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In the world of social media, we learned this week that twitter applied for IPO on Wall Street. When I heard the news, I was really excited for all team members involved who endured the entrepreneurship journey. On September 12, 2013 at 5:00pm, a message from Twitter@Twitter stated the following:
We’ve confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale.
Twitter had been around seven years and it's getting hard to imagine life
without it.
Since Twitter launched on March 21, 2006, users have sent 170 billion tweets,
and the company has grown to more than 900 employees. That's according to an infographic from Dashburst that illustrates the current
state of the 140-character social network.
Here are a few highlights about Twitter:
Twitter has 200 million monthly active users.
Eighty percent of Twitter users access the social network on a mobile
device.
More than 60 percent (63 percent) of brands have multiple Twitter accounts.
With 33 million followers, YouTube is the most-followed brand on Twitter.
A 24-hour promoted trend costs $200,000.
Plus, did you know that Vine has 40 million users, and five Vine videos are
tweeted per second?
It took more than a decade,
but tech miracles are taking place on 34th Street
Macy's Inc. was one of a handful of major
retailers this holiday season whose sales were not stolen by the Grinch. Its
secret weapon against stingy shoppers? E-commerce. The 850-unit chain logged a
4.1% December gain in same-store sales, led by a 52% increase in online sales.
We have taken a number of
steps to make the shopping experience online mirror the stores, and vice
versa," said Jeff Kantor, chairman of Macys.com. "We want customers
to be able to shop Macy's whenever, wherever and however they prefer. Reaching
customers through stores, online and mobile gives us a lot of
flexibility."
To get ahead of the pack,
Macy's Chief Executive Terry Lundgren has moved the store beyond its
bricks-and-mortar roots to become more nimble technologically. Today, its
website employs 1,150 workers, 650 of whom are based in Manhattan (where they
make up a significant portion of the borough's technology workforce).
In the
past year, the department store, which had 2011 net sales of $26.4 billion, has
greatly improved its inventory strategy by building new warehouses and drafting
nearly 300 stores to act as e-commerce fulfillment centers. Online orders will
rarely be out of stock.
Macy's has also made its
stores more innovative: The Herald Square flagship this past fall unveiled a
39,000-square-foot shoe department where associates use iPod Touch devices as
cash registers, making checkout a relative breeze.
"The Internet has not
only helped Macy's engage and serve new customers, but it has also helped them
serve existing customers better," said Liz Dunn, a retail analyst at
Macquarie Capital Inc. in a recent research report.
Macy's Internet
transactions crossed the $2 billion mark for the first time in 2012, according
to a company spokesman. (The publicly traded company will report full-year
results at the end of February.) Macy's is banking big bucks on such digital
upgrades.
Though Macy's spent $764
million in 2011 on capital expenditures—a 51% rise over 2010—the spokesman
declined to say how much of that was spent solely on the digital sector. The
company's share price rose 19% in 2012 and currently trades at about $37.
Tough competition
Such growth is in stark
contrast to five years ago, when Macy's was losing market share to new digital
competitors like Gilt Groupe. Shoppers complained about customer service and a
website that was difficult to navigate. The department-store chain, which also
owns Bloomingdale's, is finally seeing the fruits of a 15-year-old Internet
strategy that has undergone its share of pitfalls.
"The department-store
sector invested early, before a lot of the technology was developed, and built
these homegrown solutions that had a hard time tying systems together,"
said Sucharita Mulpuru, a vice president and principal analyst of e-business at
Forrester Research. "Macy's has done a really good job of recognizing
those challenges and is probably one of the most advanced of the department
stores as a result."
Macy's still faces some
tough competition, however. Nordstrom, the Seattle-based department store known
for its customer service, reported an 8.6% increase in same-store sales during
the holidays. Several off-price brands—including TJX Cos., owner of the
Marshalls and T.J. Maxx chains, and Ross Stores Inc.—also performed well. Yet
Macy's, as the largest specialty-apparel retailer in the country, has the
muscle advantage.
It's been using that muscle
to improve the way customers find inventory. In late 2011, Macy's piloted a
"store-to-door" strategy in which stores, in addition to warehouses,
were used as fulfillment centers for online orders. The system specifically
targets the Macy's locations with an overflow of specific items, so that the
store can move the merchandise without resorting to discounting at the end of
the season. By late last year, the program had been rolled out to nearly 300
stores. About 10% of online purchases are currently fulfilled by stores.
