Blog Posts

Paying with Your Personal Brand

3/23/2019

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

It was shocking to hear the news: TV’s beloved “Aunt Becky” charged with fraud in “the biggest college admissions scam ever prosecuted in the U.S.” Most people understand that a business model based on bribery is wrong, but there’s another angle to this story that's relevant to each of us, as marketers of ourselves.

To summarize the scandal, Lori Loughlin, who played Rebecca Donaldson-Katsopolis on the classic ABC sitcom Full House and the Netflix sequel Fuller House, and starred in the Hallmark's When the Heart Calls, was one of fifty people implicated in the admissions scandal that also netted actress Felicity Huffman, known for her role in ABC’s Desperate Housewives. The mastermind of the manipulation was Rick Singer, CEO of The Key, which promised to help “the wealthiest families in the US” get their children into some of the country’s most prestigious colleges.

Many tutors, SAT prep courses, and other admissions aids honestly and legally help students improve their chances of acceptance to their preferred colleges. So, how did Singer run afoul of the law? He allegedly helped his clients’ children cheat on ACT and SAT tests, and he bribed college athletic department personnel so they would claim that certain students were recruits for their teams, even when some never played the sport in question.

However, perhaps the most devious thing Singer did was create “The Key Worldwide Foundation,” which was supposedly a charity that funded programs for underprivileged children in the U.S. and abroad. In reality, the Foundation served as a front for money-laundering, or a way for the wealthy to pay Singer who then channeled bribes to accomplices on college campus that included USC, Yale, and New York University, among other prestigious schools.

As someone who works in higher education, has one child who recently graduated from college, and has another who is currently making his college decision, the admissions scandal hit close to home. However, the scandal is even more unsettling to me as a marketer.

No, I’m not just talking about what Singer did. His bad decisions to build a business based on cheating and bribery and to operate a fake foundation were certainly appalling and surprising. What was even more amazing to me was the apparent ease in which he secured willing parties to the schemes, not just from the general population but from those representing high society and higher education—people who stereotypically ‘should know better.’

In addition to accomplished actresses Loughlin and Huffman, alleged scandal participants include an array of elite professionals from business, academia, and other fields. Some of the specific individuals implicated, along with their current or former positions, are:

Rudolph Meredith, head women’s soccer coach at Yale University
John Vandemoer, sailing coach at Stanford University
Igor Dvorskiy, director of West Hollywood College Preparatory School
Gordon Ernst, head tennis coach at Georgetown
Donna Heinel, a senior associate athletic director at USC
Jorge Salcedo, the head coach of UCLA men’s soccer
Gordon Caplan, New York attorney and co-chairman of the law firm Willkie Farr & Gallagher
Gregory Colburn, a radiation oncologist in Palo Alto
Robert Flaxman, chief executive and co-founder of Crown Realty & Development, and a Beverly Hills resident
Homayoun Zadeh, associate professor at USC’s Herman Ostrow School of Dentistry and director of the school’s Advanced Program in Periodontology

Why would so many smart and talented people risk their reputations and/or careers to associate with Singer. The motives were likely mixed. Of course, many of the participants were parents who may have been willing to do anything to see their children succeed. Those who accepted bribes, probably wanted the money. Some may have felt pressure to assist for the good of their institution. Maybe some saw or heard of others doing similar things and rationalized ‘there’s safety in numbers.’

Whatever the motive, I doubt that many of the participants, if any, seriously thought that they would get caught. If they did, they probably wouldn’t have participated. Instead, they operated under the delusion that what could be hidden from public view didn’t matter.

That misconception is one of the biggest fallacies of marketing, in general, and personal branding, specifically. In an article I wrote a couple of years ago, I aimed to debunk that myth by suggesting that a personal brand consists of three elements: character, competencies, and communication. I likened the first two components to the layers of a cake and the last one to its icing.

Some individuals erroneously act as if they can overcome flawed character and inferior skills by spreading on a thick layer of overly flattering or even disingenuous communication. Besides being dishonest, this approach only works for so long. Eventually cracks in ‘the cake’ show through the communication. Unfortunately for them and others impacted by their indiscretions, those involved in the college admissions scandal seemed to subscribe to this hollow approach to personal branding.

