Survey: Marketers still don't get how to do multicultural marketing
By Beth Snyder
BulikAdAge.com
(February 25, 2008)
Marketers are hiring more talent and spending more money than ever to chase multicultural consumers, yet they are divided on how to reach them -- and unsure they're getting good returns on their investments. While 84% of the marketers believe multicultural marketing is "critical to my business," almost 40% said they don't know the financial value of multicultural groups to their companies, according to a study for executive search firm Heidrick & Struggles by Brandiosity.
They also had a variety of opinions on which agencies to hire to reach the Hispanic, African-American and Asian groups. Of the 60 companies that were surveyed on which shops they use for multicultural-marketing services, 58% said they tap general-market-research firms; 51% said they use multicultural agencies; 42% use general-market agencies; and 35% use multicultural-research firms. 'Same stuff' as 20 years agoIn fact the overall picture painted by the survey suggests there's still a good deal of confusion about the multicultural market.
Pepper Miller, president of Miller Hunter Group, a market-research and planning group in Chicago, said marketers really don't understand it any better than they did 20 years ago. "I entered the business in 1985. The other day I found a paper I wrote back then, and I read it and I thought, 'Man, this is the same stuff we're saying now!'" More than two-thirds of the respondents were chief marketing officers or senior VPs of marketing. Another 14% were VPs, managers or directors. They represented a wide variety of industries including retail, consumer package goods, telecom, financial services, fast food and apparel. Carla Palazio, partner at Heidrick & Struggles, said the recruiting firm commissioned the study to discover what companies need -- particularly what sort of talent they're looking for -- to target multicultural segments, specifically through the eyes of the CMO.
What it found was a disconnect: Multicultural marketing is perceived as very important -- but there are still a lot of companies that lack a real companywide strategy to address it. "The root of this is the lack of awareness at the organization. While the CMO understands it well, they almost have to evangelize [the value of multicultural marketing] to the rest of the company," Ms. Palazio said. Indeed, among the 20 biggest challenges executives expressed, almost half could be categorized as problems proving merit inside the company. They listed roadblocks such as "explaining to management their importance," "getting buy-in and support from company leadership," and "getting senior level marketers to understand that the world is changing." Mike Fasulo, CMO of Sony Electronics, said he has experienced some of the disparities the study uncovered. "I can respect some of those statistics, because it took us two years before we went to market because we wanted it to be comprehensive and sincere."
Mr. Fasulo's group made multicultural marketing a priority about three years ago and today has an internal team dedicated to it, as well an outside multicultural agency, research and insight initiatives, and retail partnerships. Undervalued worthHowever, he was surprised that more companies didn't know the financial worth of multicultural segments, because the data are there. In electronics, for example, he said many product categories overindex for multicultural groups vs. the general population, including flat-panel TVs, satellite radio and video gaming. And though the economy has slowed, both disposable income and growth of multicultural segments "far exceed" the general market, Mr. Fasulo said. Respondents also were asked which minority segment was most important to their businesses. The majority selected Hispanics first at 65%, followed by African-Americans at 30% and Asians at 24%.
However, the respondents were split over the idea that it "takes a Latino to market to a Latino." Some 35% agreed, while 39% disagreed. "For myself, I believe I've had an easier time," said Alberto J. Ferrer, managing partner at the Vidal Partnership. "But I see many non-Hispanics do well. They tend to be open, willing to listen to the agency, and they don't live in the land of clich�s -- or, as I wrote in one of my blogs, the land of sombreros and maracas." As for using general-market researchers rather than multicultural agencies or researchers, Ms. Miller said: "That is such a big mistake. I'm still so frustrated with general-market research. So much of it is disrespectful, and it's just too vanilla -- and not just for African-Americans but for Latinos and for Asians, too." Lack of structureBut why the disparity between increased efforts and lower perceived effectiveness? One reason may lie within the study, in that 44% of the executives said their companies were not effectively organized to handle multicultural marketing.
So new hires and ad-budget increases become lost or marginalized in a system not structured to handle them. Isaac Mizrahi, director of multicultural marketing at Sprint and one of the survey participants, agreed that the results seem contradictory. "When I see results like this, it makes me wonder what exactly is their definition of multicultural marketing," he said. The findings indicate "there is still a significant amount of education that needs to happen," he said. "There are a lot of preconceived ideas about multicultural markets. And to be honest, it's not an easy area. It takes a lot of time, a lot of insight and research, and truly understanding the marketplace before you even propose something." Ms. Palazio said multicultural marketing will grow when other marketers see the results of companies such as Home Depot, Verizon, Bank of America and ING. "They're already seeing 10% to 12% of revenue coming from this segment," she said. "That's the easiest way for other companies to have a reality check."
Mr. Ferrer said: "There is a bona fide business opportunity here, and if you don't see that, you're not a smart businessperson. It's not about being a bigot; it's about being smart. ... I understand people not doing [multicultural marketing] because of tight budgets or [lack of] company support, but not knowing is just silly."
Survey: Marketers still don't get how to do multicultural marketing
2.26.2008
MWPRInsight: Crisis Situation...What WAS he thinking?
Patterson arrested, charged with marijuana possession
ESPN.com news services
Philadelphia Eagles defensive tackle Mike Patterson is facing drug possession charges after being arrested in the southern New Jersey town where he lives.
According to Philadelphia-area media outlets, Evesham Township, N.J. police said Patterson, 24, was arrested along with his brother early last Saturday, Feb. 16.
Police said they approached a vehicle that had apparently been in a minor accident and smelled what appeared to be burning marijuana coming from the car. According to police, Patterson and his brother, Tyrone Patterson, 28, were inside the car, and police also found a small quantity of marijuana inside the car.
According to media reports, police arrested and charged Mike Patterson with possession of marijuana under 50 grams. He was later released. Tyrone Patterson, who lives with his younger brother, was charged with resisting arrest and later posted bail.
Mike Patterson, whom the Eagles drafted in 2005 from USC, had 67 tackles, including a career-high four sacks, in 2007.
Other related stories:
ESPN - Patterson arrested, charged with marijuana possession - NFL
ESPN.com news services
Philadelphia Eagles defensive tackle Mike Patterson is facing drug possession charges after being arrested in the southern New Jersey town where he lives.
According to Philadelphia-area media outlets, Evesham Township, N.J. police said Patterson, 24, was arrested along with his brother early last Saturday, Feb. 16.
Police said they approached a vehicle that had apparently been in a minor accident and smelled what appeared to be burning marijuana coming from the car. According to police, Patterson and his brother, Tyrone Patterson, 28, were inside the car, and police also found a small quantity of marijuana inside the car.
According to media reports, police arrested and charged Mike Patterson with possession of marijuana under 50 grams. He was later released. Tyrone Patterson, who lives with his younger brother, was charged with resisting arrest and later posted bail.
Mike Patterson, whom the Eagles drafted in 2005 from USC, had 67 tackles, including a career-high four sacks, in 2007.
Other related stories:
ESPN - Patterson arrested, charged with marijuana possession - NFL
2.25.2008
MWPRInsight: Crisis Situation in Sports...AGAIN!
Minnesota tackle McKinnie arrested after street fight
USA Today
MIAMI (AP) — Minnesota Vikings tackle Bryant McKinnie was arrested for aggravated battery after a street brawl outside a nightclub early Sunday.
McKinnie also was charged with disorderly conduct and resisting arrest without violence, according to a police report.
Authorities were called to Club Space after a fight broke out. McKinnie had been thrown out by a nightclub security guard and was arguing and spit on Eric Otero, according to a police report.
Otero, 32, said he wouldn't press charges if McKinnie left. Authorities said the former University of Miami player then went to a nearby strip club, but later returned to Club Space and fought with Otero again.
Miami Police found McKinnie "in the middle of a large crowd, throwing punches and again yelling obscenities," according to the police report.
Police told McKinnie to stop. He refused and boarded a bus. The bus driver was ordered not to drive away.
FIND MORE STORIES IN: Vikings University of Miami Bryant McKinnie Lake Minnetonka Janelle Hall Ben Dogra Club Space
The 6-foot-8, 335-pound McKinnie, a staple on the Vikings' offensive line since being drafted out of Miami in 2002, was arrested and bonded out for $9,000 at 2:25 p.m., Miami-Dade County Corrections Department spokeswoman Janelle Hall said.
Miami Police did not immediately return calls left by The Associated Press.
McKinnie has been in trouble before. The NFL fined him one game check for his role in a rowdy team boat party on Lake Minnetonka in 2005. McKinnie pleaded guilty to misdemeanor disorderly conduct in that incident.
The Vikings released a statement Sunday that said, "We are aware of the situation with Bryant McKinnie. We will respond further once we have collected the appropriate information."A call placed Sunday night to Ben Dogra, McKinnie's agent, wasn't immediately returned.
It is unclear what caused the brawl. Police said McKinnie was transported to the jail with injuries, but the extent was not known.
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Minnesota tackle McKinnie arrested after street fight - USATODAY.com
Helpful Example: Great Exposure
How your ROI becomes greater than your initial investment
MWPRInsight
holy matrimony (http://www.holymatrimonyonline.com/) owner Vicky Johnson has been extremely busy these past few months. In a low cost and creative way, she has strategically showcased her large budget weddings placing the spotlight on her wedding planning firm. And, it has been paying off. Her blog, http://www.dcnearlyweds.com/ is the most popular wedding blog out there and has caught the attention of media, highly recongnized planners and admirers far and wide.
This is an example of how creative marketing doesn't necessarily have to mean expensive budget. Your ROI can indeed be greater than your initial investment.
Checkout the hits:
- Grace Ormonde Wedding Style Platinum List 2008 http://www.weddingstylemagazine.com/
- Washington Express 1/23/08 All for Favors Say Aye Do. http://www.readexpress.com/read_freeride/2008/01/wedding_guide_all_for_favors_say_aye_do.phpThe
- Hill: 2/1/08 Planning a Wedding is not a piece of cake. http://thehill.com/op-eds/planning-a-wedding-is-not-a-piece-of-cake-2008-02-06.html
- DC Nearlyweds named Most Comprehensive Wedding Blog by Wedding Blog Awards.com http://www.weddingblogawards.com/2007/12/dc-nearlyweds-wins-our-most-comprehensive-wedding-blog-award.html
- Style Network's Whose Wedding Is It Anyway? Season 7 Featured Planner Air dates to be announced.
MWPRInsight: The Argument for Sports PR continues
Tide's All-SEC safety Johnson charged with disorderly conduct
Associated Press
Updated: February 23, 2008, 2:49 PM ET
TUSCALOOSA, Ala. -- Alabama safety Rashad Johnson was charged with disorderly conduct for allegedly knocking a security guard down at an off-campus bar early Saturday morning, Tuscaloosa police said.
Johnson was arrested at 2:55 a.m. at the Legacy bar on the strip near Alabama's campus, police spokesman Robert Fourt said in a statement Saturday. The 22-year-old Johnson was released on $500 bond shortly after being booked on the misdemeanor charge.
Officers had spotted a disturbance outside the bar, which was closing, Fourt said. Legacy security personnel were escorting someone from the bar when Johnson allegedly attempted to intervene and pushed one of the security officers, who fell out the door and onto the ground.
Johnson, a first-team All-Southeastern Conference pick, was arrested after a brief struggle, Fourt said. Additional officers from city and university police responded after a large crowd gathered, but no one else was arrested.
A Tuscaloosa officer received a minor abrasion to his knee during the arrest, but did not require medical attention.
Johnson, a former walk-on, led the Crimson Tide with 94 tackles and six interceptions as a junior. He finished in a three-way tie for the SEC lead in interceptions. He was selected a captain by his teammates after the season.
It was the second arrest involving a Tide player in the past week. Defensive lineman Jeremy Elder was charged with two counts of first-degree robbery last Sunday night.
Copyright 2008 by The Associated Press
ESPN - Tide's All-SEC safety Johnson charged with disorderly conduct - College Football
Associated Press
Updated: February 23, 2008, 2:49 PM ET
TUSCALOOSA, Ala. -- Alabama safety Rashad Johnson was charged with disorderly conduct for allegedly knocking a security guard down at an off-campus bar early Saturday morning, Tuscaloosa police said.
Johnson was arrested at 2:55 a.m. at the Legacy bar on the strip near Alabama's campus, police spokesman Robert Fourt said in a statement Saturday. The 22-year-old Johnson was released on $500 bond shortly after being booked on the misdemeanor charge.
Officers had spotted a disturbance outside the bar, which was closing, Fourt said. Legacy security personnel were escorting someone from the bar when Johnson allegedly attempted to intervene and pushed one of the security officers, who fell out the door and onto the ground.
Johnson, a first-team All-Southeastern Conference pick, was arrested after a brief struggle, Fourt said. Additional officers from city and university police responded after a large crowd gathered, but no one else was arrested.
A Tuscaloosa officer received a minor abrasion to his knee during the arrest, but did not require medical attention.
Johnson, a former walk-on, led the Crimson Tide with 94 tackles and six interceptions as a junior. He finished in a three-way tie for the SEC lead in interceptions. He was selected a captain by his teammates after the season.
It was the second arrest involving a Tide player in the past week. Defensive lineman Jeremy Elder was charged with two counts of first-degree robbery last Sunday night.
Copyright 2008 by The Associated Press
ESPN - Tide's All-SEC safety Johnson charged with disorderly conduct - College Football
MWPRInsight: Great PR Move
Ron Artest Gives Back to the Dog World
Posted Feb 22nd 2008 7:20PM
Posted Feb 22nd 2008 7:20PM
Filed under: Casually Obsessed
Last season Ron Artest was in some hot water when he was being investigated for animal cruelty. If you remember, his neighbors in Sac-Town were saying that he was leaving his dog, a Great Dane, out in the yard without food and water for months at a time. Artest was never charged and denied the allegations.
