Media, Reputation, Intangibles, Brands, Crisis. Based in media and social media impact and content analysis. By Francesc Pujol. A Blog of Media, Reputation and Intangibles center MRI Universidad de Navarra
Category Archives: Companies
Results referred to Companies and Firms from different world regions
Join @papayamaya & @jowyang today to learn the 4 key strategies social media marketers need to know for success in 2013. You in? #wfwebinar— Wildfire by Google (@wildfireapp) February 06, 2013
The Road to ROI: Four Social Strategies Every Brand Needs to Know in 2013
.
The Road to ROI: Four Social Strategies Every Brand Needs to Know in 2013 [WEBINAR] @wildfireapp#WFWebinar— Candice Grause (@SocialMeTCC) February 06, 2013
Dont participate in social media UNLESS you can align those efforts with your business goals #WFWebinar— THAT Agency (@THAT_Agency) February 06, 2013
social media accounts will be given to all employees, just like computers, phone, email, etc. | via @jowyang#wfwebinar— Pete Codella, APR (@codella) February 06, 2013
Great slide. Business Objectives to Social Strategy. To us, this is a key to a successful integrated social strategy #wfwebinar— Talking Finger (@talkingfinger) February 06, 2013
"A corporate press release style is not going to be effective in social channels." @jowyang#wfwebinar YES! Biggest struggle.— Julie Ann (@jawilliams529) February 06, 2013
Monitor the conversation happening in your industry. Join the convo! Help those potential customers! #wfwebinar— Natalie Pino (@pinonatalie) February 06, 2013
On average, companies have 1 out of 330 employees publishing to social media channels #WFWebinar— THAT Agency (@THAT_Agency) February 06, 2013
"Some KPIs in social can include share of voice, audience engagement, and conversation reach." – @jowyang and @papayamaya on #WFWebinar— Wildfire by Google (@wildfireapp) February 06, 2013
"On average, corporations average 178 social media accounts across multiple channels for business." – @jowyang on #WFWebinar— Wildfire by Google (@wildfireapp) February 06, 2013
62.2% of companies say social media is covered by the marketing dept #WFWebinar— NCM (@NCMSocial) February 06, 2013
The more departments involved in social media the greater the need for coordination and a formal model. @jowyang @wildfireapp#WFwebinar— Barbara Frontera (@BarbaraFrontera) February 06, 2013
Avg. large company (>1,000) – have 11 on their social media team, coordinating social initiatives. @jowyang#wfwebinar— Michael Murray (@MurrayComm) February 06, 2013
"A sign of a mature company: a dedicated team devoted to social." #WFWebinar— Paulette Bleam (@paulettebleam) February 06, 2013
Two distinct roles in corporate social media teams: education manage & business unit liaison @jowyang#WFwebinar— liz brown bullock (@lizbbullock) February 06, 2013
These templates are great, but i think its important to point out structure should be uinque to an organization #WFWebinar— NCM (@NCMSocial) February 06, 2013
I like it. "Creating a Center of Excellence for your corporate social media strategy" via @jowyang on #WFWebinar via .@wildfireapp— John Porterfield (@allianceguy) February 06, 2013
How do you enable employees to use social & maintain 1 voice? Create voice/style guidelines: have a persona @jowyang#wfwebinar— Michael Murray (@MurrayComm) February 06, 2013
Love it! Don't think control employees, think enable them. Takes education and policies. @jowyang#wfwebinar— Tom Simpson (@simpsontd) February 06, 2013
I like the idea of coming up with a brand voice or a muse for your brand even in terms of social media. Love the idea. #WFwebinar— Gleana Albritton (@MsGlea) February 06, 2013
Customers trust people like them more than companies – USE that fact & empower your employees! @jowyang#wfwebinar— Michael Murray (@MurrayComm) February 06, 2013
.
Social media engagement
Now discussing social engagement best practices. 1 tip: respect your followers! #WFWebinar— Wildfire by Google (@wildfireapp) February 06, 2013
Social Engagmnt Best Practces: Succinct,helpful, respectful, visual, questions, clever & real-time. Kinda like life! #wfwebinar @wildfireapp— Leland Means (@LeeTexInAustin) February 06, 2013
Be proactive and go where customers are and engage with them. #WFwebinar— Paulette Bleam (@paulettebleam) February 06, 2013
Engagement Best Practices >> Respect your followers – don't spam them (my fave) #WFwebinar— Christine Gomez (@cgomez10) February 06, 2013
Social media engagement means businesses can't just pitch products anymore. They need to provide value, information. – @jowyang#WFwebinar— Kelvin (KC) Claveria (@kcclaveria) February 06, 2013
Post helpful or lifestyle content (sell the dream). Avoivd marketing talk. #wfwebinar— Natalie Pino (@pinonatalie) February 06, 2013
Don't be too timid to talk about your product/brand. Just do it sparingly — Don't be a "me-monster". #wfwebinar— Natalie Pino (@pinonatalie) February 06, 2013
"It's great to be in real-time, but we've seen some brands that have had some problems because they reacted too fast." #WFwebinar— Paulette Bleam (@paulettebleam) February 06, 2013
Great tip I learned today about social media and networking is: respect your followers! #WFWebinar— Cell Spitfire (@CellSpitfire) February 06, 2013
interesting that financial services though first adopters, have not engaged customers on the most important aspect: transparency #wfwebinar— (@BenParis) February 06, 2013
Haha. "Oreo picked up the ball" during Super Bowl outage.. Well said @jowyang#WFwebinar— liz brown bullock (@lizbbullock) February 06, 2013
@wildfireapp @Oreo has more than just witty tag lines, they have great graphics & are super engaging with their followers #wfwebinar— Chic Runner (@chicrunner) February 06, 2013
38% of companies' superbowl ads promoted hashtags. Last year was only 7%. They're trying to spur engagement. Could overtake URLs. #WFwebinar— Paulette Bleam (@paulettebleam) February 06, 2013
We study another reputation crisis born in the social media. We will show as always measurements and metrics about this case.
@Clouzal’s pic of mice in Quick Belleville Paris, uploaded in Twitter
Clouzal is a Twitter user (@clouzal). He is apparently someone professionally or personally interested in French politics and politics journalism. He is a regular Twitter user (some 6,000 tweets) and has a substantial influencing power, with some 1,200 twitter followers. This is his public avatar at the beginning of May 2012.
He published a tweet just after midnight 1st of May 2012, with a picture attached to the message.
Expanding the message, the photo explaining the message was a surprising six mice at least enjoying a happy meal at Quick restaurant at Belleville Paris.
Followers reacted to this disgusting image answering if it was a joke or a photo manipulation. He quickly confirmed that photos were authentic and that he took it five minutes before he published it in Twitter.
He further explains how he got the photos: the fast food restaurant was closed some 45 minutes before, but lights remained open. He took the photo from the outside.
@mimo1512 @florenzo84 @hichaine le Quick était fermé depuis 45minutes mais ils laissent les lumière allumées. Photo prise depuis la rue.
Even if this was late night, the shocking pic was retweeted fast among Twitter users in France.
I do not have the evidence if this became a Trending Topic in France lists. In any case, its diffusion in Twitter was massive and reached viral status.
And like all reputation scandals that reach viral status in social media area, it moved up promptly to traditional media, which provided coverage to the issue.
A serious hygiene problem for Quick Belleville that is not new
Also, when something born in the social media goes viral, it creates a contagion effect in all social media platforms. (See for instance FedEx case in our blog) In this case the reputation crisis emerged in Twitter. It moved to Facebook, and it moved also to Youtube. How? By awakening sleepy amateur videos showing problems in Quick restaurants, normally linked to lack of cleanliness… and mice.
Social media connexion worked again perfectly, and as soon as one hour after the first tweet, there was another tweet showing a video about mice at Quick Belleville.
What makes the diffusion of this Youtube video extremely embarrassing for the crisis management of this case? This was a video about Quick Belleville restaurant, it showed several mice live freely acting in their realm. The problem was the even if some of the video protagonists are probably the same that appearing in Clouzal caption… the video was taken two months before! The video was upload by March 24, 2012, by another person walking in the street, and discovering the spectacle watching through the video.
During first two months, up to 30 April, number of views was below the 3,000 mark. Five days after it broke the barrier of 150,000 views.
There is even a third video, again from Quick Belleville, upload March 29, 2012.
Evidence that you have in your restaurant several mice in at least a period of two months pushes the story into the stage of a serious corporate reputation crisis with potential great damages in trust and attractiveness of the brand. In any company with average quality management this becomes a major crisis calling all your best efforts in order to minimize the damages. Quick France is a powerful brand in the food service industry in France.
Rats in empty restaurants in Paris brought immediately to mind and to Twitter messages the similarity of this case with the marvellous stories told in the excellent Pixar – Disney Movie Ratatouille.
Ratatouille movie shows a surprisingly talented countryside mouse for cuisine. It moves to Paris and develops its passion in Gusteau’s restaurant. The movie shows the charms and magic of Paris.
… but it also shows rats and mice in restaurants, surviving with food. This is still a disgusting image and a problem for branding and reputation of restaurants in Paris.
There is a happy end for Ratatouille and its friends (sorry for killing the movie), but there is no a happy end for haute cuisine Gusteau’s restaurant. Local authorities act in accordance with the problems faced by the restaurant: it is closed as not considered apt for opening to the public.
‘Closed: due to non respect of rules of hygiene and security. Reason: presence of nuisances’
We will see in this post that despite the severity of the negative impact of the crisis, the response from Quick has been bafflingly weak and lacking of commitment.
We analyze first the measurement of the impact of the scandal.
Measurement of the impact of the scandal. Twitter and social media dynamics
We will provide in this section several metrics concerning the impact of this reputation crisis.
This is again a social media born crisis, as the ignition of the scandal was launched by the tweet by @Clouzal shown above. We have studied some other reputation crisis that started in the social media, in Twitter (#Hoyesbankia case, Loewe Controversial Ad case) or in Youtube (KFC Food Tampering case in Malaysia, Fedex’s guy throuwing my computer case). Viral crisis follow their own rules and require a very specific communications crisis code. We will come back to the strategy followed by Quick France. Before it, we provide insights about the nature of this crisis by showing some metrics about the quantitative impact of the affaire.
First measure is tracking the timeline of this crisis in the source social media, Twitter.
Data in the figure shows the share of all news about Quick Belleville scandal between May 1 and May by day. We find that just one week after the scandal emerged, it is practically disappearing in Twitter communication.
The initial day sharing the pic and comments about the mice created 28% of all news. The peack of the crisis was reached the day after, as it concentrated 33% of all news. This also means that within two days the crisis creates 61% of all reactions to the story. May 3 still captures a lot of attention in Twitter, with additional 21%.
First four days concentrate 95% of all communication and anger or disgusted reaction against rats in a fast food restaurant.
This is the profile of a reputation born in the social media concerning a fact fixed in time, with no additional relevant developments in time.
This figure is also extremely clarifying concerning the need of urgency in applying the crisis communication plan when a company is dealing with a social media crisis
Now we open the analysis to the role played by the different actors intervening in a social media viral crisis. We will present first the time dynamics of each protagonist against the timeline showed by tweet mentions to Quick Belleville.
First actor is the Twitter user @Clouzal, who ignited the crisis by uploading a high quality image of mice in the kitchen of a fast food. His authorship was acknowledged in the Twitter community, as he received a lot of retweets and mentions. In many cases, the original source of a case is lost in the net and other Twitter users that pick the original message get the recognition. In this present case, @Clouzal received more than one thousand retweets to one of his messages including the photo.
As for the time evolution of mentions to @Clouzal, we find in the following figure that credits for his finding were concentrated in the first day. Mentions to @Clouzal in that day supposed 76.5% of all mentions related with the crisis. 95.5% of all mentions were concentrated within the first two days. If we compare this result with mentions to Quick Belleville (61% of all mentions during first two days), we find that references to original sources are diluted after 24h. At least in this case.
Next big stars of the story are the mice.
We have monitored the timeline of the pics shared in Twitter showing the happy mice in Quick restaurant.
Figure below shows us that the distribution of the photos follow also a faster track than general news about the scandal. First day concentrates 61% of all pics shared. First two days represent 85.6% of all shared pics. This is telling us that the harming content of a social media crisis behaves in a much more viral profile than the crisis itself. This is clearly bad news for companies affected by this king of scandals for two reasons. The first one is that this reduces dramatically the time for responding to the ugly content that people are discovering. The second one is that this result confirms that viral crisis are extremely damaging for brand reputation as the concentration of bad news in a very short period of time create more durable negative impact than a scandal more smoothly distributed in time. Shock branding, positive or negative, has deeper and more durable effects than smooth branding.
Third relevant actor increasing the size of the scandal and deepening the reputation impact of the crisis are the Youtube videos shared by Twitter users that show more mice in Quick restaurants. We have seen that there are at least two showing rats or mice in the very same Quick restaurant at Belleville Paris. Both are recorded and upload before this reputation crisis emerged. We have seen that one of them exploded in number of visits in a couple of days. Twitter shared videos is responsible for discovering related pieces of evidence of the hygiene problems. Viral and contagion diffusion is also continued by the on-line editions of newspapers that allow news including embed videos.
Empirical analysis tells us that the videos were discovered and shared already by May 1st. They reached their daily peak one day later, as May 2 received 43% of all video distribution. Number of tweets showing the outraging videos were still high during the two following days. In this case, the videos, distributed more smoothly than the pics, contributed to expand the timeline of the social media crisis, maintaining its presence in Twitter during four full days.
In a crisis there is also a forced protagonist: the company indicted of misbehavior. The presence of all brands in the social media allow costumers to react establishing a potential direct communication with the company. Of course, full communication requires a dialogue between two parts. But even if the company does not react at all, social media creates business and brand communication as social media users are witnesses of the attempts by other people to contact a company manifesting complaints, criticism, congratulations, satisfaction or gratitude. Transparency and full access to all existing content makes Twitter a tremendous branding weapon for the good and for the bad. Facebook enhances and increases visibility of costumers perceptions and reactions about a brand, but its lack of common and free access to all content limits the power of Facebook as costumers revealing sentiments.
We show in the figure below the metrics concerning the time distribution of mentions by Twitter users to the Twitter official account of Quick France, @Quick_france. Mentions to the company are calls by scandalized mice pic viewers to Quick management to react and explain their position about the terrible hygiene mistake.
Calls to Quick community manager at Twitter were concentrated during the first day of the crisis, as May 1 collects 63% of all mentions. Just two first days cumulate almost all calls (95.7%) by public opinion to hear about Quick France position. We will come back later in this post about the corporate communications crisis management. The result here is that people require immediate explanations from management when a flagrant business scandal emerge.
Another typical actor appearing in a reputation crisis is the term of comparison, the epitome or ‘canonical’ example about this singular issue to be compared to. This is a rhetoric resouce used by media and also of course by social media users, as mean to set up the severity of the crisis or to help readers to easily explain what the problem is all about. We have seen in this blog for instance that when a political sex scandal emerge, the mentions to Bill Clinton (and Monica Lewinski) explode. Or, when there is a tsunami alert, references about 2004 tsunami goes to Aceh more than other places also affected by that tsunami.
Here the term of reference is Ratatouille. This talented mouse, as explained before in this post, is the star of a marvellous animated Pixar movie about gastronomy, hidden talent, passion for job and dreams, charms of Paris… but also about the lack of hygiene conditions in restaurants.
Empirical results show that the presence of Ratatouille in the Quick scandal storyline follows the same path and time distribution than all news about the scandal. This is clearly a Ratatouille scandal.
Depending of how massive and shocking this current crisis is, and how Quick France addresses and manage it, there is a substantial risk that new mice stories in restaurants will be not only Ratatouille cases, but also Quick-like cases.
This reputation crisis is what some authors call e-reputation crisis. I personally do not understand what e-reputation means, as what we consider, and what is there is the reputation of a corporation or a brand, and nothing else. Reputation is made by perceptions built up by facts, perceptions based in those facts, but also in prejudice, anecdotic evidence, personal experiences and media and social media portraying perceptions. This includes reputation components coming from this ‘e-’ framework.
Whatever we call it, we have some cases where brand reputation is disturbed in a positive or negative way by events mainly happening in the social media medium, like the one we are considering. Something happening in the real world (mice being in an inappropiate place for Quick reputation interests) is captured by a real world person with a smartphone, and from the smartphone is jumps almost immediately into the social media communication area. There it grows as scandalous fact known by other real world people and brand customers interconnected through the social media channel Twitter (and thereafter also Facebook and Youtube).
If the social media developed reputation crisis reaches viral status, it increases the chances of becoming an affaire relevant for public opinion. In that moment, the scandal becomes an attractive story of traditional media. A social media born reputation crisis may become a nice story for on-line and off-line newspapers when it reaches viral status precisely because the scandal has been enriched in its storyline by the fact that now this is something hot in the social media that is creating bold and outraged reactions against Quick France in Twitter community.
We have seen in other reputation crisis cases in this blog that when a social media controversy reaches the Trending Topic status (TT) it becomes almost automatically matter for news in the traditional media (see for instance the Loewe ad controversy or #HoyEsBankia housing eviction action).
This happened again in the Ratatouille Quick Paris case. The scandal was presented as news in leading newspapers in France as soon as by on-line news by May 2, 2012. You can check here some of the leading references.
L’ÉGOUT, C’EST NOUS – Chez Quick, les souris dansent depuis longtemps, Le Monde, May 2, 2012
Des souris dans un restaurant Quick, Le Figaro, May 2, 2012
Souris chez Quick : Les clients écœurés, France Soir, May 3, 2012
Quand les souris dansent chez Quick, Le Parisien, May 3, 2012
Of course, when the myriad of small social media criticism and crisis reach the viral status and the reach leading national newspapers, the status of the reputation crisis is automatically upgraded to major emergency. Of course also, many small social media crisis reach the critical viral status because of the passive and poor reaction by the affected companies and a poor social media crisis management. We will discuss later about the reaction by Quick, but you can guess that if we have chosen this case is probably because of the absence of proactive social media culture shown by Quick management to address this reputation crisis.
Whatever the responsibility of the poor action by Quick Community Manager or the actual probability to stop it by adequate measures to avoid it reaching the viral status, it eventually happen in this case, and the crisis become one of those surprising news in the newspapers that many people like to read in order to get shocked and react in consequence.
When a social media crisis is translated into traditional media news, the social media crisis is feed and strengthened. As online newspapers count with a wide audience, there are many readers that discover the existence of the scandal by the news. As explained, this kind of news are specially attractive by some newspapers, as the generate a lot of traffic and a high intensity of readers response. Some of them comment the news, and some other want to share with other their outrage. How? Sharing the news with their personal contacts and network in the social media. Many people republish the news as a personal Facebook entry or as Twitter message with a link to the online article.
