OUR EXPERTISE:

Failure to Communicate: Learnings from the Ongoing Cooper Union Battle

A few weeks ago, the Trustees of famed college Cooper Union voted to begin charging tuition in the 2014 school year. To an outsider, the decision might look like a no-brainer. The school is desperate for cash to keep its doors open, and who could make a fuss about a college charging tuition? That’s what they all do, right?

Well no, actually. In fact, Cooper Union has never charged tuition. For more than 150 years, Cooper has weathered every financial storm to remain free of charge for every single one of its students. The school’s founder, Peter Cooper, believed education should be “as free as air and water”, and the commitment to  “free education for all” is the college’s most distinguishing feature and an abiding source of pride for students and alumni.

It’s not surprising the change wasn’t taken lightly. Immediately after the announcement, students began protest efforts, including painting the entire lobby of one of the school’s buildings black and peacefully occupying the president’s office. And like-minded institutions around the globe are starting to stand in solidarity with the protesters.

After three weeks, there is no sign that this issue is dying down; in fact the hostility seems to be escalating, with the protesters demanding the resignation of president Jamshed Bharucha.

So what did the board and administration do wrong? Their decision reflects a failure to fully grasp the attributes that were most valued by their constituents.

Despite sophisticated research tools and well-staffed public affairs departments, we continue to see a rash of organizations that suffer from self-inflicted wounds to their brands.

  • JC Penney ignored what was important to its loyal customers and suffered a collapse so significant that the CMO and CEO were both fired.
  • Apple stock has plummeted, as the company seems unable to release the kind of innovative new products fans have come to expect.
  • Carnival Cruise Lines has gone from providing ships for vacationers to escape to, to having ships their passengers must escape from.
  • University of Virginia, a bastion of transparent governance attempted a behind-closed-doors coup, which ended up being toppled by students, faculty and alumni.
  • And the University of California faced a similar revolt after attempting to change a logo and look that had lasted for 144 years.

If UC students staged a successful revolt over a logo, and UVA did the same over the fate of one president, how is it possible that Cooper Union is caught by surprise by the angry reaction to plans that will cost students tens of thousands of dollars and violate the school’s most fundamental values? What we have here is a failure to communicate.

What enlightened marketers need to understand about brands and the organizations they represent, is that before you plan for change, you must understand what your core audience values most. If you don’t, those same people will become your most vocal, even vicious, critics.

When we see groups of people become outraged critics, like the students and alumni of Cooper Union, we should understand that dissent is more valuable than indifference. Criticism may be hard to take, but it often comes from the audiences that care the most.

Fortunately, all of us have the power to avoid these disasters. All it takes is rethinking the responsibilities of our jobs  as marketers. Good communication starts with listening. Seeking honest input, as often as possible, is the secret recipe behind every great communicator and every great leader.

So what should the leadership of Cooper Union do now to turn the tide from criticism to cooperation? Learn from examples like New Coke, JC Penney, Netflix, UVA and hundreds of others. Swallow your pride, suspend your current plan and start listening.

And as an alumnus of Cooper Union, I hope they do it fast, before one of our nation’s most respected educational institutions collapses under the weight of poorly informed decisions.

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10 Ways Whole Foods is Raising the Bar in #CSR

My love affair with Whole Foods started in college, when I would drive 20 minutes to their nearest store just so I could get my pick of the juiciest grapefruits, creamiest avocados and crunchiest granola in town. Since then, my fondness for the brand has only grown, and while this has a lot to do with the quality of its product (always fresh, flavorful and abundant), and its in-store experience (never fails to delight), there’s an important third factor at play.

Whole Foods’ commitment to social responsibility inspires its business strategy in a way that keeps the brand in lock-step with customer expectations and places it in a league above its competitors. It’s not the student content to slide by with a B+ in corporate responsibility – it’s the charismatic over-achiever who raises the bar for the rest of us, and makes us aspire to great things.

Here are 10 cool ways Whole Foods is raising the bar in CSR:

- Growing Greens – A few years ago, my colleagues helped RVA’s Whole Foods open a community garden to act as a learning lab and stock greens for the store’s salad bar. I was impressed. Even more impressive? The retailer announced this spring it’s partnering with NY-based Gotham Greens to build the first-ever commercial-scale grocery rooftop greenhouse for its Brooklyn store. In the 20,000-square-foot greenhouse (pictured below), they’ll grow pesticide-free greens to be sold in the Brooklyn location, as well as other Whole Foods stores in the area. clip_image002

- Taking a Stand on GMOs – In March, Whole Foods became the first U.S. retailer to require the labeling of all genetically modified foods sold in its stores by 2018. Rather than getting embroiled in the debate raging over government’s role in regulating food labeling, the brand put a stake in the ground that many expect will have a ripple effect throughout the industry.