Now the baller is showing love for man's best friend by donating funds to pay for a month of spay and neutering of pit bulls and pit bull mixes. According to the Sacramento Bee, Artest is scheduled to be at the Sacramento Society for the Prevention of Cruelty to Animals on March 11 to greet dog owners as they bring their canines to participate in the organization's pit bull spay-neuter program. Artest's donation will help spay and neuter up to 50 pit bulls.
Take that Ron-Ron haters!
2.20.2008
Helpful Example: Creative branding
Kraft, Ogilvy Pact for Webisodes
Gail Schiller, The Hollywood Reporter
FEBRUARY 20, 2008 - In the first Web series being produced by Kraft, its Tassimo hot beverage system brand has partnered with Ogilvy & Mather's branded entertainment group to create a series of Webisodes titled Who Hired Bob?The comedy series follows the misadventures of Bob, a quirky character in an office setting who obsesses over the little things that have nothing to do with work. Bob loves his Tassimo machine to the point of being fanatic about it.
The initial two Webisodes, which are available for viewing at WhoHiredBob.com, have three acts each, with viewers able to choose between one of two options at the end of Acts I and Acts II as to what happens next to Bob. Each act runs about two minutes for a total of six minutes per Webisode. Viewers can also submit stories of "Bob-like" characters in their own workplaces.
The winning viewer submission will be filmed as the next "Bobisode."The Webisodes were produced by Ogilvy in partnership with writer-producer Jim Biederman. He comes from the Upright Citizens Brigade, the New York-based comedy improv group.The online series is a result of a marketing innovation fund that Kraft instituted to experiment with different forms of marketing. "This new effort is a great way for us to tap into the growing consumer interest in entertaining online content while testing its effectiveness as a direct marketing tool," said Lori Acker, director of marketing for Tassimo."
Creating original, entertaining content gives Tassimo both cultural currency and permission for further conversations with consumers," said Joseph Frydl, director of Ogilvy's branded content and entertainment group. "Purely interruptive marketing simply cannot accomplish that."He said each episode has a "Tassimo moment," a sort of wink to the camera acknowledging to the audience that the Webisodes are a marketing tool. "We're not going to pretend this isn't marketing, but we're going to have some fun with it along the way, and that's really the spirit of how we handled the integration.
"To market the series, Tassimo and Ogilvy created a 30-second trailer and bought media on Google's AdSense network. Frydl said he expects 70 million impressions during the course of a month on financial, travel, food and special interest sites. He also expects word of mouth, YouTube and other video-based sites to help get the word out.
Kraft, Ogilvy Pact for Webisodes
MWPRInsight: Crisis Situation (Yet another example of the need for real PR counsel)
Jerome Mathis Allegedly Chokes Pregnant Girlfriend
Posted Feb 19th 2008 4:31PM by Cheryl Thompson
Filed under: Casually Obsessed
Jerome Mathis is a professional football player and I'm sure some ladies would sell their souls to get a chance to lick his sweat ... but I'm also pretty convinced this is not the way for the Texans receiver/kickoff returner to score in the love department: He's been charged with assault for allegedly choking his pregnant girlfriend. Yep ... that's not sexy:
Posted Feb 19th 2008 4:31PM by Cheryl Thompson
Filed under: Casually Obsessed
Jerome Mathis is a professional football player and I'm sure some ladies would sell their souls to get a chance to lick his sweat ... but I'm also pretty convinced this is not the way for the Texans receiver/kickoff returner to score in the love department: He's been charged with assault for allegedly choking his pregnant girlfriend. Yep ... that's not sexy:
"She reported that [Mathis] came home verbally aggressive toward her and left the residence, then came back a few minutes later demanding his car [cell phone] charger," [Patrol Capt. Richard] Foreman said. "He became angry while he looked for the charger, and when she gave it to him, he pushed her down on the bed and began choking her while putting all of his body weight on her."
Um, can you say anger management? Imagine what would've happened if he had lost the actual cell phone. This isn't the Texan's first run-in with the law. (Really? You don't say!) Before last season, he stated that he was maturing, but after a citation in December for letting his pit bull loose to terrorize his neighborhood (and it happened again in January), plus this recent choking incident ... I'll blindly bet he failed that maturity initiative. Just a hunch.
Um, can you say anger management? Imagine what would've happened if he had lost the actual cell phone. This isn't the Texan's first run-in with the law. (Really? You don't say!) Before last season, he stated that he was maturing, but after a citation in December for letting his pit bull loose to terrorize his neighborhood (and it happened again in January), plus this recent choking incident ... I'll blindly bet he failed that maturity initiative. Just a hunch.
Other related stories
Jerome Mathis Allegedly Chokes Pregnant Girlfriend - Black Voices Blogs
Jerome Mathis Allegedly Chokes Pregnant Girlfriend - Black Voices Blogs
2.18.2008
MWPRInsight: Crisis Situation (Commissioner Goodell's handling of recent situations are negatively affecting the NFL brand)
Reports: Urbanski's wife says Goodell reneged on promise of financial help
ESPN.com news services
ESPN.com news services
Kathy Urbanski, whose husband, Tommy, was paralyzed in a melee at a Las Vegas nightclub that involved now-suspended Tennessee Titans cornerback Adam "Pacman" Jones, said NFL commissioner Roger Goodell promised to help the family pay its mounting medical expenses, according to published reports.
She now says Goodell has reneged on his offer.
"Roger Goodell told me, 'You don't have to call us. We'll get in touch with you,'" Kathy Urbanski told the New York Daily News for a story published Sunday. "Now I realize he meant, 'Don't call us, we'll call you.'"
The Urbanskis' plight also was reported by the Las Vegas Review-Journal in recent weeks.
Tommy Urbanski was one of three people wounded in the shooting outside the Minxx Gentleman's Club. He still has a bullet in his spine from the Feb. 19, 2007, incident, which occurred during NBA All-Star Weekend.
Tommy Urbanski was one of three people wounded in the shooting outside the Minxx Gentleman's Club. He still has a bullet in his spine from the Feb. 19, 2007, incident, which occurred during NBA All-Star Weekend.
Kathy Urbanski told the Daily News she and her husband received two calls from the league about its desire to offer financial help, but when the Urbanskis called back, they received no response.
Prior to Super Bowl XLII, Goodell addressed the Urbanskis' difficulties. "I'm sorry about the tragedy the family is going through, but I don't feel we have any responsibility," Goodell said.
Goodell added that Kathy Urbanski agreed with him during their discussion, but Urbanski later disputed the commissioner's recollection of their conversation.
Goodell added that Kathy Urbanski agreed with him during their discussion, but Urbanski later disputed the commissioner's recollection of their conversation.
"This is a David-and-Goliath situation, with working people against a very greedy and evil corporation called the NFL," she told the Daily News. With a civil lawsuit filed by the Urbanski family pending, Clark County District Court Judge Jessie Walsh is due to hear arguments Wednesday on the NFL's claim that Nevada courts lack the reach to hold the league responsible in the wounding of Tommy Urbanski.
Previously, the Nevada court ruled the Titans held no legal responsibility for Jones' actions that night. The Urbanskis are challenging that decision.
Jones pleaded no contest Dec. 6, 2007, to a reduced charge of conspiracy to commit disorderly conduct, a gross misdemeanor, in regards to his actions in the brawl inside the Las Vegas club.
No one has been charged with the shooting outside, and Jones' lawyer, Robert Langford, has declined to say if Jones knows the identity of the gunman.
No one has been charged with the shooting outside, and Jones' lawyer, Robert Langford, has declined to say if Jones knows the identity of the gunman.
The Associated Press contributed to this report.
2.14.2008
Helpful Tools: Hard times spreading just like the flu
Ad drop prompts Tribune cutbacks
As many as 500 jobs targeted by company
By Phil Rosenthal Tribune media columnist
February 14, 2008
Stressing he still believes Tribune Co. cannot cut its way to prosperity but citing the impact of "a weak economy and significant declines in advertising volume at our newspapers," Chairman and Chief Executive Sam Zell announced cutbacks at the flagship Chicago Tribune and its sister papers Wednesday.
Between those and previously reported reductions at Tribune Co.'s corporate offices, sources said these cuts were likely to eliminate at least 400 to 500 positions companywide, or about 2 percent of its workforce. Zell said Tribune Co.'s broadcasting and interactive divisions, both of which have new leadership as of this week, remain under examination.Chicago Tribune Publisher Scott Smith told staff that the paper looks to eliminate about 100 jobs in nearly all areas, or about 3.5 percent of its roster, by the end of March through buyouts, layoffs, attrition and closing open positions.
"It was a rough year last year, but I would say business got a whole lot tougher at year end and so far this year," Smith said in an interview. "If we thought it was a one- or two-month blip in business conditions, we would make sure we weren't overreacting. But there are no signs of near-term improvement in business. That's why we made the decisions now."Zell, who led the $8.2 billion transaction that took Tribune Co. private late last year, wrote to staff that these reductions were necessary because of "the reality of our significant debt levels and financial covenant obligations." He expected most of the affected positions will be in support-service areas, such as finance, human resources and technology."I can't turn this ship from its course of the past 10 years within just a few months," Zell said in his memo. "Further, while I will do everything in my power to drive, pull and drag this company forward, I can't promise we won't see additional position eliminations in the future if we continue at our current rate of cash-flow decline. But, make no mistake. This is not my ultimate strategy."It will be up to the management of individual Tribune Co. papers how reductions are achieved. The Los Angeles Times aims to cut 100 to 150 jobs, including 40 to 50 in the newsroom, while the Baltimore Sun and Hartford Courant each look to get rid of 45 jobs. A source said New York's Newsday intends to eliminate 70 to 80 jobs.The effect on Tribune Co. papers in Florida (Orlando Sentinel and South Florida Sun-Sentinel), Pennsylvania (The Morning Call) and Virginia (Daily Press) was not immediately known.
The Daily Press last month said it was eliminating 14 positions after reducing its staff by close to 100 in recent years.Smith said total revenue for the Chicago Tribune Media Group was down 5 percent in January, and ad revenue was down double digits, continuing a trend from last year, while cash flow decreased beyond the 8 percent drop recorded in 2007.An incentive for employees to volunteer for buyouts is the indication the company will reduce its severance packages next year, but not everyone who volunteers for a buyout will be accepted. Exit packages, voluntary or not, will be paid through the overfunded part of Tribune Co. employees' cash-balance pension plan, which the company estimates has $300 million more than it needs.----------
philrosenthal@tribune.com
As many as 500 jobs targeted by company
By Phil Rosenthal Tribune media columnist
February 14, 2008
Stressing he still believes Tribune Co. cannot cut its way to prosperity but citing the impact of "a weak economy and significant declines in advertising volume at our newspapers," Chairman and Chief Executive Sam Zell announced cutbacks at the flagship Chicago Tribune and its sister papers Wednesday.
Between those and previously reported reductions at Tribune Co.'s corporate offices, sources said these cuts were likely to eliminate at least 400 to 500 positions companywide, or about 2 percent of its workforce. Zell said Tribune Co.'s broadcasting and interactive divisions, both of which have new leadership as of this week, remain under examination.Chicago Tribune Publisher Scott Smith told staff that the paper looks to eliminate about 100 jobs in nearly all areas, or about 3.5 percent of its roster, by the end of March through buyouts, layoffs, attrition and closing open positions.
"It was a rough year last year, but I would say business got a whole lot tougher at year end and so far this year," Smith said in an interview. "If we thought it was a one- or two-month blip in business conditions, we would make sure we weren't overreacting. But there are no signs of near-term improvement in business. That's why we made the decisions now."Zell, who led the $8.2 billion transaction that took Tribune Co. private late last year, wrote to staff that these reductions were necessary because of "the reality of our significant debt levels and financial covenant obligations." He expected most of the affected positions will be in support-service areas, such as finance, human resources and technology."I can't turn this ship from its course of the past 10 years within just a few months," Zell said in his memo. "Further, while I will do everything in my power to drive, pull and drag this company forward, I can't promise we won't see additional position eliminations in the future if we continue at our current rate of cash-flow decline. But, make no mistake. This is not my ultimate strategy."It will be up to the management of individual Tribune Co. papers how reductions are achieved. The Los Angeles Times aims to cut 100 to 150 jobs, including 40 to 50 in the newsroom, while the Baltimore Sun and Hartford Courant each look to get rid of 45 jobs. A source said New York's Newsday intends to eliminate 70 to 80 jobs.The effect on Tribune Co. papers in Florida (Orlando Sentinel and South Florida Sun-Sentinel), Pennsylvania (The Morning Call) and Virginia (Daily Press) was not immediately known.
The Daily Press last month said it was eliminating 14 positions after reducing its staff by close to 100 in recent years.Smith said total revenue for the Chicago Tribune Media Group was down 5 percent in January, and ad revenue was down double digits, continuing a trend from last year, while cash flow decreased beyond the 8 percent drop recorded in 2007.An incentive for employees to volunteer for buyouts is the indication the company will reduce its severance packages next year, but not everyone who volunteers for a buyout will be accepted. Exit packages, voluntary or not, will be paid through the overfunded part of Tribune Co. employees' cash-balance pension plan, which the company estimates has $300 million more than it needs.----------
philrosenthal@tribune.com
2.13.2008
MWPRInsight: The "Business" of Sports is in real need of some PR
Clemens says Pettitte 'misremembered' him; McNamee grilledESPN.com news services
WASHINGTON -- Separated by only a few feet, Roger Clemens and his accuser were never further apart.
