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HipMojo 29A: Marketing Fails – Olestra, Rheingold


welcome to hip Muldrow i’m your host

welcome to hip Muldrow i’m your host afghan carbon solutions show number 29

afghan carbon solutions show number 29

afghan carbon solutions show number 29 joining me as harold simkins professor

joining me as harold simkins professor

joining me as harold simkins professor of marketing at concordia John Wilson

of marketing at concordia John Wilson

of marketing at concordia John Wilson School of Business what I went there was

School of Business what I went there was

School of Business what I went there was just Concordia but I guess you guys got

just Concordia but I guess you guys got

just Concordia but I guess you guys got the fancy sponsorship deal so absolutely

the fancy sponsorship deal so absolutely

the fancy sponsorship deal so absolutely thank you very much for joining us April

thank you very much for joining us April

thank you very much for joining us April 23rd is the anniversary of coca-cola’s

23rd is the anniversary of coca-cola’s

23rd is the anniversary of coca-cola’s decision to launch Newcomb so we decided

decision to launch Newcomb so we decided

decision to launch Newcomb so we decided to do a top 10 marketing miss apps which

to do a top 10 marketing miss apps which

to do a top 10 marketing miss apps which is a companion piece to this interview

is a companion piece to this interview

is a companion piece to this interview or doing with you you teach marketing

or doing with you you teach marketing

or doing with you you teach marketing you teach advertising I think I actually

you teach advertising I think I actually

you teach advertising I think I actually had you as in the advertising class so I

