• Toyota: A Cautionary Tale

    On Friday, the Washington Post sent out an early morning news alert to report Toyota has formed a committee to examine problems that led to two safety recalls relating to accelerator pedals on some Toyota models.

    Huh?

    Other news reports said much the same. After a two-week silence, a public battering by the media, and a recall that affects 8.1 million vehicles worldwide and could cost the company $2 billion in repairs and lost sales, Akio Toyoda (grandson of the company’s founder) said, “I feel we are in stormy weather… (we) must regain customer trust.”

    My first thought was along the lines of, “No, ----, Sherlock.”

    My second: “Where is his public relations counsel?”

    Of course, not even the best PR counsel can reverse time and undo the damage caused by inaction or the head-in-sand, hope-it-will-go-away syndrome. But what good PR advice can do is help a company navigate tricky communications channels to lessen the severity and length of negative publicity and, in some cases, keep an issue from becoming a crisis.

    So, what’s the difference between an issue and a crisis? Timing.

    There are almost always warning signs that companies have an issue. Inspections show standards aren’t being met, weak spots in protocols are ignored, problems aren’t decisively addressed. For example, the Blakely, Ga., plant of the now-bankrupt Peanut Corp of America, responsible for a 2008 salmonella outbreak in peanut butter that sickened 700 people and was linked to nine deaths, had a history of rodents, roaches, and sanitation issues according to a recent Atlanta Journal-Constitution story.

    Worst of all, records show the company had found salmonella in its products, but still sold them “a dozen times over two years.”

    Similar scenarios may or may not have played out in other recalls, including Toyota’s, but many post-crisis reports or investigations reveal issues that were ignored or purposefully dismissed.

    A communications crisis happens when issues become publicly known either because of accidents or outbreaks. When that happens, a company must address the internal problems and face the scrutiny of media, governments, consumers and employees. In an age of instant communications, a company often has hours—not days or weeks—to take decisive action and communicate that action if it hopes to minimize damage to its reputation and bottom line.

    Preventive and proactive actions are your best course of action. Address issues as they arise, and if the worst happens, have a plan in place so you can respond in hours—not weeks.

    This advice may seem obvious, but if a global company such as Toyota lacked a proactive plan, which others do, too?

     

    Keena D. Lykins is a senior account supervisor for Public Relations at R+K.

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  • Who needs Roger Ebert when we’ve got “Roger W.?”

    So, I was channel surfing the other day and a TV spot for an upcoming new movie ("When in Rome") caught my attention. No, not because the movie looks charming enough (it does) or might be a nice diversion on a Saturday night (it could). What got my attention was that the ad featured positive reviews and quotes from "real people," supposedly posted on Facebook.

    I'm sure this isn't a novel approach. But it struck me that in this new era of cynicism on steroids, your next-door neighbor might be the ultimate authority on matters of entertainment. Or local government. Or national security.

    Who needs Roger Ebert when we’ve got “Roger W.?”

    In fact, we have become so distrustful of powerful people, whether they be elected officials or Tiger Woods, that to hold power is a disadvantage. What really matters is what your best friend, or Commenter No. 8 on this morning’s Facebook post, think.

    The implications of this have already played out in the journalism world, where once-venerable news organizations have been scooped (literally and figuratively) by “citizen journalists” pumping out “news” via their bedroom computer. It is within this brave new world that a hoaxster masquerading as a CNN iReporter can post an item, unchecked and initially unverified, on CNN about the death of 15-year-old heartthrob Justin Bieber, and the tween world for a few days goes mad with speculation and panic. Calmer heads prevail after Justin tweets that he is, in fact, alive and MTV(!) confirms the good news under the headline “Justin Bieber: Not dead.” Good times.

    For those of us who toil in public relations, this topsy-turvy turn of events – where the power-brokers are persona non grata and the “unwashed masses” spout pearls of wisdom – poses some interesting challenges. When we pitch a media outlet, do we offer up the CEO or somebody who bought the company’s product for the first time yesterday? When we craft recommendations for a speaking platform, do we suggest the Ph.D. project leader or a research intern who just joined the company and has a “fresh take?”

    I’m being facetious (I think). We will eventually sort all of this out, ever-mindful that the rank-and-file more and more are the Ones Who Matter.

    In the meantime, I guess the upside is that maybe we’ll have to tolerate fewer “Best. Movie. Ever!” hyperbolic quotes from that local Fox affiliate critic in Albany.

