EPISODE 89 OF THE MARKETING SOLUTIONS PODCAST: CONTROLLING THE NARRATIVE WHEN YOUR SOCIAL STOCK GOES DOWN
Sonya:
Before you listen to today's podcast. I have a quick disclaimer. The episode was written and recorded in the week before Peloton pulled their response ad due to some unsavory allegations, which was made about one of the stars involved. I do think the lesson still stands so I decided to go ahead and release this episode. I hope you enjoy it and poor Peloton just cannot catch a break.
Sonya:
What do you do when your brand is at the top of the new cycle for all the wrong reasons? Do you do the old, "If you ignore it, it'll go away"? Do you try and to defend yourself or do you try to respond with humor and hope it's received well? As with most things in life, it depends on the situation. In today's episode, I'm going to introduce you to one brand who got it really wrong when they were thrust into the spotlight and another that handled it beautifully.
Sonya:
It's a timely reminder that, in today's climate, your brand can go from having an incredible reputation to be canceled in one fell swoop and how you respond can make all of the difference.
Sonya:
Welcome to the Boom Your Biz podcast, a podcast for the movers, the shakers, and even bigger action takers in business. I'm your host, Sonya McIntyre-Reid and each week I'll be exploring the question of what really makes businesses and organizations thrive. I'm on a mission to educate and power and inspire business owners and myself along the way.
Sonya:
If you've been on social media at all in the last two weeks, you'll know that not one, but two big brands got a little sideswiped by scandals involving their products. And just before Christmas too. The first brand, Peloton, hit our collective consciousness for an instant that was completely out of their control, a damaging storyline in the much anticipated Sex and the City reboot. The second brand, Chanel, if you can believe it, hit the headlines for being... Well, I'm just going to say it, a total tightass. They're definitely not winning any prizes for generosity in 2021. Because I find their reaction so far removed from what I think an internationally beloved luxury brand would do, let's start with Chanel and the saga of the Christmas advent calendar. If you've followed me for a while, you know that I love a good promotional opportunity and that I think Christmas is the perfect time to go all out.
Sonya:
And what better way to let your customers try your entire range than with an advent calendar? I saw advent calendars described as being a way to microdose Christmas and I could not agree more. In one product, you get 24 opportunities to surprise and delight your customers. And if you do it right, you create raving fans who will stay loyal and purchase not only the promotional product again, year after year, but full-size versions of the products you introduce them to in their advent calendar too. With the Chanel being Chanel, shoppers didn't seem to bat an eye at the $825 US dollar price tag expecting 24 products. What they got, however, was pretty disappointing and led to the brand being absolutely roasted on TikTok and Instagram.
Sonya:
You see, what it appears that Chanel did with their advent calendars this year was basically dust off old boxes of gift with purchase stock and gimmicky promo material and use that for the majority of their calendar. I'm talking stickers, bracelets made from a plastic disc and string, temporary tattoos and a cheap-looking keychain. Now there was a full size Chanel No. 5 included. I'll give them that. But when the entire retail value of the calendar was tallied, it came to a measly $238, an impressive profit margin for Chanel, but a very disappointing experience for customers.
Sonya:
It's worth noting here that the one thing Chanel did really well was the packaging of their calendar. You can just tell that the team designed it with every little detail in mind and with the intention of the promotion going viral on social media. And it did, but just for all the wrong reasons. TikTokker Elise Harmon, who has a pretty significant following herself, was one of the first who decided to unbox their advent calendar on the platform. Her shock was pretty evident and within a day or two of her unboxing, the video went viral.
Sonya:
That would've been damaging enough for the brand because as we all know, everyone loves to jump on a viral trend and more unboxing videos started popping up almost immediately. What made the situation worse, though, is that Elise followed up with a video claiming that she had been blocked by the brand. Chanel denied this claim, saying that their channel was never active in the first place, but by then the videos had been reposted to Instagram and YouTube where influences and industry watch dogs like Diet Prada had added their two cents to the conversation, trashing Chanel not just for being so stingy, but for the handling of the instant in the aftermath.
Sonya:
If you read the statement Chanel put out following the instant, it sounds defensive and a little bit like the dog ate my homework, to be honest with you. And this is a good lesson for brands. You don't have to be on every platform, particularly if it's not the right fit. When I think TikTok, I do not think Chanel. Here's the thing though. Chanel may be a luxury brand, but it's the younger demographic who has not only the disposable income to purchase their products, but the platforms to express their distaste of the brand with the potential for that opinion to go viral.