In July, Macy's also added
a 1.3 million-square-foot distribution center for e-commerce orders in
Martinsburg, W. Va., its third such warehouse.
"They've had a real
breakthrough in terms of how they gain access to available inventory versus a
year ago," said Bob Grayson, founder of retail consultancy Grayson Co.
"They're not likely to lose a customer for an item being out of stock."
In-store customers are also
seeing technological improvements. When Macy's unveiled its new shoe department
at Herald Square, which was part of the store's $400 million renovation, it
installed 10-foot video-screen displays illustrating outfit combinations that
vary images throughout the day.
'Crossed the chasm'
In the jewelry departments
of some smaller stores, associates use iPads to show consumers merchandise
beyond what's in stock, an initiative that has been rolled out to 50 stores so
far.
"Digitally, they've
crossed the chasm of the worst of it—they've figured out how to integrate their
systems so the biggest expense is behind them," said Ms. Mulpuru.
"Now they have to take the assets of what's remaining and replicate.
Source:Macys
GM in talks with Facebook about return
to paid ads
General Motors Co. and Facebook Inc. are discussing the return
of the automaker as a paid advertiser about eight months after GM said it
would stop running ads on the social networking website, a top GM executive
said.
Alan Batey, GM's
interim marketing chief, said at the Detroit auto show that discussions with
Facebook officials were ongoing though the Detroit company had nothing to
announce about a return to Facebook as a paid advertiser.
"We're still
actively talking to them and looking at opportunities that come our
way," Batey told Reuters on Tuesday. "I wouldn't tell you that
there's a Mexican standoff here. We just didn't see the value" in the
ads.
Three days before
Facebook's May 2012 IPO, GM said it was dropping paid ads on the Web site
because they had little impact on consumers.
GM has previously said
it spent about $40 million on its Facebook presence, but only $10 million of
that was paid to Facebook for advertising. The rest covers the creation of
content and the advertising and media agencies involved.
Sources said last
summer that the two companies were discussing GM's return and Facebook
offered to provide GM with data showing the effectiveness of the Web site's
paid ads. However, Facebook at that time did not offer any concessions.
Batey declined to
discuss the current talks or to provide a possible timing for GM's return to
Facebook, where it still has pages for which it pays no fees to market its
car and trucks.
"I wouldn't want
to predict if there's something, but I also wouldn't be surprised if there
were some things," he said.
Also last May, GM said
it would not advertise on CBS during the 2013 Super Bowl because the ad spots
were overpriced. Batey said that decision remained in place.
Separately, Batey said
he had nothing to announce on GM hiring a permanent chief marketing officer.
GM's former marketing chief Joel Ewanick was fired last August for not
properly disclosing the full cost of a $559 million sponsorship deal with
English soccer club Manchester United.
Source: GM/Facebook
For
CBS in Particular, Super Bowl is About More Than Just Football
Big Event Will Be Used to
Promote Daytime, News, Radio and More
When most people think
about CBS, they likely conjure up the network's prime-time lineup, which
includes massive crowd-pleasers such as "NCIS" and "The Big Bang
Theory." But if CBS Corp., the company that owns the network, has its way,
TV fans who tune into the broadcast outlet to hear about all things Super Bowl
will also start to consider some of the company's less popular properties.
As disclosed in a recent
meeting with reporters, CBS Corp. intends to hitch the wagon of several
programs and assets to the grand event that is its Feb. 3 broadcast of Super
Bowl XLVII. In the days leading up to the broadcast, CBS will link its
"CBS Evening News," "The Talk" and "CBS This
Morning" to the Super Bowl, no doubt in the hopes the shows gain exposure
to the broad audience that will naturally be interested in the event. After the
game and immediately post-game coverage end, CBS will run a new episode of the
freshman Thursday-night drama "Elementary" and follow it with a
special broadcast of "The Late Late Show with Craig Ferguson."
Not only will the company
tie its CBS News and daytime shows to the Super Bowl, but it will also use the
girdiron classic to draw attention to its CBS Sports Network cable outlet and a
new sports-radio network it recently unveiled.