There they sat, the star pitcher and his former personal trainer, Brian McNamee, sharing a wooden witness table Wednesday while speaking to Congress under oath and facing blistering questions. For 4½ hours, both men stuck to their versions of the he-said, he-said disagreement over whether McNamee injected Clemens with steroids and human growth hormone.
Clemens insisted it never happened. McNamee insisted it did.
His reputation and Hall of Fame candidacy potentially at stake -- not to mention the possibility of criminal charges, should he lie -- Clemens said: "I have never taken steroids or HGH. No matter what we discuss here today, I am never going to have my name restored."
For some members of the House Committee on Oversight and Government Reform, Clemens' denials rang hollow, particularly in light of a new account of his discussion of HGH use, revealed by his friend and former teammate Andy Pettitte in a sworn affidavit.
"It's hard to believe you, sir," Rep. Elijah Cummings, D-Md., told Clemens. "I hate to say that. You're one of my heroes. But it's hard to believe."
Clemens and McNamee by all accounts once good friends, rarely looked at one another. Seated between them was a third witness, Charles Scheeler, a lawyer who helped compile the report on drug use in baseball headed by former Senate majority leader George Mitchell.
Occasionally, Clemens stuck out his famous right arm -- the one that earned 354 major league wins, seven Cy Young Awards and $160 million -- to jab a finger in McNamee's direction. Even when the pitcher gestured, though, he stared straight ahead. Just like the Rocket's mound glare.
"I have strong disagreements with what this man says about me," Clemens intoned.
Just like their stories, Clemens' Texas drawl was in strong contrast to the clipped cadences of McNamee, a former New York police officer.
"I told the investigators I injected three people -- two of whom I know confirmed my account," McNamee said. "The third is sitting at this table."
Ultimately, the matter could wind up with the Justice Department if prosecutors believe either man made false statements. The Justice Department is also reviewing used needles and bloody gauze pads McNamee turned over. He said they contained performance-enhancing drugs and Clemens' DNA.
"We found conflicts and inconsistencies in Mr. Clemens' accounts," said Rep. Henry Waxman, D-Calif., the committee's chairman. "During his deposition, he made statements we know are untrue."
McNamee was asked about why he saved what he claims to be physical evidence connecting Clements to steroid use, including bloodied gauze and used medical needles.
In 2005, a source associated with McNamee told ESPN The Magazine's Shaun Assael that McNamee saved a blood sample from Clemens that would show steroid use. The sample was never shown to Assael.
Waxman said afterward he hadn't "reached any conclusions" as to whether a criminal investigation is warranted, although several congressmen said a referral from the committee isn't needed to trigger one. As ranking Republican Tom Davis of Virginia, put it: "Both can't be telling the truth."
In addition, ABC News reported that at least six FBI agents were in attendance at the hearing. While the Department of Justice will wait to see if the committee refers the matter for investigation, the agency can also open a probe on its own without a referral.
Bonds, baseball's home run king, was indicted in November on charges of perjury and obstruction of justice stemming from his 2003 testimony to a grand jury in which he denied knowingly using performance-enhancing drugs. Because of his denials under oath, Clemens could be subjected to a similar criminal probe.
The session, held on the same day pitchers and catchers started reporting for spring training in Florida and Arizona, came exactly two months following the release of the Mitchell report.
That investigation was prompted by another hearing on steroids held by the same committee in the same wood-paneled room, on March 17, 2005. That is best remembered for having tarnished the reputations of Mark McGwire -- who infamously repeated, "I'm not here to talk about the past" -- and Rafael Palmeiro -- who wagged his finger and declared he never had used steroids, then failed a drug test months later.
In a reference to that day, Rep. Mark Souder, R-Ind., cautioned Clemens and McNamee: "It's better not to talk about the past than to lie about the past."
Wednesday's hearing, which Waxman indicated would be his committee's last on the subject, was prompted by Clemens' various and vigorous denials of what McNamee told Mitchell. The Mitchell report was the first public accounting of McNamee's allegations that he injected Clemens with HGH and steroids 16 to 21 times from 1998 to 2001. McNamee said Wednesday he now thinks those numbers are too low.
"They don't disagree on a phone call or one meeting," Waxman said. "If Mr. McNamee is lying, he has acted inexcusably and he has made Mr. Clemens an innocent victim. If Mr. Clemens isn't telling the truth, then he is acting shamefully and has smeared Mr. McNamee. I don't think there is anything in between."
Waxman said he considered calling off the hearing, but said he was persuaded to go forth by Clemens' lawyers, an account they disputed. He also accused Clemens of possibly trying to influence statements to the committee by the pitcher's former nanny.
Congressmen noted that Pettitte and another former Yankees teammate of Clemens, Chuck Knoblauch, both acknowledged that McNamee was correct when he said they used performance enhancers.
At times, Clemens struggled to find the right words as he was pressed by lawmakers. Clemens said Pettitte "misremembers" things. He mispronounced McNamee's name at one point. Toward the end, Clemens raised his voice to interrupt Waxman's closing remarks. The chairman pounded his gavel and said, "Excuse me, but this is not your time to argue with me."
It seemed clear early the committee would not treat Clemens with kid gloves, despite face-to-face meetings he did with representatives in recent days -- sometimes posing for photos or signing autographs for staff members.
There was one wide-eyed fan moment, when Rep. William Clay, D-Mo., relayed to Clemens that a colleague "wants to know what uniform will you wear into the Hall of Fame?"
Eventually, the committee split largely along party lines, with the Democrats reserving their most pointed queries for Clemens, and the Republicans giving McNamee a rougher time.
"You're here under oath, and yet we have lie after lie after lie after lie," Rep. Dan Burton, R-Ind., told McNamee.
Rep. Christopher Shays, R-Conn., repeatedly called McNamee a "drug dealer."
One of McNamee's lawyers, Earl Ward, called it a "public flogging."
When it was over, Clemens shook hands with Davis, then left through a back door.
Clemens later briefly told reporters: "I'm very thankful and very grateful for this day to come. I'm glad for the opportunity finally. And, you know, I hope I get -- and I know I will have -- the opportunity to come here to Washington again under different terms."
His wife, Debbie, sat behind him and listened as Waxman implicated her in HGH use, citing statements by Pettitte. Clemens testified his wife took HGH once, although according to the transcript of last week's sworn deposition, Clemens told committee lawyers he didn't know of family members taking HGH.
IRS Special Agent Jeff Novitzky, a key member of the team prosecuting Barry Bonds, watched from a second-row seat. Bonds, baseball's home run king, was indicted in November on charges of perjury and obstruction of justice stemming from his 2003 testimony to a grand jury in which he denied knowingly using performance-enhancing drugs.
Pettitte, who was excused from testifying, said in a statement to the committee that Clemens told him nearly 10 years ago that he used HGH. Waxman read from affidavits by Pettitte and his wife, Laura, supporting the accusations.
"Andy Pettitte is my friend. He was my friend before this. He will be my friend after this and again. I think Andy has misheard," Clemens said. "I think he misremembers."
In his deposition, Pettitte also said that in 2003 or 2004, McNamee told him Clemens had used steroids. Committee lawyers asked Pettitte how he decided what to say, given that he was caught between conflicting accounts from two friends.
"I have to live with myself. And one day, I have to give an account to God -- and not to nobody else -- of what I've done in my life," Pettitte replied. "And that's why I've said and shared the stuff with y'all that I've shared with y'all today -- that I wouldn't like to share with y'all."
Portions of that transcript and others were shown on flat-panel TVs on walls in the room. It was jarring in black and white.
The Associated Press contributed to this report.
MWPRInsight: Example of Crisis PR being needed
Goodell: Destroying Spygate tapes was 'right thing to do'
Associated Press
WASHINGTON -- Bill Belichick has been illegally taping opponents' defensive signals since he became the New England Patriots' coach in 2000, according to Sen. Arlen Specter, who said NFL commissioner Roger Goodell told him that during a meeting Wednesday.
"There was confirmation that there has been taping since 2000, when Coach Belichick took over," Specter said.
Specter said Goodell gave him that information during the 1-hour, 40-minute meeting, which was requested by Specter so the commissioner could explain his reasons for destroying the Spygate tapes and notes.
"There were a great many questions answered by Commissioner Goodell," Specter, the senior Republican on the Senate Judiciary Committee, told reporters after the meeting. "I found a lot of questions unanswerable because of the tapes and notes had been destroyed."
Goodell said Belichick told him he believed the taping was legal; Goodell said he did not concur.
"He said that's always been his interpretation since he's been the head coach," the commissioner said.
"We are going to agree to disagree on the facts."
Specter, from Pennsylvania, wants to talk to other league officials about what exactly was taped and which games may have been compromised.
"We have a right to have honest football games," he said.
Goodell noted that "we were the ones that disclosed" the Patriots' illegal taping of the New York Jets' defensive signals in Week 1 of last season. Further, Goodell said, they had an admission by Belichick.
"I have nothing to hide," Goodell said.
Goodell also told Specter that that he doesn't regret destroying the Spygate tapes or the notes.
"I think it was the right thing to do," Goodell said.
Still, Specter wants to know why penalties were imposed on Belichick before the full extent of the wrongdoing was known and the tapes destroyed in a two-week span. Asked if he thinks there was a coverup, Specter demurred.
"There was an enormous amount of haste," Specter said.
He scoffed at the reasons Goodell gave for destroying the tapes and notes, particularly about trying to keep them out of competitors' hands and because Belichick had admitted to the taping.
"What's that got to do with it? There's an admission of guilt, you preserve the evidence," Specter said. As for keeping the tapes out of the hands of others: "All you have to do is lock up the tapes."
Belichick was fined $500,000 and the team was fined $250,000 because of the Spygate incident. The Patriots also forfeited a first-round draft pick. Specter has questioned the quality of the NFL's investigation into the matter and raised the possibility of congressional hearings if he wasn't satisfied with Goodell's answers. Specter also raised the threat of Congress canceling the league's antitrust exemption and reiterated that in the meeting with Goodell. Goodell also said he has not heard from Matt Walsh, the former Patriots employee who performed some videotaping duties for the team.
Walsh told The Associated Press last week during the Pro Bowl in Hawaii that he couldn't talk about allegations that he taped a walkthrough practice by the St. Louis Rams before the 2002 Super Bowl. New England, a two-touchdown underdog, won that game 20-17.
Goodell said he has offered Walsh a deal whereby "he has to tell the truth and he has to return anything he took improperly" in return for indemnity. Specter said he, too, wanted to talk to Walsh and perhaps offer a different deal.
Goodell also said he reserves the right to reopen the investigation if more information is uncovered.
ESPN - Goodell: Destroying Spygate tapes was 'right thing to do' - NFL
Copyright 2008 by The Associated Press
Associated Press
WASHINGTON -- Bill Belichick has been illegally taping opponents' defensive signals since he became the New England Patriots' coach in 2000, according to Sen. Arlen Specter, who said NFL commissioner Roger Goodell told him that during a meeting Wednesday.
"There was confirmation that there has been taping since 2000, when Coach Belichick took over," Specter said.
Specter said Goodell gave him that information during the 1-hour, 40-minute meeting, which was requested by Specter so the commissioner could explain his reasons for destroying the Spygate tapes and notes.
"There were a great many questions answered by Commissioner Goodell," Specter, the senior Republican on the Senate Judiciary Committee, told reporters after the meeting. "I found a lot of questions unanswerable because of the tapes and notes had been destroyed."
Goodell said Belichick told him he believed the taping was legal; Goodell said he did not concur.
"He said that's always been his interpretation since he's been the head coach," the commissioner said.
"We are going to agree to disagree on the facts."
Specter, from Pennsylvania, wants to talk to other league officials about what exactly was taped and which games may have been compromised.
"We have a right to have honest football games," he said.
Goodell noted that "we were the ones that disclosed" the Patriots' illegal taping of the New York Jets' defensive signals in Week 1 of last season. Further, Goodell said, they had an admission by Belichick.
"I have nothing to hide," Goodell said.
Goodell also told Specter that that he doesn't regret destroying the Spygate tapes or the notes.
"I think it was the right thing to do," Goodell said.
Still, Specter wants to know why penalties were imposed on Belichick before the full extent of the wrongdoing was known and the tapes destroyed in a two-week span. Asked if he thinks there was a coverup, Specter demurred.
"There was an enormous amount of haste," Specter said.
He scoffed at the reasons Goodell gave for destroying the tapes and notes, particularly about trying to keep them out of competitors' hands and because Belichick had admitted to the taping.
"What's that got to do with it? There's an admission of guilt, you preserve the evidence," Specter said. As for keeping the tapes out of the hands of others: "All you have to do is lock up the tapes."
Belichick was fined $500,000 and the team was fined $250,000 because of the Spygate incident. The Patriots also forfeited a first-round draft pick. Specter has questioned the quality of the NFL's investigation into the matter and raised the possibility of congressional hearings if he wasn't satisfied with Goodell's answers. Specter also raised the threat of Congress canceling the league's antitrust exemption and reiterated that in the meeting with Goodell. Goodell also said he has not heard from Matt Walsh, the former Patriots employee who performed some videotaping duties for the team.
Walsh told The Associated Press last week during the Pro Bowl in Hawaii that he couldn't talk about allegations that he taped a walkthrough practice by the St. Louis Rams before the 2002 Super Bowl. New England, a two-touchdown underdog, won that game 20-17.