As I was writing this blog post, my wife shared with me some very sad news. A good friend of ours from early in our marriage had passed away suddenly at home, at the age of 58. Mark Sneff was someone who built his personal brand the right way. Even as he developed his competencies to rise to the top of the HR profession, his character exuded integrity. Mark also was uniquely gifted at communicating “the truth in love”: He could offer an honest critique that felt like a high compliment.

As the outpouring of fond remembrances on his LinkedIn page suggests, Mark was a widely loved individual who many held in high regard. I’m not sure he thought much about personal branding. I am very confident, though, that he never would have resorted to a ruse to advance the educations or careers of his two children, who he loved greatly. Interestingly, Mark was the first person I ever invited to speak to my college classes.

It’s so nice to know people who ‘market themselves’ the right way. The recent college admissions scandal should be a reminder that it only take a moment to destroy a personal brand that took decades to build. Unfortunately, that fact means that Loughlin and all who participated in Singer’s schemes, not only injured themselves and others, they’re also guilty of “Mindless Marketing.”

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How a Blind Marketing Student Sees a Smart Cane

3/8/2019

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by Jason Polansky, Marketing Major at Messiah College

I enjoy each day without something that many take for granted—eyesight. To safely navigate a sight-friendly word, a blind person develops other aptitudes, like a keener sense of hearing, and learns to use technology, such as a smartphone with GPS. Now one company has developed a hi-tech version of a tool blind folks have used forever—the cane. The thought of a ‘smart cane’ is intriguing, but is it Mindful Marketing?

A few years ago, members of Turkey’s Young Guru Academy (YGA), a nonprofit organization aimed at assisting disadvantaged members of society, began to develop WeWALK, a smart cane that uses ultrasonic sensors, microphones, and speakers to help individuals with visual impairments “see obstacles.” More specifically, a WeWALK hardware unit attaches to the handle of a blind person's cane, allowing him/her to more easily navigate outdoor environments.

Despite its recent start, the company has rapidly gained a social media following on Facebook, Twitter, and YouTube. The firm also has been featured on CNN International, NowThis, Forbes, Dr. Oz, and certain New York City television outlets.

What features and benefits does WeWALK offer that have spurred its rapid rise? The following list summarizes key parts of the new product’s value proposition:

vibration and an ultrasonic sensor to detect overhead and chest-level obstacles, such as hanging tree branches and telephone poles
a compass, accelerometer, and gyroscope for GPS technology and Google Maps integration
Bluetooth connectivity, to be paired with an iOS or Android smartphone and integration with apps such as Google Maps
touch controls that allow users to access their smart phone via the device itself, without having to remove the phone from a pocket, purse, or backpack
a microphone and speaker for voice control and Amazon Alexa integration
support for Turkish and English languages
approximately five hours of battery life
charging via a micro USB port
weight of 430 grams
length of approximately one foot
open platform for app developers to add integrations with the device
purchase price of $349 through Indiegogo

I applaud the idea and the innovation behind WeWALK and appreciate several of its strengths. For instance, overhead obstacle detection is a feature that I would find helpful. Oftentimes when I go hiking, or even when I am just walking down the sidewalk in a residential area, I never know when I am going to encounter an overhead object like a tree branch or some low-hanging sign.

In addition, the ability to connect to a smartphone via Bluetooth could save time and provide convenience by not having to hold a phone in one hand and a cane in the other. Allowing a free hand is a plus.

However, WeWALK also has some significant limitations. First, it does not attach to all types of canes that blind people use. I personally prefer a light-weight, rigid, National Federation of the Blind white cane with a metal tip, but WeWALK does not currently attach to this type of cane. Most of the canes that the device attaches to are much heavier and bulkier in nature. However, AppleVis does say that the firm has a goal of attaching to every popular cane in the world.

Another concern is how well the product can withstand the elements. Due to it being an outdoor product filled with many electronic components, one must be aware of rain during all seasons, as well as winter snow and summer heat. A useful addition to the product would be a protective case of some sort that would not muffle the sound from the speaker.

Speaking of the speaker, I would be interested in knowing how much volume can be produced. Outdoor environments can be quite noisy, due to traffic, construction, and other noises that may prevent the user from being able to hear its audio feedback while holding the cane at arm’s length.

