It’s been a while since this blog was used regularly, primarily because 1.) I was away on sabbatical for a year and 2.) my students didn’t seem to be using it actively any more.
But things change, sometimes faster that we’d like. And as I write this on March 18, 2020, the world is in the middle of a pandemic, a coronavirus known as Covid-19, which has many people isolated at home. So it’s time to dust off this communication forum.
This is a blog about brands, so let’s look at how some brands are responding to an unprecedented moment in which to be managing one. Respected trade magazine AdAge has been tracking brands’ responses to the pandemic by the day and even by the hour:
https://adage.com/article/cmo-strategy/regularly-updated-list-tracking-marketers-response-coronavirus/2244251?utm_source=ad-age-cmo-strategy&utm_medium=email&utm_campaign=20200318&utm_content=article6-headline
I’m reproducing some of these from just the last few days below, because they represent a diverse collection of strategies. I’ve edited it down to focus on brands that are not exclusively in the US, those making interesting choices, and those that seem representative of their category.
Have you seen great (or awful) examples of brand responses to this crisis? Do share!
March 18, 2020
BK’s family time promo
As restaurants try to remain relevant in a non-dining-out market, Burger King has found its way to stand out: some free grub for kids. Starting March 20, Burger King is offering two free kids meals with any purchase made on its app for takeout or drive-thru. The offer can be redeemed one time per guest per day, through April 6.
Dunkin’s social distancing reward
To promote ordering from a distance, Dunkin’ [roughly the U.S. equivalent Tim Hortons] says that it will give loyalty members who use on-the-go ordering on March 19 an extra 100 points in their DD Perks program.
Free, free, free
One way brands are trying to hold onto or win consumers is by offering more stuff for free. Here are two examples:
Dish Network’s Sling TV is providing free news and entertainment content amid the coronavirus outbreak. “Stay in & Sling” will give those with no paid Sling TV account access to free coverage around COVID-19 from ABC News, and on-demand access to kids, lifestyle and entertainment programming.
-Meanwhile, Popsugar released its new subscription fitness app early to get people exercising amid the outbreak. While Active by Popsugar will normally be a paid app, the company is offering the platform free for the foreseeable future. The app features over 500 fitness classes from celebrity trainers and other experts in yoga, strength, cardio and pilates.
Here is the danger: If you condition consumers to expect stuff for free, there is a risk that they will demand deep discounting once things return to normal.
March 17, 2020
Starbucks extends star expirations
Starbucks Rewards members don’t have to worry if they can’t or don’t want to leave home right now to redeem their loyalty points, or stars, for free drinks or other merchandise. In its latest update to customers, Starbucks said it will delay the expiration of all stars that were slated to expire between now and June 1.
Jameson looking out for bartenders
It’s not a normal St. Patrick’s day this year…even the bars in Ireland are closed. Whiskey brand Jameson is stepping up to help support bartenders, a lot of whom are now out of a job due to bars closing for the coronavirus. On social, the Pernod Ricard brand announced it’s pledging $500,000 to support the charity of the United States Bartenders’ Guild. “We know there may be some hard roads ahead for members in this community,” reads a tweet with the hashtag #LoveThyBartender. “To our local bartenders: You’ve always had our backs, and we promise to have yours.” Jameson is also matching every dollar donated by others up to $100,000 to the Bartender Emergency Assistance Program until the end of March.
Facebook pledges small business aid
Facebook says it is prepared to dole out $100 million to small businesses to weather the economic downturn caused by the coronavirus outbreak. On Tuesday, Sheryl Sandberg, Facebook’s chief operating officer, announced the program that’s being called “Boost With Facebook.”
“We’ve listened to small businesses to understand how we can best help them,” Sandberg wrote on her Facebook page on Tuesday. “We’ve heard loud and clear that financial support could enable them to keep the lights on and pay people who can’t come to work.” Sandberg said businesses would be able to apply for grants in the coming weeks, but in the meantime asked companies to sign up for updates online. The website for the program says that the grants could be used to cover expenses like rent, employees and other operational costs. Facebook also said it would also provide advertising assistance for businesses marketing on the social network. Facebook says 30,000 small businesses could be eligible in 30 countries.