The vicious circle of the virality is reinforced, as now many other people in the social media learn about the existence of mice in Quick restaurant because someone is sharing the news about it published in a leading newspapers. This external reference provides credibility to the event, and many new people get in contact with the serious hygiene problem that Quick has to address and fix.
We show you in the next figure the dynamics of the tweets containing links to news about the Quick Belleville problems. We find that there are no news during the first day of the crisis. All the scandal virality is nourished by pure social media sharing. By May 2 tweets with links to news enter into the storyline of the reputation crisis. We find that this first day concentrates 57% of all links to news. There are another 30% tweets with links to news the day after. Two days after, May 4, the number of shared news are still relevant, with 8.6% of al tweets.
If you compare the timeline of shared news with the other sources previously presented, it clearly shows that the presence of on-line news are a key factor for expanding in time the extent of the reputation crisis.
The structure of the components of a social media reputation crisis
We presented in the previous section one by one the main sources intervening in a social media crisis, to show their respective dynamics.
In this section we gather together all pieces in order to present you the structure and the evolutions of the components of a reputation crisis in the social media.
In the first figure we show all tweets by day, decomposed by the sources presented in the previous post. Actual data is not accurate as in some cases a single tweet can include more than one of the components in the list. Also, we measure here only new tweets, and we discard the vast amount of retweets (consider for instance that one of the tweets by @Clouzal received almost 1,200 RT).
The life duration of this reputation crisis in the social crisis is basically three days, with first two day being the most relevant ones in terms of impact. This means that impact and legacy of this crisis is done with information created and shared between May 1st and May 3rd. The relevance of new information arriving after May 3 is minimal. This is again valuable information concerning the timing of corporate responses to crisis originated in the social media.
Tweets with mentions to the source @Clouzal, sharing the disgusting pics and mentioning the cause of the crisis @Quick_France constitute the structure of the first day of the viral diffusion of the crisis. This means that the shared message is very close to the original source.
In the second day, the leading Twitter references are links to on-line articles about the crisis. In the third day these links are the vast majority of shared content about the crisis. This is an empirical evidence of the crucial power of traditional media in providing content for social media communication. Even in a crisis which is fully originated in the social media (a smartphone photo transformed into a Twitter pic), the sense of the story is soon ‘controlled’ by the traditional media, as Twitter users share with other people what traditional media explain about the crisis.
This was already a previous personal perception, but confirmed in this and other empirical tests: to me, social media will never kill traditional media. In the contrary, it is asked to play a much more crucial and influential role. But the figures we present related to this case tell us also that social media imposes new working standards to traditional media. Newspapers that reacted quickly to the social media crisis and published a news about the story by May 2 receive a much wider attention and diffusion that media that entered in the story just one day after. Fast reaction newspapers receive 79% of sharing links in Twitter versus 21% for newspapers writing about the story after May 2.
We can get a better view of the evolution of the structure of source components by day in the following figure, where we show the percentage weight of each source by day.
@Clouzal, the Twitter user launching and sharing the scandalous pics has his moment of glory in the first day of the crisis, with almost 50% of prevalence. His presence quickly diminishes in the following days.
Newspapers take control of the storyline of the crisis yet in the second day of the crisis, as they represent 54% of all content about Quick Belleville. Their share increase to 75% the day after.
Videos about other cases of mice in Quick Paris play a minor role in quantitative terms (never more than 7%), but their actual reputation impact is probably bigger. In some cases, these videos ‘re-discovered’ thanks to the crisis enter as part of the content included in on-line articles. As some online newspapers count with very large audiences, this is probably the main cause of the explosive increase of video views (remember that they climb to more than 150.00 views in a couple of days).
Influential newspapers in this social media crisis
We commented in the previous sections of this post that news article player a role in this genuine social media crisis. Interested by the viral impact of the mice image in Quick restaurant, they published news about this story. Right now all on-line versions of newspapers allow interaction with readers through comments or sharing the news. As explained, the possibility to publish a Twitter message that simply corresponds to the title of the article plus the link to its content has as a consequence that news amplify the impact of the crisis in the social media, as new people in Twitter learn about this issue thanks to this kind of messages.
Every newspaper and every journalist create their personal storyline based in the same fact: they all count as raw material with a photo with six mice in a Quick kitchen. Even if ell depict and describe the same event, perceptions arising from the reading of the news may differ substantially depending in the newspaper.
Newspaper play an active role in the conformation of public opinion and views in the social media. Even with an event that it is apparntly as ‘objective’ as a photo.
We present now which have been in this crisis the newspapers most shared in Twitter. This provides a measure of their influence in participating in the common script emerging from this social media crisis. We have already run a similar exercice of newspaper influence index in this blog, applied to the scandal of alleged corruption by a Spanish Royal family member, Iñaki Urdangarín.
According to our empirical results, leading French newspaper Le Monde is the most influential newspaper in this crisis, by far, as it controls a 39% share of all articles shared in Twitter. This is one of the newspapers pertaining to the fast reaction group, as the article went on-line by May 2.
Second most cited newspaper is 20 Minutes, with 15% share, followed by Le Parisien with 12.6%. We find in the list some pure on-line newspapers like Blog Jean Marc Morandini (2.8%), the French edition of HuffingtonPost (2.8%) or Video-Buzz.fr (2.6).
It can also be observed that there are some non French newspapers in the list like Le Matin from Switzerland or El Mundo and ABC from Spain. It is in fact through the international impact of this reputation crisis in Spain that I learnt about the existence of this corporate crisis.
Analysis of media reaction to Quick France reputation crisis
Some 50 news have been published about the problems faced by Quick France. More than 40 come from media in France. We have seen that there are some newspapers abroad that published the story, in Switerland, Spain and Portugal. News in newspapers are the traditional channel where corporate problems become reputation crisis. PR and brand communciation teams use to have well established protocols to react and manage communciation crisis with media impact.
Nowadays reputation crisis grow and develop both at in parallel in the media level and in the social media level. There is constant interaction between both levels. We have seen that in this case the crisis emerged at social media level, but made quickly surface at mass media level. This quite massive media coverage expands the reach of the viral crisis in the social media area.
While both levels are intrinsecally interconnected, it is probably the case that some corporate reputation teams take problems or critizism seriously as a reputation crisis only when it reaches the traditional media level. This case and many other cases show that this attitude is completely wrong and that all communciation measures that will follow will be meaningless or at least of limited efficacity in managing the crisis and restoring reputation accurately.
Before we analyse Quick communications management of this crisis, we present empirical results about the impact of the crisis at newspapers level. This new stage allow us for the application of specific tools of empirical reputation crisis analysis.
In this section we have selected 22 news about Quick Belleville scandal that have received a relevant number of visits and interactions. We show what can we learn about the brand reputation impact of this crisis by proceeding to a common analysis of all 22 articles.
The first variable that we analyse is to regroup the newspapers into three groups, according to the profile given to the seriousness of the scandal.
Mild: they present the news by following the explanation given that the company, which considers that this is a common problem in restaurants in big cities like Paris.
Mild-Severe: they present the position given by the company, that this is a common problem difficult to address, but the reflect some criticism to this point, showing for instance that this is not the first time that mice have been seen in this restaurant.
Severe: the journalists presents the case as a serious hygiene problem. The newspapers strongly critizises the reaction provided by the company as being non valid excuses. In some cases, mention is also made to previous scandals at Quick affecting human health.
Of course, this classification is not fully objective, as it lays in my interpretation of the treatment and perception emerging from each different newspapers. Let’s take the results we propose as a big picture of how the crisis is treated by the media, and not something mathematicaly exact.
We find that 36% of news show a mild treatment of this crisis, thus Quick France appearing more like a victim than a responsible. Of course, this does not eliminate the shockin impact by readers learning that no less than six mice are living and eating in shared space with restaurant costumers.
41% of articles show criticism against Quick France, while an additional 23% show strong criticism and attack the brand quality standards of the company.
As we are using the on-line version of the newspapers, we have not monitored how many of them went also into the off-line edition. For all off-line versions of the news, Quick France like all companies count with media clipping services that translate each news into media impact in terms of average readers per newspaper.
In our case, on-line versions of the news are probably more relevant than off-line, as they include in many cases the direct access to the Youtube videos showing other disgusting cases of mice in Quick Belleville restaurant. This material is highly chocking and creates a call and sharing effect, that it cannot be reached in the paper version of it.
The good and the bad thing of on-line versions of news is that actual viewers is extremely volatile even within a newspaper, but there are a lot of records of actual impact of each news. Some newspapers provide information of total number of news, or at least if they reach the list of top read news. Unfortunately this is not a common practice, and this prevents us to use number of views as measure of media impact. But, fortunately, we count with indirect measures that are used by all newspapers in their on-line edition: measurement of reaction of readers. The information available in practically all cases are comments by readers, and reaction by sharing the content in the social media. We have seleted sharing in Facebook and Twitter.
In fact, we have already shown results about social media sharing in the previous section, by showing top newspapers by number of sharings in Twitter. Now we will use this information about Twitter, Facebook and comments to show the global media impact of the three media approaches to the seriousness of the crisis: mild, mild-severe and severe.
First figure refers to newspapers reaction by sharing the read news with personal network in Facebook. The ugly news have been upload as personal content to show and share with Facebook contacts in more than 13,000 cases! The two newspapers most widely shared are Le Parisien, with 5,700 FC shares, followed by Le Monde, with 3,600 shares.
We have colored newspapers following their attitude towards the crisis: yellow is midl, orange is mild-severe and red is severe. This means that news showing a mild image of the crisis have been more widely distributed than others. They appear in 53% of all Facebook shares, while they only represented 36% of all news. This is due to the massive impact of Le Parisien article. We find also that in the other extreme, news showing a severe judgement of what Quick France is doing are distributed more intensively than average. They represented 23% of all news but they reach 34% of all Facebook sharing. This also imply that news showing an ambibalent position are this time less shared than the other extreme positions.
Concerning sharing of Twitter messages, we do not present the figure, but just present their share: mild: 35%, mild-severe: 28%, severe: 37%.
Next step is presenting results about comments by readers of the shoking news, organized by type of treatment given by the newspaper. Writing a comment imply a much higher degree of engagement by readers and need to react after reading in this case something disgusting.
We find that in this case the share of total comments coming from newspapers presenting a mild version of the scandal sum 32% of all comments. This is slighly less than their share in terms of number of news. This is substantially lower than easy reaction by sharing through Facebook.
Mild-severe news produce 34% of all comments. This is again less than their share in terms of news, but more than the share of facebook sharing. Finally, commenting the news when their are presented as a severe crisis produce 34% of all comments. This rsult is in line with their share of Facebook posts and then is also much higher than their share in terms of news.
We find that in this case, the worst is presented by the media the image and role of the company in the scandal, the higher the commited participation through comments by enraged and angry readers.
All this suggest that even faced to a crisis based in very objective elements like the pics and the text of the response given by the company, media are probably able to modulate the extent and the final size of the reputation crisis depending on the wording and the approach followed to explain the ‘objective’ elements of the crisis.
News storyline about the scandal, depending on newspaper assesment of the severity of the issue
We continue the information of previous section concerning the different treatment given by media to the crisis by showing some key elements depicting the story.
The approach we follow now is to estimate the profile of each one of the three groups we have made concerning the main components of the crisis storyline. We want to identify if they are present in the same way between groups, as a way to identify sensitive issues used differently depending on how serious the hygiene crisis is perceived by each newspaper.
We show all the results with several figures, and we comment them alltogether.
Pic of mice (figure 1) are present in a vast majority of news (80%) and the percentage is lower in mild profile articles. We do not find relevant differences concerning the use of the sensitive video (figure 2). It appears in around 70% of cases in all categories.
There is a sbustantial difference in the way the news refer to the source of the crisis, Twitter user @Clouzal (figure 3), is much more present in severe oriented news. This is probably not due to the fact that this reference to the source makes the case more serious, but is reflects rather that news showing a more severe judgement develop the context of the story in a much detailed extent.
Another relevant difference in the storyline is the use in the news of bold reactions manifested by social media users (figure 4). A typical one is transforming the official brand slogan (‘Quick c’est le gout’, Quick it’s the flavor) into a negative one (‘Quick c’est l’égout’, Quick it’s crap). This rethoric tool (putting in others mouth what the journalist and the readers are thinking) is much widely used in news with a severe approach of this crisis.
We find another extremely sensitive issue where we find again a strong divergence in it’s use depending on the profile of the news. This is the mention in the news to past health scandals suffered by Quick (figure 5), as direct or indirect suggestion of the harming effects of having uncontrolled mice in a restaurants. It refers in this case to a dead suffered last year by a young man after eating a burger at Quick Avignon. It was proven that the source was e coli from Quick meat. This casualty received international media attention, as it happened in the midst of a terrible lethal e coli crisis in Germany. Including references to this terrible past affaire suffered by Quick clearly puts the present mice crisis in a very negative perspective. We find that only in 12% of news with a mild approach there is a reference to this case, while it jumps to 80% in news with a severe approach.
You can check here a media reference in English about this case of death of young Benjamin Orset after eating two contaminated burgers at Quick Avignon (Family to sue after boy dies from eating bad burgers, Radio France International, February 22, 2011)
Finally, we find that news with a severe perception of the crisis are associated to a higher commited reaction by readers, measured by comments per hundred of Facebook shares (figure 6). Of course, a most accurate measure would be share of comments by number of views, but we do not count with this information for all newspapers.
Gathering all findings referred to the structure of the news, we find that there is clearly a different choice of crucial components depending if global approach is mild or severe concerning the perceived seriousness of the crisis. There is no neutrality in explaining a rather objective event. This is of course not a discovery nor a new thing, but we have provided here some metrics to capture empirically the tools used by newspapers to build their biased approach to the crisis.
CRISIS RESPONSE BY QUICK FRANCE
Up to this point, we have shown in this post different metrics about the evolution and the extent of this reputation crisis. Now we turn the analysis to how Quick France managed this crisis.
First reaction was no reaction.
If you take a look again to the different charts that we have presented in this post, the crisis was already highly visible during its first day, May 1, 2012. The crisis entered into social media area soon after midnight. Early in the morning the diffusion of the shocking images moved away from @Clouzal’s inner circles and counted with all ingredients to become a viral crisis. As shown in the first figure of this blog entry, during the first day some 28% of all tweets were published. This is a visible and disturbing enough amount of angered messages calling for a reaction by the company at the source of the crisis, Quick France. This is was it happened indeed, as we have shown that during this day, official Twitter account received 63% of all ‘digital calls’ to provide an explanation to the awful restuarant pic.
There was no reaction at all from official Quick France sources during this day.
It may be argued by some (as discharge?) that May 1 is the Labor Day, and this was a public holiday. And this is true. But Quick France fast food restaurants are not closed on May 1 or in any other day of the year. Even if being a holiday, it is hard to imagine that all managers and representatives were sleeping during all the day. This would imply an even worse information about the company management standards: that there is nobody able to assume responsibilities and decisions to protect and preserve the company interests if the problem arise out the working hours.
The absence of reaction during a holiday may rather reflect that this crisis was not considered by the emergency team in place as a red or even orange alert deserving the activation of extraordinary measures implying that top management should be disturbed during their rest for an emergency corporate communication meeting. ‘We will discuss about this embarrassing issue tomorrow. Tomorrow morning, for sure’. In the meanwhile, Quick France has nothing to say about six mice in my restaurant.
This decision or rather this absence of decision suppose that all communication and the construction of the storyline is completely dominated by scandalized social media users. Time is crucial in viral crisis, and the rapidity in providing content to the story is essential if the affected company hopes to conduct or at least take part in the reputation crisis conversation.
We all know that in some cases, silence or no official reaction is the only available option by firms suffering from a reputation scandal. We have praised for instance that in the house eviction crisis suffered by Bankia when a singular case became a Twitter TT (#HoyEsBankia) the financial institution did not provide a press release at all, and bank official Twitter account was silent during the crisis. Bankia just stopped the judicial order to evict the migrant from his house. (see #HoyEsBankia case). We have also seen that a very strong answer can become damaging in the long term, as people are interested in knowing the scandal case not because they learn about the scandal, but because they want to see or watch the response given by the company. This is the problem we detected concerning the communications management of the food tampering crisis at KFC Malaysia (see KFC Malaysia case).
This is clearly not the case here. The hygiene scandal needed for an urgent explanation coming from the company. It did not arrive.
Cou cou le Community Manager, Where are you?
We have already shown above this new tweet by @Clouzal calling Quick France Community Manager (CM) for action. This was an amazed an surprised reaction from someone who did not find any reaction from a firm accused by the facts of a serious business misconduct. It reflected the perception that follows after a non response attitude: don’t you really care at all about your image and reputation?
One explanation for the silence is that the board did not consider it a serious enough crisis. The other one, or one factor that helps to explain the lack of quick reaction is a poor company social media culture.
Why did the CM from Quick France did not react to the massive calls for reaction?
Simply because that there was nobody behind @Quick_France to receive the alerts. And this is not due to the fact that May 1 was a public holiday. There is nobody behind @Quick_France.
If you visit the official Quick France Twitter account (https://twitter.com/#!/Quick_France), you will find the same surprise I had, showed in the caption I took, presented below.
You have it. Quick France in Twitter is just 11 tweets in all his social media story. They had 56 followers!
Of course, in the first moment, I thought this was a fake account or a secondary account. No hope. This is the main Twitter account of the group related with business in France, its by far main market.
Yes, Quick France is a newcomer in Twitter, as they just opened their account by the end of February 2012. This late arrival in Twitter is telling a lot about how Quick management cares about social media communication and branding strategy.
But once you are in, you are expected to play the basic rules of the channel. We don’t see them. You have all Quick activity in Twitter in a miserable page with eleven tweets. 7 of them were posted in the social media euphoria of the newborn, within the first week. Then just one more tweet in March. And finally just three tweets in April. Of course, no traces of the crisis and any other kind of communication within May. This is arguably not a tremendous Twitter corporate engagement.
Apparently, the company or the CM do not know that Twitter is a marvellous tool for communication with customers, potential new customers, critics and society in general. This means bidirectional relationship. How many people or companies Quick France is following? Zero. How many references to other Twitter users loving Quick France do they show? One, @MintInBox. How many messages from other Twitter users have been retweeted in their account? Zero.
With this framework, it was hopeless to receive any kind of reaction by @Quick_France CM. It is probable that corporate boards and managers considering that entering in the social media culture is a waste of time and resources, they also probably tend to consider Twitter users as potential enemies, and source of attacks to brand reputation. They probably forget that some Twitter users are also Quick France customers loving its fast food products. If Quick France customers call for explanations through Twitter and nothing happens, it is likely that upset customers become never again customers and show their discontent both for the scandal and for the lack of response to all their social media network. You can expect that actual customers react more proactively to this crisis than non Quick customers.
