Subway Cuts Ties with Jared

After more than 15 years as the Subway poster-child, Jared Fogle may have to find a new gig. The company has cut ties with Fogle after learning about an investigation related to child pornography.

Fogle lost 245 pounds in 1999 and starred in his first Subway ad in January 2000 with the disclaimer, "The Subway diet, combined with a lot of walking, worked for Jared. We're not saying this is for everyone. You should check with your doctor before starting any diet program. But it worked for Jared." This started an advertising campaign to emphasize healthy food options at Subway.

Of course, Fogle may be exonerated of any wrongdoing. A raid on Fogle's home was instigated by the arrest of a former executive director of Fogle's nonprofit organization, whose mission is to combat childhood obesity.

Subway isn't taking any chances. In a statement, the company said, "Jared continues to cooperate with authorities and he expects no actions to be forthcoming. Both Jared and Subway agree that this was the appropriate step to take."

Discussion Starters:

• Did Subway do the right thing? What if Jared is proved innocent? Could he have legal grounds to sue Subway?
• Some believe it's time for Jared to go, anyway. What do you think, based on the company's performance, goals, and so on?

Twitter Announces CEO Change

Twitter CEO Dick Costolo will step down but remain on the board of directors. Costolo has been CEO since October 2010 and saw the company through an IPO, but performance has not met expectations. One of Twitters big investors wrote a long essay about how to improve the company. The stock was up between 7 and 8 percent in after-hours trading when the news broke.

Jack Dorsey, co-founder (with Evan Williams) and board chair, will serve as interim CEO while a search committee finds replacement. Twitter hired a PR firm to help manage the transition. 

In a press release, the company quoted Costolo:

"I am tremendously proud of the Twitter team and all that the team has accomplished together during my six years with the Company. We have great leaders who work well together and a clear strategy that informs our objectives and priorities. There is no one better than Jack Dorsey to lead Twitter during this transition. He has a profound understanding of the product and Twitter's mission in the world as well as a great relationship with Twitter's leadership team. I am deeply appreciative of the confidence the Board, the management team and the employees have placed in me over the years, and I look forward to supporting Twitter however I can going forward."

According to TechCrunch, employees were fond of Costolo: 

"Internally, sources say many employees loved Costolo. He brought order to Twitter when it was still in its chaotic adolescence, and turned it into a serious business. Whoever comes next will have to transition Twitter from something for news junkies and public figures to a service the average person can love." 

Costolo got a standing ovation when he announced the news to staff.

Image source. 

Discussion Starters: 

• If you were the project lead from the PR firm hired to help Twitter with the transition, what would you advise the management team? Consider the company's constituencies, message strategy, and media choice. 
• What are the challenges for an incoming CEO, particularly following someone "loved" by employees? 

NY Governor Responds to Prison Break

Governor Andrew Cuomo is on the hot seat responding to a prison break in Upstate New York. Two convicted murderers obtained power tools and escaped from Clinton Correctional Facility in Dannemora, NY. 

A New York Times article says Cuomo sees the situation as a political "opportunity": 

"Mr. Cuomo canceled a trip to the Belmont Stakes on Saturday so he could rush to the prison. In photos shared over social media, he peered into jail cells and climbed metal ladders in the belly of the 19th-century penitentiary.

"Television anchors invited Mr. Cuomo to narrate photographs and video of his visit to the prison and pressed him to sketch out the latest theories as to how the escape unfolded."

The end of this video shows Governor Cuomo touring the facility. 

At a news conference, after officials describe the escape, Governor Cuomo confirmed what was said and asked for help from New Yorkers to find the convicts.  

The Governor has the news and this photo under the "Pressroom" section of his website.

Discussion Starters: 

• How well did the three men do in the news conference? As a member of public, did you get the information you need? 
• Assess Governor Cuomo's part. What value did he add to the conference? 
• How well did the men answer the questions (which are difficult to hear)? Pay particular attention to word choice and tone. When the Governor added on a response, was it valuable information? 

FIFA Responds to Accusations

FIFA officials, who run the international soccer association, have been accused of corruption.

In a presentation to FIFA Congress, president Sepp Blatter, who is seeking a fifth term of office, referred to "unprecedented and difficult times." Although he admitted, "The events of yesterday have cast a long shadow over football," he tried to separate himself, football, and FIFA, from the "actions of a few": "We cannot let the reputation of football, and of FIFA, be dragged through the mud." 