It’s also worth noting that a five-hour battery life may not be enough to get someone through an entire day of traveling, especially while on vacation or otherwise being a tourist. Maybe this deficiency could be remedied by charging through an extra external battery that the user could carry in his or her backpack or purse. However, that power supplement would mean a rather long cord attaching the battery to the device, as well as extra weight.

One also must acknowledge the limitations inherent in any GPS product for the Blind. A GPS won’t tell a pedestrian when it’s safe to cross the street, the path to take through construction, nor will GPS directly lead the user across a large parking lot. Just about any blind person who is an experienced traveler would say that possessing strong mobility skills and knowing how to travel safely is essential before attempting to use any GPS product.

Just as when driving a car, a GPS will tell the driver how to get to the desired destination most of the time, but it does not know the rules of the road. It does not tell the driver to stop at a stop sign or obey the speed limit. Thus, I would not recommend this product to a blind person who does not possess adequate cane travel skills in the first place or who is fearful of traveling in unfamiliar environments.

Beyond the preceding limitations, a big turn-off for me is some of the language used on the firm’s about page. The first line says “WeWALK is the world's most revolutionary smart cane developed for the visually impaired people.” Using the word “the” before “visually impaired people” is a rather patronizing way of describing the target market, just as it is insensitive to use “the” before the name of a racial group. Furthermore, I don’t believe “blind” is a negative word, and I feel it’s fine to use “blind” when describing people who are not completely blind.

A better way to phrase the webpage phrase may be:

“WeWALK is the world's most revolutionary smart cane developed for blind and visually impaired individuals, allowing for greater independence and mobility through innovative technology,” or

“WeWALK is the world's most revolutionary smart cane, strategically built with the blind in mind, combining the white cane that you have known and loved for decades with ground-breaking technological advancements.”

In any case, the company should seriously rethink this use of language as it moves forward.

Overall, WeWALK is a decent and well-intentioned product that shouldn’t cause any serious harm. Still, at a price of $349, there are plenty of ways in which the product must improve before it can truly compete within the marketplace of technology and other tools targeted for blind and visually impaired individuals. Sometime in the future, WeWALK may be Mindful, but at this point I see the smart cane as “Simple-Minded Marketing.”

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Just Blew It

2/23/2019

43 Comments

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

The stage for a college basketball game couldn’t get much bigger: two top-ten teams in a packed arena, one of the best rivalries in all of sports, several projected NBA draft picks in the lineup, two hall of fame coaches on the sidelines, the likely NCAA player of the year on the court, and the 44th president of the United States in the stands. Then a piece of footwear malfunctioned, and the stock price of the world’s most iconic sports brand took a dive.

This past Wednesday, #1 Duke hosted #8 North Carolina for one of the most highly-anticipated men’s college basketball games in recent memory. Tickets were selling at Super Bowl-like prices, not just to see the two storied programs clash, but also to witness what was sure to be a marquee performance by one of the most talented and exciting college athletes ever—Duke’s Zion Williamson.

Just an 18 year old, standing 6’ 7” and weighing 285 lbs., Williamson’s unique combination of extraordinary basketball skill and incredible athleticism had captured the attention of all college basketball fans, international news media, and every NBA team, making him the odds-on favorite to be the first choice in the league’s next draft. Then the unimaginable happened.

Just 33 seconds into the game, Williamson received the ball, took a few dripples, planted his foot near the foul line, and fell awkwardly to the floor, while a look of pain raced across his face. As those watching gasped, the cause of the slip quickly became apparent: Williamson’s foot had burst through his Nike sneaker. Camera footage even caught former President Obama, pointing to the court and saying “His shoe broke.”

The story spread like wildfire over traditional and social media, as sports analysts, basketball fans, and others reacted. Many expressed amazement at the occurrence. Rival sneaker maker Puma tweeted snarkily “wouldn’t have happened in the pumas.”

Nike execs were undoubtedly reeling from what must have felt like their worst nightmare: The best known player in college basketball and a likely NBA superstar had just suffered an injury because of their shoe. Not only did the chances of signing Williamson to a future multi-million-dollar endorsement deal drop precipitously, the endless images of the prodigy wreathing in pain with foot popped through the side of his Nikes, was a picture that athletes and other sneaker buyers would not soon forget.