Goodell said he has offered Walsh a deal whereby "he has to tell the truth and he has to return anything he took improperly" in return for indemnity. Specter said he, too, wanted to talk to Walsh and perhaps offer a different deal.
Goodell also said he reserves the right to reopen the investigation if more information is uncovered.
ESPN - Goodell: Destroying Spygate tapes was 'right thing to do' - NFL
Copyright 2008 by The Associated Press
2.12.2008
Helpful Tools: Good PR Tidbit
Lasting Impact: Storytelling Makes Messages Memorable
Posted by PR Blogger Strategic Public Relations on February 9th
PR Tactics editor John Elsasser tapped me to write an article for their latest issue. At more than 800 words, it’s considered blasphemously long for a blog post. But I'm not sure if it’ll be posted online or not so I posted it below. Check out PR Tactics print edition if you prefer the more nostalgic approach to content consumption.
--------We spend countless hours choosing the best message, format and medium to reach our audiences when the most powerful communication device is the one we seem to use the least – storytelling.
Stories make our messages easier to remember and have been used throughout history to help explain concepts more effectively, according to “A Whole New Mind” by Daniel Pink.
Starbucks is built on story. The ubiquitous barista was almost named Pequod Coffee Company after the boat in “Moby Dick.” Starbucks’ founders felt the name would evoke the romance of the high seas.
Posted by PR Blogger Strategic Public Relations on February 9th
PR Tactics editor John Elsasser tapped me to write an article for their latest issue. At more than 800 words, it’s considered blasphemously long for a blog post. But I'm not sure if it’ll be posted online or not so I posted it below. Check out PR Tactics print edition if you prefer the more nostalgic approach to content consumption.
--------We spend countless hours choosing the best message, format and medium to reach our audiences when the most powerful communication device is the one we seem to use the least – storytelling.
Stories make our messages easier to remember and have been used throughout history to help explain concepts more effectively, according to “A Whole New Mind” by Daniel Pink.
Starbucks is built on story. The ubiquitous barista was almost named Pequod Coffee Company after the boat in “Moby Dick.” Starbucks’ founders felt the name would evoke the romance of the high seas.
Thankfully naming consultants were quick to point out that consumers would not stand in line to drink a cup of Pequod. The owners instead settled on Starbuck, the first mate on the Pequod. And today there are more than 13,168 locations in 40 countries worldwide.
A Mix of Fact and EmotionIn "The Elements of Persuasion,"Richard Maxwell and Robert Dickman define a story as “a fact, wrapped in an emotion that compels us to take an action that transforms our world.”
A Mix of Fact and EmotionIn "The Elements of Persuasion,"Richard Maxwell and Robert Dickman define a story as “a fact, wrapped in an emotion that compels us to take an action that transforms our world.”
The use of fact and emotion in a story is critical – particularly in public relations. A message focusing just on emotion can be easily dismissed. At the same time, isolated facts are not remembered easily by an audience. In a world cluttered with messages competing for audience time and attention, stories and our messages require both elements to be effective.
What’s the Story?So how do you write a story? Whether it’s three sentences or three volumes in length, stories need to have a basic structure – a beginning, middle and end.
What’s the Story?So how do you write a story? Whether it’s three sentences or three volumes in length, stories need to have a basic structure – a beginning, middle and end.
An Appetizing Beginning: Every story must quickly grab reader attention with an interesting hook. This whets their appetite and draws them into the story. And while some basic facts should be established, they should be chosen carefully to slowly reveal the story.
The Meaty Middle: Once the reader is engaged, serve up the story’s main course to keep them satisfied. Any initial problems established or assertions made will play out in full.
End with Dessert, Not Desert: Once a reader is engaged, don’t end the story without the best part. An ending brings resolution to the story. Good or bad the ending leaves the reader with distinct feelings and usually a call to action.
Starting with these basic elements, creativity is the only limit to how you tell your story. And there are some ways to help make storytelling second nature.
Learn by DoingTelling your own story is great practice for doing it on the job. StoryCorps is an organization that encourages you to tell your story. Considered to be the largest oral history project of its kind, StoryCorps transports sound booths across the country with the goal of recording people’s stories in an audio format. Some of the stories are rebroadcast on NPR and all of them wind up in the Library of Congress.
Stories (Don’t) Write ThemselvesImages, audio and video are easier than ever to create and can easily be added to a story to increase audience engagement. But be selective and creative about using these elements to enhance a story.
Before you give an executive some screen time or add a grip and grin photo of the company founder shaking hands with the CEO, ask the question – “does it improve the message?” If audio/visual elements don’t make a message easier to understand, and more memorable, they distract the audience. Even worse, you’re wasting everyone’s time.
Less is MoreWhile images, audio and video can enhance your story; an effective story relies on top-notch writing. Writing more frequently helps improve skills; writing with fewer words makes the end result more efficient and effective.
There are several unconventional online approaches to whittling down the word count. One Word posts one word each day and gives you 60 seconds to write about it. The photo sharing site Flickr is home to The Six Word Story Group where members submit photos with captions no longer than six words. The end result must tell a story.
Make a (Power) Point Anyone still skeptical about the power of storytelling in business should visit SlideShare. The site is YouTube for PowerPoint presentations and it serves up endless examples of good (and really bad) approaches to storytelling through the de facto software for business presentations. As an example, SlideShare has more than 400 presentations on storytelling alone and the site will inspire your use of PowerPoint.
Taking these steps will make storytelling second nature. And as we are continually challenged to gain the attention of time-starved audiences, this proven device will help us meet this challenge.
In the case of Starbucks, the story of its naming is part of the foundation on which the coffee company has built its success. Not bad for a cup of Pequod.
The Meaty Middle: Once the reader is engaged, serve up the story’s main course to keep them satisfied. Any initial problems established or assertions made will play out in full.
End with Dessert, Not Desert: Once a reader is engaged, don’t end the story without the best part. An ending brings resolution to the story. Good or bad the ending leaves the reader with distinct feelings and usually a call to action.
Starting with these basic elements, creativity is the only limit to how you tell your story. And there are some ways to help make storytelling second nature.
Learn by DoingTelling your own story is great practice for doing it on the job. StoryCorps is an organization that encourages you to tell your story. Considered to be the largest oral history project of its kind, StoryCorps transports sound booths across the country with the goal of recording people’s stories in an audio format. Some of the stories are rebroadcast on NPR and all of them wind up in the Library of Congress.
Stories (Don’t) Write ThemselvesImages, audio and video are easier than ever to create and can easily be added to a story to increase audience engagement. But be selective and creative about using these elements to enhance a story.
Before you give an executive some screen time or add a grip and grin photo of the company founder shaking hands with the CEO, ask the question – “does it improve the message?” If audio/visual elements don’t make a message easier to understand, and more memorable, they distract the audience. Even worse, you’re wasting everyone’s time.
Less is MoreWhile images, audio and video can enhance your story; an effective story relies on top-notch writing. Writing more frequently helps improve skills; writing with fewer words makes the end result more efficient and effective.
There are several unconventional online approaches to whittling down the word count. One Word posts one word each day and gives you 60 seconds to write about it. The photo sharing site Flickr is home to The Six Word Story Group where members submit photos with captions no longer than six words. The end result must tell a story.
Make a (Power) Point Anyone still skeptical about the power of storytelling in business should visit SlideShare. The site is YouTube for PowerPoint presentations and it serves up endless examples of good (and really bad) approaches to storytelling through the de facto software for business presentations. As an example, SlideShare has more than 400 presentations on storytelling alone and the site will inspire your use of PowerPoint.
Taking these steps will make storytelling second nature. And as we are continually challenged to gain the attention of time-starved audiences, this proven device will help us meet this challenge.
In the case of Starbucks, the story of its naming is part of the foundation on which the coffee company has built its success. Not bad for a cup of Pequod.
2.11.2008
Helpful Tools: Folio Magazine
Publishers Prepare for Recession
Executives to continue investing, emphasize innovation during tough times.
By FOLIO Staff
Publishers are facing a cost crunch and a potential revenue shortfall in 2008, particularly as the economy seems to inch toward recession. American Business Media recently polled some of its members about how they see the economy affecting their business. One was Hanley Wood, one of the hottest b-to-b publishers of the last decade, which is facing a down housing market. “The economy will not be a boost to anyone this year,” CEO Frank Anton told ABM. “Unfortunately, the economy will definitely be sluggish at best and at worst, we will face a recession.”
FOLIO: asked publishing executives around the industry what steps they’re taking, if any, to prepare for a potential recession—where they will invest and where they will scale back, and what products they will turn to for continued growth and what products may bear the brunt of a downturn. Most say they are expecting softness in print while online continues to grow. Following the recession in 2001, publishers claim they learned the hard way about cutting their budgets too much, and that a downturn is the time to reinvest and gain market share while competitors fall back. Whether that will happen remains to be seen.
Below are verbatim responses from publishers representing different aspects of the industry, including large and small, b-to-b and consumer, and city and regional.
NAME: John Koten
TITLE: CEO Mansueto Ventures
RECESSION PLAN: Our plans call for about a 10 percent increase in spending this year. At worst, we will slow the rate of that growth but we will not cut back spending in any of our divisions this year.
We will continue to invest in all areas of our business. We look at our company as a long-term proposition and we can afford to do that because we are not subject to the short-term pressures of public ownership. There’s more opportunity to differentiate ourselves in the marketplace and to offer value to customers right now, when others are cutting back. The Fast Company brand has a lot of momentum right now, so that’s where we will be investing the most.
What we’ve learned from the past is to avoid triggering a downward spiral, where cost cutting exaggerates the negative impact of broader economic forces. If you have to take a hit, take it. But don’t try to pass along all the pain to your customers because your business will pay for it in the end.
NAME: Jeff Lapin
TITLE: President, Farm Progress
RECESSION PLAN: Recessions are transitory but the damage can be permanent if we answer by taking our foot off the gas. It’s important for us to continue to focus on delivering value to our customers and not let up on making targeted investment if we expect our business to deliver solid long-term growth.
NAME: Steve Palm
TITLE: CEO, New Bay Media
RECESSION PLAN: Different segments of our markets are performing differently. Those that are hot will continue, those that are challenged will continue to be challenged. I don’t think it’s any different than 12 months ago.
We’re not holding off on the sales end. We’re continuing to look for good salespeople—with not only print but those with online and integrated sales experience—wherever and whenever we can get them. Where we’re likely to postpone hiring, and we’re not talking about any headcount reduction at this point, are areas where customers don’t feel it—back office, finance, HR, accounting.
We’ll continue to make big investments in the Web as part of planned growth. We have been looking at digital editions in addition to e-newsletters.
NAME: Peggy Walker
TITLE: President and COO, Vance Publishing
RECESSION PLAN: Our fiscal year begins on April 1 so we are in the midst of budgeting right now. We have included a risk factor in our revenue budgets because of economic uncertainty. The factor varies by market segment. For example, some of our products are tied to the housing industry and we’ve accounted for that slowdown. Other markets in which we publish are not as sensitive to the economy such as agriculture where we don’t have a significant risk factor in the budget.
NAME: Christina Grdovic
TITLE: VP and publisher, Food & Wine
RECESSION PLAN: It’s business as usual over here. 2007 was our best ad performance year in our history and the magazine is breaking records at the newsstand. With 2008 being the 30th anniversary of the magazine, we have a lot of exciting things going on. We’re going to continue to invest in our entire brand.
One area of investment of particular focus is our online platform, foodandwine.com. We’re in the process of enhancing the look and feel of this medium while we’re integrating our sales force in a more competitive way. We expect this to be a big growth business for us.
Should advertisers be narrowing their media choices as times get tougher, they will be looking to maximize their buys for the greatest efficiency. Events and platforms such as our Food & Wine Classic in Aspen and Food & Wine Best New Chefs are proven in delivering ROI, so I feel we’re in a very strong place and a clear choice for advertisers and marketers.
NAME: Larry Burstein
TITLE: Publisher, New York
RECESSION PLAN: The interesting thing about us is that we’re a magazine with a very broad ad base. When you hear about different magazine ad sectors—like the auto sector or the beauty sector or the fashion/retail sector—getting hit by the recession, we’re in a position where we can look at the local ad buyers. We’re not dependent on any one category. So the answer to the question of “How are you preparing for a recession?” is we’re not doing anything.
As a weekly magazine with a two week close, it means that ad buyers can make quicker decisions with their money. I suppose conversely they could pull their advertising out quicker (in a recession) but overall I’m happier with a shorter window.
Being in the New York market, there’s a disproportionate amount of (sales opportunities) here, which in a period of economic downturn sometimes take longer to take effect.
NAME: Kerry Gumas
TITLE: President and CEO, Questex Media
RECESSION PLAN: In our case, I would say about 60 percent of our publishing business is serving a marketplace that’s a b-to-b market, but one that’s ultimately consumer demand driven—entertainment, beauty, and travel, for example. So we have a pretty diverse look at the marketplace and my feeling is that so far we’ve been very fortunate because we haven’t seen any significant change in marketers’ plans for 2008 in the sectors that we’re operating in.
We’re still looking at launches--we’ve got a fairly active program. I don’t think we can stop that, I think that’s fundamental now to the business, you have to have some innovation going on. I think you need to be smart about picking the opportunities.
On the acquisition front, we have a pretty active program and we’re going to continue to hold that as part of our strategy going forward. But at this point we’ve been through nine in the last year, so we’ve been pretty busy. I think not so much for economic reasons but for the pace that we were on I do want to slow down and make sure we’re focused on integrating correctly and this is a good time for us to do that.
