Tuesday, 13 August 2013

PR Heavy Weight - Global

I am starting another blog post about PR disaster but on an international level. For sure it does not apply to most PR professionals here in Winnipeg, but I am passionate about the subject as I have always followed international news given my European and Asian experience. I believe being exposed to more international issues would broaden the horizon of PR professionals here.

My first case is about the business school of the Hong Kong University of Science and Technology. Their EMBA program is the number EMBA program in the entire universe according to the Financial Times (higher than any EMBA program in Canada). A recent graduate of their MBA program developed an app for game called Towers of Saviors, which has made the developers millionaires. However, for those who have used the app find this app very similar to a game developed by a Japanese company which was also a blockbuster.

The problem for HKUST is that they have openly endorsed these two graduates AFTER they donated about $125,000 to the University by inviting them to talk about their success stories and on the HKUST Facebook page. Apparently it is not a PR disaster to HKUST as they simply do not care. However, given my previous experience with HKUST, it is totally consistent. HKUST cares about money and ranking but nothing else. For a PR professional, it is about choosing an organization that you agree with in terms of their ethical standard. I never intended and I will never work for HKUST, no matter how much they pay me. Seriously.

Another recent international disaster is the death of a soldier in Taiwan when he was in camp. Unlike the rest of China (i.e. Mainland China, Hong Kong and Macau), Taiwan has developed a democratic society and I have been amazed time and time again by how civilized the society has become.

For this tragic incident, hundreds of thousands of people have demonstrated right in front the equivalent of the White House demanding an explanation. Even movie stars have voiced their anger, which is extremely uncommon for the Chinese culture. No one single political party has tried to rally the people, it was (and still is) something that many citizens have chosen to do based on their free will. The consequence is the existing government has to answer the questions raised. A young man has died, and justice should be exercised. The Prime Minister Ma has not really said anything that satisfies the public, and it is a really PR disaster at the moment. It would be interesting to check out the development in a week.

Wednesday, 7 August 2013

PR Heavy Weight - North America

This blog post is the beginning of a series of Public Relations-related blogs, and this is called "PR Heavyweight" to simply imply a difficult situation for PR professionals. The first case is the recent train derailment in Quebec and I think no one can argue with me.

How wrong can you get? The MM&A has simply failed in every domain that you can think of as a PR person or a senior executive. Not coming to the centre of disaster because it was easier to make phone calls and liaise with insurance companies in your office? Blaming the firefighters? Scared of coming? Did not translate the press release in French properly? You name it, they did it all. Now they have filed bankruptcy, which is exactly what I predicted. MM&A is one issue, the handling of oil transportation is another. With this tragic accident, we should really sit down and push for tighter regulations relating to oil transportation - or someone else would have a tough PR job. It is not a matter of if, it is a matter of when.

My second favorite this month so far is the cancellation of Obama's trip to meet Putin. Remember Snowden? This gentleman has left the airport in Moscow, and he is seeking asylum. Apparently many consider it as a slap in the face to Obama, hence the cancelled trip. The spokesperson said it was only one of the many reasons, but really? The development is getting even more interesting than ever, and there is definitely a PR lesson for us all.

My third is the scandal surrounding the various senators - the latest casualty is Sen. Mac Harb. It seems like the more we dig, the more unpleasant it gets. Yes, Canada is not free from corruption. However, we are at least trying to fix when we spot an issue. The development can be nasty for the Harper's government, but they can bounce back if they can be more proactive. Why not start putting together more transparent and tighter policies when it comes expenses? Start the conversation, and invite participation from the public. Take the lead, instead of being led when another scandal breaks is my advice.

The development in Rehtaeh Parsons' case is another hot topic. No matter what charges are laid, some people feel some justice has been served. I have lived in a city where police can pretty much do anything (including assaulting citizens in broad day night and then be escorted away by other police), and I appreciate the fact that most police here respect the law and work within it. Yes they did not do the best PR job on the this planet at the beginning, but the police did respond quickly in the end. The death of a young girl is always tragic, but if lessons can be learnt here then at least Rehtaeh did not die in vain. 

Check my post regularly for more cases!




