Crisis Marketing

Crisis Marketing Controversial Products or Services

By Daryl J. Orris, Ph.D.

President and CEO, The Ice Cream Bar, Inc.

 

I am writing a book on Crisis Marketing. Not Crisis Management, which is a term used in Public Relations to denote techniques and methods to deal with crisis situations faced by organizations, and associated action plans to avert crisis, and pre-plans to take effect should a crisis occur.

 

No, not that, but Crisis Marketing. The marketing of controversial products or services.

 

I am looking for input into the text from people who have direct experience doing this, or have ideas that build upon my basic thesis.

 

I am the inventor of Liquor Ice Cream. Blend’s® Liquor Ice Cream, the world’s first liquor ice cream and the world’s first frozen solid distilled spirits product was invented in 1993.

 

Using the experience gained from marketing Blend’s® I hope to draw out an entirely new Crisis Marketing text that assists those who have the task of marketing controversial products or services. Had such a text been available to me it could have assisted in catapulting me over many brick walls, saving both time and money.

 

I am the inventor of Liquor Ice Cream. When I first contacted The Bureau of Alcohol and Tobacco (ATF) in 1993 they flatly said you cannot make a liquor ice cream. They wouldn’t allow it. An attorney friend who with an inner-loop Washington DC law firm said if the ATF says you can’t do it , you can’t do it. He then cited examples of people who have registered Marijuana formulas and labels in hopes one day it will be legal. Alcohol is a controlled substance, controlled by the U.S. Government, so you can’t do it and there is no recourse.

 

This sets the stage for Crisis Marketing. For as it turns out, I am marketing an illegal product to the Federal regulatory agency, that regulates such products.

 

So to progress I had to develop a “Crisis Marketing” Plan of Action to get the government to approve Blend’s®. The basis of the plan was the fact that Ice Cream Drinks, such as the ones I propose are made everyday in homes and bars and restaurants throughout America. In America we have a legal principle known as equal protection under the law. Therefore, if Licensed Bars can sell ice cream drinks, consumers can legally make them at home, and Liquor Companies and Ice Cream Manufacturers legally provide the ingredients, why can’t I legally produce and market ice cream drinks too?

 

Of course I can. That is if the “Crisis Marketing” Plan of Action is well prepared and the strategy on target. The first task was to gather information about the product itself, its history and current use in America. Surprisingly, Ice Cream Drinks such as Grasshoppers, Brandy Alexanders, White Russians, et. al., have become a part of the American lexicon. Ice Cream Drinks are uniquely American inventions. Their beginnings stem from milk punches of the Elizabethan era.  But Ice Cream Drinks as we know them in the U.S. begin in Ireland. The Irishman would take his first whiskey of the night, half cream and half whiskey, known as an Irish Cream. The Irishman would point to the healthy aspects of the cream, but many believed he was coating his stomach to allow him to drink more whiskey. Like when frat boys drink salad oil before a beer kegger. The same idea is in operation here. When the potato blight hit Ireland and the Irish immigrated to America they brought with them their unique habit of taking their first drink as half whiskey and half cream.

 

In time, the 1920s, ice was added, and blended together to create a gelatinous mixture known as an Irish Cream. Then when women began coming into bars they saw the cocktail. But upon tasting it, it was far too strong, so the attentive bartender sweetened it up with Crème de Cacao and the Ice Cream Drink was born. Soon after ice cream was exchanged for the cream, and new cocktails were born: Grasshopper, Brandy Alexander, Golden Caddy, White Russian, et. al.

That represents a quick history primer for Liquor Ice Cream Drinks.

So Ice Cream Drinks are uniquely American and also ubiquitous. From these basic facts I began dealing with local ATF Agents who would say no, and no again, ultimately referring me to ATF in Washington. Again, the same stonewalling, you can’t market and produce Ice Cream Drinks, and if you want to, buy a bar and make them to sell. I told them I want to sell them to bars for them to resell to their customers. Again a firm no from the regulatory agencies.

I had experience marketing beverage alcohol products in advertising. I was agency of record for Phillips Products Company, America’s largest independent distributor and distiller of distilled spirits products. And I had done project work for distillers and vintners in California. So the marketing of beverage alcohol products was not new to me, but marketing ice cream drinks was.

