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It's About a <<Fiji Water>> Girl

1/12/2019

by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

Have you ever been photobombed? Friends and family often have fun slyly inserting themselves into each other’s pictures. Sometimes it’s a complete stranger who appears in the background of a vacation photo, smiling for the camera. People are used to those kinds of photobombs, but do A-list celebrities expect such interlopers on the red carpet of a major awards show?

Fiji Water Girl, perhaps the most famous photobomber ever, rose to global prominence in Beverly Hills, just this past weekend. Like other award programs, the Golden Globes features a preshow red carpet event during which the many talented people of television and film stroll in front of the media while slowing making their way into the Beverly Hilton Hotel.

The promenade of stars in elegant evening gowns and stylish tuxedos provides countless photo opportunities that the celebrities graciously accommodate. This time, however, as many of them posed for the paparazzi, the same, solitary figure appeared behind them: Fiji Water Girl. Her intriguing presence in the background of so many popular celebrities’ pictures ignited a social media firestorm—Who is that girl and how did she get in the images of all those icons?

For each Golden Globe awards, the Hollywood Foreign Press Association (HFPA) selects a small number of companies to be
“awards sponsors,” which means they help underwrite the cost of the program, and in return, they are permitted a demure presence at the event that includes sharing their prestige products with the program’s distinguished guests. This year’s awards sponsors were Moët & Chandon Champagne, Lavazza Coffee, Lindt Chocolates, and, of course, Fiji Water.

Fiji outfitted several young, attractive women in matching royal blue gowns, and positioned them on the red carpet, holding clear trays of the firm’s trademark bottles. Ostensibly, the idea was that thirsty guests would avail themselves of the product samples, appreciate the refreshment, and gain a positive impression of the brand. However, one particular model,
Kelleth Cuthbert, used some strategic photobombing to parlay her gig into so much more.

As mentioned above, Cuthbert somehow managed to place herself in the background of photos of a variety of top celebrities including Jim Carrey, Idris Elba, Judy Greer, Eric Lange, and Tony Shalhoub, often making “direct – and sultry – eye contact with the camera.” Social media shares of the pics quickly made Fiji Water Girl one of the web’s hottest trending topics and, according to Apex Marketing, earned Fiji about $12 million in free media exposure.

So, the $12 million question is: Was Cuthbert’s photobombing serendipitous, or was it planned?

Fiji seemed surprised by all the attention, suggesting that although it appreciated the extra exposure, it hadn’t tried to orchestrate it. The company tweeted: "We're so glad everyone is talking about our water! *senses ominous presence* She's right behind us, isn't she? #FIJIwatergirl.”

It’s also worth noting that of the several Fiji Water girls stationed on the red carpet at the Globes, Cuthbert was the only one whose presence went viral. If Fiji truly had been trying to gain mass media attention, wouldn’t more of its models have been found photobombing celebs?

All the above makes it seem like Cuthbert may have ‘gone rogue’ and taken up the photobombing herself. Since her meteoric rise to stardom, the model has had several opportunities to address such claims. She’s often suggested that her presence in so many celebrities’ pics was unplanned, for instance:

“There’s tons of photographers everywhere. It doesn’t matter where you stand, you’re in the crossfire of every shot.”

“No matter where you move, you’re in somebody’s shot. I don’t know, you just have to look at what you’re doing and be aware of where everyone is. But know that you can’t avoid it.”

“I don’t even think there was a point where I made any conscious decision [to lean into the photography]. I think from so many years of modeling, when I hear a shutter, I just kind of give a face.”

On the other hand, Cuthbert told a Los Angeles times reporter that “It’s all strategic” and “You’ve got to angle.” She also hasn’t shied away from the cameras since the Golden Globes, appearing on Inside Edition to describe her photobombing experience, taping her own mock award acceptance speech for YouTube, and making a cameo on the Late Show with James Corden.

Not having been there or spoken with Cuthbert, it’s hard to evaluate her somewhat conflicting statements and other disparate evidence. One person who was at the last Golden Globes and has many years of experience with paparazzi is accomplished film actress Jamie Lee Curtis . She expressed clear and strong sentiments about what happened to her on the red carpet:

“I specifically moved away from the blatant promotions by Fiji and Moet where young women with their trays filled with their wares stood near a designated camera. I knew why there was a photographer poised there and I moved away as I said out loud that I didn’t want to be doing advertising for either. Clearly this angle shows that I moved from her being behind me and yet from the side it still happens. The sponsors of events need to get permission from people when they get them to take their picture next to products.”

Some may suggest that Curtis overreacted to what occurred or was too cynical to think sponsors try to stage such photo ops. However, Business Insider has corroborated her claims, reporting that a specific Fiji-commissioned photographer was the initiator of the photobombing strategy.

Stefanie Keenan, the photographer contracted through Getty Images, was at the Golden Globes for the purpose of taking photos that would “elevate” Fiji, which mainly meant getting pictures of celebrities drinking the water. Cooler temperatures, however, led few stars to take the samples, so, according to Getty’s vice president of global entertainment Kirstin Benson, Keenan “came up with the idea to have a Fiji brand ambassador creep in to some shots.”

This revelation certainly supports Curtis’s experience, while contradicting many of the things that Cuthbert said. It seems, then, that the photobombing was the collaborative effort of Keenan and Cuthbert. Fiji corporate also bears responsibility in as much as it contracted with the companies that provided the photographer and the model.

But even if the photobombing was intentional, is there anything wrong with it? As mentioned at the outset of this article, it’s often funny when people photobomb others. That photobombing takes on a different meaning, though, when the pictures are used for commercial purposes.

As Curtis suggested, people, whether celebrities or ordinary citizens, have the right to choose the companies they support. You probably wouldn’t want your likeness associated with an organization whose mission you don’t endorse. You also wouldn’t want a company to profit from the use of your image without your consent.

However, that’s how Fiji unfairly benefited from the photobombing. Although the company undoubtedly paid for the privilege of being one of the few Golden Globe awards sponsors, it didn’t secure permission from or provide payment to Jamie Lee Curtis, Jim Carey, or other celebrities whose personal brands it co-opted without their consent.

Some may say that no one would assume Curtis endorses Fiji Water just because a model bearing the firm’s bottles appears behind her in a picture. A lack of an express endorsement is certainly significant; however, simply showing Curtis and Fiji together starts to establish a connection in people’s minds, especially when the picture keeps reappearing. Branding often leverages such repeat associations, as when a brand uses the same colors and fonts.

Cuthbert’s ‘performance’ on the red carpet at the Golden Globes made her and Fiji Water viral stars. They owe that celebrity status, however, to the real stars whose painstakingly-developed personal brands Fiji and company commandeered. Hopefully photobombing people with commercial content won’t catch on, as it’s clearly a picture of “Single-Minded Marketing.”

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Betting on Sports Gambling

12/28/2018

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

What skills did your parents teach you when you were growing up? Maybe they showed you how to throw a baseball, ride a bike, or drive a car. If Buffalo Wild Wings launches a major initiative it’s considering, moms and dads might start teaching their kids a whole new set of skills, like how to place bets on teams that will cover spreads in big games.

