Here are some videos that you can use with Chapter 14 and the section on Public Relations.
- According to the first video, what is public relations?
- The premise of the second video is that PR should be part of marketing. Would you agree or disagree? What support does the video give for blending of public relations and marketing?
- From the third video, identify the seven ways social media now impacts crisis management.
- Discuss how firms can use social media to manage a crisis.
Lululemon Athletica’s former Chairman and founder, Chip Wilson, created much controversy for the Lululemon brand of yoga and exercise wear. He stated publicly that he favored child labor in developing countries and claimed that cigarette smoking and birth control pills lead to high divorce rates and breast cancer. To top it off, he further claimed that Lululemon doesn’t manufacture clothing for plus-size women because it requires too much material, making the product too expensive.
Crisis management suggests that companies must immediately tackle any controversy that affects the company. This ABS News Report shows how the company’s representative handled the controversy…. not well…
You may also want to look at Lululemon.com’s website.
1. How do you, as a consumer, evaluate the Chairman’s apology?
2. How would you advise the company’s Board to handle such a crisis? Explain.
3. Assume that you are a Lululemon Athletica’s consumer. Would you continue to purchase the company’s products? What should the company to do make it up to its consumers, many of whom were insulted by the Chairman’s comments?