Sonya:
Could it be that there is a changing of the guard and this once much-loved fashion house is no longer going to be that brand that the young people aspire to own? Chanel clearly didn't understand the value of their promotional product and they clearly didn't understand how the next generation of consumers operates.
Sonya:
Peloton's handling of their so-called scandal, on the other hand, was a masterclass in how to deal with being caught off guard. There was a little bit of luck involved in the fact that they were already in talks with Ryan Reynolds about working together, but I think you'll agree that, in contrast with Chanel, they absolutely nailed it.
Sonya:
You may remember that two years ago, Peloton became the butt of a joke when they aired a series of ads featuring an incredibly uncomfortable looking actress. The wooden delivery of her lines spawned countless memes and it didn't really let up until they took their ads off the air and went pretty quiet for a good three to six months. This time around, though, they responded quickly and they responded with a lighthearted dig of their own.
Sonya:
If you haven't yet watched the first episode of And Just Like That, and if you intend to, maybe skip ahead a minute or two. Actually, I'm going to suggest you make it three minutes to be safe. Spoiler coming in 3, 2, 1.
Sonya:
If you're still listening and don't want to hear what happens, don't say I didn't warn you. Here we go. At the end of the first episode of the Sex and the City reboot, Mr. Big participates in a particularly vigorous Peloton class. For those not familiar with Peloton, it's a bike that allows you to enjoy virtual classes like spin class you'd go to at the gym, but in your own home at a time that suits you.
Sonya:
Hardcore Peloton devotees all seem to have their favorite instructors. Mr. Big instructors of choice is known as Allegra. Carrie goes off to watch Lily's piano recital. The same Lily who, if you recall, hid Carrie's phone in that wedding movie and nearly derailed the whole Carrie Big relationship. Anyway, I digress. Carrie goes to Lily's recital and Big stays home to do his 1000th ride and get his shoutout from Allegra. That's the Peloton equivalent of a gold star for you overachievers.
Sonya:
Shortly after the ride, Big has a heart attack and dies. Not what we are expecting for Carrie's happily ever after. And this twist of events not only shocks fans of the show, but also Peloton investors. The company stock plummeted to 19-month lows in the 48 hours after the show aired. And the kicker? Peloton had no idea it was coming. The company was aware that a bike would be featured in the episode and they knew that one of their well-known instructors would be portraying a fictional Peloton instructor.
Sonya:
But as to the actual plot, they were in the dark as much as us viewers were. What followed was a little bit of a PR nightmare, but I have to say they handled it so well. Within 48 hours, Ryan Reynolds' production company, who was already apparently in talks with Peloton about creating a holiday ad campaign, got Chris Noth, who plays Big, and the Peloton instructor who played Allegra on board and they developed, produced and distributed their response.
Sonya:
Or should I say retaliation in record time? The ad portrayed a kind of an alternate reality where Big lived and we see him cozied up in front of the fireplace with Allegra. She purrs at him, "You look great". To which he responds, "I feel great" and then nods towards the Peloton bikes and suggests they go for another ride. We then hear Ryan Reynolds' voiceover, where he says, "And just like that," a cheeky nod to the show that caused all the drama in the first place, before launching into a spiel about how regular cycling stimulates and improves your heart lungs and circulation, reducing your risk of cardiovascular disease.
Sonya:
He goes on, but you get the point. And here's where I have to highlight the difference between Chanel's response and Peloton's. Chanel came out being defensive and sounding like they couldn't believe they had to stoop to the level of even responding. Peloton's response, on the other hand, was perfect.
Sonya:
It's fun, sassy, culturally relevant and positioned perfectly to go viral. And to pull it all together so quickly is seriously impressive. It's also worth noting that Peloton's situation was completely out of the brand's control and the Chanel drama was a product of poor decision making.
Sonya:
I can't help but wonder if Chanel's reps got defensive because they knew they were putting out a rubbish product and they thought they were going to get away with it. Seems to me like it was just a way to clear old excess promo material. Either way, the contrast between how these two brands dealt with dramas offers a big lesson for us all. Firstly, if you're going to participate in promotions, show your customers enough respect to put together a high-quality, high-value offer. They can sniff out a scam from a mile off. And secondly, if you find yourself in the eye of a hurricane that wasn't of your own making, ask yourself, "What would Ryan Reynolds do?"