Global Public RelationsMichelle R. [email protected] 8, 2006J201 AgendaGlobal Public Relations: What do you do when yourpublic are global?- Globalization influence- Global strategy & tactics- Case studies- building demand for consumer brands/category- introducing new products - “category level”- crisis communications - trustTechnologyMediaGlobal StrategyPR: brand and brand trust[anything can be branded…]! Globalized/Standardized! Localized/Tailored! GlocalizedGlobal Tactics! Written word (styles, practices)! Communication/media channels (literacyrates)! Visuals/colors! Language(s) + translation“Grab some lederhosen, Sutfin. We!re about toclimb aboard the globalization bandwagon.”The Swinging Pendulum1980s 1990s 2000sGlobalstrategyGlobalcreativeOne sizefits allBrandglobalMarketlocalTailoredapproachBuilding demand for a consumer product (at the category level)Thanks to Golin-Harris for this case studyCase study #1Peanut ButterUsage:! How many of you have tried it?! How many of you buy it regularly?! How many of you ate it this morning?! How many of you use it to cook burritos?! How is peanut butter ‘marketed’ in the U.S.?! How would you introduce & sell it toCanada/Mexico? [without advertising]Strategies! Global strategy, with local tactics- product trial- fun of peanut butter - “events”- multiple uses (co-marketing)Canadian TourTour Sponsors! Kraft Canada - #1 peanut butter brand inCanada! Planters Peanuts – Introduced new vanilla-and cinnamon-flavored peanutsRetail Program! In-store sampling of Skippy peanut butter! 24 Dominion/A&P stores in Ottawa (but notWalmart!)Tour Stops310,0006 WeeksTotals60,000July 19 – 20Montreal Dragon Boat Race170,000July 11 – 13Molson Indy, Toronto25,000July 5 – 6Ottawa Blues Fest30,000June 28 – July 1Wasaga Beach15,000June 26 – 27Ontario Place10,000June 20 – 22London Country JamboreeAttendanceDatesEventRetail Program! Conducted in partnership with Wal-Mart andKraft Canada! 25 Wal-Mart stores throughout Toronto! In-store display with NPB & Kraft; nutritioninformation and couponsMexican TourTour Stops! Six week duration! Driving sales at Wal-Mart Supercenters inMexico City, Monterrey, Puebla, andGuadalajaraTour Participants! Smucker’s – Goober brand peanut butter andpossible launch of Jif in Mexican market" Peanut butter sampling, on-site nutritionist-recipes, advertising, couponing! Barcel – Leading snack nut company inMexico" Flavored-peanut sampling, recipes! Canon – Digital photo booth for tour visitorsRetail Program! In-store, private label peanut butter samplingat eight H-E-B stores in Monterrey! In-store peanut butter sampling at all 25 Wal-Mart locations in Mexico City of Smucker’sGoober brandResults! Product awareness and trial increased! Product sales increased! But we’re (U.S.A.) still the largestconsumers of peanut butter in the World.New Product Category! Introducing a new product category/brand- 1997-2000 “Dot-com boom…bust”- how many of you play games?- how has the level of realism changed?Product: “physics software to game developers”positioning: we’ll make life easier for you“MathEngine”Case study #2MathEngine- based in Oxford…my job: go global- public relations goals:(1) create corporate/brand identity- are we a UK or US company?(2) build corporate awareness & funding(3) encourage product ‘trial’(4) drive sales(5) keep the programmers happyMathEngine! The 4 “P’s” of Marketing: (Me: Promotion)! Public Relations/Strategic Communications! Global Strategy: local tactics- PR firms/news media- trade shows- trade advertising- direct mail• Also, internal public relations- communicate benefit of PR- measure success/impact of efforts- ‘one big global family’ - unity [go-karts etc.]Internal PRTrade showsGame Developer ConferenceTrade shows & promotionsWhich one is Japan? U.S.?External PRNews coverage in U.S.:Mainstream/trade (‘blurring’lines)A Typical Press Club Layout - Each Desk Represents Individual PublicationsNewspapersReceptionBriefingTableRefreshment RoomNotice/ Schedule BoardPress Release Pigeon HoleSankeiShimbunNHKChubuKeizaiNihonKogyoNishinihonShimbunHokkaidoShimbunNikkeiShimbunTokyoShimbunNikkanKogyoAsahiShimbunKyodoNewsYomiuriShimbunJapanTimesJijiPressEntranceMediaJapanese “Press Room”No news coveragein Japan…Measuring Effectiveness of PR effortsMeasurable resultsTop “downloaders” from English-speaking countriesNeeded greater presence in Japan Were we a global company?MathEngine! How the story ends…- corporate identity: geek chic [but….]- raised company/brand awareness- encouraged product trial- but….only one sale “Yuki”Technology wasn’t ready. Market wasn’t ready.In-fighting at the top.Lesson: PR can’t do everything…Coca-Cola Case StudyCoca-Cola: centralized, ‘global’ (in U.S.)Tainting crisis of 1999; Western Europe“Crisis Communications”: reactive, proactive- influence of ‘cultural values’ on actions- Importance of localizing effortsCase study #3 Where is Belgium?Who are its neighbors?Coca-Cola Case Study! Cultural values: uncertainty avoidance- information & trust• Cultural values: power distance - powerless not forgiving of mistakesThese values influence corporate actions andconsumer behavior.Coca-Cola Case Study! The Tainting Crisis- June 14, 1999, Belgium- gov’t recalled product, despite tests- 200 people fell ill- June 15: Spain/France joined inCoca-Cola Case Study! Coca-Cola response[as a low power distance, low UAV company]- denial, no responsibility- publics: ‘mass hysteria’- 9 days before the CEO spoke[‘free Coke’, we’ll pay more attention]Coca-Cola Case Study! The public response- key stakeholders:[consumers, government leaders, shareholders]Coca-Cola Case Study! Consumers (Belgium, France,Spain) boycott! Governments were ignored- no research was done (e.g., health issues,Belgium)- Spain/France: authority challenged- France: bottling plant closed- Spain: bottles pulled despite local production- criticized for not speaking up sooner- no apologies made to the French- already pre-disposed against foreign companies5140576865PD6446868694UAVUncertaintyavoidanceMeanUSSpainFranceBelgiumCultural Values and RatingsRamifications for behavior?5140183131PD6446235029UAVUncertaintyavoidanceMeanUSADenmarkNorwaySwedenHow did other Western European nations react?[they didn’t]Coca-Cola Case Study! Shareholders- shares down everywhere June 15-24- 2q earnings, 21% drop, 3/4 q- CEO
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