- UpCycling – Whole Foods encourages its team members to have fun and get creative with upcycling – converting old or discarded materials into nifty, useful things. In addition to urging innovation and reducing waste, this process can rally communities by tapping local pride. Shoppers in Charlottesville, for example, are thrilled to find retired floorboards from UVA’s basketball gym lining the snack aisle, and old bleachers acting as picnic tabletops.

- Exploring Energy Savings – About 18 months ago, Whole Foods announced several of its California stores were undergoing high-efficiency, refrigeration retrofits to quantify how much energy each store could save. Working with California’s EnergySmart Jobs program and energy conservation nonprofit PECI, the retailer installed energy management systems and data loggers to offer a before-and-after picture of how much energy the refrigeration systems used.

- Investing in Suppliers – You can’t walk through a Whole Foods without realizing the company believes in supporting local food producers. But what you might not realize is that it also puts its money where its mouth is, offering low-interest loans to small food producers looking to expand. To date, the company’s local producer loan program has provided $8 million + loans to groups like Maine’s Own Organic Milk, Sticky Toffee Pudding and Willie Green’s Organic Farm.

 

- Encouraging Diversity For generations, African-American farmers in the Alabama Black Belt have faced a challenging political, economic and physical climate that’s made it hard to compete. But, thanks in part to support from Whole Foods and other retailers, clip_image004many of their marketing barriers are slowly breaking down. In a pilot program to demonstrate the potential of the Black Belt farming community, Whole Foods has begun to purchase and market watermelons, peas and other crops from small farmers like Demetrius Hooks (pictured right), showing support for diversity in agriculture as well as in their own supply chains.

- Urging Transparency – As evidenced by its stance on GMOs, Whole Foods vows transparency to customers, and demands it from suppliers. It also offers a high level of financial transparency to its employees, all of whom can access detailed reporting on employee salaries for the previous year. According to co-CEO John Mackey “This kind of salary transparency quells the gossip mill and exaggerations over who is making what, and leads to ‘greater justice’ in compensation.”

- Caring for Employees – It’s no coincidence that Whole Foods has been named among the top 100 places to work by Fortune magazine for the last 16 years. The company offers its employees some of the best health care benefits in the U.S. and up to 30 percent off store purchases if they meet certain health criteria. It also holds regular employee appreciation days with celebrations and store discounts, and lets workers apply for six weeks unpaid sabbatical for every 6,000 hours logged.

- Supporting Local Communities – Individual Whole Foods stores can tailor their approach to community giving in order to reflect the local flavor. Several times a year, all locations hold “five percent days,” where five percent of store sales go to a local nonprofit or educational organization. Many also run “Nickels for Nonprofits” programs, where, for every paper bag you save by bringing your own into the store, Whole Foods gives you a nickel to either keep or donate to a local charity.

- Giving Back to the Global Community – Last but not least, Whole Foods works to alleviate hunger and povertclip_image006y around the globe by offering microloans to entrepreneurs in the communities of its suppliers. The Whole Planet Foundation, a partnership between Whole Foods Market and Nobel Prize winners Muhammad Yunus and Grameen Bank, provides grants to microfinance institutions in Latin America, Africa and Asia, which provide loans, training and other financial services to the self-employed poor.

Just like the relationships we have with friends and family, the ones we have with brands are built on trust. While Whole Foods is not without its shortcomings, and will surely do something that ticks people off one day, it’s setting itself up for success in the long haul. By building a foundation of goodwill based on genuine support for its employees, communities and society at large, Whole Foods has cultivated a brand that’s easy to love … and one that will be tough to stay mad at for long.

Photo credits: Whole Foods Market, Jamie Ross/Daily Yonder, Whole Planet Foundation

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Three Rules for Creating Your Brand’s Digital Experience

You’ve been there before. You are surfing the Internet or doing some online shopping and you end up on the site of a brand you know and love…and are completely underwhelmed. The brand is familiar to you, and you know you can count on them for quality products or experiences. So considering we spend the vast majority of our days online, and that businesses and organizations see their web presences as their “front doors,” lucrative sales or lead-generation machines, and the way to reach the most people possible, why are some of the strongest brands still struggling with web presence?

In many cases, it’s not that a brand struggles with its digital experience–it’s that the brand doesn’t even show up for it in the first place.

