TIME WILL TELL IF TARGET’S PR TACTIC IS SUCCESSFUL

JohnLandsberg
April 28th, 2016

Public Relations practitioners are experts at taking advantage of current events in order to generate positive publicity for clients.

After the 911 attacks, companies lined up to show their support for the War on Terror. Anything they could do for the troops and their families was fair game with the hope they would receive some media recognition for their efforts.

Whenever there is a natural disaster anywhere in the country companies are quick to jump in with monetary support, supplies and other forms of assistance. They have learned their best chance for positive coverage is to announce a donation as soon as possible.

The reason for all this corporate goodwill? Obviously, to show their companies in a positive light. However, the over-riding goal should be to generate additional revenue and profits in the short or long-term.

In 2013, Target experienced a major retail disaster when it had more than 40 million credit cards compromised during the 2013 holiday shopping season. That may have resulted in the theft of as many as 110 million people’s personal information, such as email addresses and phone numbers.

After the breach, Target saw its profits fall an astounding 46 percent, according to Forbes (link). To add insult to injury, just last month the company was forced to shell out $10 million in a class action lawsuit to settle credit card claims (link).

Target needed some positive publicity and needed it quickly. A current hot issue involved transgender people after North Carolina said transgender people must use the restroom that corresponds to their birth certificate. Some performers like Bruce Springsteen immediately jumped on the issue, but no corporations had joined the fray.

Target very likely saw an opportunity to general positive publicity for its “inclusivity” by jumping on the issue. The beauty of it was there was virtually no cost for the PR effort. To offer to build unisex restrooms could cost millions of dollars. This involved no more than issuing a statement:

“We welcome transgender team members and guests to use the restroom or fitting room facility that corresponds with their gender identity,” the retailer said in a statement. “Everyone deserves to feel like they belong.”

As the company likely anticipated, initial publicity was overwhelmingly positive. The news media applauded the company for its politically correct stance on behalf of the LGBT community.

However, within days, it seemed the tide of public opinion about Target started to turn in another direction. In less than a week nearly one million customers signed a petition generated by the American Family Association saying they would boycott Target stores (Link).

Stories began to appear involving men in Target restrooms attempting to take pictures. The social media backlash to Target, particularly on the influential Breitbart News Network, was fierce.

And now it seems Target is on an island with its controversial policy. No other major retailer has jumped on the Target bandwagon. Most, like Walmart, very likely staying quiet while hoping to skim off Target customers.

Even Starbucks, considered a leader in political correctness, has not weighed in (Link).

Was Target wrong to jump on the issue? Only time will tell. It obviously did not anticipate the fierce backlash by its customer base. It most likely will not prove to be a move that will increase its bottom line.

“The decision to weigh in so strongly on such a divisive issue has to be worrying for holders of Target stock,” noted InvestorPlace. “Since the retailer’s April 19 announcement, TGT stock has dropped 6.5%.”

But of even greater concern to Target might be its new policy seems to be turning off its prime customers: women.

“The study further indicated that a growing number of shoppers — especially women — heard negative comments about the company,” said InvestorPlace. “Interestingly, brand perception of TGT is down to its lowest level in eight months.”

Companies have to be very cautious when jumping on issues for publicity. After Chick-fil-A’s CEO came out against gay marriage the LGBT community attempted a boycott of the chain. Customers responded so strongly that Chick-fil-A’s sales actually increased.

After a character on the TV show “Duck Dynasty” said he was against gay marriage the restaurant chain Cracker Barrel quickly announced it was removing all Duck Dynasty merchandise from its stores. That hasty decision was not thought through very well despite Jesse Jackson throwing his support behind the restaurant.

Cracker Barrel quickly realized it had made a huge mistake. Its loyal customers were furious and let the chain know they would be taking their business elsewhere. Within three days Cracker Barrel was forced to completely rescind its decision (Link) and ask for forgiveness.

Target was quick to publicize its restroom policy, and now the company now steadfastly refuses to reveal if the boycott is hurting sales. That will be the key whether this program is successful or not.

Target’s decision may pan out in the long run as an effective PR tactic. If sales and profits grow it will be time for high-fives in the corporate boardroom.

However, it could also be a decision its shareholders will regret for years to come. Only time will tell.

(Update: Signers to the petition have now surpassed the one-million mark. Target’s stock has lost $1.5 billion.)

5 Responses

  1. BOYCOTTS RARELY WORK
    Target is too big of a brand for any boycott to make much of a dent. I’ve rarely seen a boycott work in the modern era. Could the Cracker Barrel incident be from its location in more conservative states in the US?

    To be honest with you, I’m a former journalist and this is the first I’ve heard of a Target boycott, although I’ll admit I have been out of the loop for a few weeks on a project.

    We’ve entered a news media world in which people have the choice to consume media that only matches their value points. Instead of accepting reality, they create a new one. There aren’t really responsible debates with people who disagree with each other anymore.

    • JohnLandsberg says:

      I agree most boycotts don’t work and it is usually because they do not impact a corporation’s bottom line. However, so far Target’s market value has plunged more than $2 billion, which I guarantee will get shareholders’ attention.

      • Kevin says:

        TARGET SHOULD GET PREPARED
        Project Veritas put out a video in which a male and female went separately to the Title IX offices of two universities and explained that they planned to use the restrooms of the opposite sex in order to satisfy a sexual fetish.

        There was no push back by the staff member at either university, just laughter. One staff member just said not to say anymore so that she could claim ignorance over the plan.

        Target better get ready for the same kind of activism.

        • SOUNDS LIKE ACTIVISM
          That sounds like activism to me. If you’re working in public relations in 2016, you need to understand the social climate has changed. LGBTs are considered part of a protected status by most public corporations. If you’re working for an activist group (nothing wrong with that) that wants to advocate for a particular religious view, I would keep the focus on people rather than issues. If you want your message heard, just keep in mind that most university administrators and corporate executives are already going to view you as an extremist if you have issues with homosexuality.

  2. Mike Throop says:

    TARGET NOW STUCK WITH NARRATIVE
    Target has pretty much been dealt the hand it’s playing since it had to grovel for forgiveness before the “multicultural” crowd in Minnesota, when it was revealed the company had donated money to a “right wing” group in the state. The LGBT folks mounted the horses, and Target was beaten down.
    They can’t get off the narrative, ever.
    Mike

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    Published July 1, 2017 at 7:59 am - One Comment Since the presidency of Donald Trump began in January the public has had a unique view in seeing how many, many executives act when their true remarks/feelings/views go public. Unfiltered. It is often not a pretty scene. It̵ ...

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    Published March 2, 2017 at 8:46 pm - One Comment President Donald Trump has a rather unique way of dealing with the news media: He looks on the news media as needing him as much as he needs them. This tactic goes against everything media trainers (including us!) have preached f ...

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    Published November 10, 2015 at 10:23 am - 5 Comments In Journalism circles, having a degree from the University of Missouri was often a ticket for success. It is not only the nation’s oldest Journalism school, it is also one of the most prestigious. When rankings for the best ...