The Pope Goes into Retirement Case Analysis
Will Harris PREL 440
I.
Introductory Statement A. The Roman Catholic Church has a problem. In the wake of Pope Benedict XVI’s resignation, rumors and speculations about the Church are bound to run rampant throughout the media. The Church can use Public Relations in order to quell any media firestorms that may arise.
II.
Situation Analysis A. Pope Benedict XVI is no stranger to controversy. In the years as Pope, he has come under the scrutiny of many organizations due to various media gaffes, and has also been subject to criticism due to the number of sex scandals among priests and bishops. While he has handled the situations in the best interests of the Church, his situation was gravely degraded in the wake of the “Vatileaks” scandal. Paolo Gabriele, the Pope’s personal butler, was accused of leaking confidential documents and letters documents to the Italian press. Gabriele was arrested on May 23, 2012 after officials found the confidential documents in his apartment. On Oct. 6 he was sentenced to 18 months of imprisonment within the Vatican, however, he was personally pardoned by Benedict XVI on Dec. 22. The scandal brought forth alleged corruption within the Vatican. Among these claims was the blackmailing of homosexual clergy, struggles for power, and financial discrepancies. The Pope responded to these allegations by calling them “exaggerated” and “gratuitous.” In March 2012, the Pope appointed cardinals to investigate the leaks. The cardinals composed a 300-‐page dossier of their findings and uncovered the sexual and blackmail scandal. The findings lead to the arrest of Gabriele. The dossier was locked away in the Pope’s personal safe to be handed down to his successor. The dossier, however, was delivered on Dec. 17, the day that the Pope’s decision to resign came to light. Many people thought, because of the media surrounding the scandal, that the Pope was somehow involved in the scandal. While the Pope cited that his health had deteriorated to the point where he no longer felt that he could effectively carry out his term, others still speculated that the Pope himself might have been involved in homosexuality. Matters only worsened for the Vatican when their spokesperson, Frederico
III.
IV. V.
Lambardi, said, "Neither the cardinals' commission nor I will make comments to confirm or deny the things that are said about this matter. Let each one assume his or her own responsibilities. We shall not be following up on the observations that are made about this." The media took that as the Vatican trying to cover up a scandal, and more more rumors were started. In the aftermath of the Pope’s decision to resign, further scrutiny came with his decision to remain in the Vatican after he relinquished the Throne of Peter. By staying in the Vatican the Pope retained his security and immunity. One official stated that “his continued presence in the Vatican is necessary, otherwise he might be defenseless. He wouldn’t have his immunity, his prerogatives, his security, if he is anywhere else.” His immunity retained by staying in the Vatican prevented him from being prosecuted in any sexual abuse cases around the world. With all of the negative tension surrounding the Pope and the Church as a whole, PR could be used to change public opinion. By employing public relations the Church can better communicate to the people the reasons that lead to the Pope’s resignation, as apposed to the widely believed views in the media that he was forced out of his position. Research A. Research has been conducted and found that a majority of people believe that Pope was forced to resign due to the many scandals of the Church. There are also a number of people that believe that Gabriele was a scapegoat in the Vatileaks scandal and that he took the fall from an unknown leak source. Goal-‐ (I would do) A. For the Church to be seen as a strong and secure leader in religion across the globe. Focus – (I would do) A. Diocese of the Church i. Traits: These are members of the Church across respective dioceses throughout the world. These members make up the general population of the Church that the Pope serves. ii. Behavior: The Vatican would like to see the diocese become educated about the reason for Benedict’s resignation, papal responsibilities, and terms of office. B. The media i. Traits: Because the Church has such a large global impact, those that are not a part of the Church should are also generally curious about happenings of the Church. The media fills that void in reporting information about the Church to
those that are not directly involved in it. The media often reports on what is currently happening with the Vatican, the Pope and the Church as a whole. ii. Behavior: The Vatican would like to see the media be properly informed about the deterioration of the Pope’s health and mental state in order to refute any further negative speculation about the Pope’s resignation.
VI.
VII.
