Peddling Fear: Royal Spring Water

There are several ways to effectively market an IPO, but distress direct mail marketing with multiple messages from a mysterious third-party publisher is not one of them.

Of course, that did not stop Texas-based Royal Spring Water from giving it a go last week. A "special report" published under the banner of American Water Stocks, but devoid of contact information, claims two billion people will soon be in dire need of drinking water and that is why you should bank on a water stock with potential gains of 220 percent. As a communication observation, I can only guess
that Royal Spring Water is gambling on the idea that even a faceless smoke-and-mirrors endorser (but disclaimed as a paid non-endorser) can generate capital to offset operating losses.

Sure, this bottler and distributor of pure water from the Artesian wells of the "Ogallala Aquifer" has added a warehouse and distribution center in Los Angeles in order to meet sales demands in the state of California. It has reportedly concluded a private label deal with Vista Ford dealerships and Pacific Athletic Club, both in California, among others. And, its pitch that it has an exclusive "structured water" formula, sold under the label "RHYTHM Structured H2O — A life Changing Experience" sounds interesting enough.

Yet, this is precisely why one has to wonder about a company that would gamble with its reputation and possibly garner legal consequences by spending $20,000 with American Water Stocks in a mailer that comes dangerously close to crossing the stock "solicitation" line. (Right. For $20,000, you too could see your company projection to be "overperform" if you don't mind the half-page disclaimer underneath that refutes its own claim, assuming you can find the ghost of a company that did the piece.)

The reason why aside, the multiple messages mangle any sense of logic. The opening message to "forward-thinking investors" reads:

"Forget about oil shortages, flu pandemics, and terrorist attacks. The world is on the verge of a crisis that's unprecedented in human history. Because when water becomes scarce, nothing else matters.

What I'm about to tell you in this special investor report may shock you, sadden you, and even make you a bit angry. But I feel it's my duty to let you know how the world's most precious natural resource is in serious danger of depletion.

I'll also show you how the demand for clean, safe water is exploding around the world, and I'll name a company that's gearing up to supply this growing demand—and which could potentially make its early investors very wealthy as it grabs a share of the $420 billion market for freshwater."

The mysterious "I" person is never named, but goes on to fulfill his or her promise that 12 pages of fear marketing can indeed shock, sadden, and even make people feel angry. Unfortunately, not for the reasons they hope.

You see, it's no surprise to me that the executive management team of Royal Spring Water got their start as independent film producers of movies that didn't go anywhere (one was about how a transcriptor struggles to keep up with the rapidly changing technology around her. Oh my!). Today's equally compelling plot line links the end-of-the-world water to unbelievable stock gains. Simply put, it is investor prospecting communication at its very worst.

Look, there is no refuting clean drinking water is an issue worth consideration or that the bottled water industry is booming (Aquafina, Dasani, Arrowhead, and others all posted gains last year), but this hardly doubles as an excuse to misrepresent paid advertising as a special report from a third-party source. And personally, I would be disappointed to see more of it.

Lessons for today: First, never risk your company's reputation for a get-rich-quick stock scheme, especially when you seem to have a markable product. Second, never assume in today's world that your targeted mailer will only be seen by unsavvy investors willing to gamble on your hype. One of them just may be a member of the social media with an eye out for communication. Good. Bad. Or indifferent.

Recognizing Change: Jon Ralston

Jon Ralston is one of the most recognized political analysts in the state of Nevada, particularly in southern Nevada, reaching readers in print, online, and on television. Last Sunday, he made a candid observation about social media, especially in politics, in his Flash Point column header that appeared in the Sunday combined edition of the Las Vegas Review-Journal/Las Vegas Sun.

"These are embarrassing times for those of us in the MSM. That's mainstream media for those of you not savvy to the acronymic insults hurled our way by bloggers. We sit idly by and watch the bloggers do what we so rarely can: Move political establishment. And now it is on both sides.

First, the Democratic blogosphere types pummeled the Nevada party for partnering with Fox. What was just noise eventually catalyzed action and forced the dissolution of the partnership. Now, on the GOP side, led by activist Chuck Muth, the bloggers have forced the party to reconsider its caucus date, which now may be moving to Jan. 19 to compete with the Democrats. So I guess I should ask the cyber hit men: What's the next big story?"

Indeed. It's very telling when political analysts share observations with some apparent frustration over social media. It's not surprising to me that political bloggers are at the front of the social media pack, but not just because they blog. However, as I've said before, it's not the tool, but who wields it.

Muth wields it pretty well over at Citizen Outreach. Citizen Outreach is self-described as a limited-government public policy organization dedicated to putting the “public” back in public policy. Whereas Muth has always been adept at shaping policy and writing columns for various publications around the state, he has found blogging to be the best place to make a case for everything else. In Nevada, he is not alone.

