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Analyzing the PR Disaster of BP’s Oil Spill: Lessons Learned for Effective Crisis Management

This essay explores the public relations disaster faced by BP during the 2010 oil spill. It will detail the severity of the crisis, including environmental damage and public backlash, and analyze BP’s initial response strategies, highlighting their failures and missteps. By comparing BP’s approach to successful PR principles discussed in class, this analysis will provide insights into how BP could have better managed communication and restoration efforts. Ultimately, the essay aims to underscore the importance of effective PR strategies in mitigating crises and restoring brand reputation.

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Analyzing the PR Disaster of BP’s Oil Spill: Lessons Learned for Effective Crisis Management

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Presentation Transcript

  1. Public Relations • Pick a PR triumph or disaster (not a case from your book--JetBlue): • Toyota (recent) • Coke Europe (1999) • Dominos (recent) • Tylenol (1982) • Carnival (recent) • BP (recent) • Cadbury Europe (2006)

  2. Assignment • Describe the issues and what they did or should have done based on your understanding of the goals of PR in the chapter. • Grade is based on how you apply what you read • Classic 5-paragraph essay—2page • Due by end of class time next Thursday. • Important for Final Exam

  3. Creative Assignment

  4. Advertising Principles and Practices Sales Promotion, Events, and Sponsorships

  5. What is sales promotion? Principle: Sales promotion is primarily designed to motivate people to act by offering incentives.

  6. Changes in the Promotion Industry • Consumer and trade promotions now account for more than ½ of budget. • Online promotions are growing at a rate of about 27% annually.

  7. Reasons for Sales Promotion Growth • Pressure for short-term profits • Rising cost of mass (traditional) media • Need for accountability • Sales promotions are easy to track and evaluate • Escalation of traditional media costs • Promotions cost less and deliver tangible results • Easier and quicker to determine if objectives have been met • Usually, there’s an immediate response Principle: Sales promotion reduces the risk of trying a new product by giving something of added value to motivate action.

  8. Reasons for Promotion GrowthBased on Marketplace Changes • Consumer behavior • Shoppers switch more easily • Pricing • Consumers expect coupons, sales, discounting • Market share • Increased switching leads to increased market share • Parity products • Promotions can distinguish between similar products • Power of the retailer • Wal-Mart, Home Depot, Toys “R” Us and others demand promotional incentives

  9. Categories of Sales Promotion • Consumer • Targeted to consumer: people like you and me • Trade • Targeted to people/companies in the distribution channel such as buyers, distributors, wholesales, dealers, franchisees, retailers, etc. • Sales Force • Directed at the firm’s salespeople to motivate them to increase their sales including training, incentives, performance bonuses, contests

  10. Types of Consumer Promotions • Price Deals—contemporary price reduction or sale • Cents-off deal • Price-pack deals (prize in cereal box) • Bonus packs (25% more) • Banded packs (toothpaste and brush) • Free shipping! • Coupon • Retailer: redeemable only at their outlet • Manufacturer: at any outlet carrying the product

  11. Visit the Site Types of Consumer Promotions • Refunds and Rebates • Offer to return a certain amount of money to the consumer who purchases the product (or coupon to encourage repeat use) • Sampling • Allowing the consumer to try the product or service (in-store, mailed, dentist office, newspaper)

  12. Types of Consumer Promotions • Contests and Sweepstakes • Create excitement by promising “something for nothing” and offering impressive prizes • Contests based on skill/ ability; you compete for prizes • Sweepstakes based on luck; send in your name for a drawing • Premiums • Tangible reward for a particular act • Work by adding value to the product • Self-liquidating • Specialties • Presents the brand’s name on something that is given away as a reminder

  13. Monetary Value • Saved by Zero • Little Caeser’s “Stretch”

  14. Emotional Value • Frontier wanted to encourage customers to book online to save money and build their database. • The results: 4,000 blog entries, a million votes, a 50% increase in Web traffic, and a 400% increase in qualified email addresses. 16-3

  15. In-store Promotion • 1st moment of truth • Hand out

  16. Emerging Field • Shopper Marketing

  17. Sponsorship • Sponsorship or Event Marketing? • http://www.youtube.com/watch?v=1V22PebTiik

  18. Volvo Ocean Race • http://www.youtube.com/watch?v=LGUVWZnzHgI • What does it say about Volvo? • Why do this?

  19. Event Sponsorship as an integrated brand platform

  20. Evaluations

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