Nike did wish Williamson well: “We are obviously concerned and want to wish Zion a speedy recovery.” The same company spokesman added, “The quality and performance of our products are of utmost importance. While this is an isolated occurrence, we are working to identify the issue.” Still, the day after the blowout, Nike’s stock fell by 1.05%.

Was Nike simply the sufferer of a very unfortunate accident at one of the worst possible moments? Probably not. It seems that Williamson’s shoe blowout could have been predicted and prevented in light of previous player experiences, as well as others’ product reviews.

In 2016, the foot of Orlando Magic’s Aaron Gordon blew through the side of some Nikes when he landed after a dunk. Two years earlier, in the same NBA season, Golden State’s Andrew Bogut, the Spur’s Manu Ginobili, and the Sixer’s Tony Wroten, all experienced major Nike malfunctions.

Of course, one can argue that Williamson and these professional athletes put more strain on a pair of basketball shoes than the average sneaker wearer does, which is probably true. Many average wearers, however, also have experienced quality issues with their Nikes. Some have been frustrated enough to upload their sneaker stories to YouTube, for instance:

One consumer shows how the soles separated from the rest of his $200 Nikes after limited wear.

Another tells how several different pairs of his Air Jordans have fallen apart after moderate use.

A golfer shows how the soles came off his new-looking Nike golf shoes while playing.

Another user shows how his Nike Shox are falling apart after about six months. He laments, “I spend so much money on a shoe, and this is what it comes down to. I thought better of Nike, but this is what it is, y’all.”

Besides these sad stories, others have posted about similar durability issues with their Nike Air LTD’s, their Nike TN’s, and their Nike SB Diamond Dunks.

Four years ago Nike pulled the Lebron 12 from the market on the day of its scheduled release due to quality concerns. About three years ago KicksOneTwo noted ongoing quality control issues with Nike sneakers.

But, Nike’s annual footwear revenue is over $21 billion, which means it sells hundreds of millions of shoes a year, so aren’t there bound to be some production problems? Yes; however, it’s curious that in so many of the defect videos, the problem is the same even for different kinds of Nikes—the shoes just come apart, similar to the way they did for Williamson and for the NBA players mentioned above.

I’ve also had a similar experience with the brand. It had been several years since I’d gone running, when I decided to put on an old pair of Nike running shoes I owned and take a jog around the neighborhood. It wasn’t long into the run when I started to hear an unusual noise and feel a flapping under my feet. I soon realized the soles were falling off my running shoes. Granted, it was an old pair of sneakers. Still, I’ve owned many different styles and brands of athletic shoes over the years, including ones that I’ve worn much harder, but that’s been the only time anything like that has happened to me.

So, maybe Nike does have quality issues that need to be addressed, but some may be wondering what they have to do with the company’s marketing? Well, effective marketing involves much more than what a company says, or communicates.

Every marketing students learns the four P’s of the traditional marketing mix: product, place, promotion, and price. A primary objective of an entire organization, not just its marketing department, should be to ensure that each “P” meets the target market’s needs, as well as the organization’s goals, ultimately creating a mutually beneficial exchange.

However, if a company’s product is deficient in some way, it may overcompensate with another P, often promotion, which reminds me of a metaphor I've used before—baking a cake. Sometimes a cake comes out of the oven with cracks, which can be hidden with a layer of icing. The deeper the cracks, the thicker the icing needed to cover them.

It seems that Nike shoes on whole have some “cracks,” which the company has adeptly covered over the years through enticing layers of communication, ranging from highly-produced TV commercials, to prominent team sponsorships, to superstar endorsers.

That’s not to say that Nike’s value proposition is just a façade—not by a long shot. The company generally makes good quality products that serve people well, otherwise it wouldn’t be the world’s most valuable sports brand. Still, a significant number of people probably do buy into Nike more because of the icon’s icing than the consistency of its cake.

I still haven’t seen from Nike a true apology to Williamson for the shoe blowout. Saying that it wishes him well and promising to investigate the issue do not constitute a confession. Perhaps for legal reasons, Nike really hasn’t taken ownership of the incident.