     

     

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  • Time will tell if AG CONNECT Connects with Farmers

    Is there room for another ag tradeshow? The folks at AEM think so. That’s why they’re banking on Ag Connect to become North America’s true international ag show.  Ag Connect appears patterned after AEM’s widely popular CONEXPO and MINExpo shows. Many feel it’s our answer to Europe’s enormous Agritechnica show.

     The Show Floor

    As interested observers, R+K staffers Jim Haist and I attended the opening last week in Orlando. Temperature-wise, it felt like we never left Naperville. Mickey’s ears must have gotten frost bite as the mercury dipped below 30 degrees.

    Here’s our take from the show:

     

    Ag Connect resembled Commodity Classic-times-two more so than a mega-iron show. Crowd sizes seemed lighter and more geared to high-value prospects.

    While the numbers of attendees were lower than expected, farmers there had good opportunity to ask questions of company reps, and many were taking advantage.

    This was clearly an “iron” show, anchored by the usual players: Case IH, John Deere and AGCO. Each had different twists: Case IH’s used live events, and multi-lingual presenters, that packed its booth with onlookers; AGCO parked its traveling road show at its booth; Deere took a more traditional approach and enjoyed steady crowds.  An elevated classroom over a part of their display was an interesting idea.

    Perhaps most unusual to what we’re used to seeing at U.S. shows was the large number of unfamiliar names from overseas, most notably quite a few companies and distributors from China.

    Several niche and short line equipment companies and engine manufacturers were prominent.

    With crop input suppliers few and far between, Pioneer Hi-Bred’s relatively small exhibit stood out to us.

    Other players, such as soil nutrient suppliers and specialty tool makers, got better attention than they may have at larger shows.

    All the exhibitors we talked to were most excited with the international customers and prospects they met with. This international reach is what many said will keep them coming back.

     

     

    As with any event, what’s most interesting are the people you meet. For us, one such person was Troy, a mid-sized farmer with a big-scale custom operation. Right after spring planting, this Midwest based farmer runs a custom forage cutting operation stretching from his home to Florida. And he takes the scenic route.

    He roads much of his convoy of heavy equipment cross country. While the view from the cab may be nice, a road speed of 30 mph gives new meaning to the term “Are we there yet?”  For his crew’s sake, we’re hoping he opted up for the XM radio.

    Meanwhile, AEM, as well as its 300 exhibitors, are hoping to see operators like this custom harvester and many more of his friends - at next year’s show in Atlanta.

     

     

     

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  • Food channel predicts "back to basics" will lead food trends in 2010

    Food channel predicts “back to basics” will lead food trends in 2010.

    Forecasts for 2010 are as common as snow this week, ranging from predictions of Peacocking (wearing bright colors to offset the gloomy economy) to Lifeswapping (trading homes, clothing, services to make it seem as if you have more than you do).

    The Food Channel joined the group of forecasters Monday with its release of the top food trends for 2010. Only time will prove them right (or wrong) but here’s the countdown to the Food Gurus’ No. 1 trend:

    10. I, Me, Mine—personalizing portions, the parallel trend to collectives and communal eating, is reflected in the growing number of individual-size foods, restaurants that let people choose their own ingredients, and making our own specialty desserts. It’s not about portion size, but about food that reflects personality.

    9.    Will Trade for Food—bartering for consumables—a box of tomatoes in exchange for babysitting—will become more common as technology makes it easy to connect and many of us have more time than money.

    8.    I Want My Umami—today’s foodies are less obsessed with snob appeal and more interested in fun experimentation, such as combining exotic or expensive ingredients with everyday items, i.e. lobster with mac and cheese.

    7.    Food with Benefits—“functional” foods aren’t new, but will continue to proliferate as more consumers demand beneficial foods. Examples are chocolates that reduce acne or Nestle’s new Nescafe creamer with collagen.

    6.    Mainstreaming Sustainability—more Americans will adopt sustainable practices, such as eating locally sourced, seasonal foods and buying products with sustainable/biodegradable packaging.

    5.    Food Vetting—food sourcing issues ranging from Fair Trade to organics to mercury-free fish will continue to grow in importance.

    4.    American, the New Ethnic—American food is made up of a growing number of ethnic staples and favorites. And we love it.

    3.    More in Store—grocery stores will see growth in private label, a revival of emphasis on the in-store butcher, and upgraded delis and fresh take-out sections. Frequent purchases of fresh meal ingredients will become more common as a means of making meals special and minimizing waste.

    2.    Experimental Nation—expect more growth for gastropubs, fusion dining, "shareables" and communal tables, and those built around "fresh" and do-it-yourself themes.

