Robert Mack


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Robert Mack

  1. 1. Corporate positioning towards stakeholders in Europe An evidence-based approach Robert Mack, CEO, Burson-Marsteller Brussels
  2. 2. Ukraine’s European future – obligations and opportunities Closer ties to the EU New rules at home New markets in Europe Perceptions of European stakeholders matter
  3. 3. EU also a new market for Ukrainian companies The EU is already Ukraine’s largest trading partner Negotiations to establish a new Free Trade Area will expand opportunities for Ukrainian business Companies interested in this opportunity need to consider how they will position themselves in Europe
  4. 4. But how is Ukraine perceived by EU stakeholders ? International business media coverage about Ukraine in the past six months Source: Newssift.
  5. 5. Some recommendations So what to do? Communicate: proactively, clearly and truthfully. Three ideas to guide you 1. Use evidence-based communications to design effective and impactful strategies 2. Consider your impact on society, your Purpose & Performance from the start 3. Integrated communications including digital is essential
  6. 6. Build an evidence-based communications strategy A scientific approach to communications, driven by data at the beginning, the middle and the end. All components of the communications program are justified by evidence, not by guess work. Development 1. Strategy (beginning) 2. Perceptions 3. Stakeholder identification 4. Tactics Measurement Monitoring (end) (on-going) Programs are measured against organization’s objectives (sales, votes, transactions), not just tactics (media hits, reach).
  7. 7. How we used EB to drive strategy for a major airline company Challenge Develop a communication strategy that would address key issues faced by a major airline and position it as preferred choice amongst competition Strategy We used several evidence-based tools to identify key messages, key issues, key stakeholders and key tactics CO2 – Green audit and Media gap analysis Force field analysis Airline industry benchmarking Media intelligence suite Results Tools showed that we needed to increase awareness of the airline’s measures to decrease fuel consumption The Media gap analysis helped us develop reasonable messaging We also extended the PR-program with green toolkit / used third party endorsement
  8. 8. Case: Norwegian maritime industry reputation survey The maritime industry in Norway is a huge Strategy/ solution part of the Norwegian economy and has • We conducted perceptions audit of the Norwegian historically always had a big presence in maritime industry’s position/reputation among key Norwegian and international seas. international target groups Innovasjon Norge wanted to identify how the • Understand the target groups’ knowledge and Norwegian maritime industry is perceived experience with regards to a number of key variables abroad, why the industry is perceived in this • And establish a basis for further strategic decisions manner and what the industry can do to improve Result • Norway has a long maritime tradition and is a global player offering premium products with excellent quality • Is very expensive with insufficient focus on after-sale service • Not as well defined as before due to many M&As and outsourcing to low-cost countries The Norwegian maritime industry is sliding Impact on communications strategy from traditional shipping into offshore The maritime sector is developing a new “brand platform” as a basis for future stakeholder relations, communications and marketing.
  9. 9. Consider Purpose & Performance We are entering a period where responsibility & company purpose coupled with performance will be a key theme for politicians, the media, investors, NGOs, consumers and employees
  10. 10. Business reputation is driven mainly by Performance – but Purpose is gaining ground Source: Burson-Marsteller Proprietary Research on Purpose & Performance, 2008.
  11. 11. Companies that deliver on Purpose & Performance are seen as role models and even deflect criticism Q: Presuming a company is effective at balancing Purpose & Performance, to what extent would you... Trust in the company even if its 34% shareprice falls Believe in the company even if it comes under public pressure 43% Follow the company in the media 49% Recommend the company as a good employer 58% Believe it is a company to partner with 61% Believe it is a role model in business for other companies 69% to follow Strongly agree Source: Burson-Marsteller Proprietary Research on Purpose & Performance, 2008.
