Power of Social Media Illustrated by Augustine Fou

Power of People Through Social Media Dr. Augustine Fou @acfou http://linkedin.com/in/augustinefou Marketing Science Consulting Group, Inc.March 28, 2012 1

Social Amplification “The power and voice of „the people‟ can now be rapidly and vigorously expressed through social media, to the point that big huge corporations are forced to cave and retract planned actions.” - Dr. Augustine FouMarch 28, 2012 2

Feb 2013 – Tesla Owners RefuteFalsified NYTimes Report NYTimes reporter seemingly deliberately ran down the battery and reported negatively on the Tesla S. Now owners set out to publicly refute the report. Source: Gizmodo Feb 18, 2013March 28, 2012 3

Feb 2013 – Maker’s Mark ReversesDecision to Water Down Whiskey drinkers didn’t like the idea of their drink being diluted yet still cost the same price. Source: Business Insider, Feb 17, 2013March 28, 2012 4

December 2012 – Instagram reverts toold Terms of Service, Won’t Sell Your Pics Enormous public outcry spread through social media forced Instagram to publicly apologize and revert to old terms of service where they won’t sell users photos or use them in ads. Source: Gizmodo Dec 20, 2012March 28, 2012 5

July 2012 – Julia Bluhm, 14, organized 84,000fans, convinced Seventeen Magazine to stop photoshopping Source: Boston Globe July 2012March 28, 2012 6

April 2012 – Mass Effect 3 Fans demandalternate ending; BioWare obliges “ … The company is now devoting all of its efforts to producing an "extended cut" DLC for the summer…” Source: Engadget April 9, 2012March 28, 2012 7

April 2012 – Burger King Pulls AdApologizes to Mary J Blige and all her fans “ … diva stands on a table and rhapsodizes, "Crispy chicken, fresh lettuce, three cheeses, ranch dressing wrapped up in a tasty...flour...tortilla.” Fans rose up against the “stereotypes relating to African-Americans and fried chicken.” Source: AdAge April 4, 2012March 28, 2012 8

April 2012 – $1B AFA Foods BankruptKroger and Safeway pulled all “pink slime” beef off shelves. “Pink Slime” company AFA Foods files for bankruptcy. 500 million pounds of “ground beef product” taken off market. $1 billion annual revenue (end of 2011) company shuttered in ONE month. Business Insider April 2, 2012.March 28, 2012 9

March 2012 – Belvedere Retracts AdDepicting Rape, Using Stolen Image Social Media Idiocy Of The Day: Belvedere Vodkas Rape Joke Forbes , 3/23/2012 Belvedere Vodka: Why Use Paid Actors For Controversial Ad? Just Steal A Picture Of A Woman! “Belvedere Vodka said sorry to a woman whose likeness they lifted from an online video, and then used in a controversial ad,.” Consumerist, 4/2/2012March 28, 2012 10

March 2012 – Huggies Pulls Ads AfterSocial Media Backlash from Fathers Huggies Pulls Ads After Dads Insulted “The diaper company changed its “Have Dad Put Huggies To The Test” campaign after the controversial commercials depicting dads as inattentive caregivers.” ABC News, 3/14/2012March 28, 2012 11

March 2012 – Starbucks Frap Flap, Madewith Crushed Bug ExtractMarch 28, 2012 12

February 2012 – Susan G KomenCapitulated; Will Allow Planned Parenthood Funding #TakeBackThePinkMarch 28, 2012 13

January 2012 – SOPA/PIPA Bill DefeatedAfter Internet Blackout Day SOPA / PIPA Graphic of Senators who “flip flopped” from supporting to opposing.March 28, 2012 14

December 2011 - Verizon Retracts $2convenience fee for online/phone payments.March 28, 2012 15

November 2011 - Bank of AmericaRetracts $5 Monthly Debit Card FeeMarch 28, 2012 16

October 2011 – Netflix Retracts QwiksterSpin-OffMarch 28, 2012 17

October 2010 - Gap scraps logo redesignafter protests on Facebook and Twitter Gap scraps logo redesign after protests on Facebook and Twitter The Guardian 10/12/2010March 28, 2012 18

July 2009 – United Airlines Stockdrops $180 million after “United Breaks Guitars” video “… after United Airlines baggage handlers at ChicagoOHare International Airport broke his $3,500 Taylor guitar. When United refused to pay for repairs, Carroll turned his consumer complaint into a YouTube music video.”March 28, 2012 19

February 2009 – Tropicana Reverts Designafter 19% ($33 million) drop in sales Tropicana Lines Sales Plunge 20% Post-Rebranding AdAge 4/2/2009 Tropicana Discovers Some Buyers Are Passionate About Packaging The New York Times 2/22/09 In Blow To Arnell, Tropicana Drops Package Redesign BNET 2/23/09March 28, 2012 20

November 2008 – Motrin apologies tomoms for suggesting babies are accessoriesMarch 28, 2012 21

So what? “Look for more of these examples and notice the impact on traditional advertising where brands can no longer just tell customers what they should think ..” - Dr. Augustine FouMarch 28, 2012 22

Special Thanks to .. Tom Hespos - @THespos1 Sam Travis Ewen - @SamEwen Howard Greenstein - @HowardGr Octavio Licon - @OctavioLicon Melisa Lopez - @carmenmel Tim Fogarty - @n0her0es … friends, and collaborative sources for this slideshare.March 28, 2012 23

Dr. Augustine Fou – Chief Digital Strategist Dr. Augustine Fou is Chief Digital Strategist of Marketing Science Consulting Group, Inc., a company he founded over 11 years ago. He is an industry- recognized thought leader in digital strategy, search and social media marketing and former Group Chief Digital Officer of Omnicoms Healthcare Consultancy Group. Dr. Fou is also an Adjunct Professor at NYU in the School for Continuing and Professional Studies and at Rutgers University at the Center for Management Development, where he teaches courses on digital strategy, social media marketing to executives. He is a frequent panelist, moderator, and keynote speaker. Dr. Fou completed his PhD at MIT at the age of 23. He started his career with McKinsey & Company. He writes a monthly column on Integrated Marketing for ClickZ.com, and can be found on Twitter.com @acfou.March 28, 2012 acfou@mktsci.com 24

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Power of Social Media Illustrated by Augustine Fou

by Dr Augustine Fou

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