Look at this interesting tweet by @MicakelNogal, showing surprise by the fact that there is no links to social media in Quick official web page.
Quick France response to the reputation crisis: ‘c’est la vie!’
Something similar to a company response came at the end, almost two days after the pics were upload in Twitter and Facebook.
I say ‘something like’, because there is no trace at all of this response in any official document of the company. You will find nothing about this case in Quick ‘communiqués de presse’. This is a caption by May 6 2012. (Link to Quick Press Releases in French, Year 2012)
We have already shown that nothing is mentioned in the official Twitter account. We show below that the same occurs in the official Facebook site, as post by 18 April is followed by another one by May 4 with a promotion linked to France Presidential elections. (Quick France Facebook. Entry 4 May 2012)
We know that this is a legitimate communications crisis tactics, as far as the message you are sending to your customers and the media reach them. We praised for instance the subtle communication strategy followed by sponsor Saxo Bank after WADA announced a two years sanction for team leader star Alberto Contador for doping. Communication was made about the position of the financial institution, but the channel used was never one using the brand logo Saxo Bank (see Saxo Bank case).
Communication was made this time as a response provided by Facebook community manager, as a Facebook comment to people answering Quick France about the case. So, this was not a Facebook new post, but a comment that appeared in personal Facebook pages of people reaction to this scandal. This is why this text does not appear in the official Quick France Facebook page.
This is the capture provided by the main protagonist of this story, @Clouzal, as shown in his Twitter account.
Translation: Quick France regrets the sudden presence of rodents in the Quick restaurant in Belleville. This restaurant counts with a permanent contract with a pest control firm and is therefore subject to regular controls by professionals. An additional check was immediately asked by management. This type of pest is not restricted to fast-food restaurants but is a real problem for all large commercial businesses in the major towns of France.
That’s all.
This is enough for Quick France as the appropriate way to address the problem and to communicate to concerned customers and opinion.
The good thing of this communicate is that it does not allow for a lot of ambiguity concerning the sense of the message and the attitude taken by the company concerning the problem. Basically,
1. Yes, we have rodents in our restaurant.
2. This is a sudden, unexpected problem (‘présence inopinée’). We were not aware that we had mice in our Belleville restaurant. We don’t like Youtube, and that’s why we didn’t know that our costumers were filming awful images of happy mice in Belleville restaurant.
3. Yes, when we say that ‘this is a real problem for ALL large commercial business in large towns in France’ is that we are indirectly acknowledging that this is not an isolate problem at Belleville restaurant, but that we at Quick suffer from this hygiene problem in other restaurants of the chain.
4. Yes, we try to address the problem, but not to fix it. We have a pest control firm, and we have the mice. The later always win. We took a new control, and there was no traces of mice in Belleville restaurant. Are they gone? No, of course, the six happy mice are still there, and they are still hungry. We did just not found out them.
5. Yes, we assume that this is a lost battle. Mice are always there. They will be always there. You, the rodents and Quick, in perfect harmony.
6. This is not our problem. This is a general problem. We assume it. You have to assume it. This is part of Quick consumer experience.
7. By the way. We regret it.
This is what I read from this calculated response by Quick France, published some 48 hours after the problem emerged.
I this what stakeholders really expect from Quick France?
My content analysis of Quick France response to this important reputation crisis was not ironic. It was totally serious.
I was totally surprised when I learnt about this corporate reaction to a crisis. I was shocked.
A crisis, a corporate or a personal crisis tells a lot about the soul of persons and institutions. A bad crisis management may reflect simply a mistake by PR team, or7and it may rather be a revelator of poor corporate practices, strategies, culture and values.
Of course, analysing this case from Spain, where Quick does not have a relevant presence, and based only in the analysis of how this crisis has been managed, I cannot take conclusion about where the real corporate problems lay. This would require a more systematic reputation pest control analysis. But the pieces of evidence are not positive for a brand in quest of leadership and excellence.
Consider by contrast the reaction taken by FedEx. As we show in our FedEx case in this blog, this leading post delivery company suffered from a deep reputation crisis as a consequence of a Youtube video showing a FedEx worked throwing a very delicate computer screen over the fence. This video counts with more than 8 million visits. (See the FedEx case here)
It is clear that such a worker misbehaviour is an exception. It is true that this may happen and actually happen in FedEx competitors. (replace all by rodents and Quick).
This is what we recommended as a good response to be followed by FedEx, before they actually reacted:
This is Transparency Age. Social media magnifies little but disgusting mistakes. Waste of time if companies try to deny or justify them. Impossible to fight against the viral dissemination of this new source of brand reputation. Companies will have to decide if they are positive and thankful to these opportunities offered by the new channels providing information about customers feelings and complaints, and react introducing improved product and service standards. Really, this video is telling to FedEx management that something can be improved in terms of service delivering. This was a 20 seconds delivery, and we don’t know if FedEx job protocol rewards more quantity delivered than quality. If they understand this, Fedex cand improve long term quality service and customer satisfaction.
As for possible responses in this communication crisis, we feel, in line with our basic analysis, that only a message asking for pardon to all costumers plus a determination to improve delivery standards, training and control will be considered by the video viewers.
This is also the advice that fits as a good response for the Quick scandal case. You can see that this is not the way chosen by Quick France.
You can find in the same blog entry the response given by FedEx.
They are full in line with our own perceptions on how to address the reputation crisis.
We have a promised pending analysis about how this corporate response at FedEx was received, as we have the numbers. Even if we shown in a second post (Case FedEx 2) that the impact of the crisis was notable for FedEx, we know that the response mitigated the short term effects and its long term effects.
Our perception is that Quick France response will not help at all to restore trust in Quick France values and brand promises.
THINGS THAT I LEARNED FROM THIS CRISIS
1. Next time I visit Paris, my first choice will not probably be Chez Quick.
Except if I learn in between that as a company they have identified top quality in services and hygiene as one of the true brand values they strategically promote.
2. In year 2012, there are still some large corporations living in a pre-social media era.
I did find one of them. It is possible to survive as a brand without taking into account seriously social media. I imagine that some brand can even live comfortably as if social media world did not exist. But I really doubt that companies struggling for excellence can exist aside a powerful business connexion. There are managers from companies in some business sectors who consider that being in the social media does not add value and is a waste of time or connecting with wrong target audiences. But a leading brand, whatever its business sector is, has as commitment to take care at its best of costumers needs and perceptions. Simply, there are always some customers of any brand or corporation that are communicating in the social media. Some times they talk about their favorite brand, some times they have complaints about their favorite brand, and sometimes they want to talk and be contacted by their favorite brand. Social media succeeds in reaching all these goals. There is no leading brand that can ignore and be disconnected to what their customers are communicating in the social media. leading brands take part in this communication.
3. Twitter is a marvellous tool for companies loving the best standards in brand and corporate reputation management.
This is not new, as we have proclaimed our preferences and love for Twitter several other times in this blog. The open nature of this social media source plus the homogeneity and the space limitation for messaging (microblogging) create both a content that is extremely easy to understand and monitor, and direct access to all communications in the network. This combination of features, that cannot be found in other successful social media channels like Facebook, Youtube or Pinterest turns Twitter into a new attractive tool for measuring in real time communications about a brand in any corner of the world, or in your town. Using appropriate monitoring and metrics, Twitter can play a role of early alert platform of crisis, problems or unexpected reactions from costumers, public opinion and other stakeholders. Nothing like this was available for highly performing companies ten or five years ago. This is true even if Twitter is not (yet) strongly developed as a widely and popular social media. As this new tool exists, and it can perfectly work for tracking reputation crisis, my perception is that top firms are obliged to use Twitter nowadays as essential tool in any corporate reputation and crisis management scheme. Of course, Quick France is right now not included in this list of companies, and was not aware of the extent of the crisis, its growth and evolution into a viral crisis. My guess is that the message provided by the company by May 2 came probably not as a response to the growing criticism in the social media, but much more simply to calls from top newspapers who where preparing their article and wanted to know the position and reaction of the company before publishing it. Almost all news counted with the response provided by the company, and some of the early news were published just few hours after the text appeared as personal answer in Facebook.
4. Twitter is not a toy for unexperenced interns.
If a company understands that Twitter is not just a new way to show your products and services to customers, but that it plays in fact a relevant role for establishing true communication with costumers, managing this task is not a matter for the new graduated with no professional experience. Communicating with customers require to have a deep knowledge of what the company is and which are its core values. It requires loving the company and what it does. It requires also an expertise in both social media rules and in reputation risks to be able to capture emerging problems and issues. Detecting new problems in the early stage by someone with enough seniority in the firm allows to take early decisions and direct or indirect reactions that imply that the problem is addressed from the very first moment.
5. Just-in-time metrics are essential for running twitter as a real time detector of potential new crisis.
Expertise and experience of the Community Manager play an essential role for detecting problems in the social media affecting the firm. Here the accumulation of knowledge of both the social media interactions and the perception that people have about the company and competitors make that many problems are quickly identified by the CM, apparently by intuition. But intuition cannot be enough in many cases, especially if the social media reputation team works in large corporation and the company apply high standards of brand equity preservation. The CM team needs the support of software that provide in-time quantitative results about the state of the social media mood about the company. This program should identify the emergence of every relevant new epicentre of problems, like a seismograph. This program identifies for each new source if it is level 1,2 3 or 5 problem and its evolution in time. This program adapted to your needs exist for sure. If this program does not exist (I don’t believe it), it deserves to be created. I am sure that there are many technical solutions out there, as I am able to find and create this kind of live results for the topics, institutions and brands that I am interested in.
See for instance a list of tools recommended by Puromarketing:
We all, individuals and coporations have some right to make mistakes. Nobody is perfect, apparently. But we have less rigth and reason to conceive strategies incorporing mistakes by design, that are just waiting the the appropirate conditions to activate and become a crisis, like virus.
In this sense, and just watching things from the outside, we can judge that choosing the brand slogan ‘Quick, nous c’est le goût’ is probably not the smartest marketing decision.
It is true that is is too easy to criticise thing afterwards. But it is also true that the connection ‘nous c’est le goût’ to ‘nous c’est l’égout’ is a quite direct one. Fast food industries are nor rewarded in reputational terms for quality of the products and the promotion of healthy eating patterns, whatever the actual facts are. Thus, knowing that many people dislike your brand values, it is strange to choose a slogan that enables a so easy mockery.
Below there is a caption from the video showing mice in Belleville restaurant. The author of the video establishes the easy connection with the official slogan. He/She eventually uses this modified slogan as title of the Youtube video. If you check the titles chosen by some newspapers, they also use this new slogan adapted to the crisis.
When your brand or corporate slogan is turned into derision, you have there another serious and durable reputation problem. If the reputation crisis spreads the new fake slogan to many customers, the old official slogan becomes a source of brand reputation troubles. If you launch new ads using the traditional slogan and when people watch it makes mentally the translation into the new sense given by the viral crisis, then your own ad is turning against your interests.
This problem may be a legacy of this poorly managed viral reputation crisis. But this problem in the future will exists also due in part to the choice of a extremely risky slogan.
The second example of problems that are created mainly by the own practices followed by the company and not due to external elements is the cause that allowed costumers to capture the mice in Quick Belleville restaurant, both in video and in photo. Do you know how they did to get the compromising pics that will create a short and long term negative effect in Quick France image and reputation?
Just because Quick Belleville restaurant has clean windows showing the restaurant backstage, and because lights are not switched off after opening hours.
This was explained by @Clouzal in one of his tweets. Here you have the proof from a caption of Youtube video.
The question is why Quick Belleville uses transparent windows showing from the street what’s happening in the back office, which is in fact hidden to customers inside the restaurant? Transparency! Transparency is a very nice brand value! Yes, but why do you need transparency there? I find three possible explanations: as a way to exert indirect control to Quick workers, as they know that people can watch them from the outside. Probably this kind of labor motivation strategy is not the most advanced one. Second, as an indirect security system, to prevent robbery. This would explain also why lights remain on during closing hours. Third explanation, just ‘nonchalance’, indolence. Maybe management has not even considered if it was wise or not to have transparent windows. Whatever the reasons behind this decision, if Quick Belleville had used translucent windows, there would not be pics, video and reputation scandal.
*** Note: As the analysis of Case Loewe is becoming too long, it is currently organized in three parts. This is the structure of the three posts in this blog.
3. Monitoring the reaction of viewers after the crisis.
4. Reaching the desired target, as never before
5. A substantial increase of people loving Loewe (+39% or +157%)
6. New targeted customers discovering old Loewe products… and loving it
7. Reaching International Markets, As Never Before
8. The role of parodies and spoofs: parodies of a parody
9. Tangible Benefits: Increase of Twitter Followers of 21% in one day
10. Tangible Benefits: A Sharp Increase Of Loewe Followers’ Engagement in Twitter and The Social Media
11. New Dimension of Loewe in Social Media Brand Visibility
12. Sharing My Loewe Experience. Photos Upload By Twitter Users
Part II: Loewe Is Dead. Long Live Loewe!
This post is the Part II of our analysis of the ‘Case Loewe’. Based in our measurements on social media impact and content analysis, we are trying to tackle the reputation impact for luxury brand Loewe of the crisis created by the company launching an ad designed as a viral marketing strategy that turned tremendously negative in terms of reaction by viewers of the video.
We will try to prove in this second post that Loewe will gain a lot of benefits from this apparently devastating campaign. As always, our analysis and conclusions are driven by data analysis, more than following my own feeling and perceptions about the case.
The controversy emerged when a Youtube video created by Loewe to present the new Madrid Oro Collection 2012 bags reached viral status becoming a Twitter Trending Topic. There was a negative consensus among viewers, accusing the young models appearing in the ad as stupid, naïve and pathetic. The controversy lasted for days and the videos reached extraordinary number of views. Many people and experts consider this marketing campaign as a disaster and a tremendous mistake by Loewe.
You can watch here the controversial video. You can follow the statements made by the models, as they are subtitled in English.
Loewe has made available the commercial in its short version. This edited and shorter version version becomes a more conventional fashion video, as it consists in a combination of images and music. The controversial comments and remarks by models have been excluded in this new version. You can watch it here.
*****
Stating at this point that Loewe has something to win after the massive negative impact of this terrible video may sound ignorant, stupid, pretentious, just provocative or a combination of all of them.
I assume that I am taking in this post a very minority position, and that I at this point of the reading I am facing a natural opposition from readers familiar with this case that consider it a complete branding mistake. I am playing the role of a contrarian, and I am conscious that I have the charge to demonstrate that I count with tangible evidence to support my position.
I have tried to prove in the previous post that I am not ignorant or unaware of the catastrophic negative impact of the campaign. On the contrary, we have shown data and figures that reflect an extraordinary and probably unprecedented negative reaction to a marketing campaign.
1. Measuring the direct negative impact of the campaign. An update.
As a way to summarize the results, we present the basic facts concerning the measurement of the impact, updated with current numbers. In our previous post we showed results right in the aftermath of the campaign, with data after two days the emergence of the crisis. Now we count with information covering two additional days.
In our first post we showed that views of the controversial video reached the half million mark. Now, it has exceeded the 1 million mark, by far. This refers solely to the official video about Collection Oro 2012, plus the complementary videos presenting the models individually. But in the meanwhile have grown substantially parodies and spoofs based in the original video. We distinguish between parodies of the original video that modify the sound but maintain the original images, and spoofs that are critics created by video bloggers that don’t use the original images and Loewe bags. All together, these videos linked to Collection Oro 2012 make more than two million views in Youtube.
New content does not modify greatly the picture obtained previously concerning the share of positive-negative ratings by Youtube viewers: 93% are negative. This is a rare unanimity of people disliking a video content.
Total number of views sounds quite impressive for a diffusion of a commercial. How relevant they are for Loewe as a brand? We have a perspective of it if we estimate their weight compared to all videos about Loewe in Youtube.
The updated data shows that currently the videos linked to the current controversy represent 65% of all content about Loewe. 44% corresponds to the content created by Loewe, and 21% are the parodies and spoofs. As previous content is almost all positively rated and almost all new content receives negative votes, the distribution shows also the present share of positive-negative reviews of Loewe’s content in Youtube.
The verdict of the direct negative impact of the campaign is unquestionable: devastating. This was in fact the title chosen to present the Part I of this reputation crisis case.
Our goal now in this post is to respond to the question about how harmful this negative impact is for the brand equity of Loewe. Our answer is that, paradoxically, we feel that Loewe brand value has increased… if Loewe assumes coherently its newborn brand profile.
There are some people and even experts praising this marketing movement on the common ground that ‘it is good for a brand if all people it talking about you, even if they do not say nice things about you’. This is not at all our reasoning and assessment of this case. It is true that in some cases (political leaders) this may be a strategy to easily reach your goals. It is much more difficult to admit that it apply also to luxury brands in the fashion industry.
The way to find the positive branding impact of the ‘catastrophic’ campaing is twofold: to assess first how are the perceptions about Loewe brand among the targeted customers, before and after the campaign. Secondly, to evaluate how this campaign has affected loyal Loewe customers.
2. About the target of the marketing campaign
We disagree here also with the diagnostic made by a vast majority of observers who have already commented the case. With almost no exceptions, experts or journalists consider that Loewe has decided to enter into the market of young fashion victims, like the twelve models presented in the video. This choice is the basis of the position taken by each expert to then attack or applause the strategic decision taken by Loewe or, more correctly, by group owner LVMH.
No, my perception is that the targeted group by this ad are no young people in their twenties. I am convinced that the new target chosen by Loewe is active people, mainly women, in the range of ages 30-45. People with a powerful professional career or being part of a wealthy family. People active, ambitious, loving culture, trends and innovation. Loving fashion products that incarnate these values. These people are not those represented in the ad. But these people are not either the ones that people used to associate to the brand Loewe before this ad. Loewe products were associated before the crisis to an elegance always based in quality, tradition and discretion. This profile was highly appreciated by ladies with a conservative fashion approach, and also by aged people. Loewe was typically associated to ‘señoras’, distinguished mature women.
We have shown how Loewe takes the audacious move to use their own models to tarnish Loewe’s own reputation as being ‘my mother’s brand’ or even ‘my great grand mother’ brand. This apparent branding suicide is converted into a shocking paradox by the fact that these statements are made by young trendy models.
As we explained in the previous post, we understand that this is the main message and goal of this marketing campaign: to tell all buyers of luxury fashion products that now Loewe is a trendy, creative and innovative brand. The creative and provocative campaign based in contradictions and extravagance is the tangible proof that Loewe is really calling all people loving ultimate and fresh designs to consider Loewe as the perfect choice. The campaign breaks the schemes of classicism and fashion conservatism, because the products shown in the campaign also create a divorce with the perception of traditional products. Loewe is presenting a collection of bags that are provocative and extravagant by themselves, as they combine the tradition of their ‘Amazona’ bags with these new aggressive fluo colours.