On May 14, 2018, the U.S. Supreme Court struck down a 1992 federal law that largely outlawed sports betting, thereby giving states authority over such gambling. Several states, like Delaware and New Jersey, quickly legalized sports betting, and many others are poised to follow suit. It’s hard to imagine policymakers resisting the revenue potential sports gambling represents, which is the same reason Buffalo Wild Wings is considering adding gambling to its menu.

There’s certainly nothing wrong with businesses, including those in the highly-competitive restaurant space, looking for other sources of sales. Furthermore, some restaurants, like Dave and Buster’s, have become successful by marketing experiences alongside entrées. But, is playing arcade games the same as putting down money on NFL games?

Leisure is in many ways a personal preference. Everyone needs to relax and refresh at times, in ways that work for them, so who’s to say someone is wrong to spend his/her free time and money reading books, riding bikes, watching movies, or wagering on the outcomes of soccer games? If done in excess, most leisure activities could potentially be harmful, but gambling appears to carry a unique set of risks for the gambler and others:

Financial Risks: Problem gamblers can easily fall into a downward spiral of debt, leading them to max out credit cards, fail to make mortgage payments, or even declare bankruptcy.
Relationship Risks: Compulsive gambling can lead to neglect of children, fights with spouses, and divorce.
Health Risks: Problem gamblers often suffer from stress, anxiety, low self-esteem, and depression, as well as related physical symptoms such as insomnia, high blood pressure, migraines, and heart disease. Such individuals also are likely to use alcohol and drugs as coping mechanisms, or even commit suicide.
Job Risks: Individuals with gambling problems are frequently absent from work and less productive when they are on the job, often because of their misuse of company time.

While most leisure activities tend not to become obsessions, gambling addiction is very real. Studies have shown that those addicted to gambling exhibit many of the same behavioral and neurological symptoms that drug addicts experience. What’s more, bookstores and bicycle shops don’t need to run disclaimers in their ads, “Have a reading addiction?” or “Biking problem? Call . . .”, but casinos put disclaimers like this one on their websites: “Gambling Problem? Call 1-800-GAMBLER for help.”

The following statistics from Addiction Tips help put problem gambling into even clearer perspective:

Around 80 percent of the American population gambles in a given year.
About five out of 100 gamblers have a gambling addiction.
Of those age 14-21, 750,000 are addicted to gambling.
Most of those addicted to gambling are between the ages of 20 and 30.
Over 6% of students in U.S. colleges gamble regularly.
Gambling addiction is positively correlated with criminal activity, including violent crimes.

Gambling is a widespread and risky activity; however, the National Council on Problem Gambling acknowledges that “most adults who choose to gamble are able to do responsibly.” With the legalization of sports betting, gambling activity is likely to explode, so why shouldn’t Buffalo Wild Wings add sports gambling to its menu? That’s the question longtime ESPN host Mike Greenberg asked during an August 18, 2018 broadcast of his daily sports talk program Get Up!:

“This doesn’t seem that complicated, unless I’m missing something . . . It seems like a lot more people will come [to Buffalo Wild Wings, if it adds gambling]. I don’t see any reason not to and I see every reason to . . . I am one who is in favor of gambling in a significant way, so I don’t see any downside to this. Tell me what I’m missing if there is something.”

Here are some things that Greenberg may be overlooking about sports, gambling, and Buffalo Wild Wings:

Sports are extremely widespread: There are over 440 internationally recognized sports and more than 8,000 indigenous sports, not necessarily recognized internationally. That pervasiveness means a virtually endless stream of easily-found betting opportunities.
Sports inspire passion among a very wide range of people: Few things stir as much interest and excitement as sports, or enjoy such broad demographic appeal: men and women from toddlers to senior citizens love sports. The 2018 Super Bowl drew over 103 million viewers in the U.S. alone, which provides some specific support of that extensive popularity.
Gambling can be destructive and addictive: Several paragraphs above have already detailed many risks associated with gambling as well as its potential for addiction.
Buffalo Wild Wings is really big: It’s the largest sports bar chain and the 17th largest restaurant chain in the U.S. In 2017, it had sales of over $3.9 billion across 1,206 stores, which means Buffalo Wild Wings could expand sports betting across the country about as fast as any company could.
Buffalo Wild Wings targets families: The firm’s website suggests “Wednesday is for Family,” while promoting $2.99 kids’ meals from 4:00 pm - 8:00 pm from its seven-item, customizable kids’ menu. Customers also perceive the restaurant as family-friendly, posting online comments like “Yes, this place [is] definitely suited [for] families,” “Fun sports environment with fun bar atmosphere and family restaurant at the same time,” and “an awesome family friendly restaurant.”
Buffalo Wild Wings targets college students: The chain currently offers special promotions with 16 different universities, including the University of Alabama where football fans can get a free order of snack-size wings if Alabama records three or more sacks in a game. A Google search of “Buffalo Wild Wings student discount” returns numerous hits of other college and universities that have negotiated special student discounts, such as one giving students at Northern Michigan University 10% off food items on Thursdays. Also, the website Student Discount Program calls Buffalo Wild Wings “the ultimate place to get together with your friends, watch sports, drink beer and eat wings.”

Certainly, there are many people who gamble without causing serious harm to themselves or others. Unfortunately, there also are 5 -7 million Americans, according to the National Council on Problem Gambling, who meet one or more of the diagnostic criteria for pathological gambling, thus experiencing at least some of the undesirable outcomes mentioned above. These numbers are likely to increase dramatically, as more states legalize betting on activities that have some of the broadest and most impassioned followings—sports. People who don’t already gamble are probably more likely to start if they can bet on something they enjoy and understand. For many people, that something is sports.

Because of its size and influence with sports fans, Buffalo Wild Wings would accelerate the growth of sports betting like few other companies could, should it choose to move forward with gambling. However, that probability is only one concern. Another is the impact Buffalo Wilds Wings would likely have on young people and their betting behavior.

As described earlier, Buffalo Wild Wings targets college students, many of whom love sports and already gamble. These coeds will be easily won over to sports betting, although they can ill-afford it, both because of time (many should study more) and money (many college students have considerable debt). However, an even younger demographic is at risk, should Buffalo Wild Wings begin sports betting.

As mentioned above, the chain also targets families with young children. While it’s unlikely that any kids would place wagers at the restaurant, children do carefully observe and emulate the behavior of adults. It’s sad to imagine so many children, most of whom love sports for the pure joy of playing or watching, being socialized into gambling on games. Greenberg's Get Up! co-host Jalen Rose aptly expressed this sentiment as he said, "I don't want my grandpa teaching me about gambling at [age] seven."

It will be hard for Buffalo Wild Wings or any organization to resist the revenue that can come from entering the growing market for sports gambling. Hopefully, however, the restaurant chain will recognize the unique influence it wields, especially on the lives of young people, and avoid betting on a strategy that can be considered “Single-Minded Marketing.”

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Mailing Away Your DNA

12/14/2018

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

Looking for a unique gift for a family member this holiday season? Have you thought of surprising them with the ‘gift of ancestry’? DNA testing has become increasingly easy, popular, and affordable, but do the benefits of sending one's saliva for genetic analysis outweigh the costs?

The market for genetic testing exploded in 2017, and it keeps growing. Some predict sales of over $22 billion by 2024, driven by top competitors like 23andMe, AncestryDNA, Family Tree DNA, MyHeritage DNA, and Living DNA. Over 12 million people already have had their DNA tested.

