Small company, big following: Popchips

Popchips, established in 2005, may not be the best known snack food, but the company has done a great job developing a social media presence that rivals its better known competitors. In fact, when the company started it relied on word-of-mouth and grass roots marketing, which included social media, rather than mass media (Hong, 2013). The content included endorsements from high profile celebrities such as Ashton Kutcher, Katy Perry, and P-Diddy. “That strategy helped it secure distribution in 30,000 retailers across the country, as well as private-equity firm infusions, along the way” (Lukovitz, 2014).

As of today, Popchips has:

•         408,634 “likes” on Facebook (https://www.facebook.com/popchips)
•          42,000 followers on Twitter (@popchips)
•          1,497 followers on Pinterest (https://www.pinterest.com/popchips/)
•          Upwards of 2 million views on a single video on YouTube

Let’s compare this to Lays, the number one selling potato chip in the US.  As of today, Lays has:

•          7,285,164 “likes” on Facebook (https://www.facebook.com/lays)
•         322,000 followers on Twitter (@LAYS)
•          1,581 followers on Pinterest (https://www.pinterest.com/lays/)
•          Upwards of 12 million views on a single video on YouTube

If you just look at the numbers, you may think that Lays is doing a much better job with their social media efforts than Popchips, but I would argue that. Popchips annual revenue is approximately $93 million (Popchips, 2013) whereas Lays is approximately $11.3 billion (Frito-Lay, 2014). Further, Popchips employs only 90 associates (Popchips, 2013) while Frito lay employs over 50,000 (Our Vision, n.d.). With all of this in mind, I think Popchips has been quite successful. The company’s videos have gained a huge audience. I would recommend Popchips builds on its success and continues to post quirky videos featuring celebrity endorsements throughout its social media channels.

While an article in PracticalEcommerce mentions “The only way to capture and quantify how often social media influenced purchases…is to ask visitors and customers” (Wilson, 2012), I would argue in Popchip’s case, they could equate product awareness and sales to social media since the company doesn’t focus on other, mainstream media.

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References:

Frito-Lay (2014) Forbes. Retrieved from: http://www.forbes.com/companies/frito-lay/

Hong, Nicole. (2013, February 20). New Kind of Chip Pops on the Scene. Wall Street Journal. Retrieved from http://www.wsj.com/articles/SB10001424127887323764804578314071686763506

Lukovitz, Karlene. (2015, September 25). Popchips' Next Stage Includes TV, Redesigned Site. Media Post. Retrieved from: http://www.mediapost.com/publications/article/234886/popchips-next-stage-includes-tv-redesigned-site.html

Our Vision (n.d.) Frito Lay. Retrieved from: http://www.fritolay.com/company

Popchips (2013) Forbes. Retrieved from: http://www.forbes.com/companies/popchips/

Secure or not secure? That is the question.

Considering the number of high-profile stories regarding security and information breaches this year, social media security is of the utmost concern for companies. One recent example involves Burger King in 2013. An “anonymous” poster under the alias “McDonalds” took over the Burger King’s Twitter account and proceeded to mock the company. Burger King was able to quickly regain control of the situation (and even gained quite a few new followers in the process) but not everyone is so lucky (Colbert, 2013).

Threats can emerge for a number of reasons, including malicious software in the code on social media sites, advertising and apps; employees posting confidential information; scammers pining for personal information; and lack of training for employees and company representatives (Nerney, 2011).

For this week’s post, identify a company that has experienced a security breach on its social media sites. Consider the following:

• What impact did the hack have on the company? (financial, reputation or other)
• How did the company respond to the situation? Do you agree with the approach? What would you have done differently?
• Was there something the company could have done to prevent the breach? What measures should be put in place to prevent a breach from happening again?

This week’s assigned readings will be helpful:

• Internet 2 Wiki, Tips for Safe and Secure Social Networking (Read online)
• Microsoft, 11 Tips for Social Networking Safety (Read online).
• McAfee, 15 Social Media Security Tips (Read online).

References:

Colbert, Annie. (2013, February 18). Burger King Twitter Account Hacked. Mashable. Retrieved from: http://mashable.com/2013/02/18/burger-king-twitter-account-hacked/

Nerney, Chris. (2011, May 31). 5 top social media security threats. Network World. Retrieved from http://www.networkworld.com/article/2177520/collaboration-social/5-top-social-media-security-threats.html

Building a social media community through a "flavorful" contest

Frito Lay has successfully created a community around a seemingly average product, potato chips. The company has a strong Facebook and Twitter following as well as a corporate blog called “Snack Chat Blog”. But most notably, Lays has successfully engaged with its customers through the “Do Us a Flavor” contest.