    1.    Keeping it Real – It’s determining the essentials and stocking the pantry accordingly.  The focus is on buying quality, basic ingredients and building a menu from there.

    Keena D. Lykins is a member of the R+K Food team, which offers food manufacturers and marketers a fresh perspective and measureable communications solutions that work today yet are flexible enough to endure.

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  • What we can learn from The 100-mile Challenge

     

    Earlier, I blogged about The 100-mile Challenge, a reality show on the Plant Green channel. After viewing all the episodes, I must say, it turned out better than I predicted for the denizens of Mission, British Columbia, who ate only locally grown and produced food for 100 days.

    In practical terms, that meant no coffee, bananas or wine, as well as no processed foods like potato chips, chocolate candy bars or boxed macaroni and cheese. The challenge also meant a lot of cooking from scratch—a skill most participants (and many of us) lack. But the people were convinced it would be a healthier way to diet and benefit the planet by reducing their carbon footprints.

    Some key things that participants found:

    • Grocery bills initially doubled, but returned to slightly above normal once participants learned to cook
    • Carbon footprints actually increased. Participants often had to drive to the edge of the 100-mile radius to find "local"
    • Sourcing and preparing local food required a lot of time. A lot. Their days revolved around food, even to the point one participant took a vacation during the challenge to have more time for "hunting and gathering" activities

    Despite a brief furor over a loophole that allowed one couple to have coffee while traveling, all of the participants eventually admitted to indulging in forbidden foods—cake, coffee and fast-food burgers—when out of town. Not surprisingly then, Day 101 saw the immediate return of coffee, salt and other "global goodies" to the pantry.

    And though no one planned to stay on a 100-mile diet, the food industry can still glean useful information from the experiment. In post-challenge interviews, all of the participants said they planned to keep most of the habits developed during the challenge, i.e. fewer meals-from-a-box, more fresh foods and more home cooking. In general, most said they'd eat about 80 percent local.

    That's a significant chunk of a grocery bill, and while the Challenge may seem like just another reality show, the food industry needs to pay attention to this trend.

    Wanting "locally sourced" food on the menu is a distinct trend among consumers, according to the November issue of Prepared Foods in its annual statistics, trends and new products report, and a quick Google search shows that awareness of our carbon footprints and assumptions that "local is better" are firmly planted in the public's conscious.

    Not sure how to respond to this trend? Start small. In many places, the infrastucture doesn't exist to make a local-only diet feasible, but by adding a local food section to your shelf or menu, you can meet your customers' interest in local foods and measure their commitment to the movement. Also, an informal survey—or just chatting them up during a sampling event—can provide ideas of how to (or if to) incorporate local foods into your offering.

    Oh, and there's one other reason you should be aware your customers might come looking for local food. All the 100-mile participants except the most rampant "cheaters" lost weight, a few dropped 30 pounds or more. Most chalked it up to eating differently rather than less. Can the local-food-only weight-loss program be far behind?
    Keena D. Lykins is a member of the R+K Food team, which offers food manufacturers and marketers a fresh perspective and measureable communications solutions that work today yet are flexible enough to endure.

     

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  • RIP. Smart Choices label we barely knew you

    A few months ago, I wrote about the new Smart Choices nutrition label and how it’s not such a smart choice for consumers. The goal of the new nutrition label was to provide easy-to-understand, at-a-glance guidance for consumers who want to make better choices in the grocery aisle.

     

    My opinion was—and still is—that consumers know a “smart” choice from a poor one when it comes to food. The average person simply prefers the flavor and convenience of the less healthful choices.

     

    However, I missed the real story about the label, but the Food and Drug Administration didn’t.

     

    In late October, the FDA stated the label is misleading. The thinking is: when Froot Loops, a highly processed, sugar-filled cereal, meets the nutrition requirements of the Smart Choices Label there’s something wrong with label requirements.

     

    It seems food manufacturers followed the letter of the label—but not the spirit.

     

    According to news stories regarding the FDA statement, the Smart Choice’s nutrition standards are too lenient. Critics say the program is an attempt by food companies to bill processed foods as nutritious.

     

    As a result, food manufacturers behind the label have “postponed” active support of the label while the FDA investigates labeling issues. And Kraft has said it will phase out usage of the label.

     

    So what is the lesson here? Simply: Don’t put a pig in a dress.

     

    Not every brand is healthful—and our advice to marketers is to not “stretch brands” to fit into a category they do not belong in. Consumers won’t be fooled and neither will the FDA.