What exactly does DNA testing do? It depends on the test, of which there are three main types:

Autosomal: Both men and women can take this test, which estimates an individual’s ethnicity and cousin matches on both maternal and fraternal sides over about 5 to 6 generations.
YDNA: Only men can take this test, which tracks Y chromosomes passed from fathers to sons over many generations.
mtDNA: Both genders can take this test, which examines genetic markers only along mothers’ material lines, and also provides the user’s haplogroup.

Autosomal tests appear to be the most popular of the three, as they’re the ones we most often see advertised, with consumer-friendly price points between $49 and $99. These tests are good at helping users fill out their family trees. AncestryDNA, for instance, claims it can search for relatives of the test taker among its 10 million-person database and promises to “confirm ethnicity percentages and close relationships with a high level of accuracy.”

AncestryDNA is also able to help users see migratory patterns through its Migrations tool. This feature identifies a subject’s ancestors “associated with one of more than 300 genetically based communities in the years between 1750 and 1850” to determine migration paths in the U.S. and overseas.

Some autosomal tests have pushed the information envelope even further by providing health reports. For example, 23andMe’s Health+Ancestry test informs users of whether they appear to be a carrier for more than 40 genetic conditions, it provides insights on genetic-related wellness indicators such as lactose intolerance, and it identifies genetic risks for things such as Parkinson’s, late-onset Alzheimer’s and Celiac disease.

People who purchase DNA tests certainly receive unique information that’s at a minimum entertaining, if not educational and possibly helpful in addressing potential health problems. Considering how much many consumers spend on a dinner out, a concert, or a ballgame, a genetic test seems like a pretty good deal. However, there are potential costs for DNA testing beyond the initial cash outlay.

Perhaps the biggest nonfinancial cost is the risk of lost privacy. Genetic testing companies seem to have safeguarded customer information so far—there’s yet to be a major data breach—but the potential risk from carelessness or maleficence is considerable according to New York Senator Chuck Schumer (D), who contends: “Now, this is sensitive information, and what those companies can do with all that data, our sensitive and deepest information, your genetics, is not clear and in some cases not fair and not right.”

The Federal Trade Commission (FTC) appears to share Schumer’s apprehension as evidenced by its investigation of the data policies of 23andMe and Ancestry and by the following statement: “A major concern for consumers should be who else could have access to information about your heritage and your health.”

What exactly are the risks of misappropriated DNA data? One possibility is that some organizations may conduct controversial research such as looking for connections between race and intelligence. Although such risks for entire people groups are probably few, there are many risks that could impact specific individuals.

This past spring, California detectives revealed that they tapped a public genealogy database to break the longstanding case of the Golden State Killer, identifying suspect Joseph James DeAngelo. Although few may object to the use of public DNA data to catch a serial killer, the possibility of government accessing such information for other reasons gives many people pause.

For instance, what if police were to use genetic information to predict those likely to commit crime, along the lines of the 2002 sci-fi thriller Minority Report? Such use is farfetched, but it’s not unreasonable to imagine public officials employing DNA data to identify government protestors or others who reject their policies.

Perhaps even more realistic is the possibility of businesses leveraging DNA data for profitability purposes. Life insurance companies, for example, might analyze genetic information in order to determine if someone is a good policy risk. Likewise, any company could take a similar tack in deciding whether to hire a prospective employee.

But, do these risks really exist if companies safeguard users’ data and only share it in anonymous form? First, an endless series of high-profile data breaches suggests that hackers are capable of penetrating the defenses of the largest and seemingly most secure organizations. Second, when people submit genetic tests, they often provide information that allows for individual identification, e.g., age, gender, address. Third, police and government might pressure companies to share their DNA data.

Why, then, do people continue in droves to mail their DNA to genetic testing companies and why do most of those users agree to share their DNA with the firms’ research partners. Maybe consumers don’t have a good understanding of the risks. More likely, they recognize that the potential risks are very remote, while the benefits they receive are very real and meaningful, for instance:

Knowing one’s family history: It can be deeply satisfying to learn things about one’s ancestors and the places from which they came. That kind of information often helps us better understand ourselves.
Realizing potential health risks: Of course, it’s important not to obsess about such risks; however, such knowledge can be a very helpful lens through which to view our bodies and perhaps take preventative steps
Reuniting with lost family members: This benefit doesn't apply to most genetic test takers, but some have discovered lost siblings and other relatives through the process.

Life is full of risks—much of what we do to survive and thrive involves deciding which risks are worth taking. Perhaps the risks of DNA testing will increase over the coming years. Right now, though, the risks seem remote while the benefits are real, which makes it easy to understand why so many people take genetic tests. It also makes it reasonable to suggest that the firms offering the tests are responsible for “Mindful Marketing.”

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Targeting Teens for E-Cigarettes

11/30/2018

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

Remember when teenagers would rush from high school so they could light a cigarette? Some would even try to sneak a smoke in the bathroom between classes. Those days are now back with a 21st century twist. Like many other things, cigarettes have gone high-tech, which makes them more appealing to minors, but has the biggest e-cigarette maker intentionally targeted teens?

During a recent marketing class, our discussion turned to e-cigarettes and one student, who was just a year or two removed from her own secondary education, mentioned that e-cigarette use is rampant in high school. I didn’t realize that lighting up electronically had become such an obsession for adolescents. A little online research, however, quickly supported the student’s claim.

According to the National Institute on Drug abuse, 16.2% of 12th graders used e-cigarettes in the past month, with the rate among boys being twice that of girls. The Food and Drug Administration (FDA) has reported that more than 2 million middle schoolers and high schoolers regularly used e-cigarettes in 2017, making e-cigarettes “the most commonly used form of tobacco among youth in the United States.”

Some describe an “epidemic” of e-cigarette use among adolescents. In fact, certain high schools, like Plainedge High School in New York, have installed special chemical detectors in bathrooms to sense changes in the air and notify administrators when students are “vaping.” All of this is happening despite the fact that FDA regulations prohibit minors from buying e-cigarettes in stores and online.

For those who find a way to purchase e-cigarettes, there are plenty of choices--over 460 different brands are competing for consumers. However, the biggest brand by far is Juul, which has about 72% of the market. Juul Labs, soared past $1 billion in sales after just its third year in business.

As might be expected, Juul has drawn special scrutiny when it comes to young people’s use of e-cigarettes. This past September, the FDA warned Juul and four smaller competitors (Vuse, MarkTen, blu, and Logic) that they had “60 days to convince the agency that they have adequate plans to stop kids from vaping with their products.” If Juul and the others can’t show how they’ll do a better job keeping minors from vaping, they will need to cease selling.

When e-cigarettes first hit the market in 2004, there was a sense of optimism: ‘Here’s a safer way for smokers to satisfy that desire and hopefully kick the habit entirely.’ So, what happened to that prediction, and why are so many teens, most of whom never smoked before, such a significant part of the e-cigarette market?

According to the National Institute on Drug Abuse, “e-cigarettes are not an FDA-approved quit aid, and there is no conclusive scientific evidence on the effectiveness of e-cigarettes for long-term smoking cessation.” In fact, for teens, the relationship between e-cigarettes and cigarettes seems to be the opposite.

Of teenagers who use e-cigarettes 30.7% start smoking regular cigarettes within 6 months, compared to just 8.1% of those not using e-cigarettes. Similarly, a study found that “students who had used e-cigarettes by the time they started 9th grade were more likely than others to start smoking cigarettes and other smokable tobacco products within the next year.”

