PR CW3 by Erica Wenham

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset Module Code: MG507

Student ID: 21017802

Word Count (excluding figures, tables & references): 2761

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset Contents: Executive Summary – Page 2 Introduction – Page 3 Situation Analysis – Page 4 & 5 Goals and Objectives – Page 5 & 6

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset | Student ID: 21017802

Key Target Audience(s) – Page 6 & 7

The UK Media: Media Landscape Introduction & Overview – Page 7 & 8 Four Key Media Briefings (“Opinion Leaders”) – Page 8, 9 & 10 Overall Approach and Required Content: UK PR Timeline for Principal Campaign Activities for Lenovo – Page 11 The Recovery Plan – Page 12 & 13 Budget Analysis and Breakdown – Page 14 & 15 Conclusions and Recommendations (Client Handling) – Page 16 References – Page 17 & 18

Executive Summary: Crisis management requires more than an apologetic press release or a CEO’s disingenuous appearance on the BBC. News flash goes viral in a matter of seconds. Lenovo must be ready to respond to their issues swiftly and decisively, using all media platforms to communicate effectively with the UK public. According to Business Insider (2011), “most importantly, companies that make mistakes must sincerely accept responsibility for their actions – not distance themselves from them.” Although Lenovo have quickly addressed their initial two issues of inadequate supplies of the K800 smartphone post-launch as well as poor quality accessories, this has resulted in a great deal of negative coverage. As a result, the brand has attracted considerable criticism in the media as well as a negative public image. While the brand has also cancelled all supply contracts where child labour employment and manufacturing methods have been utilised, Chinese managers originally refused to converse with the UK

This report will identify key areas in which Bucks First PR recommend Lenovo to take account of in order to try and fix the problem. News is travelling faster than ever and crisis management is essential for Lenovo; their most important asset is at stake, their UK reputation. When crisis strikes, it is common natural instinct to stonewall the situation, toughing it out or pretending the crisis will pass and ignore the issue(s) at hand. If poorly managed, regular business operations can ruin hard-work, decline revenue figures and even in some cases, destroy companies. As a result, Bucks First PR has created this report for extensive recommendations for;

1) An in-depth UK media “landscape” situation analysis as well as four individual media briefing documents for key correspondents and journalists available to report on Lenovo’s issues; 2) An outline PR plan and timeline for the Lenovo K800 family for the next 12 months; and; 3) An internal note reflecting key client recommendations for the next 12 months. Figure 1: The key tasks for Lenovo’s Crisis Management/Recovery Campaign Activity as recommended by Bucks First PR.

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset | Student ID: 21017802

media, thus upholding the organisation’s negative narrative.

Introduction: Lenovo have an “increasing responsibility to their customers, the media, and shareholders to demonstrate their corporate values and success through their ability to assure business operational integrity regardless of the external pressures being applied” (IntraPoint, 2010). Crisis management is one of the most critical aspects of modern communications in Public Relations. If conducted effectively, it can essentially protect Lenovo, their reputation and even salvage their very existence in the UK (Tench & Yeomans, 2009, p.386). However, it how Lenovo communicates about their negative issues in the public eye that makes a real difference. According to Tench & Yeomans (2009, p.388), there has been evidence that good communication with the media can support or increase a company’s reputation. The potential financial consequences can often be high but at the same time, it can communicate across to all stakeholders – shareholders, employees, regulators, press and consumers; exactly what the business is doing, what went CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset | Student ID: 21017802

wrong and why, how the business is dealing with the crises at the moment and how they plan to prevent it