This message is clearly addressed to these active and successful professionals willing to show their personal values with these kind of new products. These professionals are only by exception people in their twenties. It is addressed directly to people above 30 years old, but who do not want to be associated by their wearing as being traditional and moderate.
If this diagnostic was correct, why then choosing very young and inexperienced models, instead of people similar to my suggested target of 30-45 years old people? Because if they had chosen established models they kill all the shocking effects produced in this video. If you eliminate the shock, you block the viral diffusion.
The target was 30-45 years old, active, wealthy, loving the newest fashion proposals, and that were not customers of brand Loewe because they considered it suitable for older people with more traditional approaches, being thus unfit to manifest their own values.
Young between 20-35 are not the main target of the campaing, but are nevertheless an interesting segment for Loewe new brand position. They are not main target because the proportion of young that have the personal financial ability to buy Loewe luxury products is lower (consider that the bags appearing in the ad are sold for 1,600 euros (2,100 US$). They may become costumers more via gifts. They are nevertheless an interesting target segment for Loewe, as each young using a Loewe Oro bag is confirming elder customers that Loewe is a trendy brand loved by luxury fashion victims.
Youger teenager people are not direct target of the marketing campaign, as they are not the natural users. It is interesting for Loewe to attract them not directly as customers, but as brand followers. This increases the aspirational profile of the brand, and increases the desire of being a Loewe user when reaching the appropriate age.
What about people older than 50 years? They are not of course the target searched with this campaign. Loewe assume that they can even become the victims of the new brand positioning. Some traditional and loyal Loewe customers will feel shame with this new extravangant approach and will feel uncomfortable by using in public a bag that has changed its public perceived values. Some of them will stop buying Loewe products, at least in the short term. But we cannot exclude –at all- that many other mature and aged Loewe users will love the new reputation created around Loewe (once that the strong direct negative reaction of the ad passes away). They will become the users of a luxury product that now is also accepted and appreciated by younger customers. They will find that their tastes and fashion choices are now recognized as trendy. Nevertheless, Loewe does not want that mature customers wear products designed for younger segments, in order to ensure that opinion see in practice that Loewe is not anymore the brand for old wealthy people.
Loewe is now (20 March 2012) starting to expand the use of the Oro collection 2012, now that the social media enters into more clam waters. They have included a selection of photos of the models. They have proposed also a collage of photos that provides the interpretation of what Loewe considers is the lifestyle of a Oro 2012 bag owner. It represents the profile of someone with extremely wealthy conditions in a classy but young atmosphere. We still mantain our key of lecture of the marketing campaign.
You can contrast our diagnostic with the official statements by Stuart Vevers, Loewe Artistic Director, concerning his views for the luxury brand for the next decade:
As ostentation is replaced with a taste for the refined, Loewe will continue to focus on its core values of creativity and craftsmanship exemplified by the most sumptuous bags, prestigious leather and suede clothing for men and women, silken scarves carrying tales of Spain and, of course, all the promise of its famous gifts in beautiful packaging. Retail design, starting with the Marqués de Dos Aguas store in Valencia, is now the responsibility of international architect, Peter Marino. “This is a great time to reinterpret the DNA of a noble House to which so many Spaniards have a deep emotional attachment”, says Stuart Vevers. “There’s a pulled together, almost aristocratic sexiness to Spain that I’m trying to do a provocative take on. I want people wherever they are to say, ‘That’s really Loewe!’ “Everything starts with a delight to the senses. Loewe – where one touch tells the story”.
Loewe had different options to reach the desired main target of customers (30-45 years old), selling a credible message. The option chosen was through social media channels.
3. About the channel used to present the campaign
If Loewe wanted to reach specifically the segment 30-45 female and male interested in luxury fashion products they may have considered fashion and women’s magazines. This choice had two incovenients. The first one, is that it circumscribes the impact of the campaign and the new brand proposal to local Spanish newspapers. We will come back later to this point, but it is also clear that one of the strategic goals pursued by LVMH is to build Loewe Madrid as the brand of the group with strong Spanish flavour, but with international reach and awareness. Launching an international campaing in fashion magazines in several countries presenting a Spanish brand with limited visibility would be extremely costly and probably poorly effective. The second inconvenient of using the natural channel of specialised magazines is that they are also bought by women older than 50 years. Those are the traditional target of Loewe, and is the one that could feel more dissatisfaction and perplexity by a rebranding movement that imply a modification of the secular brand values. If the marketing strategy can also limit the exposure to their loyal traditional customers, it is better, and this is not possible going to fashion magazines.
The option of a short commercial to be aired in TV suffers from similar shortcomings. The 20 seconds format imposes a lot of creative limitations for sending in an effective way that now Loewe is a trendy luxury brand non anchored anymore in discretion and tradition. If this is made using a shocking message in order to capture attention, thi may affect adversely current loyal but old fashioned customers.
And there was the option finally chosen, to tell all the story exclusively using social media platforms. The content was perfectly designed to always stay in the social media sphere. By creating a more than three minutes commercial, Loewe prevents that the entire ad goes to television in TV News. It obliges all interested people in watching it to access it through the YouTube platform. This ensures that the natural medium of diffusion remains in the social media world, mainly by Facebook and Twitter comments, reactions and recommendations to view it and to enter into the debate about its content.
The benefits of maintaining the diffusion of the marketing campaign in the social media world is that, if successful, it ensures that it will reach all the desired new target, as Twitter and Facebook is predominantly used by people in the range 15-50 years. Also, the active successful established professional who are the main target are heavy users of all these social media tools. Finally, social media is the platform that prevents the more its access by older people with traditional values who are the main asset as current consumers of the brand. In conclusion, Loewe made the perfect choice of the platform to present the new collection, and designed properly the commercial in order to ensure that it remained always in this social media platform.
Once the platform to communicate the new collection of bags is made, the marketing or communication department is asked to propose the best way to ensure that it actually reach the target objective.
4. About the genre chosen in the commercial.
We have the target, the channel, and now we need to consider the genre chosen by the marketing department to explain the story that Loewe is from now on a luxury brand perfectly suited by active and professional successful women and men loving trendy and quality fashion proposals.
The choice of the genre required two main components: it needed to provoke bold reactions (positive or negative) in order to engage the viral process to ensure that the new main target is reached. The second element of the genre is that once the main target is reached, their ability to appreciate the brand values linked to the luxury product that they are discovering (the bags) is not punished by the characteristics of the envelope (the ad).
There are many companies that have exploited directly social media virality as direct and unique channel for a marketing move. Those are the marketing campaign based in Youtube videos that are longer than one minute. These videos can be watched only in the social media platforms (in Youtube or in embed formats in Facebook, Twitter or blogs) and cannot go off-line. If the videos produce strong reaction, talking and sharing social media platforms (Twitter, Facebook, sms, whatsapp) ensure the viral diffusion, ‘for free’.
Loewe could consider different genres when designing the campaign with the mission to reach the 30-45 years old audience.
In any case, the genre chosen, either through positive or negative responses, require the following reactions:
· I have seen an incredible video. I am under shock
· Hey, watch this video, it’s simply amazing
· What’s going on with this story that all people is talking about?
· Hell! I have not yet watched the video! Please tell me where I can watch it.
· I thought that you all were exaggerating, but now that I have watched the video I see that it is true.
First option is to create strong a positive reactions.
Motivational and inspirational videos
They create personal positive emotions, that people want to share with friends.
The problem with this approach is that attention and ractions are all focused in the story itself as a whole. The product or the brand never enter into the story as one of the leading protagonists. This is a suitable strategy for creating an association of values to strenghen the perceived values of a brand. But they are not useful for presenting a rebranding strategy willing to present a divorce with previous brand values.
See for instances the cases of Nike and Pantene.
Nike
Pantene
Videos showing extraordinary performances and talent
These videos produce admiration and amazement. In some cases, the brand can be used as theme of the story, and is used as a way to stress one of the brand values. In other cases there is no clear connection with the company brand values, and the viral diffusion simple enhances brand visibility and awareness, linked to something viewed as positive.
This strategy could be followed by Loewe. But the problem of using ‘an amazing video’ is that there are clear risks that the main goal pursued by the luxury company could be lost: its is difficult to design an amazing positive video telling the story that Loewe is no more an old fashion brand.
There is here a couple of examples.
First one is by Honda, and it finds a perfect match between the video content and brand values.
There are two other cases, with weakest relation with corporate brand values. One if them refers to a luxury brand.
GM Sonic with OK Go
NTT Docomo
Hermès
Second option is to provoke controversy by generating natural negative reactions combined by some positive reactions by others. Here the debate ensures the viral diffusion. If negative reactions strongly prevail, calls for a company amendment and retirement of the controversial ad also work as activators of the viral diffusion.
We can consider the following options:
Controversy by scandal
Designing a campaign directly tailored to create outrage by many viewers, selecting for instance sexist or obscene, making spoof of a respected and cherished personality or institution
This is an option followed by companies that suffer from inherent bad or poor reputation due to the fact that the sector industry itself is poorly considered (gambling, low cost products and services, sex related industry). It is followed also in some cases by companies whose main target is young costumers and chose a brand strategy based in transgression and provocation.
This strategy has been followed in many cases by companies like Ryannair, Bennetton, Ashley Madison (infidelity contacts).
This option was not suitable for Loewe. It needs to maintain its luxury brand status. Also, a scandalous commercial would not be perceived as a credible proposal coming from a brand perceived as a traditional one. Finally, Loewe is not looking for young customers, but for well established people.
Controversy by extravagance
We have explained in the previous post that we identify extravagance as the option clearly chosen by Loewe with its commercial. All the components of the commercial script are grounded in creating an atmosphere of extravagance.
Extravagance is a reasonable option for a brand in the fashion industry or in the arts. It is a common practice, specially in the haute-couture catwalks presenting season collections of fashion firms. Even if extravagance is shocking, it is considered coherent for a fashion brand, and it is well appreciated by many fashion lovers, even if common public uses to react negatively to extravagance.
The interesting thing of extravagance is that it is always linked to the brand profile of the product or the artists. Extravagance is made by using the brand in an unexpected way. Using extravagance implies that reactions to the ad will all be linked to Loewe and to values connected with extravagance. This option ensures that the controversy will be focused in the brand and in the brand values proposed in the ad.
We have plenty of cases of firms and artists using extravagance. The first artist using extravagance in a systematic way is probably Spanish surrealist painter Salvador Dali.
One of the current references in extravagance is Lady Gaga. Here some of the well know extravagant proposals.
In both cases, extravagant personal branding are coherent with their artistics values.
Showing the models with the bags over the head is a soft Dalí-Lady Gaga strategy.
As explained in detail in the previous post, extravagance is the key of lecture of all the content of the commercial. It is extravagant that a company depicts itself as old fashion, and it is extravagant that these statements are made by young models wearing Loewe products. It is extravagant that modern looking models (piercings, half skinhead) do not say scandalous or provocative comments, but instead very naive and banal comments about love and life. It is extravagant that the music chosen for a fashion ad is a circus-like rithm.
Extravagance is designed to create controversy. There will be negative reaction among people that see is as pure provocation and lack of good taste and moderation, which corresponds in some cases with people attached to traditional aesthetic values. Extravagance will be appreciated by those seeing behind it values like innovation, creativity, audacity, authenticity, independency, courage, exclusivity. Those people loving extravagant proposals don’t care or are event motivated by the opposition and negative reaction of the majority.
All this reflection lead us to conclude that extravagance was the perfect match chosen by Loewe to announce a dramatic shift of brand values.
Extravagance is an aesthetic genre. It can be used by designers, artists and actors. Playing extravagance is simply a role, not the reality. This is why I was so amazed to see so many observers reacting to Loewe ad by insulting directly the models accusing them of being stupid, immature, subnormal or cretins. This naïve reaction is like insulting the actor playing the role of an assassin. I was really surprised to find this kind of reactions in newspapers and professional blogs.
It is sure of course that even if Loewe was looking for creating controversy as means to create viral marketing, they did not expect to create unanimity against the ad. There was only one camp in the controversy, as only a really small share of viewers manifested publicly that they liked the commercial.
5 Communications Crisis at Loewe: Crisis, What Crisis?
Loewe publicly disclosed the long video presenting the Oro 2012 campaign by 13 March late in the evening. By 14 March early in the morning it became Twitter Trending Topic. It was soon evident that it would become viral as the immediate reaction of almost all people watching the video was a call effect to all personal contacts ‘Hey! Look at this. Incredible!’. It was soon clear that the reaction was almost unanimously negative. Loewe Corporate Communication and/or Reputation team had time enough to execute the ‘Contingency Plan’ for an ad designed to become controversial that was becoming too controversial and negative. If Loewe had not planned the ‘Plan B’ ex ante, it had all the day to design it, as Loewe was the issue concentrating all social media attention, and soon after also traditional media.
How did Loewe react to the reputation crisis? by doing nothing.
Before showing you the communications crisis strategy followed by Loewe, I would like to refer to some examples of communications crisis cases that we have considered in this blog.
Case FIFA. Bribery in Bidding Process: – FIFA took some weak disciplinary measures against top FIFA officials alleged of corruption. Instead of acknowledging that FIFA structure suffered from governance problems, they defended that their standards were good enough. Our measurement of media reaction shows that FIFA lost reputation.
Case Grand Resort Pigeon Forge, TN – The Dirtiest Hotel in America according to Tripadvisor. Grand Resort denied the validity of Tripadvisor’s users reviews. The Hotel management tried even to show that their cleanliness standards were excellent. They eventually sued Tripadvisor. We show in our analysis that Grand Resort was missing the opportunity to improve quality service by discarding the valuable information provided by angry customers.
Case Bankia. Becoming a Twitter TT due to a Housing Eviction- Activists succeeded in showing to Twitter users the problems of a family about to be evicted from a house with a unpaid mortgage to Bankia, creating the hashtag #HoyEsBankia. Reaction by Bankia was to stop the judicial order execution. No comment at all to this event was made by the bank. Bankia succeeded by its decisions, more than with declarations, to stop the viral social media crisis.
Case FedEx. Reacting to video of a worker throwing a computer – FedEx showed an incredible fast reaction, as they upload a video by a top representative from FedEx presenting excuses to customers. The video was positively rated by viewers and reaches half million views. Complete analysis of the impact of this communications crisis is pending.
Case AFLAC. Disgusting jokes about tsunami in Japan by your ‘voice’ (or download pdf version)– The actor giving voice to the duck, the mascot of AFLAC published some tweets with awful jokes about tsunami in Japan. Reaction from AFLAC was bold and immediate. They fired within hours the actor. Our media content analysis shows that the reputation of the company and the duck was preserved.
Case Blackberry. Outage November 2011. We show that the poor communications crisis management repeated the same mistakes made in April 2007 outage.
Case McDonalds. #McDStories or how to create a Bashtag – We commented this case within the analysis of a special promotion made by Telepizza. A Twitter conversation launched by McDonalds become soon a viral conversation against McDonalds. McDonlads stopped the promotion of the hashtag within two hours. McDonals official acknowledged that they were learning how to use social media.
Case Mourinho Real Madrid. Press Conference Accusing UEFA. Real Madrid lost the first leg of the UEFA Champions League 2-0 at home, against FC Barcelona. Real Madrid coach Mourinho considered that the red card for Pepe was determinant in the result. He accused UEFA to complot in favour of FC Barcelona interests. Real Madrid increased worldwide media impact of this affaire by launching new accusations against FC Barcelona. Our media content analysis shows that this controversy was damaging international brand reputation of Real Madrid. Later Real Madrid took a communications crisis of silence after Mourinho was sanctioned by his statements.
Case Saxo Bank. Using a sponsoree scandal to strengthen your brand values (or upload the pdf version). Alberto Contador was condemned to two years ban of competition for consuming doping substances. We show that his naming sponsor took advantage of this crisis to present themselves as a financial institution supporting its customers in both good and bad times, as they were doing with the cycling team. We show how this strategy has been praised, specially in Spain.
We learn that in general, communications crisis based on denial or in inaction tend to unsolve the crisis and tarnish corporate reputation.
This inaction seems to be the strategy followed by Loewe management. There were no statements at all during the two days when the social media controversy peaked.
We have mentioned in our previous post that things went not exactly as expected, as Loewe took some decisions in reaction to the crisis. It decided soon to disclose the access to comments in the videos of the campaign located in their official Youtube channel. They also decided to withdraw a video commercial about the perfume ‘Aire’ that was initially upload in the aftermath of the crisis. Finally, they moved the controversial video away from the main page of the Youtube channel.
El Mundo was able to get comments by the artistic director of the video campaign, Luis Venegas. He manifested surprise that people reacted shocked by ‘spontaneous’ and very candid comments about love.
Sobre las opiniones de los chicos de la campaña, Venegas cuenta: “Son frases que han dicho ellos. No hay un guión, pero me sorprende que pueda crear problemas que alguien manifieste que es guay sentirse enamorado. ¿Alguien opina lo contrario?”. El Mundo, 14 March 2012
There was an additional statements, revealing: my task and the command I received was not to create a sociological study about Spanish youth, but simply to show bags from a fashion firm. He felt happy and proud with the results obtained.
The models were apparently no allowed to comment about the design of the campaign. El País got some comments from the majority of them amateur models.
Maria Rosenfeld pointed out that ‘they have obtained what they were looking for, and well more than expected, as all people is talking about this ad’ She ads, ‘this was a joke. I am never combed like this, I don’t speak like this. It was funny. Martín Rivas said that ‘the result of the campaign is excellent, as it is for Loewe products’ (El País, 14 March 2012)
The critics continued during the following days. As all jokes and insults were addressed to the models and their comments, some analysts commented that Loewe was lacking of sense of responsibility by the absence of official reaction.
In accordance with this approach, the media confirm that Loewe refuses to provide an statement judging the results of the campaign (El Economista, 15 March 2012). There was no retraction or signs of attrition from the company.
Of course, this absence of reaction in the midst of a severe crisis has been criticised as another corporate mistake.
There is only a reason that may you to choose corporate silence: the denial of the existence of a reputation crisis. It is hard to accept this if you are a luxury brand and the commercial that you have just launched receives 95% of negative rating. But if the company plan the strategy a controversy by extravagance, rejection and ridicule is the price to pay for reaching your strategic goals. It is clear that these days are uncomfortable for all people working at Loewe. But if all was planned, you do not need to react and try to change the movement of the social media waves.
Then came the first official reaction linked to the controversial campaing, again by using social media platform.
