When a Sinking Ship Gives that Sinking Feeling: Costa Concordia and Its PR Disaster

Where do I begin with this one?  How about the basics?

Why is it that big names seem to go with big doings? And I’m not talking about positive “big doings,” I’m talking about the ironic, disastrous kind. Perhaps if we didn’t christen giant cruise ships with bloated titles like Titanic, whose name means enormous size, strength or power and Costa Concordia, meaning harmony in Latin, these types of human and public relations tragedies wouldn’t happen?

Somehow, though, with 320+ days left to go in 2012, I’m sure this won’t be the last global PR nightmare, nor do I believe a simple name change could inspire a change of outcome. Maybe we even need these types of ironic names to help jolt us out of our collective lunacy and help avoid making repeat mistakes. At least the Costa Concordia, the Carnival Corp.-owned luxury cruise liner that ran aground off the Italian coast earlier in late January, didn’t ram an iceberg, or fail to have enough lifeboats on board. Oh hang on a sec, it didn’t.

But if that’s the best we can say about the tragic maritime crisis, we’re not doing very well. And as public relations professionals, charged with handling, directing and shaping a client’s message, somewhere, somehow, someone, could have, should have done better.

While media attention was first focused on the negligible and cowardly actions of Captain Francesco Schettino, who abandoned ship by accidentally falling into a lifeboat, then refusing coast guard orders to “do your duty” and return to ship, there’s been increasing anger and outright disbelief thrown at Carnival, the parent company of Costa Cruises, which ran and built the ship.

And rightly so.  Carnival and Costa are responsible for ensuring the safety of their passengers and translates into having the right equipment and people.  The Wall Street Journal’s  recent article “Carnival CEO Lies Low After Wreck,” was as blunt as the company should have been at the start of the crisis. “Where is Micky Arison?” was the article’s four-word sentence opener.

Good question. Where was he indeed?

The golden rule in any public relations disaster is to get ahead of the story and go into immediate damage control. From the moment the scope of the disaster was learned, Carnival and Costa should have been unwavering in their public openness. Instead what we got was a delayed, reactionary-type response that paints Arison as “a delegator” and one who is working tirelessly from afar at Carnival’s Miami headquarters. While that may be all well and good, once again, it’s important to remember that very often it’s not reality that matters so much as the perception of reality.

Reality vs. Perceived Reality

Take for example last winter when after repeated snowstorms, Newark, New Jersey Mayor, Cory Booker, after hearing complaints from city residents over unplowed streets,  began tweeting his whereabouts as he physically joined the city’s snow removal crews. Residents tweeted their street and roadway conditions and Booker responded in live time when a plow would get through.

He even helped shovel snow and directed the plows to the most congested areas.

Whether it’s a snowstorm or a near-sinking luxury liner, that’s the kind of honesty, transparency and take-no-bullsh*t response that speaks volumes to people everywhere, whether they’re snowed in on Broad Street, Newark, or capsized off the island of Giglio in the Tyrrhenian Sea.

For a golden rule, it’s rather incredible just how often this golden standing gets tarnished. Besides, when it comes to gold, Carnival seems more interested in counting its post-sinking pennies than doing what is right. The Wall Street Journal also reported that the company expects the wreck will lower the company’s net income by $155 million, but that according to a company statement, “the incident will not have a significant long-term impact on our business.”

But isn’t that the very point? The “incident” – that lovely euphemism that translates to mean “an occurrence of seemingly minor importance,” should have a significant long-term impact on the Carnival brand and its business.  It certainly has on the passengers onboard the vessel, and the on the families of those who died.

With uninspiring statements like that coming from a company with the PR-prowess of Carnival you can be sure that 2012’s harmony will be upset by further titanic missteps.

At least big doings will continue to be big fodder for my future blog posts, like Susan G. Komen and Goldman Sachs.

Say Goodbye To Soaps, Shampoos And The End Of An Era

 

 

 

 

The following article originally appeared in Luxury Daily, “Soaps, shampoos and the luxury hotel.”

Traditionally, luxury has been marketed through exclusivity, status, quality and excess – the latter of which implies “more,” not “less.”

This is what ran through my mind recently as I read a Reuters article, “Greetings trump giveaways at luxury hotels,” about how luxury brand hotels are doing away with the fancy freebies – amenities such as shampoos, lotions, soaps – and replacing them with more “enhanced” service in the form of personalized greetings. Whatever that is, anyway…

In my mind, this is very misguided thinking on the part of luxury hotels.