The reasons are pretty simple. In politics, blogs are becoming especially impactful, primarily because politics has always been a forum where squeaky wheels either get the grease or, in some cases, get greased. Blogs are extremely useful in this quarter because unlike accepting the burden of becoming a print publisher, there is virtually no real overhead (print publications are exceedingly expensive to print and time consuming to publish if you want to do it right).

More and more legislators and elected government officials on every level, for better or worse, are also discovering that blogs can be a great way to keep in contact with their constituants, defend their positions, and perhaps maintain a base against future challenges. (Unfortunately, most will likely get in trouble because they write it themselves with little or no help from consultants, doing little more than penning the groundwork for their next campaign's potential hit pieces. Oh well.)

Regardless, as the MSM, as Ralston calls it, continues to see the influence it has enjoyed in the past erode, some will get grouchy about it. Others will recognize it for what it is: a redefinition of the landscape and the roles people play in them.

The way I see it, social media is suggesting the mainstream media take on new marching orders, asking them to cover the news rather than set it or have an agenda. Or, in other words, maybe traditional media was never meant to move the political establishment, but rather to report that movement. You know, tell the truth and shame the devil. It's an honorable profession, one devoid of stating which party you belong to or whether you personally think more taxes are in order.

Certainly, in some cases, mainstream media took the wrong path somewhere along the line with too few actually acting as political analysts and too many acting like the political activists they were supposed to cover. It seems to me this is precisely why online self-proclaimed media watchdogs such as Media Matters and News Busters broke onto the national scene to begin with, each claiming that media bias is too conservative or too liberal (sometimes both at the same time, depending on the topic).

Labels, labels, everywhere labels. So let's set the record straight. There are no cyber hitmen. There are only political activists with a new tool.

There is rampant media bias, except in rare instances when the truth actually overpowers political leanings (newspapers have been known to aggressively support candidates, but wash their hands of them if any corruption is exposed, preferably before people realize the paper chastising them today helped get them elected last month).

There is little difference between what Ralston did in 1993 when he began publishing the political newsletter "The Ralston Report," except that bloggers have less overhead and don't ask their readers to pay an inflated subscription price.

There really are no "bloggers" beyond those citizens who write online diaries, even though the label is often bandied about with ardent enthusiasm or apparent attempts to discredit (sometimes at the same time). In actuality, there are simply new political activists who never had a voice before, or, as in my case, industry experts who are willing to share their insights or business people who see the natural crossover to employ blogs as a tool not all that dissimilar from politics.

How so? While I maintain it's not for every CEO to have a blog, it does provide an answer to management consultant Laurence Haughton's question over at Recruiting Bloggers.com: "But what tells you that 'all the talk about how companies need to have a dialogue with customers' is serious talk?"

A few graphs up, I mentioned legislators beginning to use blogs to have contact with their constituants, defend their positions, and perhaps maintain a base against future challenges. Is that so very different from one of several business blog uses: connect with customers, promote products, and build brand loyalty? Unless you're hung up on semantics, not really.

Blogging ROI: ADWEEK

ADWEEK said it all about blogs.

"Despite all the talk about how companies need to have a dialogue with customers —it was brought up yet again several weeks ago at the 4A's Media Conference by Procter & Gamble chief marketing officer Jim Stengel—only a handful of CEOs, outside of the technology industry, are blogging."

So why is this? Debbie Weil points to the Forrester's report, which revealed 60 percent say the ROI of corporate blogging does NOT need to be quantified and/or tied to the bottom line.

Why the heck not?

Maybe I'm just feeling melancholy because I wrapped up my last class this spring, but I'm feeling disgusted by the folks driving the social media bus (and I don't mean Weil; she's actually very good). By in large, the bus drivers all agree that social media is a tactic not a strategy, but then they run around and pitch it as a strategy and wonder why the CEOs are not creating social media budgets. Well, against the wishes of my partner who says I give away too many ideas, I'll tell you why.

Blogs are not hammers. They are 5-in-1 tools.

I learned about 5-in-1 tools when I worked part-time as a colorologist at Sherwin-Williams (the guy who matches your paint color to a pillow case) while trying to start my then freelance writing services business on a monochrome Mac Classic and a fold-out kitchen table in a one-bedroom apartment. (My, how things have changed.)

5-in-1 tools are cool because the blunt edge can be used to open a paint can and, in a pinch, it can double as a flat-head screwdriver to tighten or loosen screws. The sharp edges are useful to remove paint. And the pointed edge can be used to get into the crevasses and remove a lot of debris. There are many other uses; all you need is imagination.

That's what selling blogs is about. After you get past the ridiculous term "blog," you have to identify where the technology might be best applied for that specific company. If you do that, the ROI becomes easily measured.

Unfortunately, communication-related professionals (advertising creatives, public relations practitioners, etc.) are running around saying CEO blogs are the first step. That is not going to fly, so give it up.