Loewe posted a new entry about Oro Collection 2012 in both Twitter and Facebook official accounts.
When I saw it, I personally considered (and tweeted it) as a brilliant communication crisis statement.
What was Loewe telling as communication crisis with this message?
My understanding is that after their silences Loewe was confirming that the social media tsunami and its impact in Loewe brand was not a reputation crisis but a rebranding desired crisis. And than the new brand emerging after this crisis was not a provocative brand oriented to young consumers. The new Loewe aspires to become a trendy brand to be shown by customers and that all people identify it: ‘Look, it’s a Loewe’. And that the ones using proudly Loewe products are neither old women, not young alternative people, but active women professionally succesful, loving fashion, trends, elegance and quality. This is a brand for Angelina Jolie, Leighton Meester and Kylie Minogue, and by all other people in their age (not in the tweenties) admiring these role models.
Some top members of Loewe management were obliged to answer some questions to journalists when the firm presented the new refurbished flagship store in Barcelona.
Accepting this interpretation of the message provides a strong confirmation of the hypothesis and basic lines of analysis proposed in this post. Loewe has decided to take a ‘once in a life’ decision concerning the brand position of Loewe, and this required to destroy many (not all) well established perceptions about Loewe brand values. This taks could be reached only by creating a tremendous controversy.
This is Lisa Montague, CEO at Loewe. According to El Mundo, Montague confirms that loewe is in a process of creating a new brand profile; there is a strategy of rebranding, and there is a viral marketing strategy. They do not come yet to conclusions about the impact of the campaign. ‘Time will tell us’. (El Mundo Orbyt, 21 March 2012).
There is another statement by Stuart Vevers, Artistic Director. He commented that even if not having Twitter, he knows all things that have been said about the campaing. ‘Loewe is changing. Of course I have an opinion (about the impact of the campaign), but my mouth is closed’ (El Mundo, 21 March 2012)
If the communication strategy, top managers and the Twitter message shown tell us that Loewe does not see any particular problem in how the campaign is affecting its brand reputation, this imply that even after the terrible attacks by social media users, Loewe considers the marketing strategy not as a complete failure, but probably as its opposite.
So, let’s start proving with facts that this risky marketing decision was not a complete failure, but it contains all the seed to become a tremendous and brilliant success.
As this Part II was getting definitively too long, I have moved the analysis on how we measure the positive impact of this crisis to a new entry in this post. Please visit
*** Note: As the analysis of Case Loewe is becoming too long, it is currently organized in three parts. This is the structure of the three posts in this blog.
3. Monitoring the reaction of viewers after the crisis.
4. Reaching the desired target, as never before
5. A substantial increase of people loving Loewe (+39% or +157%)
6. New targeted customers discovering old Loewe products… and loving it
7. Reaching International Markets, As Never Before
8. The role of parodies and spoofs: parodies of a parody
9. Tangible Benefits: Increase of Twitter Followers of 21% in one day
10. Tangible Benefits: A Sharp Increase Of Loewe Followers’ Engagement in Twitter and The Social Media
11. New Dimension of Loewe in Social Media Brand Visibility
12. Sharing My Loewe Experience. Photos Upload By Twitter Users
Part I: Loewe Colección Oro 2012 – The Aftermath of a Devastating Ad
Starting presenting this analysis just 24h after Twitter and social media in Spain entered into one of its viral waves due to a shocking event. This time was not an scandal originated by personal or institutional misbehaviour. It was simply the reaction to the Youtube video ad showing the new collection of bags and complements by leading Spanish luxury brand, Loewe.
This is a 3 minutes, 27 seconds main video. There are some complementary videos showing developped stories about the models appearing in the main video.
The content of the video became very quickly a Twitter trending topic (TT), reaching top position by mid day, 14 March 2012. Visits to the video propelled. Online newspapers were obliged to react to this social media excitement presenting the fashion campaign and the controversy it created, early in the afternoon. It reached national TV news programs. The increase of traffic by people attracted by curiosity was soo intense that Loewe internet site went down, by 5pm, and was not available during the day.
There was no reaction at all from Loewe management cocnerning the ongoing controversy. Artistic director answered some questions about the goals of the publicity, that appeared in some newspapers in the afternoon.
This extraordinary marketing case is also attracting the attention of many academics and professionals related to the luxury brands industry, fashion, marketing, branding and rebranding, social media, PR management, communications crisis.Some early reflections are already emerging. Many deep analysis will be published in the newxt few days. Our aim is to contribute to the understanding of this case mainly by providing to interested people quantitative analysis concerning media and social media impact of this reputation crisis. We will provide explanation and interpretation of the empirical results. We do not pretend to act as specialist in anyone of the mentioned fields of interests, by judging the ad itself. We will try to let the numbers talk for us.
We will show in this post that first evaluation of damages show an extraordinary negative impact of this audacious ad. But we will show that behind the apparent catastrophic marketing movement, we identify a lot of positive elements and benefits for Loewe as a brand (again, based in data analayis, not in personal subjective perceptions).
Before explaining the the source of the controversy that ignited social media community in Spain, we need to present the message as proposed by Loewe itself.
Loewe Collection Oro Message: Loewe, did you say traditional and outdated?
There is currently a lot of discussion about what Loewe was looking for with this per se controversial marketing campaign. If the scandal and strong negative reaction that they have created was a complete unintended mistake or, by contrast, it was perfectly planned.
There is a corporate statement presenting the ad, as text presenting the video in the official page. It is as follows:
The colour Gold is one of Loewe’s signature elements. The characteristic golden beige is directly associated with what is quintessentially Spanish.
Madrid’s special light has been a constant source of inspiration for Loewe, and even today the city is a fascinating melting pot welcoming both young people in pursuit of their dreams, and those just looking to have a good time.
This 2012 collection celebrates this spirit. Discover LOEWE’S NEW GOLDEN AGE and let us take you on a tour fusing Madrid’s majestic landmarks with new trends which captivate the city.
The originality of this video is that is not just models present the luxury brand products, but it is also the models talking about themselves in an apparent unclear direction.
We have the chance that they have provided subtitles in English in the video, and this allows us to capture all the verbal messages channeled in the video.
We present first the statements opening the video. They are a combination of the answers to the questions, ‘What does Loewe mean to you’, and ‘What is your first souvenir about the brand Loewe’. Here, all the statements:
My personal reaction is that the company is providing little space for interpreation, as the opening statements don’t suffer from ambiguity.
We are confronted from the very beginning with a shocking and provocative message. While the models praise some brand values that are positive, like ‘class’, ‘leather’, ‘I love it’, they directly attack and tarnish Loewe reputation, labelling as an old fashion brand, traditional, which is well suited just for old ladies, really old ladies (‘my great grandmother’s coat’!). We find a luxury brand turning into derision itself.
The amazing thing is that this message it told, s oximoron, by young models wearing and showing their bags. Those Loewe products are part of their lives as young fashion victims. They represent different fashion styles, some of them marginal. This introductory scene of the story is closed by the brand logo, showing alternately its origins (1846) and current times (2012).
This introduction provides the hermeneutics of the whole story and message proposed by this marketing campaign. I really do not see other leading messages behind the ad. Loewe is announcing that the new Loewe Madrid 2012 brand is born. Loewe maintains its roots and core values of elegance, quality, luxury and leather that pertain to Loewe Madrid 1846. This is still Spanish fashion style, Loewe Madrid. But Loewe is no more (or no only) my mother’s luxury brand. From now on, this is also the luxury brand for active people under 40 loving trends, with character, ambition and personality.
This is what I read from the opening section of the ad.
The video continues as an apparently typical fashion production, by a collection of moments and images of the young models posing with the Oro Collection bags. As said, the modification from a typical fashion script, is that the video is dotted by ‘spontaneous’ personal reflections about life by models. This is where all the controversy comes from. Marketing director has chosen ‘naive’ statements about their vision of things that by its content have launched the debate about this Loewe campaign. As we will show later, the vast majority of the reactions about what the young models say is negative, showing repulse, disgust, outragement or sense of the ridicolous.
In fact, all the controversy has been completely centered on how stupid the comments by models were, and if they represented or not young people in Spain, or even if it tarnishes the image of Spain.
Now, you can check the content of the video, and judge by yourself if your reaction to it is negative or not.
We pick a sample of images and candid statements by models
Many people commenting and attacking the marketing proposal accuse Loewe of being incredible stupid for not being aware of how stupid the selected model comments are. According to many, these young people reflect vacuity, immaturity, lack of intelligence and good taste, an extreme and repulsive sense of being ‘pijo’ (something like I-am-so-happy-with-my-wealthy-looking-style-and-way-of-life).
The question arise automatically. Please, do you really think that nobody at Loewe, a luxury brand and management known by its traditional and conservative style, were aware that these statements would provoke strong reactions of disapproval?
So, it is impossible to deny that one of the complementary goals of the design of their campaign was to create a very negative shock among many viewers disliking high class and luxury products, the ostentation approach from wealthy people or the adverse reaction provocked by bland and flawed remarks.
Select, for each one of the following cases: Option A: Loewe pursued a traditional ad wanting to show their bags following their well known values of tradition, ellegance, stilysh and Spanish. Option B: Loewe has chosen a strong rebranding strategy towards trendy luxury brands; they need that people beyond loyal customers learn and believe that Loewe is no anymore an old fashioned and conservative and traditional luxury brand.
Greeting, not with the free hand, but with the bag
Young people saying banalities about ageing.
A modern looking model making naive statements about loving.
A punky model using a deeply outdated expression.
Using the bag as a hat.
Covadonga O’Shea, President of ISEM Fashion Business School of Universidad de Navarra commented that some people are naturally gifted to dress elegantly. Those not having this talent can exploit extravagance. Both elegance and extravagance are positive values in the fashion industry.
My understaning is that Loewe has chosen the strategy of extravagance as tool for presenting and marketing the new brand promise. All the content of the video is packed of contradictions and paradoxes designed to create reaction. Reaction of opposition for the vast majority. Extravagance has also the virtue to create reaction of interest and attraction for a minority praising extravagance and all its connected values. If you are comfortable by fashion proposals based in extravagance, you do not care about what other people think about your choices.
Look at the defintions of extravagant by the Merriam-Webster dictionary, to check if they fit with the content and philisophy of the ad:
Why would a renowned and very classical luxury brand deliberately choose a marketing strategy that provokes necessarily strong reactions, expecting to create adverse reaction from the vast majority of viewers an even from their own natural public? There is only one answer (if we exclude this Option A that all this happened by an horrendous mistake based on misknowledge of human being behaviour from marketing professionals): they were directly looking for creating a controversy as necessary means and channel to reach the new circles outside the traditional customers and lovers of Loewe brand.
Loewe took the bet to create a brand crisis in order to ensure that the inception of the new brand they were proposing reached its new public, still unaware of Loewe as brand for top-of-mind choices.
Creating a brand reputation crisis is a risky game, an extremely risky one. You know when, why and how a crisis erupts, but you never know how will it finish and how beneficial or damaging would be the effects.
I am persuaded that Loewe assumed and consciously launched a brand crisis. Did they evaluate correctly the extent of it and its actual direction?
The goal of this post is to provide some quantitative analysis of the impact of this campaign. The profile and mission of our blog is to provide measurement based in media and social media analysis. We try to proof that measuring the available information is an extremely powerful tool for understanding crisis and eventually provide useful tools for managing brand reputation.
Measuring the extent of the negative reaction to Loewe’s video.
As anticipated, Loewe provoked a social media turmoil that captured attention and lasted the whole day. Right now we are in the ending direct waves of the controversy, as it is still a hot topic in social media. We will provide later measurement in terms of quantity and visibility of the campaign. But before, we present information concerning how negatively this ad has been received.
The amazing thing of a social media driven crisis is that you have direct access to all the relevant information, live, minute by minute. This availability of information is a blessing for corporate reputation managers and for marketing and branding teams. Identification and measurement of the impact and stakeholders reaction of events outside the social media world is much more complicated, expensive and less reliable.
Teams at Loewe were perfectly aware that they were about to launch a social media bomb. They should also have designed the protocol to monitor it and plan what to do in the different possible scenarios.
What happened in practice is that soon was clear that the overwhelming reaction of people watching the video was negative. Everyone has this direct information as Youtube viewers reaction is directly and publicy available, through the like/dislike voting, plus the content analysis of comments posted by registered viewers.
We have monitored the evolution of positive-negative ratings since the inception of the crisis, when just 40 votes were sent, by 10am 14 March 2012. The evolution of this index is shown in the figure below. The share of negative votes was 75%. Soon the share of negative rates increased to almost 90% of all votes.
Were artistic director and marketing team laughing observing this results, as outraged reaction by viewers was needed to create viral development? Probably not. Too much is too much, and people at Loewe wer surely surprised by the extent of the negative reactions. Soon, and emergency measure (planned or not) was activated. Loewe decided to disable the comments in the video from their own corporate Youtube channel. This was before 10h30 am, when there were just 24 comments. If you check this information in Youtube, you will observe that the counting is stopped at that number.
The problem was that there existed another video uploaded from an external source that, of course, did not block the comments option. The flow of negative comments continued during of the reputation crisis, nourrishing the viral effect and the negative mood against Loewe proposal.
The share of negative ratings reached a peak of 95.2% by 7pm. It has decreased somehow since then, but one day after it still reach 94.3% negative ratings. This result is truly extraordinary. Such an unanimity is completely unusual. There are almost 100% of negative votes for misleading Youtube videos driving traffic with fake titles not corresponding with actual content. But it is hard to find a similar degree of negative reaction from videos with content intentionally provided by corporations or artists. Consider for instance that the infamous video with the song ‘Friday‘ by Rebecca Black reaches a negative share of 80.6% (It is true that the initial version had a highest negative ratio, but has been withdrawn. The popular but critizised song by Justin Bieber, ‘Baby‘, counts with 67.6% negative votes. There is a video from another of these promoted startlettes that approached to Loewe’s score: ‘O.M.G.’, by Jena Rose, with 92.6%.
Negative consensus against Loewe publicity proposal was not a matter of manipulation by a given group (trolls). Negative ratings are similar and consistent in all videos uploaded showing the ad. They came from an open source, as Twitter was the channel el viral diffusion of the video: all people for and angainst the video had free access to react.
Another complementary information is gathered thanks to teh fact that LOEWE has upload individual videos foe each one of the models of the marketing campaign. In their videos, they talk and explain their views… an they continue to show the LOEWE bags. These additional videos provide a very useful information. We can check the reaction against each one of them. Like this it is possibel to identify if the massive negative reception of the campaign is due to the role of a single disgusting model, or is rather an refusal to all the artistic concept.
Again, the results emerging from the figure below are revealing. This is not an opposition against a single model, its a strong disapproval to all aspects of the ad. All videos receive a negative rating share above 90%, with the exception of Martín Rivas video. Martín Rivas is a young actor appearing in TV series well appreciated by many young people (‘El Internado’). This is rather a global failure in terms of public opinion acceptance. The videos are all available at Loewe official Youtube channel.
This means a brand reputation crisis, by all standards. Even if marketing responsibles were not fully aware of how exceptional was the negative reaction to the video, they would surely be somehow nervous about the evolution of the events. A bet is always a bet.
Things did not run extactly as marketing team expected. We have a clear indirect proof. LOEWE upload a new video in its official Youtube channel in the afternoon. It was ‘Loewe AIRE Sensual Spot’. It announced a new parfum. The style of this ad was again rooted in classical elegance, with a dancer, in a black and white production. Launching this ad in the midst of a tourmoil showing a different marketing profile had little sense. The launching of the video was planned well before. It was withdrawn by the company just few hours ago, after a couple of dozens of views. The company attention was placed otherwise. (UPDATE 16 March: The video is back, two days later. Now it is just ‘AIRE Loewe Spot‘. Another lab test for measuring the impact of new LOEWE brand perception in the valoration of new ads and products).
We have the context and the global perception of the crisis. Next step that we propose is to provide elements to evaluate how intense was the crisis measured by social media impact.
Viral Diffusion Process: Measuring the Evolution of Video Views
This crisis was created by Loewe using social media tools. We count with the means to track and monitor the evolution of this crisis inside the main open social media spheres.
An event affected by a viral diffusion process is driven simultaneously by the complementary impact of different social media sources. In order to facilitate the presentation of the results, we will show the impact of this crisis separatedly in each social media platform.
We show first the impact experienced in the platform that acted as the primary source, that is YouTube. The video and its content is the required step that all people should experience before interacting and becoming another activating agent of this crisis.
We present in the following figure the evolution of the number of views of the ‘Loewe Oro Collection 2012′ video, in an hourly base. These numbers include the views of the two main videos used to watch the controversial ad. We do not include here the collateral videos proposed by Loewe. We do not include neither the parodies that emerged already in the afternoon of 14 March 2012. We will come back later commenting the role of these parodies.
The results shown in the graph indicate that number of views exploded soon, by 11am. During all afternoon number of views oscillated between 15.000 and 35.000 per hour. Massive attention decreased simply because entering into late night hours. Today there was still a sustained interest in vieweing the controversial video, but in a rather steady stage, between 5.000 and 15.000 visits per hour. The processus of sustained increase of interest was reached yesterday in the evening. But our results show that this is not a one day event: amount of visits today were far away from being marginal in comparison with the previous day. This means that the video will receive substantial addition of views in the incoming days.
We present in the next figure the evolution of total Youtube video views, based in the data presented in the previous figure.
The infamous ad reached the 100.000 views mark by 2pm; 250.000 by 9pm. It closed the first crisis day with 350.000 visits. One day after, it was broken the one half million views barrier.
These are fabolous numbers. We have shown before that each one of these visits meant basically a negative reaction against the content of the ad proposed by Loewe. The figure itself is impressive. But it is useful to provide elements of comparison to help to measure the extent of the reputation crisis.
How serious are 500.000 video views with negative reviews for Loewe brand equity in Youtube?
Half a million video views in a couple of days is something impressive. But more information is needed in order to assess the impact of this controversial campaign in Loewe global brand perception.
We count with available means to provide perspective. It consists in comparing this value with current presence of brand Loewe in Youtube.
We analyse first the impact of the last video in comparison with all other videos upload by Loewe. Loewe counts with its official corporate channel. The channel was created in May 2010. Since then Loewe has upload 72 videos. To evaluate the imapct of the new advertising campaign, we include only the controversial videos inside the official channel. As explained, it includes the main one plus nino other complementary videos presenting the models.
The figure below shows total number of views in Loewe official channel before and three days after the new marketing campaign. As it can be appreciated, total views have jumped from 121.000 views to almost 600.000 two days after (and counting). The channel has multiplied its size almost by five.