had you as in the advertising class so I

had you as in the advertising class so I thought of reaching out to you and

thought of reaching out to you and

thought of reaching out to you and asking you for your opinion on these

asking you for your opinion on these

asking you for your opinion on these so-called marketing and product mishaps

so-called marketing and product mishaps

so-called marketing and product mishaps so my first question to you is we’ll

so my first question to you is we’ll

so my first question to you is we’ll talk specifically about New Coke but is

talk specifically about New Coke but is

talk specifically about New Coke but is all PR good PR or is there such a thing

all PR good PR or is there such a thing

all PR good PR or is there such a thing as bad PR when these companies make

as bad PR when these companies make

as bad PR when these companies make these so called mrs. well there’s

these so called mrs. well there’s

these so called mrs. well there’s absolutely a thing like bad PR just look

absolutely a thing like bad PR just look

absolutely a thing like bad PR just look at the situation with was owned right

at the situation with was owned right

at the situation with was owned right now and there are we suspend of drinks

now and there are we suspend of drinks

now and there are we suspend of drinks and having gone after the the person who

and having gone after the the person who

and having gone after the the person who has the Oasis brand of soap and taking

has the Oasis brand of soap and taking

has the Oasis brand of soap and taking her to the Supreme Court and causing her

her to the Supreme Court and causing her

her to the Supreme Court and causing her all kinds of legal problems in terms of

all kinds of legal problems in terms of

all kinds of legal problems in terms of cause that’s all over the social media

cause that’s all over the social media

cause that’s all over the social media right now they’ve something like a

right now they’ve something like a

right now they’ve something like a hundred thousand inquiries into it the

hundred thousand inquiries into it the

hundred thousand inquiries into it the PR is horrible they’re in damage control

PR is horrible they’re in damage control

PR is horrible they’re in damage control mode so that’s an example of PR not

mode so that’s an example of PR not

mode so that’s an example of PR not working in your favor you know there’s

working in your favor you know there’s

working in your favor you know there’s an old saying there’s no such thing as

an old saying there’s no such thing as

an old saying there’s no such thing as bad PR maybe that applies to movie stars

bad PR maybe that applies to movie stars

bad PR maybe that applies to movie stars you know just to keep their their face

you know just to keep their their face

you know just to keep their their face and name in the limelight and whether it

and name in the limelight and whether it

and name in the limelight and whether it be because they’ve been good people bad

be because they’ve been good people bad

be because they’ve been good people bad people whatever but I think when it

people whatever but I think when it

people whatever but I think when it comes to products they’re certainly can

comes to products they’re certainly can

comes to products they’re certainly can be very very bad Pierre okay you raised

be very very bad Pierre okay you raised

be very very bad Pierre okay you raised social media and celebrities those are

social media and celebrities those are

social media and celebrities those are two things I want to expand on how does

two things I want to expand on how does

two things I want to expand on how does social media change this does it really

social media change this does it really

social media change this does it really amplify it or oh contraire does it allow

amplify it or oh contraire does it allow

amplify it or oh contraire does it allow the marketers a tool to sort of get on

the marketers a tool to sort of get on

the marketers a tool to sort of get on it quickly and address it instead of

it quickly and address it instead of

it quickly and address it instead of waiting for the news cycle to its both

waiting for the news cycle to its both

waiting for the news cycle to its both its most I mean marketers can preempt

its most I mean marketers can preempt

its most I mean marketers can preempt the snowball effect as they see it

the snowball effect as they see it

the snowball effect as they see it forming in social media but on the other

forming in social media but on the other

forming in social media but on the other hand you know consumers

hand you know consumers

hand you know consumers citizens can get together really really

citizens can get together really really

citizens can get together really really really quickly and share opinions good

really quickly and share opinions good

really quickly and share opinions good bent or indifferent and so marketers

bent or indifferent and so marketers

bent or indifferent and so marketers very much have to be on the lookout for

very much have to be on the lookout for

very much have to be on the lookout for those kinds of things developing and

those kinds of things developing and

those kinds of things developing and more and more of course have full-time

more and more of course have full-time

more and more of course have full-time social media departments so take us

social media departments so take us

social media departments so take us through a few of the biggest market

through a few of the biggest market

through a few of the biggest market actually are all product mishaps

actually are all product mishaps

actually are all product mishaps necessarily marketing mishaps more to

necessarily marketing mishaps more to

necessarily marketing mishaps more to take us through that nuance first of all

take us through that nuance first of all