The Super Bowl broadcast
"is probably the biggest day of the year for the entire corporation,"
said Leslie Moonves, president-CEO of CBS Corp., during the news conference.
Other big media concerns
have used the Super Bowl to promote a wide array of other properties they own.
NBC used its broadcast of Super Bowl XLVI in 2012 to spark attention for its
NBC Sports Network, once known as the second-tier sports-cable outlet Versus.
In 2009, NBC ran an ad for the Hulu video-streaming service it co-owns during
the Super Bowl. (It's doubtful that we'll see a Hulu spot this year on CBS,
which has never invested in the property.) In 2011, News Corp.'s
Fox ran promos for shows like "Terra Nova" and "The X
Factor" that had been announced but had yet to debut on the air -- as well
as for The Daily,
News Corp.'s now-defunct iPad newspaper.
For CBS Corp., however,
the stakes may be somewhat higher. The company derives approximately 66% of its
revenue from advertising, according to research from Nomura Securities analyst
Michael Nathanson, and the bulk of those ad dollars come from its TV programs.
And unlike Time Warner, NBC Universal, Viacom
and News Corp., it lacks a major movie studio to spark revenue from
international film sales or a phalanx of top-tier cable channels to help drive
more funds from retransmission deals (though it owns Showtime and has been
pushing hard in recent years to secure retrans funds for its CBS network).
Broadening exposure of "The Talk" and "CBS This Morning,"
among others, could help the network grow the audience for such programs, and,
over the long run, charge higher advertising prices.
The bulk of the tie-ins
will have people like Charlie Rose from "CBS This Morning," Scott
Pelley from "CBS Evening News" and Julie Chen from "The
Talk" anchoring their programs at various points during the week leading
up to Super Bowl XLVII from a CBS broadcast center dubbed "Jackson
Square." At "The Talk," for example, rock band Train will serve
as a house band for the daytime gab-fest -- not the usual sort of thing for the
show.
CBS is also pushing some
of its top properties toward the game. "Face the Nation," which in
recent months has often trumped NBC's "Meet the Press" in terms of
viewers between 25 and 54, will serve as a Super Bowl kickoff of sorts by
broadcasting from New Orleans at 10:30 a.m. on Feb. 3.
At the height of her career, Brenda Barnes famously quit her big job at Pepsi to be with her kids. Years later, a massive stroke nearly killed her--and her daughter returned the favor.
Ever since I interviewed former Sara Lee (HSH) CEO Brenda Barnes and her daughter, Erin, at this year's Fortune Most Powerful Women Summit, people have been urging me to publish the video of our on-stage conversation.
I'm happy to share this exclusive interview here, during the holidays, because Brenda and Erin offer wise advice about where we super-strivers should place our priorities.
Brenda Barnes was the most powerful woman in the consumer packaged-goods industry in the '90s when she quit her senior post at PepsiCo (PEP) to go home to her family. She famously sparked the having-it-all debate--and went on to raise three great kids. Then she became a role model for dropping out and coming back successfully. She did it by joining a slew of prominent boards--Avon (AVP), the New York Times (NYT), Sears (SHLD), Starwood Hotels (HOT), and Lucasfilm, now part of Walt Disney (DIS). Stacking up that board experience, Barnes attracted the favor of recruiters and snagged the top job at Sara Lee, which she led for five years until 2010.
This was when a massive stroke ended Barnes' corporate career. And it could have ended her life. But something amazing happened. Barnes' daughter Erin, who had been nine years old when her mom quit the Pepsi job for her, graduated from Notre Dame the very week her mother had her stroke. Erin decided to quit the job she had lined up at Campbell Soup (CPB) so she could help her mom recover. Barnes came back to life beyond anyone's expectations. Together, Brenda and Erin redefined power and success.
You can read my exclusive story, The Rehabilitation of Brenda Barnes. And over this holiday season, cheers to our families and everyone who is there for us when we really need them.
The former CEO of Sara Lee was one of the most powerful women in business before she suffered a stroke that curtailed her career - but gave her a life.
Barnes, No. 10 on Fortune's Most Powerful Women list in 2009, is now working on a new business plan: her recovery.