Objective-‐ (I would do) A. To increase the media’s awareness of the reason for the Pope’s resignation in order to quell any false rumors that may be circulating. B. To educate the Church’s members in dioceses around the world on papal responsibilities and terms of office, including terms of resignation. Strategy-‐ (I would do) A. The Church will take a strong media stance citing the Pope’s resignation speech that he decided to resign due to his deteriorating state of mental and physical health. B. Start a media campaign that publicly states that reasoning behind the resignation was the Pope’s fading mental and physical health. Publically declare these things in interviews with the media. C. Create an education program dedicated to clearing the air around papal resignations and the requirements of a papal resignation. In this program include that Benedict XVI was completely within his rights to resign, and had been toying with the idea of resigning for more than two years.
VIII.
Tactics-‐ (I would do) A. Media Interviews i. The Vatican will hold media interviews where Vatican officials can explain the proper reasons and procedures for a Pope to retire. B. Press Releases i. The Vatican will issue a series of press releases to the media detailing the procedures and reasoning for a Pope to resign. C. Educational Brochures i. Create and distribute educational brochures that highlight papal responsibilities and terms of office, including terms of resignation. D. Social Media i. Create a social media campaign in order to spread the truth about the Pope’s reasoning for resignation as well as highlight the overall strength of the Church. E. Classes
i. Create classes to be executed at a church level that educate church members on papal responsibilities and terms of office, including resignation.
IX.
Evaluation A. Performance (actual): After the interviews conducted with the media many people were still not convinced that the Pope left his office on his own accord. Because the Vatican chose not to react to the allegations being held against them, they missed an opportunity to quell negative rumors and officially announce the truth of the situation. Due to this the performance of their actions was poor and ill received. B. Effectiveness (actual): The Vatican’s plan was not to address the allegations being held against them. However, this was not effective at all. It actually had a negative effect on their image as more rumors started to rise after Lambardi’s statement.
X.
Analysis A. Good: A year after his resignation Benedict XVI cleared the air saying that the rumors of his resignation were false and that he stands by his decision to step down. This did some to quell the rumors left in the wake of his departure. B. Bad: When Father Frederico Lambardi, the Vatican’s spokesperson, said, "Neither the cardinals' commission nor I will make comments to confirm or deny the things that are said about this matter. Let each one assume his or her own responsibilities. We shall not be following up on the observations that are made about this," heavy speculation came because of the timing of the Pope’s resignation with the statement. Had the statement been separated from the Pope’s statement it may have been more successful among viewers. C. Insights: Personally I think that the timing of the Pope’s announcement was poor. Because of the impending scandals surrounding the papacy it seemed that he resigned because of related reasons. I think that it could have been handled better with the media by timing the announcement better as well as educating the general public about papacy resignation policies.
XI.
References A. Cullinane, Susannah. "Pope Benedict XVI's resignation explained." CNN.com. N.p., 28 Feb. 2013. Web. 5 Oct. 2014. <http://www.cnn.com/2013/02/11/world/europe/pope-‐ resignation-‐q-‐and-‐a/>. B. Donadio, Rachel, and Nicholas Kulish. "A Statement Rocks Rome, Then Sends Shockwaves Around the World." The New York Times. N.p., 11 Feb. 2013. Web. 5 Oct. 2014.
<http://www.nytimes.com/2013/02/12/world/europe/pope-‐ benedict-‐xvi-‐says-‐he-‐will-‐retire.html?pagewanted=all&_r=0>. C. Hutchinson, Bill. "Pope Benedict's resignation linked to gay conclave: report." nydailynews.com. N.p., 22 Feb. 2013. Web. 2 Oct. 2014. <http://www.nydailynews.com/news/national/pope-‐resignation-‐ linked-‐gay-‐conclave-‐report-‐article-‐1.1271328>. D. Pullella, Phillip. "Ex-‐Pope Benedict will have security and immunity by remaining in the Vatican." reuters.com. N.p., 15 Feb. 2013. Web. 5 Oct. 2014. <http://blogs.reuters.com/faithworld/2013/02/15/ex-‐pope-‐ benedict-‐will-‐have-‐security-‐and-‐immunity-‐by-‐remaining-‐in-‐the-‐ vatican/>. E. "Vatican Leaks Scandal." Wikipedia.com. N.p., n.d. Web. 5 Oct. 2014. <http://en.wikipedia.org/wiki/Vatican_leaks_scandal>.