take us through that nuance first of all um I mean you could have a bad prodigal

um I mean you could have a bad prodigal

um I mean you could have a bad prodigal take one of my favorite products of all

take one of my favorite products of all

take one of my favorite products of all time we take the soft drink industry so

time we take the soft drink industry so

time we take the soft drink industry so back in the 1980s as the population

back in the 1980s as the population

back in the 1980s as the population started aging the soft drink industry

started aging the soft drink industry

started aging the soft drink industry started declining because you know as

started declining because you know as

started declining because you know as you get older you want to consume fewer

you get older you want to consume fewer

you get older you want to consume fewer calories less sugar all the forecasts

calories less sugar all the forecasts

calories less sugar all the forecasts were for an industry that was going to

were for an industry that was going to

were for an industry that was going to disappear almost and then NutraSweet was

disappear almost and then NutraSweet was

disappear almost and then NutraSweet was invented so now you could have soft

invented so now you could have soft

invented so now you could have soft drinks with no calories so coke diet

drinks with no calories so coke diet

drinks with no calories so coke diet coke would taste like Coke and Diet

coke would taste like Coke and Diet

coke would taste like Coke and Diet Pepsi like Patrick almost and that

Pepsi like Patrick almost and that

Pepsi like Patrick almost and that single-handedly revived the soft drink

single-handedly revived the soft drink

single-handedly revived the soft drink industry so that whatever your age you

industry so that whatever your age you

industry so that whatever your age you don’t have to worry about putting on

don’t have to worry about putting on

don’t have to worry about putting on calories because there’s zero calories

calories because there’s zero calories

calories because there’s zero calories in these products one product that I

in these products one product that I

in these products one product that I watched with really close interest

watched with really close interest

watched with really close interest because I like french fries not like

because I like french fries not like

because I like french fries not like fried chicken I liked right exactly so

fried chicken I liked right exactly so

fried chicken I liked right exactly so if you could come up with a NutraSweet

if you could come up with a NutraSweet

if you could come up with a NutraSweet version of will such that it would have

version of will such that it would have

version of will such that it would have zero calories so you could be a bit fry

zero calories so you could be a bit fry

zero calories so you could be a bit fry up a potato and there would be no more

up a potato and there would be no more

up a potato and there would be no more calories from those french fries that

calories from those french fries that

calories from those french fries that there would be in the raw potato and the

there would be in the raw potato and the

there would be in the raw potato and the same with the chicken on the same with

same with the chicken on the same with

same with the chicken on the same with the fish this would be a homerun ball

the fish this would be a homerun ball

the fish this would be a homerun ball well guess who invented the product was

well guess who invented the product was

well guess who invented the product was Procter & Gamble and was called olestra

Procter & Gamble and was called olestra

Procter & Gamble and was called olestra I remember reading in an alesis way

I remember reading in an alesis way

I remember reading in an alesis way disease so Bob that’s right that was a

disease so Bob that’s right that was a

disease so Bob that’s right that was a great book but it’s fantastic book and

great book but it’s fantastic book and

great book but it’s fantastic book and actually products fried in oil Astro

actually products fried in oil Astro

actually products fried in oil Astro tasted like the real thing but there was

tasted like the real thing but there was

tasted like the real thing but there was one side effect that elestra head they

one side effect that elestra head they

one side effect that elestra head they knew what going into the marketplace and

knew what going into the marketplace and

knew what going into the marketplace and that’s that it caused gassiness that

that’s that it caused gassiness that

that’s that it caused gassiness that could manifest itself from your mouth or

could manifest itself from your mouth or

could manifest itself from your mouth or from the other end so you go out a fart

from the other end so you go out a fart

from the other end so you go out a fart or burp after your first and Jess you

or burp after your first and Jess you

or burp after your first and Jess you know but it was only after your first

know but it was only after your first

know but it was only after your first ingestion is there a see

ingestion is there a see

ingestion is there a see the above it just look and so and it

the above it just look and so and it

the above it just look and so and it didn’t happen with all people but with a

didn’t happen with all people but with a

didn’t happen with all people but with a lot of people the first time you eat

lot of people the first time you eat

lot of people the first time you eat something cooked an alert that would

something cooked an alert that would

something cooked an alert that would happen but if we never happened again

happen but if we never happened again

happen but if we never happened again and P&G believed that you know we get

and P&G believed that you know we get

and P&G believed that you know we get used to it and overcome that and people

used to it and overcome that and people