FORTUNE -- In May 2010, Sara Lee CEO Brenda Barnes was at a Tuesday-night training session at a gym in suburban Chicago. She stepped away from the bench press, dragged her left foot, and collapsed to the floor. She couldn't get up. When the EMT workers arrived, Barnes, then 56, rattled off phone numbers -- her daughter's, her sisters', her doctor's -- without a problem. "I was controlling everything," Barnes recalls. "I kept repeating the information so they wouldn't blow it."
Barnes was still playing boss when she arrived at nearby Edward Hospital. But her condition deteriorated quickly. When the doctors asked her to follow basic commands -- stick out your tongue, lift your finger to your nose, shrug your shoulders -- she couldn't do any of it.
She wondered, Did I have a stroke? In fact, yes: She had suffered a hemorrhagic stroke, a very large bleed in the right side of her brain. She immediately went on leave, handing the reins to an interim chief; three months later, still struggling to do even the most basic tasks, Barnes resigned from Sara Lee.
Barnes isn't the first powerful executive to drop out of corporate life for personal reasons. In fact, she herself had stepped off the fast track once before: In 1997 she quit her gig as CEO of Pepsi-Cola North America to spend time with her family -- igniting the "Can women have it all?" debate that still rages -- only to return to the business world in 2004 as president of Sara Lee.
But Barnes's story offers an emotional look at what happens when a highflier's career is curtailed, involuntarily, at the top of her game. Her stroke, more than any challenge in her business life, showed Barnes the power of accepting reality, recalibrating priorities, and redefining success. "I hate not being able to do it all," admits this fiercely independent woman who learned to rely on others. In the process, she grew closer to her family. She also channeled the intensity that she once had for business into a recovery that she calls "miraculous."
Spending time with Barnes today in her home in Naperville, Ill., 30 miles west of Chicago, I found it hard to believe that just over two years ago she was not able to sit up or even hold her head straight. Back when she was running Pepsi (PEP) and Sara Lee (now called Hillshire Brands (HSH)), Barnes was always trim and youthful-looking, and she still is. The difference is that her left arm and left leg are now stiff from paralysis. She wears a leg brace. Her speech, meanwhile, is clear. And her mind is sharp.
While Barnes was starting her recovery, her colleagues at Sara Lee were wrestling with what to tell investors. For publicly held companies with sick CEOs, the rules are not very clear, as observers of Apple (AAPL) found out when Steve Jobs became ill. Three days after Barnes had her stroke, Sara Lee announced only that she would take a medical leave of absence.
The company disclosed no details. Barnes herself resolved the mystery. She directed her communications team to issue a press release on June 14 that read, "I suffered a stroke a few weeks ago, and I am now in the process of recuperating."
As it turns out, Barnes's stroke was not a complete surprise to everyone. Three years earlier, after feeling occasional numbness on her left side, she had checked into the Mayo Clinic. The doctors there told her that she had neurological issues that might eventually be problematic.
They also urged her to continue living her life as she had been. Barnes told only her family, her executive assistant, and Sara Lee's board about the medical report. "I don't like people worrying about me, cutting me slack," she says.
"Team Brenda": Barnes with her children, Jeff (left), Erin, and Brian, after a fundraiser
After her stroke, Barnes spent three weeks in the hospital and then five weeks at the Rehabilitation Institute of Chicago, the top-ranked U.S. rehab facility, according to the National Institutes of Health. At the start of her stay at RIC, "I couldn't hold my head up," she recalls. "I couldn't swallow. I couldn't eat. I had a stomach tube." One exercise required her to place foam balls in a crate beside her wheelchair. "It required every ounce of strength that she had," says her daughter, Erin, 23.
For the first time in her life, Barnes had to depend on others, including Erin, who had graduated from Notre Dame the same week her mother had the stroke. While her mom was fighting to survive, Erin was starting a sales job at Campbell Soup (CPB); within a month she decided to quit, move home for a year, and help her mother recover. "My mom left Pepsi when I was 9 to be home with us," Erin says. "Now my mom needed me. It was an easy decision to make." (Barnes's two sons, Jeff and Brian, live in California.)
During her months of intensive rehab, Barnes learned to walk, speak, shower, brush her teeth, button her shirt, put a contact lens in her eye ... get back to life. She threw herself into each humble mission with the same zeal she once used to address thorny financial and marketing problems. Rehab patients are instructed not to rule anything out -- and Barnes didn't. But by early August she realized she wasn't recovering quickly enough to return to work. On Aug. 9, three months after her stroke, Sara Lee announced her resignation. Barnes said in a letter to employees, "I've always looked at my life as a book, with each experience a new chapter. This chapter is certainly not one of my favorites, but it is only one of many."