Plaintiffs have brought several lawsuits against Juul specifically, alleging that its products’ high levels of nicotine caused the users to become addicted. Ironically, some of them choose to use JUUL because they thought it would help them quit smoking.

E-cigarettes are addicting because, just like traditional cigarettes, most contain nicotine. Juul’s products’ have especially high levels of the chemical: A single JUUL pod contains “as much nicotine as a pack of 20 regular cigarettes.” In addition, Juul’s particular formulation of nicotine salt “increases the rate and amount of nicotine delivered into the blood, compared with other formulations.”

Nicotine is particularly detrimental for young people because it can impede brain development, which is critical in the teen years. In addition, adolescents who are exposed to nicotine are at greater risk of future drug addiction.

One good thing is that e-cigarettes don’t have as many harmful chemicals as burned cigarettes. However, e-liquids still contain “at least 60 chemical compounds.” One study found that the vapor from some e-cigarettes carried toxic chemicals and known carcinogens, while the devices themselves contained “potentially toxic metal nanoparticles.” Also, unlike traditional cigarettes, e-cigarettes are susceptible to explosion, given that they are electronic devices that produce an aerosol by heating a liquid.

So, e-cigarettes are dangerous in more ways than one, but did Juul really take any specific steps to target teens? This is where analysis becomes complicated. Despite an organization’s sharpest marketing strategies and best intentions, consumer behavior sometimes goes in directions that are very hard to predict. Take Tide Pods.

Perhaps Proctor & Gamble, maker of Tide, could have anticipated the candy-like appeal its colorful, round detergent balls would have to consumers. However, it’s hard to imagine anyone predicting the viral rise of the ill-advised Tide Pod Challenge in which young people put pods in their mouths, sometimes ingesting them. P & G certainly did not encourage that behavior.

Are e-cigarette sales to teens Juul’s equivalent of the Tide Pod Challenge—an unfortunate, unforeseeable happenstance? Probably not. For one thing, young people’s use of e-cigarettes has proven to be much more than a fad. Moreover, unlike P & G, Juul employed several specific strategies that made its marketing attractive to teens.

For example, Juul used young, attractive models in its ads, who might appeal to anyone but would be especially alluring to image-obsessed teens. On its website, the company surrounded its product with “luscious-looking images of fruit.” It also chose youth-friendly flavor names like crème brulee and mango. In addition, Juul designed its products to be trendy and sleek, like flash drives, which could be accessorized with colorful skins.

Despite this circumstantial evidence, there doesn’t appear to be any ‘smoking gun,’ i.e., a Juul executive’s on-the-record admission or a leaked internal document outlining intentional targeting of teenagers. Does that lack of explicit evidence of clear intent absolve Juul? It should not, for two main reasons:

First, marketers at Juul should have realized that their tactics would have significant teen-appeal. If Juul really wanted to convert seasoned smokers to e-cigarettes, not enlist teens, it would have taken a different approach, like featuring older, former tobacco smokers in its ads. Interestingly, Juul initially did take that tack, but when it “failed to gain traction on social media and failed to gain sales,” it switched to the more kid-friendly strategy. Juul has since returned to its original adult approach, but only after considerable external pressure.

Second, Juul knew who was using its products, even though Juul executives have denied knowing how many teens were buying Juuls—a claim that FDA Commissioner Scott Gottlieb has called “incredulous.” Even if Juul somehow didn’t have access to accurate retail sales data, it could have easily seen the multitude of young people posting pictures of themselves using Juul products on social media. These users even coined a company-specific term to describe their actions: “Juuling.” That kind of branded verb creation is typical of teens and only tends to happen for the biggest social phenomena, e.g., Photoshop, Google.

Regardless whether Juul intended to target teens, its strategies encouraged their action, catching many in an unwitting cycle of addiction, which fits the description of an unfortunate legal/ethical concept: adverse impact.

Pressure from the FDA and the Massachusetts attorney general has compelled Juul to drop most of its kid-friendly tactics, but at this point, it will be difficult to put the proverbial genie back in the bottle. Juul and other e-cigarette makers who ‘inadvertently’ targeted teens may continue to deny responsibility, but they will always be known for their “Single-Minded Marketing.”

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Starbuck's Learns Sign Language

11/16/2018

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

If you’ve gone to a really loud concert, gotten a bad ear infection, or had a clogged ear canal, you know a little about hearing loss. Over five percent of the world’s population has permanent “disabling hearing loss,” yet few organizations consider those consumers’ special needs. One multinational corporation, however, has embraced this unique group of customers in a way that should make every company listen.

A few weeks ago, Starbuck’s opened its first Signing Store in the United States. Located at 6th and H Street in Washington, D.C., the store first appears to be a typical Starbuck’s, but a closer look reveals a unique coffee house, specially designed for those who are deaf or hard of hearing.

For instance, the store features a more open layout and low-glare surfaces in order to facilitate visual communication. Store employees, 20-25 of whom are themselves deaf or hard of hearing, are fluent in American Sign Language (ASL). Deaf baristas wear “ASL aprons embroidered by a Deaf supplier,” while those who can hear sport “I Sign” pins. The store also contains some high-tech advancements to ease ordering, such as “digital notepads and a console with two-way keyboards for back-and-forth typed conversations.”

Those adaptations sound nice, but should a global icon do so much to accommodate a relatively small number of people who tend to be scattered throughout the population? With over 28,000 retail stores, Starbuck’s is by far the “largest coffeehouse company in the world,” as well as the third largest fast food restaurant, behind only McDonald’s and Subway. The firm employs about 277,000 people and has annual revenues of over $24 billion. In light of such scale, isn’t it an unnecessary distraction to design and operate a solitary store that’s so specialized?

First, it’s important to note that Starbuck’s Signing Store is strategically located near Gallaudet University, “a federally chartered private university for the education of the deaf and hard of hearing.” Gallaudet enrolls over 1,100 students, and if they are like other college students, which they undoubtedly are, most probably love to drink coffee. So, Starbuck’s has a ready-made, geographically concentrated target market, within a short walk of its store.

A second consideration is that a customized coffee shop is something that’s replicable. In fact, the Washington, D.C. outlet is Starbuck’s second Signing Store. The company opened the first one in Kuala Lumpur, Malaysia in 2016. Perhaps there are suitable spots for similar stores in other parts of the U.S. or the world. In American alone, there are nearly 50 residential schools for the deaf.

Likewise, there may be opportunities to develop customized stores for individuals with other special needs. For instance, there are nearly 40 schools for the blind in the U.S. It also may be possible to tailor stores for certain fields of study, e.g., music or visual arts.

Third, Starbuck’s Signing store has produced some very positive PR for the company. A Google search of “Starbuck’s Signing store” returns over 8 million hits, including many complimentary news pieces in major media like USA TODAY, CBS News, Fortune, and the Washington Post. The National Association for the Deaf also has praised the company's efforts to educate and enrich the lives of its constituents and many others.

Fourth, and perhaps most important, the Signing Store fits squarely within Starbuck’s mission, values, and goals. The company claims an “ongoing commitment to inclusion, accessibility and diversity,” which is broadly reflected in its mission statement: “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time." More specifically, the first of Starbuck’s four core values encourages “Creating a culture of warmth and belonging, where everyone is welcome.” This value is evident in the company’s 2018 goals, which include ongoing global social responsibility that creates “meaningful impact in the communities it serves.”