Seven FIFA senior managers were arrested. The US Justice Department has accused 18 people total of accepting more than $150 million in bribes, which were handled as cash through three British international banks. 

Blatter said he could "not monitor everyone all the time." But not everyone is convinced Blatter didn't know about the corruption. UK Prime Minister David Cameron has called for his resignation, "the sooner, the better." 

FIFA's governance page provides additional statements about the situation. 

Discussion Starters: 

• Review information on FIFA's governance page. How well do you think the organization is handling the news? 
• Do you buy Blatter's argument that he's not involved in the scandal? What convinces you either way? 
• Should Blatter resign? 

Hardee's and Carl's Jr. Promote Sex, Not Healthy Food

As other fast-food restaurants promote healthier menu options, CKE Restaurants is sticking with good-tasting food and selling it with sex. A Wall Street Journal article describes the company's new ads:

"New ads promoting 'The Most American Thickburger' feature Sports Illustrated swimsuit model Samantha Hoopes donning an American flag bikini as she frolics in a hot tub on the back of a pickup truck."

One burger weighs in at 1,000 calories, and the company isn't apologizing for it. In an interview, CKE's Chief Marketing Officer (CMO) Brad Haley defends the strategy:

"We advertise in a way that appeals our target–young, hungry guys. Sometime they like attractive models. Sometimes our ads are funny or they have an edge to them.

"We are not afraid to take a chance to build our relationship with our target audience, 18-to-34-year-old males. If it's something they love but maybe their moms and dads don't approve of, in a lot of ways that can help us form a stronger bond with our target."

Haley responds to other pointed questions about "crossing a line," "scantily-clad models," ad spending, and the high-calorie food. 

Discussion Starters: 

• What's your view of CKE's strategy? Is the company missing a trend and a moving market, or is it appropriately targeting its customers? 
• How well did the CMO respond to the reporter's questions? Which responses, if any, could be improved? 

World Cup Sponsors Respond to Qatar Controversy

PR Daily has gathered statements from corporate sponsors Visa, Coca-Cola, and Adidas about the 2022 World Cup in Qatar. Reports of worker abuse and deaths and the detention of BBC journalists have sparked controversy about Qatar as FIFA's choice for the event. The International Trade Union Confederation (ITUC) has urged sponsor to speak out. 

Visa was the first company to get FIFA's attention: 

 "We continue to be troubled by the reports coming out of Qatar related to the World Cup and migrant worker conditions. We have expressed our grave concern to FIFA and urge them to take all necessary actions to work with the appropriate authorities and organisations to remedy this situation and ensure the health and safety of all involved."

In response, FIFA issued this statement: 

"FIFA has repeatedly urged publicly and with the highest authorities in Qatar that fair working conditions for all workers in Qatar are imperative.

"Migrant workers have been working for many global companies in Qatar for decades, yet only now is real change happening in their working conditions.

"While there are huge construction programs under way in Qatar that have no connection to the FIFA World Cup, it is clear that the FIFA World Cup is serving as a catalyst for significant change.

"FIFA, alongside trade unions and human rights organisations, will continue to urge the Qatari authorities to accomplish reforms and abolish the Kafala system. Ultimately, however, sustainable change in the whole country can only be reached in a collective effort with all stakeholders involved, including international companies and governments."

The Qatari government issued a statement about detaining BBC reporters: 

"The Government Communications Office invited a dozen reporters to see-first-hand-some sub-standard labour accommodation as well as some of the newer labour villages. We gave the reporters free rein to interview whomever they chose and to roam unaccompanied in the labour villages.

"Perhaps anticipating that the government would not provide this sort of access, the BBC crew decided to do their own site visits and interviews in the days leading up to the planned tour. In doing so, they trespassed on private property, which is against the law in Qatar just as it is in most countries. Security forces were called and the BBC crew was detained."

The BBC expressed its dissatisfaction with the response: 

"We are pleased that the BBC team has been released but we deplore the fact that they were detained in the first place. Their presence in Qatar was no secret and they were engaged in a perfectly proper piece of journalism.