Martha Stewart Insider Trading Case Analysis
Will Harris PREL 440
I.
Introductory Statement A. Martha Stuart has a challenge. In light of her recent legal troubles, Stewart has been receiving a substantial amount of negative attention in the media. Public relation could be an effective tool to alleviate and reverse this negative attention.
II.
Situation Analysis A. Martha Stewart has become a staple in the homes of many Americans. At age 15 she began modeling for money, appearing in television spots and magazines. During her college years she continued modeling for clients such as Chanel at a reported $50 per hour to supplement other scholarships in order to pay for school. During this time, she met her husband, Andrew Stewart, and graduated from Bernard College with a dual major in History and Architectural History. All the while she was learning tricks of her future trade from her family. Her mom taught her cooking and sewing, while her dad taught her gardening, and her grandparents taught her the art of canning. In 1976 Stewart opened a catering business with former modeling associate, Norma Collier. Collier would soon leave the business after claiming that Stewart was difficult to work with, prompting Stewart to purchase Collier’s share in the business. When her husband contracted her catering business for a book release party, Stewart was introduced to Alan Mirkan, who prompted her to come up with a cookbook. This resulted in her first book, Entertaining, which was released Dec. 13, 1982 and was ghostwritten by Elizabeth Hawes. After the books success, she was launched into the spotlight. Stewart would go on to publish many more books, appear in magazines and newspapers, and make many television appearances. By 1997 Martha purchased several T.V., print, and merchandising venues under Martha Stewart Living Omnimedia. Stewart would service as chairman, president, and CEO of the company. On Oct. 19, 1999 MSLO went public on the New York Stock Exchange. The stock surpassed the initial IPO set at $18 per share and reached $38 per share, making Stewart the first female self made billionaire. Although stocks had decreased to $16 a share in 2002, Stewart still controlled 96% voting power of the company.
Her legal troubles began on Dec. 27, 2001 when she sold 3,928 shares of her ImClone Systems stock. Stewart had received non-‐public information from her stockbroker Peter Bacanovic that ImClones cancer treating drug, Erbitux, was denied by the FDA. The day after her trade, ImClones stock fell 16 percent. By selling her shares when she did, Stewart avoided the loss of $45,673. After the event Stewart went on record by saying that she had a stop-‐loss that went into effect if the stock price fell below $60. In addition, she told federal investigators that she didn’t recall anyone telling her to sell her stock. After the incident, Stewart came under heavy scrutiny from the media. During her regular segment on CBS’s The Early Show, she famously said, “I just want to focus on my salad,” after a fellow anchor kept badgering her about her legal issues. Subsequently, she pulled her remaining appearances and fell silent. On June 4, 2003 the long awaited indictment came and Stewart stepped down as CEO of MSLO. She was charged on nine counts, including conspiracy, securities fraud, obstruction of justice, and making false statements to federal investigators. Martha was found guilty on March 5, 2005 on two counts of lying to federal investigators, and single counts of conspiracy, and obstruction of justice. After her motion to appeal was denied, she was sentenced to five months in prison. Upon her release she started to reappear in the public eye. In order to combat the negativity, she overhauled the media with positivity. She expanded her company’s contracts to get her products in more stores such as J.C. Penny’s and Kmart. She returned to television with The Martha Stewart Show and The Apprentice: Martha Stewart. She released more books, and made regular appearances on various talk shows. All of her positivity lead to her negative image being quelled in the media.
III.
IV.
Research A. In looking into this case I couldn’t find any specific research data, but rather many claims that views of her public image had significantly waned. Research that I would have conducted after her legal trouble began would have included polling and surveys of her image. I would have wanted to figure out how much her legal troubles were damaging her company’s image, since her company was branded after her. Since her company was sustaining an operating loss after her indictment, it would be best to figure out how much her reputation has been damaged in order to asses future damage to the company as well as Stewart’s perception. Goal
A. For Martha Stewart to once again be a leader in the home products and entertainment business.
V.
