And the social media world erupts again… this time over a failed attempt at humor by the marketing department at Kenneth Cole. Here is a breakdown on what ensued…
The Kenneth Cole Twitter account sent out a tweet earlier that played off the unrest that is underway in Egypt. The tweet read :
“Millions are in uproar in #Cairo. Rumor is they heard our new spring collection is now available online at http://bit.ly/KCairo-KC”
Okay… I know… this is completely ridiculous. The communications/marketing/social media department at Kenneth Cole decided to play off the trending hashtag of #Cairo in order to get some publicity for the brand. Bad idea. We know that.
People are pissed and for good reason. There are thousands of tweets, Facebook comments, and forum messages being sent out condemning the brand for insensitivity toward the Egyptian plight. Even more people are calling for massive communication crisis control.
It is completely understandable. Apparently, the head honcho himself wrote an apology on Facebook / Twitter and apologized…. somewhat insincerely… about the mistake.
Here is my issue with the digital marketing outcry.
Is this really going to hurt the brand of Kenneth Cole for more than a week? They deleted the content… sure people are writing about it… but is a negative tweet going to hurt the sales of the company?
I’m not sure. Let’s look at the numbers instead of using emotion to explain a problem.
The best example I can come up with is the Nestle fiasco. For those of you who do not know, Nestle was slow to respond to an outcry from Greenpeace on their Facebook page. The outcry was centered around the use of Palm Oil in its products. At first, Nestle ignored the problem which further fueled the fire and then proceeded to argue with the users…. clearly not the way to go.
Long story short… extremely negative content was shared all over the web.
Yes it was negative… and yes… it did hurt the overall brand in the eyes of social media user. The real question is whether or not the negative publicity hurt sales.
According to a Bloomberg article on Nestle, the chocolate and Purina dog food maker’s revenue rose 6.1% in the last half of 2010. This accounted for $85.4 billion in revenue.
“Nestle remains the epitome of strength and consistency,” Andrew Wood, an analyst at Sanford C. Bernstein, said in a note. “Any concerns that Nestle’s strong momentum from the first half would subside have been shown to be unfounded.”
Needless to say… in terms of revenue and volume growth as company… Nestle was not hurt by the outcry on the social web. Their food and product division (which houses Kit Kat) also rose in revenue and volume.
To be fair… Dominoes also had a social media crisis of their own in 2009 on YouTube. Because of the outcry… sales slid 1% – 2% that quarter.
I think it is important to keep brands accountable for their mistakes and make sure the world knows what is really happening behind the walls of the business elite. However, it is important to remember that while social media and negative publicity can be an extremely powerful thing… sometimes it doesn’t hurt the overall health of the brand.
It’s important to always look at the numbers because numbers are everything in the world of business. I’m interested to see if this outcry changes the sales outlook for Kenneth Cole in their first quarter of 2011.
What do you think?
Arin Davis
I think situations like these appeal to bandwagon jumpers, especially in our generation where most everyone just wants a cause. Was it insensitive? Yes. In the scheme of things was it THAT big a deal to an average consumer? No. And I think most people will jump off this bandwagon, with that new pair of KC shoes, and run full force into the next one to arise.
Kara_Hensley
I support this view- I believe some people have nothing better to do with their time than to create an uprise about the newest "blip" a company makes. Although I do not support what certain companies say or do, I don't really think it will affect the overall sales from loyal customers too much. I am studying internet marketing with Dr. William Ward (Dr. 4Ward) and we learn about how to use social media as a means of communication among brands and also among networking opportunities.
Chris
Interesting insight. I tend to agree. While social media is growing in adoption and reach, I think it's influence, positive and negative is often overstated on bottom lines. One also has to wonder, as crass it may be, are some of these social media faux-pas really more calculated risks taken by brands to drum up "conversation" around their brands?
Allison Carter
Kyle, I think that this is a good point, but there's also a serious difference between Nestle and Kenneth Cole. Nestle is a gigantic corporation that owns dozens of brands–everything from Purina, as you mentioned, to DiGiorno Pizza, Hot Pockets, Lean Cuisine, and many more. Most people probably don't really know that these brands are Nestle. Might consumers avoid something that is overtly Nestle, like a Crunch Bar, but never be aware that their Edy's Ice Cream is also made by the same company?
By contrast, Kenneth Cole sells fashion items under just one banner: Kenneth Cole. It's much easier to avoid buying Kenneth Cole shoes than it is to make the connection between Nestle and California Pizza Kitchen.
Chuck Gose
It's not going to hurt Kenneth Cole's brand at all. If you walked into any coffee shop this morning and asked, "Did you see what Kenneth Cole put on Twitter?" you might have one guy raise his hand (likely me). And of the other dozen or so people in there, half will probably wonder if they even know somebody named Kenneth Cole.
The lesson to be learned here though is how brands and companies should be more responsible with their communication. And even "sexy" brands like Kenneth Cole can have a misstep. I'm the first one to support the use of humor in marketing, but it has to be the right humor. This wasn't the right "joke" to make.