No company or product is perfect; accidents happen. However, even for a company as big as Nike, the reoccurrence of such high-profile product malfunctions should give everyone pause, from the guy wanting to jog around his neighborhood to the next NBA superstar looking to ink a multi-million-dollar shoe deal. Nike will recover from the latest incident, but the injury to Williamson and the damage to the company's brand make what led up to the shoe blowout “Mindless Marketing.”

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Whole Grain Isn't the Whole Story

2/8/2019

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

You’re at a restaurant with friends and order a pepperoni pizza. The waiter brings the pie, which has a single piece of pepperoni in the middle. Your whole table expresses surprise, to which the server replies, “The pizza has pepperoni, so it is a ‘pepperoni pizza.’” Most people would not appreciate that response, yet that appears to be the tack some food marketers are taking in promoting their whole grain products.

You’ve probably noticed the phrase “whole grain” appearing more and more on product packages, ranging from breakfast cereals to bread. What’s your interpretation when you see “whole grain” on the front of a box? It’s reasonable to assume that all of the product’s grain content comes from whole grains, or at least that whole grain is the primary/first ingredient. However, when you turn the box around to read the Food and Drug Administration’s (FDA) required nutrition and ingredient labeling, there’s often an unsettling surprise.

Many products that promote themselves as being made from “whole grain” actually contain very little whole grain. Instead, their primary ingredient is refined flour, “a pulverized version of what may, at some point, have been a whole grain.” Whole grain contains every part of a grain kernel, “the bran, the germ and the endosperm (the inner most part of the kernel),” whereas the process of refining flour often involves “stripping off the outer layer, where the [more nutritious] fiber is located.”

How is this potentially misleading labeling allowed? Many blame lax directives by the FDA, which last issued “draft guidance on whole grain labeling in 2006.” The FDA, which regulates food labeling, continues to allow food manufacturers to print “whole grain” on the front of their packages without any absolute or relative reference information, i.e., how many grams of whole grain the product contains or how much whole grain there is relative to refined flour.

But, does printing “whole grain” on the front of a food package really deceive consumers? Several significant stakeholder groups believe it does. The Academy of Nutrition and Dietetics has advised the FDA to “require firms to disclose either the percentage of whole grains and refined grains on pack, or the grams of both refined and whole grains per serving.” Similarly, the Center for Science in the Public Interest (CSPI), a Washington DC-based consumer advocacy group, has “urged the agency to make whole grain labeling clearer to consumers.”

Whole grain labeling becomes even more confusing when it appears on “hearty-looking, and sometimes artificially colored,” food items like multigrain or wheat bread. Such mismatched visuals are especially misleading for the elderly.

But, as consumers, don’t we bear responsibility for what we place into our grocery carts and eventually into our mouths? All we need to do is turn the package around and read the FDA-mandated list of ingredients to see where whole grain ranks into the mix.

Consumers should be expected to act rationally and make logical interpretations about product labeling. However, according to the Federal Trade Commission (FTC), it’s unfair to subject people to deceptive messages that a “reasonable consumer” would find misleading. Courts have applied this reasonable consumer standard in ruling against those employing whole grain deception.

The most notable litigation likely has involved one of the best-known snack crackers, Cheez-It, the product of one of the world’s leading food manufacturers--Kellogg’s. In December of 2018, a second circuit appeals court ruled against the packaged-goods icon in a class action lawsuit that claimed deceptive labeling on “Whole Grain” Cheez-Its, a relatively new extension to the company’s flourishing cracker line.

Printed on the front of the box, in large letters, is the phrase “WHOLE GRAIN.” Above those words, in a much smaller font, are the words “MADE WITH.” Meanwhile, a very big (4.5” x 4.5”) and unusually dark Cheez-It serves as a background image. Despite those distinct package design elements, which are very different than those of Original Cheez-Its, when one turns both boxes to the side, the nutrition facts for each list “enriched flour,” not whole grain, as the first ingredient.

It’s not surprising, therefore, that the second circuit appeals court agreed with the consumer plaintiffs, issuing a unanimous decision that said the whole grain cracker’s nutrition facts “contradict, rather than confirm, [Kellogg’s] ‘whole grain’ representations on the front of the box.”