Today Barnes is in some ways healthier than she's ever been. "I may not be able to move every part of my body, but I feel great," she says. She is sleeping 10 to 12 hours a night instead of six. "Sleep is such a healer." She still goes to rehab once a week to work on her balance and muscle strength. She can handle the stairs in her home, and every November she and "Team Brenda" -- a group of friends, relatives, and Sara Lee colleagues -- climb Willis Tower, Chicago's tallest skyscraper, to raise money for RIC, the rehab center. Last fall Barnes climbed three flights of the 108-story tower. She's aiming to do five at this year's event on Nov. 4.
"The hardest thing about having a stroke is not being able to be independent," Barnes explains while we chat in the tidy library of the home she built four years ago as she was divorcing her husband, Randy. Her illness, she says, brought blessings. It has strengthened her bond with her five sisters. She talks with each sister at least once a week. Her younger sister Laurna now lives with Barnes.
Barnes admits that she misses work. "I miss having a team and having that challenge," she says. One of her challenges now is to conquer her "left neglect," a condition that makes her see the right side of things -- a clock, a plate of food, the page of a book -- but not the left. "I walk and bump into things on the left side," she says.
Neuroplasticity -- the brain's ability to develop new pathways -- offers hope. "Brenda's recovery is far from done," says Dr. Joanne Smith, CEO of RIC. Barnes plans to drive a car again. While she's been tempted by calls about corporate board positions, she is resisting because travel is difficult. Also, she fears the corporate entrapment that she remembers so well. This is a woman who used to get up at 4 a.m. to squeeze in workouts and who spent half of her time on the road. "When I get passionate, I don't know my boundaries. It's my curse," she says, adding, "I can't let myself go back to working 15-hour days."
Barnes's advice to anyone else thrown off a career track: "You need a plan for yourself, just like you need a plan for a business." She adds: "I owe it to myself to focus on me." Fitting words, given that Barnes herself is a work in progress.
This story is from the October 8, 2012 issue of Fortune.
With more than 900 million active users, Facebook is the leading platform for brands to connect with consumers. To increase fan engagement, brands should post content that fans want to share.
Here are 10 tips for writing effective Facebook wall posts.
1. Keep it short.
People scan Facebook; they don’t read it. The longer the post, the less engaging fans find it. Buddy Media research shows that Facebook posts with 80 characters or less receive 66 percent higher fan engagement, and posts that are less than 40 characters in length receive 86 percent higher engagement.
2. Avoid complicated wall posts.
Interesting content can be added to wall posts in the form of links, photos and videos. The data shows that simple posts achieve the most engagement for the retail industry. The two most effective types of brand posts contain a single photo or use only words. According to Buddy Media, status-only posts receive 94 percent higher than average engagement.
3. Consider your audience.
Make sure you draw people into what you are saying by asking questions, editing and revising with the audience in mind. Discuss topics people love. Think that you are talking to a person, not a group. Even though you are speaking to your entire network, only one person reads your words at a time. Use personal pronouns and contractions and maintain a relaxed, friendly tone.
4. Ask questions.
People are twice more likely to comment on a post that poses a question. To drive comments, ask a direct question and ask for the response. This approach can help attract people who like to give their advice, opinions, or ideas. The key guidelines are brevity, ease of reading and answering, and interesting topics. Fill-in-the-blank posts are also extremely popular. They receive a great number of comments.
5. Use an eye-catching image.
There is no type of content that elicits a better response than photos. Posts with good pictures get better visibility in the news feed due to the higher EdgeRank score. When you share photos, make sure they’re eye-catching in a smaller version, as most people will see a reduced size in their news feed or mobile app.
6. Add links.
If links are good, topical, and regular, you’ll have friends clicking on them and leaving comments and likes. But avoid URL shorteners. Engagement rates are three times higher for wall posts that use the full-length URL. Use full URLs and let users know exactly where they’re going when they click a link.
7. Keep variety in your posts.
Don’t use images or links in every post. Keep it interesting by mixing in links, videos, questions, polls, and text-only updates. Don’t post about the same thing every time, especially if no one is responding or interacting. Mix up the type of text posts, too—some personal, fun, and some about current events.