Blend’s® is a new dairy technology that allows the mixture of 20% distilled spirits with 80% ice Cream. Like a traditional distilled spirits cocktail. What makes Blend’s® different from the semi-soft, milk shake like ice cream drinks made up individually by bars and restaurants and those made at home is that Blend’s® is frozen solid like ice cream. Blend’s® brings a new convenient form, and because the Code of Federal Regulations Title 27 specifies that distilled spirits must be plus or minus, .05% accurate in its label declaration a new consistency never before known. Every drink made by bars and restaurants and at home have different alcohol content and ingredients. So Blend’s® is consistent quality in a convenient new frozen solid form.

 

I began ignoring the rejections from AFT Officials and filed the appropriate forms and paper work required to receive a Distilled Spirits Basic Permit to legally manufacture, market and distribute Blend’s®. The application was rejected and I was stonewalled as to why, other then you just can’t, that is why. I turned to Senator Paul Wellstone from Minnesota for help. When Senator wrote to the ATF Director, suddenly it was discovered that we could receive a Distilled Spirits Basic Permit. Suddenly an ATF Agent appeared at our doorstep and new the methods of manufacture and how these rules applied to ice cream drinks. In 1999, six years after we first contacted ATF, we were legally allowed to produce, market and distribute Blend’s® Liquor Ice Cream. It took ATF and FDA one year to determine who would regulate the product. ATF would with FDA review and supervision. We are also regulated by the State’s Departments of Agriculture in the states that we would have production plants, require to get Distilled Spirits Manufacturers licenses and permits.

 

But before that occurred I had to learn Crisis Marketing to the regulatory agencies in order to get approval. That was the name of the product, package design, marketing materials and promotion. Originally the ATF and FDA said we could not use the words “Ice Cream” with our product because we added alcohol to it and it is now distilled spirits. So I named the corporation “The Ice Cream Bar, Inc.” Because the company name is required on the label, the name of the producing company must be on the label. Soon ATF and FDA dropped the no “Ice Cream” on the label. The ingredient statement for Blend’s® Grasshopper reads: Crème de Menthe, Crème de Cacao, Ice Cream, natural flavors, certified colors.

 

Crisis Marketing meant that the packaging, all promotional materials, including the website (www.blendsicecream.com) had to pass ATF and FDA rules and regulations and approval. So The Ice Cream Bar, Inc., (ICB) was really utilizing Crisis Marketing to gain regulatory approval.

 

Suddenly, everything from a marketing perspective was hinging on regulatory overviews. Then long before the product was in the marketplace, critics began calling and articles appeared that were negative about the new product. Social Action Groups such as Mother’s Against Drunk Driving, religious right organizations like Baptists, were saying the product was an abomination. Suddenly the AFT created a Proposed Rule Change PRM 82, that sought to ban products that caused consumer confusion. But fortunately for Blend’s® Haagen Dazs had stolen the concept and began marketing its own line Cordials, ice creams flavored with distilled spirits, a Bailey’s Irish Cream flavor, Amaretto, and repackaged their rum raisin. I complained to ATF that apparently if you are a large English Corporation you don’t have to worry about consumer confusion. Here these products contained less than one half on one percent alcohol and could be legally fed to babies. Compare that to Blend’s® with 20% distilled spirits, you’d be jailed for child endangerment.

 

FDA made Haagen Dazs withdraw the products and ICB received label approval and the new product was launched into test-market in Wisconsin.

 

The marketing strategy for the test-market was no promotion at all. Warning signs that said - GOVERNMENT WARNING: ATF and FDA have determined that Blend’s® are distilled spirits and therefore intoxicating. Blend’s® can only be sold to and consumed by legal adults.

 

This appeared on our marketing materials. The government did not require that statement, I wrote it as a marketing device to distinguish Blend’s® from all regular ice creams. After all there is only one intoxicating ice cream in the entire world. Both agencies soon contacted me and said only the government can make government statements. So none of this is true I replied? This is what ATF and FDA said I had to do when marketing the product, so putting in the form of a warning is wrong? How else can we communicate this important information? ATF and FDA soon agreed and understood that it was intended to warn people that this was distilled spirits and not ice cream – even though it looks exactly like ice cream, it is distilled spirits – one taste says it all.