Tuesday, 23 July 2013

PR career - what lies ahead for a new Winnipegger

My career goal for now is rather different from the rest of the class;  all I need is a full-time job to fulfill my short-term. However, having spent almost a year in a PR program has really helped me to identify my interest in PR - politics.

I studied Media Studies in university, and I was fortunate enough to be in one of the best media programs in the UK. Writing and analyzing news was a daily task. Since then, I have grown to love analyzing policies, and its impact on the society as well as among various stakeholders. There are times that good policies cannot pass because of poor lobbying, and there are times that terrible policies get to pass because of successful lobbying. My opinion is that lobbying is still about "What is in it for me", hence research is crucial in order to succeed.

If possible, I would like to study law and then combine my skills in PR. It would allow me to understand the complexity behind legislation, then translate it into plain English in order to influence the public for support. The skills that I have learned in PR (especially the RACE formula and having a clear strategy in mind) would definitely help me to do a fantastic job. I love research, I love politics, and I love building a better world so it is a perfect job for me. I have two books on Canadian politics lying on my desk now, so I am preparing myself - slowly but adequately.

Wednesday, 17 July 2013

Consumers can save money in Superstore and Shoppers?

For some strange reasons unbeknown to me, some people think companies acquire companies to help consumers to save money. I have never seen that in my life. Companies merge or acquire others to make more money, period.

So, I have heard comments that by acquiring Shoppers, some consumers expect saving at both Superstore and Shoppers. The truth is you may save 1 to 2 percent at the beginning, then you won't. Superstore is owned by the second richest family in Canada for a reason - the Weston family exists to make money, and to become richer. Just in case you have forgotten, the Weston family started the President's Choice Financial in the 1990s. Have you ever heard of a financial institution that is not solely about money? Have you forgotten about the 2008 financial crisis?

There is also something called profit margin in the business world, and it is certainly why the deal exists. The deal will allow both companies to save cost in the millions especially by having a bigger bargaining power than ever to its suppliers. Yes, the Weston family will become richer, but suppliers will suffer for sure. Just in case you didn't know, the family also owns Selfridges (which is one of the best department stores in the UK) and its current stock price is above $80 in TSX. All I can see is the dollar sign.

I would love to see that I am wrong, but I really don't think so.  

Friday, 12 July 2013

An unforgettable case: Blendtec

My husband told me I had to watch this blender video on YouTube, I instantly thought he was mad. Then he said to me I should look at it as a marketer. So I said fine and watched it. I was fascinated by the video immediately. By chance, we watched the same video in class a week later.

Blendtec is considered a small company in the US. They produce commercial blenders that typically sell for over $400 each. Blendtec was virtually an unknown company, until the head of marketing found the potential of the blending exercise that Tom Dickson did regularly. With a next to nothing budget, the head of marketing started to produce a video called "Will it blend?" and posted it on their own website. The video became an online sensation immediately. Many more videos have been produced since then, and the golf ball video has attracted over 1.7 million views alone.

I love the idea surrounding Blendtec. First of all it is about the core of the company - blending. They make the power of the machine tangible by blending crazy stuff like iPad. The idea of dividing the videos into "Don't try this at home" and "Try this at home" is smart. It allows viewers to choose their interest whether they want to watch blending an iPhone or blending an apple. The length of the video is appropriate too, always under two minutes. I also think the strong visual allows Blendtec to appeal to people around the world, as you really do not need to speak any English in order to understand what is going on.

Blendtec now has social media presence on Pinterest, Facebook, Twitter, Google+ as well as YouTube. Their business result has improved by more than 700 percent. The fact that they do not have a big budget has forced them to be creative, but they have not become creative for the sake of it. They have really touched the core of their company (the blending power), combined the charm of Tom (with his outfit), and the blending exercise of unusual items such as a new Samsung phone. To me, it is a PR case that I will never forget, nor the noise that the blender makes when it blends an iPhone 5!

Monday, 8 July 2013

Occupy Wall Street: what went wrong and what could have been done differently

The Occupy Wall Street (OWS) movement started in 2011. It attracted media attention pretty quickly, though initially the US media did not pay much attention to the movement. I was in Hong Kong back then, and I could hear it on the news on a daily basis. Almost two years has passed, and I do not know what they have accomplished apart from the 1% vs 99% message.