More stores close, as household goods sellers make special hours for seniors
The list of temporary store closures has grown to include the likes of Nordstorm, Sephora, J. Crew, Uniqlo, Under Armour and Saks Fifth Avenue’s Manhattan flagship. Ralph Lauren and Foot Locker also announced closures, while JC Penney said it will operate in shortened business hours. Adidas remains open, however, as do several malls. While Nordstrom, which said it will “do our part,” promised a two-week closure, other retailers have more grim predictions. Uniqlo said stores are shuttered “until further notice.”
Meanwhile, several grocers and other chains selling household essentials are offering special shopping hours to seniors, that segment of the population that is especially vulnerable to the coronavirus. Goodlettsville, Tenn.-based Dollar General announced that beginning March 17, the first hour of operation will be dedicated to seniors, who can avoid the crowds of later, busier hours. Shops will also close an hour earlier each day to restock shelves and clean. Grocery chain Stop & Shop has made similar adjustments for older consumers as well.
Restaurant woes continue
A number of restaurant chains have announced the shut down of their dining rooms over the last day, including McDonald’s, where customers can no longer fill their own drinks or make use of the PlayPlace for kids. Wendy’s, Dunkin’ and Arby’s are among the other chains that continue to provide drive-thru, carryout and delivery where possible.
March 16, 2020
Looking for ‘dining bonds’
In a sign of what those in the restaurant industry are trying to do for operators, an initiative called “Dining Bonds” was announced as a way to suggest customers support smaller restaurants that can’t stay open. The idea is for consumers to pay up front for gift certificates, often offered at a discount, from a growing list of restaurants, and is being led by two PR firms, HP-PR and Hall PR. Then, consumers can redeem the gift certificates at a later date once restaurants resume service.
Chipotle offers Zoom lunches with celebrities
Chipotle Mexican Grill is trying to put an uplifting spin on the situation by offering “Chipotle Together” virtual hangouts on Zoom. Each day this week, 3,000 fans will be able to mingle virtually with celebrities in online chats that will also include codes for free entrées. Monday’s chat, scheduled for 2 p.m. ET, is set to be co-hosted by “The Bachelor” Colton Underwood, “who will chat with fans and walk them through a hilarious Chipotle-inspired presentation,” Chipotle said. The company is sharing links to the Chipotle Together Zoom meetings on Twitter.
In more serious details, Chipotle said it is using new tamper-evident packaging seals to reassure diners that food is untouched during delivery.
March 15, 2020
Starbucks moves to a to-go only model in U.S. and Canada
Beginning Sunday, March 15, Starbucks is making all of its stores in the U.S. and Canada “to go” only for at least two weeks. People can walk up and order at the counter, using the order ahead feature on the app, in the drive-thru and using delivery. There is no seating for customers, and condiment bars are being modified to minimize people touching things such as milk canisters. Some stores in locations such as malls and on university campuses may temporarily close, and stores in areas with high clusters of COVID-19 cases may close or reduce operating hours. Many of the measures are similar to what the world’s largest coffee chain did in China when coronavirus was prevalent there.
March 14, 2020
Experiential venues begin to shutter
Museum of Ice Cream, the interactive ice cream-themed experience in New York and San Francisco, is closing its doors temporarily, according to founder and CEO Maryellis Bunn. On Instagram, Bunn announced the coronavirus-fueled decision: “While the world has been fighting to contain COVID-19, we have been fighting to make sure MOIC can get through this unprecedented time. With the growing health concerns and the consideration of the greater public, we made the only possible call, to temporarily shut our doors.”
The closure follows that of interactive venue Color Factory, which recently tweeted that it will be closed for two weeks beginning March 16 to limit the spread of the virus. Experts are not optimistic about the business survival of such venues, which are built on sensory marketing at a time when consumers are unable to touch.