"The Qatari authorities have made a series of conflicting allegations to justify the detention, all of which the team rejects. We are pressing the Qatari authorities for a full explanation and for the return of the confiscated equipment."

Image source. 

Discussion Starters: 

• Read additional statements from Adidas and Coca-Cola. What else, if anything, should these companies say? 
• Should the sponsors pull their support of the Word Cup 2022? 
• What should FIFA do at this point? 

Restaurant Owner Slams Guest Who Wrote a Bad Review

It's not the first time, and it won't be the last. The owner of LA restaurant Sunset Terrace Restaurant & Bar didn't like a review and told all of us about it. 

The original post was from June 2014, but Tyrone only recently replied. 

The owner's response (read at your own risk!) referred to the guest as "ignorant, disgusting, miserable" and said "The world will be a little bit better of place once you no longer a part of it. [sic]."  

After the predictable backlash, the owner posted a long response on his Facebook page. The first three paragraphs are below: 

After all the interest in my admittedly vulgar Facebook post (which I intended to send to Brooke privately)

I think I should give an explanation as to how I came to choose such Spicy language towards her.

Below is the account of what actually happened according to the three (3) witnesses I spoke with immediately after the incident. (A customer who frequents Sunset Terrace several times a week, an off duty employee having lunch and my employee working at the time Crystal)

 Discussion Starters: 

• When you read Tyrone's entire Facebook post, you learn that the guest had insulted one of his employees. Does this justify initial response? 
• How would you advise owners to handle negative reviews, keeping in mind that the guest may always be right-but not always fair or pleasant?

Is Andrew Cuomo Right?

In an op-ed piece in The New York Times, New York Governor Andrew Cuomo writes, "Fast-Food Workers Deserve a Raise." The article begins with context about his own actions in NY: 

ALBANY - INCOME inequality is a national problem that leaders at all levels of government are grappling with. While American capitalism never guaranteed success, it did once guarantee opportunity. But today, too many Americans don't believe their children will have a better life than their own. The ideal of mobility has been replaced by the reality of stagnation.

Some argue that we can close the income gap by pulling down the top. I believe we should do it by lifting up the bottom. We can begin by raising labor standards, starting with the minimum wage.

In 2013, I raised New York State's minimum wage; it is now $8.75, up from $7.25 (and will rise to $9 at the end of the year). In my latest budget, I proposed raising it again, to $11.50 in New York City and $10.50 elsewhere in the state. But the Legislature rejected that proposal. So I am continuing the fight. While lawmakers delay, I am taking action.

Continue...

As evidence, Governor Cuomo quotes President Franklin D. Roosevelt and provides data about income inequality, worker demographics, public assistance spending, wages and prices in Europe, and projected outcomes of raising wages.  

Image source. 

Discussion Starters: 

• What examples do you find of logos, pathos, and ethos in Governor Cuomo's article? 
• Which arguments are strongest and weakest? What, if any, flaws do you find in his data or logic? 

Barbie Won't Associate with SeaWorld

Barbie, whose bones are attached with only moral fiber, has finally ended her agreement with SeaWorld. She will no longer be a SeaWorld trainer.

Mattel doesn't say why, but we can speculate that negative press about the theme park's treatment of orca whales, exposed by the movie Blackfish, is part of the reason.

Alex Clark, a Mattel spokesperson told NBC, "We're not making the doll anymore. Consumers may find it on retail shelves but we are not shipping and not producing the doll." About the decision, Clark said only, "A number of factors go into a decision like that. Their licensing deal expired and we've elected not to renew it."

Image source. 

Discussion Starters:

• Is discontinuing SeaWorld Trainer Barbie the right decision for Mattel even if the doll has been profitable? 
• Should Mattel say more about the reason? What factors would management consider in communicating the decision?

Bud Light Regrets "Up for Whatever" Campaign

Bud Light bottle

Bud Light wants to attract the female demographic, but its latest campaign isn't winning any friends. In a campaign, "Up for Whatever," the beer company seems to be promoting bad behavior. A new bottle label reads, "The perfect beer for removing ‘no' from your vocabulary for the night."

This isn't the first time the campaign was criticized. A New York Times article gives some history: 

And in March, Bud Light was forced to take down a post on Twitter that appeared to promote some type of sexual harassment: ‘On #StPatricksDay, you can pinch people who don't wear green. You can also pinch people who aren't #UpForWhatever.”