8. Choose the right time.
The best time of the week to write is toward the end of the week. Weekend posts have higher engagement rates than other days of the week. Post one to four times per week. Wall posts written between 8 p.m. and 7 a.m. have 20 percent higher engagement rates. More people are on Facebook outside of business hours, so make sure to think of the time of the day when publishing. Posting one to two times per day produces 40 percent higher user engagement.
9. Tell fans what to do.
Your fans will follow your instructions; the simpler the instruction, the better. Ask fans to share, comment, or tell you something—fans will listen and respond by commenting. Driving likes happens by asking for them. Simple calls to action such as “Click like if you agree” often work well. Tell users what you want, and your Facebook page will grow.
10. Respond.
Interact and respond with users. For example, if someone asked for a photo, give it to them! Say something like “you asked for it, so here it is!” Acknowledgement is really important. It’s not only polite to acknowledge people’s interest, but it can take things to a new level if you continue to interact about a particular topic. You never know what you might learn or what good might come from it.
Will Its Reputation, Fundraising Efforts Recover From Planned Parenthood backlash?
New Print Ad Campaign
Six months after igniting severe backlash for pulling Planned Parenthood funding, nonprofit Susan G. Komen for the Cure is betting on a national ad campaign that features survivor stories to rally supporters. But as the organization preps for Breast Cancer Awareness Month in October, it's still fighting an uphill battle to restore its tarnished brand. In fact, industry insiders are wary about whether the nonprofit can restore its image, drum up donations and retain corporations' support when their contracts run out.
TV ads will air in mid-September featuring four different survivors, including a young woman diagnosed with Stage 4 breast cancer at age 21 and still alive to tell her story eight years later. Print ads will launch in October magazines, digital content will go live Sept. 5 and earned-media efforts are being planned to support the overall campaign.
"People very frequently see all the pink in October and don't understand that this is actually money that's being raised to help a woman down the street or in the worst part of town whose decision today is to buy bus fare or food for her kids," said Andrea Rader, Komen's managing director-communication. "We're telling that story through the people who [have] benefited from the research and outreach programs and advocacy work we've done and reminding people this is an organization that has meaning."
The organization typically launches fall ad campaigns each year, largely part to promote its races. But an executive close to the organization said this year's multimillion-dollar campaign outlay far exceeds Komen's traditional fall spending. And while last year's campaign encouraged women to be screened for breast cancer, the push this time around is all about bolstering its brand and image.
The campaign, executed by Burson-Marsteller's Proof, a WPP agency, also reflects a strategy to keep founder Nancy Brinker out of the organization's promotional efforts following her not-so-well-received presence during the February crisis, multiple executives told Ad Age.
In various media interviews and appearances, Ms. Brinker came across as out of touch, and her actions only exacerbated the communications flubs that politicized the brand in the eyes of many supporters. Shortly after announcing that Komen would withdraw funding from Planned Parenthood, the organization contradicted itself numerous times and then apologized for its actions. Eventually, Komen reversed its plan to withdraw funding, but along the way critics berated the organization for its slow response in social media and for letting right-wing, pro-life politics influence its decision-making.
"There have been recommendations for Nancy Brinker to keep a lower profile," said one executive close to the organization's strategy. "This is a long-term issue. [Komen] understands that, and it's time to build back trust."
Donations are down about 30% compared to a year ago, according to multiple executives familiar with the matter. When asked about that figure, Ms. Rader said it's difficult to determine how much donations have declined. Participation at some races, which serve as Komen's prime source of funding for community programs and research, has fallen from 1% to 35% in certain regions, she said.
And although Komen told Ad Age that it hasn't lost any corporate partners since the February uproar, there's talk of defection among PR players.
Carol Cone, the chairman of Edelman's Good Purpose group, said two Edelman clients have asked for advice on whether to renew their contracts with the brand. Even beyond Edelman, she said a number of corporate sponsors have said they're "seriously analyzing the relationship." She would not disclose the details of those conversations.
"Komen did power the breast cancer movement, but this [misstep] was so visceral for people on the left and right," she said. And while Komen used to be the big cause-marketing opportunity in town, the not-for-profit world has become smarter about working with corporate sponsors. When it comes to cause-marketing opportunities, said Ms. Cone, "there are more choices now."