from happening again in the future. (A financial outline based upon a budget of £100k total for Lenovo’s crisis management is looked at further on pages 15 and 15). The way in which Lenovo communicates to the UK media is crucial (please see pages 7 and 8 for more details). Journalists, reporters and other influential media correspondents are in essence able to conduct a news story in any way shape or form they wish to. As a result, it is fundamental for both the agency and the client to conduct effective management of what content is released to the media. Tench & Yeomans (2009, p.396) clarifies that this can be based upon “The 5C C’s Effective Communications Model” as outlined below. Concern The first stage of The 5 C’s Model is not to be confused with legal liability as concern is regarded as a simple emotion. When the head of division for Lenovo communicates with the media, he needs to show true concern about the problem(s) at hand, concern about what has happened and concern for the people affected now and in the future – including potential customers. Clarity The second stage of the concept lies with how organisations need to talk with clarity. Starting from the early hours of the crisis (e.g. when the issue was first arisen), they need to have very clear messages. Again, whatever the head of division says at the outset, will be repeated throughout the duration of the crises. Control Next, when communicating with the UK media at events or on a one-to-one, spokespeople (or in this case, Lenovo’s division manager) must take control of the messages, the situation, the environment and the venue. Confidence The fourth stage of the 5 C’s relates closely to ‘Clarity’ and ‘Control’. The spokesperson for the Lenovo brand must get the key messages across with confidence, but without appearing complacent or arrogant. Competence Finally, the fifth and final stage of the model is ‘Competence’. The spokesperson must also demonstrate the ability and reflect how, as the representative of Lenovo will effectively handle the crisis. Table 1: The 5 C’s Effective Communications Model. Source – Tench & Yeomans (2009, p.396/7)

Situation Analysis: The character of ‘Don Draper’ from the popular advertising sitcom ‘Mad Men’ once said “If you don’t like what’s being said, change the conversation” and this quote could not be more true in the case of Lenovo’s crisis management issues. By publicly changing your conduct, you can project a strong brand image of a more advanced organisation that before the negative narrative occurred. An effective campaign designed to a high standard and corporate social responsibility will demonstrate strategic growth of the business and help to restore public and media trust. Corporate Social Responsibility (CSR) is a conventional concept in the PR industry and is very popular amongst marketing and advertising communications agencies. “While thinking strategically, you want to ensure your efforts are still regarded as authentic and sincere without appearing forged – leading to further damage of the brand reputation and

Bucks First PR plan to outline a recommended detailed plan for a 12-month campaign summary for Lenovo’s crisis management. One of the main issues the brand has faced is the concerns circulating social media. Although the organisation has cancelled all child labour methods and dealt with any initial inadequate supplies and poor quality of product, Lenovo has proved unpopular with many online users and the media. After the recent launch event and presentation of the K800 smartphone, the general public started blasting the product as “K-Slave” or “Dumb Phone” due to the company’s poor management of the brand’s introduction into the UK. “The once limited media market has become global and highly sophisticated. The impact the Internet has on crisis management today is enormous. The speed with which communications can be delivered is phenomenal and available to nearly 90% of the UK population alone” (Tench & Yeomans, 2009, p.398). Although it is essential for Lenovo to target key media “opinion-leaders” for wider coverage and UK mobile-technology retailers (B2B), the brand also need to ensure their key messages are received well by other stakeholders such as previous and potential consumers, shareholders, community groups etc (B2C). By opening up various communication channels with these groups, long-term success can be accomplished and crises can be reduced. Managing the right platforms to target the right type of people can help drive traffic, awareness and sales for Lenovo and its product(s). For example, B2B markets such as Curry’s, The Daily Mail newspaper etc. are interested in different aspects of Lenovo’s crises in comparison to B2C (consumers).

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset | Student ID: 21017802

insulting your publics and other stakeholders”.

This is analysed further in “Key Target Audiences” on page 6/7. Employing new content for different media channels is essential for Lenovo if they wish to generate as much news coverage as possible. Due to the current negative narrative and public image of the brand in the UK at the moment, Bucks First PR recommends incorporating both traditional print media channels (e.g. newspapers, magazines) and the Internet. Both local and national print publications have high readership value whereas the Internet is available to almost everyone and strategic messages are likely to be perceived in a positive manner by audiences if managed efficiently. Effective media content can then help Lenovo and Bucks First PR to achieve set goals and objectives in relation to recent crises (these are explained next, on the following page). Although there a few disadvantages of using the internet and social media as part of Lenovo’s campaign activity; it can sometimes be difficult to track the strategy’s success and censor audience figures. However, it is argued that internet is the most valuable approach to employ as it is a very effective vehicle at getting a