     

    Keena D. Lykins is a member of the R+K Food team, which offers food manufacturers and marketers a fresh perspective and measureable communications solutions that work today yet are flexible enough to endure.

     

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  • Spread the love.

    It was a glorious day last Wednesday when the office gathered together to share our mutual love for dips. It was R+K’s annual “Just-for-the-love-of-dips” contest proving once again that dips are not just for parties or dining out.  A banquet of homemade, delicious creamy, saucy, spicy, warm, cold and tangy dips became our lunches for the day and the highlight of our week.

    Why do people love dips so much? Is it because it’s a restaurant dining experience they don’t get as often in this economy? Is it a comfort food or an indulgent food? Whatever the reason, dips and spreads are growing in popularity with consumers yet they aren’t a necessary purchase and tend to be impulse driven.  To get them on a consumer’s grocery list, you need to give consumers a reason to buy. Positioning a product as unique, healthy, comfort/indulgent or as a versatile snack might just turn dips and spreads into a household staple.

    If our own internal Dip Day was an indication of consumer trends out there, a basic salsa isn’t topping the favorite list (I didn’t win L) and instead people are opting for more unusual, creative and complex dips including hummus, reuben sandwich and jalapeno popper dip. 

    The winners of the “Just-for-the-love-of-dips” contest:

    • Best Appetizer Dip: Stephanie Soesbe – “Fire Roasted Corn Dip”
    • Best Appetizer Dip: Bonnie Heinsohn – “Jalapeño Popper Dip”
    • Most Creative (Presentation) - Valerie Holland – “Crab Dip”

    Claudia Zellmann is a member of the R+K Food team, which offers food manufacturers and marketers a fresh perspective and measurable communications solutions that work today yet are flexible enough to endure.

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  • A different type of food challenge

    There’s an interesting little show on the Planet Green channel that has sucked me in like a cosmic vacuum. It’s the 100 Mile Challenge.

    The premise is the people of Mission, British Columbia, will eat “local” for 100 days. And from what I’ve seen so far, it’s going to be a loooooonnnnnngggggg 100 days without coffee, sugar, salt, and beer. But the people are convinced it’s a healthier way to eat, not just for them but also for the planet.

    Now there are advantages to eating local that the food industry can’t afford to overlook—and smart operators don’t. Not only does local sourcing provide fresher food and lower fuel costs, but it also appeals to consumers who tend to be passionate about food and healthful eating. These consumers tend to be willing to pay more to a price premium on premium goods.

    But the show also reminds us of why we have such an extensive food system in place in the first place. Think about it. Although it varies by geography, chances are the bulk of what you eat and drink probably doesn’t grow within 100 miles of you.

    For me, contraband would include coffee, orange juice, olive oil, almonds, spices, any fresh, out-of-season produce (unless it comes out of a green house) and probably most staples, such as sugar, salt and wheat.

    I’m not taking the challenge because I must have coffee, but it’s interesting to watch the people of Mission, B.C., struggle through the challenge. I laughed when a couple rhapsodized about a few sips of coffee after they found a “loophole” in the rules. However, when others freaked over lack of sugar and salt and resorted to raiding beehives and taking home buckets of seawater, I decided the blithe way these reality-show participants entered the challenge is indicative of the real issue facing our agriculture and food industries.

    It’s not where our food comes from or how it’s produced, it’s the lack of knowledge the average person has about where their food comes from.

    Whether a person eats organic, only locally produced food or nothing unless it comes from a can or box, he or she should understand exactly what is on the table and how it got there. Knowledge is critical to make informed decisions, and before anyone decides to “go local” or eat only organic, she should understand what that really means, as opposed to what she thinks it means.

    Otherwise, someone could be as surprised the residents of Mission, BC.

    So, would you take the challenge? And if you did, what foods would be off the list?

    Keena D. Lykins is a member of the R+K Food team, which offers food manufacturers and marketers a fresh perspective and measureable communications solutions that work today yet are flexible enough to endure.

    Keena D. Lykins

    Senior Account Supervisor, PR

    Rhea + Kaiser Marketing Communications

    direct: +1-630.955.6655

    office: +1-630.505.1100

    mobile: +1-312.799.0106

    fax: +1-630.505.4670

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  • Quick take on fast food

     

     

     

    • What’s the freshness date on a fast-food campaign?

     

    • McDonald's is still lovin' it? Did somebody say "new creative"?

     

    • Every so often, Burger King sneaks in the well-worn "have it your way," just to give consumers a taste of that old-timey ad magic.