This time, Bud Light seems to regret the label choice. In a statement posted on its website, the company promises to stop production: 

Bud Light removal

Image source. 

Discussion Starters: 

• What's your view of the campaign? Bud Light calls is "lighthearted." Do you agree? 

• Should the company have learned after the St. Patrick's Day tweet? Why do you think the bottle labeling continued after that criticism?

• Is stopping bottle production the right decision? Should the company also pull existing bottles from shelves?

Dr. Oz Responds to Criticism

In a video on his website, Dr. Oz responds to criticism that he promotes products for the advertising income. Ten doctors have called for Oz's removal from the faculty of Columbia University College of Physicians and Surgeons, where Oz is the vice chairman of the surgery department. 

In a letter to the dean of medicine, the doctors questioned Oz's credibility. 

Lee Goldman, M.D.
Dean of the Faculties of Health Sciences and Medicine
Columbia University

Dear Dr. Goldman:

I am writing to you on behalf of myself and the undersigned colleagues below, all of whom are distinguished physicians.

We are surprised and dismayed that Columbia University's College of Physicians and Surgeons would permit Dr. Mehmet Oz to occupy a faculty appointment, let alone a senior administrative position in the Department of Surgery.

As described here and here, as well as in other publications, Dr. Oz has repeatedly shown disdain for science and for evidence-based medicine, as well as baseless and relentless opposition to the genetic engineering of food crops. Worst of all, he has manifested an egregious lack of integrity by promoting quack treatments and cures in the interest of personal financial gain.

Thus, Dr. Oz is guilty of either outrageous conflicts of interest or flawed judgments [sic] about what constitutes appropriate medical treatments, or both. Whatever the nature of his pathology, members of the public are being misled and endangered, which makes Dr. Oz's presence on the faculty of a prestigious medical institution unacceptable.

In his rebuttal, Oz questions the doctors' ethics and stands by his approach:

"Figuring out how to talk about your health and how to talk to you about it can be difficult, and there's been a backlash to my approach in some parts of the medical community," Oz said. "The 10 doctors who attacked me got what they wanted: sensational headlines and soundbites. I've long believed that doctors should never fight their battles, or each other, in public. But now I believe that I must."

It doesn't help Dr. Oz's case that his 2:20 video starts with a 30-second commercial for Nasacort.

Oz also wrote an opinion piece for Time, defending alternative medicine: 

"My exploration of alternative medicine has never been intended to take the place of conventional medicine, but rather as additive. Critics often imply that any exploration of alternative methods means abandoning conventional approaches. It does not. In fact, many institutions like mine use the names 'complementary' or 'integrative' medicine, which is also appropriate."

Discussion Starters:

• Assess the letter and Dr. Oz's video response. Which are the strongest and weakest arguments of each?
• If you were the dean, what would you do? 

Blue Bell Creameries Recall Several Products

Listeria monocytogenes found in Blue Bell products has been linked to 10 illnesses, including three deaths. The company announced a broad, voluntary recall of "all of its products currently on the market made at all of its facilities including ice cream, frozen yogurt, sherbet and frozen snacks . . ."

In a press release on its website, President and CEO Paul Kruse is quoted:

"We're committed to doing the 100 percent right thing, and the best way to do that is to take all of our products off the market until we can be confident that they are all safe. We are heartbroken about this situation and apologize to all of our loyal Blue Bell fans and customers. Our entire history has been about making the very best and highest quality ice cream and we intend to fix this problem. We want enjoying our ice cream to be a source of joy and pleasure, never a cause for concern, so we are committed to getting this right."

He also said,

"At every step, we have made decisions in the best interest of our customers based on the evidence we had available at the time. At this point, we cannot say with certainty how Listeria was introduced to our facilities and so we have taken this unprecedented step. We continue to work with our team of experts to eliminate this problem."

This must be a difficult time for the 108-year-old company: this is the first recall the management team has had to address.

The news follows a recall of Sabra hummus products also because of potential listeria, although no illnesses have been reported.

Discussion Starters:

• Assess Blue Bell's press release. What principles of persuasive communication does it follow? 
• What else, if anything, should be the management communicate at this point?