NAME: Cynthia Good
TITLE: Editor and CEO, Pink
RECESSION PLAN: It will be a challenging time but there will be bright spots of growth. Pink is expanding—I think it’s because it’s a niche and fills a need. We are investing in sales and technology staff. Because of the tight squeeze on the economy, there’s more pressure to bring in revenue and visibility online. With this economy, there’s the same demand for content but it needs to be disseminated in a different way. We are also investing more in strong freelancers. It’s critical to outsource. It’s a way to eliminate risk and be conservative with new ventures.
We are also doing a review of all our numbers, energy and resources. As the owner of a small business, it’s important to pay attention to where every penny is spent. We are not lowering anybody’s salary but there’s pressure to hold down pay raises. I’m frustrated that we can’t give bigger raises. I think writers especially should be paid more.
http://www.foliomag.com/2008/publishers-prepare-recession
Executives to continue investing, emphasize innovation during tough times.
By FOLIO Staff
Publishers are facing a cost crunch and a potential revenue shortfall in 2008, particularly as the economy seems to inch toward recession. American Business Media recently polled some of its members about how they see the economy affecting their business. One was Hanley Wood, one of the hottest b-to-b publishers of the last decade, which is facing a down housing market. “The economy will not be a boost to anyone this year,” CEO Frank Anton told ABM. “Unfortunately, the economy will definitely be sluggish at best and at worst, we will face a recession.”
FOLIO: asked publishing executives around the industry what steps they’re taking, if any, to prepare for a potential recession—where they will invest and where they will scale back, and what products they will turn to for continued growth and what products may bear the brunt of a downturn. Most say they are expecting softness in print while online continues to grow. Following the recession in 2001, publishers claim they learned the hard way about cutting their budgets too much, and that a downturn is the time to reinvest and gain market share while competitors fall back. Whether that will happen remains to be seen.
Below are verbatim responses from publishers representing different aspects of the industry, including large and small, b-to-b and consumer, and city and regional.
NAME: John Koten
TITLE: CEO Mansueto Ventures
RECESSION PLAN: Our plans call for about a 10 percent increase in spending this year. At worst, we will slow the rate of that growth but we will not cut back spending in any of our divisions this year.
We will continue to invest in all areas of our business. We look at our company as a long-term proposition and we can afford to do that because we are not subject to the short-term pressures of public ownership. There’s more opportunity to differentiate ourselves in the marketplace and to offer value to customers right now, when others are cutting back. The Fast Company brand has a lot of momentum right now, so that’s where we will be investing the most.
What we’ve learned from the past is to avoid triggering a downward spiral, where cost cutting exaggerates the negative impact of broader economic forces. If you have to take a hit, take it. But don’t try to pass along all the pain to your customers because your business will pay for it in the end.
NAME: Jeff Lapin
TITLE: President, Farm Progress
RECESSION PLAN: Recessions are transitory but the damage can be permanent if we answer by taking our foot off the gas. It’s important for us to continue to focus on delivering value to our customers and not let up on making targeted investment if we expect our business to deliver solid long-term growth.
NAME: Steve Palm
TITLE: CEO, New Bay Media
RECESSION PLAN: Different segments of our markets are performing differently. Those that are hot will continue, those that are challenged will continue to be challenged. I don’t think it’s any different than 12 months ago.
We’re not holding off on the sales end. We’re continuing to look for good salespeople—with not only print but those with online and integrated sales experience—wherever and whenever we can get them. Where we’re likely to postpone hiring, and we’re not talking about any headcount reduction at this point, are areas where customers don’t feel it—back office, finance, HR, accounting.
We’ll continue to make big investments in the Web as part of planned growth. We have been looking at digital editions in addition to e-newsletters.
NAME: Peggy Walker
TITLE: President and COO, Vance Publishing
RECESSION PLAN: Our fiscal year begins on April 1 so we are in the midst of budgeting right now. We have included a risk factor in our revenue budgets because of economic uncertainty. The factor varies by market segment. For example, some of our products are tied to the housing industry and we’ve accounted for that slowdown. Other markets in which we publish are not as sensitive to the economy such as agriculture where we don’t have a significant risk factor in the budget.
NAME: Christina Grdovic
TITLE: VP and publisher, Food & Wine
RECESSION PLAN: It’s business as usual over here. 2007 was our best ad performance year in our history and the magazine is breaking records at the newsstand. With 2008 being the 30th anniversary of the magazine, we have a lot of exciting things going on. We’re going to continue to invest in our entire brand.
One area of investment of particular focus is our online platform, foodandwine.com. We’re in the process of enhancing the look and feel of this medium while we’re integrating our sales force in a more competitive way. We expect this to be a big growth business for us.
Should advertisers be narrowing their media choices as times get tougher, they will be looking to maximize their buys for the greatest efficiency. Events and platforms such as our Food & Wine Classic in Aspen and Food & Wine Best New Chefs are proven in delivering ROI, so I feel we’re in a very strong place and a clear choice for advertisers and marketers.
NAME: Larry Burstein
TITLE: Publisher, New York
RECESSION PLAN: The interesting thing about us is that we’re a magazine with a very broad ad base. When you hear about different magazine ad sectors—like the auto sector or the beauty sector or the fashion/retail sector—getting hit by the recession, we’re in a position where we can look at the local ad buyers. We’re not dependent on any one category. So the answer to the question of “How are you preparing for a recession?” is we’re not doing anything.
As a weekly magazine with a two week close, it means that ad buyers can make quicker decisions with their money. I suppose conversely they could pull their advertising out quicker (in a recession) but overall I’m happier with a shorter window.
Being in the New York market, there’s a disproportionate amount of (sales opportunities) here, which in a period of economic downturn sometimes take longer to take effect.
NAME: Kerry Gumas
TITLE: President and CEO, Questex Media
RECESSION PLAN: In our case, I would say about 60 percent of our publishing business is serving a marketplace that’s a b-to-b market, but one that’s ultimately consumer demand driven—entertainment, beauty, and travel, for example. So we have a pretty diverse look at the marketplace and my feeling is that so far we’ve been very fortunate because we haven’t seen any significant change in marketers’ plans for 2008 in the sectors that we’re operating in.
We’re still looking at launches--we’ve got a fairly active program. I don’t think we can stop that, I think that’s fundamental now to the business, you have to have some innovation going on. I think you need to be smart about picking the opportunities.
On the acquisition front, we have a pretty active program and we’re going to continue to hold that as part of our strategy going forward. But at this point we’ve been through nine in the last year, so we’ve been pretty busy. I think not so much for economic reasons but for the pace that we were on I do want to slow down and make sure we’re focused on integrating correctly and this is a good time for us to do that.
NAME: Cynthia Good
TITLE: Editor and CEO, Pink
RECESSION PLAN: It will be a challenging time but there will be bright spots of growth. Pink is expanding—I think it’s because it’s a niche and fills a need. We are investing in sales and technology staff. Because of the tight squeeze on the economy, there’s more pressure to bring in revenue and visibility online. With this economy, there’s the same demand for content but it needs to be disseminated in a different way. We are also investing more in strong freelancers. It’s critical to outsource. It’s a way to eliminate risk and be conservative with new ventures.
We are also doing a review of all our numbers, energy and resources. As the owner of a small business, it’s important to pay attention to where every penny is spent. We are not lowering anybody’s salary but there’s pressure to hold down pay raises. I’m frustrated that we can’t give bigger raises. I think writers especially should be paid more.
http://www.foliomag.com/2008/publishers-prepare-recession
2.10.2008
MWPRInsight: A Lesson in Diversity PR
Corporate America -- Don’t Preach Diversity, Practice It
New America Media, News Analysis, Earl Ofari Hutchinson
Posted: Oct 31, 2007
Editor's Note: Stanley O’Neal, forced out of the top job at Merrill Lynch, is the highest ranking casuality of the sub-prime loan fiasco -- even as diversity in corporate America is still an issue.
With the forced retirement of Merrill Lynch CEO E. Stanley O’Neal, the ranks of African-American top gun Fortune 500 company CEOs was sliced from six to five. O’Neal’s fall had nothing to do with race, but rather questionable investments that caused the company’s stock to plunge, and supposedly being a loner type in a corporate culture that thrives on “good old boy” insider networking. But the demise of O’Neal, for whatever reason, still raises fresh questions about how committed many corporations are to making diversity a reality in their boardrooms and in management.
The answer varies widely from corporation to corporation. Fifty companies appear on Fortune Magazine’s list of corporations with the best track record for diversity. Minorities made up almost 21 percent of their boardrooms in 2003, compared with 11 percent two years earlier. The figures almost certainly have edged up even more since then. But for every one of the 50 corporations that makes diversity more than a buzz word, there are dozens more that pat themselves on the back for having one Latino, Asian or African American on their board, or for hiring a handful in lower-level management positions.In recent years, some of America's biggest and best-known corporations that have been widely praised as having a good track record on minority hiring and promotions have been plastered with discrimination lawsuits. Texaco, Coca-Cola, Boeing, Lockheed Martin and Toyota have been thrust into the legal hot seat and have made costly settlements or signed consent decrees with the EEOC.
Forty years after the passage of the 1964 Civil Rights Act that forbade workplace discrimination and Executive Order 11246, signed by Lyndon Johnson in 1965, that prodded firms to promote management diversity, many companies still practice their own subtle brand of workplace apartheid. Despite the well-publicized rise of O’Neal and other black executives at AOL-Time Warner, American Express and Aetna, black CEOs are still a rarity at most of the Fortune 1000 corporations.
The overwhelming majority of senior managers at these companies are white males, and as is evident from the rash of management discrimination lawsuits, women and minority managers are still paid less on average than their white, male counterparts. They are still just as likely to be pigeonholed in departments such as head of “special markets” or “minority affairs.”An embarrassing and highly publicized corporate discrimination case may bring the issue onto the public radar, but then it’s back to business as usual. That business, more often than not, is discrimination. It takes place quietly and far out of public view. The worst offending corporations employ a variety of tactics to mask discrimination. They issue glowing press releases, brochures, assorted handouts and annual stockholder reports loaded with pictures of smiling women and minority employees that tout their commitment to diversity. With much public fanfare, they establish minority and women hiring and training programs.
The refusal of many companies to make diversity the watchword in middle and upper management is bad enough, but even worse is the relentlessly hostile environment that many companies create and maintain toward minorities.Since 1990, the number of complaints of racial harassment toward employees has climbed. Black and Latino employees have been poked with sticks, called racial slurs, have had pictures of burning crosses and white sheets placed near their lockers, have discovered the initials KKK carved on tables and benches, and even found nooses hanging at or near their desks.
Most CEOs are not hypocrites when they say that they work hard to hire and promote more minorities and women. But the degree of real commitment to diversity hinges on the commitment of a corporation’s top CEO and its board. When CEOs implement an outreach program that includes a diversity task force, aggressive recruiters, and a mentoring program aimed at moving talented female and minority employees up the corporate career ladder, diversity will be readily apparent in the company’s hires and promotions.O’Neal’s departure was disappointing, given the still relative paucity of minority and women Fortune 500 CEO leaders. But even if O’Neal had stayed in good grace with Merrill, and had a long shelf life there, the challenge to corporate laggards on diversity wouldn’t change. And that is, don’t just preach it – practice it.
New America Media Associate Editor Earl Ofari Hutchinson is an author and political analyst. His new book is The Latino Challenge to Black America: Towards a Conversation between African-Americans and Hispanics (Middle Passage Press). Corporate America -- Don’t Preach Diversity, Practice It - NAM
New America Media, News Analysis, Earl Ofari Hutchinson
Posted: Oct 31, 2007
Editor's Note: Stanley O’Neal, forced out of the top job at Merrill Lynch, is the highest ranking casuality of the sub-prime loan fiasco -- even as diversity in corporate America is still an issue.
With the forced retirement of Merrill Lynch CEO E. Stanley O’Neal, the ranks of African-American top gun Fortune 500 company CEOs was sliced from six to five. O’Neal’s fall had nothing to do with race, but rather questionable investments that caused the company’s stock to plunge, and supposedly being a loner type in a corporate culture that thrives on “good old boy” insider networking. But the demise of O’Neal, for whatever reason, still raises fresh questions about how committed many corporations are to making diversity a reality in their boardrooms and in management.
The answer varies widely from corporation to corporation. Fifty companies appear on Fortune Magazine’s list of corporations with the best track record for diversity. Minorities made up almost 21 percent of their boardrooms in 2003, compared with 11 percent two years earlier. The figures almost certainly have edged up even more since then. But for every one of the 50 corporations that makes diversity more than a buzz word, there are dozens more that pat themselves on the back for having one Latino, Asian or African American on their board, or for hiring a handful in lower-level management positions.In recent years, some of America's biggest and best-known corporations that have been widely praised as having a good track record on minority hiring and promotions have been plastered with discrimination lawsuits. Texaco, Coca-Cola, Boeing, Lockheed Martin and Toyota have been thrust into the legal hot seat and have made costly settlements or signed consent decrees with the EEOC.
Forty years after the passage of the 1964 Civil Rights Act that forbade workplace discrimination and Executive Order 11246, signed by Lyndon Johnson in 1965, that prodded firms to promote management diversity, many companies still practice their own subtle brand of workplace apartheid. Despite the well-publicized rise of O’Neal and other black executives at AOL-Time Warner, American Express and Aetna, black CEOs are still a rarity at most of the Fortune 1000 corporations.