Kellogg’s effort to include more whole grain in its crackers is good in that “scores of studies link the amount of whole grain [people consume] to better health.” So, the 8 grams of whole grain found in a serving of Cheez-Its can help get people closer to the target daily intake of 48 grams of whole grains for adults.

The problem, however, is that when the front of a package promotes “WHOLE GRAIN” in large letters, against a dark background, it’s reasonable for consumers to conclude that the product’s principal ingredient is whole grain. People might even presume that the crackers are somehow healthy, which is a hard argument to make for any snack cracker, including Cheez-Its, which have the following daily values: total fat–10%, saturated fat–8%, sodium–10%, and total carbohydrates–6%.

Consumers should read the labels and exercise good judgment for the products they use. However, food marketers also should help people make right choices and not mislead them with mixed messages on product packages. Their continued prevalence on supermarket shelves suggests that Kellogg’s Whole Grain Cheez-Its are a success, but the cracker's first ingredient really is “Single-Minded Marketing.”

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The Best an Ad Can Get?

1/26/2019

31 Comments

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

When I was growing up, our family had a small, easily-provoked dog. He was responsible for holes in many pairs of my socks from times I tried to slip past him while he was in an especially protective mood. The person he guarded was my mother because she made sure he had food. Our dog knew better than to ‘bite the hand that fed him.’ I wonder, was our pet smarter than one of the world’s leading consumer products companies?

If you haven’t seen it, Gillette, the global purveyor of men’s personal care products, recently released a video ad titled “We Believe: The Best a Man Can Be.” The 1:49 minute commercial doesn’t push razors, rather it’s an image-building ad that renounces two contemptable behaviors that some men commit: sexual harassment and bullying.

The ad showcases an array of mainly scripted clips in which males, some old, some young, enact a variety of despicable acts like groping women and punching their peers. Meanwhile, a chorus of other men chants a unison refrain of rationalization, “Boys will be boys.”

The ad’s narration and text overlays provide corrective commentary:
“We believe in the best in men.”
“It’s only by challenging ourselves to do more that we can get closer to our best.”
“We are taking action at thebestmencanbe.org”

In many ways, Gillette’s messaging makes sense. The company has taken a stand against two terribly wrong and destructive behaviors and called out the men who commit them. Using a powerful quote from actor-turned-sexual-harassment-activist Terry Crews, the ad also encourages every man not to stand idly by when they see such reprehensible actions but to intervene: “Men need to hold other men accountable.”

Despite all the apparent good, the commercial has quickly become a lightning rod for controversy. Dozens of media, from Advertising Age, to Glamour, to USA Today, have run articles about the ad. As one might imagine, some commentary from the authors as well as from the general public has been positive, while other responses have been quite negative.

For instance, @pstdavid_ tweeted, “Finally got a chance to see this #GilletteAd. Quite honestly, I don’t get what all the fuss is about. In my opinion, they’re not “taking a stand on toxic masculinity” or ‘stealing your manhood.’ All they’re suggesting is that you be a decent human being. It’s not that difficult.”

Another Gillette consumer, however, tweeted a picture of his hand poised above a trash can, about to discard the Gillette razor he received on his 18th birthday and used for the past 15 years, including through basic training and four deployments. (1) The soon-to-be-former customer lamented, “since @Gillette thinks I’m a bad person, I’m throwing it away.”

Another user, @davidliedtka, took an even more extreme approach, placing his Gillette shaving creme and razor in an oven and setting the temperature to 505 degrees.

Wow. Those are strong reactions. Does Gillette or any organization that’s trying to right serious social wrongs deserve such reprisals?

The first time I saw the commercial, my reaction was generally positive: A strong brand that has built a solid reputation among millions of men was using that influence to ask them to be better. Such a plea from a huge corporate player might stand a chance of making a difference in our world. Still, there were things about the spot that didn’t seem right.

A second time through the ad, I noticed more of the agency’s specific creative decisions. For instance, while the spot’s small amount of real video footage worked, the many acted segments looked overly artificial and contrived, even though they depicted terrible events that unfortunately occur. The use of both real and scripted video seemed like a mismatch.