     

    • Not to be outdone, someone in a McDonald's meeting today will scribble these words on a legal pad: "You deserve a break...2010!"

     

    • I don't know if Wendy’s is “w-a-a-a-y better than fast food," but their campaign is w-a-a--a-y better than the guy with the red pigtails.

     

    • Subway. I'm not a fan, but can we all admit that the “five-dollah-foot long” ditty was ingenious? (Sing it for me, people!)

     

    • Subway employees sampling and lamenting Domino's new toasted sandwiches? Kinda funny.

     

    • No matter how much they push "Louisiana," consumers will still "love that chicken – and corn on the cob on a stick – from Popeyes."

     

    • Buona Beef. Buona-fied. Buona-fed.

     

    • The fast food/QSR lines are blurring. You can get cheesecake through the drive-through window and sliders at Applebees.

     

    • Speaking of sliders, is White Castle a generational thing? Are teens craving those fluffy buns and square, meat-like burgers? Mine isn't.

     

    • The Panera's and Portillo's of the world are the fast-food/QSR hyrbrids. The FFSR?

     

    • Pizza Hut had a baby and named it...WingStreet? C'mon. We've could've done better in a ½ -hour ideation session.

     

    • The marriage of Long John Silvers and Taco Bell. Someone at Yum! Brands must like fish tacos.

     

    • Long John Silver's. "Go overboard"? Or "go someplace else"?

     

    • Taco Bell. "Think outside the bun." Slogan-y. But like it or not, consumers remember slogans.

     

    • Culver's. Great food, service and, especially, frozen custard. But "Get Culverized" should've been pulverized.

     

    • Prediction: Jimmy Johns will outlast Quiznos. At least in this Chicago. Better spots. Better subs.

     

    • Who will win the Jimmy John's / Potbelly battle? Anyone?

     

    • Steak 'n' Shake. Even if you remember "tak-hom-a-sak," chances are you haven't taken one home in a while.

     

    • Fast food: Made fast, served fast. And to be sure: eaten fast. Often while driving. (Or blogging.)

     

    Gene Payne is a member of the R+K Food team.

     

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  • Some thoughts on research...

    In marketing communications, we often rely on research, primary and secondary, to gain an understanding of what our target audience and what motives people to take action, whether that action is trying a new product or buying it for the 100th time.

     

    But the dirty little secret of research is it can say almost anything you want it to say—rendering it useless unless you know exactly what you’re looking for.

     

    For instance, a recent study in the Journal of Epidemiology and Community Health confirmed what many of us already knew or suspected: a healthy diet of fish and vegetables is more expensive than one of burgers and fries. These unsurprising findings came from a study that followed more than 11,000 Spanish university graduates with similar levels of income. Those who ate a predominantly “Mediterranean” diet (i.e. fish, lean meats, olive oil, legumes, fruit and vegetables) spent more money on food than those who ate typical Western meals (i.e. red meat and foods high in sugar and saturated fat).

     

    A second study—released by Mintel Oxygen Reports—reported at the same time that salty snacks sales have risen 22 percent during the economic downturn. Again, no surprise. When pennies count, shoppers tend to buy the most filling foods that cost the least.

     

    And yet a third study shows that Americans are refusing to sacrifice quality, value and nutrition to save money on food and health during the current economy. According to the IBM press release, 72 percent of respondents are more concerned with quality than price during their trip down the aisle.

     

    So what do these studies tell us? Nothing and everything.

     

    As we tell our clients, there’s no such thing as “the consumer.” Yes, there are some general factors that run through different subgroups; ultimately, though, each person interacts with a brand on an individual basis for a myriad of reasons that they may or may not be aware of. They need to pay attention to these reasons, not just the behavior.

     

    The keys for successful development and use of research that will illuminate reasons are:

    • First, know your communications goal. If you don’t know where you want to end up, you won’t start in the right direction.
    • Second, focus on the right target audience. Every food client I’ve ever worked with wanted to target the18- to 34-year-old woman, preferably those with 2.5 children, and a household income greater than $45,000. In reality, many would have been better served to narrow their priority market to those most likely to use their product.
    • Finally, take your cues from your current customers. Where are they seeking information? How do they use the information they find? Customers (a.k.a. word-of-mouth) are the best marketing you can have.

     

    By focusing on your goals, the right target, and current customers, marketers can ignore the vast amount of conflicting research available and focus on the data that will lead hem to the people who are most likely to become loyal customers.

     

    Keena Lykins is a member of the R+K Food team.

     

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