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Transparency is No Longer a Choice

Almost every day, I see an article or brand study talking about how corporations need to become more transparent. The sentiment is good, but the implication is that transparency is a choice, and that the alternative is to be opaque or shrouded in our actions. This really isn’t the case anymore.

We operate in a world where almost everyone has a phone equipped with a portable video studio capable of instantaneous global distribution. As distressing as it may seem, we are all being watched.

Whether we like it or not, every customer having a bad experience with your service department is starting to act like Mike Wallace on a sting. Remember when restaurants used to try to determine when the food critic was stopping in so they could put on their best show? Well today every customer is a food critic and reviews don’t last a day, they stay online forever!
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The End of the Smartphone As We Know It

Under the BridgeThe cold March wind swept across the old streets crisscrossing historical industrial structures and warehouses near Old City Manchester in Virginia. On my bike, I had to fight to keep my balance in the wind. It started raining again. At that instant, I was conveniently crossing railroad tracks under a bridge. While I waited for a few minutes for the rain to let up, I checked my smartphone that showed I had less than a half-mile to go.

A few bends in the road later, I skidded to a stop on the wet pavement and continued on foot. The clearing along a narrow trail peaked through the trees. I navigated through the muddy brush onto the trail, following it to my destination. My destination was a historical marker that doubled as an unclaimed portal in the free augmented reality game Ingress created by Google’s Niantic Labs. Read More about Augmented Reality and the Future of Smartphones

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A prescription for CNN’s flagging brand: “Cut the Nattering, you Nabobs!”

CNN needs help. The one-time cable-news king trails Fox News, and February ratings show CNN trailing MSNBC, too.

Proof that ex-NBC chief Jeff Zucker has his work cut out for him. Zucker took the reins at CNN just over a month ago, firing talent and, according to the New York Post, calling on reporters and editors “to broaden their definition of news and include a greater selection of topics.”

Good advice, but no wonder ratings are dropping if the results of change are:

  • All day coverage February 14 of the Carnival Triumph’s tug to port – that’s eight hours of “poop in plastic bags.”
  • Yet another Piers Morgan interruption party with gun rights advocate John Lott Jr. February 27.
  • HOURS of coverage and panel discussions on the Jodi Arias trial – umm, who is that again? And panel discussions?
  • While others covered political news, CNN covered Beyonce’s Super Bowl press conference where she proved she could sing and lip-sync.

Zucker, halting the ratings slide at CNN will take tightening the definition of news, not broadening it to… this?

Get the CNN brand back to what’s missing from primetime cable news: news for grownups.

How refreshing would calm, measured, professional, unbiased broadcast journalism be for the primetime demo?

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How to Avoid Watering Down Your Brand

What Carnival Cruise Lines & Maker’s Mark Can Teach Us About Brand Decision Making

By Kelly O’Keefe (@kellyokeefe)

What a month it’s been for brand blunders. In recent days, the world’s largest cruise line, one known for its luxury accommodations, handed its travelers plastic bags and asked them to use them for their solid waste. That image may revile you, but fear not, Carnival’s owner, Mickey Arison, is made of sterner stuff. He didn’t let the plight of his passengers interrupt his plans to watch the Miami Heat game from his VIP suite.

In a less unfortunate incident, another category leading brand, Maker’s Mark, decided on a great plan to increase production: Just water down the bourbon! They figured that nobody would mind too much if they just poured a little more tap water in the barrels. They figured wrong.

Maker’s Mark was forced to quickly abandon the new recipe after a costly customer revolt, while Carnival is due for years of lawsuits and a brand that’s sinking faster than the Titanic. In both cases, managers responsible for protecting the brand made mistakes that anyone on the outside could see from a mile away. And actually, that underscores the problem.

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Don’t call it the Academy Awards; call it the #Oscars!

By CRT/tanaka’s Brand Group

On Sunday night, the Academy of Motion Pictures Arts and Sciences continued its quest to appeal to a younger audience. The show enlisted Family Guy creator Seth McFarlane to host the 85th Academy Awards – oh, wait, we mean “The Oscars.” This year, the Academy decided to rebrand the program in an effort to portray a younger, more relevant tone on the heels of a hipper, sharper-tongued Golden Globes.

A declining viewership among ages 18 to 49 prompted the Academy’s desperation to attract younger viewers. The Academy was counting on McFarlane to appeal to young male viewers. As anticipated, he opened the Oscar show with a round of racy humor and one-liners that showcased his juvenile brand of humor. No offense to McFarlane. He did what he does – crass humor. If anything, he was pretty restrained and nowhere near as snarky or mean-spirited as Ricky Gervais hosting the Golden Globes, the Oscar’s fun, younger sister.