This huge impact has also an effect in terms of the brand profile of the company, at least in the short term. The explosive marketing campaign referred exclusively to bags, the Oro Collection 2012. We show in the two figures below the composition of brand profile of Loewe in Youtube, based in video content, before and after the current campaign.
Before the Oro 2012 ad, the main content associated to Loewe was parfums, due to the popular ad by Spanish matador Cayetano Rivera. Bags represented 15% of the content vwatched in Youtube official channel. Right now, in the aftermath of the current crisis, bags represent 82% of all views. This a strong brand product recomposition in the short term. Time will say if the other components grow again to reach precrisis levels.
Previous figures show the massive impact of the current crisis in the portfolio of watched videos from the official channel. They all refer to visits. We have also shown before that reactions to new videos were unanimously negative. We can then also measure the impact of the controversy on the global perception of content videos provided by Loewe to costumers and interested people.
The information contained in the following two figures are revealing. We show the share of positive-negative rating to all videos upload in the official Loewe channel before and after the viral impact of the new collection. The transformation of Loewe profile as brand in Youtube is dramatic. Before the new ad, Loewe enjoyed from a 90.6% of positive ratings in all their existing videos posted since May 2010. Three days later, the share of positive ratings drops to 12.6%, due to the massive weight of new launched videos. Yes, we labelled it as devastating ad, and it is so, indeed.
This is not all the Youtube story, as we have just showed the impact of the new ad in the Loewe portfolio from the official channel. There are also all other videos about Loewe upload by third persons and companies. There are many industries for which brand perception is created and evolves by its visual image. This refers to both photos about the brand and videos where the brand is protagonist. Having a strong and dynamic official Youtube channel is a basic branding strategy (not only social media strategy, by really global corporate strategy). If wisely used, the official channel is a tool that the company has to influence brand perception among customers and viewers. Youtube is ultimately the result of Youtube users’ preferences and choices. But the corporations count with the tool of the official channel as mechanism to lead or at least to contribute to the storyline of the brand. Official channel provides some relevant privileges. It allow the company to lanch the videos about products and services, or brand values that they want to promote. They could do it also by diffusiong content outside their channel. But the corporate channel allows you to have some control of the message: they provide an extremely rich information about the reaction of viewers, information valuable for deciding which videos should be promoted in the different online and offline platforms; the company can disable comments if they turn against the interests of the company; it can also simply delete a video if it is not running according to expectations. We have seen that Loewe has used two of these privileges ub the midst of the viral turmoil.
We present now the analysis of the impact of the crisis in the overal brand presence of Loewe in Youtube.
According to our analysis, before the crisis, Loewe controlled some 10% of the content available in Youtube, as shown in the figure below.
As a term of comparison, even if it refers to a completely issue, we find that videos from official channel of political parties in Spain had a marginal role in comparison with total views of videos in Youtube upload by other sources. You can access here the post about social media and general elections in Spain, 20 November 2011..
As for the composition of the content present in Youtube about brand Loewe, we find that the brand visibility is driven by Loewe parfums (85% of all Youtube views). Comparing with the structure of content in official Loewe channel we find that videos about parfums conquer the brand, videos presenting Loewe collections (Catwalk) mantain visibility, while the presence of product and profile ‘Bags’ and ‘Leather’ decrease to marginal size. Loewe in Youtube is dominated by the success of the collection of videos ‘Quizas, quizás, quizás’ about parfum.
As for brand reputation in Youtube, Loewe enjoyed a positive rating of 95.1% votes. This excellent rating is better that the one reached by Loewe official channel videos (90.6%)
Then came the ad, the viral diffusion and the extremely negative viewers’ reaction. Let’s see how the picture has been modified for Loewe as a brand in Youtube, three days after the crisis erupted.
In pure quantitative terms, the reputation crisis has doubled the size of Loewe as a brand in Youtube, as in just three days all existing videos about Loewe have exploded from 1.2 million views to 2.53 million. Consider also that the viral diffusion is not yet dead, and final impact of this add will represent many additional views. It is unquestionable that this video supposed a major milestone in Loewe secular history.
Now after the crisis, the relevance of the official Loewe channel has increased, as it controls now 19% of all videos in Youtube.
As we did with the official channel analysis, we can measure the impact of the ad in the composition of the Loewe portfolio of videos in Youtube, by content. There is a revolution. The weight of parfum related videos decrease to 37%, catwalk moves from 8% to 3%. The new size of Loewe’s bags in brand perception increases to 41% of all videos, compared to the previous 2%.
And a new disgusting content emerges after the crisis. Now Loewe is associated to the videos much feared and hated by corporations: spoofs and parodies using your brand as core element of the script. Now parodies about Loewe ad represent 17% of all content in Youtube. This is self evidently harming for Loewe brand reputation, as it means that in the future people loowing for videos about Loewe will find as leading results some videos making terrible spoofs about the models and products presented by Loewe in the risky ad. Right now, searches about ‘Loewe’ in Youtube propose two parodies among top 5 results.
This huge impact in terms of number of video views has also had a tremendous impact in Loewe brand reputation. Now, only 19.8% of viewers’ ratings are positive. We have counted positive voting on Loewe parodies as negative votes.
We analized recently in this post the case of another reputation crisis created and developed in Youtube. This was the crisis suffered by FedEx. In that case, the crisis was not provoked by the company intentionally. It was generated by the misbehaviour of a FedEx worker delivering (throwing literally) a computer monitor over a fence. In our social media reputation analysis, we found that the crisis had a double negative effect: a direct one linked to the number of viewers of the scandalous video, plus another one induced, due to the fact that all other videos with similar workers misbehaviour previously existing increased substantially. You can check here the analysis. In contrast, we do not observe a contagion effect in this Loewe case: views of Loewe videos and negative ratings are restricted to Oro Collection 2012, and do not affect in any sens all other existing videos.
We have shown in this post the source of the reputation crisis and the measurement of its most direct effect in terms of ad video viewings. We have also analyzed how this marketing campaign has completely modified the band profile of Loewe in Youtube.
Our aim now is to show the dynamics of the viral diffusion crisis through a time-series analysis and a content analysis. We present our analysis and results in a new separate post in this blog.
Telepizza is a Spanish based food company, specialized in delivery and takeaway service.
Telepizza was founded in Spain in 1988. It opens its first store in Madrid. Pioneers into the home delivery pizza segment in Spain. In 1996 goes public through an IPO. In 2006 Telepizza is no longer public and becomes part of private capital
According to company source, ‘Telepizza is the leader in delivery service and takeaway in Spain, Portugal, Andorra, Chile, Poland and Central America.’ In 1999 it had a market share of 62% in the Spanish pizzas market.
In 2010 Telepizza has more than 1.183 stores worldwide.
As many other fast food and delivery and take away services, Telepizza is very actively in the marketing strategy based in promotions. Basically all commercials are based in presenting promotions. See for instance Teleppiza’s Youtube Channel videos. A similar appraoch is ised in Facebook Telepizza Wall. As well as for main web site. Twitter is used rather as a channel to interact with costumers.
To ensure that promotions reach target audience, they require aggressive messages to attract attention, pushing to surprise, amusement or curiosity.
An unusual promotion for an unusual day
By mid February Telepizza announced an audacious new promotion: as 29 February 2012 is an unique day happening every four years, so it will be for Telepizza customers. This day they can buy as individual size many pizzas as they want for one euro each (1.3 US$). The normal price without promotions is 11.95 euros.
Telepizza has used in other cases to link a promotion to a specific day, like St. Valentine. Some call this marketing approach as Dayketing.
The promotion was so attractive for Telepizza’s customers that it could create a powerful call effect. My understanding is that in this occasion the message itself was the marketing tool chosen to become the channel to widespread the promotion to new circles. A promotion to create a reaction powerful enough to escape from the circle of traditional Telepizza customers and reach other costumers currently preferring other fast food brands. In other words, the cost of the subsidised pizzas is the price of an indirect ad campaign nourished and developed by customers benefiting from this unusual promotion.
The key element for transforming the promotion into induced publicity is paradoxically to renounce to the core business model. Being basically a home delivery and take away food service, the promotion was restricted only to those buying the products in the company restaurants. This restricted the options for consumers to on restaurant consumption and take away commands. Obliging costumers to go to the stores overcrowding the restaurants or showing to the public the pizza boxes if taken away was the obliged choice to ensure and multiply the visibility of the promotion and Telepizza products. If successful, this marketing campaign should show everyone that there is a lot of Telepizza lovers.
Why are we covering this marketing case in our blog about crisis, media and reputation?
Brand promotions as crisis.
Because when you create an ad campaign designed in purpose to become a viral event, you control as a company the starting point of the storyline, but if you succeed and you marketing idea become a viral phenomenon, the development of the storyline escape completely from the hands of the company. It is taken by social media actors, and public mood may stay attached and friendly to the company, or turn aggressively against the interest of the company.
We have plenty of examples of viral ad campaign launched by companies that turned completely wrong. One recent case that will become an epitome of branding suicide is the Twitter hashtag launched by McDonald’s, #MCDStories, to ask customers to share their best experiences. The hashtag was posted by McDonalds Twitter account by 18 January 2012. It turned quickly as a weapon used to create bloody tweets reproducing and increasing the impact of usual attacks against McDonald’s practices and products (health concerns, labor conditions, quality of the products, preference for rival brands). Twitter is a perfect platform for turning into derision, mockery and subtle or gruesome attacks any kind of otherwise serious items. McDonald’s pulled the campaign within two hours, but the hashtag developed and grew by its own eventually becoming a TT. You know how these kind of risky bets start, but you do not know at all how will they finish, as you do not control the final message. As Forbes Kashmir Hill journalist invented, a hashtag becomes for you a bashtag.
Within two hours, McDonalds pulled #McDStories, saying that the effort “did not go as planned.”
This was a hard price learning experience. “As Twitter continues to evolve its platform and engagement opportunities, we’re learning from our experiences,” Rick Wion, McDonald’s social media director, said in a statement today.
Going back to our Telepizza case, launching a potential viral marketing ad was not without risks. It contained some spicy ingredients. Risk of negative comments could come from:
Those that consider that all kinds of fast food proposals create unhealthy consumption behavior.
Those that consider that Telepizza, like other brand sin the food delivery sector offer low salaries and poor working conditions.
People loving fast food consumption but who prefer rival brands.
People considering that Telepizza offers poor quality products or poor quality delivering services
All these existed, as according to some sources Telepizza does not enjoy an excellent reputation. Even if numbers are not representative, you can check here the results from an Android app about customers’ satisfaction.
The specific profile of the promotion could create tailored negative comments and reactions:
It could reinforce the perception that products are of bad quality, and this is why they are offering them at that price.
In the context of the current severe economic crisis inSpain, reduced promotion prices could lead people to conclude that Telepizza is a greedy company getting extraordinary margins with normal times price of products.
The promotion could create the perception that Telepizza is oriented to poor working class customers and low income. This could create a bad segmentation of costumers, pulling out some people that do not want to be associated to a low income brand.
Of the conditions of the promotion are clearly labelled, faked consumers tend to overreact negatively crying against what they consider a misleading marketing operation.
Some other negative reactions could emerge as a result of the eventual success of the promotion in attracting a lot of pizza lovers.
Some locals could enter into shortage of products and could stop offering the promoted pizzas before 12pm, creating anger among customers.
If the promotion attract a lot of people, it could generate crowd agglomerations and long waiting queues
Tracking the impact of the 29 February events
If the indirect campaign has to run as ideally expected, the mechanisms for amplifying the existence of the extraordinary promotion should come all from social media channels. Main channels for a day-on-day social media viral diffusion are Facebook, Tuenti (a Spanish social media networks similar to Facebook, strongly oriented to young people and teenagers), Twitter and smartphones.
There is no direct way to track smartphone and Tuenti traffic. As for Telepizza, some analysis may be reached by using reactions and comments posted in Telepizza Facebook page. They are not representative of reaction inside Facebook community. The restriction imposed to the access of the content posted by Facebook users limits the utility of this channel for social media impact analysis.
By contrast, the very nature of Twitter, rooted on the principle of universal access to all content published inside the network makes it an excellent source for social media impact analysis.
We have monitored systematically reaction in Twitter community concerning Telepizza by 29 February and before and after this day. Based in the design of our data set and with the information collected, we propose in this post a brand perception impact analysis.
29 February 2012 at Telepizza Restaurants. Telepizza Social Media Diffusion Strategy
Stage 1: until lunch time.
Stores open al 11am. The dynamics of the opening hours are crucial for defining the momentum of the marketing operation. Approaching to lunch time (that in ‘Spainis different’ means 1:30pm to 4pm, even in working days) should create already the call effect coming from those already taking advantage of the promotion. It required that accumulation of people in Telepizza stores should be noticeable, and happy consumers share it to friend and social media community.
Checking out Telepizza Spainofficial Twitter account (@telepizza_es), we find that morning tweets were used to explain to costumers which were the affiliated stores (as a franchise system, not all stores accepted to apply the promotion), and which products were affected by the promotion.
They reinforced the message ‘take as many pizzas as you want’
Telepizza was also directly promoting the ‘share you experience’ movement by asking people buying a lot of pizzas to upload their photos.
Creating a visible crowd effect was also a crucial factor in the amplification impact of the promotion. Again, photos showing crows and agglomerations were asked to be upload by Telepizza Twitter. This was 12:04 pm
They promoted directly first photos showing people queuing in a Telepizza store. This was 2:30 pm
Then came the photos by customers chosen by Telepizza. here they are.
As crowds around Telepizza restaurants started to appear in different places by mid day, people observing the spectacle shared spontaneously photos in Twitter. We present here some examples of captions published before 3pm.
Points in common of photos published by Twitter users is that almost all refer to people queuing for having their pizzas. Some of them comment that these images are creating an excellent publicity to Telepizza promotion. In general, content is positive and do not show aggressive negative attacks.
As this is an open an public information, we show also in the last caption the profile of the Twitter user, as it gives the information of number of followers each person has. Twitter users become the prescriptors of Telepizza promotion and contribute to make viral its diffusion.
In fact, some to Twitter users publishing pics about people queuing at Telepizza stores aknowledge that they are sustaining the ad campaign, like the following two cases:
The way was paved to create an auto generated explosion of the diffusion of the effect.
Stage 2: during the afternoon. Becoming a Twitter TT
Reactions, comments and sharing developed during the afternoon through the different social media platforms.
And then, Telepizza became a Twitter trending topic (TT). This is a capture by 5pm. This means that pizzas for 1 euro by Telepizza becomes a subject to talk about for open public not directly related with the promotion (pizza consumers, witness of the crowds in front of the stores).
As explained before, it is at this very moment that the Telepizza brand enters into the crisis area. The company does not control or at least direction the message anymore. It pertains now to the Twitter community, and the evolution of the mood depend entirely on how ‘twitterstars’, ‘Twitter directioners’ and common users react to this new topic.
We have already identified which were the main risky items with the power to transform this promotion into a negative brand reputation crisis.
As commented in here and in previous post, Twitter is the natural place for mockery and ironical messages. With the ongoing evolution of events, reflected in uploaded pics, Twitter users had additional ammunition to refer and joke about the promotion: the growing long queues by people wishing to by pizzas for one euro each.
As we will show later in a quantitative analysis, messages related with the crowds longing for cheap pizzas eventually became the preferred component of the storyline linked to Telepizza promotion. There are some examples of imagination and mockery like this one tweet. ‘I am in the queue of a Telepizza… HELP!’ The author, @LoQueTuPiensas, has more than 5000 followers, and the tweet was retweeted by many.
Telepizza stayed as TT for almost all the rest of the day. For instance, by 7pm the TT became more explicitly linked to the promotion ‘Telepizza a1’
How did the visual content evolve after Telepizza became TT?
It maintained basically the same profile showed in the morning. Pics were mainly made by people queuing or witnessing the crowds. There were also pictures of people proud to show their collection of pizzas. Some examples below for pictures after 5 pm. Some of the pictures are a direct message of a successful an unusual popular phenomenon.
The queues and Twitter comments and messages continued well after the end of the promotion.
Measuring the impact of the promotion in Twitter
First relevant measurement is traffic received by Telepizza during all 29 February in terms of tweets explicitly mentioning the brand.
Normally numbers in absolute terms are meaningless. Relevant figures emerge when you provide terms of comparison to absolute values.
A fist way to approach the impact of the indirect publicity made for Telepizza by the Twitter community is to assess how much it represents in comparison to an average business day. We take as reference the tweets per day generated between 22 and 27 February 2012 by Telepizza. We give to this figure a value 1.
Our analysis shows that Twitter traffic was some 63 times higher than in a normal day for Telepizza. Abnormal high traffic started already the day before, as it reached a value 3.2. This shows the induced impact of the ads and commercials directly created 8and paid) by Telepizza announcing the innovative promotion. The day after was also a day of extraordinary traffic (due also to late night tweets just after the expiration of the promotion). Twitter traffic the day after, in 1st March was 7.9.
So, we find that Telepizza created a number of tweets equivalent to two months of normal traffic, in one single day. This result is for us extremely relevant. Not only because of shows the size of the impact of the promotion and the consequences of becoming a TT. It also implies that for many Twitter users that are no usual customers, brand perception about Telepizza quality of the product and attractiveness of the consumption experience would be highly influenced by the content of the messages channelled through twitter during 29 February. This is what we call shock branding. Content analysis is crucial. Before analysing content, we provide some additional elements of evidence about the impact of the marketing campaign.
We provide a second way to gauge how relevant is the increase of mentions received by Telepizza thanks to its innovative promotion.
We have show in the following figure a ranking of brand visibility in Twitter of competitors of Telepizza acting in the fast food sector. We have taken measures of presence in Twitter message between 25 February and 3 March 2012, for tweets written in Spanish. We have given a value equal to 1 to the average of all brands in our list.
The figure shows us that during the period covered by our analysis, the main reference is the beberage brand Coca-Cola, with 3.8 points. It is follower by fast food burger McDonalds, with 2.8 points.Third place, at a substantial distance, we find Pepsi, with 1.3 points. It is followed by Kentucky Fried Chicken (1.06 points) and then VIPS (0.9). VIPS is a Spanish based chain of restaurants. Telepizza takes the eighth place, with 0.5 points. This corresponds to the natural position of Telepizza, and has been obtained by measuring tweets reveived excluding 28, 29 Feb and 1st March, as they do not correspond to normal business days.
We can appreciate the impact in brand visibility for Telepizza thanks to its audacious promotion in the next figure.
When we include the impact of tweets linked to pizzas for one euro promotion, Telepizza brand visibility rockets to a total 5.35 points. Thus all traffic received during this special week becomes Telepizza as the leading reference in of the fast food business sector in the Spanish speaking area, above giants Coca-Cola and McDonalds.
So, in terms of brand visibility, we can judge the marketing initiative as a tremendous success.