I hadn’t thought much more about the ad, until one of my marketing students emailed me a link to another company’s commercial that was purportedly a response to Gillette’s ad. The next day he asked if I had watched the ad. I had been very busy, so I replied I hadn’t but I was looking forward to seeing it soon.

That night I opened his email and clicked the YouTube link, which took me to an ad posted by Egard Watch Company. Viewing the 1:57 minute commercial just once, changed my perspective of Gillette’s ad.

Egard’s commercial opens with several male firefighters battling an inferno, then quickly cuts to one of them carrying a young girl safely away from the flames. Meanwhile, a narrator asks, “What is a man?” The ad continues with a wide variety of real video clips, many showing men doing very difficult or even dangerous physical labor, while the narrator poses additional questions like “Is a man brave?”, “Is a man a protector?”, and “Is a man disposable?”

The spot also shares some very sobering statistics, such as:

Men account for 93% of workplace fatalities.
Men comprise over 97% of war fatalities.
79% of all homicide victims are male.
Men account for 80% of all suicide victims.

The commercial concludes on a positive note, asking “Is a man trying?” and offering the company’s view of masculinity: “We see the good in men.”

As marketer, I realize that the right music with moving images can tug at one’s emotions; however, Egard’s ad resonated with me, and perhaps the 324,000 people who have liked, it for another reason. Egard reminded us of the many men in our lives that we have known and loved.

The ad caused me to remember my grandfathers: one a coalminer, the other a farmer. To support their families, both did very hard, physical work that must have greatly tested both their bodies and their minds. Having experienced the ravages of WW II, my father-in-law, emigrated from Ukraine, to Brazil, to the United States, where he worked for over 30 years in a bearing factory as a tool and die maker—labor that likely explains his great loss of hearing today. My own father was not able to finish high school, yet he started his own business at age 25 and worked tirelessly with my mother to earn enough to put four children through college.

None of these men were/is perfect. Neither is their grandson/son—I’ve made plenty of mistakes; although, I don’t think I’ve done anything that someone could call bullying or sexual harassment. Most men probably can say the same. Most of the mistakes we make are not because we’re men; they’re because we’re human.

The problem with Gillette’s ad is that it stereotypes men. Not all males act like Harvey Weinstein or ‘Scott Farkus,’ the bully from A Christmas Story. In fact, the vast majority do not. Of course, Gillette’s ad doesn’t directly say that all men are sexual predators or bullies, but it does put all men in the same stereotypical boxes through some subtle visual and verbal suggestions.

One such insinuation in Gillette’s spot is the seemingly infinite lineup of men, all standing behind their BBQ grills with arms folded, chanting in unison, “Boys will be boys.” The ad’s narration also makes a stereotypical suggestion by tagging onto Crew’s “Men need to hold other men accountable” quote, adding: “ . . . accountable to act the right way; some already are, in ways big and small. But some is not enough.” I’d like to reiterate the belief that it’s most men who are acting the right way, not some.

Another Twitter user, Melissa Chen (@MsMelChen), who self-identifies as Asian, supports the suggestion that Gillette’s ad stereotypes men. She says:
“I can get behind the message that we all can be better. But the #GilletteAd ended up painting an entire demographic with a negative stereotype perpetuated by a few. Imagine the uproar if it was an ad about a racial group with higher crime rates saying, “‘you can be better.’”

Of course, on top of all this analysis is the fact that men are Gillette’s main target market.* Its iconic tagline is “The Best a Man Can Get.” Given that our family’s dog knew better than to bite the hand that fed him, it’s hard to imagine why one of the world’s biggest brands would want to risk ‘cutting the faces it shaves,’ especially when already on the ropes in a fight against Harry’s and Dollar Shave Club.

One instance of bullying or one case of sexual harassment is one too many. As such, Gillette can be commended for taking a stand against those injustices and for suggesting that others do the same. However, the company should have known much better than to unfairly throw its entire target market under the bus with broadly generalized talk of “toxic masculinity.” It’s wrong to degrade others in any way, including by negatively stereotyping, which makes Gillette guilty of “Mindless Marketing.”

*An earlier version of this article incorrectly stated that Gillette does not make products for women.

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

1/12/2019

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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.”