Category Archives: Crisis Communications

Paula Deen’s Comeback Strategy

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Americans loves comeback stories.  They love to see a celebrity, a politician or a business leader reach great heights and then fall only to rise again.  Think of Richard Nixon, Martha Stewart, Robert Downey, Jr., and even Drew Barrymore.  Now Paula Deen seeks to join the list fallen celebrities to make a comeback.  She recently formed a new company, Paula Deen Ventures that received between $75 million to $100 million from Najafi Cos., a private-equity company led by Jahm Najafi, who owns BMG Music Service and the Book-of-the-Month Club.  Yet she should remember, for every comeback, there is a Michael Richards, Jimmy the Greek, Michael Vick, or even Tiger Woods, who either see their career destroyed or never recover all of their previous star luster.

Paula Deen’s fall from grace is well chronicled.  In a deposition over a now dismissed lawsuit by a former employee, Deen admitted that she has used the ‘n’ word in the past and had considered a plantation style event with African-American employees dressed in anti-bellum attire.  Other employees stepped forward to make similar allegations. What made her situation worse was her ham-handed attempts at crisis communications culminating with her appearance on the Today Show where she appeared to be saying she was the victim and didn’t understand why African-Americans might be offended by the ‘n’ word.  Sponsors were quick to show her the exit, with even the Food Network who had put Deen on the map, cancelling her show.  Since then, she has taken a low profile and still retains a strong fan base.  The question is can she comeback as strong or stronger than she was before?

Simply put, Paula Deen will never be back as strong as she was prior to her scandal.  Any scandal involving a child, an animal, or race is one that a person never recovers fully from (just ask PeeWee Herman and Michael Vick).  Beyond that, she hasn’t shown sponsors that she fully understands what she did wrong – not dealing with the issue in a professional way and her brand identity as the sweet grandmother was destroyed permanently with all but her loyal fan base.

As mentioned Deen’s crisis communications efforts were abysmal.  What she should have done even before the deposition was to do an interview explaining what was going to come out and explain this was said years ago, is not who she is, and was only coming out now as part of a lawsuit, allowing herself to be in front of the story and shape the narrative.  Failing that, a heartfelt apology to anyone she may have offended and a strong denunciation of racism and use of the ‘n’ word was in order.  She missed all of those opportunities and even now has yet to fully offer a strong apology or show she understands why people are offended by the ‘n’ word.  She continues to play the victim.  This continues to send a signal to sponsors that she doesn’t understand the gravity of her words or race issues, will continue to be erratic in business dealings, and will have limited appeal to millenials (a coveted demographic which she had limited appeal to even before this and was yet another reason the Food Network cut ties with her).  While some sponsors will sign her up, the deals will never be as big as they were prior to the scandal.

The Paula Deen brand was based upon a perception of a sweet kind Southern matron with a savvy business brain.  The revelations that she had used the ‘n’ word and her failed attempts at crisis communications shattered that brand image.  She came across as erratic, as being out of touch, and in some instances mean spirited.  Contrast this with the recent controversy over Phil Robertson of Duck Dynasty and his remarks regarding homosexuals, fans and sponsors weren’t shocked despite the media firestorm as his comments (regardless of your opinion of them) were consistent with his brand and while standing by the remarks he apologized to those who were offended.  Unlike Robertson, Deen’s brand has suffered permanent damage because her words and subsequent actions were inconsistent with the brand she had built over the years.

So what can Paula Deen hope to achieve with the funding for Paula Deen Ventures?  She has a strong dedicated fan base.  With Paula Deen Ventures she can strengthen her ties with that base.  She will be able to engage her core base more than ever and will win some endorsements.  She may even make some new fans.  But Paula Deen will never be fully back as strong as she once was.  No matter how loyal her fan base is and no matter how much they buy and how much funding she receives, the Deen brand will never be what it was.

The tragedy of the fall of Paula Deen is it could have been avoided.  Sponsors and the public (not just her fans) are forgiving.  Had she had a proper crisis communications strategy she might have emerged stronger than ever.  Now Paula Deen Ventures is defending a diminished brand in a weaker position than anyone could have dreamed.

A-Rod’s PR Nightmare: The Suspension Saga Losers

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An arbitrator ruled over the weekend that Alex Rodriguez (A-Rod) should be suspended for 162 games (a full season) for his involvement with Biogenesis, the South Florida anti-aging clinic that according to Major League Baseball supplied Rodriguez with banned drugs. While this was less than the 211 game that was meted out to Rodriguez last summer, the arbitrator agreed with all of Major League Baseball’s findings against Rodriguez. Rodriguez and his legal team have vowed to continue the fight and seek an injunction to prevent the suspension as Rodriguez’s federal lawsuit against Major League Baseball and Baseball Commissioner Bud Selig continues its way through the legal system (his team also added the Major League Baseball Players Union to the federal suit) and stated that A-Rod will attend spring training. In the lawsuit, Rodriguez claims that Selig and Major League Baseball pursued him with “vigilante justice” as part of a “witch hunt” designed to smear his character.  The lawsuit also lists allegations —that Major League Baseball investigators engaged in unethical and even criminal behavior during the year-long investigation into Rodriguez and Biogenesis; and that Major League paid Bosch for his testimony against Rodriguez. Finally in this weekend of A-Rod drama, Major League Baseball Chief Operating Officer Rob Manfred and Biogenesis founder Tony Bosch appeared on 60 Minutes this weekend to make their case against Rodriguez public. The question is can anyone win the public relations war or will this harm everyone?