Cheryl Welch, integrated communications director at General Mills, said her company is sticking with the charity. "Our partnership with Komen has helped support millions of women fighting the disease in communities across the country by funding education, treatment and research initiatives."
Last month the organization announced that Ms. Brinker would move into a new management role as chair of the executive committee of Komen's board when the search for a new senior executive is completed. Also, Komen president Liz Thompson announced plans to leave the organization in September.
Nearly six months after the departure of Karen Handel, who had been associated with the initial decision to pull the Planned Parenthood funding, the company is still searching for a public-affairs lead. In May, Leslie Aun left the company to become VP-communications at Venture Philanthropy Partners, and Rebecca Gibson, most recently a marketing communications manager and a nine-year Komen vet, left to take on a corporate communications role for Mary Kay.
Despite these personnel changes, which created a stir in the nonprofit world, Komen has remained intentionally quiet on the communications front until now. "We looked around and said, "We have work to do.' This was clearly a big event in our year, but it couldn't deter us from the mission," said Ms. Rader, regarding Komen's quiet summer. "We've acknowledged that there has been an impact [to the brand] and that's why it's more important than ever to remind people that the decision that was made was reversed, that we apologized for the decision and still have urgent need to take care of women."
In addition to Proof, the organization is working with Ogilvy PR on certain global communications initiatives, and earlier this year it hired The Herald Group to support its reputational efforts.
Gene Grabowski, exec VP and crisis expert at Levick, said what Komen really needs are more "third parties speaking on their behalf. Nancy Brinker can't save the brand."
He believes, however, there's still hope for the brand, even if it's "much diminished."
Ms. Cone agreed. "Cause invites people into something bigger than themselves. They fell on their sword when it was about Komen and rose to the sky when it was about a sisterhood fighting breast cancer," she said. "They still have a core and they should focus on the core."
The departure of founder Nancy Brinker, along with the president and two board members, doesn't undo any damage. It adds to its seemingly never-ending PR nightmare.
She still doesn't get it. I am talking about Nancy Brinker who finally announced her resignation as CEO of the Susan G. Komen For the Cure. Also departing are the breast cancer foundation's president and two board members.
Why doesn't she get it? Because she says these resignations had nothing to do with the controversy earlier this year when Komen announced it would cut funding of Planned Parenthood. Under immense pressure, it reversed its decision.
But the damage was done. The Wall Street Journal reports that fundraising is down across the country. Certainly, a lot has to do with the way Komen mishandled the crisis.
Among other things, it did not respond to criticism, wasn't proactive in getting the good side of its story out, appeared to ignore the damage it caused, and never issued a heartfelt apology. Even now, Ragan's PR Daily reported that Komen is not addressing the leadership shakeup on its Facebook page or Twitter feeds.
So now that she is leaving, why does Brinker still not get it? It has to do with the timing of the resignation and how she is leaving. In terms of timing, given the constant criticism over the last six months, it should have happened a long time ago. The longer she stayed, the more we were reminded of Komen's poor decision and how it was mishandled. Related to the timing, The Wall Street Journal reported, "Ms. Brinker said the changes had nothing to do with the Planned Parenthood firestorm."
Yeah, right. Four key people leave at the same time and you want us to believe it's a coincidence?
She continues to mess up Komen's image even as she leaves. Or is she really leaving? Sure, she is leaving her CEO post, but says she will assume a new position there after leadership roles are filled. Like what? Will her influence as founder hamper the new leadership?
This is a key factor for the new president and CEO to consider. If they remain in the shadow, or under the influence of Brinker, they may be doomed to failure. However, if the new officers are autonomous and Brinker stays away, they have a chance, over time, to get Komen back to its once revered status.
It will take new policies, effective outreach, organizational transparency, and an acknowledgement of past misdeeds. Only then might the replacements succeed and the true mission of Komen be realized.
The best thing Brinker can do for the organization she founded is make a clean break.
As to how she is leaving, The Wall Street Journal article noted, "Ms. Brinker said she isn't making the transition for personal reasons or at the urging of the board of directors.
"This is a time when I need to be, particularly, as visionary as possible and as outreaching as possible to people," she said.