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset | Student ID: 21017802

message out in a fast manner to millions of people and for the “dissemination of information and opinion

that may masquerade information” (Tench & Yeomans, 2009, p.398). Overall, Tucker and Broom (1993) explain that “issues management is the crises process whose goal is to help preserve markets, reduce risk, create opportunities and manage image (corporate reputation) as an organisational asset for the benefit of both and organisation and its primary stakeholders. (Regester & Larkin, 2008 p.44)

Goals and Objectives: Alter the public’s negative perception of the Lenovo brand and its activities (including the three crises the organisation has had to face of child labour employment and manufacturing methods, inadequate product supplies and poor accessories quality). Manage the flow of information and communications between the business and key media correspondents or “opinion leaders” from strategic UK publications (national newspapers, trade magazines, industry magazines, consumer reads etc.) Bucks First PR hope this will generate high coverage for the Lenovo brand; thus taking away some of the negative narrative of the recent crises and employing a positive public image amongst all audiences. Keep all stakeholders (including employees and suppliers/UK retailers) of 1) what happened (what was the crisis?), 2) what Lenovo are doing to help minimise/cut the crisis, 3) what the brand hopes to achieve to improve and 4) what Lenovo plan to do in the future to minimise further risks.

Minimise the risk of any financial loss for the organisation (e.g. ensure an effective budget and breakdown is put into place – this is reflected on page 14/15). Protect Lenovo’s reputation in the UK market by handling any potential or actual negative publicity and conduct efficient internal and external communications as part of crisis management.

Key Target Audience(s): According to Sproule (1988), modern communication in the case of Lenovo’s crisis management is an “ideological form, one that supplies prepackaged conclusions and emphasizes identification and likeability rather than ethos. Rather than appealing to a generalized audience, it instead seeks to narrowly segment audiences in order to pull the levers of persuasion. As a result, this managerial style of persuasion has affected individual, corporate, as well as institutional discourse.” (Hearit, 2006, p.122).

stakeholders are when identifying the target audience of a crisis management concept. “It’s called demographics. It’s part of the research you need to do before going into a new business plan. It may not go well if you have no idea who you are going to be talking to about your service or product” (entrepreneur.com, 2009). As a result, Lenovo will then be able to identify who it is to target and with what message. The organisation should then begin to design a plan around how to market them so they can be aware of Lenovo, generate a positive opinion of them and ultimately buy the brand’s products. Lenovo’s target audience is made up of a variety of stakeholders; Working Adults (e.g. Professional Teenage/Young-Adult Consumers

consumers need effective multi-

(e.g. Tech-Savvy 18-24 year olds

use smartphones for ‘on-the-go’)

interested in smartphones, new technology, social media etc. Lenovo Retailers (e.g. PC World, Curry’s, Independent Online National (e.g. The Guardian, The Financial

Websites, Amazon etc.)

Times, Daily Mail etc.) Journalists and Reporters in the UK Media Community Groups, Government and Regulatory Bodies etc. Investors, Shareholders, Partners etc. (Figure 2: Lenovo’s Key Target Audiences)

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset | Student ID: 21017802

It is essential for Lenovo to know exactly (or as exact as they can possibly make it) who their key

If Lenovo try to blanket everyone with the same one marketing message, over half of the overall audience will be lost because some specific issues simply don’t apply to them. For example, retailers care about the selling and cost price whereas consumers want to know the benefits the Lenovo K800 smartphone offers and media correspondents are interested in an effective news story that will generate readers/viewers. “Target who you are after and you will know how to reach them easier and find that you won't have to invest so much into your marketing to get the results you want. You'll be more focused, more effective in your marketing strategies and be able to get a greater return on your marketing investment” (entrepreneur.com, 2009). As a result of this, Bucks First PR have outlines four key media briefings (shown on pages 9 and 10) of what messages need to be employed in which media channels, what the messages need to include and to which stakeholders.