Bar none
Speaking at the Reuters Global Luxury and Fashion Summit last month, Arne Sorenson, chief operating officer of Marriott, expressed the view that, as rates rise back to pre-recession levels, customers will expect more.

“I think, as rates begin to go back up, which they have been doing since roughly midyear last year, you start to see customers expect more … as they expect more, it will cause us, on balance, to increase service in most brands,” Mr. Sorenson said at the Reuters event.

So, tell me, if consumers are expecting more, why do the soaps have to go?

The disconnect here is that while hotels admit that customers are expecting more with increased rates, hotels are, in fact, giving them less by taking away amenities.

So, in place of this bundle of amenities – a staple of hotel luxury over the last few decades – hotels are expecting that “Hello, Mrs. Smith, welcome back!” is somehow going to excuse a lack of shampoo in the room?

How will hotels convey this message to Mrs. Smith, “Sorry, Ma’am, but instead of shampoo, we’ve memorized your dossier.”

It sounds silly, as it is meant to, but it highlights an important point: luxury hotel guests like amenities, will expect amenities, and given the absence of amenities, will ask for them.

Are hotels ready to explain to Mrs. Smith that it is due to cost cutting, when she is paying a higher rate?

Is the front desk ready to tell Mrs. Smith that her shampoo was replaced by a smile and greeting as she entered the lobby just a few moments ago?

Won’t wash
In working with travel brands and hotel companies, I understand the financial argument: replacing costly extras with enhanced personal service always looks better on the books.

However, luxury customers do not care much about the hotel’s books.

Such customers are willing to pay more, to get more, in both service and amenities. And if they do not get what they want – or expect – they will simple go elsewhere.

Both amenity products and enhanced personal services are part of the “experiential” nature of luxury goods – something that we are going to see a lot more of from travel and hotel brands.

When Mrs. Smith buys a service, she purchases a set of intangible activities carried out on her behalf.

But when she buys an experience, Mrs. Smith pays to spend time enjoying a series of memorable events that a company stages to engage her in a personal way.

It could be argued that when luxury guests check-in, they are buying into such an experience from the hotel.

Personalized greetings, enhanced services, and superior products – products that are different than what they normally use – all combine to form the entertainment and escapism necessary to provide luxury consumers the experience that they are expecting.

Additionally, in luxury marketing, enhanced and personalized services are seen as “a special touch,” or a unique way to make the customer feel even more exclusive.

Luxury consumers see such services as an added bonus – one that adds to the experience.

In no way are these services seen by the luxury guest as a replacement for a bundle of physical products that the he or she has received and enjoyed for many years.

Suds, not duds
The only time that luxury brands should even consider getting rid of amenities is in a recessionary, low-rate period, since the customer might excuse the loss of amenities at the lower rate.

To continue reading at luxurydaily.com, click here.

Five PR essentials for luxury marketers

By Vanessa Horwell

Reprinted from Luxury Daily

Vanessa Horwell is chief visibility officer of ThinkInk.

Exclusivity – you have it – everyone else wants it.

Traditionally, this has been the approach of marketing luxury products.

Exclusivity still dominates the message, so understandably most marketers concentrate on this very appealing trait when selling high-end products or services.

You will be special, you will be desirable and feel this way, too, and your peers and the great mass of humanity will covet you if you buy a particular luxury product or service.

But the luxury market and the behavior of its audience are shifting: We are experiencing a wide-scale broadening of high-end goods and services.

Apple iPhones end up in the hands of millions of consumers who do not typically buy pricey electronics.

The Porsche Cayenne prowls U.S. highways and suburbs in far greater numbers than ever expected.

Prada is not only a rite of passage for the über urban, but also for those in the fly-over states.

Luxury and its exclusivity are now within reach of the many – not the few – making it not so exclusive anymore.

For luxury brands, the path well-trodden is not necessarily the path best-travelled any longer. Consumers expect more and will continue to do so.

What is truly different or interesting about luxury brands these days when consumers have such easy access to them?

Are luxury brands still banking on heritage or scarcity?

Maybe it is time to think about a few more qualities.

In our Age of Available Affluence, luxury marketers need to ratchet up the creativity stakes when pitching their products.

Here are five ideas – traits that identify luxury products and opportunities to distinguish and differentiate the brand from its competition.

1. Begin your own tradition: Exclusiveness is about creating a legacy

With the commoditization of formerly exclusive goods, a brand must distinguish itself from the competition by emphasizing the experience of owning it.

