Category: Public Relations

You Call that “Spirit”?

 

If you subscribe to the view that bad publicity is better than no publicity at all, then you would probably say that last week was great for Spirit Airlines. The air carrier raised eyebrows not once, but twice in a few days’ time. First, Spirit announced new fees for checked baggage that could result in a passenger paying as much as $100 per bag. While the typical rate paid would more likely be on the order of $35-$45, the fact that a $100 fee is on the books outraged many fliers, even people who do not fly Spirit.
Second, Spirit was at the center of a controversy with a dying Marine who requested a fare refund after he was told by doctors not to fly because he was too sick. Spirit initially rejected the request and made a very public case that its policy prevented a refund from being issued. The company eventually relented and issued a refund and made a donation to a veteran’s charity, but not before the public railed against Spirit’s callousness.
The pricing, customer service, and PR tactics displayed by Spirit Airlines lead many to question how the company stays in business. The answer is simple: In many industries, there is a space for a low-priced, no frills seller. Spirit occupies that space in the airline industry. Its model is to offer low base fares and unbundle virtually all services associated with air travel and charge separately for them. There is actually an advantage to consumers for this à la carte pricing approach in that you only have to pay for services you want. Most airlines use some form of this pricing approach; Spirit has taken it to the extreme.
Many people are incredulous at the lack of concern some of Spirit’s actions project. Spirit’s practices are far from textbook examples of good customer service. There is good news for those of us who do not like the brand values displayed by Spirit Airlines – we can use the power of our wallets and fly with other carriers. It seems that executives at Spirit Airlines have overlooked that customer value is determined by more than benefits received for the price paid. Many people factor in a company’s reputation and commitment to concern for customers, employees, and society in general when making buying decisions. Spirit Airlines will continue to serve a customer niche that finds the company’s value proposition palatable. But brands with true spirit aspire to go beyond making money to making a difference.

KFC’s Re-Freshing Approach to Brand Exposure

KFC has broken new ground in finding new communication channels. Actually, it is not breaking ground but rather filling in broken ground, potholes to be exact. The Louisville, KY based company offered the city $3,000 to fill 350 potholes. The potholes are covered with a white stencil bearing the KFC logo and the statement “Re-Freshed by KFC.” The stencil will last approximately 10 days before fading.

While some people may roll their eyes at an unorthodox way to promote a brand, KFC deserves credit for not only being creative, but it also is doing something beneficial for the community. It is possible that other types of “re-freshment” could be for sale in cities across the country as local governments’ budgets are pinched by the recession. In addition to the unique way to generate brand exposure, KFC has been the recipient of extensive media coverage throughout the country for its pothole re-freshment program. This type of tactic would not be effective for all brands, but in the world of quick service restaurants, any edge in the consumers’ mind that can be gained is important.

Link: Creativity Online – “KFC: Pothole Repair”

Home Depot’s Reward for Catching Shoplifter: "You’re Fired!"

Home Depot has not had much positive media coverage in the past couple of years. Stories about declining morale among employees, sliding customer satisfaction ratings, and an ousted CEO who received $200 million to go away have not helped the one-time retail darling. Now, Home Depot has managed to make the front pages for all the wrong reasons by firing a store employee and general manager for stopping a shoplifter. Home Depot’s policies prohibit employees from taking such action, so the company fired Dustin Chester, a 7-year employee and former employee of the year at its Murfreesboro, TN, store as well as the store’s general manager.

One can understand why policies against employee intervention in a shoplifting situation exist. It can be viewed as a measure to protect employees who may not have adequate training to handle such situations, and it possibly minimizes the chances of a shoplifting incident escalating into a violent situation that could endanger customers and employees. But Home Depot did not handle this situation well. Assuming there are no other variables to consider (e.g., the employees had previous performance reprimands), the decision to fire the employees appears to be an over-reaction that has created a public relations embarassment. By adhering to its policies and failing to recognize a public backlash could occur, Home Depot has given many people in middle Tennessee yet another reason to shop at Lowe’s! Link