Friday 29 June 2012

Blackberry Crumble then Sell to Amazon?

Following an extremely disappointing year, Blackberry are consulting with Hanover, despite a pitch from Edelman, in an attempt to help build links with Whitehall, Westminster. Open Road who previously covered their PR declined a repitch to hold the account and perhaps they were leaving a sinking ship. Morgan Stanley downgraded the RIM stock which resulted in a nine year low in value. Blackberry Messenger or BBM was also found to be widely used by looters during the London riots and so representatives were invited to consult with the Home Office over ways to tackle crime through this medium. This has gave RIM extra press but perhaps not for the right reasons. They became the face of criminal interaction with a stigma from their market.

"BlackBerry Messenger was what kept RIM alive if I'm honest," said Roberta Cozza, research director at Gartner. "In emerging markets and in the UK, it was the reason why certain segments of the population, particularly the youth, bought BlackBerry handsets."


"Analysts at Morgan Stanley were scathing. RIM is "essentially broken", they claimed, and the only way it will remain "a viable entity" is "at a fraction of its current size". "


The Blackberry internet blackout incident which caused a loss to businesses in Latin America, Europe, India and the Middle East caused reputational damage to RIM that they haven't seemed to recover from. This was tipped to be the beginning of certain destruction.

Whether or not that is the case, it is clear that Blackberry are in trouble and in need of some drastic action. This will all serve as a severe wake up call. The new brief which is pipped to consult with Brussells and other European countries will certainly be targeting survival tactics. The hearsay that it's handset division will be up for sale will be cleared up soon enough, they may sell the entire stock. Facebook and Amazon are potential buyer but it has been hinted that interest will depend entirely on their patent portfolio. There have been suggestions that Blackberry will focus on its email and messaging networks. And so now we await the release of the forthcoming smartphone Blackberry 10 and the future decisions thereafter.

"In the three months to the end of December, RIM posted its first ever quarterly loss of $125m. It is expected to reveal further losses on Thursday, when it books a $1bn writedown on stockpiles of unsold smartphones and tablets."




Wednesday 27 June 2012

Cameron Slams Carr, Farrow Rescues Him

Following last weeks tax avoidance scandal involving Jimmy Carr came a very uncharacteristic solemn and genuine apology - no jokes. ITV revealed that Gary Farrow, the Corporation Chairman had told PRWeek that he had personally advised Jimmy on how to handle the situation. Farrow who is an experienced entertainment PR advisor said this, "You’ve got to deal with it and take it on the chin. We’re working around it. It’s going to plateau out - he hasn’t taken drugs and he hasn’t been caught with a hooker. He hasn’t broken the law."

So if he hasn't done anything majorly wrong, why the big apology?

Most people would agree that if they were offered an above board tax avoidance scheme that they would take it. The issue stems from the fact that while people all over the country are being laid off, including medical care professionals, whilst many others are not paying their tax. In this economic climate we must all be responsible and arguably this the Jimmy Carr tax avoidance may have been overlooked if we were facing better times. The inexcuable approach to the apology by Carr as advised by Farrow though has been an excellent judgement call and mitigated much of the bad press.



David Cameron jumped on the band wagon and branded the scandal as "morally wrong" just days after leaving his own daughter in a pub. The comments about Carr, which did not mention the Gary Barlow tax avoidance scandal have become somewhat of a headache for Cameron. He has been accused of diverting attention from the G20 summit by slamming Carr, and also of hypocrisy. Not only in his moral judgements over another, despite his own recent public embarrassment, but in his single minded view of taxes.

If we refer back to the budget this year you will remember that during Ed Milliband's speech regarding the millionaires tax, where hundreds of the upper classes enjoyed tax cuts, that Cameron refused to comment on how many of his Cabinet members were to benefit. He has condoned millionaires tax cuts on one hand and condoned it on another. Carr being a Cambridge graduate, you would have thought Cameron would have gone easier in him. This begs the question, what purpose did his comments serve?








Friday 22 June 2012

The Truth Has Become Everything In Advertising

On Wednesday Sue Unerman published a story for the Guardian entitled "Do consumers care whether brands tell the truth?" Her resounding answer being, absolutely."Of course consumers care about truth. We all do. So the best way to sell stuff to them is to tell them the truth. Half a century ago David Ogilvy said: "The consumer is not a moron, she is your wife"."