Focus A. Customers of Martha Stewart Living Omnimedia i. Traits: The customers of MSLO are directly relevant since any adverse views of Martha Stewart they have may have a negative impact on their purchasing, resulting in a loss for the company. By focusing on these customers, we can positively increase the perception of Martha Stewart to those that impacting her company’s bottom line. ii. Behavior: Ideally by reinforcing positive views of Martha’s image and brand, customers will retain loyalty to her and her brand. They will continue to watch her shows and purchase her products, and in turn, return her company to profitability. B. The Media i. Traits: By taking a stance in the media, Stewart is announcing to the world that she is innocent. The media will automatically be interested in this case simply because Stewart is a prominent female figure and leader of a large corporation. Since the media is fickle by nature, positively influencing them is important so that negativity of her image does not linger and cause more damage to her reputation or business. ii. Behavior: The media should confront Stewart about her issues and make known that the main charge of securities fraud, which had been highly publicized, had been dropped and was not a part of her conviction. They should also make known that she was not the only person to be convicted as a result of this scandal. After her release they should also make note of her comeback by highlighting everything she has been doing to get back in the game.
VI.
Objective A. To inform customers that she is innocent of securities fraud causing support and retained loyalty to her and her brand. B. To address the media in a consistent manner that shows she was not guilty of securities fraud in order to sway positive public opinion.
VII.
Strategy A. Martha Stewart will increase her media appearances through various outlets. By making positive appearances in the media, Martha can alleviate the negative stigma surrounding her name. B. MSLO will expand its product lines it offers in stores. It will also increase its store affiliations in order to raise awareness of its product offerings as well as show its customers that the company remains strong.
C. Martha Stewart will release addition publications in order to regain her fan base, raise awareness of her brand, and reach potential customers.
VIII.
Tactics A. Website i. Martha will publish a website entitles Marthatalks.com that will act as a as an open letter to Martha Stewarts fans. On the website she will make regular posts keeping her fans informed on her case while also proclaiming her innocence. B. Television Appearances i. Martha will resume her daytime appearances on shows such as NBC’s Today Show. She will also resume the Martha Stewart Show create a new show titled The Apprentice: Martha Stewart in the style of Donald Trump’s Apprentice. All of these television appearances reinforce Stewarts positive image as well as her brand. C. Extend product offerings i. MSLO will expand its product offerings to include ready-‐made home furnishings. The company will also release of line of interior paints, homewares, flooring, and houses. In addition the company will begin offering its products in more prominent stores including Kmart, Sears, and Macy’s. The extended product offerings reinforce the company’s position as a leader in the home offerings market. D. Publications i. Martha Stewart will once again be involved in publishing Martha Stewart Living magazine. In addition she will also begin to publish more books about business management, housekeeping, gardening, and other subjects. These different publications will reinforce existing customers as well as mine new customers.
IX.
Evaluation A. Performance: The initial reaction to Martha Stewarts legal problems was negative. Stewart’s initial silence didn’t help matters either. However, when Stewart started the website proclaiming her innocence she started to gain positive traction. Also, by voluntarily starting her prison sentence early she gained even more positive feedback. Upon her release from prison, Martha’s comeback in television and print, as well as the extended product lines of her company left her in a favorable position in the eyes of public opinion. B. Outcomes: By having a solid comeback, Martha was able to sway public opinion to the point were she returned to prominence even more so than before her sentence. She gained many more fans,
readers and customers, and is still seen as one of the leading persons in the business today.
X.
Analysis A. Good: Everything that Martha did after serving her sentence was phenomenal. She made all of the right moves in order to make a full comeback to the spotlight. B. Bad: The only thing that was bad in this case was her initial silence following the allegations made against her. Silence is usually equated with guilt and her extended silence in the media coupled with her cancelling regular television appearances made it seem as though she was admitting guilt. However, this would later be addressed by her website marthatalks.com. C. Input: I would have immediately hired someone to run a PR campaign rather than wait as long as she did. However, once she did final hire a company to handle her crisis communications she did make a substantial recover from the crisis.
XI.