The overwhelming majority of senior managers at these companies are white males, and as is evident from the rash of management discrimination lawsuits, women and minority managers are still paid less on average than their white, male counterparts. They are still just as likely to be pigeonholed in departments such as head of “special markets” or “minority affairs.”An embarrassing and highly publicized corporate discrimination case may bring the issue onto the public radar, but then it’s back to business as usual. That business, more often than not, is discrimination. It takes place quietly and far out of public view. The worst offending corporations employ a variety of tactics to mask discrimination. They issue glowing press releases, brochures, assorted handouts and annual stockholder reports loaded with pictures of smiling women and minority employees that tout their commitment to diversity. With much public fanfare, they establish minority and women hiring and training programs.
The refusal of many companies to make diversity the watchword in middle and upper management is bad enough, but even worse is the relentlessly hostile environment that many companies create and maintain toward minorities.Since 1990, the number of complaints of racial harassment toward employees has climbed. Black and Latino employees have been poked with sticks, called racial slurs, have had pictures of burning crosses and white sheets placed near their lockers, have discovered the initials KKK carved on tables and benches, and even found nooses hanging at or near their desks.
Most CEOs are not hypocrites when they say that they work hard to hire and promote more minorities and women. But the degree of real commitment to diversity hinges on the commitment of a corporation’s top CEO and its board. When CEOs implement an outreach program that includes a diversity task force, aggressive recruiters, and a mentoring program aimed at moving talented female and minority employees up the corporate career ladder, diversity will be readily apparent in the company’s hires and promotions.O’Neal’s departure was disappointing, given the still relative paucity of minority and women Fortune 500 CEO leaders. But even if O’Neal had stayed in good grace with Merrill, and had a long shelf life there, the challenge to corporate laggards on diversity wouldn’t change. And that is, don’t just preach it – practice it.
New America Media Associate Editor Earl Ofari Hutchinson is an author and political analyst. His new book is The Latino Challenge to Black America: Towards a Conversation between African-Americans and Hispanics (Middle Passage Press). Corporate America -- Don’t Preach Diversity, Practice It - NAM
2.09.2008
MWPRInsight: Example of Why Athletes Need Personal PR
Johnson, Winslow air grievances at Pro Bowl
USA Today
HONOLULU (AP) — Who says the Pro Bowl is all fun and games? Chad Johnson is unhappy about the silence of his teammates and Kellen Winslow is looking for a new contract.
Both are using the Pro Bowl as a forum for their grievances.
Johnson reiterated his unhappiness with the Cincinnati Bengals. The receiver is at his fifth Pro Bowl, after replacing New England's Randy Moss, and he wasn't looking at the surroundings as paradise. "All the voices talked for 16 weeks," Johnson said of Cincinnati's disappointing regular season. "I don't hear them now. Where you at? Now's the time to let it out. The only voice I hear is mine."
While that's not unusual with the loquacious Johnson, he wasn't smiling or joking around after the AFC practice. He was defending his self-promoting manner, although he admitted some of it didn't fit the Bengals' approach.
FIND MORE STORIES IN: Cleveland New England Pro Bowl TDs Johnson Cincinnati Bengals Randy Moss Browns Drew Rosenhaus Kellen Winslow Corona
"Consistently, I've done it," he said of his performances. "I haven't done it perfect, but consistently at a high level. I get out of line at times, but what great one doesn't? What great one doesn't get emotional? Find me a great one who hasn't done it like that and I'll be quiet." If Johnson is trying to orchestrate his exit from Cincinnati, it will be a difficult chore. He has four years remaining on his contract, worth $18.5 million, including a $3 million base for the 2008 season. Also still under contract is Browns tight end Winslow. In fact, Cleveland extended his deal even as Winslow was recuperating in 2005 from a serious motorcycle accident that cost him an entire season. Winslow breached his original six-year, $40 million rookie deal when he violated a "dangerous activities" clause while practicing motorcycle stunts in a parking lot. Although he lost close to $3 million in bonuses from that contract, he got an extension that allowed Winslow to recoup some of the money. He responded with Pro Bowl numbers, including 82 receptions for 1,106 yards and five TDs in 2007. With agent Drew Rosenhaus at his side Thursday, Winslow said he would be seeking a second opinion on his right knee, which might require surgery for the fourth time. Then he mentioned he hoped to get a new deal from the Browns. "I leave it up to Drew," said Winslow, who replaced Antonio Gates of San Diego for the game. "When I got hurt the contract got renegotiated so some things changed. But I think I've proven these past two years that I'm one of the elite tight ends. My value on the field ... they put an extra DB in the game, and that really changes the whole game. They have to guard me kind of like a wide receiver so, you know, yeah, I've got to get that new money."
After the laughter died down, Winslow added:
"This is my life, what I always wanted to do. My career didn't start out like I wanted it to with the injuries and all, and I started asking questions like, 'Why me, why'd I get hurt?' But without the struggle, there is no progress, and this is progress. I stayed positive, worked my butt off, and now I'm here.
USA Today
HONOLULU (AP) — Who says the Pro Bowl is all fun and games? Chad Johnson is unhappy about the silence of his teammates and Kellen Winslow is looking for a new contract.
Both are using the Pro Bowl as a forum for their grievances.
Johnson reiterated his unhappiness with the Cincinnati Bengals. The receiver is at his fifth Pro Bowl, after replacing New England's Randy Moss, and he wasn't looking at the surroundings as paradise. "All the voices talked for 16 weeks," Johnson said of Cincinnati's disappointing regular season. "I don't hear them now. Where you at? Now's the time to let it out. The only voice I hear is mine."
While that's not unusual with the loquacious Johnson, he wasn't smiling or joking around after the AFC practice. He was defending his self-promoting manner, although he admitted some of it didn't fit the Bengals' approach.
FIND MORE STORIES IN: Cleveland New England Pro Bowl TDs Johnson Cincinnati Bengals Randy Moss Browns Drew Rosenhaus Kellen Winslow Corona
"Consistently, I've done it," he said of his performances. "I haven't done it perfect, but consistently at a high level. I get out of line at times, but what great one doesn't? What great one doesn't get emotional? Find me a great one who hasn't done it like that and I'll be quiet." If Johnson is trying to orchestrate his exit from Cincinnati, it will be a difficult chore. He has four years remaining on his contract, worth $18.5 million, including a $3 million base for the 2008 season. Also still under contract is Browns tight end Winslow. In fact, Cleveland extended his deal even as Winslow was recuperating in 2005 from a serious motorcycle accident that cost him an entire season. Winslow breached his original six-year, $40 million rookie deal when he violated a "dangerous activities" clause while practicing motorcycle stunts in a parking lot. Although he lost close to $3 million in bonuses from that contract, he got an extension that allowed Winslow to recoup some of the money. He responded with Pro Bowl numbers, including 82 receptions for 1,106 yards and five TDs in 2007. With agent Drew Rosenhaus at his side Thursday, Winslow said he would be seeking a second opinion on his right knee, which might require surgery for the fourth time. Then he mentioned he hoped to get a new deal from the Browns. "I leave it up to Drew," said Winslow, who replaced Antonio Gates of San Diego for the game. "When I got hurt the contract got renegotiated so some things changed. But I think I've proven these past two years that I'm one of the elite tight ends. My value on the field ... they put an extra DB in the game, and that really changes the whole game. They have to guard me kind of like a wide receiver so, you know, yeah, I've got to get that new money."
After the laughter died down, Winslow added:
"This is my life, what I always wanted to do. My career didn't start out like I wanted it to with the injuries and all, and I started asking questions like, 'Why me, why'd I get hurt?' But without the struggle, there is no progress, and this is progress. I stayed positive, worked my butt off, and now I'm here.
"Anyone would want to be out here. It's like a Corona commercial."
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Johnson, Winslow air grievances at Pro Bowl - USATODAY.com
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Johnson, Winslow air grievances at Pro Bowl - USATODAY.com
MWPRInsight: Great PR
Succession plans cross from business world to NFL
USA Today
INDIANAPOLIS (AP) — Bill Polian spent three decades building NFL winners the old-fashioned way: Relying on good drafts and retaining key players. Now the Colts president believes coaching stability is becoming a larger part of the equation and, apparently, his colleagues in the copycat NFL agree.
Since season's end, Indianapolis and Seattle have each announced they will invoke rarely used coaching succession plans in hopes of keeping their perennial playoff teams Super Bowl contenders. "We've said all along that Jim (Caldwell) was a potential head coach and he's the right fit with this franchise," Polian said of Tony Dungy's eventual successor. "It just made sense to formalize it and proceed so there would be no questions about continuity and no questions about the leadership of this franchise."
The Colts announced their transition on Jan. 21, saying Caldwell had already signed a contract that prevents him from interviewing with other teams even though Dungy has given no indication when he'll leave.
Seattle assistant head coach Jim Mora joined the club Wednesday, signing a five-year contract to become Mike Holmgren's successor after next season. It could happen in Dallas, too, where many believe offensive coordinator Jason Garrett will one day take over for Wade Phillips after recently withdrawing from coaching searches in Atlanta and Baltimore.
While it's a relatively new concept in the NFL, succession plans have become increasingly popular elsewhere. Profitable companies have had hand-chosen replacements in place for years, and it's becoming more common in college sports, too.
Earlier this week, when Bob Knight resigned at Texas Tech, his son, Pat, took over, following the prearranged script. And Florida State announced in December that offensive coordinator Jimbo Fisher will eventually replace Bobby Bowden as the school's football coach.
Florida State interim athletic director Bill Proctor thinks it all makes sense. "For some reason whenever college presidents and football coaches resign, we act like a goose in a new world, like how did this descend upon us," Proctor said, using an expression more fitting of Bowden. "We say, 'Oh gosh, now we must have a national search.'
"I think it's logical to have these plans in place because a lot of times when a legend retires, you go through three or four coaches before you stabilize the program."Purdue athletic director Morgan Burke, who announced last month he would implement a succession plan for football coach Joe Tiller, has already seen the benefits.In 2004, Burke hired Southern Illinois head coach Matt Painter to replace longtime basketball coach Gene Keady, asking Painter to serve one year as Keady's assistant. Since taking over after the 2004-05 season, Painter has re-energized the Boilermakers' recruiting and this season has led Purdue to its most promising campaign in years. Still, Burke acknowledges there are risks.
"I think if you look at traditional searches, you'll find as many failures as you will successes because bringing in personnel is not 100% foolproof," he said. "If you try to force a succession plan on someone who is not ready to retire, it won't work. It will fail."Charles Elson, director of the Weinberg Center for Corporate Governance at the University of Delaware, believes one proven formula works and it sounds like something straight out of a Bill Belichick meeting — identify talented people early, create a strong bench and follow the game plan. So perhaps it's only fitting the sports world would take note.
"There are similarities between sports people and our people who run businesses," Elson said. "And just like a business, you have people who may retire or die or get injured, and if you're going to succeed, you need someone who will be in play." But there are different considerations when it comes to pro sports. While athletic directors typically use successions to help eliminate uncertainties in recruiting — the lifeblood of college success — and corporations use the policy to help pacify concerned stockholders, pro teams believe continuity is becoming a more essential ingredient.
"What (Holmgren's) done here, by announcing his retirement a year ahead of time, has afforded this organization to make a smooth transition, to be seamless, to be non-chaotic," Seahawks president Tim Ruskell said. "Which is kind of rare in the sports world — certainly in the NFL." Most teams believe when coaching staffs remain stable, progression follows naturally.
In the Colts case, that's one reason Polian turned to Peyton Manning's quarterback coach, Caldwell. Plus, Caldwell's soft-spoken, laid-back demeanor looks like a natural fit with a staff virtually devoid of big egos. "I thought it might be a little weird at first, but I think we've all been together so long and there's such a good atmosphere in the building, I think it's going to work," Colts receivers coach Clyde Christensen said. The Rooney Rule, which requires each team to interview at least one minority candidate for a head coaching vacancy, even has a loophole that could lead to more scripted transitions.
Teams can set up successions from their own coaching staff without having to interview other candidates, league spokesman Greg Aiello said. But if the general perception is a team already has a front-runner and tries to interview others, it could become more difficult to abide by the Rooney Rule as Detroit found out in 2003 when it hired Steve Mariucci.
The league fined Lions president Matt Millen $200,000 back then because no minority candidates were interviewed. Black coaches, like Cincinnati's Marvin Lewis, later said they understood why some colleagues weren't interested — because it appeared inevitable Mariucci would get the job. "That's always an issue," said Floyd Keith, executive director of the Black Coaches and Administrators. "I think it's up to the individual person who gets the interview whether they want to take it." The recent trend has, however, opened doors to some minorities.
Depending on when Dungy leaves, Caldwell could become the first black coach in NFL history to succeed a black coach who never had the interim label, and the University of Kentucky announced Jan. 18 that offensive coordinator Joker Phillips, who also is black, would take over when Rich Brooks retires. "Hey, I'm the first guy to jump up and down about Jim Caldwell, and I'm the first guy to jump up and down about Joker Phillips," Keith said. "If a search is followed, we don't have an issue with it. A transition, like those, probably is a good thing as long as the program is successful and it keeps winning."
But even the best-laid plans can go awry. Just ask the New York Jets about their presumed successor to Bill Parcells, Bill Belichick, who bolted for New England after Parcells' retirement. And, of course, there's always a chance the plan could fall apart when a suddenly trendy assistant becomes a household name and other teams try to sweeten the deal with multimillion-dollar offers and more control over football operations. It's one reason Polian does not believe succession plans will become an NFL norm.
"I think you have to have the right person in place, first and foremost," Polian said. Others, however, believe it's the wave of the future, and recent events certainly seem to indicate it could. "I think it's really an asset for Tony to have a right-hand guy working with him and I think it's great he (Caldwell) will have at least a year to get his notes," Christensen said. "I really think more people should do it because I think when you have something good, you should go for it."
