not all publicity is good publicity and isnack needs a 2.1 response

Filed in public relations , social media 11 comments

You know by now, Kraft’s Vegemite stablemate, the softer-cheesy-combined-not-really-vegemite product has a new name care of a naming competition. isnack 2.0

Yup. isnack 2.0

Now, personal opinions about the choice of name aside, Kraft had more than 16,000 unique names to choose from. Yup, 16,000. They received a total of more than 48,000 submissions, which for a user generated competition, is pretty darn good. Those 48,000 submissions represent 35,000 people who felt compelled enough to enter the naming competition.

So, from a brand management and a public relations perspective, this is a windfall. Kraft had generated a large database of engaged consumers all vying for the kudos of naming the new product.

With the announcement on Saturday of the new product’s name during the AFL Grand Final, which mUmBRELLA reports as having a whopping Melbourne audience share of 95.6 per cent, this was a PR dream. Millions of Australians witnessed the announcement, and Kraft had a captured audience.

Until the name was actually announced that is.

Now I’m not going to dissect the name. Or the reactions. Plenty of people and online publications have done this already. From Ruth Brown over at Crikey, to mUmBRELLA, to a poll running on news.com.au there are a lot of online opinions on how and where the name went wrong. And, what the extent of the reactions has been from a Twitter hashtag created through to Facebook groups and even a blog.

But what I’m particularly interested in, is how Kraft react to this public relations issue which is unfolding to become a crisis.

Recently, it emerged that 25 per cent of consumers will boycott a product after a negative social media comment. So, to put it simply, people trust what they read in social networks. Perhaps even as much as what we traditionally see as the ‘trust’ factor with editorial in heritage media.

Here are the statistics quoted in the article:

  • One in four Australians are boycotting a product after reading negative comments on social networking sites
  • 60% of consumers say they want a response from the corporate in social media.

Another quote which Kraft need to listen to is:

Social media was emerging as an important space where companies could be as effective in repairing relationships with consumers as angry customers were in dismantling them.

Some 60 per cent of Australians said if they posted a negative comment about an organisation on a social networking site they would welcome contact from that organisation to try and resolve the issue.

Companies should look for clusters of similar complaints rather than handling grievances on a one-to-one basis.

Now this equates to a major public relations issue for Kraft. Just a simple Google search shows roughly 10,000 conversations about how crap the name isnack 2.0 is.

Coupled with the audience reach of the Grand Final TV announcement, full page newspaper ads and now an integrated marketing campaign, Kraft are promoting this name like it is on steroids.

What is interesting is that they haven’t responded to the negative backlash. mUmBRELLA hasn’t got a comment, Crikey hasn’t got a comment, Twitter is quiet and Kraft are deafeningly silent. First rule of public relations? Don’t ignore an issue. In fact, I posted here some learnings from an online crisis.

And no people. Not all publicity is good publicity.

If Kraft are going to stick by their name, they need to respond and mitigate this negative PR immediately. They need to come out via the channels that are quickly undermining their brand, and communicate the reasoning behind the decision.

They need to appear empathetic to their loyal customers who are threatening to boycott the new product. Even if only 25 per cent of these threats are actually carried out, this still represents a large amount of income lost.

Fingers crossed Kraft don’t wait until tomorrow to issue a press release in response, hoping for heritage media to pick up their messages. Hopefully their public relations team are listening to the online banter, and are in the midst of responding… today.

What do you think? What does Kraft need to do to mitigate this PR disaster? Can they?

Update: Kraft obviously didn’t anticipate the breadth of negative response online. Nor did they have the foresight to reserve the Twitter handle @isnack20. Check out the account here. More negative PR in the making?

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Posted by karalee   @   28 September 2009 11 comments
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11 Comments

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Sep 28, 2009
2:38 pm

Karalee,

I seriously doubt it. This is one of the most try-hard, stupid, old and irrelevant product names ever. And I thought McDonald’s user generated “Backyard Burger” from “Name-it Burger’ was lame! So clearly, these people are clueless.

And if you are completely oblivious to how social media handles #fails like this, well, you’re not really ready to respond are you? So I predict they will not respond at all, or respond with “we stand behind our decision”, and the product will be dead in 3-6 months. Trust me!

In the meantime, people like us have been given hours and hours of pure gold entertainment, seeing how these loser marketing types fuck up the simplest of tasks. It’s like a marketing ploy out of a Simpson’s episode.

Erik

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Sep 28, 2009
2:49 pm

It reminds me of some sort of naming competition at the local zoo. There’s been a massive push for ‘User Generated Content’ in campaigns recently to gain more ‘engagement’ – but it’s not as if Kraft didn’t have the final say in the name. I would have expected something better. Not all publicity is good publicity – and this is awful! But at least it is true to the product attributes of Vegemite – love it or hate it!

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Sep 28, 2009
3:33 pm

While I’m not convinced by the figures quoted in the original article, (they could mean all sorts of things), you’re right – this is a major PR disaster for Kraft.