References A. "ImClone Stock Trading Case." Wikipedia. N.p., n.d. Web. 10 Oct. 2014. <http://en.wikipedia.org/wiki/ImClone_stock_trading_case>. B. "Martha Stewart Crisis." prblog.typepad.com. N.p., 16 July 2004. Web. 9 Oct. 2014. <http://prblog.typepad.com/strategic_public_relation/2004/07/the_ martha_stew.html>. C. "Martha Stewarts Recipe For Crisis Management." prrider.blogspot.com. N.p., 9 Nov. 2009. Web. 10 Oct. 2014. <http://prrider.blogspot.com/2009/11/crisis-‐management-‐martha-‐ stewart.html>. D. "Martha Stewart." Wikipedia. N.p., n.d. Web. 10 Oct. 2014. <http://en.wikipedia.org/wiki/Martha_Stewart>. E. "SEC Charges Martha Stewart, Broker Peter Bacanovic with Illegal Insider Trading." SEC.gov. N.p., 4 June 2003. Web. 9 Oct. 2014. <http://www.sec.gov/news/press/2003-‐69.htm>.
Abercrombie Case
I.
Introductory Statement A. Abercrombie and Fitch has a problem. After an interview from 2006 regained public attention, the company has faced a severe negative backlash that has affected sales. The company can utilize public relations as a tool to regain the public’s faith in the brand.
II.
Situation Analysis A. Abercrombie and Fitch is an American apparel company based out of New Albany, Ohio. David T. Abercrombie and Ezra Fitch founded the company in 1892 in New York, New York. Initially the company sold high-‐end sporting and outdoor wear, as well as sporting goods such as shotguns, fishing rods and boats, and tents. After filing a Chapter 11 bankruptcy in 1976, the company was revived by Oshman’s Sporting Goods in 1978 and sold to The Limited in 1988. Afterwards, the company’s headquarters were relocated to New Albany Ohio, just outside of Columbus. Now, the company sells modern luxury casual clothing to the youth market.
Will Harris PREL 440
The company has come under public scrutiny since 1997, when it’s advertising policies came into question. The company has received negativity after sexualizing young girls, most notably instances of marketing thongs to 10 year old girls and padded bikini tops to girls as young as seven. In addition, the company has been criticized for its provocative advertising, which is also targeted towards a younger audience. In 2006 the CEO of Abercrombie and Fitch, Mike Jeffries, interviewed with Salon Magazine to promote the opening of the company’s flagship store in Manhattan. In the interview Jeffries was quoted saying, “In every school there are the cool and popular kids, and then there are the not-‐so-‐cool kids. Candidly, we go after the cool kids. We go after the attractive all-‐American kid with a great attitude and a lot of friends. A lot of people don’t belong [in our clothes], and they can’t belong. Are we exclusionary? Absolutely. Those companies that are in trouble are trying to target everybody: young, old, fat, skinny. But then you become totally vanilla. You don’t alienate anybody, but you don’t excite anybody, either.” Initially the comments from the article were scrutinized, however, a much more negative situation would arise in 2013. In a Business Insider interview, Robin Lewis, co-‐author of the book “The New Rules
III.
IV.
Goal -‐ (I would do) A. For Abercrombie and Fitch to be seen as a leader in the youth clothing market.
V.
Focus -‐ (I would do) A. Target Markets i. Traits: These are young persons generally from the age of 14-‐ 24 that are primary shoppers of the store. Ideally these will be the “cool kids” Jeffries mentioned in the article. ii. Behavior: The company needs to inform these customers that they are indeed the target market of the company, and reassured of reasons that they should continue shopping at the store. B. Parents i. Traits: These are parents of customers of the target market. These people are most likely to hold the buying power of the younger demographic of the target market, therefore they are a key to sales. ii. Behavior: The company needs to reinforce the brand image and state reasons that parents would want their kids to wear its clothing.
VI.
