009

  1. Corporate communications fact number one – perception is reality

    Published on Friday, August 28th, 2009

    PerceptionYou can’t change reality with facts even if your facts are more pertinent than the other persons.  To their own detriment too many people have ignored public opinion on the basis that it’s just plain wrong thinking, and all that’s required is to state the facts. I am not talking about the smacking law – that ship has sailed and can be visited in another blog another day.  
     
    I am talking about consumers relationships and experiences with products and brands, and how changes imposed on the consumer by companies need to be thought through carefully.  Now you’re with me – Cadbury of course took a wee while to realise this, but they did eventually acknowledge the error of their ways and reverted to their original recipe.  But only when they recognised the power of public opinion. 

    Never mind the results of any blind taste testing or solid reasons of corporate social responsibility, people genuinely believed the new palm oil-containing product tasted inferior to the original recipe.

    But now that the heat is off, I wonder if people are complaining about the taste of the very same chocolate still available in supermarkets at a discount as we wait for the new original stock to arrive. And now the campaign is over I dare anyone to swap the packaging at home and see if anyone notices the difference.

    Recently I have been eating a whole lot more chocolate than usual.  Our household’s normal adult intake of zero has rapidly increased because my children’s school (which I won’t name for fear of the critics coming down on us) has been selling Cadbury product by the box-load in one of its annual fundraising drives. 

    Not one person I have spoken to has rejected the product on the basis that it contains palm oil.  In fact, we are all complaining that the neighbourhood is overrun with chocolate and there are competing stalls on the road in the weekend as enterprising kids try to convince me that their chocolate is nicer than the box my son brought home.

    Of course, ours is nicer because it is his chocolate – and are there no calories in school fundraising chocolate either? Okay I am joking, except in this respect: we can all find ways to justify our actions, and those perceptions are real.  At their own peril communicators will forget that perception is reality.

     

  2. Organics will prosper – never mind the science

    Published on Tuesday, August 25th, 2009

    An organic store.There is no reason at all to believe the “organic” brand has been seriously damaged following the UK Food Standards Agency (FSA) finding that there is essentially no nutritional difference between organic and conventionally produced foods. 

    Yes, in the wider market organic foods may have lost some of their lustre, but purchases of “brand organic” or “sub-brand organic” will remain loyal.  Brands are about emotion, not science. Devotees of “brand organic” may have lost their nutritional leverage, but actual belief that they’re better for the environment has always been the big trust factor for organics (whether this is true or not).  This is why organic purchasers will opt for often wilted produce over fresher conventional.  Organic will continue to be an emotional rebellion against general agriculture regardless of how the science stacks up.

    Paradoxically in New Zealand at least some of our best fruit and vegetable operators have adopted and adapted the lessons of organic production, so that the margin between the two systems are ever narrower.

    The beneficiaries of the FSA research are those who’ve generally resisted the allure of organics, as their scepticism has been rewarded. They now feel less guilty, rather than more virtuous.

    The triumph of emotion over science was revisited in the past week by the Prime Minister’s science mentor, Sir Peter Gluckman in the past week in an interview that touched on folate.
    He was lamenting that science was the victim in the campaign against folic acid in bread, because the science was sound, and the opponent had undermined the decision by the use of shonky science.

    And we continue to hear strident complaints about the importation of food and ingredients from China, when there is no scientific evidence for such complaints.

    So, when it comes to food, decisions are closer to the heart than the head.

  3. Does a rugby final justify silence in the face of bad behaviour

    Published on Wednesday, August 19th, 2009

    Fighting in boys schools.Given the public discussion around the Kelston Boys vs. Auckland Grammar rugby game brawl it has been interesting to see the marked difference between how the two schools have reacted through their communication with their pupils and the wider public.

    I was initially disappointed to hear the principals of both schools, in the first interviews I heard on Monday morning, defend their school and blame the other for inciting the incident. Neither one made the obvious point that no matter what the provocation, such violence is not acceptable. 

    However Kelston Boys Principal, Steve Watt is to be congratulated because he did just that later on that Monday.  What’s more, he took action against his own boys before they had even faced the Rugby Judiciary.  Their website shares their statement to the judiciary and the school and firmly puts the blame on all involved.  Although they do hold to the view that Grammar incited the incident.

    Compare this to Auckland Grammar who has, to my knowledge, so far made no public statement and taken no action against the boys who were involved in the fight – whether they started it or not. Surely the same situation applies and retaliation was not acceptable.  Even more for their team, who as the clear winners on the day could have been a little more magnanimous?

    One wonders if Grammar’s upcoming final, and the need to ensure they have a full team available, might have influenced their response. Grammar prides itself on its rugby heritage and is known for being the secondary school responsible for producing the most All Blacks. Is this a lesson we want to set for future All Blacks? And what message does it send to the pupils of the entire school.

    Furthermore, what has been done about claims that the Grammar Old Boys contributed to the heat of the situation?

    When we are constantly hearing about bad boy sports stars misdemeanours in the media, the chance to teach these emerging sports stars about the real consequences of actions has it seems been lost.  We have surely shown them that it is about winning the game at any cost.

  4. Consumers show their muscle and Cadbury fesses up to mistake

    Published on Wednesday, August 19th, 2009

    Stirring the pot of broken chocolate.

    A few short months ago Readers Digest declared Cadbury the No 1 trusted New Zealand brand.  The coverage was extensive…accolades galore for the “iconic Kiwi brand”.

    Before the chocolate was set on that announcement, we learned that Cadbury had re-sized its chocolate blocks and substituted palm oil for cocoa butter. Apparently this was all for our own good, that is the continued affordability of Cadbury’s chocolate.