  12. 12. Purpose & Purperformance: the Barilla case • Question: what do stakeholders expect of us? • Answer from an audit: more than just the basics – have a point of view on sustainable agriculture • Action: Set up Barilla Centre for Food and Nutrition in January, 2009 • Result: Has allowed Barilla to communicate directly on key issues and position itself more positively
  13. 13. Use a Purpose & Performance Diagnostics Benchmark the level of understanding and appreciation of a Purpose & . Performance statement amongst employees Compare management’s expectations and desires and also benchmark . against competitors or industry standards Provide qualitative and quantitative data which enables the corporation to . redesign Purpose & Performance content Identify the most effective ways and mediums to communicate Purpose & . Performance for greatest impact to different stakeholders
  14. 14. TEAM Integrate digital in everything that you do Business impact: influence on purchasing decisions Source: EIAA digital families survey, 2007
  15. 15. Start with a Digital check-up Increase visibility Highly influential Protect corporate reputation Highly searchable Stakeholder engagement Considered a “recommendation” Generate leads Search Blogs | CGM Opportunity for Social Corporate engagement Influential chatter Networks Website Your side of the story First impression Critical for influencer audiences Used to confirm impressions
  16. 16. Digital Check Up Findings example What did you learn about me? Search Blogs / UGM Governing Thought • In contrast to Migros and Coop, Nestlé is not optimized for • Nestlé‘s perception in the blogosphere is driven by critical relevant search terms like „gesunde Ernährung“ or „Familie bloggers focusing on critical issues. This is especially true in und Ernährung“. Thus Nestlé is largely invisible to women connection with Water and Baby food searching for such information • Nestlé does not have its own blog, although numerous • To women and young mothers looking for healthy nutrition information, Nestlé is wellness exist • Nestlé is not using sponsored search and is missing an messages and topics around nutrition, health and largely invisible. opportunity to reach 39.5% of its audience looking for nutrition, which could be appropriate for blogging. health and wellness information. • Positive coverage is mostly tied to personal experiences with • Nestlé’s online perception in connection with water is driven Nestlé products i.e. chocolates. There is potential to encourage • Nestlé is not part of Swiss women’s life, it ispositive product blogging. trusted advisor for by NGO‘s, thus very critical. Also true for Nestlé and Baby not perceived as a food. nutrition, health and wellness, but as a huge, cold room to take the machinery. • There is and distant lead: neither Migros nor Coop are actively engaging in the blogosphere. • To overcome this perception and leverage the opportunity to build proximity and Website brand loyalty, Nestlé must shift from pushing online advertising and marketing Social Networks messages to creating dialogue and engagement around nutrition, health & • Nestlé‘s Website is perceived as an advertising platform rather • There is a lot of influential chatter around Nestlé and its products wellness. than a source for corporate content or viewpoints. in the biggest social networks, both positive and negative. • Brand content is overloading the website. It is not particularly • Critical boycott groups are engaging more intense than pro interesting or helpful, is even more important as part • This and it does nothing to portray Nestlé as of its perception are already being defined by Nestlé groups. a leader in nutrition, health and wellness. • Opportunities to build on: Fan pages on several products such its critics alone (water, baby food). • The website has a very technical, cold and distant feel to it. It as Nesquik, Crunch etc and a lot of employee profiles. does not speak to its audiences on a personal level. No faces • Opportunities to build brand engagement via social networks are and too much text and PDFs, no possibilities for interaction not being maximized. Competitors such as Migros are actively creeping into the social network space with targeted ads Why does it matter?
  17. 17. Integrated campaign example: Bacardi responsible drinking Situation Global campaign to promote responsible drinking. Strategy We created a simple video with Michael Schumacher promoting the opportunity to win a ride with Michael for high-speed laps at a world-class race-track. Trained local markets to run a content-seeding campaign through key influencer sites and social networking groups. Results The Digital PR campaign drove over 40% of the microsite traffic, the viral videos received several thousand views on YouTube and B-roll footage was downloaded over 600 times. Extensive global media coverage
  18. 18. Managing a Good Corporate Reputation Pays off Ability to attract new business is the second key benefit of a good corporate reputation. Global Ability to attract & retain talented employees 89% Ability to attract new business/partners/acquisitions 80 Increased loyalty from customers/clients 73 Confidence the company will do the right thing 50 Ability to quickly recover from reputation problems 44 Able to withstand economic ups & downs 39 Better relations with regulators/government 38 Higher share price than competitors 31 Ability to charge premium prices 19 *Burson-Marsteller. Building CEO capital Tier 1 Report October 2005