We can take a look on the dynamics of Telepizza visibility in Twitter during the day of the extraordinary promotion. It is shown in the following figure. We give a value 1 to the hourly average of tweets during day 29 February. The restaurnts opened at 11 am. The impact was not really noticeable since 1pm. Spain is a country of late eating schedule. Lunch time is between 1h30 to 4pm in week days, dinner time is around 9-10pm. Twitter traffic reached a first peak of 1.7 around 4pm. Lunch time attendance and initial crowds and queuing was the motor of tweets. It allowed Telepizza to become a Twitter trending topic (TT) in Spain, as we have shown, around that time. This created the perfect preparation of social media impact for dinner time, which is much more important for fast food and home delivery restaurants during week days. Number of tweets increased and exploded after 7pm. They reached their day maximum (and probably their history maximum) by 9pm, with a value of 5.1. Number of tweets were still extraordinarily high in the following hours, and ceased after 3am.
Next step is to assess to which extent quantity was connected to quality, and if this huge but concentrated increate of social media attention portrayed positive messages about the brand, and has strengthen or al least preserved the brand perception of the company.
The role of Newspapers
Before showing the profile of Twitter message, we present the results concerning the impct of this promotion in newspapers. We ahve chosen to monitor their online edition, as we wanted to track their reaction to the impact of crowds around Telepizza stores as possible news story. The figure below presents the number of news by day during February 2012 and since 6 March 2012.
The average number of news per day is 2.51. If we exclude the news about the 29 February promotion, the daily average is 0.85. This is a low visibility in newspapers. This low profile is explained by the fact that Telepizza is currently a private non traded company.
We have distinguished news in three groups: news about 29 February promotion, news about other promotions, and news not related with promotions. News about promotions (including pizzas for one euro promotion) represent 84% of all news about Telepizza during the period under analysis.
The special promotion for 29 February day was relayed by many newspapers, as it was published in 32 newspapers, de day before. This is 53% of all news in February. Almost all news were based in the content of the press release launched by Telepizza. Content was focused in the expected increase of sales (700%) estimated by the company thanks to the promotion.
The promotion was present in another 8 news during the promotion day. They were all of them news based in the Telepizza press release, acting as lagged media. There was no news at all published during the day commenting the pehnomenon of long queues around Telepizza restaurants. This is not a surprising result. But this is providing us a very relevant piece of information: the diffusion of the promotion, once it started, was not supported through traditional media: it was due entirely to the effect and impact of social media reaction.
Again, we conclude that this story was completely ‘told’ through social media channels.
Twitter Content Analysis: Crowds and Queuing
First reference that we propose concerning Twitter messages content analysis is to check the extent of the ‘look! there are crowds out there waiting for buying pizzas’ effect.
We have monitored the tweets explicitly reffering to crowds and queuing when posting a tweet about Telepizza. Our results, presented in the figure below, show that this topic played a crucial role in the storyline of how the Telepizza promotion was perceived by Twitter users.
Mentions to crowds appear as soon as the restaurants opened at 11am. At 2pm, the share of tweets talking about crowds represented 53.1% of all tweets about Telepizza. Overlapping this figure with the previous one, we see that by 2pm the number of tweets grew substantially. After this moment, share of mentions about crowds oscillated between 20% and 30%. This means that during the two peaks, at 4pm and at 9pm, there were a substantial proportion of them talking about the impressive crowds of people waiting for having their pizzas. This is a first element concerning the content profile of tweets about Telepizza: crowds around Telepizza restaurants was the main single topic of the storyline.
Now we enter into the territory of brand reputation analysis. We have shown in previous posts some tools developped by our Media, Reputations and Intangible center. Now we show new proposals on how to track and measure the impact of events and crisis in brand perception in social media.
First, we present a global measure of the share of tweets with positive-negative content. Reaching a value 100 means that all tweets with positive-negative profile are in fact positive towards the brand. If it reaches value 0, it means that all possible positive-negative tweets are in fact attacking or showing a negative perception about the brand.
Our analysis show that satisfaction index reached a 91 points value the days before the promotion emerged as topic. 27 and 28 February tweets were already driven by the approaching promotion day. The weight of negative content tweets raised, as satisfaction index dropped to 76 points. During the promotion day, that experienced this unpredecented explosion of tweets, the satisfaction ration was established around 80 points. Satisfaction ration dropped a little bit in the aftermath to 75 points. During the following days, where new content emerged, not related with the impact of the astonishing promotion, satisfaction ratio recovered previous values, to 90 points.
So, first results suggest that the massive social media impact was associated in the short term with a deterioration of the brand perception inside the Twitter community.
My personal view is that this is not telling us by itself that the audacious social media marketing strategy went wrong also in this case, and promoted hashatag become a treasonous bashtag. Consider rather that this promotion generated a Twitter traffic some 60 times higher than normal day, and that this massive impact was accompaigned with a satisfaction ratio of 80. This means that for every tweet with a negative content about Telepizza, its quality, the ridicoulous queues and so, there were some other four tweets with a positive content about this brand. If we consider that one of the constituent elements of Twitter is mockery, attacks to rivals and creative comments, Telepizza phenomenon creating crowds of people waiting for their pizzas did not receive a bad rating by Twitter community. Furthermore, it has to be taken into account that when you become a TT you are reaching new observers from outside the circle or people directly interested by the promotion or the event in the streets. You reach new people completely or partially unconnected with the story, who can react in very different ways.
All in all, we consider that these figures tell us that Telepizza survived quite well the risk of a global social media exposure in Spain, and bran perception was basically preserved. It also reveals that the brand did not receive a direct increase of praise and brand reputation. But this promotion contributed to build brand equity based in a substantial short lived increase of brand visibility. It was financed by the diminution of income per pizza, but this was the prize to pay for creating crowds around Telepizza restaurants as mechanism for free social media viral diffusion.
Next step is to consider what did Twitter used like when posting a tweet about Telepizza with positive content. We have also the information about the structure of negative comments, but we do not include the results in this post to control the extension.
In normal times, positive comments about a brand is mostly driven by product or service costumers having a direct and personal experience. There are also a portion of positive comments that arise from brand lovers reaction to a news about the brand.
Telepizza created a social media event, so it attracted in Twitter communication a lot of people not directly related with the consumption (and queuing) experience, nor the experience of acting as witness of the crowds around Telepizza stores. Lokking into the detail of what people find positive when talking about Telepizza provides useful information about the brand perception impact of the promotion for the global public opinion.
We present first the distribution of categories of positive tweets before the impact of the promotion, as represented in the following figure. This refers to tweets between 22 and 28 February. We cannot present here the details of the methodology applied to produce the results presented in this section, as we want to focus our analysis in the presentation of the results. Methodological steps are oriented to academic or professional readers. We find that in 45% of cases they refer to messages showing personal satisfaction experienced by the author of the tweet (‘I’m happy’). The same weight (44%) is given to messages showing that what they are doing, talking about or watching is amusing (‘It’s amusing’). We have 9% of positive tweets directly writting that they like Telepizza brand, products or services (‘I like it’). There are finally a small percentage of tweets (2%) that show surprise, astonishment or admiration (It’s amazing).
What can we say about the structure of positive comments about Telepizza? Nothing special. As we have pointed out many times in this blog, numbers taken alone are normally meaningless in the brand reputation sphere. They become informative and relevant by comparison with other moments in time, or if we comapre them against other brands. We could provide comparison of Telepizza positive brand perception against other fast food brands, but this is not the main aim of this post.
What we can do, is to observe how the structure of positive comments has been affected by the massive social media coverage during the special promotion day. Results are shown in the following figure.
We find that massive social media coverage during day 29 February has been translated into a substantial increase of the share of comments type ‘It’s amusing’, as they share increases from 44% to 69% of all positive comments. This is a clear reflect of the impact produced by people talking about queues in front of Telepizza restaurants. Many of them come from people being there, waiting for ordering their pizzas. They share the moment with friends. Other comments come from people witnessing the spectacle of long lines of people, and react with sympathy. Finally, some other comment all the events from the distance and find them amusing.
Direct positive experience (‘I’m happy’) drops substantially, as it moves from 45% to simply 18% of all positive comments. Clearly, the story is not in enjoying eating the pizzas, but in waiting for eating them. The same occurs for the ‘I like it’ comments.
Finally, we observe an increase of the weight of comments showing admiration, ‘It’s amazing’. It goes from 2% in normal days, to 7%. This is again a direct reflect of the crowds phenomenon induced by the promotion.
Finally, we have the after the promotion positive reactions. They are captured in the following figure.
We observe a retrenchment to normal times profile of positive comments: the share of ‘It’s amusing’ comments is reduced, from 69% to 61% and the ‘I am happy’ increases again, from 18% to 30%. The ‘It’s amazing’ comments disappear and lose the role played during the promotion day. The ‘I like it’ direct experience comments reach again the 9% level.
Of course, further time analysis is required to extract rubust conclusions about the impact of the special promotion both in the share of positive comments and in their inner structure. Our aim was just to show metrics and tools that allow to identify the impact of a relevant event in the brand perception of a brand. Depending on the very nature of each brand (a corporation, an institution, a personality, a star, a country) and on the type of event or crisis suffered, the design of the Twitter analysis should be defined in consequence. Each story requires its own interpretation schemes.
Impact on Visual Brand Perception
There is another way to check the impact of the promotion in Telepizza brand perception. It consists in analysing the influence it has had in the brand image of the company. We talk here about images in strict sense.
There is an indirect way to assess the perceived quality and reputation of a brand, corporation or personality by the systematic analysis of the images chosen by someone to represent a brand. This is brand analysis technique that it is not widely used according to our knowledge.
We have depelopped our own techniques on visual brand perception at MRI Universidad de Navarra. We have shown to the public some of our results in previous studies.
For instance, in this blog we have shown some reputation crisis analysis based in the photos in news articles chosen by journalists to explain a crisis affecting several corporations. We found out that Bank of America was the brand most punished in the collective lawsuit by FHFA against 17 banks.
We applied this technique also to show the negative reputation impact of the false accusations by German authorities against cucumbers produced in Spain of being the source of the E Coli contagion. We have a post about E Coli crisis in this blog. The analysis about the impact on visual perception of Spanish produced vegetables are included in the full report as pdf document.
We apply this technique in the Telepizza case, but using an adapted approach. Our aim is to evaluate to which extent the social media viral success of the marketing promotion and its translation into amazing images of crowds waiting for having their pizza may affect the global visual perception of Telepizza as a brand. News analysis is not relevant in this case, was we have shown before.
The alternative that we propose is to analyse the visual brand perception of Telepizza in internet. All different platforms in internet are currently the main source of contact with a brand (official websites, sites from other companies, online newspapers, blogs, forums, social media connectors like Facebook, Twitter or Youtube). We identify a selection of representative images, and we weight them according to the power and influence of the site showing them. We classify them according to content. We count with the results concerning Telepizza and many other brands.
In this post we will focus our analysis in a single component of the visual brand perception which is of strategic value for the business sector of restauration: images related with consumers experience. Images of people eating the products, seated in the restaurant or waiting for ordering are essential for food brand equity. The ‘we are happy’ images linked to a brand are crucial for creating customers call effect. In a mall, people tend to go to restaurants already full of people instead of chosing those with more free places.
In order to identify the visual brand perception in the ‘having a good time’ vector associated to Telepizza, we have performed an image analysis of the following brandds: McDonalds, Burger King, Kentucky Fried Chicken, Pizza Hut, Domino’s Pizza, and local competitors 100 Montaditos and Pans & Company. As a way to ensure that results are comparable, we have monitored images published in documents written in Spanish.
In the following figure we have a visual representation of the weight of the ‘ having a good time’ vector of Telepizza and its competitors.
According to our results, the fast food brand that currently is more strongly associated to customers eating and drinking is Spanish based 100 Montaditos. Second brand is KFC and third brand is McDonalds.
Telepizza (with red line frame) is the brand that counts with the poorest records in this brand vector, less than one thrid that the average weight taken by its rivals. This is a result that should not be surprising. It is one of the brand perception consequences of the business model chosen by Telepizza. Their objective and strategy is to become the leading reference in home delivery and take away fast food services. Other competitors base their business in restaurant consumption. If main source of income for Telepizza comes from home delivery, consumption becomes a private experience that is not shared by other witnessess outside the inner circle. Telepizza renounces to the brand visibility that is created by seeing other people at fast food restaurants. This is also why Telepizza business model relies so heavily in continuos marketing campaigns based in promotions aiming to create a call effect.
Increasing perception as warm and convivial brand is withour doubt rewarding for Telepizza business. Those brands in the fast food sector being most associated to past good moments become top of mind brands, when a new consumption decision is planned for sharing a new good moment with family, friends and relatives.
This is why we consider that one of the main features of the marketing campaign designed by Telepizza is the creation of new experiences around the ‘we were in one of those waiting two hours for having our pizzas’ or the ‘look this crazy people ready to wait longtime for their pizzas’.
Measuring the impact of this specific commercial decision in brand perception requires the perspective of time. We have proven that the marketing strategy has been a success in creating an unprecedented event, relayed by social media channels. This creates what we call this short term shock branding impact. Only time will tell us if this short but deep association of brand Telepizza to crowds around the restaurantes will keep alive in the future as part of Telepizza brand identity (reinforced in the future with similar movements).
In the menawhile, we can provide some inshights about the short term impact in Telepizza visual perception. We have scrutinized a representative selelection of images upload in all kind of supports in internet during these few last days. We weight again each image by the power and influence of the site publishing it.
We have all the components of the visual brand perception of Telepizza. As before, we present here only thos related with our case. More specifically, we presen here the presence of captions directly linked to the 29 February promotion. We have organized the imto two groups. One for images about crowds and people carrying several pizza boxes, and another one concerning de ad material used by Telepizza to annouonce the promotion.
We present in the following figure the relative presence of 29 February promotion images just after it happened, by 1st of March, and a second measurement just one week after the events, by 6th of March. In order to have terms of comparison, we show the size of images that are associated to ‘having a good time’ before 29 February, and referred to all captions, and not only the recent ones.
Results are self explaining. The share of images showing people eating or waiting for eating pizzas at Telepizza explode. Share of images showing crowds by 1st March multiply by 4 the size of previous images about consumers in Telepizza images. Its weight further increase when considering images uploaded one week after. They represent some 7 times more images than the normal percpetion of Telepizza. The visual short term imapct of the promotion is reinforced by the images referring to the extraordinary prize offer.
The short term image of Telepizza as ‘we are having a good time’ brand is higher than any other competitor, including 100 Montaditos and KFC.
Yesterday, 11 January 2011, #HoyEsBankia became a TT (Twitter trending topic) in Top TT List in Spain during a couple of hours (between 10h and 15h local time). Bankia is a leading bank in Spain. The hashtag HoyEsBankia is a ‘Today Is Bankia’, following a ‘Hoy es …’ twitter culture.
As many other active Twitter users, I wondered what did it mean. So I clicked in, as many active Twitter users, and I realised that all was about an apartment tenant about to be evicted because he became unable to assume the mortgage payments to Bankia. I probably found out as leading tweet the following one, by PAH Madrid, as it is one of the tweets that received most RT (retweets) at that time. (Translation: ‘We are already some 20 people and we wait for you! Yesterday we were able to stop Abdul’s eviction. Today is Luis, father of 8 children. The guilty ones: #hoyEsBankia). PAH Madrid is Plataforma Anti Deshaucio (Platform Against Housing Evcition)
This was a clear ugly case for Bankia corporate reputation. In Spain, housing foreclosures are not solved like in the United States law system, by cancelling the unpaid debt by giving back the property to the bank. The Spanish mortgage system implies that if debt reimbursement is not paid, the bank can ask a judicial housing eviction. The tenant loses the ownership of the property, the bank tries to sell the house in an auction. But the debt is cancelled only after paying back to the bank all the mortgage value, which is not normally covered with the house selling.
In a context of a severe economic crisis in Spain (unemployment rate 22%, youth unemployment rate about 47%) created by the burst of the Spanish housing bubble and the global financial crisis, public opinion is specially sensitive to stories of individual stories of people trapped by the crisis. Furthermore, this present case was specially emotionally, as it referred to a father of 8, as it is mentioned in the selected tweet. All this creates the perfect framework for social media attention.
Being in the spotlight for a housing eviction is never nice for a financial institution. In this present case is even worse, as Bankia is one of the banks that has received public funds in a hidden rescue operation (funds were allowed to Cajas accepting to merge because of bad financial conditions). Finally, Bankia and other rescued financial institutions were suffering from a very recent reputation and communication crisis, as they were forced to publicly show the salaries paid to top executives. Bankia CEO, Rodrigo Rato (former IFM Directo) receives an annual salary of 2,3 million euros.
So, we followed and explored this case, as we where intrigued in knowing first the final outcome of this planned eviction, Bankia PR impact and reaction, and finally how all this story was created. We have chosen this case because it is a 100% Twitter driven crisis. In the vast majority of Twitter viral events and issues reflected as TT, the source comes form the outside, and is originated by traditional media (TV programs, news published normally in online editions) or by other social media channels like YouTube. Twitter virality acts in all these cases as viral diffusion facilitator, but not as crisis creator. In this present case, the reputation crisis is born, developed and closed inside Twitter community. I present in this post what I found and what I have learnt from it.
This analysis has been undertaken by monitoring all existing tweets using the hashtag #HoyEsBankia. We want to present some of the elements of this Twitter driven reputation crisis.
As a reminder, in our blog we never provide a political, social or economic interpretation of the crisis that we analyze as reputation crisis, and we do not take any position or judgement concerning the affected parts. The goal of this blog is to provide new empirical evidence and understanding about the impact and interaction of media in reputation crisis. This information may be relevant for scientist and practitioners. In many cases, the information we provide is also relevant for the people interested in the crisis issue chosen rather than about media analysis. In both cases, we consider that our own personal views about each crisis issue is really not relevant and does not offer any added value to our readers.
1. Selecting a hashtag
In my perception, one of the key features that makes Twitter the perfect tool in the social media arena is that it encompasses exactly the soul of what we call the new Transparency Age. Twitter is not only simplicity, concision, bidirectional and network communication, and openness. Twitter is in all these characteristics also full transparency. The absence of privacy ensures the creation of this neuronal network of content, communication, knowledge that will define the essence of future social media. This is also why we consider Twitter rather than Facebook as the future of social media.
This transparency allows me and anyone inside the Twitter community to explore the network of messages created around any particular issue. Like this, we can found and present here the inception of the HT #HoyEsBankia.
This HT was created by Twitter user @FotogrAccion, by 10 January 2012, at 11pm local time. We present below the initial exchanges around the hashtag.