used to it and overcome that and people didn’t weren’t bad Pierre got out as a

didn’t weren’t bad Pierre got out as a

didn’t weren’t bad Pierre got out as a result of that and the product was

result of that and the product was

result of that and the product was withdrawn from the market and I recall

withdrawn from the market and I recall

withdrawn from the market and I recall they spent like a lot of money on this

they spent like a lot of money on this

they spent like a lot of money on this and lots of time um and then okay so

and lots of time um and then okay so

and lots of time um and then okay so those are product mistakes so I mean how

those are product mistakes so I mean how

those are product mistakes so I mean how does that now translate to marketing

does that now translate to marketing

does that now translate to marketing mistakes it’s take us through like a few

mistakes it’s take us through like a few

mistakes it’s take us through like a few of the top marketing mistakes in your

of the top marketing mistakes in your

of the top marketing mistakes in your opinion that really make you just say

opinion that really make you just say

opinion that really make you just say what were they thinking well you know

what were they thinking well you know

what were they thinking well you know it’s always easy to second-guess and

it’s always easy to second-guess and

it’s always easy to second-guess and especially in the field of marketing and

especially in the field of marketing and

especially in the field of marketing and advertising work everything is done in

advertising work everything is done in

advertising work everything is done in the open right we see the ads we see the

the open right we see the ads we see the

the open right we see the ads we see the commercials and and you know we’re free

commercials and and you know we’re free

commercials and and you know we’re free to criticize make our comments then of

to criticize make our comments then of

to criticize make our comments then of course if there is a failure its a

course if there is a failure its a

course if there is a failure its a public failure and then of course a lot

public failure and then of course a lot

public failure and then of course a lot of people like myself University

of people like myself University

of people like myself University Professors consultant st. we say we told

Professors consultant st. we say we told

Professors consultant st. we say we told you so we knew this was going to happen

you so we knew this was going to happen

you so we knew this was going to happen if you only spoke with to us in the

if you only spoke with to us in the

if you only spoke with to us in the first place well that’s not always the

first place well that’s not always the

first place well that’s not always the case you know companies that are

case you know companies that are

case you know companies that are bringing especially major companies

bringing especially major companies

bringing especially major companies bringing it new products or new

bringing it new products or new

bringing it new products or new campaigns test them they have the top

campaigns test them they have the top

campaigns test them they have the top creative mind stop marketing minds

creative mind stop marketing minds

creative mind stop marketing minds working on their behalf so how come how

working on their behalf so how come how

working on their behalf so how come how could you end up with failures let me

could you end up with failures let me

could you end up with failures let me give you one of my favorite failures of

give you one of my favorite failures of

give you one of my favorite failures of all time there was a beer in the States

all time there was a beer in the States

all time there was a beer in the States called Rheingold and you’ll the beer

called Rheingold and you’ll the beer

called Rheingold and you’ll the beer market particularly back then it was all

market particularly back then it was all

market particularly back then it was all about branding because all beers tasted

about branding because all beers tasted

about branding because all beers tasted this unlike today where we had craft

this unlike today where we had craft

this unlike today where we had craft beers and imported beers and whatever so

beers and imported beers and whatever so

beers and imported beers and whatever so Ryan Gauld was looking for a way to

Ryan Gauld was looking for a way to

Ryan Gauld was looking for a way to differentiate itself from budweiser and

differentiate itself from budweiser and

differentiate itself from budweiser and Shaffer and she’ll it’s the big brands

Shaffer and she’ll it’s the big brands

Shaffer and she’ll it’s the big brands of the time and I remember seeing these

of the time and I remember seeing these

of the time and I remember seeing these commercials as a teenager coming up

commercials as a teenager coming up

commercials as a teenager coming up coming up from the states over cable so

coming up from the states over cable so

coming up from the states over cable so you would see this beautiful Greek

you would see this beautiful Greek

you would see this beautiful Greek winning celebration you know in a hall

winning celebration you know in a hall

winning celebration you know in a hall and the bride and the groom and everyone

and the bride and the groom and everyone

and the bride and the groom and everyone having a good time and the tagline was

having a good time and the tagline was

having a good time and the tagline was in Chicago where there are more Greeks

in Chicago where there are more Greeks

in Chicago where there are more Greeks than in Athens that number one beer is

than in Athens that number one beer is

than in Athens that number one beer is wrangled

wrangled

wrangled there was one with a Jewish wedding in

there was one with a Jewish wedding in