 

That is Crisis Marketing. Package design, Branding, positioning, and promotion. The name Blend’s® was straight forward, a blend of distilled spirits and ice cream. The logo design was to mirror Coca-Cola a brand that evolved during the same time frame as ice cream drinks did. So we mimicked the Coca-Cola logo and modernized it enough to be marketable. The package design was all created to give a look of distilled spirit products, appealing to our target consumer, adult women.

 

When ATF challenged the packaging, stating that it would attract children and under-aged consumers, I solicited several package design experts from General Mills who design packaging for children to give a professional review of the Blend’s® packaging. Their review discussed how packaging is design to attract children and how the Blend’s® packaging did not. Instead they remarked on how the packaging was intended to attract the target consumer, adult women. ATF could have solicited its own experts in package design, but they would have said the same.

 

This is a component of Crisis Marketing, where the packaging was designed for regulatory agencies instead of consumers. It irks me to this day. Once the product is known, a redesign can take place. All of this is to illustrate how Crisis Marketing was employed to comply with regulatory agencies and to placate critics.

 

The text that I am writing uses the experiences gained from marketing Blend’s® and is organized with an overview of Crisis Marketing, an explanation of the problem. It provides specific methodology and techniques to be used in Crisis Marketing from brand creation and promotion to public relations. And I hope to add other product and service

Examples and the experience learned by marketers and managers from marketing controversial products and services.

   

So as you can tell fifteen years of experience in Crisis Marketing has given me insights and experience that may be useful for future marketers faced with the same dilemma that I have faced. It is hoped that this text will assist them by helping to make their efforts more effective and affect their target consumer in a way that builds on the negative aspects of their product or service by serving as a conduit that spurs trial and develops consumer loyalty despite any negatives the product or service may have.

 

Crisis Marketing Outline

 

I.               What is Crisis Marketing and What it Isn’t

A.    Marketing: A Focus on the Consumer

B.    Ethics and Social Responsibility

C.    Consumer Behavior

D.   Branding

E.    Markets and Buyer Behavior

F.    Market Segmentation, Targeting and Positioning

G.   Relationship Marketing

H.   Developing and Managing New Products

I.      Price Analysis

J.     Marketing Channels and Wholesaling

K.   The Strategic Marketing Process

L.    Planning; Implementation Action Plans

M.  Selling and Sales Management

II.             Social Science Framework

A.    Integrating Theory and Practice

B.    Marketing Controversial Products or Services

C.    Examples of Crisis Marketing

III.           Marketing to Our Critics

A.    Defining Mission

B.    Specifying Organizational Objectives

C.    Identifying Opportunities

D.   Goal Setting

E.    Planning Phase

F.    The Marketing Program

IV.           Body of Knowledge

A.  References to Crisis Marketing  

V.             Elements of Crisis Marketing

A. Comprehensive list of Elements

VI.           A Systems Approach to Crisis Marketing

A. Systematic approach from concept to end effect

VII.         Defining Strategic Goals and Objectives

A.    Situation Analysis

B.    Determining Objectives

C.    Developing Objectives for Effect

D.   Budgeting, Costs, and Implementation

VIII.       Evaluation Methodology and Techniques

A. Evaluation Methods

B. Evaluation Techniques

IX.           Legal Implications

A. Legal Aspects and structure

X.             Media Relations and Objectives

A.    Media Action Plan and Program

B.    Internal Communications

C.    Public Affairs and Government Relations

D.   Publics: Consumer; Critics; Environmental; Activists Groups; Minority Publics; and Regulatory Agencies

E.    Education Systems and Evaluation

XI.           Promotion

A.    New Media

B.    Public Communications Campaign

C.    Branding and Positioning

D.   Advertising

E.    Sales Promotion

F.    Merchandising

G.   Press Releases

H.   Press Conferences

I.      Press Kits

J.     Lobbying

XII.         Summary

A.    Crisis Marketing

B.    Evaluation Methodology and Techniques

 

Any input or ideas are welcomed.

 

 

 

    

 

      

Fun in Advertising.

What follows is an article by Bart Cleveland about Agency Marketing, even though he is not aware of it. Read Bart’s take, then my take on what he wrote that follows.