Blogs don't have to be about CEO insights (though that may be useful for some companies) and, in some cases, they probably should not be. Instead, the application of a blog is best determined on a case-by-case basis. Like what? Here are a few ideas ...

I'm working on three Web sites right now where the client balked at blogs, but loved the idea of a news feed instead of scrolling word files.

The general concept is that the news feed highlight "box" will appear on the front page of their Web site with the latest three items. When clicked, they will go to a blog page that is seamless from the rest of the design. There's the mysterious example of a social media newsroom that targets both social media and traditional media. Oh, and there will be no comments, but "labels" will help journalists find related releases.

Even better, because it is a hybrid for traditional media and social media (and customers), the client won't have to be as sensitive to the rules of "newsworthiness" when they post. The releases that are newsworthy can be sent to traditional media and social media as applicable with a link to the "newsroom." Those that are not will simply appear on the blog.

Or how about this? When you add up the expense of a face-to-face executive meeting, some companies will invest six digits per hour. So if you can cut out even one executive meeting, you've more than paid for a private, secure executive blog that will enhance executive communication so the HR people know what the communication people are doing and vice versa. It's better than e-mail and provides a history.

Or what about this? Create an internal employee-only blog on an intranet that engages employees in real time and encourages them to give feedback so you can capture all those great ideas that never make it past the front line.

Or what about this? A blog that is really a living FAQ page. So rather than be static with the most common questions and answers on a PDF that was created by the best guess of communication people, you can begin to capture questions in real time and have the answer, linked by labels and search engines, for anyone else who happens to come along.

Or what about this? A joint or cross-linked internal-external blog between corporate human resources, recruiters, and maybe corporate communication so everybody can stop arguing about budgets and work together for a change.

Or what about (fill in the blank)? Give me a company to evaluate and I'll be happy to consult on how they might best apply this amazing 5-in-1 tool. For some folks, I'll even tell them how to potentially earn bucks on their blog. It's not that difficult, er, well, maybe for some people...

I suppose that is the real question. Why aren't communication-related people getting it? Because for years and years, they have created mini-ecosystems where marketing, advertising, public relations, investor relations, internal communication, government affairs, community relations, and half a dozen other supposed specialties are so segregated that they are all fighting over the same limited, and perhaps shrinking, budget.

Simply put, the people who will win in the years ahead are pragmatic generalists who see strategic communication as the means to shape a corporate message based on the company's business model and then deliver that message by perhaps overseeing those various specialists who have grown too comfortable in their roles as tacticians and fooled themselves into believing departments should jockey for leadership in order to have more influence over the real strategies of a company.

In the future, I will hazard a guess that the communication industry (as I call it) will not consist of designers, copywriters, public relations specialists, etc. but rather communicators because that is, and has always been, the real function of the job.

If you need real evidence that these titles are getting in the way of progress, take a hard look at how social media is being developed. It's apparent with different sub-industry people trying to apply this 5-in-1 tool to their specific sub-niche without looking outside their own area of speciality, leaving CEOs confused, unconvinced, and wary about missing the bus.

Maybe they would not miss the bus if more communication specialists would stop trying to make companies conform to a tool, but rather make the tool work for the company. If you ask me, if anyone starts to do it right, then social media might actually produce tangible results or, better yet, ROI. If not, we're going to be wallowing in discussions about whether social media is worth it or not for the next decade.

Okay. Sorry for the interruption, you can all go back to the important task of twittering. I have a meeting to go to on this very subject.

Receiving Recognition: Kamikaze

The reason we're sometimes referred to as hired guns in communication-related fields (advertising, marketing, public relations, political campaigning, publishing, social media) is because we're very adept at meeting specific needs (filling niches no one else will) under the umbrella of strategic communication.

Some advertising agencies hire us for copywriting, creative direction, and public relations support; some public relations firms hire us for advertising support and overflow work; some companies hire us direct to fill mini-niches for departments or to provide overall communication consultation and implementation, helping top executives align their communication.

It seems like a mixed bag to be sure, but I like to keep things interesting. I also fully admit it sometimes mangles our message (are you a public relations firm ... um, no, but we can support your public relations efforts), but we've grown comfortable with front-end confusion in favor of serving select clients. (Don't get me wrong. We have a message and you can find it at Copywrite, Ink.) The result is always interesting and the diversity of work keeps things engaging.

Kamikaze provides an excellent example because, for the most part, they feel very comfortable in managing most of their communication (eg. they designed their Web site). However, they wanted some very specific help in developing a new logo and stationary package.

When judged by major market advertising agencies, they said my work with Seattle-based designer Curtis Sharp was spot on, earning a Bronze Addy Award last Saturday at the Las Vegas Advertising Federation Addy Awards. We're honored, mostly to maintain our presence in the market and to provide our client additional exposure.