According to their website, the original idea was to end the greed and corruption of the 1% by adopting the Arab Spring tactics. Apparently the goal has not been achieved. Instead, according to surveys conducted in 2011, people viewed the movement as public nuisance. I personally think the movement could have made a bigger impact by having a plan, and incorporating the following.
Clear call to action: ok, so I agree with the 99% vs 1% key message, but what do I do next? No, I don’t know what I am supposed to do next. OWS should really have thought about what they expect ordinary citizens to do after attracting media attention.

Follow up: similar to the article, I totally agree creating noise is only the first step, it is more crucial to follow up and create real changes. Creating quotable quotes, assigning a strong spokesperson, creating strong visuals, liaising with the media,  liaising with the government, managing the social media presence, managing the logistics for the occupation, and everything else that affects the OWS movement.
Planning: OWS was not really an organized event at the beginning, and it certainly did not have a PR team. The structure of the protest also meant they did not have a leader. Unfortunately, a leader is crucial for liaising with different stakeholders, pulling everything together, assigning tasks to different people, and seeing things through.  They would not have a plan unless it is an organization with funding support whether through donation or sales.

Measureable goals: measureable goals are crucial for success. How can you know whether you have done a good job without setting goals at the beginning? For OWS to gain any success, goal setting is mandatory.
OWS could have been a success. Perhaps it is not too late to sit down, gather their thoughts, and move on with a real strategic plan from this point onwards.
CNN image
 
 
 
 

Tuesday, 2 July 2013

I was here

 
Yes, I was here. I was here every year from 2003 to 2011 (I missed one year as I was away for holiday in Europe). On Canada Day every year, Hongkongers would go out and vote with their feet in order to voice their discontent towards the Hong Kong government. This year, 430,000 people protested in the rain.
 
The picture here was taken in 2003, and I was part of the crowd. It took me more than six hours to walk from Causeway Bay to Central, which would normally take less than two hours. It was a humid day, and it was about 33 degree. Horrible day for protest. However, comparing to the 199 deaths caused by SARS in the spring of 2003, the walk was nothing.
 
In short, I am a proud Hongkonger, at least once a year.  
 
 


PR blogs: my comments and thoughts

Babies are better bloggers than us

Date: July 16, 2013 (Week 4 - Case Studies)

Link: http://www.pickthebrain.com/blog/5-reasons-why-babies-would-make-successful-bloggers/

Comments:

I knew I had to write about it the minute I saw this blog post. Alice is a better blogger than myself? How can it be possible? The author then listed five reasons as follow:

1. They focus on one thing at a time
2. They don't care what other people think
3. They need a mentor
4. They understand the importance of rest
5. They grab their parent's attention well

I guess the author is right. Alice seems to display the above five traits 24 hours a day. Personally I find the second reason most applicable to me. Yes, there are a lot of standard rules out there about how you can utilize social media and how you should write blogs to become popular. However, I have my way of writing and my unique voice. I am not going to create blog posts solely to fulfill the SEO mechanism. I want to write about stuff that I feel passionate about, and I want to write my opinion. I do not and will not create blogs all start with "The top 10..." or "The 5 tips on..." unless they describe the content well.

Last but not all, I need to practice my attention grabbing skills. Read my blog, read my blog, and read my blog!


CEOs on Social media? Good or bad ideas?

Date: July 9, 2013 (Week 3 - Case Studies)

Link: http://www.bbc.co.uk/news/business-23083462

Comments:

This article is about having your senior executives on social media. It talks about the potential benefits and pitfalls, which is very different from the usual social media blog that I have been reading.

The article mentioned a SEC investigation on Netfix because the CEO posted company information on the company's Facebook page. No fine or charge was brought, but it led the SEC to clarify how information should be disclosed. It is ok to use social media, but you have to make sure investors are aware that you are using these channels.

Some CEOs recognize the importance of social media, but some say they just do not have the time. One even suggested that if a CEO tweets regularly, this person probably does not do much work. The diverse view is fascinating, and I truly believe these CEOs should really learn what social media is about before making comments on something that they are not familiar with.