Objective -‐ (I would do) A. To increase positive perception of the company’s brands among its target markets and their parents by 35 percent by 2015.
of Retail,” stated that Jeffries “doesn’t want larger people shopping in his store, he wants thin and beautiful people. He doesn’t want his core customers to see people who aren’t as hot as them wearing his clothing. People who wear his clothing should feel like they’re one of the ‘cool kids.’” The result was an outrage among parents, teens and the public. As a result of the comments sales of the company drastically suffered. People were boycotting the store as well as signing petitions for the store to change its practices. Company Sales dropped by almost 20 percent in less then a month after the comments. Research -‐ (I would do) A. I would research the how many people have negative feelings about the brand. In this research I would segment the groups by the ages of the target markets for their specific brand lines, so that they can then target messaging accordingly. In addition, I would also survey parents of the target market to garner information about how they feel about the company as well.
VII.
Strategy A. Traditional Media-‐ The company will need to make a public statement the general audience regarding the situation. B. Social Media – The company will also need to leverage social media to control the negativity online. C. Partnering-‐ The company will partner with a company to show its nondiscriminatory practices.
VIII.
Tactics A. Media statement-‐ Mike Jeffries will release the following statement: I want to address some of my comments that have been circulating from a 2006 interview. While I believe this 7 year old, resurrected quote has been taken out of context, I sincerely regret that my choice of words was interpreted in a manner that has caused offense. A&F is an aspirational brand that, like most specialty apparel brands, targets its marketing at a particular segment of customers. However, we care about the broader communities in which we operate and are strongly committed to diversity and inclusion. We hire good people who share these values. We are completely opposed to any discrimination, bullying, derogatory characterizations or other anti-‐social behavior based on race, gender, body type or other individual characteristics. B. Facebook apology: The company will take to the social media platform, Facebook, in order to control the negativity online. In order to do so the company will release the above apology. C. The company will invite the National Eating Disorders Association to its headquarters in order to discuss growing concerns. Following the meeting the company will release the following statement:
“We look forward to continuing this dialogue and taking concrete steps to demonstrate our commitment to anti-‐ bullying in addition to our ongoing support of diversity and inclusion. We want to reiterate that we sincerely regret and apologize for any offense caused by comments we have made in the past which are contrary to these values.” IX.
Evaluation A. Performance: The apologies through both traditional and social media underperformed. Many people thought that the apology was not heartfelt and that the statement was in direct conflict with the company’s practices. Others felt that they were only issuing a public apology since it was widely known that their sales were dropping dramatically.
B. Outcomes: As a result, the company’s sales continued to drop. The company also lost even more customers who that didn’t feel that the apology was heartfelt.
X.
Analysis A. Good: I thought that the only good thing that the company did do was address the situation head on. It was also good that they didn’t wait for that long after until doing so. B. Bad: The company’s apology could have been much better. Also, the company could have done more to change its image, such as change its policies and practices and make its offerings not so exclusionary. In other words, they should practice what they preach, not just say things and then not follow through. In addition, the company could have also put forth more of an effort other than releasing the same statement twice. C. Input: I would have try to change the brand image to not being so exclusionary as well as used other avenues of issuing an apology. Also, I would have addressed the situation back in 2006 and worked on the brand image since then, therefore creating a stronger brand image and avoiding the Robin Lewis comments all together.
XI.
References A. Denizet-‐Lewis, Benoit. "The man behind Abercrombie & Fitch." Solon.Com. N.p., 24 Jan. 2006. Web. 30 Oct. 2014. <http://www.salon.com/2006/01/24/jeffries/>. B. Fairchild, Caroline. "Abercrombie And Fitch's Semi-‐Apology Didn't Go Over Too Well." HuffingtonPost.com. N.p., n.d. Web. 30 Oct. 2014. <http://www.huffingtonpost.com/2013/05/16/abercrombie-‐fitch-‐ ceo-‐controversy_n_3286502.html>. C. Mitchell, Elizabeth. "Abercrombie & Fitch Apologizes for CEO's "Cool Kid" Comments." Mediabistro.com. N.p., n.d. Web. 31 Oct. 2014. <http://www.mediabistro.com/prnewser/abercrombie-‐fitch-‐ apologizes-‐for-‐ceos-‐cool-‐kid-‐comments_b65301>. D. "Abercrombie & Fitch." Wikipedia.com. N.p., n.d. Web. 30 Oct. 2014. <http://en.wikipedia.org/wiki/Abercrombie_%26_Fitch>.