I haven’t heard any social media response from Kraft yet. One common thought online seems to be that this “must” be some sort of PR trick to get attention and announce the real name later. My guess is that that gives Kraft too much credit, but maybe the only thing that could work is for Kraft to come out saying “We’ve listened, we made a bad mistake, and we’re going to change the name. We’re looking again at the entries and we’re thinking [insert possibilities here - Cheesymite (pending deal with Baker's Delight), Vegelite, Litemite, Spredgemite etc] What do you think of those?”.

And as for the people who made the iSnack 2.0 decision? Maybe if we leave a pistol in their desk drawers, they’ll do the honourable thing.

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Sep 28, 2009
4:50 pm

OK, first part of my prediction came true. Now let’s see in 3-6 months. http://www.adnews.com.au/news.cfm?NewsID=6932&alpha=&beta=

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Sep 28, 2009
4:55 pm
#5 justanotherprblog :

Erik – can you please give me the tattslotto numbers? You’re on a roll with predictions!

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Sep 28, 2009
8:40 pm

Hey, I’m usually the first to call myself a genius, but anyone who’s ever worked with marketing clients would know that their first response is to defend. They have invested a lot of money in this, and aren’t ready to throw the name out before they have to… in 3-6 months ;-) or as the product dies…

Initial sales is no reflection on how the product will do in the long term btw, people like to try new stuff, especially if there’s a lot of talk. In fact, in many markets (like Japan) they’re happy to introduce new products just to get the first round of sales, and then launch a new variety or skew.

I also agree with David, in that I don’t think this is a PR stunt, that would almost be too clever…

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Sep 28, 2009
9:12 pm
#7 Mzjaygee :

I’m always curious with these competitions why companies feel the need to ‘engage’ at the expense of their brand. But now that the iSnack deed is done I think the only way to recover is by Kraft showing their sense of humour. Acknowledging the sentiment and having a laugh at themselves.

It’s the Aussie way to deal with embarrassing situations.

P.s: another great post K! :)

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Sep 29, 2009
10:16 am
#8 MTC :

I get the feeling that someone submitted the name as a joke, then it actually made it through somehow.

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Sep 29, 2009
2:53 pm
#9 justanotherprblog :

Erik, completely agree with you and David that this is not a PR stunt.

Also, I think you’re right regarding the initial sales as no reflection on the product’s sustainability. The curiousity-factor is in place here, and once things die down, it will be interesting to see how it finds its niche on the shelves.

From a long term branding point of view, I read that Kraft have left the door open to a name change down the track. This means that Janina (Mzjaygee) could be on the money with a solution to mitigate the PR fail. Laugh, acknowledge the backlash and move forward with a re-brand. I’m putting money on this as the next step for Kraft!

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Sep 29, 2009
3:28 pm
#10 thewetmale :

Compare and contrast; iSnack2.0 & the McDonalds burger mentioned earlier in comments and a bridge in Brisbane http://www.abc.net.au/news/stories/2009/09/29/2699443.htm?site=brisbane and social media reaction to said name: http://twitter.com/jason_a_w/status/4453730654 / http://search.twitter.com/search?q=go-betweens

BTW, i like your focus on crisis management and the relevance of using the channels that the crisis is from to manage the situation. You’ve had a few posts on this topic and i think all the points you make are on the money. How hard would it have been for Kraft to have had someone searching twitter and other social media as the ad goes to air ready to jump on whatever the response is, good or bad?

If they were going to solely rely on traditional media, e.g. paying for an ad in the AFL Grandfinal but not having a twitter account, what was the plan for responding to the reaction? Despite the huge AFL audience they’ve left themselves hamstrung in that the best reply they could do would be a story in the Sunday or Monday paper. If it’s in the Sunday paper it’s going to sink as the Sunday papers aren’t taken seriously, in the Monday papers and they’re already close to two days behind the original announcement and reaction. Perhaps a quick response via a story on Sunday night news would work; that seems to rate pretty high and is always full of fluff and press releases anyway.

Come to think of it it would’ve been pretty easy and nifty to have a twitter account before the new name was launched. Give it some name like (o.k., that’s a shit name but hey, i’m a musician not a PR person) and then change the name as the ad airs. I know Scott Bridges of the Grods Corp blog changed his name from @GrodsCorp to @S_bridges when he shut down Grods, how easy would it have been to change the name and immediately use the account to put out a few tweets, possibly a bit fun an playful, that people might want to re-tweet on their own thus generating an immediate interest and/or connection in the name.

Mind you, all the strategy can’t save a shit product or idea. In this case a shit name.

DISCLAIMER: I am a passionate Marmite eater and thus was already full of contempt for Vegemite.

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Sep 30, 2009
4:49 pm
#11 George Hall :

Back in mid-July, I started a Spredgemite/Spreadgemite campaign on Twitter and a twitter hashtag.

So if they go with any variation of Spredgemite/Spreadgemite, I’ll be having a quiet chuckle.

And here’s how I approached it from a social media perspective:

“Spredgemite…start spreading the word.”

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