Social media is clearly not replacing traditional media in my opinion, it is complementing traditional media. It is somewhat unwise to ignore it once you look at the statistics. Having said that, when CEOs do start tweeting or blogging, they must have something original or interesting to say rather than writing random tweets or blogs. The social media presence of your organization is supposed to help you to fulfill an organizational objective, it is never there just for fun.






Facebook Officially Adds Support for the Hashtag

Date: July 2, 2013 (Week 2 - Case Studies)

Link: http://socialfresh.com/hashbook2/

Comments:


Apart from the apparent benefits for marketers to find out what is being talked about simply by searching #coach, I think the existence of hashtag on Facebook can be great for another reason. Let’s go back to 2011, when Libya was experiencing a civil war. The fact that you can search a topic through hashtag can help people with similar thoughts or interest to find out the latest, such as where and when to meet for a demonstration. The social power can be immense and it could have taken down the power more quickly than it did, which means fewer deaths.
 
To me social media is never just a marketing tool. Social media can be a great tool to advance civilization. The anti-national education protest in Hong Kong demonstrated it really well in 2012. At the beginning, no one cared. Then a bunch of 15-year-olds started explaining to adults like me what was in the small print through posting videos and posts on Facebook. However, I had to check Facebook on a daily basis at least in order to keep up as there was no hashtag back then. If the tool was available back then, it would have been easier to search the topic and follow all the postings. Let’s see whether the hashtag function would have any impact in Brazil and Turkey.

 
Who really runs this place?

Link: http://www.mpi.mb.ca/en/Rd-Safety/Tips/60-Sec-Driver/Pages/60sec.aspx

Date: Jun 24, 2013 (Week 1 - Case Studies)

Comments:

I have always been fascinated by lobbying. That's right, the rich and powerful spends a huge amount of resources trying to influence government policies pretty much on everything. This blog about the Big 4 (aka the four biggest accounting firms on this planet) and its influence in the British government explains the close relationship between them.

As a PR professional, lobbying is  basically part of what we do - influencing policy makers in order to benefit the very organization that we work for. However, you realize it is more than influencing when you look at the Big 4 in the UK (and to a similar extend in the US). They work with the government to formulate tax-related policies while they earn millions of pounds advising their clients on tax issues. Big 4 pays huge salary, but to me there are certain companies I would never work for because they don't sit right with my conscience. I need to make a living, but I am not going to sell my soul to pay my bills. There are other stakeholders in the equation such as the public and interest group, not just the people who own the company.

https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhslbzW61VEaCPGlgnHqq9PI7NC8J91Myfr1nSLouGO3t_cCZHyYnQcLARiGZFFFNvBhn3WgBemgVuUrr06uzARWM8U5J0uBD59hA7vn7pO9KPSyHz0VZFBdmgN_kidbVV9iRuN8yAa5auU/s320/Spin_watch_comments.png

Social media and storytelling

Link: http://spinsucks.com/social-media/social-stories-how-to-use-storytelling-on-twitter/

 

Monday, 1 July 2013

Case Studies: TOW1

For years I admired Apple as a company. I bought my first iPhone a couple of years ago, and I was incredibly excited. However, I then realized Apple was not what I thought it was after more than 10 people killed themselves in the office where most iPhone components were made in China. Time and time again companies say they have outsourced certain types of work, then they think they have nothing to do with it. However, in my opinion, you cannot outsource responsibilities too.

Apple then said it would look into it - but more people killed themselves. The death toll climbed to about 20 by 2012, and I can never see Apple the way I used to. Being a responsible company is a global initiative, not just in North America.

I am a linear thinker, and I tend to go down a decision tree when I need to decide something. Let's say the brand of car seat for my baby daughter. I struggled with the cost, the brand, and feedback from other parents before I chose Diono. Eventually I decided to buy a Diono car seat because of the discount offered in a store. Without the discount, I would probably have gone for a Graco car seat. I would say I was mainly influenced by my income level - which is zero at the moment. Therefore, the behavior is going to change once I have a paid job.

In terms of thinking differently for an issue I must backtrack to the beginning of 2012. At a time I was carrying Alice, and for the first time in my life, the future of the education system in the post-colonial Hong Kong became relevant.  Then I learnt they were implementing a new subject called "National Education", which was essentially making brain-washing a mandatory subject. I have always paid attention to politics, but the change of status made it even more important to me than ever. So, I wrote my comments constantly on my Facebook page hoping it would influence some of my friends to do something. It was an awful experience having to fight with a government, but it was a battle that needed to be fought.