To appreciate the logo, it might help to know that Kamikaze is the divine wind of worldwide entertainment, aerial acrobatics, camera mounts, and rigging. The mark is the culmination of "flying people, the rising sun, and the first letter of the name." The mark can also stand alone, works in one color, and easily imprints itself as a recognizable icon.

More importantly, Trent Sherrell and Virginia Reddin are great people. In fact, they were one of the first to fly in on our online merchandise concept Back Lot Projects, allowing us to add their logo to giftware. The store is still in development, but we already have signed a sponsor agreement with a very visible in-market non-profit organization.

We're about a month out from adding five designs to help them raise funds; tomorrow I'm meeting with another not-for-profit prospect. As the product lines grow so will the potential for all our participants.

All in all, regardless of the strategies and tactics we're asked to assist with, there are common denominators that stand out. We apply strategic communication to everything we do (whether or not we tell the client that is what we are doing). That means everything from designing a logo with an assist from an out-of-market designer to developing what we call a core message system that would make tactical decisions (like how to employ social media) super easy.

In closing, I would like to again thank Kamikaze for being a great forward-thinking client and receptive to a brand-driven mark that drifted away from some early ideas. Also, a big kudos to Sharp for not exhibiting any designer ego in jointly developing this logo that will help take Kamikaze internationally. Great ideas. Great results. That's what it's supposed to be about. Thanks and congratulations!

Selling Change: Roehm & Womack

Emotional Intelligence enthusiasts might see a "change agent" as the perfect person to help a struggling company or industry out of a rut, but CEOs need to be careful with them because change agents can put big holes in the wall as easily as they can pound nails in the right spot.

In other words, a change agent might fearlessly introduce new ideas to enhance a company. Or, a change agent might might become addicted to seeing themselves influence the world around them. In a marriage, one might respark the existing relationship while the other will have an affair.

Juile Roehm and Sean Womack seem to be the latter. Unable to secure a dream offer after the Wal-Mart scandal, they are back in action, pitching a concept that "change for the sake of change" really works, because, well, everything is changing so everyone must change all the time. They call it "marketing 2.x" because they say people are more receptive to "upgrades" than "changes."

There is an irony here because the real drawing power of the dangerous duo seems to have little to do with anything new. Roehm has made sure of that. Back in December, she said "I have enjoyed my time at Wal-Mart and I wish my many friends and colleagues much future success." Of course, that was before she filed the wrongful termination suit, which seemed to beg that Wal-Mart release all its evidence of the illicit affair and other ethical breaches that broke company policy (to say nothing of the vows they once had with other people). As the old saying goes, be careful what you wish for.

As a self-proclaimed marketing expert, she should know that when you wrap up a brand too tightly to a single negative event, eventually the incident will become the brand. It is the very reason that not all publicity is good publicity. Sure, you might capture headlines, but with what consequences? Did Firestone benefit from denying the need for a recall? Did Stoern succeed in establishing scientific credibility? Does anyone really want to hear Barba sing?

Embrace the wrong message and sooner or later everything published about you on the Internet will stick, proving that what is published on the Web can impact your personal brand and future employment. This is the very reason Roehm was ill-advised to file a wrongful termination suit, further damaging her already questionable credibility as a public figure.

In Wal-Mart's countersuit, there are even claims that the pair "misused the agency review process and engaged in travel paid for by Wal-Mart and for the ostensible purpose of furthering Wal-Mart's business interest, but for the actual purpose of spending personal time with Womack." As reported by BRANDWEEK, the court papers reveal Womack was very candid in his e-mail during the review process: "Speaking of equity ... we're both interested in having a stake in our next gig ... More importantly to you, in the two of us you have a team that can help lead your organization in a powerful way. But the opportunity will need to be broad enough."

In another signed "Sean & Julie," the message was: "P.S. These Gmail accounts are WM [Wal-Mart] safe. So, we can have candid conversations."

What lessons can be re-learned from all of this? Several. Not all publicity is good publicity. Never attach yourself too tightly to one bad incident. Protect your personal brand by being ethical, if nothing else. While adaptability is an asset, don't let anyone fool you into believing that change for the sake of change is a good idea. And, as I have said before, e-mail is NEVER private.

Punting With Legal: Roehm

As if Wal-Mart didn't have enough antics from Julie Roehm last year, the retailer has filed a countersuit against Roehm's legal punt. The suit purports to include the texts of steamy e-mails between Roehm and another former Wal-Mart executive, Sean Womack. I'll be looking at this issue a bit more tomorrow (since I keep suggesting that e-mails are NEVER private).

In the interim, you can catch a good summary of the story by BRANDWEEK. There, you can even see things like a message from Womack to Roehm as saying: "My Gmail is secure ... write to me. Tell me something, anything ... I feel the need to be inside of your head if I cannot be near you."