    The initial protests to these developments seemed quite muted and even confused, perhaps because a competitor attempted to stir the chocolate.  When that intervention was over, chocolate lovers really got to work via Facebook, Twitter and old-fashioned email.

    We’ve now seen the results, an apology from Cadbury NZ managing director: we got it wrong.

    You have to expect that a brand like Cadbury would have done a crisis assessment before embarking on its product changes, no matter how seemingly sensible.

    In the event, once on the back foot, its messages became too complex to articulate and consumers were not interested in listening.  Perhaps another factor in this issue has the determination of consumers to remind Cadbury exactly who determines brand leadership. Consumers create brands, companies are the guardians.

    This has been a hard-earned lesson for the chocolate maker, but one that every FMCG company should have ears for.

  5. Don’t put all your eggs in one basket

    Published on Monday, August 10th, 2009

    Chris CrockerSocial networking sites Twitter and Facebook have been hacked, and much to the consternation of millions of users it’s not the first time the online giants have had their security tested and found wanting.

    Facebook now has over 250 million users and Twitter is snapping at its heels in terms of numbers of registered users. Both social media platforms have become pivotal channels for many organisations to reach out to staff or customers for work, play and the sharing of information.

    Twitter is shrugging off this most recent official hacking, but the breach occurred in the most basic of ways. A hacker guessed an employees password to a personal email account and then simply stole confidential company information and crashed the service.

    According to the Weekend Herald motives for denial-of-service attacks range from political to rabble-rousing to extortion, with criminal groups increasingly threatening to hobble popular websites that do not pay demanded fees, security experts told Reuters.

    These attacks raise some salient points for companies, marketers and communicators.

    First off, never neglect basic web hygiene by maintaining strong passwords that use a combination of letters and numbers, and keep security up-to-date.

    Second, as cloud computing (the fast growing trend of storing data online ) becomes the norm and social networking sites are entrenched as an integral part of business to business communication, then a back-up to these occasionally unstable and vulnerable platforms needs to be part of the plan.

    And last, aside from ensuring that contacts are saved and stored, don’t abandon real time, personal relationships and keep your brand alive and visible in the real world. 

    The lesson from this recent hacking incident is don’t put all your eggs in one basket.

  6. Phil stamps on pathetic, whinging bleat

    Published on Monday, August 10th, 2009

    Chris CarterIn recent weeks Phil Goff has shown the unnerving ability to ‘get it wrong’, and even his most ardent supporters must have been wringing their hands in despair every time he went public.

    Today, Phil got it dead right with his blunt rebuttal of Chris Carter’s outrageous claim that the media were picking on his expenses ‘because I’m gay’ comment.

    When I first heard what Carter said I thought it was some sort of ironic throw-away comment, a private joke against himself. But no, it would appear the guy was deadly serious.

    There was really only one person with the moral authority to call it for what it was – a pathetic, whinging bleat – and that was the Party’s leader. And he did, quickly and decisively, even if he did have to wrap it up in political language that will give Carter the opportunity to withdraw the comment gracefully. Well done, Phil.

    For his part ‘because I’m gay’-Carter can expect to become to butt of endless jokes. I can see the Tui billboard already!

  7. Embargoes are a convention not to be dabbled in

    Published on Friday, August 7th, 2009

    EmbargoesEarlier this week Australian security services and Melbourne police rounded up a group of alleged terrorists.  The raids occurred around 6 am, but at 1.30 am a newspaper was published reporting on matter relating to the raids.

    Security services believed they had an agreement with the media to not publish or broadcast information on the raids until after they had occurred.

    Clearly someone was not aware of this situation.  The newspaper’s action could potentially have resulted in a deadly outcome.

    In its own way, this issue raises the uncomfortable matter of embargoes and how they are used. 

    Embargoes are a convention that may or may not be honoured by the media.  They have no legal standing, and there is no real recourse if an embargo is broken.

    There are some embargoes like the release of Honours Lists that are always respected.  These lists are released under embargo to allow time for the media to prepare meaningful news items. It is an arrangement that suits both the Government and media, and the key to its success is the knowledge that a news group that breaks this embargo will be out in the cold and potentially at a commercial disadvantage next time around!

    So, embargoes are more likely to be honoured if they represent part of regular supply of information that the media genuinely want to use.

    Embargoes should never be used as a mechanism for manipulating the timing of a release so to suit a company or organisation. 

    Companies wishing to release material under embargo should do so with the support of professionals like us.  We will counsel their use only in situations where we know the receiving party will respect the arrangement.

    The alternative is to dabble at your own risk.

  8. Smacking participatory democracy for six

    Published on Wednesday, August 5th, 2009

    Important questionsWhen you consider all the actions and communications regarding the smacking issue, the conclusion must be that from the outset the democratic process has taken a very heavy smack.

    As we consider our referendum papers, the government is telling us, “don’t bother, we aren’t changing anything”.  (Ostensibly this is because of the referendum’s poor wording.) 

    Many senior politicians, including the Prime Minister, are leading by example and telling us they are not even going to register a vote. Perhaps those following suit and binning their referendum papers can’t be blamed.

    But wait…

    Our politicians have been totally reticent about allowing voters to have a say on this important issue from the very beginning.

    Ignoring the polls and believing it was too important an issue to give ordinary New Zealanders a say on, Green MP Sue Bradford introduced her anti-smacking bill and a majority of politicians had their own way with this legislation.

    Now that we eventually do have a say, these same politicians are again telling us: don’t waste your time.

    Perhaps this is the very reason we should vote in the referendum.

    Regrettably most of us don’t understand the legislation and its technicalities, and at the same time we are being told that it is not being strictly applied.   Surely the messages would never have been this mixed if politicians had trusted the electorate on this issue in the first place.