Friday, June 26, 2009

Zicam warning a lesson in crisis communications

Matrixx Initiatives, maker of 19 Zicam-branded products that tackle colds, coughs and allergies, is in the midst of a public relations nightmare. Last week, the FDA advised the public to discontinue use of over-the-counter Zicam Cold Remedy Nasal Gel and Zicam Cold Remedy Gel Swabs. The FDA warns that 130 users of the products reported anosmia (loss of the sense of smell). The warning is particularly intriguing since Matrixx paid $12 million in a 2006 settlement to more than 300 Zicam users who made the same claim.

An FDA warning to discontinue use of a company's product is normally a shot through the heart, but Matrixx is playing this hand of crisis management very well. After all, Matrixx's Zicam brand has broad shoulders with almost 20 products bearing that name.

Matrixx's first good move is not picking a fight with a very well-regarded government entity. The FDA's credibility far surpasses that of any private company. So Matrixx, which claims it was surprised by the FDA's announcement, says it wants to work with the agency, including sharing its 10 years of scientific data on the products. Rather than taking on city hall right now, Matrixx is simply saying it disagrees with the FDA and wants to show them the facts. That's a good start.
Then Matrixx pulls the two Zicam products in question off the shelves and offers consumers full refunds. The FDA does not have the authority to recall Zicam, but Matrixx does so demonstrating goodwill for public safety.

In addition to the company's use of traditional PR blitzes on the airwaves and next day-full page ads in newspapers like USA Today; Matrixx is also handling this crisis with social media. The Zicam PR team updates followers on Twitter and provides its over 400 friends on Facebook with key information about the recall.

Matrixx has also overhauled the Zicam Web site with a video message from their CEO, wearing a button down shirt minus the jacket and tie, fully disclosing the FDA warning and telling their side of the story. The Web site also contains a frequently asked questions section about the warning and recall and also includes testimonials from customers who rely on Zicam for everyday living.

Matrixx is not pulling a David Letterman during the Sarah Palin battle of earlier this month and allowing two days to pass before addressing the issue. The company is proactively protecting its brand and company credibility, to the best of its ability, during this very public set back.
Crisis management starts immediately, assesses how to be credible to the public, is truthful and leverages all available communications channels.

Josh Sommers is president and CEO of Focus Media, a marketing and public relations firm serving the Hudson Valley. He can be reached at josh@advertisingandpr.com or 796-3342, ext. 303. Read his blog at focusonmarketing.blogspot.com or visit www.advertisingandpr.com. His column appears Fridays.

Friday, June 12, 2009

How to create an awesome trade-show presentation

If you've walked through any type of trade show, you know that if someone is going to get your attention, his booth must either dazzle your senses or really have something specific you need.
Most of the time, companies are selling products or services that consumers don't necessarily know they need. When preparing to promote your business at a trade show, be prepared to put your best foot forward.

The last thing you want to do at an expo is show up with just some business cards and sit at your table, hoping someone will come to talk to you.

The first step in creating a compelling trade-show presentation is signage and displays that will get you noticed. Make sure if people just breeze by your booth, they know your name and exactly what you do. So, less is more.

But design your signage and displays so that they grab the show attendees' attention. While keeping within your company's brand, trade booth displays that are highly creative and well-designed are the ones that will be most effective and memorable. There are many choices in buying easy-to-set-up, high-impact displays that act as a powerful backdrop to your booth.
Many companies that display at trade shows leverage multi-media to stand out. Showcasing your products and portfolio on a flat screen monitor or projector always adds to the sophistication of your presentation.

If you sell a product, try to have it at the show. If you sell hot tubs, have some hot tubs there. If you are a restaurant, provide some free samples. Tasting and touching your product is a better sell than even the most convincing salesperson.

Giveaways are also a great way to draw traffic to your booth. Often times, companies ask show guests to drop in a business card for a free gift drawing. For the cost of an iPod or free service or product from your company, you will get a lot of contacts and traffic to your booth with a simple raffle.

Finally, give visitors to your booth a bit of collateral to take with them. A brochure, flier or informational kit will continue your selling. Collateral handouts at trade show events that are well-done also add credibility to your pitch.

Just like the rest of your advertising, a solid presentation at trade shows should be a priority.

Josh Sommers is president and CEO of Focus Media, a marketing and public relations firm serving the Hudson Valley. He can be reached at josh@advertisingandpr.com or 796-3342, ext. 303. Read his blog at focusonmarketing.blogspot.com or visit www.advertisingandpr.com.

Friday, June 5, 2009

Look beyond boundaries

What are the boundaries of your business? Is your business limited by geographic boundaries? Do you direct your company's sales efforts toward only a few industries or markets?

Who would think a Middletown company known for professional garment cleaning would send a van every day to places as far north as Roscoe or some 50 miles south to Saddle River, N.J.?
Gilman's Cleaners has been doing its road show of pickup and delivery for three generations. Martin Dlugatz, the company's president, says his grandfather rolled out the free service when he opened the business in 1923.

Their business model is admirable and is something other businesses can strive to accomplish: Be innovative to grow outside your natural boundaries.

Quite frankly, there's no lack of choices in selecting a dry cleaner. Consumers in every major town have multiple options. Some cleaners are content with growing solely by walk-in business from their convenient location, but in the case of Gilman's, a steady-drum beat of print advertising promotes their pickup and delivery service to potential customers not in proximity of their Dolson Avenue location.

It's not just the ads selling Gilman's mobile service. Dlugatz leverages his pickup and delivery drivers as a commission-based sales force.

"We actually have eight vehicles picking up and dropping off clothes every work day," Dlugatz said. "This makes our business very diversified and has been a big part of how we're beating the recession."

The Internet is a huge asset for companies looking to sell products or services outside their natural markets.

ReStore in Newburgh, a furniture, lighting and building materials recycling facility supporting Habitat for Humanity's Greater Newburgh chapter, regularly leverages the Internet to sell items outside its traditional boundaries. Most would assume that ReStore's biggest customers come from Newburgh's surrounding areas, but many donated items are resold to far-away customers found on places like Craigslist.

ReStore manager Chris Knasiak said, "We could just focus all our attention on marketing to the local population, as they do make up most of our sales. But many times, we find out-of-the-area buyers willing to pay top dollar for hard-to-find items. Doing so with a free listing on the Internet is a great way to expand our market — for free."

ReStore's success in selling rare items to broader audiences is a great example of tapping into a demand that exceeds your geographic boundaries.

Strategize on what demands you can meet outside your natural markets. Can you take your product to customer's doorsteps like Gilman's? Do you provide or sell a specialty service or product like ReStore that you can offer outside your current boundaries?

Ask these questions now, and continue to ask them, so as to always be thinking of new sectors of growth.

Josh Sommers is president and CEO of Focus Media. He can be reached at josh@advertisingandpr.com or 796-3342, ext. 303.