Crisis Communications in the YouTube Age (Updated Aug 2009) MICCI Malacca
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Crisis Communications in the YouTube Age (Updated Aug 2009) MICCI Malacca
- 1. MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE & INDUSTRY MALACCA - NEGERI SEMBILAN BRANCH CRISIS COMMUNICATION In The YouTube Age 7 August 2009 Main Sponsor : Co-Sponsor :
- 2. Crisis communications in the YouTube age By Julian Matthews, Trinetizen Media www.trinetizen.com August 7, 2009
- 3. Part 1: 3 PR disasters you want to avoid
- 5. Nissan vs Nissan Uzi Nissan, founder of Nissan Computer Corporation, owner of website Nissan.com “ In Dec 1999, more then five years after I registered nissan.com, legal action was instituted by Nissan Motor seeking $10M in damages, and to restrain me from the use of my family name for business purposes on the Internet.”
- 7. Over 10,000 messages on ncchelp.org “ I just got a message reading about how you are trying to ROB Mr Nissan of Nissan Computer Corp of his domain name. Shame on you. That is just so typical of some of the more heartless, overbearing, petty, evil corporations out there. Why will you not let this man use his name? Didn’t he have the domain name BEFORE you? You will regret your lame decision on this matter. Don’t get the American public started cuz once we are outraged there is no stopping us. Have a rotten day OK? Thanks.” Aaron O’Brien “ To the Nissan bullies: Nissan is a common Hebrew name and it is the name of one of the months of the Jewish calendar. The name of the month has been in existence since biblical times. I would suggest to Nissan Computers to sue you for name infringement as you have used both his family name and the name of the Hebrew month many years after his name had been in existence and had been registered. Just because you have more money doesn't give you the right to bully people around. As for me, while I am proud of my Honda and of my Volvo, I will never own a Nissan car, and see to it that none of my friends will either.” Dr. Bar-Av
- 12. Good news, get it out fast. Bad news, get it out faster.
- 15. ThinkPad explodes in LAX Gizmodo.com, Sept 16 “ So we're waiting for a flight in the United lounge at LAX, this guy comes running the wrong way, pushing other passengers out of the way and quickly drops his laptop on the floor. The thing immediately flares up like a giant firework for about 15 seconds, then catches fire….” Charred remains of IBM notebook on terminal floor
- 16. Crisis Escalates, Spreads Virally
- 18. Sony execs’ bow not deep enough? “ We want to put this behind us. I take this problem seriously and I want to finish the replacement program as quickly as possible for the sake of our users and corporate customers,” Corporate Executive Officer Yutaka Nakagawa, Oct 24, 2006
- 24. Dell sets up IR blog
- 25. No 3: Kryptonite Bike Lock Fiasco
- 29. Mainstream media picks up story
- 30. Source: Fortune
- 35. The Internet in 1992
- 36. Internet in 2009
- 37. The Old Media World
- 38. The New Media World Investors Customers Prospects Analysts Partners Employees Community Press MESSAGES Competitors
- 39. Rise of broadband in Malaysia Note: Internet penetration est. 62.8%, about 15.8m June08, Source: Internetworldstats.com/MCMC
- 40. Phone penetration 62.8% 100.1% Internet penetration We are nearing the tipping point… Source: Malaysia, Q12009, MCMC
- 44. 200,000,000 videos/per day (65,000 new videos uploaded daily) (Source: comScore, Dec 2008)
- 45. S ource: Universal McCann Comparative Study on Social Media Trends April 2008 73% of active online users have read a blog
- 49. Tomorrow’s customers are today’s “digital natives.”
- 51. Part 2: Online rumours
- 54. Samsung phone easily broken?