there was one with a Jewish wedding in New York City in New York City where

New York City in New York City where

New York City in New York City where they’re more Jews than in Tel Aviv

they’re more Jews than in Tel Aviv

they’re more Jews than in Tel Aviv number one beer is fine gold and I

number one beer is fine gold and I

number one beer is fine gold and I forget which city was the Italian one

forget which city was the Italian one

forget which city was the Italian one but I get an Italian Wedding they like

but I get an Italian Wedding they like

but I get an Italian Wedding they like beautiful beautiful beautiful

beautiful beautiful beautiful

beautiful beautiful beautiful photography and the number one beer was

photography and the number one beer was

photography and the number one beer was Rheingold and I thought to myself at the

Rheingold and I thought to myself at the

Rheingold and I thought to myself at the time as this is really really beautiful

time as this is really really beautiful

time as this is really really beautiful stuff and showing different cultures and

stuff and showing different cultures and

stuff and showing different cultures and you know and how they’ve adopted

you know and how they’ve adopted

you know and how they’ve adopted Rheingold beer and what a neat way to

Rheingold beer and what a neat way to

Rheingold beer and what a neat way to differentiate yourself that campaign

differentiate yourself that campaign

differentiate yourself that campaign killed the brain why and it killed the

killed the brain why and it killed the

killed the brain why and it killed the bank Greek people living in Chicago

bank Greek people living in Chicago

bank Greek people living in Chicago didn’t want to be seen those Greeks and

didn’t want to be seen those Greeks and

didn’t want to be seen those Greeks and they don’t want to be identified there

they don’t want to be identified there

they don’t want to be identified there won’t be Americans plus the Italian

won’t be Americans plus the Italian

won’t be Americans plus the Italian people didn’t want to drink with the

people didn’t want to drink with the

people didn’t want to drink with the Greek people were drinking and the Jews

Greek people were drinking and the Jews

Greek people were drinking and the Jews didn’t want a drink with the Italian

didn’t want a drink with the Italian

didn’t want a drink with the Italian people were drinking and it was just a

people were drinking and it was just a

people were drinking and it was just a big mess and I guess at the core of it

big mess and I guess at the core of it

big mess and I guess at the core of it was the American melting pot idea yeah

was the American melting pot idea yeah

was the American melting pot idea yeah that you know down everybody melts in

that you know down everybody melts in

that you know down everybody melts in your American first and by singling out

your American first and by singling out

your American first and by singling out these groups it blew up in their face

these groups it blew up in their face

these groups it blew up in their face and I don’t know if testing would have

and I don’t know if testing would have

and I don’t know if testing would have picked up let me ask you a question if

picked up let me ask you a question if

picked up let me ask you a question if that ad campaign would it cause a

that ad campaign would it cause a

that ad campaign would it cause a different kind of reaction ie an uproar

different kind of reaction ie an uproar

different kind of reaction ie an uproar today because you’re even like sitting

today because you’re even like sitting

today because you’re even like sitting here you know in 2012 hearing that I’m

here you know in 2012 hearing that I’m

here you know in 2012 hearing that I’m like I’m sure the first time that you

like I’m sure the first time that you

like I’m sure the first time that you know the Greek Italian Jewish Korean

know the Greek Italian Jewish Korean

know the Greek Italian Jewish Korean whatever there’s somebody going oh my

whatever there’s somebody going oh my

whatever there’s somebody going oh my god why are we even not discriminating

god why are we even not discriminating

god why are we even not discriminating but maybe I mean you could be some

but maybe I mean you could be some

but maybe I mean you could be some somebody’s going to be and it’s not

somebody’s going to be and it’s not

somebody’s going to be and it’s not politically correct to do that but but

politically correct to do that but but

politically correct to do that but but this was really tastefully done okay you

this was really tastefully done okay you

this was really tastefully done okay you mentioned something grade which is going

mentioned something grade which is going

mentioned something grade which is going in the CMOS the adviser gonna take a

in the CMOS the adviser gonna take a

in the CMOS the adviser gonna take a short break we’re going to come back

short break we’re going to come back

short break we’re going to come back afterwards I want to talk to you about

afterwards I want to talk to you about

afterwards I want to talk to you about CMOS when they basically sit there chief

CMOS when they basically sit there chief

CMOS when they basically sit there chief marketing officers VP of Marketing

marketing officers VP of Marketing

marketing officers VP of Marketing researchers whoever and say to the CEO

researchers whoever and say to the CEO

researchers whoever and say to the CEO this is a bad idea I want to ask you if

this is a bad idea I want to ask you if

this is a bad idea I want to ask you if that ever means anything we’ll be right

that ever means anything we’ll be right

that ever means anything we’ll be right back want to get your opinion I’ll be

back want to get your opinion I’ll be

back want to get your opinion I’ll be right back after this

”

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