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Succession plans cross from business world to NFL - USATODAY.com
2.07.2008
MWPRInsight: Crisis Situation (PR is SO needed)
Jena 6 defendant charged in Texas assault
By Howard Witt
Tribune correspondent
1:14 PM CST, February 7, 2008
chicagotribune.com
HOUSTON
A defendant in the racially-charged Jena 6 case in Louisiana has been arrested for assault after a school fight at the suburban Dallas high school he is now attending, potentially complicating his legal defense in Jena and dispiriting some of his supporters.Bryant Purvis, 19, was arrested Wednesday in Carrollton, Texas, and charged with misdemeanor assault after an altercation with another student at Hebron High School, his attorney, Darrell Hickman, confirmed.
Purvis was released on bail and suspended for three days from the school, where he enrolled as a senior after moving to the area to live with a relative.The fight, which Hickman characterized as a "minor shoving incident," involved a student who Purvis believed had vandalized his car a few days before, the attorney said.But the new arrest could complicate ongoing plea bargain negotiations over the Jena case with LaSalle Parish District Attorney Reed Walters, Hickman said.
Purvis is one of six black defendants Walters initially charged with attempted murder for beating a white student at Jena High School in December 2006, in a fight that capped months of racial tensions in the town. The charges were reduced to aggravated second-degree battery after the Jena case drew criticism from national civil rights leaders, who contended that the justice system in the small town was biased against blacks. More than 20,000 demonstrators marched through Jena last September in support of the Jena 6 defendants and their case was one of several last year that launched what activists regarded as a new civil rights movement.
The first Jena defendant to face trial, Mychal Bell, pleaded guilty in December to a juvenile charge of second-degree battery and received a sentence of 18 months in juvenile detention. Purvis' case is set for trial in late March.The Texas arrest "doesn't help his case in Jena, that's obvious," Hickman said. "From what [Purvis] told me, I can understand him losing his temper. We all lose our temper every now and then. But we're in the process of negotiations with Reed Walters. And what we've been asking for, probably Reed will be less inclined to give it to me now."Purvis' arrest is the latest in a series public embarrassments for the Jena defendants, who last summer attracted the sympathies of more than 300,000 petition signers and donations of more than $500,000 to their legal defense fund.
Purvis and another Jena defendant, Carwin Jones, posed like rap stars at the Black Entertainment Television Hip Hop Awards in October, where they presented a music award and received an ovation from the audience. Jena defendant Robert Bailey Jr. posted pictures of himself on a Myspace page with a wad of $100 bills stuffed in his mouth. And questions arose over the accounting for some of the donated legal funds controlled by the Jena 6 families after they declined to say how they were spending the money."
Jena has not lost anything for our members," said Mervyn Marcano, spokesman for Color of Change, an Internet-based civil rights group of nearly 400,000 members that raised more than $200,000 for the Jena defendants. "It's sort of a pop-culture touchstone of 2007 for a lot of black people."But Marcano said he hoped that Purvis' latest arrest would not detract from the larger issues of equal justice raised by the Jena case."These kids are still juveniles, so I'm not surprised that they will get into scuffles and things of that nature," Marcano said.
"These kids are not supposed to be angels. They are supposed to have equal access to fair treatment from the criminal justice system, and they will continue to be teenagers while we continue to fight for that."
hwitt@tribune.com
Copyright © 2008, Chicago Tribune
By Howard Witt
Tribune correspondent
1:14 PM CST, February 7, 2008
chicagotribune.com
HOUSTON
A defendant in the racially-charged Jena 6 case in Louisiana has been arrested for assault after a school fight at the suburban Dallas high school he is now attending, potentially complicating his legal defense in Jena and dispiriting some of his supporters.Bryant Purvis, 19, was arrested Wednesday in Carrollton, Texas, and charged with misdemeanor assault after an altercation with another student at Hebron High School, his attorney, Darrell Hickman, confirmed.
Purvis was released on bail and suspended for three days from the school, where he enrolled as a senior after moving to the area to live with a relative.The fight, which Hickman characterized as a "minor shoving incident," involved a student who Purvis believed had vandalized his car a few days before, the attorney said.But the new arrest could complicate ongoing plea bargain negotiations over the Jena case with LaSalle Parish District Attorney Reed Walters, Hickman said.
Purvis is one of six black defendants Walters initially charged with attempted murder for beating a white student at Jena High School in December 2006, in a fight that capped months of racial tensions in the town. The charges were reduced to aggravated second-degree battery after the Jena case drew criticism from national civil rights leaders, who contended that the justice system in the small town was biased against blacks. More than 20,000 demonstrators marched through Jena last September in support of the Jena 6 defendants and their case was one of several last year that launched what activists regarded as a new civil rights movement.
The first Jena defendant to face trial, Mychal Bell, pleaded guilty in December to a juvenile charge of second-degree battery and received a sentence of 18 months in juvenile detention. Purvis' case is set for trial in late March.The Texas arrest "doesn't help his case in Jena, that's obvious," Hickman said. "From what [Purvis] told me, I can understand him losing his temper. We all lose our temper every now and then. But we're in the process of negotiations with Reed Walters. And what we've been asking for, probably Reed will be less inclined to give it to me now."Purvis' arrest is the latest in a series public embarrassments for the Jena defendants, who last summer attracted the sympathies of more than 300,000 petition signers and donations of more than $500,000 to their legal defense fund.
Purvis and another Jena defendant, Carwin Jones, posed like rap stars at the Black Entertainment Television Hip Hop Awards in October, where they presented a music award and received an ovation from the audience. Jena defendant Robert Bailey Jr. posted pictures of himself on a Myspace page with a wad of $100 bills stuffed in his mouth. And questions arose over the accounting for some of the donated legal funds controlled by the Jena 6 families after they declined to say how they were spending the money."
Jena has not lost anything for our members," said Mervyn Marcano, spokesman for Color of Change, an Internet-based civil rights group of nearly 400,000 members that raised more than $200,000 for the Jena defendants. "It's sort of a pop-culture touchstone of 2007 for a lot of black people."But Marcano said he hoped that Purvis' latest arrest would not detract from the larger issues of equal justice raised by the Jena case."These kids are still juveniles, so I'm not surprised that they will get into scuffles and things of that nature," Marcano said.
"These kids are not supposed to be angels. They are supposed to have equal access to fair treatment from the criminal justice system, and they will continue to be teenagers while we continue to fight for that."
hwitt@tribune.com
Copyright © 2008, Chicago Tribune
Helpful Hints: Business Development
Innovation: If You Lose Your Cool, You Won’t Get it Back
February 6, 2008
Building a business around being cool is really hard. Keeping it there is even harder. But the toughest of all is getting your cool edge back if you ever lose it. The good news for innovators is that refocusing on being credible can be just as profitable as being cool, without as much inherent risk.
Apple is a great example of a company that has been coming out with cool products ever since Steve Jobs and Steve Wozniak started making and selling circuit boards and computers in the late 1970s. Apple’s latest computers and iGoodies are widely perceived as must-have products with people routinely lining up to buy them as they are launched. At $1800, the MacBook Air launched last month is the latest on Apple’s hit parade.
So what will happen if Apple loses its edge? Not a problem if it takes the same approach that Kodak did years ago when its traditional business of photographic films and papers turned to ashes. Kodak is a big company with a long history of introducing cool products that date all the way back to about 1900 when it introduced the very popular “brownie” camera. Kodak saw big problems coming when digital camera sales started going through the roof. Although the company was in the digital camera game from early on, it knew it would face very tough competition from Japanese consumer electronics giants. Kodak simply wasn’t going to remain cool as the competition heated up.
Kodak was able to refocus on B2B offerings using the tremendous credibility it had established over the previous century. The company’s investor information page claims “Kodak is the world’s foremost imaging innovator. With sales of $10.7 billion in 2006, the company is committed to a digitally oriented growth strategy focused on helping people better use meaningful images and information in their life and work. Consumers use Kodak’s system of digital and traditional products and services to take, print and share their pictures anytime, anywhere; Businesses effectively communicate with customers worldwide using Kodak solutions for prepress, conventional and digital printing and document imaging; and Creative Professionals rely on Kodak technology to uniquely tell their story through moving or still images.” These are not consumer product offerings that will have people lining up in droves. Apple brags about its iPhone and having sold over 110 million iPods and over three billion songs from its iTunes online store but it has no major current B2B offerings.
A great advantage of a company that has leveraged and built up credibility to shift from leading edge consumer product offerings towards B2B offerings, is that the business becomes more predictable. This also applies to its R&D returns. Watch and see if Apple remains cool and if it shifts toward increasing its B2B offerings over the next few years. That would decrease the likelihood of the company falling flat on its face if it loses its cool.
Atomica Creative > Strategic Product Marketing • Vancouver, Canada • tnakagawa@atomicacreative.com
Innovation: If You Lose Your Cool, You Won’t Get it Back
February 6, 2008
Building a business around being cool is really hard. Keeping it there is even harder. But the toughest of all is getting your cool edge back if you ever lose it. The good news for innovators is that refocusing on being credible can be just as profitable as being cool, without as much inherent risk.
Apple is a great example of a company that has been coming out with cool products ever since Steve Jobs and Steve Wozniak started making and selling circuit boards and computers in the late 1970s. Apple’s latest computers and iGoodies are widely perceived as must-have products with people routinely lining up to buy them as they are launched. At $1800, the MacBook Air launched last month is the latest on Apple’s hit parade.
So what will happen if Apple loses its edge? Not a problem if it takes the same approach that Kodak did years ago when its traditional business of photographic films and papers turned to ashes. Kodak is a big company with a long history of introducing cool products that date all the way back to about 1900 when it introduced the very popular “brownie” camera. Kodak saw big problems coming when digital camera sales started going through the roof. Although the company was in the digital camera game from early on, it knew it would face very tough competition from Japanese consumer electronics giants. Kodak simply wasn’t going to remain cool as the competition heated up.
Kodak was able to refocus on B2B offerings using the tremendous credibility it had established over the previous century. The company’s investor information page claims “Kodak is the world’s foremost imaging innovator. With sales of $10.7 billion in 2006, the company is committed to a digitally oriented growth strategy focused on helping people better use meaningful images and information in their life and work. Consumers use Kodak’s system of digital and traditional products and services to take, print and share their pictures anytime, anywhere; Businesses effectively communicate with customers worldwide using Kodak solutions for prepress, conventional and digital printing and document imaging; and Creative Professionals rely on Kodak technology to uniquely tell their story through moving or still images.” These are not consumer product offerings that will have people lining up in droves. Apple brags about its iPhone and having sold over 110 million iPods and over three billion songs from its iTunes online store but it has no major current B2B offerings.
A great advantage of a company that has leveraged and built up credibility to shift from leading edge consumer product offerings towards B2B offerings, is that the business becomes more predictable. This also applies to its R&D returns. Watch and see if Apple remains cool and if it shifts toward increasing its B2B offerings over the next few years. That would decrease the likelihood of the company falling flat on its face if it loses its cool.
Atomica Creative > Strategic Product Marketing • Vancouver, Canada • tnakagawa@atomicacreative.com
Innovation: If You Lose Your Cool, You Won’t Get it Back
2.06.2008
Helpful Hints: Starting a Business
How to open a Bar or Nightclub
eHow.com
Steps
Step One
Beware of the Beginning New bars and nightclubs only get one shot at success. Every customer who comes through your doors is crucial to the success of your venue and you need them to have a great experience if you hope to have them return. It is vital that your venue is ready for success from day one. Many bar and nightclub concepts fail within the first twelve months because they don’t have an adequate plan in place. There are many key factors that contribute to a Bar or Nightclub failing! 1- Bad Management – The most common problem is lack of experience in opening a new venue. Many managers come from concepts that have been up and running and successful. These managers have been working in an environment where all the operating procedures are already in place and functioning. 2- Bad Owners – One common failing is partners not Seeing Eye to eye about how the bar will be run. Often, money issues arise, with one or more partners unwilling to commit money to areas they feel are not effective. The most crucial areas are promotions and hiring and paying a good operations manager. It’s not unusual for owners to think that because they have spent so much time in bars, it is easy to run a bar. At this point, I often find myself asking them if they should get their tax guy to run the bar and I will do their taxes for them! Owners and investors often need to step back and let experienced operators take over. 3- Under capitalization – Many venues begin without enough capital. During the construction phase, with all the delays and changes involved, the budget gets eaten up, leaving the concept little or no capital to properly execute promotions and operations. Many times, having a bad lease agreement and not allowing enough time for construction will drive a bar into a financial crisis before opening. Owners will find themselves paying rent while still in construction because of bad lease negotiations, construction delays and horrible city planning departments. Delays are inevitable, so add an additional 20% to the bottom line when figuring out your budget. 4- Bad Partnerships – Wow, I have fallen victim to this time and time again! Partnerships are often the best way to end up strangling someone who was your best friend six months ago. The level of stress in opening a new concept is often too much for many people, leaving them bitter and spiteful and more than one partner screwed over
Step Two
Bar Business Plan If you need to raise money, a good business plan is in order. Many bars and nightclubs need large injections of capital in multiple phases from the very beginning. For construction costs or lease obligations, sometimes this amount will be in the millions of dollars. I, for one, am not great at writing a solid business plan but I know many people who love nothing better than to raise capital for a dream in spiral-bound notebook form. I recommend you find one of the many templates available on the Internet.