- 55. YouTube video taken down
- 60. Politifact.com and Truth-o-meter
- 61. Coca-Cola fights myths online http://www.thecoca-colacompany.com/contactus/myths_rumors/
- 64. Julian Matthews e : julian@trinetizen.com w: www.trinetizen.com b: blog.trinetizen.com t : twitter.com/trinetizen m: +60-12-915-9528 Contact:
Editor's Notes
- Nissan.com is owned by Uzi Nissan My name is Uzi Nissan. He was born in Jerusalem - Israel. His father's last name was Nissan, his father's last name was Nissan, and so on. Nissan is a biblical term identifying the seventh month in the Hebrew calendar. The term Nissan also is Arabic for the month of April. He came to the US in 1976, and have used my surname for years to identify a number of business enterprises. The first was "Nissan Foreign Car" in 1980. “When I operated this business, I serviced different makes and models of foreign cars, including cars manufactured by Nissan Motor, back then known as "DATSUN" . Contrary to the allegations by Nissan Motor, I did not choose to use my last name "Nissan" for my business in 1980 because of their name. At that time, they and their automobiles were known as "DATSUN" and were not known as "Nissan".
- In May 14, 1991, "Nissan Computer Corp" was incorporated in the state of North Carolina. I was then, and still am, the company President. I have used Nissan as part of my trade name in connection with the sale of computer hardware, computer maintenance, networking, computer training and other consulting services related to computers. On June 4, 1994, I registered the domain name "nissan.com" and created a web site to promote computer related products and services on the Internet. In July of 1995, I obtained a service mark registration for Nissan and my logo from the State of North Carolina. On March 17, 1996, I registered the domain name nissan.net , and began offering Internet services, including dial-up connections and direct data connections to business. DECEMBER - 1999, Initial Filing. More then five years after I registered nissan.com, legal action was instituted by Nissan Motor seeking $10,000,000 in damages, and to restrain me from the use of MY family name for business purposes on the Internet.
- JANUARY - 2004, Appeal Reply Motion. Nissan Motor filed a consolidated brief opposing Nissan Computer's opening brief and a cross appeal on: A. Trademark Infringement. B. Final Injunction. C. Requesting the court to force transfer Nissan.com to them. Nissan Computer filed a Consolidated Brief (PDF) opposing NMC's cross appeal and replying to their opposition. AUGUST - 2004, Appeal Ruling. The 9th Circuit Court of Appeals has issued a ruling reversing the case and remanding it back to the District Court. In a Published Opinion (PDF) the Appellant Court rejected Nissan Motor's cross appeal and reversed the District Court's ruling against Nissan Computer on Dilution and the broad scope of the Final Injunction. Not to our surprise, Nissan Motor filed a motion for rehearing by the 9th Circuit's panel and a rehearing en banc (a rehearing by all of the Court of Appeals Judges). On September 2004, the 9th Circuit issued a Ruling (PDF) denying Nissan Motor's motion for rehearing and rehearing en banc. DECEMBER - 2004, Petition to the U.S. Supreme Court. Nissan Motor filed a Petition for a "Writ of Certiorari" to the U.S. Supreme Court, seeking review of the Appellant Court ruling on the Infringement and First Amendment issues. APRIL - 2005, U.S. Supreme Court Order. The U.S. Supreme Court has issued an Order, (PDF) Denying Nissan Motor's Petition for a "Writ of Certiorari", thus the dilution claim, which is the only remaining issue was sent back to the district court. JANUARY - 2007, Motion to strike Jury Demand. Nissan Motor's intentions to deprive us of a jury trial was evident from the beginning, they always felt that they have a better chance of prevailing in front of the judge rather than the jury. In the 11th hour, after all their efforts to do so was unsuccessful, they pulled their last ace and dropped their $10,000,000 damage claim in exchange for a "bench trial" rather then a "jury Trial". MARCH - 2007, Trial. The four-day bench trial occurred between March 27 and March 30 to determine NMC's claims on: 1. Dilution 2. Permanent Injunction re: Dilution. 3. Permanent Injunction re: Infringement. We are now waiting for the court's ruling on these matters. SEPTEMBER - 2007, Ruling. The court has issued a Ruling (PDF) addressing NMC's alleged claims in our favor: 1. Found that Nissan Computer did not Dilute NMC's mark. 2. Denied NMC's requests for Permanent Injunctions. We are still waiting for the court to issue a final judgment. JANUARY - 2008, Motion For Attorneys' Fees. Nissan Motor has been unrelenting in its lawsuit against us and despite that they lost; they subsequently filed a motion asking the court to award them millions of dollars in attorneys' fees. FEBRUARY - 2008, Ruling on Attorneys' Fees and Final Judgment. The court has issued a Ruling (PDF) addressing these remaining issues: 1. Nissan Motor is NOT entitled to attorneys' fees. 2. Nissan Computer is entitled to cost under rule 68. The court ordered NMC to pay $58,000 as cost under rule 68, this is less then 2% of what the cost was to defend this case. You would think this case is over..... but it really isn't . MARCH - 2008 Nissan Motor's trademark registration. Nissan Motor is attempting to obtain a Federal Trademark Registration for computers and computer peripherals among other classes of goods and services. We feel that Nissan Motor, in this action, is staging a future case against us in the computer and peripherals market. We are left with no other course of action but to oppose this registration.