Although it’s unlikely that customized stores will ever be profitable on the scale of its traditional outlets, Starbuck’s should still be able to leverage the specialized model for meaningful growth. Moreover, with every store opened to serve disadvantaged people groups, the company builds tremendous community goodwill and gains very positive global publicity. For all these reasons, Starbuck’s Signing store is an emblem of “Mindful Marketing.”

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Killer TV

11/2/2018

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

"In the future everybody will be world-famous for fifteen minutes." Social media has made Andy Warhol’s words at a 1968 Stockholm art exhibit more prophetic than ever. Notoriety for all seems nice, until we remember that despicable acts like mass murder also gain fame for those who do them. Avoiding identification of killers may be impossible, but should television shows capitalize on their criminality?

A week ago, America suffered yet another incident of mass murder. This time the tragedy took place in Pittsburgh, where a gunman entered the Tree of Life Synagogue and took the lives of 11 people, while also wounding several others.

Just a day after the shooting, the killer’s name, which I won’t mention here, was already approaching 30 million hits in a Google search, and detailed background information about him filled articles including ones in the New York Times, CNN, and the Washington Post. That’s already much media exposure for a murderer, but his ‘15 minutes of fame’ is just beginning.

In the days and weeks to come, many more details of the massacre will surface, and analysts will paint a clearer picture of who the gunman was and what caused him to act. However, even those news accounts probably won’t end the perpetrator’s publicity. It’s very likely that the killer will eventually become the focus of at least one made-for-television documentary.

Why does such programming seem so certain? At least three networks now have television series dedicated to detailing the actions and lives of well-known murderers:

Netflix’s I am a Killer features death row inmates giving firsthand accounts of their crimes.

CNN’s How it Really Happened describes “some of the most notorious crimes, mysteries, trials, and celebrity tragedies of our time.”
Oxygen’s It Takes a Killer examines “the world's most notorious murders and takes you inside the minds of the killers.”

In fact, Oxygen has much more than one TV show focused on killers. Oxygen Media, which is part of NBC-Universal, describes itself as “a multiplatform crime destination brand for women” that is in over 77 million homes. The network also airs a show called Method of a Serial Killer, and it has a webpage titled “Martinis and Murder. In other words, whether on TV or online, Oxygen is all crime, all the time.

You may be thinking, “Television based on crime, even murder, isn’t anything new.” That’s true; however, the newer genre of crime TV is different than past TV series. For instance, writers scripted the crime in classic shows like Columbo, Matlock, and Murder She Wrote, i.e., the programs weren’t based on real murders. Furthermore, the focus was on solving the crime not on the gruesome act itself or on the life-story of the person who did it.

On the other hand, shows like America’s Most Wanted and The Hunt with John Walsh did feature the crimes of real killers, but the reason was to gain the public’s help in finding the fugitives so they could be brought to justice. These shows gave enough information about the murderers to facilitate their capture; they certainly didn’t glamorize the killers.

Of course, it’s unlikely that the creators of I am a Killer or any of the other new shows have an agenda to idolize murderers. The producers probably just want to satisfy viewer desires, and unfortunately many people have an appetite for information about killers.

For instance, just two days after the recent tragedy in Pittsburgh, a Google search of “synagogue shooting” produced 19.9 million hits, while a similar search of “synagogue shooter” yielded 82.7 million—over four times more.

So, why not give people what they want? If TV viewers are fascinated by murderers’ methods and bios, what’s wrong with letting them watch those things? Actually, when it comes to murder, there are several reasons why it's best not to give consumers what they want, but rather to give society what it needs.

First, it’s important to recognize that unlike America’s Most Wanted, TV series like I am a Killer do little to improve anyone’s safety. The serial killers the latter show highlights are already behind bars and no longer a threat, whereas those in the former were still on the lam and needed to be caught.

One might argue that I am a Killer could help others identify unbalanced individuals and perhaps prevent future slayings, but the program seems just as likely to motivate people on the cusp of violence to act out their hostilities, partly because of the recognition they will get. Fame could very well be an extra incentive for them to kill.

Consistent with that thought, it’s notable that networks have long-since stopped broadcasting people who trespass on the field or court during sporting events. Even though many TV viewers are probably curious and would like to see the spectacles, the live shows’ producers quickly select other camera shots, as announcers divert attention from the unseen disruption. The reason: Networks don’t want to give the interlopers the undeserved fame they seek or encourage others to follow suit.

Second and closely related to the first point, unstable individuals might see a show like I am a Killer as a kind of ‘how-to guide’ for committing murder. True-crime programs often recount killers’ tactics in considerable detail. Most people watch these exposés with unsettled interest—like a roadside car accident from which we cannot avert our gaze. Potential killers, however, might pick up tips and envision how they could use them on specific people. Needless to say, educating for mass murder is not a desirable thing.

Third, and perhaps most important, shows like I am a Killer demonstrate a lack of sensitivity to murder victims’ loved ones. A few years ago, I was scrolling through TV channels, when a documentary about the Unabomber caught my attention. I watched for 30 minutes or so with uneasy interest. Now I ask myself, “How would I feel about that show if the terrorist's bombs had killed one of my family members or friends?”

I probably wouldn’t want to see his image anywhere, let alone watch him receive hours of network television exposure. For many people, the Unabomber is an unseemly fascination, but for those impacted by his violent acts, his likeness is likely a painful reminder of how their loved ones were lost.

It’s bitter irony that the perpetrators of mass murder tend to receive inordinate media attention while their victims are often barely acknowledged as individuals; rather, their identities are lumped together in the massacre’s death toll, e.g. “11 Killed.” TV series that focus on real killers perpetuate that injustice, perhaps even incentivizing and encouraging more murder. Such true-crime shows are guilty of “Single-Minded Marketing.”

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Is Fortnite Addiction for Real?

10/19/2018

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

Alcohol, gambling, opioids: Out-of-control consumption of such things has upended the lives of many. Now some are arguing for an unlikely addition to the list of harmful obsessions—Fortnite. The wildly popular video game does seem like a compulsion for some, but does its play really rise to the level of addiction, and if so, who’s responsible?

If you’re like me--one of the few human beings who has never played Fortnite--you’re probably wondering what all the fuss is about: why 3.4 million people were all online at once playing the game one day during February 2018, why celebrity rappers like Drake and NBA stars like Paul George are promoting the craze, why an upcoming Fortnite tournament is promising $100 million in prize money, why the game is expected to produce revenues of $2 billion in 2018, and why some call Fortnite “the hottest game in the world.”

For those who don’t know, Fortnite is a shooter game based on a premise similar to that of the Hunger Games: “Players are dropped unarmed onto an island. There, they must make their way to ‘houses,’ where they find weapons they then use to shoot and kill, they build structures and try to avoid the destructive storm that threatens all outside its safe zone.” The winner is the last man/woman standing.

Apparently the most popular version of Fortnite is the multiplayer “Battle Royale” in which 100 people compete against each other at a time, either individually or on teams of up to four people. The game is free to play on systems like PlayStation, as well as on computers and mobile phones. Fortnite makes money by charging for in-game extras like costumes and special tools or weapons.