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset | Student ID: 21017802

The UK Media:

Media Landscape and Overview: According to Media UK (January 2010), the media industry in the United Kingdom alone consists of 837 radio stations, 528 television channels, 1601 newspapers, 1957 magazines and 267 independent media owners. As a result, this can be an advantage for Lenovo and Bucks First PR as there not just more or different opportunities available but far more active coverage can be acquired. The media are essentially free and able to report on any aspects in any industry at any time. The variety of UK publications reflects the full spectrum of the media sector. However, in recent years, printed newspaper circulations have been sliding while online readership has surged. Matthew Freud (Chairman, Freud Communications) commented “the PR industry is growing whilst those around it are largely in decline. The basic economic model for media and marketing is broken. The consumer or client is no longer willing to consistently pay for content and media owners are no longer able to guarantee the attention of their audience to advertisers”. Take “The Daily Mail” for example, two million copies are sold every day at the price of 50p but 100 million visitors use The Daily Mail online website. These 100 million do not pay directly for the product and “the advertising yield for audience is 50 times greater than the print equivalent. That’s why PR is so important” (prweek.com, 2012).

According to Corporate Watch (2003), the relationship between the UK news media and the PR industry is a “complex and increasingly symbiotic one”. “The media is the central vehicle for much of the PR industry's messages. PR practitioners want to place their stories in the news or other publications and programmes. Without being able to do this, PR would lose one of its main avenues for communication with the public. The media in turn has become more dependent on PR to supply content to fill air time or column inches. Whilst newspapers have been in a gradual decline over recent years (e.g. shedding journalism staff over the last couple of decades), they have simultaneously managed to produce numerous publications brimming with news stories. As a result, “the ever growing ranks of PR are more than happy to fill the pages.” The power of big agencies and spin doctors goes beyond this however, particularly in the case of Lenovo’s crisis management situation. “As the primary point of contact between businesses and the media, PR practitioners can control access to information which journalists want. This gives them tremendous leverage

According to Ogilvy PR, “gone are the days when brands needed to purchase advertising or secure media placements alone. At a time when it is becoming increasing difficult to differentiate between the role of marketer and publisher, a new world order for brands today has been established. What this presents is an opportunity for corporations to become the content curators - creating their own material on their own websites for their own brands and thereby their own companies.”

Four Key Media Briefings: The UK media industry in relation to PR has greatly changed in comparison to what it was like decades ago. The need for digital, interactive and even mobile content in this “always on” media age is crucial for Lenovo to take into consideration. In the ever-changing environment of the UK media, the rapport between agency/client professionals and media correspondents is a great opportunity for Lenovo and Bucks First PR to influence, shape and drive the content of the brand and its recent issues with crisis management. As a result, four key media briefing documents for the head of division have been presented below to help prepare for the individual 1-2-1 journalist briefings on Monday 20 May. Bucks First PR hope that liaising with these influential journalists will help to fix Lenovo’s negative narrative.

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset | Student ID: 21017802

in negotiating with journalists, as they are in a position to refuse information” (Corporate Watch, 2003).

1. Stuff Magazine “Stuff is the world’s biggest-selling gadget magazine, with Stuff.tv as the online version. It’s where you can find tech news that’s wry but not dry, the world’s most trusted gadget tests and exclusive previews of the latest phones, computers, tablets, games, apps, TVs, hi-fi, headphones, cameras, consoles, and media players.” Opinion Leader/Contact Name: Chris Lowe Job Title: Publishing & Product Manager (including Marketing) Email: chris.lowe@haymarket.com Tel. +44 (0)20 8267 4347 Twitter: @tweetlowey LinkedIn: http://uk.linkedin.com/pub/chris-lowe/16/471/109

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset | Student ID: 21017802

Stuff Magazine is great media portal for Lenovo as they are the most popular technological magazine in the UK media. The publication has also reviewed various Lenovo products in the past in a mostly positive manner; advantageous for the brand. Bucks First PR recommends contacting Chris Lowe for coverage in the media regarding the organisation’s recent crisis issues and how Lenovo hope to deal with these and improve their public image amongst target audiences, current and potential consumers and other stakeholders. When preparing content for Stuff Magazine, key personnel in both the agency and client (Lenovo) should ensure business messages are easily relatable to both consumers and trade press. Any news releases or articles should also mainly focus on appropriate apologies for the public issues and how Lenovo aim to improve their business ethos and prevent any further problems occurring in the future.