- In any crisis it is best to respond quickly. With the speed of the Internet, and mobile media and self-publishing tools like blogging and podcasting, speed and accuracy from a credible source is utmost of importance. Assess the damage quickly, determine the cause, bring in the experts, liaise with the authorities and tell the truth. If you hide any facts that you are already aware of, the media is likely to go dig up or worse still concoct its own story based on unreliable sources, sending your reputation and management of the crisis into a tailspin. Get the real story out before others -- within and outside the company -- make matters worse by revealing inaccuracies and escalating the crisis.
- Dell took charge of situation by assessing cause and liaising with authority to announce a global recall. Dell to recall 4 million laptop batteries CNET News.com,August 15, 2006 Dell and regulatory agencies worldwide plan to recall 4.1 million notebook batteries, a company representative in the United States has confirmed. The recall affects certain Inspiron, Latitude and Precision mobile workstation units shipped between April 2004 and July 18, 2006. Sony manufactured the batteries that are being recalled, the representative said. The recall announcement -- made a few hours ago in the United States -- followed chairman and founder Michael Dell's statement yesterday morning in Australia the computer maker was still investigating incidents where batteries in its laptops have reportedly exploded….
- Sony on other hand downplays its role in the recall, letting Dell and later Apple make announcements of their own, In the end up to ten other manufacturers were involved and each made painful announcements of their own – even those who didn’t have any “exploding laptop” incidents. Sony seemed to believe its silence would make the problem go away. But the weak response suggested to consumers that it just didn’t care, even has more incidents were being reported around the world, and the crisis was amplified over the Internet, worsening the depth of the problem.
- When Gizmodo, a very popular gadget blog in US broke the story with these amazing pictures, things were looking worse for Sony. ThinkPad explodes in LAX airport, posting on Gizmodo.com, Sept 16 “ So we're waiting for a flight in the United lounge at LAX, the flight next to ours was heading to London and in the middle of final boarding, when suddenly this guy comes running the wrong way up the jetway, pushing other boarding passengers out of the way, he quickly drops his laptop on the floor and the thing immediately flares up like a giant firework for about 15 seconds, then catches fire. About a hundred other people in the lounge jumped up and began a mix of gawking and general panic, I clearly heard a few fleeing individuals saying something about terrorists. The fire burned for a minute while everybody just stared at it, then another flare up, this one much larger than the first, drove a larger group of gawkers away. Eventually, the high intensity flaring calmed down and a larger fire kicked in, all the while letting off a thick cloud of white smoke that was slowly filling the terminal. Finally, an employee came over with a fire extinguisher and put it out of its misery…..”
- The immediacy and power of mobile media and the current self-publishing nature of the Internet through blogs, podcasting, photo/video sharing sites, make addressing a crisis for corporations even more a priority. The face you represent to both the public and in online media must be consistent and show your credibility.In any crisis, dispersion of information on the crisis on the Internet is an imperative. False videos and faked photos must be counteracted upon quickly. The accurate picture must be framed in customers’ minds. In this incident despite the worldwide recall announcement, even users in Yahoo had not adhered to the recall and returned the battery. Dell responded by urging customers to replace the defective batteries. Sony had yet to issue a recall.