Few entrepreneurs worry about their products becoming addictive. In the beginning, they’re just hoping some people will be intrigued enough to try their products. The thought that anyone, let alone millions of people, would find his games impossible to put down, had to have been one of the furthest things from the mind of Tim Sweeney, creator of Fortnite and the CEO of Epic Games. Sweeney started his video game company, originally called Potomac Computer Systems, in 1991, at the age of 21, in his parent’s house in Potomac, MD. Epic Games is now one of the industry’s brightest stars.

However, phenomenal growth and popularity are not alone grounds for accusations of addiction. So, what are Fortnite players experiencing that leads some to levy such extreme charges? Here are a few examples:

A mother reported that her son stole her credit cards and spent $200 on in-game purchases.
A father found his nine-year-old daughter sitting in a urine-soaked chair as she played the game. He said “She was so hooked to the game she wouldn’t even go to the toilet.”
A mother forced her son to stop playing the game at 11:00 pm on a Friday night, only for him to wake up at 4:00 or 5:00 am Saturday to start playing again.
A mother suffered a concussion when her fourteen-year-old son headbutted her when she tried to take away the gaming system on which he played Fortnite.
At least 200 couples in the UK cited Fortnite and other online games as the reason for their divorces.

Such behavior certainly is unusual and disturbing, but does it really reflect addiction? To answer that question it’s important to understand exactly what addiction is. In the early 1950s, the World Health Organization adopted the following definition of drug addiction: “a state of periodic or chronic intoxication detrimental to the individual and to society, produced by the repeated consumption of a drug (natural or synthetic). From this definition, Isbell and White (1953) derived three characteristics of addiction:

"An overpowering desire or need (compulsion) to continue taking the drug and to obtain it by any means"
"A tendency to increase the dose"
"A psychic (psychological) and sometimes a physical dependence on the effects of the drug"

Of course, these descriptors are for chemical substances that people typically ingest, not video games they play; however, when Fortnite is substituted into the phrases, the criteria provide an eerily good fit for the shocking behaviors listed above:

An overpowering desire or need (compulsion) to continue to play Fortnite and to obtain the game by any means [stealing mother’s credit cards]
A tendency to increase play of Fortnite [waking up at 4:00 or 5:00 am in order to play more]
A psychic (psychological) and sometimes a physical dependence on the effects of Fortnite [headbutting mom when she tried to take the game away]

Isbell and White (1953) add that addiction is inherently about excessive, not proper, use of the substance, resulting in harm to the addict and/or others. That's another description that seems to fit the five Fortnite cases described above, like the divorces, but it also begs another important question: How common are such Fortnite occurrences?

In researching online for this blog post, I typed “Fortnite addiction” into Google, which produced around 68 million hits. As I read down the list of top results, however, I noticed that most were repeats of the same few stories: the girl who wouldn’t take a bathroom break, the boy who headbutted his mom, the UK divorces.

Chances are, the few Fortnite fanatics who show signs of addiction are anomalies. According to Business Insider 78.3 million people played Fortnite this past August. Among all those Fortnite fans, many probably play the game more than they should, but very few are likely addicted in any scientific sense. Contrast those proportions to statistics for drug and gambling addictions like the following:

In 2015, nearly 21 million Americans over the age of 12 had a substance use problem.
About 10% of Americans over the age of 18 “claim to be in recovery from an alcohol or drug abuse issue.”
The leading cause of accidental death in the United States is drug overdose.
“Approximately 2.6% of the U.S. population has some type of gambling issue.”
Among those aged 14 to 21, as many as 750,000 have gambling addictions.
About 6% of U.S. college students have gambling problems.

Beyond those sobering statistics, another drug stat pretty much says it all: “Out of 24 million Americans who have used illicit drugs in the preceding month, 19.6 million [81.7%] have had a substance abuse disorder in the preceding year.” It’s very telling of the addictive nature of illicit drugs that only about 18% of users escape drug abuse.

There are no comparable statistics for Fortnite, but it appears that a much smaller percentage of its players show signs of addiction. Of course, this lack of evidence doesn’t prove that people cannot become addicted to Fortnite; maybe they can. However, when a very large number of people is exposed to a stimulus such as a video game and an extremely small percentage exhibits addictive behavior, perhaps the abuse is more a function of those individuals and their unique situations, rather than the game itself.

Everyone needs to be accountable for their time and to use self-discipline to set limits on activities that they find so enjoyable they can become lost in them, e.g., televised sporting events, Netflix, YouTube, Facebook, etc. Parents have the added responsibility of holding their children accountable, which is especially difficult when the kids really don’t want to put down the thing they love.

However, companies also can do things to discourage overindulgence in their own products. For instance, a few months ago, I wrote a blog post about iPhone addiction, describing Apple’s Digital Health Initiative, which includes new software that will monitor and set limits on users’ screen time.

Maybe Epic Games could consider a similar measure. The company should at least make sure there’s nothing in Fortnite that encourages people to shirk self-monitoring, e.g., in-game incentives tied to how long one has been playing. Again, I’ve not played Fortnite, so it’s hard for me to be more prescriptive. Perhaps those who are familiar with the game firsthand can offer more specific suggestions about limiting use.

Finally, it goes without saying that a ‘shooter game’ is violent. I’ve read, however, that Fortnite “isn’t as graphic as many other shooter games” because its characters are more “cartoony” and “its graphics are free of blood and gore.” Still, any activity that glamorizes killing others should give us pause. That aspect of the game, however, will need to be the focus of a future blog post.

As you can probably tell, I’m neither a big Fortnite fan or cynic. As I’ve tried to look objectively at the issue of video game addiction, I haven’t seen enough evidence to suggest that Fortnite itself is enabling abuse, certainly not compared to other activities commonly called addictive. For these reasons, it seems like Fortnite is a tenuous version of “Mindful Marketing.”

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Could Cannabis and Coca-Cola be the Real Thing?

10/5/2018

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

Over its 130+ year history, Coca-Cola has created some of the most memorable product taglines: Enjoy Thirst (1923), Ice Cold Sunshine (1932), It’s the Real Thing (1969), I’d like to Buy the World a Coke (1971), Coke Adds Life (1976), Have a Coke and a Smile (1979), Can’t Beat the Feeling (1988), and Open Happiness (2009). Now that the world’s largest beverage maker is considering drinks infused with marijuana, maybe a new tagline is coming: Have a Coke and Some Cannabis.

A few weeks ago, news sources including Reuters and BNN Bloomberg reported that the Coca-Cola Company was in talks to develop beverages infused with cannabis. The alleged partner is Vancouver-based Aurora Cannabis Inc., Canada’s third biggest producer of weed, which has a market cap of $9.365 billion.

How can Coca-Cola, one of the world’s most respected companies, the parent of several family-friendly beverage brands, and the creator of those loveable polar bears, enter the market for a drug that is illegal in the vast majority of U.S. states and most countries in the world? Perhaps desperate times call for desperate measures.

Coca-Cola is feeling the heat from increased beverage industry competition coupled with fizzling consumer demand for sugary sodas, which represent several of the company’s hallmark brands. Such pressures have led the firm to diversify into healthier drinks over the last decade or two, and most recently the company announced the purchase of UK-based Costa Coffee for $5.1 billion.