2. Wired Magazine “WIRED” is the first word on how ideas and innovation are changing the world in the technology sector. Each month in the magazine and every day online, the publication’s editors deliver a glimpse into the future of business, culture, innovation, and science. As Wired is an effective gateway for organisation’s to receive extensive coverage, it has won various prestigious awards from AdWeek over recent years including “Magazine of the Decade”, “General Excellence” and more. The Wired magazine and online website reach more than 14 million readers each month. Opinion Leader/Contact Name: Jeremy White Job Title: Product Editor Email: wiredonlineuk@condenast.co.uk or pr@wired.co.uk Tel. N/A Twitter: @tweetlowey LinkedIn: http://uk.linkedin.com/pub/jeremy-white/27/b68/5 Similarly to Stuff Magazine, Wired magazine is one of the most popular technology/business-based magazines in the UK. The website is particularly useful to Lenovo as more than 14 million users visit the publication’s online version each month. Although Stuff and Wired are essentially direct competitors in the market, both can be extremely useful for Lenovo. Both publications are read by trade and consumer and more importantly, Lenovo’s key target audiences and stakeholders. Stuff is also more popular amongst readers in the physical print format whereas Wired is more admired via online use. As a result, this allows the Lenovo brand to target different aspects of the media almost simultaneously.

3. PR Week Magazine/Online The world's leading weekly PR publication - and provider of multi-media content to professional communicators and reputation managers. PRWeek is the voice of the UK PR industry and the leading source of news, analysis and opinion. PRWeek UK is the leading weekly magazine for public relations professionals working in all areas of public life, including Healthcare, Public Affairs, City and Corporate, Voluntary, Technology, Public Sector and Consumer. Contact Name: Lynsey Barber Job Title: Reporter, Technology Tel. +44 (0)20 8267 4347 Twitter: @lynseybarber

The Daily Mail is the UK’s biggest selling daily newspaper ever (behind “The Sun”). It sells over 2 million copies every day and over 100 million users visit the website monthly. It had an average daily circulation of 1,991,275 copies in April 2012. Between June and December 2011 it had an average daily readership of approximately 4.371 million, of whom approximately 2.803 million were in the ABC1 demographic and 1.596 million in the C2DEdemographic. Contact Name: Paul Dacre Job Title: Editor

* - Figure: Media Briefings As explained previously, over 100 million users visit The Mail Online website every day in comparison to the only 2 million which purchase a physical copy and according to the BBC, there were approximately 52.7 million internet users in the UK in December 2011 – nearly 85% of the UK population (internetworldstats). Research by Google the previous year also found that the internet alone accounts for 7.2% of the UK’s overall gross domestic product (GDP). * - Each media briefing figures are “opinion leaders” in their relevant segments (e.g. consumer electronics and technology trade – ‘Wired’ and ‘Stuff’, national and online – ‘The Daily Mail’/‘The Guardian’ and finally, the overall industry sector – ‘PR Week’).

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset | Student ID: 21017802

4. The Daily Mail Newspaper/Online

Overall Approach and Required Content:

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset | Student ID: 21017802

UK PR Timeline for Principal Campaign Activities for Lenovo

The Recovery Plan The Recovery Plan & Crisis Management Principles for Lenovo (as recommended by Bucks First PR)