How Love for the Work Overcame a Minuscule Budget
A Production Company Reminds Me How Much Fun This Can Be
Posted by Bart Cleveland on 08.20.09 @ 02:58 PM

I am working on a commercial with a minuscule budget. It's a very simple idea, so we should be able to pull it off with a little help from the right production company. We bid it out and get enthused responses. This gives me hope that this micro-budgeted creation will live up to its potential. Then a new contender emerges. Someone not previously on our radar, recommended by a friend. I look at the reel and think they have too much high-budget work to be interested in my little job.

To my surprise they bid the job. When we review the storyboard with them they are so enthusiastic and so full of ideas. I believe the budget can't support most of what they say they want to do (they insist they can do it), but their enthusiasm blows me away. We wait for the number, supposing it will be much higher than the range we gave them. To our surprise, the bid came in line with the budget. So they get the job and we meet face-to-face. The enthusiasm continues with even more ideas to enhance the concept. All of this attention prompts me to ask one of the company's partners why they are willing to go all out on such a small job. He said, "Your budget is your budget, but your idea is an opportunity and the timing is right. It will be a great spot." This is too good to be true. These guys really can't be about the work first. Maybe they're just desperate? I'm confident that there will be a call for more money. It always happens that way. It didn't.

The final pre-production meeting with my client begins. The director is showing the shooting storyboard and costumes, skillfully describing the final spot. His energy is infectious. My client is ecstatic. My creative team is more excited than ever. I lay in my hotel bed that night thinking how long it's been since I've had this much fun.

The next day we shoot the commercial. I'm feeling a little uneasy. When will the disappointment come? When will the façade fall? It doesn't.

Passion gets permission to come out and play. Though we're on a tight schedule, we are able to polish the work because the crew is running like a Swiss watch.

It's been a while since I've worked with a company so on fire about a job. Granted, with my small budgets it's understandable. But this company obviously loves what they do. They are successful, so it's also obvious they know getting paid is important. But maybe to them the thought of being paid well for bad work leaves an unpleasant taste in their mouths? Maybe making great work is just too much fun to pass on? No matter what the reason, I'm grateful to be the recipient of such good fortune.

Just when I thought the passion to do work for the work's sake was all but dead, these guys prove that the belief in the importance of quality work is alive and well. They made me look in the mirror and ask myself if I'm giving the same effort to my clients.

Who am I talking about? Zoic Studios in L.A. Check them out. You'll count your blessings if you get the chance to do something with them. They make creating fun again.

ORRIS COMMENTS:

Dear Bart,

Fun? Or is what really happen is that you let a competitive agency get its foot in your client’s door?

I’d say the latter. It is smart business in a down time to underbid and win business. The opportunity to show your effectiveness is critical in winning new business.

This astute (agency) executive saw your agency as a conduit to your client and to eventually win that business – or to get experience within that business segment. Once armed with examples of work done for your category one can go to category competitors for work.

Bart, there is no doubt that you cleared this article with your client first. Giving the agency even more credibility and more opportunity to displace you.

In thirty years of business I never obtained a business relationship with a new client without first displacing an existing agency. Until I created my own product and company. It is the way our business works. Everyone is looking for an in, and everyone believes they can do better then you can.

I also have never heard of a production house without creative. They need you to get to your client. Sure an agency is a client, but so are your clients, you are a middleman to them.

This is a cutthroat business, worse in economic downturns.

So Bart, you gave these nice fellows an entrée to your client, and to the business you have. That’s the way it works. If they are not ambitious enough to go after your client, they’ll go after your competitors who will in turn go after your clients. Every production house takes your work and shows it as their own. They show it to your competitors, to your client, to your client's competitors, and to anyone who can belly-up with money. And your part in the work is not mentioned unless push comes to shove, then they reveal what you did and they did. But that rarely happens. What you see is what you get.

I was amazed when several prospects said they’d seen the work I was showing them and said we didn’t do it. I would have to go back to our files and dig out all of the work that went into developing the spot to prove who did what, and then get the client to prove it. Although on the dozen or so occasions that I had to do this, I won business as a result. It was a great sell to go through the creative development of a project from the first client meeting to the final product, which obviously they like because they remembered it. And best of all you did it and now they know how you can do it for them.

Just who does what in our business is becoming more blurred as desktop publishing tools and peripherals are improving along with software so that the need for high-end production dissipates as a result. By finding a sound studios to rent, and then a few freelance film and sound guys with their equipment, where you put together a team is the only way around that -  or do it yourself. Production houses are pitching economy by cutting out the agency and telling the client to work directly with them. There is no contractual agreement that I know of where an agency can get a sub-contractor or supplier to keep their hands off your client and business with them. When it is all said and done it is the creative that did everything, not the production - at least that is what we'd like to believe.