@FotogrAccion participates in the planning of the new protest in order to stop the judicial eviction of Luis’s apartment, starting by 8am the day after. It consists in a pacific concentration of activists in front of the entrance of Luis home. Journalists are also called, in order to increase the pressure. The goal is to push the bank to renounce or at least postpone to apply the judicial eviction order.
The plan is shared with other activists involved in the protest: @PAH_Madrid, @Torrejon15M and @DRYMadrid. People familiar with social and political situation in Spain know that the associated Twitter account refer to organizations created in the wage of DRY and 15-M protests (DRY=Democracia Real Ya; 15-M= 15-May, the day many protesters decided to stay and camp in Plaza del Sol demanding a revision of the political practices).
In this context, @FotogrAccion, proposes a specific HT for the new protest: #HoyEsBankia. @Torrejon15 suggests an alternative HT (#BankiaVsLuis), but @FotogrAccion gets his/her HT proposal accepted. The new HT is launched, and it will start to be used and disseminated the next morning, when the gathering starts.
We present in the next figure the hourly timeline evolution of tweets and RT using this HT since its inception, up the moment that it becomes a TT in the Spanish List. Nine hours after the HT was launched, by 8am, Jan 11, when the silent protest starts, new tweets are published with the HT, explaining the action and calling for support.
Here comes another of the powerful features of Twitter: it creates particular communities with strong ties inside the global community, with an extraordinary capacity of common communication. Twitter allows to create very strong focussed accounts, that as a consequence maximize the congruence of the network of followers. @FotogrAccion counts with 4.200 followers, @DRYMadrid has 6.150, @Torrejon15M has 830. @PAH_Madrid, the one fully oriented to these anti eviction actions, counts with 2600 followers.
2. Becoming A Trending Topic
As a consequence, when these leaders publish the first messages about the new mission, their tweets are easily reproduced as RT by many other Twitter accounts. There are just 8 tweets between 8 and 9am, but their produce new 50 retweets. In the next hour, there are 38 new tweets containing the HT #HoyEsBankia. These new 28 tweets create another 249 RT. At this moment, #HotEsbankia is a new Trending Topic in Spain.
As we show from a caption, #HoyEsBankia takes the top position in Spain, at 9:57 am local time.
This HT enters in the Top 10 List a little bit earlier. We have identified the first tweet that exults and refers to #HoyEsBankia as national TT. What it is striking is that it happened between 9 and 10 am, just after 68 different tweets, that were retwitted in another 380 tweets.
This result may reflect that Twitter is a rather small community in Spain, at least in term of active users creating new messages. But, like in many other countries, Twitter content is becoming increasingly an influential media channel in Spain, as Twitter TT produces effects outside Twitter community, as they are mentioned as news in traditional media (online and off-line), and concerned people and institutions are obliged to publicly react to issues developed inside Twitter. Whatever the actual size of active people in Twitter, they are the mainstream ‘social media’ thing that corporations, political parties, institutions and personalities observe and fear.
This so ‘cheap’ way to reach a TT status also shows the dynamics of a Twitter Trending Topic. A Top TT is not a widely used term, but a term that experience a dramatic increase of interest among Twitter users. The best way to generate such an increase is to create a brand new term, as @FotogrAccion.
The next step is to try to reach the number one position in the TT list, and stay inside the Top 10 list as long as you can. TT dynamics impose you to keep your virality status in order to your Top TT List status. This requires a constant increase of tweets and RT in comparison with the previous time unit.
Entering into the TT list provide you a new momentum, as your Twitter exposure explode, as it breaks the particular community that created the HT, and reaches the whole Twitter community. Many people will react to a new TT term, and will decide to enter into the new neuronal communication or debate if interested, or at least explore what it talks about, as I did myself.
Even if reaching the TT Top List multiply the visibility of your debate, it does not ensure to stay in the spotlight for long. The key factor is then the quality of the story itself, in terms of attractiveness for Twitter users. We can guess that fighting for avoiding the eviction of an African emigrant father of 8 kids, against the interest of a rescued bank was appealing enough. As we have shown, it quickly reached the top position.
3. Becoming A Reputation Crisis
In the very moment that #HoyEsBankia entered into the Top 10 TT List, the ongoing protest for stopping Luis eviction became a corporate reputation crisis.
Before it reached this critical point, the social activist operation stayed mainly inside the circles of collectivities fighting against housing eviction. We have shown that this initiative started and was developed by Twitter accounts strongly focused in these issues. @PHA_Madrid mission is exactly to block evictions, @DRYMadrid , for ‘Democracia Real Ya’ was initiated as a movement opposed to current practices not only by politicians, but also by banks. Its first slogan was ‘No somos mercancías en manos de políticos y banqueros’. @Torrejon15M, as explained, is one derivation of DRY movement. Finally, @FotogrAccion, the creator of the HT, is fully integrated inside this movements and political and social goals.
As all pertain to a so focussed Twitter community, their actions, protests and twitting remain inside their community. Even if these groups use daily Twitter as channel for communicating their actions, anger and outraged messages against financial institutions, we consider that it does not damage too much banks corporate reputation. All these groups are established as enemies of financial corporations as they are currently designed. As they behave as rivals, banks have nothing to lose with them in terms of reputation, was banks will never be positively viewed.
The reputation problem arises when these closed groups are able to break their own confines, and succeed attracting the attention of standard media, traditional or social. Becoming a Twitter TT allows you to access all standard social media. You become visible to all Twitter community, and not only to those especially sensitive to the consequences of the crisis for the poor. It becomes an open issue for all Twitter users.
As explained, if the HT is designed in a smart way that pushes Twitter users to check out what behind this hashtag, the virality impact of the issue explodes, and keeps inside the Top TT List for a while. One key feature for creating a reputation crisis is that the hashtag contains the name of the bank, Bankia. Every minute in the Top TT List harms Bankia corporate reputation, as many unrelated users learn that Bankia is about to evict a father of 8 because as unemployed he is unable to continue to ensure the mortgage payments. For some this will be a difficult but a justified action that Bankia could assume, as legality is in their side. But for many others, this will create an outraged reaction against Bankia image and perception, confirming the present poor reputation of the financial institutions.
As explained, if the hashtag is appealing, Twitter users dynamics is to select the HT in order to learn more about the ongoing issue. Twitter provide as output the tweets considered most relevant at that time.
Below is the caption showing the results of this HT, one day later. They are all extremely negative in terms of corporate reputation.
Our appraisal is clear. If your company becomes a TT in relation with a misbehavior or something negatively perceived, you enter into the red alert zone for reputation management, PR and communication crisis. Only in very few cases a red alert requires a ‘wait and see’ strategy as response.
In the following figure we show the magnitude of the reputation crisis from the instant that a company becomes a negative TT.
The figure displays the share of all tweets about Bankia that explicitly include the HT #HoyEsBankia. It reaches a share above 70% during the period that the HT is a Trending Topic. You have there an explosion of tweets about the company, and the vast majority of them are related with the negative reputation affaire.
4. A TT Lifecycle
What happened after #HoyEsBankia entered into the TT List?
We present the full HT story in the next figure. It shows the number of tweets using the HT #HoyEsBankia hour by hour, since its inception to the moment it is no used anymore.
As explained before, the hashtag is created at the end of 10 January, nine hours later, when the protest opens, tweets start to spread. Before 10am, after 11 hours it becomes a TT. One hour later it reaches its maximum. By 3pm, after 15 hours it moves out from the TT Top List. By the end of 11 January we find the last tweets using the sucessful hashtag. It completely disappeared just after 24h
We provide a complementary view in the following figure, where we represent the aggregate volume of tweets using the HT #HoyEsbankia.
The results show us that the HT that became a Trending Topic during five hours in Spain generated all in all 913 different tweets.
It gives also insights about the virality dynamics. When it becomes a TT it had just 7.4% of all tweets about the issue. In the next five hours when it became a TT, another 650 tweets were published (72% of all tweets). The remaining 21% tweets were published in the following seven hours.
As explained, we find that this reputation crisis is mostly a Twitter drive one, as all things went so fast that traditional media had no time to react and create new content and pressure based in Luis’s eviction case. Some Tv channels showed some images about the protest in morning programs. As for newspapers, there were two reactions, but they came just after the eviction was stopped. It was ‘El Digital de Madrid‘, and the local Madrid edition of the national newspaper ‘El Mundo‘. In fact, even the photos about the event were provided by in situ Twitter users. We show below a selection of them.
5. Bankia Reaction
What did Bankia in the meanwhile?
In the real world outside Twitter, it took the decision to suspend the eviction. This decision was communicated around 12am, and reached Twitter community instantly. Was this decision taken because of social media pressure? We cannot ensure it, as Bankia did not provide any press release in relation with the issue. Was it due to TV and newspaper pressure? According to our results, this is not the main reason for stopping the eviction, as the traditional media coverage was reduced at that point. But it is also probable that Bankia managers were extremely concerned that a sustained TT could become a news distributed massively in traditional media. All elements tend to the conclusion that due to the viral success of the Twitter hashtag #HoyEsBankia, bankia was forced to stop the eviction process, at least temporarily.
What was Bankia reaction inside Twitter community?
None. Bankia has two official corporate accounts, @Bankia (2.150 followers) and @Pressbankia (880 followers). No reference at all about the ongoing eviction case and subsequent reputation crisis was published or mentioned in these two official accounts. In fact, and in contrast with other days, no messages at all were published when #HoyEsBankia was still ‘alive’
To our understanding, this silence was the only possible strategy available for Bankia. Any explanation or statement other than the eviction was stopped would undoubtedly fuelled the virality of the crisis and moved it more quickly into traditional media. Also, an statement explaining that the eviction process was aborted due to public opinion (social media pressure) would strengthen the movement anti-eviction.
What I learned from this crisis
1. The story is the essence
The apparent main lesson is probably that creating a social media crisis was costless and even ridiculous in terms of means and impact (just 68 tweets). But my first lesson is not that one. Twitter is social media, and social media is media. Communication success needs always a powerful story. Twitter virality requires that the story behind the HT deserves attention and reaction. Twitter has its own communication rules, and being a powerful story does not always mean a dramatic, inspiring or outraging story. It can also be cynical, surprising, amusing or provocative. #HoyEsBankia required a strong story behind in order to provoke anger and reaction from a relevant share of people knowing about it. Otherwise, it could not reach or stay in the Top TT List.
2. A focused Twitter account with active followers is a powerful social media actor
#HoyEsBankia became eventually top TT in Spain probably thanks to the initial RT from followers of the Twitter accounts that designed the anti eviction protest and choose the hashtag. As explained, a relevant number of new tweets and retweets in a short period of time is a necessary condition for gaining the TT visibility. This can be easily reached if a social activist leader launches a new operation and followers are active and numerous enough to disseminate. All Twitter users are actors and spectators, but this crisis shows that Twitter is creating an unsuspected new category of social media leadership. It will be volatile, very voluble, with different profiles depending on the affected issues. These new leaders will be really influential, specially if they do not waste their power in spurious goals, but keep always focused in the mission that created the crowd of followers.
3. Long live the Community Managers
It is still unclear for many the function, mission and utility of Community Managers (CM) inside the Corporate Brand, Reputation and Communication structure. This is also my case. But this crisis shows me that someone at Bankia should be aware that something wrong was about to happen. Of course, the task of a CM is not to discover that your company has become a TT with a negative perception. The task is to call the team and the managers announcing that your company is about to become a TT in th next few (hours?) minutes, and that a reputation crisis management is required. The theory says that Twitter is a marvellous tool for listening to customers, public opinion, and stakeholders in general. A crisis launched by a successful HT is a clear case where active listening by CM can prevent massive virality by detecting early alert symptoms of a reputation crisis, and activating red alert protocols when an incoming negative TT is sure.
4. Corporation caring about social media crisis will need Twitter content monitoring software
Smart Community Managers will be able to predict if a costumer or activist complaint or attack is spreading and becomes a threat of a potential reputation crisis. But companies that are in the front line of social media attacks (and I think that all relevant companies where reputation matter) cannot rely on CM know-how and intuition for preserving brand reputation. Many companies are upset by the lack of reliability and meaning of products promising that they identify Twitter mood concerning the corporation. In any case, it is needed to count with a systematic monitoring of the evolution of negative feelings about a company in Twitter. Finding results concerning messages with very negative content is easily than providing a serious measure of the brand reputation of a company.
5. Twitter and social media impose the definition of new and faster reputation emergency protocols.
The crisis studied in this post took less than 10 hours to become viral. When initiated, it took less than 3 hours to become a visible to all Twitter community in Spain. It completely disappeared from the radar just 12 hours after it became a TT. As analyzed in the previous post, a Youtube crisis is also a matter of few days, and in some cases also a matter of hours. All this clearly indicate that a traditional protocol that requires a lot of checks and controls, meetings, decisions and hierarchical approvals is not ready to solve properly a Twitter driven reputation crisis. New standards should be defined. This revision does not affect just the crisis communication policy inside Twitter with the official corporate Twitter accounts. Bankia was obliged to take a decision within hours concerning the application of the judicial eviction procedure. This was a management decision, not merely a communication measure.
6. Yes, Twitter is truly social media and, as a consequence it is an outstanding new tool for social activists.
FedEx. Reputation management in the Transparency Age. How to react and restore this present colossal reputation crisis? Impossible mission. The reputation damage for FedEx will be huge and durable. Of course, it will be very interesting to follow the communication crisis pattern followed by FedEx. But our judgement of this reputation crisis is that FedEx will pay the hard price.
The story: Youtube user goobie55 bought a computer monitor. It was delivered by FedEx. Goobie55 had a video camera in the house entrance. It recorded how FedEx worker ‘delivered’ the very fragile box: throwing it from the street. As goobie55 points out in his/her Youtube video “The sad part is that I was home at the time with the front door wide open. All he would have had to do was ring the bell on the gate. Now I have to return my monitor since it is broken”.
This 21′ video isthe epitome of awful negative advertising: this is high quality recording, it is very short, it shows constantly the FedEx logo, the video captions that we show below show also that the fragile computer content of the box was evident, it finally clearly shows that the FedEx worker does not attempt to ring the bell of the property.
This is a 21 second duration video. It was upload 19 December 2011. Two days after, it counts with 1,7 millions views. For sure, the number of views will explode in the incoming days, at it has become a viral video. Liking rate of this video is 95.4. Viewers like this video, and of course not because they appreciate this FedEx quality express deliver. There are already some 9.000 outraged comments.
This is Transparency Age. Social media magnifies little but disgusting mistakes. Waste of time if companies try to deny or justify them. Impossible to fight against the viral dissemination of this new source of brand reputation. Companies will have to decide if they are positive and thankful to these opportunies offered by the new channels providing information about customers feelings and complaints, and react introducing improved product and service standards. Really, this video is telling to FedEx management that something can be improved in terms of service delivering. This was a 20 seconds delivery, and we don’t know if FedEx job protocol rewards more quantity delivered than quality. If they understand this, Fedex cand improve long term quality service and customer satisfaction.
As for possible responses in this communication crisis, we feel, in line with our basic analysis, that only a message asking for pardon to all costumers plus a determination to improve delivery standards, training and control will be considered by the video viewers.
We showed in other post in this blog how KFC Malaysia reacted to a food tampering video scandal by also using social media (Youtube and Facebook) for explaining Kentucky Fried Chicken position and measures. Our assessment in that case was that even if unintended, KFC management was fuelling the viral diffusion of the video and, thus, we doubted about the communication strategy, praised by other observers. See here the KFC food tampering blog post.
In this FedEx crisis we are persuaded that the social media impact of this video will be massive. The scenario is so terrible for the corporate brand and reputation team at FedEx, that there is almost nothing to lose in this crisis. They would nevertheless still worsen the present nightmare situation if the follow the denial approach or the ‘this is just a regrettable isolate case’.
Video images
Video ’FedEx Guy Throwing My Computer Monitor’
Update: 22 December 2011
As expected, number of Youtube views is currently exploding. We count now 4,1 million views, just 3 days after its upload. As for comparision, views of the KFC Food Tampering video in Malaysia has received som 400.000 visits in six months.
We have an official reaction from FedEx. Here it is:
FedEx Response to Customer Video
December 21, 2011
FedEx team members work very hard every day all around the world delivering millions of items on time and in perfect condition. The one delivery shown on the video is completely at odds with our training and policies. We have apologized to the customer and secured a replacement delivery. We’re pleased to have resolved the situation and the customer is satisfied.
As a result of this absolutely, positively unacceptable delivery, we are redoubling our efforts to keep things like this from happening in the future. In this specific case, we are following our established disciplinary process, which is intended to protect the privacy of team members. We can say that the employee is not interacting with customers during this process. Additionally, we look at this as a great learning opportunity. We have already used the video internally to remind all of our team members that every single package is the most important one.
We take pride in having a low damage claims rate and are very upset by this incident, which is so at odds with our Purple Promise to make every FedEx experience outstanding.
And another official reaction from Matthew Thornton, FedEx Senior Vice President of US Operations
Along with many of you, we’ve seen the video showing one of our couriers carelessly and improperly delivering a package the other day. As the leader of our pickup and delivery operations across America, I want you to know that I was upset, embarrassed, and very sorry for our customer’s poor experience. This goes directly against everything we have always taught our people and expect of them. It was just very disappointing.
However, from the customer’s perspective, I am pleased to let you know that the matter has been resolved in a very positive way. We have met with the customer face to face and they already have a replacement monitor at no cost to them. They have accepted our apology and say they are fully satisfied with what we’ve done in response to this unacceptable delivery. They’ve made it clear, though, that they prefer not to be identified in any way, and in this case as always with customers, we fully respect their privacy.
I know you recognize that this absolutely does NOT represent the professionalism and dedication of the 290,000 FedEx team members worldwide. It is one person and one package. While many people are publicly speculating about what will happen to the employee, FedEx takes care to protect team members’ privacy as well as our customers’ privacy. We do take this matter extremely seriously, and have initiated action in accord with our disciplinary policy, while respecting privacy concerns. Without going into detail, I can assure you that this courier is not delivering customer packages while we are going through this process.
This matter is an unfortunate exception to the outstanding service FedEx team members deliver every single day. Our customers know and value that service. We have been doing this almost 40 years, and if we weren’t doing it right, we wouldn’t have gained the widespread respect we have enjoyed. As a matter of fact, we have a very simple motto we try to live by – the Purple Promise: “I will make every FedEx experience outstanding.”
While this delivery fell way short of those high standards, we are already using it as a learning opportunity. We’ve shared this video internally to remind everyone that every single package is important to you, our customers, and that actions like this are totally unacceptable. We are also going to build this into our training programs as a constant reminder of the importance of earning — and keeping — your trust with every single delivery. We hope that you, like the customer involved in this incident, will see it as an unfortunate exception that proves the rule that our company cares for its customers.