Waka Flocka Flame Is Running for President

On April 20, the rapper Waka Flock Flame announced his run for president. (420 is a significant number for so-called "cannabis culture.") Rolling Stone magazine got the story and posted his campaign video, which you can watch here, but be warned: he uses the "F-word" seven times. 

His campaign promises are to legalize marijuana, ban dogs in restaurants, and ban people who wear large shoes from walking on the sidewalk. 

I'm not sure his slogan, "A blunt a day will take the pain away," will work with Conservatives-maybe Libertarians. 

Makes me proud to be an American. 

Discussion Starters:

• It's interesting that Rolling Stone ran the story, isn't it? Why do you think the editors would agree to this? 
• How do you think his campaign will play out in the race? 

Baha Mar Mishandles Delay

The Baha Mar resort in the Bahamas has been delayed for months, and critics say the communication isn't going well. According to a Hotel Chatter article, the original opening was scheduled for March 27, and then May 5, and now it looks like reservations will be accepted for July 1 - 3. 

Hotel guests are angry. Some claim they didn't know about the delay until 48 hours before they left for their trip and that they found out on Facebook. 

Hotel Chatter quotes Mike Webster, a hotel consultant: 

"The starting point in dealing with any kind of crisis is good communication. And taking a passive-aggressive stance like posting something on your Facebook page is the opposite of proactive communication. To rely on Facebook to get the message out is just ridiculous."

A Wall Street Journal article questions whether this embarrassing delay will affect China's hopes for new business in the United States and the Caribbean. 

The property did receive some nice comments on its Facebook page, complimenting the staff's help in finding new accommodations. Baha Mar is offering one free night to guests to compensate for the delay.

Image source. 

Discussion Starters: 

• Read comments on the Facebook page. How would you suggest the management team respond at this point? 
• What principles of crisis communication would you recommend the hotel staff follow in the future?  

Target Apologizes for Sold-Out Clothes

First, Target was criticized for offering plus-sized clothing only online. Now the company is apologizing for selling out items from the new Lilly Pulitzer collection within minutes.

Customers thought the site crashed, but Target explained that it tried to manage traffic by closing down the site temporarily and by limiting access to parts of the site.

A Target spokesperson said, "We never want our guests to be disappointed. We share their disappointment with the experience of shopping online. It doesn't match what we aim to provide them, which is an easy, seamless, consistent experience."

Although shoppers were disappointed, some having stayed up all night waiting for the products to be available (which happened at 5 a.m., on a two-hour delay), the results for Target are positive overall. As the spokesperson said, "At this point, Lilly Pulitzer is the most talked about designer collection in our ­history."

Discussion Starters:

• One shopper tweeted, "Next time either 1) don't promote something that most people will never see or 2) significantly increase production #whatafiasco." Do you agree? 
• Can you make an argument that the entire situation was intentional? What do you think? 

Marco Rubio Is Cool but at a Cost

Marco Rubio is differentiating himself with technology and music, but he's not entirely successful. The U.S. Republican from Florida may have a edge in the presidential campaign because he's just 43 years old, considerably younger than Hillary Clinton. 

PR Daily tells us how Rubio is showing his tech-savvy side on social media: 

The Florida senator's youth-focused approach isn't limited to rhetoric, either. Social media is a huge part of his campaign. For instance, staffers live-tweeted his Monday speech. Tweets and Facebook posts counted down the hours to the announcement. One tweet played on young viewers' love of the HBO series "Game of Thrones."

He's also joined Snapchat and created an emoji design in a tweet. 

He's also using contemporary music, such as "Something New," by the Swedish group Axwell ^ Ingrosso, but the band isn't happy about the association: 

"Axwell ^ Ingrosso didn't give their permission for this song to be used and don't want to be affiliated with a particular party during the upcoming presidential race."

Discussion Starters: 

• Someone tweeted: "@marcorubio STOP." Do you agree or do you find this campaign approach effective? 
• What, if anything, should Hillary Clinton do in response?

Google Responds to Antitrust Charges

In a data-filled blog post, Google's senior vice president of search responds to antitrust allegations. The first formal charge comes from the European Union, which claims that the company's own results are favored during searches. According to EU competition commissioner, "If the investigation confirmed our concerns, Google would have to face the legal consequences and change the way it does business in Europe." 