Here Bart did everything he could to open that door to the client. I would tell clients who were impressed with a production house or photographer that of all of the people we use, we selected them because of this project and would tell them we could have selected several less expensive, but that our Art Director felt these people couple get his ideas across on film. I would bring clients to shots and introduce them to my Art Directors, who in turn introduced the production people and then take charge of the sets. It was always clear to my clients that WE were in charge and we were making everything happen. That was discussed with the production people prior to any client showing up. We are the stars, and they (the client) are to be happy and have fun. We encouraged clients to join in and make comments. To take ownership in the process. After all they are paying for it.

I would always get a minimum of three bids on every project and talk about our decision with the client and let them know that each had different strengths and weaknesses – and most importantly costs. It seemed monotonous but our estimates were guaranteed up or down, plus or minus 10%. As an agency we were never known as cheap, but we always came in on budget. 

We took all the credit for our work, and of course thanked our various suppliers. But always let the client know where the creative came from as well as the expertise to produce the finished product.

When I was pitching new business with Fortune 100 Clients, I was amazed at how much of our work was in the client’s files already, supplied to them by production houses after work.

There is no distinction between a production house and an agency to a client if there is no long-term relationship. My former partner said ‘what you see is what you get.’ Meaning that people look at the end product and the people who show it to them. Every client wants to cut out the costly agency if possible. And if they get the idea that the production house can do the job just as well, well, it’s curtains for the agency.

I remember when the Pillsbury VP of Advertising called me in to tell me that we won agency of record for Pillsbury Microwave and for Green Giant. Wow, that’s great. But there was a catch. He said we have started our own media-buying agency, in-house. Meaning that Viking Creative Concepts gets to do the creative and production, sans media placement and commissions. We went from an agency that had 90% of its billings in media advertising to one that ended up with 10% from media advertising. Pillsbury had turned us into their production house. Albeit, they also tossed Leo Burnett and several other high-end agencies out the door, leaving us to fight for scraps.

Clients undercut agencies all of the time. Agencies undercut production houses all of the time and they in turn do the same. “There is no honor among thieves,” is true. Zoic Studios I am sure are as good or better then you state. But your advertisement for them just lost you a production source. Now you probably won’t be able to get booked next time you need them. And what business do we get that can wait - or where we get to create the schedule and deadline?

But the upshot of my comments to you Bart is that you never ever do what you did. Publicly acknowledge a singe supplier. Agencies have to take the credit always. You thank the production house privately and reward them with more work.

When it is all said and done, it was your agency that did the creative and put this whole deal together. Creative is all that we sell, and how we produce it taking mark-ups along the  way. Clients understand these mark-ups and of course if they eliminate them they reduce their costs and extend there promotional budgets.

Now to the “fun” part of what you wrote. That is the way this is suppose to work. I always told my employees and students: “If you are not having fun in Advertising and Public Relations, then you are doing something wrong. Because this is suppose to be fun.” When it is done right it is fun, how can a creative enterprise be otherwise?

You saw an organization that was doing what everyone in our business should be doing, being professional and having fun doing it. Where People can hardly wait for tomorrow and the next project. That’s the way it is suppose to be. Or they staged this production for your benefit.

Marcus Aurelius (121-180), said: “The Happiness of Your Life depends upon the Quality of Your Thoughts.” It sounds to me that these guys have figured that out. Now, if you could bottle it, and give a dose of it to your agency and to others …

How many times have we heard people say, it stopped being fun? When they say that they usually quit and move on. Is fun what it is all about? I think so. Put together the right team and they have fun doing what they do best, like Zoic.

Back to business. Zoic made the experience of hiring them fun for you. We are in the “Fun” business. We make stuff. Fun stuff. Whether it was an act staged for the client, or genuine, it worked on you.

I would sit with all of my new employees and tell them that most PR coming from agencies comes from you. Talk us up, and improve you job and this agency. I would impress upon everyone at our meetings that we want our clients to be happy, to do what they want and then give them even more to be happy about. 90% of the time we would come in under-budget. And that was no accident. We do our own PR and the PR that comes from you is called word-of-mouth, it is the best PR there is, so do it. In time we all believed it too.