True, there is such a thing as a caffeine high, but there’s a big difference between a cup of joe and a bag of weed—so I’m told; I’m not a coffee-drinker and I have no experience with marijuana, just to be clear. However, that lack of firsthand knowledge didn’t stop me from writing a Mindful Matters blog post a couple of years ago that poo-pooed a gym combining workouts with weed. I’ve since done more reading about cannabis, as well as Coca-Cola’s potential use of it, and what I’ve learned has been surprising.

Most of us have heard of the psychoactive, or mind-altering, effects that marijuana can have on users, which include a relaxed sense of well-being and an altered sense of time, as well as anxiety, fear, and hallucinations. Those potentially dangerous consequences stem from a specific component of the drug called tetrahydrocannabinol, or THC.

However, cannabis has another component, a medicinal one called cannabidiol, or CBD, that is not intoxicating and doesn’t make people high. Also, the National Institute on Drug Abuse says that CBD, which can be safely extracted from cannabis, does not appear to be addictive. Instead, there is evidence that CBD lessens muscle inflammation, decreases pain, and reduces cramping.

What’s the point of this science-speak? The difference between THC and CBD matters to Coca-Cola because its potential new product uses the latter. The company is not contemplating some kind of liquid reefer or ecstasy juice. If the firm does partner to produce a cannabis-infused beverage, it will likely be in the ‘recovery drink’ category, offering the muscle-mending benefits mentioned above. Think Powerade with a medicinal punch.

Still, isn’t it crazy for a renowned company like Coca-Cola to risk its reputation by connecting itself to cannabis? It’s not foolish for a few reasons. First, there is increasing recognition and acceptance of the medicinal form of the drug. U.S. states and other countries continue to amend their laws to make medical marijuana legal. Also, there are people now taking prescription drugs to manage the muscle symptoms mentioned above, with little effect. The CBD form of cannabis might help them find relief without making them high or risking addiction.

Second, if Coca-Cola moves forward with a cannabis-infused drink, it can safeguard the company’s reputation by individually branding the product. The firm has taken this approach with most of its other products like Minute Maid, Vitaminwater, Fairlife milk, and Sprite. These products have branding that stands on its own and basically just links to the parent company through the fine print on the back of the packages.

Third, Coca-Cola’s consideration of cannabis deserves credence because it’s not the only prominent company exploring such possibilities. At least two other big beverage firms, Molson Coors and Constellation Brands (brewer of Corona beer), are taking serious steps toward cannabis-infused drinks. Furthermore, the market for CBD-based products is expected to reach $2.1 billion by 2020.

When I first heard of Coca-Cola’s meeting with Aurora, my thought was the pairing would produce either Single-Minded or Mindless Marketing. What a difference some focused reading and a few letters (CBD vs. THC) can make. While writing this blog post, my perspective has changed, and it still could evolve. Right now, though, I believe the potential partnership could yield a respectable wellness product that might be “Mindful Marketing.”

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Businesses that Bury the Hatchet

9/21/2018

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

What’s a fun night out with friends for you? Maybe it’s dinner at a favorite restaurant or a trip to the movies to see a new release. How about throwing axes? Thanks to some adventurous entrepreneurs, more and more people are participating in the pastime once reserved for lumberjacks. Hurling hatchets undoubtedly offers an adrenalin rush, but does it hit the mark for Mindful Marketing?

You can count me among those who had no idea that axe throwing is now in vogue. However, like the return of plaid, the trend is becoming harder to miss, as axe throwing sites pop up in cities such as Austin, Baltimore, Denver, Detroit, and Philadelphia and as news media like USA Today, NBC, and the Washington Post cover the craze.

The name is self-explanatory, but what exactly does axe throwing involve? Participants hoist a 14-inch hatchet over their heads and chuck it at a piece of plywood 12-15 feet away. They earn points based on where their axe sticks in the target, e.g., outer ring, inner ring, bullseye, or blue dot (kill shot).

An axe throwing outing can last anywhere from 60 minutes to several hours, depending on who’s throwing and for what reason, for instance, an individual taking in some target practice or a team competing in a tournament league.

The cost of axe throwing also varies, but Backyard Axe Throwing League’s pricing offers a ballpark: about $20/hr. for walk-ins, $36 per person for parties, and $120 per player for eight-week leagues. The businesses usually supply the axes.

Are there really enough consumers willing to pay that kind of money to throw some hardware at some hard wood? Also, do many people have the physical strength and stamina to endure an evening of axe throwing? Apparently the answer to both questions is ‘Yes.’

First, axe throwing hits the sweet spot for American’s largest age demographic, Millennials, who value experiences (often the wilder the better) over things. These young people have a bad case of FOMO (fear of missing out). Also, many of them likely recognize their antisocial tendencies involving digital devices and want reasons to put them down so they can interact in person with real humans.

Such consumer desires have undoubtedly spurred the rapid spread of axe throwing and the success of businesses such as Bad Axe Throwing, Bury the Hatchet, and Generation Axe. Backyard Axe Throwing League, which began in 2006, now has over a dozen locations in the U.S. and Canada and claims to have served over a million people.

Second, as the growth suggests, axe throwing is not just for the big and burly. The axes are fairly light (usually less than 2 lbs.), so success depends more on proper form than brute strength. Women and men of all sizes can excel at the craft.

That sounds good, but isn’t axe throwing dangerous? After all, axes have been used for millennia to chop things, including people. Furthermore, many axe throwing establishments also serve alcohol, which seems like a precarious, if not perilous, combination.

Axe throwing businesses, however, suggest that the activity is completely safe, and they provide some convincing support for that claim. For instance, patrons at Bury the Hatchet receive a “safety briefing and training session before they are allowed to participate.” Like many others, this business also uses cordoned off throwing lanes that are “a cross between a batting cage and a bowling alley.”

Bad Axe Throwing, which claims to be “the biggest urban axe throwing club in the world” says that it has never had a single injury. Apparently that track record is due to safety protocol such as inspecting each axe before every event, making sure blades are sharp enough to stick in wood but not sharp to the touch, and requiring that participants “throw and retrieve their axes in sync with one another.”

Also, while not all axe throwing businesses serve alcohol, for those that do, intoxication doesn’t seem to be an issue. Maybe it’s because people go to these places to throw first and drink second, so their desire to perform well acts a restraint on their drinking.

Meanwhile, axe throwing establishments claim some tangible benefits, namely exercise (a person can get a good workout throwing axes as well as bending to pick them up) and relationship building (fewer things bond people together more than competition and/or shared embarrassment). Bury the Hatchet also says that participants can experience stress relief and get an ego boost, as social media contacts can’t help but like pictures and videos of their friends throwing axes.

Despite these benefits, some may suggest that spending a few hours hurling hatchets is a waste of time and money. Of course, we don’t all have the same tastes in recreation. For some it’s an opera and for others it’s a minor league baseball game that refreshes the mind and reenergizes the spirit. Still, for others it’s axes.

It’s hard to say how long axe throwing will remain the rage, but many more people will likely channel their inner lumberjack and experience the primal trend. Voice assistants and virtual reality may make it seem risky and passé, but axe throwing for fun is “Mindful Marketing.”