Information Flow Control

Worst-Case Planning Position

Team Effort

Combative Instinct

This applies to items of information both coming in and going out of the organisation. For example, on one hand; press release content being released to key media opinion leaders and publications and on the other hand; the social media backlash of the “K-Slave” and “Dumb Phone” criticism the brand is receiving online. It essential for Lenovo to take both of these issues into account as, in very practical terms, will make communication within the organisation much easier, quicker and ultimately, more effective. The appointed Lenovo and Bucks First PR crisis team must be able to think about the worst-case scenario in terms of what could potentially happen to the brand and the organisation as a whole. “More often than not, people estimate the worst from their own perspective, or what they are able to handle, rather than a true worst case. It is, therefore, important to brainstorm and get as much input from all practitioners as possible.” In the case of Lenovo’s crisis management, this is exceptionally important due to the extremity of its current issues in the market. For example, employing child labour methods is seen as politically and ethically incorrect and has given the brand a negative public image amongst the UK audiences. As a result, it is fundamental for the business and the agency to ensure no further negative issues arise as this can essentially make matters even worse for the business which may be unsolvable. Ensuring preparation for a worst-case scenario can be conducted via Contingency Planning or Risk Assessment. Press releases or news articles can also be created in advance for emergency and prompt release to the media if any problems are to arise. As explained above, the Lenovo and Bucks First crisis team must work effectively together in order for successful campaign and strategy management. It is essential that the messages put out to the media to help achieve initially set goals and objectives (on pages 6/7) are not subverted by the influence of one department or professional over another. Tench & Yeomans (2009, p.402), reinforce “do not go into battle with the media, NGOs, competitors or suppliers. An organisation must demonstrate it is in control during the crisis”. Again, this is another principle in which Lenovo must take great care in. The outcome of being combative could well destroy the brand or reputation all together. Losing control of the tasks at hand can also portray the organisation as very unprofessional; thus adding to the negative narrative.

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset | Student ID: 21017802

Problem Definition

The first stage of the recovery plan (“problem definition”) is the most critical aspect of effective PR crisis management for Lenovo. It is essential to define both the short-term problem (initial supplies were inadequate to meet demand poor quality accessories) and the long-term problem (extra funding will be needed to improve product quality and allow retailers/suppliers to have more supplies of the newly-launched K800 smartphone to avoid further disappointment) to ensure the brand recovers in terms of both market share/revenue and reputation/public image.

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset | Student ID: 21017802

In order to ensure effective control is being managed at all times during the crisis management plan, Lenovo and Bucks First PR must guarantee all media content is effectively written (e.g. press releases must be written in professional format whilst still putting a “spin” on the story to ensure the document is published and is received well by audiences) and the correct key messages are sent to the appropriate target markets.

The Media

The media are constantly searching for good stories to include in their channels of communication. “They need focus, a ‘cause and effect’ – something their audience will relate to. A firm can assert the facts as it sees them and thus defuse an ‘on-the-face-of-it’ story.” When Lenovo communicate with the four key media opinion leaders, “Spin” or “Corporate Communication” helps to communicate this message in a clear and direct way while instantaneously putting a positive slant on the story. Grunig et al. (2002) sees spin as “a mechanism for negotiating” with customers to attain a situation which benefits both parties, consequently creating a “win-win zone”. It can also be used to support a company’s “position and increasing its influence/power/profitability” (Tench and Yeomans, 2009, p.544).

StakeHolders

On continuation from the point above, it is not just the media that need fast and relevant responses during a crisis. Crisis management must also take all stakeholders/constituents into great consideration and Lenovo’s main target audience/past and potential consumers particularly as they are essentially the individuals that purchase from the brand. For example, a successful press release or news article aiming to generate coverage for the brand and alter audience’s opinion of Lenovo to a positive one should “get the news angle, to the point of the story, in the first couple of paragraphs” (Foster, 2012, p.113). It is essential that the initial two paragraphs of the release clearly outline what message the company is trying to put across; if it is not striking enough, the audience will not read on. In addition to this, according to Bivins (2005), if a carefully-crafted news release follows this concept, it can “maximise exposure for the company, grab attention of potential consumers, shape perception and achieve retention”. This tactic is particularly useful “to gain as much publicity as possible in order to put the product at the front of the consumer’s mind and differentiate from its competitors” (Franklin et. al, 2009, p.54).

