Today’s edition offers some lessons in the dos and don’ts of publicity stunts. Both Gucci and Adidas are red-faced and apologetic following online backlash against their controversial new products. Meanwhile, America’s IHOP and Britain’s River Island are both enjoying the fruits of well executed marketing campaigns. Enjoy the read!




Friday, 08 February 2019





Hello ,

Today’s edition offers some lessons in the dos and don’ts of publicity stunts. Both Gucci and Adidas are red-faced and apologetic following online backlash against their controversial new products. Meanwhile, America’s IHOP and Britain’s River Island are both enjoying the fruits of well executed marketing campaigns. Enjoy the read!

ADVERTISEMENT
Banner





United States


Legal battles ▪ Amazon studios is being sued for an estimated USD 68 million by actor Woody Allen who claims the online giant refused to distribute his film because of the sexual assault accusations against him. Meanwhile, CEO Jeff Bezos claims he is the victim of a blackmail campaign by National Enquirer over sensitive photos.



New opportunity ▪ Embattled department store Sears is back with a fighting chance following the approval of chairman Eddie Lambert’s USD 5.2 billion bid to buy the company, effectively saving 45,000 jobs.



Reporting results ▪ Mattel has seen a dramatic turnaround in quarterly results, causing the toy titan’s shares to jump 20%. Not such great news for coffee major Dunkin’, whose flat sales growth caused its shares to tumble 6%.




Europe


Ultimatums issued ▪ The European Union and other western nations have been cautioned by the United States against using tech from Huawei and other Chinese firms on important projects, or face a host of consequences. The German government had previously announced it had hoped to avoid excluding Huawei products for use on its 5G network.



New appointments ▪ British grocer Tesco has added to its executive ranks with the appointment of Christine Heffernan, a group communications director. Meanwhile, consumer good major Henkel has announced Sylvie Nicol will take up the post as vice president of human resources.



Openings and inaccuracies ▪ Ikea has opened a big box store in Greenwich, their first full-sized store in London in 14 years, and its most environmentally friendly yet. In New Zealand, consumers awaiting the arrival of the Swedish furniture giant to their shores will be miffed that a world map being sold by Ikea is missing their country.



Flashback Friday ▪ Direct selling retail strategies made famous by the likes of Tupperware and Avon are set to make a comeback in the UK. The prediction comes as consumer trends for personalised experiences and ‘social selling’ continue to grow across the retail sector.




Australia


Trouble at the top ▪ David Thomas has resigned as CEO of Australian department store David Jones for ‘personal reasons’. His departure is the third CEO resignation in five years, with his predecessor Paul Zahra also leaving for personal reasons.



Moving with the times ▪ Online shopping is having a significant impact on brick and mortar retailers in Australia, with 22 major retailers leaving the market or going into voluntary administration in 2018. Landlords of vacant spaces are being encouraged to re-purpose the areas into service-based facilities such as gyms and childcare.




Marketing and promo


Major fails ▪ Two major brands landed in hot water this week over product launches that were hailed as racist. Fashion icon Gucci has issued an apology over its ‘blackface’ jumper following online outrage, and sportswear giant Adidas also took a hammering over a shoe released during Black History Month which was entirely white and from their ‘uncaged’ variety.



Publicity wins ▪ American pancake house chain IHOP changed its name as part of a joke to promote its new line of burgers – and it worked – with the company selling four times as many burgers following the stunt. In Britain, high-end fashion brand River Island successfully launched its #thisisfamily campaign, aiming to raise of awareness of the diverse families that exist in society.