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Just Divided over Nike's New Ad

9/9/2018

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

Nike just aired a new commercial that has quickly become entangled in controversy. The two-minute “Dream Crazy” ad is a well-produced spot that features footage of inspiring amateur athletes, as well as a couple of the brand’s superstar spokespeople. Surprisingly, the source of conflict is the ad’s narrator, who people seem either to admire or revile, which makes marketing analysts ask, “What did Nike just do?”

Marking the 30th anniversary of the company’s iconic “Just Do It” campaign, Nike’s new ad uses narration from NFL-quarterback-turned-activist Colin Kaepernick, who also appears briefly in the spot to urge viewers to, among other things, “Believe in something, even if it means sacrificing everything.”

If you’re not familiar with Kaepernick, he was one of the first professional football players to choose to kneel during the national anthem as a sign of protest against what many believe has been growing racial injustice in America. The last game he played was in January of 2017, but Kaepernick has since become the face and voice of a movement that extends well beyond professional sports.

Of course, not everyone has appreciated Kaepernick’s activism. Some resent that his example has encouraged others to kneel during the national anthem, which they believe is either unfounded protest or a misplaced act that disrespects the flag and demonstrates a lack of patriotism. Anthem protests have since become a point of contention for many NFL fans, causing some to swear off the league entirely.

In short, whether right or wrong, Nike’s use of Kaepernick has struck a raw nerve in a nation deeply divided.

Before going further, I need to say that I really didn’t want to write about this ad. Maybe it’s my Swiss heritage that makes me lean toward neutrality and dislike discord, especially political. It’s not fun for me to tackle an ad that arouses such strong social division. However, after much debate and several stops and starts, I still felt compelled to address the ad and so decided to “just do it.”

The first step in this Mindful Marketing analysis is ethics: Does Nike’s ad uphold societal values? Given the sometimes-ambiguous nature of “societal values,” that question is inherently hard to answer, but the circumstances surrounding the Nike commercial make this inquiry especially difficult.

The ad’s ‘dream big’ theme is positive and hopeful and probably not something with which many people would take issue. Instead, the debate seems to fall squarely on the company’s use of Kaepernick and whether what he represents is decent, fair, honest, respectful, and responsible (the five core values Mindful Marketing seeks to uphold).

Unfortunately, for those like me trying to make a moral judgment, both sides can make a compelling case based on the same principles. People who oppose Kaepernick can argue, for instance, that his activism unfairly characterizes police officers who are honest and considerate of others. His opponents also may contend that the anthem protests dishonor members of the armed forces who risk their lives to protect the freedoms the flag represents.

On the other hand, those who support Kaepernick can claim that the social justice movement he signifies is fundamentally about showing everyone respect. Similarly, this side shares that its aim is to ensure the fair treatment of all people.

Admittedly, the issues are more complicated than what I am presenting here; however, the point is that both sides have strong countervailing points that are difficult to adjudicate. For sake of argument, therefore, let’s give the ad the benefit of the doubt and assume that it does support societal values.

The second question, then, considers the ad’s effectiveness, which is also very difficult to discern. After the ad was released online this past Monday, several of the first news reports were of anger. Some consumers vowed to boycott Nike products, while others took more immediate and drastic action by burning their Nike shoes and socks.

Newer reports, however, have been that after the ad was released, Nike’s sales “grew 31% from the Sunday of Labor Day weekend through Tuesday, as compared with a 17% gain recorded for the same period of 2017, according to San Francisco–based Edison Trends.”

On the other hand, Nike’s stock (NKE), which had closed at $82.18 a share on Friday, August 31, closed at $80.30 a share this past Friday, September 7.

So, does Nike really know what it’s doing with the Kaepernick ad? A recent Washington Post article makes a convincing case that Nike does. Columnist Sally Jenkins maintains that the commercial positions Nike well in national and global contexts that are increasingly multicultural. She also argues that young shoppers, who are especially important to sneaker makers, want to buy products from companies that support social causes.

Public opinion is not so clear. This past Friday morning, September 7, Apex Marketing Group reported that the ad had produced $220 million in publicity for Nike: $69 million positive, $67 million negative, and $83 million neutral. Apex also noted that the percentage of positive publicity had fallen by 9 percentage points from Thursday to Friday.

Some may argue that any publicity is good publicity. That assertion, however, seems to be a myth, especially after considering organizational examples like Volkswagen and individual ones like Harvey Weinstein.

Public favor for the ad also might wane as people take more time to process the financial context surrounding Nike’s and Kaepernick’s participation in the promotion. For a few years, Kaepernick was a very good NFL quarterback, who even played in a Super Bowl. Before he began his anthem protest, he had been demoted to backup status.

Kaepernick made a total of $43 million as an NFL quarterback, of which he has donated over $1 million to a variety of social justice causes. It’s difficult to know how much, if any, money he has made as an activist, but sports agents estimate that his new Nike endorsement could be worth “millions of dollars per year.”

For these reasons, some have taken issue with the ad’s suggestion that Kaepernick ‘sacrificed everything,’ especially when compared to individuals who have given their lives in service to their country.

Kaepernick may not be serving as a Nike spokesman for the money, but it’s hard to imagine that Nike’s choice of Kaepernick was without consideration of its bottom-line, given that it’s a for-profit company that must answer to shareholders in an increasingly competitive marketplace. Not surprising, some have accused the company of “commercializing activism,” i.e., profiting from a social cause.

Another concern for Nike should be its relationship with the NFL. This past March, the NFL announced that Nike would continue to be its official supplier of uniforms and sideline gear through 2028. It’s not known how much these rights cost Nike, but it’s likely the company paid more than the $1.1 billion it reportedly invested for similar exclusivity in 2012.

The anthem protests that Kaepernick initiated continue to be a thorn in the side of the NFL. What’s more, Kaepernick has sued the NFL, claiming that the league has colluded to keep him off the field since he last played. All this to say, there are probably few people the NFL would rather not see exalted in a commercial than Kaepernick. Talk about biting the hand that feeds you.

Nevertheless, the league has tried to put on a good face about the ad. NFL executive vice president of communications and public affairs Jocelyn Moore offered the following:

“The National Football League believes in dialogue, understanding and unity. We embrace the role and responsibility of everyone involved with this game to promote meaningful, positive change in our communities.” “The social justice issues that Colin and other professional athletes have raised deserve our attention and action.”

Despite Moore’s conciliatory tone, one has to imagine that the ad places a significant strain on the relationship between the league and Nike that will only be exacerbated if there are further defections of NFL fans. Although her response makes it seem unlikely that the NFL is considering the commercial to be any kind of contractual breach, the ad will at a minimum cause the league to think more carefully about Nike and future sponsorships.

Like the ethical analysis, assessment of the commercial’s likely effectiveness has also been complicated. In the short-term, people may continue to applaud Nike for its social conscience. The ad and Kaepernick’s lawsuit, however, must be straining its relationship with the NFL.

Moreover, the ad’s theme of “sacrificing everything,” coming from a multimillionaire and a Fortune 100 company, will increasingly ring hollow with people, especially those working two jobs to make ends meet, or mourning loved ones who truly sacrificed everything in service to their country or community.

Credible cases can be made for placing Nike’s Kaepernick commercial in any one of the four Mindful Marketing quadrants, particularly given the ad’s multifaceted social implications. The ad’s effectiveness is also debatable. However, given the strained relationship with the NFL and a likely increase in public disaffect, there’s good reason for calling the commercial “Simple-Minded Marketing.”