Problem Evaluation

And finally, the overall recovery plan for Lenovo’s crisis management and campaign activity should effectively reduce the initial problems (of child labour, poor quality and inadequate supply of products). Tench & Yeomans (2009, p.403) explain this as “reduce the problem to as small a geographical area as possible to prevent it becoming an even bigger problem – from local to national or national to international. In these days of international media and the Internet, localising an issue is a major challenge. However, it should be SMART objectified (specific, measurable, achievable, realistic and timed).

Budget Analysis and Breakdown: The table below outlines Bucks First PR’s recommended budget analysis and breakdown (assuming £100k total) for Lenovo’s recent crisis management issues. Resolving a crisis situation in business can be a very costly matter and if managed poorly, finance can result in the organisation’s suffering risk of extinction. While it is difficult to project the total final cost of campaign activities for the brand, it is essential to always keep track of expenditures to avoid insufficient funds or bankruptcy in the long-run. Spending will be an ongoing concern for Lenovo and Bucks First PR and therefore, all financial figures are estimates and may need to be consulted further for overall approval.

Budget Sheet Bucks First PR Contact: Client: Project Title: Project Budget:

Erica Wenham Lenovo Crisis Management Plan £100,000

Please note: All financial costs are ESTIMATES. These are subject to change after approval from all Bucks First PR and Lenovo team members. Quarter (1) Campaign Activity – Key Media Briefings & Press Conference Four Individual Media Briefing Documents (including costs of travel to the venue to meet with the opinion leaders of Bucks First PR’s recommended media publications – for both parties and the overall cost to create potential materials for the task) Press Conference Invitations & Marketing Material (including printing costs, admin etc.) Conducting The Press Conference (to address the crises, what Lenovo are currently doing to diminish the problems and what they plan to do in the future to improve and prevent any further problems occurring) Price includes chosen venue, VNR Material from Recording of Press Release (footage can later be published onto the company’s official blog to target any individuals who were unable to attend the event – this then allows Lenovo to still apologise to these audiences for the crises and get their key messages across whilst still increasing brand coverage in the media and Internet)

£750

£500 £5,000

£1,800

Quarter (2) Campaign Activity – Press Releases

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset | Student ID: 21017802

Currency: GBP£ Job Code: BFP507

Admin & Printing Costs Copyrighting & Mailing Costs Press Drops (including travel, materials etc.)

£250 £2,000 £800

Quarter (3) Campaign Activity – Social Media Campaign The Campaign (conducting the activity itself as well as marketing, premium account usage of different platforms etc.) Annual Ongoing Use of Social Media (e.g. blogs, Twitter and Facebook updates etc. – “Social Media Manager” Job Role/Wages) Potential Competition via Social Media (TBC) (e.g. gift vouchers, free popular Lenovo product etc.)

£500 TBC TBC

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset | Student ID: 21017802

Quarter (3) Campaign Activity – Charity Event

Event Venue & Hire (cost also includes potential decorations, food and drink for guests, travel costs for any distinguished attendees, additional facilities etc.) Photographer and Video News Crew (VNRs can be released to the media to show Lenovo has donated to antichild labour charities after their public apologies and cancellation of this method at the beginning of the campaign. Footage can later be published onto the company’s official blog to target any individuals who were unable to attend the event – this then allows Lenovo to still apologise to these audiences for the crises and get their key messages across whilst still increasing brand coverage in the media and Internet) Entertainment (TBC) Charity Donation

£50,000 £2,500

£1,000 £5,000

Other (please note these costs are based upon the annual campaign activity, for example general expenses will approx. cost £1,000 every 3 months/quarter = 4,000 for the year) General Expenses (telephone, internet access, fax, copying, stationary, general mail etc.) Bucks First PR and Lenovo Wages

£4,000

SUB TOTAL

£74,100

CONTINGENCY @ 10%

£7,410

FINAL (ESTIMATED TOTAL)

£81,510

TBC

Conclusions and Client Handling Recommendations: Agencies are employed by business clients for a reason. Organisations want new, innovative ideas for campaigns, they want to increase their audience and customer base and they want to make profit. They hire Marketing, Advertising and PR agencies to help achieve these goals. However, it is essentially useless if the relationship between the agency and their client is not successful. In relation to the crisis management situation at hand, Bucks First PR advise Lenovo to anticipate and assess threats and opportunities (SWOT) from emerging issues and to develop response strategies designed to align operational and reputational objectives with stakeholder expectations. Additionally, although all crises in Lenovo’s situations apply to different aspects of business (inadequate supplies, poor quality and ethical child labour issues), there are general principles which apply to most of