Zoic is practicing good agency PR. If you have to stage it for your clients do it. Tell the agency that we may be putting on an act now, but in time it won’t be an act, we will be having fun. In time it works that way. Be flexible and listen to your people.

Many of the suppliers we had told me candidly after many years of working together just that, you guys have fun, and are the best. It was once an act for the clients, but in time it became our reality. Just like Marcus Aurelius, 121-180, said: “The Happiness of Your Life depends upon the Quality of Your Thoughts.” Think happy and be happy. Think fun, and have fun.

It’s a big part of agency management, and client relationships – and building business. It's contagious if you give it a chance.

©2009 Daryl Orris

MAC's cow campaign

What follows is an Ad Review from Wouter Boon on a McDonald's Campaign and my response to it.

McDonald's Dutch Strategy: At Least We Don't Use Kangaroo Meat
Review: The Fast Feeder's New Campaign Awkwardly Touts Its Food's Quality
Posted by Wouter Boon on 08.20.09 @ 02:29 PM

Amsterdam agency TBWANeboko launched a McDonald's corporate campaign last month that clearly conveys a new strategic direction. The new pay-off translates as "The more you know, the better you eat." This phrase -- it rhymes in Dutch, but still feels somewhat contrived -- is based on the insight that the average consumer believes McDonald's serves food of poor quality. With this new strategy McDonald's wants to position itself as the honest and sensible fast-food chain.

It's not only all the bad publicity -- for a big part caused by the movie "Supersize Me" -- that made this new strategy necessary. McDonald's is simply following the health-conscious consumer. In itself an understandable move. After all, marketing is about adjusting your product (and communication) to the desires of your consumers. It's comparable to today's SUVs being advertised as "green."

(…)

So what I like about this campaign is that it makes a clear strategic choice. And it will thus probably give McDonald's a healthier image. However, if it continues into this direction, it might alienate the typical McDonald's family that goes there to score a happy meal and a toy that's made in China. At the same time, the more sensible, ingredient-conscious consumer to whom McDonald's seem to be talking will either never eat McDonald's -- because the brand is simply not in the evoked set -- or will get very irritated by the incredible message. And that would be a lose-lose situation.


Dear Walter,

I am banned to comment on AdAge. Too critical I guess.

None-the-less here's my take on your review:


Dear Walter,

This is smart advertising - branding and positioning, or at least that is what this crew must have thought. Albeit we have to talk about eatings cows and not that luscious Big Mac, but instead the eating of poor Bossy.

Perhaps they said too much, and made thousands of new vegetarians instead of MAC chompers.

Think about it, these guys do use the front part of the cow only because the other stuff makes the burger curl up. When we get into cow specifics one realizes they are not eating the package or the finished product but an animal that once breathed and if you believe animal rights groups, felt and thought too.

It's always best to stick with the end-product, not the blood and guts that go into it.

When I worked with dairies we talked about how happy our cows were, it is proven that happy non-stressed animals produce better milk for fluid, spreads, and cheese -- and their meat once they've done their milking duties.

Will MAC talk about it's happy cows next, and how they gladly give their lives for your meal enjoyment?

I once did a spot for Green Giant where I showed field workers picking vegetables at the "Peak of Perfection." Where a guy took a sample of veggies and measured the sugar levels to determine ripeness. My partner squashed it and exchanged it for "Picked at the peak of perfection, then flash frozen to preserve all of its natural goodness." He also killed all of the live shots in favor of animation of the Sprout, Giant and Valley People happily picking and harvesting veggies. He said bringing science into it, and then showing field workers with all of the negatives with migrant workers was nuts. Instead of hard science and a competitive difference, we get kids cartoons.

He was right of course. Women literally ate it up. That is what this spot is attempting. Sure it's true, but it lost its product focus. Saying only the finest prime beef, is enough. All efforts should be focused on what people buy, not the blood and cuts that goes into making it. That cute cow was killed to make that burger. McDonald's the cute "Cow Killers."

This is not food advertising, acceptable public relations, or anything that advances this company, it's brands and its products. It is cute but the underlying negative affects were not thought out. I'm Lovin' it .. not killin' it.

--
Daryl J. Orris, Ph.D.