  1. Alex Rodriguez was in the twilight of his career even before this drama, yet despite this had the PR persona of still being one of the sport’s elite players. This PR persona is now totally destroyed with the suspension. His career with the Yankees is probably over. Attending spring training if the courts do not issue an injunction will further tarnish his image (and also make a mockery of the whole sport). Sponsors will look at this suspension as final evidence that he is tainted goods and will run from him. His record will now always have an asterisk next to his name and he will never be considered among the greats of the game such Babe Ruth, Lou Gehrig, Willie Mays, and Hank Aaron.

Some team no matter what will probably want him in 2015 if he wants to play and fans will go to see him for a while because of the tabloid aspect. He has denied repeatedly that he took any banned drugs while with the Yankees, so having crossed the Rubicon so dramatically, he can’t now admit he did and apologize. Such an admission would further damage his already stained reputation. Yes, Americans love second acts but at this point in his career he is headed toward a guest spot on Celebrity Apprentice rather than the World Series. His persona of sports stardom is over unless….he wins the lawsuit.

This means battling it out with a series of interviews, press conferences, and speeches arguing his side to influence public opinion while the lawyers battle. Winning the lawsuit would be total vindication for Rodriguez. Such a victory would damage baseball perhaps irreparably. Already some fans while agreeing with the suspension don’t like how Major League Baseball has handled aspects of the situation.

  1. Major League Baseball is under attack with Rodriguez and his lawsuit. Many fans even those who don’t like Rodriguez didn’t like the 60 Minutes interview and felt it was overkill. Major League Baseball doesn’t need further interviews like that especially with Bosch. Major League Baseball needs to argue more persuasively that this suspension along with those of other players last season shows the strides that it has made and continue to make against illegal drug use in its sport and that Rodriguez’s suspension proves that nobody is above the rules no matter how famous a player. Finally they need to demonstrate how Rodriguez is attempting to harm the sport that gave him fame and success by his past conduct and attempting to make a mockery of the system to avoid his just suspension. Should any of Rodriguez’s claims in the lawsuit have merit, Major League Baseball needs to address them and clean house. At this juncture with Rodriguez in a position to inflict injury to the sport, Major League Baseball needs to be as clean as a hound’s tooth in an echo Dwight Eisenhower in 1952. So…

If the accusations have any ounce of merit action:

  1. Selig needs to resign once.  He has already announced that he is stepping aside after the 2014 season.  Far better for baseball that he resign at once rather than allow this lawsuit cloud everything else including the 2014 season.
  2. Bring in a special investigator to investigate all of the allegations and fire anyone who is found to have acted unethically or criminally.
  3. If any payments were made to Anthony Bosch admit it and explain why.
  4. Replace Selig with a high profile personality who has creditability with the public, even if not a great understanding of baseball.  Condoleezza Rice, Mitt Romney, Bill Bradley, or Rudy Giuliani all come to mind.  Remember the first Commissioner of Baseball, Judge Kennesaw Mountain Landis wasn’t brought on board for his knowledge of the game but rather his reputation and judicial mindset.
  5. Reaffirm the anti-drug policy.

At this point, the Alex Rodriguez saga has the potential to harm and possibly destroy not just his public persona but also that of Major League Baseball as it plays out. At the best it makes a mockery of the sport and the system, at the worst it puts Major League Baseball back to an image that it had with the infamous Black Sox Scandal if not handled well.

SeaWorld Crisis Management: The Textbook Case of What NOT To Do

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In today’s world a crisis plays out as much on social media, as it does through traditional media.  Brands and companies need a strategy for both.  Yet many never fully consider the social media aspect.  The ongoing crisis for SeaWorld is a case in point.  They have mishandled both their traditional and social media response with no end to the crisis in sight.

SeaWorld’s crisis began with the airing of the film, Blackfish on CNN.  Blackfish exposed practices at the aquatic park, including an exposé about whales in captivity and the orca-related death of trainer Dawn Brancheau in 2010.  SeaWorld’s response to the film was to lash out at it before it actually aired by sending a critique to film critics.  Company executives had also refused to be interviewed for the film.  This was a wrong way to deal with the brewing crisis as it created more attention for the film. 

Next began the online protests in reaction to what the film depicted with Facebook pages being established calling for a boycott of the sea park until SeaWorld changed its policies.  Posters on SeaWorld’s Facebook page who expressed concern or disapproval of SeaWorld’s policies saw their posts deleted.  SeaWorld wouldn’t even address their concerns.  Rather as part of their crisis communications response they began highlighting the good work they have done for animal rescues (which was never disputed).  Consumers who saw their posts deleted were outraged causing further social media commentary of the story.  Social media allows corporations and brands to directly engage consumers during a crisis.  Allowing consumers to voice their opinion as long as it is civil allows consumers to be engaged and often helps level off anger.  Explaining a company’s position on social media is critical.  Ignoring the crisis and the consumer comments or in this case deleting them, keeps the flames going, as SeaWorld found out.