Matt Schoenherr
I agree with Chuck here. I enjoy funny, light marketing as much as the next bloke, but this one may not have been well thought out. OR, maybe it was and they were hoping an off-color tweet like this might get them a little controversy–a fine line indeed!
And, yes, I could have even been standing in my Kenneth Cole's and if someone asked the coffee shop about what Kenneth Cole put on Twitter, I would have been thinking, "Man, I didn't know Ken even knew what a tweet was~!"
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[…] This post was mentioned on Twitter by Kyle Lacy, Daniel Herndon, Chris Lucas, Arin Davis, Gabriela Aguirre and others. Gabriela Aguirre said: RT @kyleplacy: Does Negative Social Media and PR Really Hurt Brands? (new post on @KennethCole) – http://ow.ly/3QfjW […]
mbreyno
While I think the post from Kenneth Cole was insensitive and in poor taste, I also think the outcry against it has reached an unreasonable point. I've even seen people suggesting that KC discontinue the whole product line as part of an apology. Really?
As far as I can tell, a clueless employee made a terrible, tasteless joke on Twitter and soon afterward the company apologized. I think the apology could go a bit further and be more sincere but I also think that there are some people on social media who are never satisfied, who enjoy getting into a frenzy online, and who love to attack big companies online because it has gotten easier.
In my opinion, KC should craft a longer, more sincere apology, find a way to send aid to those in Egypt, and then move on.
Was it wrong and inappropriate? Yes. Do we need to keep getting worked up over this mistake? I don't think so.
As a side note, the silver lining is that it's probably raising awareness about what's happening in Egypt.
Great post, Kyle!
Guest
It's a really good point that speaks to one of the things that vexes the PR field: how to measure the impact of "good" or "bad" PR. Surely the tweet and subsequent backlash have created a lot of online chatter, blog posts and a few stories in the MSM, but I also am not convinced that it will affect the brand equity in the long run. If Kenneth Cole continues to produce a product that satisfies his customers, this will be a simple blip in the company's history.
The converse is also true (IMO): a lot of people are running around spouting the old, "There's no such things as bad publicity." (How about posing that question to Michael Richards?) But brand equity is more than brand awareness.
Just as it is an open question as to how many people will actually boycott Kenneth Cole because of the tweet, it's an open question how many new customers will be gained because of the publicity.
Jon Thomas
Of course, because of Domino's impressive response to their crisis and (though not necessarily related) fully transparent change to a new recipe and marketing campaign, they've rebounded quite well. Sometimes falling gives us a chance to show that we can get back up and be stronger. It's not a guarantee, but an opportunity.
Nancy Myrland
Good post Kyle. As I mentioned in our discussion on Twitter yesterday, sales don't have to slide to use these situations as solid teachable moments for businesses engaged in Social Media. I have no interest in seeing him go down, or his sales slide, but of helping those with whom I work learn what not to do via their communication channels. To brush this off as only having merit if it makes sales slide would be to sell it short as an instructional tool. If I did something so stupid, my sales might not slide, but I'd sure better learn from my mistakes so as not to do it again.
Marty Thompson
Hello Kyle,
As always, good stuff, thanks for sharing your thoughts. The dialog that takes place via social channels is also important for another reason, even if it doesn't affect near term sales. Companies that engage with the marketplace, the world at large, might just begin to change internally. Slow, but meaningful over time. This social rodeo ain't done yet, the clowns haven't even stopped wrestling with the hogs. Another example. Will the current banter over the content of Taco Bell taco meat change their recipe? I can't say. But it probably will. Will it affect taco sales? Probably not. Will something good happen, due to the gladitorium of social, to change a product for the better? That might be enough. As this scenario repeats over time, we may begin to see changes to the mindset in corporations. I do believe that marketers have an obligation to be more than just moneymakers for a company. We are more than just a channel. Either fundamentally we'll march to the ROI tune, and dismiss an equally important role, or we embrace it. My two cents.
Michele Hinojosa
I'm not sure it's as simple as "Nestle's revenue rose 6.1% therefore this didn't hurt them." Who is to know that, without this event, their revenue wouldn't have risen 8%, or 10%? Unless you can properly model the results with and without the incident, it's all speculation.
I do agree that the social media storms that stay primarily in the social sphere (e.g. don't break into prime time news and other channels) are likely short-lived. After all, not everybody is on Twitter or follows brands on Facebook. But especially as these things filter into other forms of media, it's hard to say that there's NO impact – it's just that it's probably not going to mark the death of the company.
robbyslaughter
I'm really surprised by this post, Kyle. You seem to be saying that the numbers argue that a major social media gaffe isn't actually all that significant.
So, if a mistake made on social media—even a pretty big one—can't do that much damage, why should someone hire a social media consultant?
I personally think that while this may be most significant negative Tweet to date, it's only the beginning. I think we're going to see entire brands go down because of these kinds of comments.