Taco Bell may close some dining rooms
Taco Bell is putting plans in place to deal with any required closures of some of its dining rooms. “As regions of the U.S. begin to mandate public closures and self-quarantine, we are equipping our restaurants to serve our guests via drive-thru and delivery only where necessary,” CEO Mark King says in a letter to fans posted on Taco Bell’s web site. If Taco Bell’s dining rooms need to close, that would limit millions of interactions, “further enabling social distancing,” King writes. Taco Bell, which is heavily franchised, says that at the U.S. restaurants it owns it will pay staffers who are required to stay home or who work at a restaurant that is closed, and is working with franchisees “to encourage a similar approach.”
He added: “We are going to redefine what it means to be a social brand during this coronavirus pandemic, while at the same time keeping our team members safe, and continuing to provide our fans with the delicious Taco Bell food they love.”
Domino’s updates its plans
Domino’s, the world’s biggest pizza chain, has stepped up the frequency of disinfecting surfaces and delivery bags, CEO Ritch Allison said in a letter issued March 14. “It’s also important to note that all of our freshly made products are baked in a 450-degree oven,” Allison writes. Domino’s also pointed out that customers should put instructions in their order if they want contactless delivery. That practice, of having the delivery person leave the item at a designated spot so that the customer can then pick it up separately, is quickly becoming the norm in food delivery. Domino’s is also expanding paid leave for full- and part-time hourly employees at its company-owned stores and its supply chain centers.
Hyundai brings back ‘Job Loss Protection’
As the coronavirus spreads and the economy sinks, brands will be hard-pressed to stir demand for big-ticket items, like cars. Hyundai and sibling brand Genesis are trying to spur purchases by relaunching a recession-era program called Assurance Job Loss Protection. The brands promise to make up to six months of payments for drivers who lose their jobs and have purchased or leased their vehicle between March 14 to April 30, 2020. The brands, owned by Hyundai Motor America, are also allowing buyers to defer payments for three months if they buy certain models. For Hyundai that includes: Santa Fe, Tucson, Elantra, Elantra GT, Kona, Venue and Accent. Hyundai first created the program in January 2009 amid the Great Recession.
“We understand the extreme uncertainty created by the coronavirus and the anxiety experienced by our customers, and wanted to tap into Hyundai’s legacy of having people’s back,” José Muñoz president and CEO of Hyundai Motor North America stated in a press release. “Bringing back the job loss protection program in this unprecedented time will allow our customers to have one less thing to worry about if something unexpected happens to their employment status.”
March 13, 2020
Patagonia closes all stores
Patagonia is temporarily closing its stores, offices and other operations, effective at the close of business on March 13. “We apologize that over the next two weeks, there will be delays on orders and customer-service requests. We ask for your understanding and patience. We will reassess and post an update on March 27, 2020,” Patagonia CEO and president Rose Marcario stated in a letter posted on the company’s web site. Employees will get their regular pay during the shutdown. “The scale of impact is still unknown, and we want to do our part to protect our community especially while testing availability is unknown,” Marcario stated.
Hershey’s Chocolate World to shut down
Hershey Co. announced on March 13 that it will close its Hershey’s Chocolate World locations in Hershey, Pennsylvania and New York City for two weeks, beginning when the locations close at their usual times on March 15. For now, Hershey’s Chocolate World locations in Niagara, Canada, and Las Vegas, Nevada are set to remain open until further notice.
The company, an NCAA sponsor since 2009, also provided an update on its March Madness plans, saying it “is fully committed to continuing to support the NCAA and our annual program in partnership with many of our retailers—even in a time when the physical games and tournaments have been cancelled,” it said in a statement issued Friday. “While our hospitality and events programming surrounding Final Four activities have been cancelled, our products, including Reese’s Peanut Butter Cups, will still be found at all major retailers with corresponding NCAA-themed merchandise.”
Unilever, Ford opt for work-at-home
Unilever and Ford have joined the ranks of companies asking employees to work from home. Unilever’s policy, which follows a similar move by Procter & Gamble Co., includes a prohibition on all air travel except return flights. It is also requiring employees who do come to work to undergo thermal testing upon entry.