Have you noticed how exclusive Swiss watchmaker Patek Philippe – whose new slogan I used as a title here – expertly markets the timelessness of its timepieces?  “You never actually own a Patek Philippe. You merely look after it for the next generation.”

In other words, you are not simply buying a product, but possessing an heirloom for generations to come, infinitely passing along the heritage and legacy of the owner.

My husband recently gave a very handsome Rolex Oyster Perpetual Datejust that once belonged to his father – a gift of trust and time that a newer or fashionable brand, say, Toy could never reach in terms of emotional connection and family heritage.

The chance to own something that will be used, treasured and serve as a witness to history through generations is a powerful inducement. It is a testament to a luxury brand’s staying power.

Is it any wonder that, despite my reference to a different brand, Patek Phillipe holds the world’s record for most expensive watch ever sold?

2. Sir Ernest Shackleton in Burberry regalia: 1914: Tell a story. People love stories

Long before Burberry clothed the masses, its story sold the product.

From outfitting the British Army, to shielding Shackleton in the Antarctic, Burberry’s story gave the brand both mystique and reputed quality. And nothing generates more buzz in the press than a good product story.

On his blog, marketing consultant Michael Cage relates a story of sitting next to a man on a plane who regaled him for a half-hour about the nine-month process it took for him to order, get fitted for, and finally claim a custom suit made in England.

It was not only the fine tailoring and uniqueness of the clothing that made the suit appealing for the man – it was the tale he got to tell about where it came from.

In other words, find the story in your brand and you will find customers.

3. Hand crafted of the finest titanium in a small Alpine village: Traits that no one else can claim

The ubiquity of high-end products offers an opportunity to slant messages away from everyone else.

While toning shoes are by no means an example of a high-end product, they are a great example of every brand in the fitness category claiming exactly the same things. All that is left to compete on is price and the amount that each brand can spend on advertising.

Luxury marketers must think in reverse: emphasize the craftsmanship of the product and do not be shy about detailing how their products are made or services are provided.

Customers spending a sizeable chunk of their disposable income on luxury goods are attracted by products and services created with time, care and craftsmanship in mind.

Moreover, customers want to know that the product they are buying will not be found at high-street retailer H&M for a tenth of the price and available to all and sundry.

4. Longevity through quality: Take advantage of the planned disposability trend

Even the good stuff does not last long these days.

Once upon a time, luxury brands were automatically assumed to boast high quality and durability. No longer.

The planned obsolescence wave that has swept through low- and mid-level consumer products has started to wash over high-end brands as well.

A new BMW and others are good examples. Of course they are quality automobiles, but for how long?

No longer are these simply cars, but computers on wheels. Will the technology that dominates their operating systems be viable in three years, much less five or ten?  Will they be worth owning once their computer systems are obsolete?

This increasing disposability opens a chance for luxury competitors to profit by pushing the quality aspect.

How many rival brands can say they are built to last for the consumer’s lifetime? Probably not many. So feel free to let potential customers know how much higher on the longevity scale you stand.

5. The art of writing: Form beats function

All pens serve the same function, but Mont Blanc positions its writing instruments as works of art.

A Dell PC and an iMac basically do the same job, but the iMac is a beautifully designed, handsome piece of technology.

The iMac’s rivals are essentially a series of boards and microchips in a plastic box.

We will not touch the endless PC vs. Mac quality debate here. Suffice it to say that it also plays a huge part in Apple’s appeal.

The point is: luxury aficionados, although they might not acknowledge or even realize it, are buyers of art.

After all, the great draw of most luxury goods is their beauty. Shine a light on that in your PR campaigns and you will have a consumer lingering on your product and seriously considering whether to add it to their collection.

SO AS THE Age of Available Affluence takes grip on the world, the job of telling your target audience that they will be special, and they will be desirable has gotten tougher.

Think about these five traits and exploit the very best in your product, not only by paying homage to tradition and luxury values, but by using those values to generate a higher level of exclusivity for your brand.

Vanessa Horwell is chief visibility officer of ThinkInk, Miami Beach, FL. Reach her at vanessa@thinkinkpr.com.

http://www.luxurydaily.com/five-pr-essentials-for-luxury-marketers/

About Vanessa Horwell

Vanessa Horwell is Chief Visibility Officer at ThinkInk. She works with companies in the U.S., UK and Europe to improve their visibility through strategic public relations and new media channels. Reach her at vanessa@thinkinkpr.com.