- You should have total autonomy on your own blog. That’s a heavy responsibility sans protection from legal eyes and scrutiny from higher-ups. When disclosing information during a crisis, try to get it right the first time. When you get it wrong, apologize immediately. We all have to re-learn how to have conversations online.
- Ideastorm solicits ideas from the community and Dell posts status on popular ideas. Starbucks has followed suit using an application from Salesforce.com
- Once a video is up, anyone who has found it and downloaded it, can re-upload it to any video site, not just YouTube, but hundreds of others like Photobucket, Metacafe, etc anywhere online. So online vigilance, for those of us in corporate reputation management, is a new skill that must be honed and can be quite daunting. Dell has been very proactive in this regard after the "Dell Hell" (search this word on Google.com) incident involving well-known blogger Jeff Jarvis. It has actually formed a team to seek out those who have issues online and posted negative comments on blogs, forums, and various websites. The only way to win existing clients who have frustrations online is to win them one-by-one. The more positive reports go out, the better for their reputations. On this note, just go to www.google.com and search the keywords "i hate yourcompanyname" and “yourcompanyname sucks". How many of these comments can you live with, which ones can you ignore. If your company has not started a blog, you should consider one. Of course, you must have the resources to keep the blog updated and be able to moderate comments judiciously.
- Bike-lock maker Kryptonite finds out the U-shaped locks it's been making can be picked with a Bic pen. Bloggers continued to rail at the company until it finally agrees to exchange the old locks for new ones, at an estimated cost of at least US$10 million.
- Over 200m blogs. Companies continue to underestimate blogs. Blogs can influence your brand, product, service, customers, constituencies.
- OCTOBER 25, 2004, MONTVALE, NJ -- Kryptonite delivered a $10 million hit in unanticipated costs in the third quarter to the Ingersoll-Rand. Despite the setback, Ingersoll-Rand enjoyed an overall 15 percent increase in third quarter revenue to $2.4 billion. Kryptonite's financial drubbing began in early September after Internet video clips demonstrated the apparent ease in cracking its tubular locks with the shells of ballpoint pens. Kryptonite launched replacement programs for consumers and retailers, and accelerated retail delivery of new product. Those moves, however, hit the security division's operating margin. " Operating margins of 16.5 percent (in the third quarter) declined compared to 2003 , reflecting approximately $10 million of estimated costs related to Kryptonite cylindrical bicycle locks," the company reported Oct. 21 in a filing with the Security and Exchange Commission. Its operating margin in 2003 for the same period was 21.2 percent. The company, founded in 1871, is organized in Bermuda with corporate offices in Montvale, New Jersey. It has about 42,000 employees worldwide and a current market capitalization of approximately $11 billion with annual sales of more than $9 billion. The company trades on the New York Stock Exchange under the symbol IR.
- Parody has the final insult.
- Everyone can influence your brand online.
- http://www.universalmccann.com/Assets/2413%20-%20Wave%203%20complete%20document%20AW%203_20080418124523.pdf
- Universal McCann Comparative Study on Social Media Trends April 2008 http://www.universalmccann.com/Assets/2413%20-%20Wave%203%20complete%20document%20AW%203_20080418124523.pdf
- Gen Y tends to rely on their network of friends and their recommendations, not traditional ads. "Ads that push a slogan, an image, and a feeling, the younger consumer is not going to go for,'' says James R. Palczynski, retail analyst for Ladenburg Thalmann & Co. Instead, they respond to "humor, irony, and the unvarnished truth."