Unerman details how brands have put spin on the truth and "creatively" detracted from it. So yes the truth has become more and more important to brand integrity and this is something that marketers should be aware of. For her, the brands that are adapting well are showing this and as so too are the brands that are not.

But how important is the truth to well established brands?

I would argue that an advert depicting a gorilla playing the drums to a Phil Collins track will not put chocoholics off their favourite Cadbury's treat. Neither will dancing eyebrows. The fallacy in advertising of non sequitur, ie irrelevance in connection between the advert and the product, has become common place and acceptably so. These adverts are absurd yet entertaining and the brand is at a point in its growth that reputation is maintenance based. This is the exception to the rule.


So what about new or little known products?

The answer is as Unerman suggests - the truth, the whole truth and nothing but the truth. Paramount to building brand reputation is consumer respect. In today's social media dominated world, advertisers should not risk upsetting consumers by making false claims about a product or putting "spin" on the facts. The effect of losing one customer can roll over to initial sales in general once the disappointed shopper takes to Facebook to warn others. And as we know bad press can go viral like wildfire, just look at the Jimmy Carr tax scandal which was all over Twitter within minutes.

Old newspapers are not archives and forgotten like the old days,where reputation had a better chance of recovery because not everyone had seen that article. Online papers offer database archive search and so information is accessible and living forever. The Guardian has embraced the new truth based media arena with their "Open Journalism". Their new style of reporting is interactive and gives readers a chance to comment. This means that it is not only the journalists point that we have access to, and this further strengthens the sense that truth and integrity is becoming everything in media and advertising.

Wednesday 20 June 2012

23% Of PR Interns Are Still Unpaid

The payment or lack of for PR interns is frequently discussed yet nothing seems to change and the figures speak for themselves. Public Relations is one of the most desirable graduate careers yet one of the most difficult to get into due to the widespread unfairness many interns face. It is now estimated that around 23% of interns receive no payment at all and only 28% of intern wages meet national minimum wage.

"Ben Lyons, who is co-director at Intern Aware, a campaign focusing on promoting fair access to the internship system, said the survey provided proof that PR has ‘an unpaid internships problem’.
‘Interning is becoming essential for graduates looking to get a job in PR and where these positions are unpaid, graduates who can’t afford to work for free are priced out,’"
 http://www.prweek.com/uk/news/1137165/demand-action-intern-pay-pr-industry/

Many internships in London offer zone specific travel expenses and lunch. What this means is that for such positions to be a possibility, the intern will preferably live in London and have parental support or financial backing of another kind. The long road ahead may be disappointing and long with no guarantee of a position post internship. Its fiercely competitive and without any promise of fruition. The Trade Union Congress suggested one in three interns were unpaid back in 2010. When that data is viewed in the light of poor or minimum payment there is a marked increase in the number of desperate, out of work graduates who are being are exploited. The recession has certainly influenced the appeal of free labour.
http://www.guardian.co.uk/business/2010/mar/26/interns-unpaid-work-tuc?INTCMP=SRCH

The PR industry has also been criticised for its lack of diversity. What we are seeing is a trend apparent in many other city centred careers, such as the legal profession. Barriers keep a tight net of who is allowed in. Graduates from affluent background have the easiest access to opportunities whilst the working class struggle to get onto the career ladder, up to their necks in student loan debt. The white, middle class glass ceiling is yet to be broken. As the old saying goes, nobody is prevented from having tea at the Ritz, but that does not mean that everyone can. It's about time the government took hold of internships in general which may be illegal as well as tremendously unfair.

Friday 15 June 2012

England Euro 2012. Different Publicity, Different Attitude.

Following accusations of a nonchalant attitude, the FA's more open approach to a code of conduct has show the England team in a different light. Following a seven player trip to Auschwitz in which there seemed to be a genuine move in emotion, seems to have reminded the players that the are, as Roy Hodgson has reminded them, "part of the wider world".

But this time the England players are being the 'good tourists' so desired by the FA. The headlines have focused on footballing issues such as the omission of Rio Ferdinand.