What does she mean to be a visionary? Why does she plan on being "as outreaching as possible" (whatever that means)?
The fact that she fails to acknowledge the damage done this year is amazing.
I feel sorry for Brinker. She started a great organization for a wonderful cause, but somewhere she got lost. Unfortunately, she still hasn't found her way back.
In the wake of bleak second-quarter results, JC Penney says it is shifting its marketing from brand building to business building.
During a meeting with analysts to discuss second-quarter results, CEO Ron Johnson detailed the marketing shifts that have taken place since its chief marketer and merchandiser, President Michael Francis, abruptly departed after just eight months. JC Penney "went dark" in mid-June -- the same time Mr. Francis departed -- turning off TV ads, canceling the July catalog that was already printed and scrapping July newspaper inserts, Mr. Johnson said.
The upbeat, colorful marketing--(see the spot below)--rolled out during Mr. Francis' tenure made people rethink JC Penney and was entertaining, Mr. Johnson admitted, but it didn't reach the core customer and didn't build the business. Mr. Johnson also believes the brand was spending too much money on TV and not enough on print.
"In many ways we were trying to build the brand ahead of its time, when we really needed to build the business," Mr. Johnson said.
Now, JC Penney is investing heavily in what Mr. Johnson calls "traditional traffic-driving means." The retailer has 30 newspaper inserts planned for the back half, including eight in August alone. By comparison, it ran just 11 inserts during the spring season. To free up money for those investments, the retailer is cutting back on TV.
The tone of its TV ads has also shifted, with a focus on brands, products and pricing, rather than lifestyle. For example, back-to-school themed ads highlight a variety of denim brands, as well as free haircuts for kids in kindergarten through sixth grade. Mr. Johnson called the effort a "great brand deposit" and said the retailer has already given 500,000 haircuts.
At the same time, Mr. Johnson has done away with the confusing three-tiered pricing strategy in favor of a two-tiered system that consists of everyday low prices and clearance items. That strategy has tested well in focus groups in the last 30 days. September TV spots will highlight the changes.
Already, the new marketing and pricing are having an impact, Mr. Johnson says. In the past two quarters, when JC Penney cycled highly promotional time periods, traffic dipped between 14% and 20%. In the first 10 days the new marketing approach was in effect, traffic was down 7%, a "dramatic" improvement, Mr. Johnson said.
"Clearly, our new marketing, our new message is getting through," Mr. Johnson said. "We have more traffic in our stores. People are buying more, and we're encouraged by that."
The retailer reported a second-quarter loss of $147 million, which compares with net income of $14 million a year ago. Sales slid 23% to $3 billion, the lowest quarterly sales since at least 1989, according to data compiled by Bloomberg. Comparable-store sales fell 22% in the quarter while internet sales plummeted 33% to $220 million. Mr. Johnson told analysts gathered in New York this morning that the retailer would not meet its profit forecast for 2012. The retailer did not provide a new projection.
Despite the poor results, Mr. Johnson sought to put a positive spin on the news, telling analysts he is "completely convinced" the transformation is on track.
"It's very clear that withdrawing from our promotional model to a more everyday model has been harder than we anticipated," Mr. Johnson said. "But it doesn't change our conviction that the promotional model had run its course, and that we have a far better path forward."
Mr. Johnson also spent time discussing his plans for becoming a specialty department store, an "entirely new class of department store that doesn't exist today." He outlined plans to overhaul the retailer's technology platforms, as well as introduce a new store design.
Within a month, all stores will have Wi-Fi networks, and all stores will have some level of mobile point-of-sale this fall. By spring 2013, all employees on the floor will carry an iPad used to check out customers, view stock information and store layouts. Next spring, the retailer also plans to roll out self check-out.
A new store prototype is expected in fall 2013. Mr. Johnson said the site has already been selected and his team is working with the developer. The store will mimic a traditional mall with 100 shops, including branded shops and category-specific shops. It will also include The Street and The Square.
Mr. Johnson called the pair a "new retail interface." He envisions The Street as a place to relax and refresh, featuring places to eat and drink, as well as tables with built-in iPads for surfing the internet. The Square will be a seasonal space, featuring holiday decor and Santa during the Christmas season, for example.
"As I learned from Steve [Jobs] at Apple,the way you change the customer experience, it all starts with the interface," Mr. Johnson said.