Apple’s PR Nightmare

February 9, 2012 Leave a Comment

Recently Apple reported one of the most incredible earning results on record.  In the last quarter of 2011, Apple made a $13 billion dollar profit, meaning that the company more than doubled its earnings in the same period in 2010.   This is amazing news for the company, a true business and PR coup and yet if you were to do an internet search for Apple during the past few weeks, its earnings would most likely not be the story you’d be reading about.

According to several news reports, investigations into the conditions of Chinese workers have revealed the deplorable conditions that workers labor within to produce the seemingly ubiquitous iPhones and iPads.  Until very recently few knew the human suffering involved in the creation of this uber-cool, “must have” devices.

The research that was carried out by NGOs revealed alarming allegations of draconian workplace conditions at two major plants in southern China.  The investigation offers a disturbing look into the lives of the approximately 500,000 workers at the Shenzhen and Chengdu factories.  The factories are owned by Foxconn, a huge firm which produces millions of Apple products each year. The report accuses Foxconn of treating workers “inhumanely, like machines”.

This story is not completely new. Nor is this problem specific to Apple; Foxconn also helps build electronics products for other brand names including Amazon’s Kindle and Microsoft’s Xbox.

But Apple has been the main focus in these stories, causing the company that Steve Jobs built to have lost quite a bit of its luster.  In the U.S., owning an apple device is a status symbol; the products are cool, hip, cutting edge.  They are products that help define the user.  People proudly display their iPhones and iPads and often look down on those poor mortals who own anything else, as inferiors.   Apple has worked hard to define a lifestyle, a point of view, a sense of creativity and thinking outside of the box.  One would have hoped that the company would have thought outside the box in its approach to manufacturing.

So what should Apple do now?  From a PR or media relations perspective they should act and act swiftly.  They should take responsibility, define in concrete terms how they are going to rectify the problem, do it in a transparent manner, and then actually do so.  This is a problem that can be solved and needs to be dealt with; it is not one that can be swept under the carpet.

Copyright © Anthony Mora 2012

Palis, Courteney. “A woman checks her cell phone while…” Photo. The Huffington Post. 07 Feb. 2012. 08 Feb. 2012. <http://www.huffingtonpost.com/2012/02/07/ipad-trademark-china-apple-proview_n_1260741.html>

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Starbucks’ Spirited PR Gamble

January 25, 2012 Leave a Comment

A Big Mac along with a glass of chardonnay?  Who knows?  That could be on the way.  Starbucks is heading in that direction.  The chain will soon be selling beer and wine in select locations.  Four to six stores in the Southern California area will offer alcoholic beverages by the end of this year, as will some stores in Atlanta and Chicago

The chain began testing its new spirited approach in Seattle in 2010. Starbucks now offers beers for $5 and wines by the glass for $7 to $9 in five locations in that city and one in Portland, Oregon.

The questions are: what will this move do to the Starbucks brand? And how will customers have to change their habits in order for it to pay off?  Currently the chain makes most of its daily sales by 2 p.m., which explains the foray into the spirit business.  On the other hand around 75% of Starbucks customers are there for take out.  That won’t work in the beer and wine business.  These customers will have to say and enjoy their beverages in-house.  And what about the kids and teens that have made Starbucks one of their staples.  Will mom and dad be happy sending their kids to a beer and wine establishment?

If this were Europe, there would be no issue.  There families are used to going to pubs or cafes where coffee, food and spirits are sold.  But, the U.S. isn’t France or England and we generally have a different take on where liquor should and shouldn’t be served.  And what happens when a Starbucks barista has to 86 someone?  What will be the protocol for that?

Starbucks has built an amazing worldwide brand.  It has regularly changed its menu offering different types of drinks and food items, but a jump into the world of beer and wine is a big one.  Adding a new pastry, sandwich or fruit drink does not risk compromising the chain’s brand, but offering a happy hour where sprits flow freely will challenge the way many of its customers view the company.

Only time will tell if this gamble will pay off.  Because it directly impacts their brand recognition, it could either turn out to be a PR miscue or a public relations homerun.  Chances are it will land somewhere in the middle.  Since they are only experimenting with a handful of stores, if the publicity effect is extremely negative, they can quickly shut the program down.  But if the reaction is simply lukewarm, or only somewhat negative, they will most likely give the news stores a fair shot and launch a media relations campaign extolling the virtues of this new approach.  If it works, it could become a one stop shop for buying one’s stimulants in the morning and depressants in the evening.  The next big question could be, how are they going to get people to leave?

Copyright © Anthony Mora 2012

Sato, Kiichiro. “Starbucks’ alcohol menu being tested in a handful of shops in Seattle and one in Portland, Ore., includes Rogue Dead Guy Ale, a Pinot Noir from Oregon, a Prosecco from Italy and a Malbec from Argentina. Above, a Starbucks in Chicago. ” Photo. Los Angeles Times. 24, Jan. 2012. 25, Jan. 2012. <http://www.latimes.com/business/la-fi-starbucks-beer-20120124,0,5910879.story>

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Gingrich Teaches the Media Political PR 101

January 24, 2012 Leave a Comment

When on the ropes, go on the offensive and shift the story.  Just a few weeks ago Newt Gingrich was pretty much counted out.  He was in the race, sure, he kept it interesting, but he was certainly no front runner.  And that wasn’t the worst of it; there was all of that baggage.  Then the media came to the rescue.  Gingrich reversed field.  He shifted his attack.  No longer were his opponents in South Carolina Mitt Romney, Rick Santorum and Ron Paul.  His opponents were the interviewers.

Gingrich is a sharp politician; he knows that if you reframe the story you can shift the focus.  Suddenly his opponents became the members of that dastardly evil empire – the media.  Newt saved his most blistering attacks for John King of CNN, Juan Williams of Fox News and Brian Ross of ABC.  These were the culprits that ended up in his crosshairs.  It was the media, not his rivals in the presidential race, that Mr. Gingrich relentlessly attacked and those attacks ironically drove that very same media to keep him in the headlines.  His media assaults gained him standing ovations from audience members at the debates.

It was CNN’s John King that Gingrich saved his heavy ammo for.  King questioned Gingrich about Marianne Gingrich, whose ex wife told ABC news earlier that day that her ex-husband had asked her for an open marriage while he was having an affair with his eventual third wife.  Gingrich certainly knew the topic was going to surface.  It had been buzzing through every major media outlet that day.  And he was prepared.  After King asked the question, Gingrich paused and then fired back saying that he was “appalled” by King’s decision to begin the debate with that question, describing it as “close to despicable.”  Gingrich himself explained that his criticism of the media was helping to position him as an anti establishment candidate and was endearing him to voters.

South Carolina was his prize.  Whether he can continue with his media relations savvy to deflect the questions and reframe the story remains to be seen, but he has certainly proven himself to be one savvy media manipulator.

Copyright © Anthony Mora 2012

Somodevilla, Chip. “Newt Gingrich makes a point as he participates in the NBC News, National Journal, Tampa Bay Times debate held at the University of South Florida on Jan. 23, 2012 in Tampa, Florida.” Photo. ABC News. 24, Jan. 2012. 24, Jan. 2012.          <http://abcnews.go.com/Politics/newt-gingrich-lobbyist/story?id=15430694#.Tx8nFCOSM7A>

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