Friday, 28 June 2013

Occupy Wall Street Hong Kong edition

Sometimes I think I pay too much attention to Hong Kong politics. However, I just cannot let go. I was born there. I spent the first 15 years of my life there, then I left, came back and spent more than 10 years in the city before I left for Canada. I love Hong Kong, but I am sure Hong Kong does not love me. Not even a tiny bit.

Anyway, there has been talk about a Occupy Wall Street Hong Kong version for ages. Now it is set to happen within 2013. Unlike Occupy Wall Street, the Hong Kong version is entirely about democray. That's right, there is no democracy in Hong Kong.

Every year on July 1, we take to the street to show the government how disappointed we are but we have been ignored for more than a decade - we were ignored even when half a million people took to the street and NOTHING broke. Have you ever heard of a demonstration in that scale that is so peaceful?

However, the Occupy Wall Street Hong Kong version is way too frightening for the Hong Kong government. They say peaceful demonstration can be illegal. You have no idea how many people are prepared to go to jail just because by protesting peacefully. Sounds crazy right? That's how Hong Kong is run these days. It is run by a incompetent head of government (this guy said "no comment" for seven times in a 4-minute interview!!!) with a bunch of his friends (who are equally incompetent and greedy).

Wish me luck, I must get a job so that Alice can grow up in a wonderful country. I think Alice deserves better, and I hope you agree.

Thursday, 13 June 2013

10 reasons why Snowden has chosen to hide in Hong Kong from the NSA

As a native Hongkonger, perhaps I can add some insights into why Edward Snowden has chosen Hong Kong as his hiding place. Just in case you did not know, this gentleman is involved in this massive NSA scandal. Here are some possible reasons that I can think of. 

1. Prepaid phone cards: Hong Kong is one of the cities where you can buy prepaid phone cards without any identity check. You do not even need to call the phone company before start using a phone card, you can use it as soon as you pay for it. You can literally buy hundreds of prepaid phone cards without raising any suspicion in certain areas in Hong Kong (Apliu Street is the actual location, check it out in person!).

2. Wifi signal: being one of the most densely populated cities it means you can pick up wifi signals virtually EVERYWHERE. For Snowden, it also means he can use the internet to make a quick phone call, and use another wifi signal and make another phone call just by using the wifi signals of the others (internet security is not exactly common sense in Hong Kong). By doing that, it is more difficult to trace his where-about.

3. Language: you can still get by in Hong Kong using just English, most people speak a bit of English there. In fact, many of my English friends cannot even speak one sentence in Cantonese after having spent over a decade in Hong Kong.

4. The weird status of Hong Kong: we all know Hong Kong is part of China, but it also means Hong Kong does not have a foreign office – so extradition can be a tricky issue between the US and Hong Kong. However, the useless Chief Executive in Hong Kong does not have the gut to decide on anything, so it is really up to Beijing to make the call. If you do not believe, watch this interview with Bloomberg. You will think Rob Ford is the best politician in the entire universe afterwards. Watch the video here: No comment is NEVER your key message
5. Freedom of information (as of today): yes, you can use Facebook in Hong Kong even though it is part of China. Yes, you can get your subscription of the Financial Times REGARDLESS of the coverage. Hong Kong can be bearable as long as you do not read the Chinese media.

6. Not so corrupted yet: another fun fact about Hong Kong is that in general civil servants in Hong Kong are not corrupted because they are paid very well – the head of government in Hong Kong earns more than Obama, despite the size of the country and population is not even comparable to any one states. The conclusion is that these not-so-corrupted civil servants will not sell Snowden for the price of a new car.

7. Time difference: maybe Snowden wants his ex-colleagues from NSA to work 24 hours a day? Hong Kong is 12 hours ahead of DC!

8. Invisibility: there are too many Caucasians in Hong Kong. To an average Chinese, most Caucasians look the same (probably the same other way round, someone shouted “Go back to Japan” a while back), hence it is somewhat easy to remain invisible in this city.