Step Three
Selling the dream to Investors Many investors in the bar and nightclub business are often motivated not by ungodly returns but by the illusion of being young and cool again. They missed out on the good years, the chicks and the party life. Often, it was because of marriage or work commitments or just not ever being the cool guy. Now, they have some money and want to recreate the years they missed! I like to say to these lost souls “The easiest way to make a small fortune is to start with a large fortune and then open a bar!” If you want to invest in a bar or club, great, but let professionals run the operation and stay out of the way! Have a good time with your friends and family, buying them drinks and partying in the VIP room all night. Just stay out of the way. When you are trying to raise money for your bar or nightclub, selling this dream to investors is often 90 percent timing and 10 percent sales. Despite that, you usually will find the right person at the right time. Many people want to be a part of something exciting such as a bar or nightclub. You need to make sure you present your business plan with legitimate goals and clear ideas of what you are trying to create. Make the potential investors comfortable with the risk vs. reward factor of a bar and nightclub.
Step Four
Market Research & Analysis I can't stress enough how important research is. You need to know if your dream of opening a bar or nightclub will actually work in the real world. You need to know what it is that your market and customers actually want. There are four areas you should research: 1. Marketplace and customer base 2. Competition 3. Current industry trends 4. Seasonal effects on your business. There are many professional market-research firms that can be contracted to do this for you. Successful companies specializing in market research include Market Decisions Corporation (MDC Research) and Moore Information, both companies are based in Portland, Oregon. They are experts in gathering information and opinions from targeted population samples. They can sit down with you, analyze your intentions and goals, isolate your target market and design appropriately worded questionnaires. This will enable you to gather honest and accurate information about what people will want and expect from your concept. Where Do You Plan to Open Your Bar? Who is Your Customers? This is the first question you need to ask. You are not going to want to open the wrong concept in the wrong location for the wrong demographic. It is important to get out and hit the local hot spots. Go out and do market research or hire a firm to send interviewers (or “interceptors”) to all the bars and nightclubs frequented by your target demographic for a month or two. Ask people what they like and don’t like about the existing venues, and what they think is missing in the realm of bars and nightclubs in your marketplace.
Step Five
A QUICK CUSTOMER PROFILE You may find that the promotions you thought were targeted to specific customer groups bring in patrons you didn’t expect. Demographic overlaps are more common now than at any other time in history. Now, the rich and famous are rubbing shoulders with the masses in hot spots all over the country. But it is still important to establish which customers you are trying to attract to your concept. • College students • Twenty something • Blue-collar workers • The in-crowd/A-listers/celebrities • Working professionals
Step Six
THE COMPETITION “It is my belief that competition develops synergy! “If I am wrong, then why do so many billion-dollar casinos open next to one another?” Two Types of Competitors: Direct and Indirect You need to take a good look at other local venues long before you lock in your location and concept. This is the time to study everything other venues and concepts are doing over your entire marketplace. What is working for other venues and concepts and what isn’t? Do you feel the location you have chosen is the type of area you can jump into and provide a product on par with the other local establishments? Who are you competing against? Do you want to compete against another established concept? Is a similar concept 10 miles away going to affect yours? Direct Competition vs. Synergistic Competition Synergy is a very real effect that occurs in the bar and nightclub industry. As an intelligent operator, you are not going to open the same type of bar or nightclub next door to an existing one with the same concept. But with so many ideas to choose from, you will be able to find a twist on other local establishments. I do not believe in competing with your neighbors since you all have the same goals. If you and your neighbors understand the business, they know that people today have extremely short attention spans and are always on the move. The typical customer will hang out for anywhere from 30 minutes to 2 ½ hours, depending on many factors, including seating, entertainment and the concept’s popularity.
How to Open a Bar or Nightclub, Chris’ extensive experience in concept development, design, market placement and construction management have given him the insight to be able to design layouts that maximize flow patterns and provide energy points needed for efficient and successful operations.
eHow.com
Steps
Step One
Beware of the Beginning New bars and nightclubs only get one shot at success. Every customer who comes through your doors is crucial to the success of your venue and you need them to have a great experience if you hope to have them return. It is vital that your venue is ready for success from day one. Many bar and nightclub concepts fail within the first twelve months because they don’t have an adequate plan in place. There are many key factors that contribute to a Bar or Nightclub failing! 1- Bad Management – The most common problem is lack of experience in opening a new venue. Many managers come from concepts that have been up and running and successful. These managers have been working in an environment where all the operating procedures are already in place and functioning. 2- Bad Owners – One common failing is partners not Seeing Eye to eye about how the bar will be run. Often, money issues arise, with one or more partners unwilling to commit money to areas they feel are not effective. The most crucial areas are promotions and hiring and paying a good operations manager. It’s not unusual for owners to think that because they have spent so much time in bars, it is easy to run a bar. At this point, I often find myself asking them if they should get their tax guy to run the bar and I will do their taxes for them! Owners and investors often need to step back and let experienced operators take over. 3- Under capitalization – Many venues begin without enough capital. During the construction phase, with all the delays and changes involved, the budget gets eaten up, leaving the concept little or no capital to properly execute promotions and operations. Many times, having a bad lease agreement and not allowing enough time for construction will drive a bar into a financial crisis before opening. Owners will find themselves paying rent while still in construction because of bad lease negotiations, construction delays and horrible city planning departments. Delays are inevitable, so add an additional 20% to the bottom line when figuring out your budget. 4- Bad Partnerships – Wow, I have fallen victim to this time and time again! Partnerships are often the best way to end up strangling someone who was your best friend six months ago. The level of stress in opening a new concept is often too much for many people, leaving them bitter and spiteful and more than one partner screwed over
Step Two
Bar Business Plan If you need to raise money, a good business plan is in order. Many bars and nightclubs need large injections of capital in multiple phases from the very beginning. For construction costs or lease obligations, sometimes this amount will be in the millions of dollars. I, for one, am not great at writing a solid business plan but I know many people who love nothing better than to raise capital for a dream in spiral-bound notebook form. I recommend you find one of the many templates available on the Internet.
Step Three
Selling the dream to Investors Many investors in the bar and nightclub business are often motivated not by ungodly returns but by the illusion of being young and cool again. They missed out on the good years, the chicks and the party life. Often, it was because of marriage or work commitments or just not ever being the cool guy. Now, they have some money and want to recreate the years they missed! I like to say to these lost souls “The easiest way to make a small fortune is to start with a large fortune and then open a bar!” If you want to invest in a bar or club, great, but let professionals run the operation and stay out of the way! Have a good time with your friends and family, buying them drinks and partying in the VIP room all night. Just stay out of the way. When you are trying to raise money for your bar or nightclub, selling this dream to investors is often 90 percent timing and 10 percent sales. Despite that, you usually will find the right person at the right time. Many people want to be a part of something exciting such as a bar or nightclub. You need to make sure you present your business plan with legitimate goals and clear ideas of what you are trying to create. Make the potential investors comfortable with the risk vs. reward factor of a bar and nightclub.
Step Four
Market Research & Analysis I can't stress enough how important research is. You need to know if your dream of opening a bar or nightclub will actually work in the real world. You need to know what it is that your market and customers actually want. There are four areas you should research: 1. Marketplace and customer base 2. Competition 3. Current industry trends 4. Seasonal effects on your business. There are many professional market-research firms that can be contracted to do this for you. Successful companies specializing in market research include Market Decisions Corporation (MDC Research) and Moore Information, both companies are based in Portland, Oregon. They are experts in gathering information and opinions from targeted population samples. They can sit down with you, analyze your intentions and goals, isolate your target market and design appropriately worded questionnaires. This will enable you to gather honest and accurate information about what people will want and expect from your concept. Where Do You Plan to Open Your Bar? Who is Your Customers? This is the first question you need to ask. You are not going to want to open the wrong concept in the wrong location for the wrong demographic. It is important to get out and hit the local hot spots. Go out and do market research or hire a firm to send interviewers (or “interceptors”) to all the bars and nightclubs frequented by your target demographic for a month or two. Ask people what they like and don’t like about the existing venues, and what they think is missing in the realm of bars and nightclubs in your marketplace.
Step Five
A QUICK CUSTOMER PROFILE You may find that the promotions you thought were targeted to specific customer groups bring in patrons you didn’t expect. Demographic overlaps are more common now than at any other time in history. Now, the rich and famous are rubbing shoulders with the masses in hot spots all over the country. But it is still important to establish which customers you are trying to attract to your concept. • College students • Twenty something • Blue-collar workers • The in-crowd/A-listers/celebrities • Working professionals
Step Six
THE COMPETITION “It is my belief that competition develops synergy! “If I am wrong, then why do so many billion-dollar casinos open next to one another?” Two Types of Competitors: Direct and Indirect You need to take a good look at other local venues long before you lock in your location and concept. This is the time to study everything other venues and concepts are doing over your entire marketplace. What is working for other venues and concepts and what isn’t? Do you feel the location you have chosen is the type of area you can jump into and provide a product on par with the other local establishments? Who are you competing against? Do you want to compete against another established concept? Is a similar concept 10 miles away going to affect yours? Direct Competition vs. Synergistic Competition Synergy is a very real effect that occurs in the bar and nightclub industry. As an intelligent operator, you are not going to open the same type of bar or nightclub next door to an existing one with the same concept. But with so many ideas to choose from, you will be able to find a twist on other local establishments. I do not believe in competing with your neighbors since you all have the same goals. If you and your neighbors understand the business, they know that people today have extremely short attention spans and are always on the move. The typical customer will hang out for anywhere from 30 minutes to 2 ½ hours, depending on many factors, including seating, entertainment and the concept’s popularity.
How to Open a Bar or Nightclub, Chris’ extensive experience in concept development, design, market placement and construction management have given him the insight to be able to design layouts that maximize flow patterns and provide energy points needed for efficient and successful operations.
MWPRInsight: Potential Crisis Situation (PR is needed)
Bottom Line for (Red)
New York Times
According to the center’s managing director, Dr. Anita Asiimwe, doctors spend less time on crises and more time researching how to slow H.I.V. transmission in this tiny African nation, still recovering from a genocide in 1994.
Dr. Asiimwe thanks an unlikely benefactor for all these improvements: the American shopper.
Just over a year ago, the rock star Bono started Red, a campaign that combined consumerism and altruism. Since then, consumers have generated more than $22 million to fight H.I.V. and AIDS in Rwanda by buying iPods, T-shirts, watches, cologne and most recently — as anyone who watched the Super Bowl knows — laptops, with all of them branded “(Product)RED.”
According to Rwandan officials, Red contributions have built 33 testing and treatment centers, supplied medicine for more than 6,000 women to keep them from transmitting H.I.V. to their babies, and financed counseling and testing for thousands more patients.
Yet detractors say Red has fallen short. They criticize a lack of transparency at the company and its partners over how much they make from Red products, and whether they spend more money on Africa or advertising.
“Look at all the promotions they’ve put out,” said Inger L. Stole, a communications professor at the University of Illinois. “The ads seem to be more about promoting the companies and how good they are than the issue of AIDS.”
In the Super Bowl ad Sunday, which promoted Dell’s recent Red debut, a man buys a Red laptop and finds himself cheered in the street by strangers and kissed by a beautiful woman. At the end of the commercial, three screens flash in rapid succession: “Buy Dell. Join (RED). Save Lives.”
Read entire article http://www.nytimes.com/2008/02/06/business/06red.html?pagewanted=1&_r=1&ei=5088&en=827c3f68422f1658&ex=1360040400&partner=rssnyt&emc=rss
New York Times
By RON NIXON
Published: February 6, 2008
KIGALI, Rwanda — A year ago, staff members at the Treatment and Research AIDS Center could barely cope. Patients, unable to find care elsewhere, flowed in from every corner of the country. And if one of them was fortunate enough to find a bed here, she often had to share it.
Today, a dozen patients, mostly women, sit in neat waiting rooms, laughing and talking as children play around them. Doctors greet one another as they make their rounds, and take all the time they need to explain the complicated schedule H.I.V. drugs require.According to the center’s managing director, Dr. Anita Asiimwe, doctors spend less time on crises and more time researching how to slow H.I.V. transmission in this tiny African nation, still recovering from a genocide in 1994.
Dr. Asiimwe thanks an unlikely benefactor for all these improvements: the American shopper.
Just over a year ago, the rock star Bono started Red, a campaign that combined consumerism and altruism. Since then, consumers have generated more than $22 million to fight H.I.V. and AIDS in Rwanda by buying iPods, T-shirts, watches, cologne and most recently — as anyone who watched the Super Bowl knows — laptops, with all of them branded “(Product)RED.”
According to Rwandan officials, Red contributions have built 33 testing and treatment centers, supplied medicine for more than 6,000 women to keep them from transmitting H.I.V. to their babies, and financed counseling and testing for thousands more patients.
Yet detractors say Red has fallen short. They criticize a lack of transparency at the company and its partners over how much they make from Red products, and whether they spend more money on Africa or advertising.
“Look at all the promotions they’ve put out,” said Inger L. Stole, a communications professor at the University of Illinois. “The ads seem to be more about promoting the companies and how good they are than the issue of AIDS.”
In the Super Bowl ad Sunday, which promoted Dell’s recent Red debut, a man buys a Red laptop and finds himself cheered in the street by strangers and kissed by a beautiful woman. At the end of the commercial, three screens flash in rapid succession: “Buy Dell. Join (RED). Save Lives.”
Read entire article http://www.nytimes.com/2008/02/06/business/06red.html?pagewanted=1&_r=1&ei=5088&en=827c3f68422f1658&ex=1360040400&partner=rssnyt&emc=rss
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