- April 13, 2000, CNET, By Julian Matthews KUALA LUMPUR-- An email promising a free handphone from Swedish telco giant Ericsson and circulating among Asian Internet users is a hoax, confirmed a company spokesperson today. "Ericsson is not giving away free phones. The chain mail is a fraud and there is no person with the name of Anna Swelund working at Ericsson. At Ericsson, we are constantly looking at new, innovative ways to market ourselves, chain emails is not one of them," said Peter Bodor, public relations manager of Ericsson Mobile Communications in an email response. Bodor said the company first detected the fake email at the end of March and has received about 1,000 emails since, mainly from Europe, and also from the US and Asia. He added, however, the volume did not crash its mail server. The contents of the email suggested that those who forwarded the email to eight friends would receive a free Ericsson T18 handphone within two weeks. If forwarded to 20 friends, senders were promised "a brand new Ericsson R320 WAP (Wireless Access Protocol) phone." It also reminded the recipient to send a copy of the email to the fictitious Anna.Swelund@ericsson.com address, supposedly belonging to an executive promotion manager for Ericsson Marketing. Bodor said the company would attempt to trace the originator of the email. "Currently, we do not know if it originated from within or outside the company," he said. He added that this was not the first time Ericsson was hit by such chain letters, and that other companies like Nokia, Microsoft and Disney were similarly affected. Ericsson posted a notice on its Web site Monday advising people to discontinue forwarding the email and apologized for the inconvenience…. Link: http://www.trinetizen.com/archive/?p=113
- In Sept 2006, a 21-second video circulating on the Internet entitled "Samsung handset, easy to break at one try!" shows a smiling woman snapping the slim Samsung Ultra Edition mobile phone in half. The 6.9mm thick the Samsung SGH-X820 is marketed as the thinnest mobile phone on the market. So when a video appears on the internet of a woman quite easily snapping the phone in half, you have to wonder have Samsung gone too far in the handset diet wars? However, all is not as it seems. Although the video was first seen less than a week ago it has now been removed Samsung launched an investigation, and claimed the handset may have been damaged to make it appear easy to break. It says the Ultra is made of new materials such as magnesium and fiberglass-infused plastic. YouTube later issued take down notice stating: “The video has been removed at the request of the copyright owner Motorola, Inc, because its content was used without permission.” Samsung is furious about the video, claiming it was designed to damage its reputation and threatens action. Motorola have been firmly denying any involvement saying "...It is unthinkable that a global company like Motorola is involved in such unethical conduct..." Was Motorola scared that their RAZR line of phones is becoming tired and might be surpassed by Samsung's Ultra Edition, so they employ mudslinging amongst the online geek community? Samsung is furious that their reputation for build quality is in question and have told the press and public that the event in the video can't be recreated in normal circumstances due to the fibreglass infused plastic used, implying that the phone must have been tampered with. Samsung said it was considering taking legal action on who made and distributed the video.
- Summary of the eRumor: An eRumor about Michelle Obama's very expensive room service lunch at the Waldorf-Astoria in New York consisting of lobsters, imported caviar from Iran and champagne racking up to a total cost of $447.39. The Truth: T his story was based on an article published in the New York Post on October 17, 2008. Four days later, however, the Post removed the article from its website and all links about it were directed to a retraction of the story.The retraction said, "THE source who told us last week about Michelle Obama getting lobster and caviar delivered to her room at the Waldorf-Astoria must have been under the influence of a mind-altering drug. She was not even staying at the Waldorf. We regret the mistake, and our former source is going to regret it, too. Bread and water would be too good for such disinformation."
- According to a poll, 11 percent of Americans believe the rumor that Barack Obama is secretly a radical Muslim who refuses to say the Pledge of Allegiance and was sworn into the Senate on the Quran
- At minimum, clear and immediate communication is an antidote. If stakeholders know you're aware that there's a problem, that may be enough in the short run to maintain goodwill until the problem is fixed or at least dealt with. But as a former reporter, I know it's far easier to find examples of poor-crisis communications response than it is to find examples of those who learn from others' high-profile mistakes. The more common business response to crisis is to say nothing and hope the problem goes away or the public simply isn't paying close attention. In the absence of a full picture of what happened and why, this tactic rarely does anything other than allow the court of public opinion to reach a verdict. A lack of information fuels anxiety rather than defuses it.