But, we think it cracked the façade a bit. In the past, the Academy has been recognized as the “legit” or “high end” awards show. This year’s approach draws back the curtain on a rating hungry group – similar to every other awards show. It’s just one more respected brand trying too hard to get Millennials’ attention.

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Is BlackBerry Ready to Lure Back Business Users?

By Jeff Wilson, APR (@wilson0507)

Don’t call it a comeback. We’ve been here for years.

There was a time – not so long ago – when many of my colleagues wouldn’t go anywhere without their BlackBerrys. After all, BlackBerry was THE smartphone of choice for the serious-minded business executive.

Even when the iPhone made its triumphant debut in 2007, loyal BlackBerry users scoffed. While iPhone users were off playing around with apps, BlackBerry users were “handling their business.”

A CNN article from 2010 said it best, “The BlackBerry is the get-things-done phone. It’s not designed to run flashy applications, for playing games or for uploading pictures to Facebook and Twitter. It started out a business-minded device, and RIM has continued to market it as a business-friendly device.”

But a funny thing happened on the way to the boardroom; iPhone found a seat at the table.

And iPhone’s growth has been nothing less than meteoric. In the fourth quarter of 2012 alone, Apple sold a record-setting 47.8 million iPhones, helping the company report a staggering $13.1 billon, the second highest profit ever earned by a U.S. corporation.

And it’s not just the iPhone luring away business users. The first Android-powered phone was sold in October 2008. And now, Android is “the world’s most widely used smartphone platform and the software of choice for technology companies who require a low-cost, customizable, lightweight operating system for high-tech devices without developing one from scratch.”

Back to the Future

But could BlackBerry (formerly known as Research in Motion) be poised for a comeback?

In January, the company announced two new smartphones – the BlackBerry Z10 and the BlackBerry Q10. Both will run the new BlackBerry 10 mobile operating system. The phones will launch in the U.S. in March. The BlackBerry Z10 looks a lot like iPhones and Android devices. And the Q10 has the keyboard that hard-core BlackBerry users still covet.

But the question remains, will the new BlackBerrys be enough to lure back business customers who defected to other devices?

So far, the BlackBerry 10 has gotten mostly high marks from early reviews. BlackBerry 10′s features include separate work and personal profiles, time-saving ways to multitask without closing applications, video chat with live screen-sharing and more than 70,000 available apps.

However, BlackBerry has a tough hill to climb.

“(BlackBerry) faces steep challenges in launching the new OS. Accounting for just 4.6% of the smartphone field in 2012, the BlackBerry platform has hemorrhaged so much of its once-considerable market share that there’s little ground left to cede,” writes Michael Endler for InformationWeek.

A Full-Court Press

BlackBerry has put on a full-court press to launch its new phones, even buying air time during the Super Bowl – a first for the company. However, its first foray into Super Bowl advertising was received with a bit of a head scratching from the advertising community.

AdAge writes, “Really, BlackBerry? ‘In 30 seconds, it’s quicker to show you what it can’t do.’ Really!? You’re in a battle to the death against feature-laden phones from Apple and Samsung. You’re releasing a phone that got some half-decent tech-world buzz last week. And you’re going to drop millions on a 30-second spot that doesn’t offer one gee-whiz feature that would separate you from the smartphone pack?”

Take a look at BlackBerry’s Super Bowl ad and judge for yourself.

Even iPhone has had to work to hold on to its coolness factor, trying to fend off advances by Samsung and its Galaxy S III. Some of my co-workers who first defected from BlackBerry to the iPhone have now defected to Samsung.

Not satisfied with just taking pot shots at iPhone, Samsung has now set its sights on BlackBerry’s business customers.

“There are those who make cruel jokes about BlackBerrys. They suggest that people who still use them are the sorts that listen to CDs,” writes Chris Matyszczyk for CNET. “For myself, the only people I still see with BlackBerrys in hand are those who haven’t stopped focusing on climbing the corporate ladder since 2004 – and are still in middle management positions.”

Ouch!

Here’s Samsung’s pitch to business users.

But don’t count BlackBerry out just yet. Some early sales data suggests that BlackBerry may be seeing some strong demand for the Z10.

“According to channel checks conducted by Jefferies & Co., pre-orders in the United Arab Emirates and Canada have so far been ‘solid.’ More encouraging, though, are early reports from the U.K., where Z10 sales are evidently off to a good start,” writes John Paczkowski for All Things D.

For now, I’m holding on to my iPhone 5, but I can promise you, I’ll be keeping my eye on BlackBerry – just in case everything old is new again.

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