In his response for Google, Amit Singhal includes evidence to the contrary. Google's argument is that its own results fair far worse than other sites' results in a user's search.

Within the post, Singhal offer four charts, including this about German travel sites, as evidence: 

Read the entire post. 

Discussion Starters: 

• Read Google's entire post. Which arguments do you find most and least convincing? 
• How could Singhal have improved his visual displays of data?

Marco Rubio: "Yesterday Is Over"

In a speech at Miami's Freedom Tower, Florida Republican Senator Marco Rubio announced his run for president in 2016.  

Under a banner that reads, "A New American Century," Rubio positioned himself as the young candidate with new ideas. He is 43 years old, while Hillary Clinton, who announced her plan to run yesterday,  is 67.

Rubio is the third Republican to throw his hat in the ring along with U.S. Senators Ted Cruz and Rand Paul. The New York Times identifies nine others as probable Republican candidates.

If nothing else, he learns from his mistakes. His water bottle became a joke after his speech following President Obama's State of the Union Address in February 2013.

Discussion Starters: 

• Assess Rubio's announcement: tone, organization, messages, and delivery skills. If you were  a speech coach, what advice would you give him for the rest of the campaign?
• Which rhetorical devices do you hear in this segment of Rubio's speech?

Hillary Announces Her Campaign for President

In a YouTube video, Hillary Clinton announced she will run for president in 2016.

The video is a fresh approach, but it's getting its share of criticism. A Washington Post article described the strategy:

"Notably, all the people in the video express cautious optimism about the next chapter in their lives. The key here is the tone. Over the weekend, the New York Times reported that Clinton's advisers, after pondering how to handle GOP efforts to link her to Obama, had concluded that her best bet is not to distance herself from Obama's record, but to praise the economic progress he has made, and promise a 'new chapter' designed to build on it, one focused on giving those "everyday Americans" a better shot at getting ahead."

Some see the video as too "corporate" and unclear. Others are surprised that she doesn't mention foreign policy, particularly because she was Secretary of State for five years and has plenty of international experience.

Her logo isn't going unscathed either. Critics say it looks like it was designed by a third-grader or in MS Paint. Others say it's reminiscent of a hospital sign or FedEx's logo.

Comparing her announcement for 2016 to 2008, we see clear differences in style and focus. Some contrast her focus on domestic issues now with the Iraq War in 2008. At the time, she was criticized for initially supporting the Iraq War, and some speculate that caused trouble for her in the race against President Obama. 

Discussion Starters:

• How would you describe the key messages of Clinton's 2016 campaign video?
• What's your view of the video? Assess the content, tone, graphics, and so on?
• What other differences between these two videos do you find relevant?

Days Inn Explains Employee Separation

A Days Inn employee was interviewed by The Washington Post about wages and subsequently left or lost her job. The article was about the pending 25-cent wage increase. Days Inn and other employers, such as Wal-Mart, have promised small increases in hourly wages, particularly following protests from Fight for $15 and other organizations. 

Although Shanna Tippen said the increase would be helpful, but in the long-run, it was "not much difference" except for buying diapers: "The diapers, they're $24.98 at Wal-Mart." The article also quoted the Pine Bluff, Arkansas, Days Inn manager, Herry Patel, about the increase: "[The referendum] was bad.  Bad for Arkansas. Everybody wants free money in Pine Bluff."

After the story was published, Patel called the reporter to dispute the quotation, and Tippen called to say she was fired: "He said I was stupid and dumb for talking to [The Post]. . . . He said it was wrong for me to talk to you."  

Patel denied terminating Tippen. Rather, he said, "She walked out herself. I didn't fire her." Tippen reiterated her story to the Post author.

Wyndham, the Days Inn's operator, gave this statement to the Post:

"...while we do not control or oversee staffing decisions at our franchised locations, we do require that each independently owned and operated hotel comply with all local, state and federal laws, especially as it relates to employment practices. While we can't speak to the specifics of this or any particular situation at a franchised location, please know that ours is an organization which values and respects the contributions of all associates and that we encourage each of our franchisees to do the same."

Image source.

Discussion Starters: 

• Read more about the situation. Which version of the story do you believe?
• Did the employee make the wrong decision by talking to the press? She's out of a job now and desperately needs one.