The lack of focus on the behaviour of the England squad and of the WAGs has been an entirely different approach to publicity, one that is much healthier. The team have notably been staying in more open accomodation as opposed to secret retreats. The headlines have been centred on football issues and it would seem that the drive away from sensationalism has had a positive effect on the boys. They are behaving like model tourists and hopefully the more humble and real travel experience is a reflection of their minds and motivation; concentration on what is important!

Tuesday 12 June 2012

Intellicig: New Agency Search for E-Cigarette Brief

CN Creative, the makers of the brand Intellicig are amidst a search for an agency to help take their product further. The brief will be entrusted to an agency that understands the unique position of the brand. CN Creative are the top sellers in the electronic cigarette arena and are keen that their marketing and publicity is handled correctly. The UK government leans towards support for the devices and is looking to "nudge" on  social impact. This is headed by The Cabinet's behavioural insight team and involves the agenda pushing on society of new practises that are beneficial once adopted. Nudging has previously occurred with encouraging people to fill up with unleaded petrol instead of leaded and also the use of seat belts. Usually " social norms" result from nudging in time; when sucessful.

"Now the unit wants to explore and encourage new products that deliver nicotine to people's lungs but without the harmful toxins and carcinogens in tobacco smoke that kill."

'The annual report reads:It will be important to get the regulatory framework for these products right, to encourage new products. A canon of behaviour change is that it is much easier to substitute a similar behaviour than to extinguish an entrenched habit (an example was the rapid switch from leaded to unleaded fuel). If alternative and safe nicotine products can be developed which are attractive enough to substitute people away from traditional cigarettes, they could have the potential to save 10,000s of lives a year."

Strong support comes for the notion that smokers who will not give up, may inhale the smoke free vapour cigarettes and get their nicotine hit without the poisonous chemicals in a traditional cigarette. This in turn, it is suggested, will save tens of thousands of lives and cut NHS spending on cigarette related health issues. The Medicine and Healthcare Products Regulatory Agency has become involved in how to approve the devices in the UK, which are banned in many countries, including Canada and Australia. Countries such as Singapore, Brazil and Thailand have not legalised their use so far as there is still debate over their safety.


This is potentially big business and the UK is at the forefront of developments which may influence other countries. CN Creative are keen to ensure Intellicig is regulated and approved for use. The tension lies between whether the product is medical or simply a smoking device. Any product that makes a health claim involves strict regulations and so moving away from this would be sensible. Yet a balance must be found to assure consumers. The agency that is awarded this challenge will aim to lobby for approval and get this product on the shelves alongside tobacco products at a reasonable price. Widespread use amongst dedicated smokers is predicted to have many benefits.

Friday 8 June 2012

LinkedIn Password Security Breach

Following the embarrassment over iPad and iPhone apps where user meeting notes were transimtted back to the server without the permission of the account holder, LinkedIn once again have egg on their face.

http://www.americandailyherald.com/us-news/top-stories/item/linkedin-confirms-password-security-breach

A number of user passwords were published onto a website and despite this breach, LinkedIn failed to tackle the issue head on. It was estimated by the Daily Mail that 65 million passwords were placed onto a Russian cybercrime website. However the Guardian, an independent newspaper estimates this at 6 million. Hackers also targeted 1.5 million dating website, eHarmony members. The Guardian are calling the scandal "a timely Internet security reminder."

The social media site which comprises of over 161 million members in over 200 countries has been fishing for a new PR firm to take over their brief, currently handled by Edelman. And it would seem this would not be before time. LinkedIn executives' failure to issue a direct statement or security advice meant that the media were forced to consult with security and IT professionals rather that the company itself.

'Security blogger Graham Cluley described the breach on his blog According to Cluley, “A file containing “6,458,020 SHA-1 unsalted password hashes has been posted on the Internet, and hackers are working together to crack them.” Cluley went on to note that the passwords were not associated with email addresses, but, he said, “it is reasonable to assume that such information may be in the hands of the criminals.” On its blog, LinkedIn confirmed some aspects of the breach.'

LinkedIn tweeted the disaster when they should have contacted members direct to make them aware of the security breach. Following the tweet LinkedIn director Vicente Silveira posted a blog late Wednesday night admitting to a compromise in security and an ongoing investigation.

The security may have been poor but the most shocking part of this disaster was the lack of direct handling and reassurance. Wholly inadequate. An example of very bad PR.