“Tell the truth, the whole truth and nothing but the truth - and tell it immediately. State publicly only what is known, just the facts. Do not make statements that assume, guess or speculate on any aspect of the crisis. Make certain that legal counsel examines all statements before release. Concealing facts regarding the crisis will in most cases backfire, because the media will eventually uncover them, report them widely and more damage will be done to an already damaged company.” (Investopedia, 2010) In conclusion, in the campaign instances for Lenovo’s Public Relations crises, it is essential for Lenovo to communicate key messages across to influential media correspondents and opinion leaders in the industry. Fundamental tasks must be designated efficiently and effectively across all team members to ensure the appointed spokesperson can allow the brand’s key messages to be put across successfully to help achieve the organisation’s initially set goals and objectives to achieve a positive brand image across all target markets. Overall, Lenovo must take great care in what they say, and more importantly, how they say it.

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset | Student ID: 21017802

them. Bucks First PR recommends “the guiding principle for handling such situations”.

References: BBC News – United Kingdom (December 2012). “United Kingdom Profile: Media”. [Online] Available at: <http://www.bbc.co.uk/news/world-europe-18027956> [Accessed 15 May 2013] Bivins, T.H. (2005). Public Relations Writing. New York, NY: McGraw Hill. CIPR. “Crisis Communications”. [Online] Available at: http://www.cipr.co.uk/sites/default/files/17614560%20ok%20for%20web.pdf [Accessed 9 May 2013] Corporate Watch (April, 2003). “PR and The Media”. [Online] Available at: <http://www.corporatewatch.org/?lid=1572> [Accessed 15 May 2013] Entrepreneur (November, 2009). “Why is it important to define a target market for your business?” [Online]

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset | Student ID: 21017802

Available at: <http://www.entrepreneur.com/answer/222022> [Accessed 28 April 2013]

Foster, J. (2012). Writing Skills for Public Relations: Style and technique for mainstream and social media. 5th ed. London, UK: Kogan Page. Franklin, B., Hogan, M., Langley, Q., Mosdell, N. and Pill, E (2009). Key Concepts in Public Relations. London UK: Sage Publications. Grunig, L., J.E. Grunig and D.M Dozier (2002). Excellent Public Relations and Effective Organizations: A study of communication management in three countries. Mahwah, NJ: Lawrence Erlbaum Associates, Inc. Hearit, M.K. (2006). “Crisis Management: By Apology”. New Jersey: Lawrence Erlbaum Associates Inc. IntraPoint (2010). “The importance of Crisis Management” [Online] Available at: <https://www.intrapoint.com/?c=57&kat=Importance+of+Crisis+Management> [Accessed 29 March 2013] Ogilvy Public Relations. “Media Influence” [Online] Available at: <http://www.ogilvypr.com/en/expertise/media-influence> [Accessed 15 May 2013] PR Week (Kate Magee, 2012). “PR Week’s Top 150 PR Consultancies grow 9% despite tough year”. [Online] Available at: <http://www.prweek.com/uk/analysis/1130243/prweeks-top-150-pr-consultancies-grow9-despite-tough-year/> [Accessed 02 May 2013]

Sproule, J.M. (1988). â&#x20AC;&#x153;The new managerial rhetoric and the old criticism.â&#x20AC;? Quarterly Journal of Speech, 74, 468486 Tench, R. and Yeomans, L. (2009). Exploring Public Relations. 2nd ed. Essex, England: Pearson Prentice Hall. Weinreich, N.K. (2011), Hands-On Social Marketing: A Step-by-Step Guide to Designing Change for Good. Thousand Oaks,

CW003: CEO Brief, Plan & Client Handling PR Practice & Skillset | Student ID: 21017802

CA: Sage Publications.