If you remember your history, politicians have been destroyed for idle comments. Dan Quayle's appropriation of "potato", Clayton Williams rape joke, Tom DeLay's lines at Strom Thurmond's birthday party.
Social media adoption has only just begun. Soon, everyone will be a broadcaster, and wealth will not insulate you from damage.
Allison Carter
Kyle, I think that this is a good point, but there's also a serious difference between Nestle and Kenneth Cole. Nestle is a gigantic corporation that owns dozens of brands–everything from Purina, as you mentioned, to DiGiorno Pizza, Hot Pockets, Lean Cuisine, and many more. Most people probably don't really know that these brands are Nestle. Might consumers avoid something that is overtly Nestle, like a Crunch Bar, but never be aware that their Edy's Ice Cream is also made by the same company?
Allison Carter
…And it submitted without my full comment. In any case, it's much easier to identify products as Kenneth Cole than it is to identify products as Nestle, which makes it more difficult for people to stage an effective boycott. Thus, Nestle may not be the best example of the effects of a social media gaffe on profits.
Jay
I think the real difference is how they ultimately react. Yeah there were a few days where it seemed that they let some boneheaded stuff go out – but ultimately they addressed the problem – and didn't take forever to get back to their detractors and talk about what they were doing. Compare this to the Kryptonite bike lock fiasco and you can see that delaying in responding ('making things right') compounds the problem, and punishes the brand further and further.
Krist
I've often said no. I would bet that J&J didn't lose a penny after the Motrin Mom's drama. Negative social media buzz causes companies to panic far too easily. Soon they'll realize that most people are all talk. They don't put their money where their mouth is and follow through. Something new will happen and their 140 character attention spans will turn.
Dominoes is a whole different situation. People were video taped doing disgusting things to their food instead of just a statement they disagreed with.
Niall Harbison
I think it registers at some level somewhere and would put people off but these are big stron brands that have been around for years. This isn't just related to social media either…I watched the Supersize This movie a couple of years ago and that was far worse for a brand than anything happening on social media yet I still went out a onth later and had a Mcdonalds. Same with KitKat, I don't like what they do and how they produce it and am aware of that becase of social media but when I ate one yesterday I just really wanted one and looking at the other options I reasoned that they would all have been made in the same way!
Aromal
Great Article. I am a fan of Humour Makreting too , but what Kenneth Cole did was very insensitive and deserves the bad publicity it gets.
You pointed out an interesting example of Nestle and how their sales actually maintained the high in spite of bad publicity, i personally believe that all bad PR's will lead to a dip in sales and can vouch for this having worked in a PR firm myself. The Nestle case was an exception, its a funny world out there and weired things do happen.. However talking about dealing with Bad reviews i think i would like to share this article about how TERRECO wines dealt with bad reviews.
http://windmillnetworking.com/2010/09/14/how-to-t…
Part 3: Spinning Out of Control: Can we really control our brands? « andrewbowins
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christian briggs
Hi Kyle,
I am glad you are thinking about this issue. I'd like to suggest an alternative to your statement that "It’s important to always look at the numbers because numbers are everything in the world of business." Here goes: "It's important to always look at the metrics (which are both qualitative and quantitative) because metrics are all about the business." Or to make it a little more pithy: "Your business isn't all about the numbers. Your numbers are about your business." While this may sound like a slight word shift, it suggests a very different way to run a company.
Businesses who are all about the numbers can easily get caught focusing on short-term financial wins, often undermining their own longer-term strategy, and even their own organizational mission. In other words, the "numbers" in a thriving business should be used to measure how well they are strategically supporting their mission, not the other way around. I have seen reports that Kenneth Cole has said that "What you stand for is more important than what you stand in," which makes me wonder if this marketing move is undermining their corporate mission, even if their sales stay steady.
What do you think?
Kenneth Cole on Twitter – Kookmeyer Institute
[…] below. I wonder what the impact this tweet will have on Kenneth Cole sales. Maybe none. Check out Kyle Lacey’s post on people’s willingness to forget and move on, no matter what the […]
Randy Clark
Does a great conversation make a great post? Great post Kyle.
What have we learned?
·Social marketers are human – make mistakes, have poor taste, and bad judgment.
·Social net workers jump on the bandwagon
Will they follow through when it directly affects them? Will they stay on the bandwagon?
It's easy to connect unhealthy food preparation like Dominoes and a few others to personal well being, but what about when a boycott limits choices, wants? I believe most would see it as no biggie being outraged over a politician or personality, but what if you have to give up something? Are we willing to go without? I'm not certain. Yes, the KC P&L and will be interesting.
The Four Brand Health Metrics to Track | OpenView Labs
[…] of this is Kenneth Cole, which had a 64 percent decline in brand equity in just three days after it committed a significant social media sin earlier this […]
The Four Brand Health Metrics to Track | OpenView Labs
[…] of this is Kenneth Cole, which had a 64 percent decline in brand equity in just three days after it committed a significant social media sin earlier this […]