9. “Let Hongkongers decide my fate”: come on Snowden, we cannot even decide our fate (if we could, I think we would hire a contract killer to get rid of the Chief Executive in the city first). If you expect us to decide your fate, then it will never happen – you can stay in Hong Kong until the end of time!

10. I can’t think of the 10th, thanks for reading!!!

 

 

 

Thursday, 6 June 2013

PR case studies: Canadian Payday Loan Association

The Canadian Payday Loan Association (CPLA) represents Canada’s retail payday lending industry. Payday loan operators provide short term, unsecured loans averaging $280 per transaction over a ten-day period. The industry, however, was the only unregulated segment in Canada’s financial services sector. To address growing criticism that the payday loan industry should be regulated, FH was retained by CPLA to mount a comprehensive nation-wide campaign to seek legislative change that would enable regulation. The cornerstone for this initiative was to convince the federal government to amend s. 347 of the Criminal Code (Criminal Rates of Interest) so that provinces could be given the authority to set rates for payday loans and, in so doing, provide real protection for consumers. Over the course of eighteen months beginning in early 2005, FH led a strategic media relations and government relations campaign, supplemented by grass-roots and stakeholder relations, targeting key media and key political and bureaucratic decision makers at the provincial and federal levels of government. A multi-level, multi-party government relations exercise was pursued, supplemented by a focused and highly successful national and provincial media campaign. In early 2006, a number of provincial governments began signaling their support for provincial regulation of the payday loans industry and were encouraging the federal Justice Minister to introduce the required criminal code amendment. At the same time, several national, provincial and media press stories were generated which added to a growing momentum for regulatory change. With sustained effort, in May of 2007 the federal government gave Royal Assent to legislation which gives authority to the provinces to regulate the payday loan industry through consumer protection mechanisms that set a clear maximum on the cost of borrowing. Through FH’s country-wide media and government relations efforts, eight provinces have already moved to regulate the industry, providing both consumer protection and continued access to payday loans.
 
1. What is/are the relevant issue(s) in the case?

The issue here for the Canadian Payday Loan Association (CPLA), which represented about 40 percent of companies in the payday loan and cheque cashing industry (Payday loans not just for low-income earners, 2007), was the growing concern from the public regarding the interest rate charged to payday loan and cheque cashing users – which could actually be more than 1,000 per cent per annum. In some cases, the interest could be as much as 15,000 percent per annum (Kitching & Starky, 2006). Despite the ridiculous amount of interest rate and service fees, the payday loan market was growing rapidly at the beginning of the 21st century. For example, Rentcash’s revenue grew by 250 percent in 2005 comparing to the year before (Rentcash, 2005). In addition to the criticism about the charges, many believed payday loan companies literally drained income from the lower-income families and created a vicious circle for those who are less fortunate. Moreover, the class action cases against these unregulated financial institutions at a time attracted a lot of media attention, such as the case in Alberta filed in 2005 (Class-action suit filed against payday loan company, 2005) and the case in Ontario filed in 2003 (Payday loan victims get $100 million, 2009).  

The industry’s growth was alarming – it lent some $1 billion a year to two million Canadians per year (Payday-loan paralysis, 2007). Given the negative media coverage of the payday loan, compounded with the number of people used payday loan services at a time, CPLA realized it was in its best interest to seek regulation that would improve the public image of the industry, while preserving a very lucrative business model (charging from $17 to $25 to borrow $100 in different provinces in Canada (Payday Loans: an Expensive way to borrow, 2012)).

2. Based on Grunig & Hunt’s models of PR (p.53,Think Public Relations, 2013), which model is the organization using? Provide examples.

I believe the organization used the two-way asymmetric model. First of all, it hired FleishmanHillard (FH) to run an extensive public relations campaign, which has offices in more than 100 cities around the world (Offices, 2013). The power that CPLA had, especially in monetary terms, was massive. 

Secondly, the campaign that FH ran for CPLA was extensive – it ran from 2005 to 2007. The length of the campaign indicates that the amount of work that CPLA and FH put into in order to effect the changes that they wanted to create.

In addition, CPLA was very active in promoting the legitimacy of the industry. For example, the President of CPLA wrote letters to the editor to rebute the negative coverage regularly (Payday loans not just for low-income earners, 2007).

