Covers the importance of Public Relations and how Virgin understands the power of Public Relations to build stronger brands.

1. Power of Public Relations
Overview

2. The actions of a
corporation, store,
government, individual, in
promoting goodwill
between itself and the
public, the community,
employees, customers,
etc.

3. The Importance of Public Relations
• Maintaining the organization’s relations
with its publics.
• Explaining the organization’s policy
through communication media.

4. Internal External

5. What does Public Mean?
Audiences
Individuals Stakeholders

6. Role of PR Practitioners

7. • Proactive PR
New product releases
Executive statement releases
• Reactive PR
Crisis response and management
• Rumours and urban
legends

8. Proactive PR
• Main role: product introductions or revisions
• Consumers are less likely to question the motivation
underlying an editorial-type endorsement.
• Product release
Provide relevant information of the new or existing
product by editor of third party media channels.
• Executive-statement releases
News releases quotes executives’ statements,
address company’s internal issues.

9. Reactive PR
• It is how organization act in
relation to the negative publicity
or accident.
• The reaction of the organization
effects on brand image.
• When done effectively, reactive
MPR can virtually save a brand
or company.

10. Case study: Cumbria Train Crash
• Sir Richard cut short a family holiday to see the
scene of the accident and visit the hospitals
treating those injured.
(shows timely respect and personal care of
victims)

11. Cumbria Train Crash
• He hailed the driver of the Virgin train, Ian Black,
who was badly injured in the crash, as a hero.
v staff-friendly culture of organization.
v promote the bravery of Virgin employee.
• The train itself was magnificent - it's built like a
tank.
v promotion of virgin
train’s safety.

12. Rumour’s and Urban Legends
• Consumers interest involves only those rumours that
involve products, brands, store, or other objects of the
marketing practice.
(Iphone 5 or galaxy S 2 ?
Should I wait or buy it now?)
v Commercial rumours
v Conspiracy rumours
v Contamination rumours

13. The decline of Mass Market
• Marketing primarily focuses on consumers
• Conventional approach
1. Development
2. Research
3. Advertising
4. Branding

14. The decline of Mass Market
Marketing = Advertising big bucks
Pepsi-Cola spends $100 million to launch Pepsi
one
Andersen Consulting spends $150 million to
launch its new name, Accenture
Bell Atlantic spends $140 million to launch its new
name Verinzon

15. The decline of Mass Market
• Advertising lacks credibility
79
67
63
59
47
37
22
17
11
10
9
Nurses
Pharmacists
Medical
Clergy
Judges
Bankers
Business
Lawyers
Insurance
Adver<sing
Car
Doctors
Execu<ves
Salesman
Prac<<oners
Salesman

16. Customer Focused Marketing
• IMC Elements
Public
Advertising
relations
Marketing

17. Public Relations Approach
• The PR approach
• Development
• Research
• Planning
• Communication
• Evaluation

18. Public Relations
• Public relations focus on:
*Employees
*Stockholders
*News media
*Others

19. Public Relations
• Public relations = Publicity
• Body Shop
• Starbucks
• Wall-Mart
• Viagra

20. “A good Public Relations campaign or moment
is something that feels like news rather than an
advertising”

21. Richard Branson PR moments
Mr Branson displaying his Mr Branson arriving at a press
feminine side at the unveiling conference for his space travel
of Vie, Virgin's range of venture, Virgin Galactica
cosmetics and toiletries

22. Richard Branson PR moments
Mr Branson baring his backside to mark the arrival of Virgin
Atlantic in Canada

23. Richard Branson PR moments
Richard Branson dressed up as a Bride to launch
their new product line Virgin Bride in 1996.

24. Reactive PR by Virgin
• Every company has dissatisfied customers
• In 2009, a customer complaint letter was
circulated and published around the world
regarding Virgin Airlines in-flight catering
services.

25. Complaint Picture 1
• The passenger described this as a “sponge with green
paste.”
• In his letter he says “Look at this Richard just look at it.”
“What have I done to deserve this?”

26. Complaint Picture 2
• Regarding this image he wrote, “Answer me
this Richard, what sort of animal would serve
a desert with peas in it?”

27. Complaint Picture 3
• The customer likened opening the main meal to
receiving a hamster for Christmas.
• He writes, “It’s your hamster in the box and it’s not
breathing. That’s how I felt when I peeled back the
foil and saw this.”

28. Complaint Picture 4
• “I needed a sugar hit. Luckily there was a small
cookie provided. It had caught my eye earlier
due to it’s baffling presentation.”
• “It appeared to be in an evidence bag.”

29. How did Virgin Deal with the Negative
PR?
• Richard Branson personally called the
passenger
• Issued the following statement:
“While we investigated his complaint
seriously, and following Richard
Branson’s phone call we’ve invited him
to our catering house to select the next
range of meals and wines we serve on
board. Then we can ensure his personal
taste is well and truly catered for.”

31. Presented and created by
Aishath Lamya Ibrahim 17228537
Haifa Mohamed Al-Harbi 16008251
Fernando Moreno Rodriques 16390948
Yujie Guo 16416814
Students from Latrobe University,
Melbourne Australia
IMC Subject
3rd September 2011

32. References
• The Age News. Costco Readies First Australian Outlets. Accessed on 25th Aug 2011. from
http://www.theage.com.au/small-business/smallbiz-marketing/costco-readies-first-australian-
outlets-20090721-droq.html
• BBC News. One Dead In Cumbria Train Crash. Accessed on 25th Aug 2011. from
http://news.bbc.co.uk/2/hi/uk_news/6391633.stm
• BBC News. It Is A Very Sad Day- Branson. Accessed on 25th Aug 2011 from
http://news.bbc.co.uk/2/hi/uk_news/6392935.stm
• Chitty. W, Barker. N & Shimp. T A. 2008. “Integrated Marketing. Communications, 2ed. Cengage
Learning: South Melbourne.
• Campaign Live. Campaign Media Awards 2000 – Best one off stunt. Accessed on 30th August
2011 from http://www.campaignlive.co.uk/news/17912/?DCMP=ILC-SEARCH
• Telegraph, Virgin on the Ridiculous. Accessed on 30th August 2011 from
http://www.telegraph.co.uk/travel/picturegalleries/4371078/Virgin-on-the-ridiculous-Sir-Richard-
Bransons-publicity-campaigns.html
• Telegraph. Worlds best Passenger Complaint Letter. Accessed on 30th August 2011 from
http://www.telegraph.co.uk/travel/travelnews/4344890/Virgin-the-worlds-best-passenger-
complaint-letter.html
• Telegraph. Virgin Complaint Letter. Accessed on 30th August 2011 from
http://www.telegraph.co.uk/travel/travelnews/4371036/Virgin-complaint-letter-Author-of-Virgin-
letter-offered-chance-as-airlines-food-tester.html
• YouTube. Richard Branson on Marketing and Business. Accessed on 30th August 2011 from
http://www.youtube.com/watch?v=8dhbqOlvx2U&feature=related

33. You are welcome to contact Nigel Bairstow at B2B
Whiteboard your source of B2B Asia / Pacific
marketing advice
http://www.linkedin.com/pub/nigel-bairstow/6/41b/726
http://twitter.com/#!/b2bwhiteboard
http://www.b2b.whiteboard.com