The Homa Files

TakeAway: Just because you were recently offered $6 Billion to be acquired does not mean you can do no wrong.

Groupon’s unclear response to the backlash from its Superbowl Ads was worse than the offense caused by the actual commercials. 

Groupon should take a lesson from Nokia about clear decisive message saving it from its earlier faux pas. 

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Excerpted from AdAge, “Groupon vs. Nokia: The Right Way to Respond when Backed into a Corner”  by Rosanna Fiske, February 17, 2011

When CEOs of tech and digital media companies speak, people pay attention. …everyone is listening to the titans of the tech industry.

…recent statements from two well-regarded tech CEOs made international headlines. …Groupon’s botched attempts at explaining its much-hyped and controversial Super Bowl ad. The second was intended to be far more subdued; it was surely not meant for a global audience of several hundred million — the leaked “burning platform” memo from Nokia CEO Stephen Elop.

[In case you missed it, Groupon’s commercial made light of the political and social problems in Tibet – bringing the company more notoriety, than fame.]

The Groupon fallout has many questioning the company’s maturity and ability to handle immense market pressures. …the time for brushing aside their sometimes cavalier approach to communications is long past.

What exactly has allowed Groupon’s Super Bowl ad to continue haunting the company, …concern has far more to do with a general lack of acumen in Groupon’s communications with its customers and stakeholders, rather than the visual offensiveness of its advertising.

… Groupon … can no longer rely on the goodwill of the digerati. Letting slip an errant message in an email blast is one thing; offending a good portion of 111 million U.S. consumers is quite another.

…, Groupon chose the path of least resistance, with multiple attempts at acquiescing to outside interests.

After initially issuing an apology, Groupon CEO Andrew Mason in a blog entry… attempted to explain the ads by rehashing some pre-Groupon history. … a rash decision to pull the ads. This … approach clearly affects the company’s image and reputation.

Contrast … to the skillfully-written Nokia memo. … CEO Elop eloquently expressed his concerns, comparing the company’s faltering sales and prestige to “standing on a ‘burning platform,'” while imploring that “[Nokia] must decide how [it is] going to change [its] behavior.”

Little chance analysts, investors or employees might misconstrue that message.

Mr. Elop’s impassioned plea was decisive and clear; … he delivered a superbly contrasting perspective of how to act … when your company is on the brink of international acclaim …

Also revealed … a long-held secret of successful brands: … executives appear to have their act together and explain the “how” and “why” behind their thinking.

Edit by HH

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