In a message to employees posted on Unilever.com March 13, CEO Alan Jope said any air travel currently booked, apart from return flights, will be cancelled centrally by the company’s booking partners. Unilever employees are also now forbidden to work from any company site other than their principal locations, enter a Unilever site if suffering cold or flu symptoms, invite any visitors into a site without prior approval of the site leader or attend any meetings of more than 20 people. Employees are required to self-isolate for 14 days if suffering from cold or flu symptoms, and apply hand sanitizer when they enter a company site. Hand shaking is now forbidden too, as employees are expected to use “non-physical greetings.” Jope said field sales and merchandisers should observe similar hygiene and social-distancing measures where possible, including connecting with retail customers remotely, and should minimize use of public transport. The work-from-home requirements don’t necessarily apply in China, where national authorities are allowing people to return to work, Jope said.
“We are continuing to support global and local authorities by donating hygiene products to support the fight against coronavirus, and we will be further stepping up these efforts,” Jope said. “I am acutely aware that these changes to our working arrangements will have a big impact on our lives,” he said. “None of the measures have been taken without careful thought and consideration about what this will mean for all of us, and I want to reassure you that we will support you through this change.”
Ford’s policy starts Monday. “We are instructing much of our global workforce—except those in business-critical roles that cannot be done away from Ford facilities—to work remotely until further notice,” the company announced.
Guided tours at Warby Parker
Warby Parker, the eyeglass company, is switching up the try-on tactics in its stores. Normally, customers are able to walk in, pick up a pair of glasses and put them on. Stores even have photobooths where customers can email pictures. But now, the brand is “providing customers with guided experiences throughout each of our stores so that we can sanitize glasses before and after each use—and we are training teams on social guidance best practices,” according to co-founders and co-CEOs Neil Blumenthal and Dave Gilboa. The execs also noted that Warby Parker recently added more disinfectant to stores after customers asked for it. All of the company’s stores, which number over 100 in the U.S. including seven in New York City, remain open.
More free delivery
Restaurants are doing what they can to keep customers. KFC says that starting March 14 it will offer free delivery through April 26 through its site, Grubhub or Seamless.
March 12, 2020
KFC pulls an ad
KFC pulled a U.K. campaign that focuses on “finger-licking” after the Advertising Standards Authority received multiple complaints that the content was inappropriate during the coronavirus outbreak.
Silk pauses brand ambassador search
Silk on March 12 paused a campaign searching for a “Granbassador” to give a “grandparent stamp of approval” on using its dairy-free Silk Dairy-Free Heavy Whipping Cream Alternative in desserts. The campaign, which kicked off March 9, included a trip for two to Silk’s Colorado headquarters scheduled for May or June. “Health is the number one priority for Silk and in an effort to keep all parties safe and minimize nonessential travel, we are pausing our search for the Granbassador at this time. We plan to resume the search later this year and will reach out when the application re-opens,” Silk, which is owned by Danone, said in a statement.
Cosmetics giant suspends in-store classes
Sephora reached out to North American customers on March 12 via email to provide an update on how it is keeping stores clean at a time when many are concerned about the spread of virus-carrying germs. In addition to more regularly disinfecting product displays, makeup testers and hygiene stations, Sephora is also suspending all free and paid in-store services, including makeup and skincare applications and classes.
Coors Light changes ad plans
Molson Coors on March 11 halted a planned March Madness campaign called the “Official Beer of ‘Working’ Remotely” because it did not want to look insensitive as many companies adopt work-from-home policies to deal with coronavirus. The ad, originally meant to play off the notion that people blow off work to watch the basketball games, was planned but never ran.
Hershey avoids human interaction ads
As more people practice “social distancing,” Hershey Co. on March 10 said it had pulled two ads that featured human interaction, replacing them with spots featuring only chocolate bars, text, and voiceover. Hershey is also “discouraging participation in large group meetings internally and externally until further notice.”
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