3. Describe the publics of the organization and what message(s) the organization is communicating with these publics.

 

Publics
Messages
Members of CPLA (allies)
We have to work together and lobby to the government in order to preserve the industry.
Government – federal and provincial (allies)
We want to effect legislation that would ensure the industry offers a service that helps those who need it, as well as to ensure the industry is viable.
Consumer Protection Office (allies)
We want to protect the rights of consumers and operate a viable business.
Consumers (allies)
We are fulfilling the needs for those who choose a payday loan over other forms of credit. We are working with the government to introduce legislation to put a cap on the interest rate on payday loan.
Financial Consumer Agency of Canada  (allies)
We want regulations, we want to protect consumers, and we want to operate a viable business.
ACORN (adversaries)
We are here to provide a service needed by Canadians, and consumers choose payday loan service over other credit options deliberately.


4. For at least one press release, compare how the press release appears in the organization’s online newsroom to how the story appeared when it was published in the media.

The CPLA issued a press release in November 2007 after United Way issued a report on poverty in Toronto. According to the report issued by United Way, it believed the growing number of payday loan stores as a warning sign as to why many in the city were becoming poorer. It urged the Ontario government to regulate the industry, and the government should set an interest rate cap and limits on fees. The report was mainly based on past studies on fringe financing, and the United Way also conducted an audit of Toronto payday and cheque cashing outlets in 2006. According to the United Way, they counted 317, up from 39 locations in 1995 (Rankin, 2007).

The CPLA then issued a survey about 500 payday loan borrowers in Ontario (which was conducted by Pollara, a public opinion survey company). The survey issued by CPLA somewhat contradicted the finding of the United Way’s report. It claimed its clients were generally educated and had access to other financial institutions such as banks. To report indicates that the payday loan customers chose payday loan service over other credit options deliberately.

The CPLA’s survey did go into the Toronto Star article published on 26 November 2007. Though it did not quote the President of CPLA, the numbers were quoted – such as 60 percent of payday loan customers had a savings account, and about half had a major credit card. The data included in the news article helped CPLA to send its message to the public (United Way Poverty Report Doesn't Reflect Reality of Payday Borrowers, 2007).

5. Provide analysis of how the organization uses and benefits from (or could benefit from) social media. Provide links to all major social media accounts for the organization, if available.

Given the nature of the industry and based on the demographic of its market segment (male, aged between 18 and 34, urban residents with some post-secondary education (Kitching & Starky, 2006)), I believe CPLA and its members can benefit from using Facebook and Twitter.

First of all using these social media platforms could help CPLA to reach its target customers. Moreover, Facebook and Twitter have many female users, CPLA could consider using these platforms to reach a new target group.

In addition, these platforms can help CPLA to engage with customers and potential customers. It would allow CPLA to explain its stance, the practice of the industry, and even share stories of customers (such as the success stories where people who need short-term credit benefit from payday loan service for urgent issues, as payday loan stores tend to have longer business hours).

My conclusion for the case is that a PR campaign is not the end goal – it is work in progress. This is especially true when you look at recent articles concerning the industry (Payday lenders' lines of credit questioned in Manitoba, 2013) – even though legislation has been put in place, the industry came up with creative ways to charge the customers. The Cash Store and Instaloans are facing a proposed class-action lawsuit about overcharges even after payday loan laws have been introduced (Payday lenders' lines of credit questioned in Manitoba, 2013). PR is not a magic bullet to replace unethical business practice, PR is supposed to be here to help business to get the message across for its excellent products and services. 

Bibliography

 

Class-action suit filed against payday loan company. (2005, 4 27). Retrieved 6 1, 2013, from CBC: http://www.cbc.ca/news/canada/story/2005/04/26/payday-loan-050426.html

Payday loans not just for low-income earners. (2007, 5 15). Retrieved 6 2, 2013, from CPLA: http://www.cpla-acps.ca/english/clippings_2007_10.php

Payday-loan paralysis. (2007, 1 8). Retrieved 6 2, 2013, from CLPA: http://www.cpla-acps.ca/english/clippings_2007_2.php

United Way Poverty Report Doesn't Reflect Reality of Payday Borrowers. (2007, 11 26). Retrieved 6 3, 2013, from CLPA: http://www.cpla-acps.ca/english/pr_2007_12.php

Payday loan victims get $100 million. (2009, 6 10). Retrieved 6 1, 2013, from Toronto Star: http://www.thestar.com/news/ontario/2009/06/10/payday_loan_victims_get_100_million.html

(2012). Payday Loans: an Expensive way to borrow. Ottawa: Financial Consumer Agency of Canada.