Consumers began contacting musical acts that were scheduled to perform SeaWorld’s “Bands, Brew & BBQ” series, one of the park’s biggest events.  Social media petitions began with one getting over 12,000 members urging the acts to cancel.  The musicians took notice.  Barenaked Ladies, Heart, Willie Nelson and others cancelled their scheduled appearances.  Singer Joan Jett asked the park to stop using her song “I Love Rock ‘n Roll” during its “Shamu Rocks”.  SeaWorld’s response was to criticize the musical acts, attack the people using social media to protest their policies and state that park attendance was being affected.  Yet they refused to engage consumers or deal with the issues raised in Blackfish through traditional media.

Next a California school class cancelled a field trip to SeaWorld because of concerns over the issues raised in Blackfish.  SeaWorld responded by saying this was an isolated incident and disparaging the class.  Students from across the country took to YouTube calling for SeaWorld to change its policies and again SeaWorld remained silent.

The latest blow has been an online poll that the Orlando Business Journal posted an online poll asking if reader’s if their opinion of SeaWorld had been affected by the controversy.  Fifty-four percent of voters who voted no, were traced back to a SeaWorld ip address (note don’t try to rig a newspaper poll and use your ip address, the paper may become suspicious).  The result more bad press and ongoing social media controversy.

SeaWorld is becoming the textbook case of what not to do in a crisis.  Social media as much as traditional media drives narratives.  Ignoring the consumer and not engaging them on social media doesn’t make the crisis go away, rather it keeps it alive.  Now more than ever, when developing a crisis communications plan, the social media element must be incorporated into the plan.

Duck Dynasty Patriarch’s Media Firestorm: A Lesson in Crisis Management

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Duck Dynasty star and patriarch, Phil Robertson (Duck Commander) is the subject of a media firestorm over comments he made about homosexuals in GQ Magazine. In his interview, Robertson uses lewd imagery to discuss why he doesn’t understand homosexuality, which he goes on to call it a sin and compare homosexuality to bestiality based upon his Christian beliefs. GLADD vehemently denounced Robertson’s comments as some of the vilest ever directed towards homosexuals. While the controversy has been focused on the remarks he made about homosexuals, he also made controversial comments about African Americans, saying the cotton farm workers he knew in Louisiana were “happy” with their jobs. A&E, the network that carries Duck Dynasty announced that it was suspending Robertson indefinitely over his remarks. This in turn has led to a massive reaction against A&E and in favor of Robertson. Social media is burning up with tweets and Facebook posts defending Robertson. Sarah Palin, Louisiana Governor Bobby Jindal, and even Geraldo Rivera have come to his defense. So can the Duck Dynasty brand survive? How has Robertson handled his crisis communications efforts?

The answer to the first question is obvious. Of course the Duck Dynasty brand will survive and will actually flourish as a result of this controversy. Some will say, Paula Deen was caught admitting using the ‘n’ word over twenty years ago and her brand has been damaged severely, why the difference. The difference is that Deen’s brand was built around her persona of being a sweet grandmotherly personality her use of the ‘n’ word didn’t go with that image and her crisis communications efforts were abysmal.

Robertson and the Duck Dynasty brand have never pretended to be politically correct. Part of their appeal and brand identity has been built around their authenticity and saying what is on their mind. Even more so much of their appeal has been their strong Christian faith that appeals to a large number of their fans. In that aspect, Robertson’s remarks and his explanation reinforce that branding. Fans of Duck Dynasty fit into a more conservative outlook and are apt to agree with Robertson. Beyond that many of the shows fans will sympathize with Robertson believing that it was his first amendment right to say what he believes. Overall, the Duck Dynasty brand has strengthened their ties with their existing fans.

Beyond that, people who have never watched Duck Dynasty will probably tune into the show to find out what all the controversy is about that the media is reporting. Not all of these new viewers will stay but some will and become Duck Dynasty fans. So overall the brand comes out ahead earning itself millions in free publicity.

Robertson’s crisis communications efforts have been good so far. He released a brief statement that reaffirmed his Christian belief while stating he would never disrespect anyone. Beyond that he has been quiet and done no embarrassing YouTube videos apologizing nor attacked either his critics or A&E. His cast members (as would be expected since they are family members) are all supportive of him. His fans are vocal on social media and are petitioning A&E to drop his suspension. He has prominent supporters who appeal to his brand’s demographics supporting him. Next he needs to do a media interview with Oprah or perhaps Barbara Walters and address the issue and then continue his silence.

Despite the media firestorm, the Duck Dynasty brand and Phil Robertson are probably stronger as a result of this controversy. Robertson played to his authenticity branding that appeals to his fans and reinforced that appeal. His crisis response has avoided the pitfall that we often see in which the crisis response becomes the story (see Paula Deen and Lululemon). This is living proof that in the 24/7 media cycle and social media world that we live in, at times a crisis can be the best thing to happen to a brand.