Offices. (2013). Retrieved 6 2, 2013, from Fleishmanhillard: http://fleishmanhillard.com/offices/

Payday lenders' lines of credit questioned in Manitoba. (2013, 2 7). Retrieved 6 3, 2013, from CBC: http://www.cbc.ca/news/canada/manitoba/story/2013/02/07/mb-payday-loan-line-credit-manitoba.html

Kitching, A., & Starky, S. (2006). Payday Loan Companies in Canada: Determining the Public Interest. Ottawa: Library of Parliament.

Rankin, J. (2007, 11 26). Proliferation of lending stores a signal people are poorer. Retrieved 6 3, 2013, from CPLA: http://www.cpla-acps.ca/english/clippings_2007_18.php

Rentcash. (2005). Annual Report. Edmonton: Rentcash.

 

 

 

Wednesday, 5 June 2013

An interview with Liz Peters

Liz Peters is the Public and Government Affairs Manager for CAA Manitoba. Before she joined CAA Manitoba, she used to work for the Official Opposition of Manitoba as the Director of Media Relations.  Liz is an alumnus of the PR & Marketing Management Diploma Program at the University of Winnipeg, but she is now a part-time instructor of the same program.

Liz shared the CAA Manitoba Worst Roads campaign with me. This is a national campaign run by seven CAA Clubs in Canada each year. This was CAA Manitoba’s second year running the campaign in 2013, and it lasted four weeks.

Liz started by creating a complete program plan, which included considerations for all marketing materials and PR/media opportunities, such as the objective of the campaign, a list of target audience, a tactical plan, key messages, a timeline, budget, media releases, media advisories, media conference plan, promotional plans, PSA, pitches to the editors and evaluation.

Goal setting was the number one task, and the objectives for CAA Manitoba were to:

1. Get people talking about the condition of roads, as public opinion would help to persuade the government to listen and make changes.

2. Provide various levels of government with CAA Manitoba's research, so they could consider them when making their plan for infrastructure in the coming years.

3. Increase the number of votes cast throughout the four-week campaign.

Liz conducted some research for the campaign – though she already had a lot of information in-house. The major part of work came from researching what different levels of government had done in regards to infrastructure investments, as it would affect the messaging.  Liz and her team also conducted a survey that went to 50,000 members asking for their personal thoughts about the condition of the roads and highways. She used the response as a hook for the entire campaign, as well as to persuade the government using public opinion.

In terms of promotion, CAA Manitoba used online banner ads on ChrisD.ca, placed ballot boxes in their branches, and put up posters on the door at various branches, used the #mbroads hastag on Twitter, put up photos of Worst Roads received from the public on their Facebook page, and also organized a few other activities. In addition, they sent out two email blasts to its members urging them to vote. The first one was sent to everyone, and the second one was segmented (dividing those who had already voted, and those who had not). The two emails were about two weeks apart.

The next stage was evaluation. Liz and her team would monitor the media; for example, they found the story was the 8th most commented story on the Winnipeg Free Press online version the day after the campaign was launched. They also looked at the number of likes on the pictures and comments posted on Facebook, and the retweets on Twitter (such as the retweet from the Mayor of Brandon). As well as a tweet to a Brandon City Councillor which turned into the editorial caricature in the Brandon Sun. In the evaluation process, Liz also identified the unusually cold April weather with snow shifted the focus from road preparation to flood preparation. It was not something you could plan, therefore it was important to remain flexible wherever was possible – and this is an important lesson for PR professionals.

 In addition to the above, Liz also evaluated the number of votes received during the campaign - which increased by 60 percent year on year. She and her team also conducted a survey about how people found out about the campaign. It turned out more people found out about the campaign through the mass media (television, radio and newspapers) than the CAA email that the members received. The evaluation process would help Liz to formulate the same campaign in 2014.