The “Do Us a Flavor” contest asks customers to submit their ideas for potato chip flavors and then encourages others to vote on flavors they would most like brought to market. After the initial submissions and votes, the company narrows down the flavors to three and produces them for a limited time to gain additional votes before announcing the final winner. The overall winner receives $1 million.

The contest is hosted on a dedicated microsite and Lays links to it through its website and social media accounts. To extend its reach, customers and fans can share their submissions as well as favorite flavors to their friends on social media sites. The voting and sharing aspects make the contest very interactive and engaging for fans.

The contest has successfully gained significant buzz for Lays. In the first year, 2012, the company saw 3.8 million fan submissions in just over two months (Mitchell, 2013) and in 2014, the company received over 14 million submissions (Snack Chat Blog, 2014).  Not only does the company receive a ton of buzz from the contest, but it also encourages sales in the process. By producing the three flavors for a limited time, fans are compelled to try the flavors and vote. It’s estimated that the contest lifted sales revenue 3 percent (Associated Press, 2014).

Lays has found an extremely successful “recipe” for the contest and community (pun intended). The company creates initial engagement with customers through idea submissions, then continues engagement by producing the flavors for votes, and once the winner is selected, the company gains tremendous PR. What more could a company ask for?

When considering the tremendous success of Lays, it’s interesting that more food and beverage companies haven’t tried to replicate the program. I’d personally like to see an Oreo flavor contest.  

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Mitchell, Elizabeth. (2013, February 19). Lay’s ‘Do Us A Flavor’ Contest: Customers Vote For Their Favorite Chips. AdWeek. Retrieved from: http://www.adweek.com/prnewser/lays-do-us-a-flavor-contest-customers-vote-for-their-favorite-chips/58848

Snack Chat Blog. (2014, October 20). Meet the Lay’s “Do Us A Flavor” Winning Flavor! Frito Lays.  Retrieved from: http://www.fritolay.com/blog/blog-post/snack-chat/2014/10/20/meet-the-lay-s-do-us-a-flavor-winning-flavor

Associated Press. (2014, October 21). Wasabi Ginger wins the Lay's potato chip flavor contest. NY Daily News. Retrieved from: http://www.nydailynews.com/life-style/eats/wasabi-ginger-wins-lay-flavor-contest-article-1.1982424  

Building Relationships Through Social Media

Retail giant Target is a social media powerhouse. It has a strong presence on virtually every popular and emerging social media platform. Its audience totals over 138 million across Twitter, Facebook, Instagram, YouTube, Pinterest, Vine, and LinkedIn (Hitz, 2014).

Target’s overall social media strategy goal is to “spread brand love” (Curry, 2013). The company succeeds because “it attracts consumers using a 360° presence through numerous channels and in different functions to create buzz and awareness” (Badenhausen, 2013). Target engages with its followers through a variety of posts regarding company news, promotions, tips for using products found in their stores, and seasonal messaging. However, the key to Target’s success is its real-time responses to customer posts. The company even has a Twitter page dedicated to guest service questions (@AskTarget). On average, Target “responds to 64% of comments within the hour, and 99% of comments within 24 hours,” which emphasizes the company’s commitment to excellent customer service (Hitz, 2014).

https://www.facebook.com/target

@Target

Late 2013, Target experienced a hiccup when a security breach affected 40 million credit and debit card holders who made in-store purchases during the holiday season (Burg, 2014). At this time, Target made a few social media, and general communication, missteps that have had a significant impact on its reputation.

1.       Target didn’t immediately alert its customers. (Burg, 2014)

A rumor leaked a week before Target actually confessed to the security breach. This created bad PR for the company and distrust with customers.

2.       After Target did notify the public, it didn’t have the bandwidth to quickly respond to concerns. (Burg, 2014)

Target’s phone lines and website were gridlocked, preventing customers from getting answers to their concerns. Where did they go? Target’s social media sites ended up becoming a platform for customers to vent about their aggravation with the situation.

During this crisis, social media could have served a great platform for Target to communicate with customers and ease concerns about the situation considering its 138 million followers. In essence, social media would have made communication extremely fast and effective. Target did respond to questions from customers, trying to ease concerns (a huge positive, as many companies would have went "dark"). However, the company could have also had a more proactive approach with announcements and updates on the situation. 

What other ways could Target have used social media to mitigate the negative impact from the security breach? 

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References: 

Badenhausen, Kurt. (2013, March 12). Subway, Google And Target Are Top Brands For Social Currency. Forbes. Retrieved from: http://www.forbes.com/sites/kurtbadenhausen/2013/03/12/subway-google-and-target-are-top-brands-for-social-currency/

Burg, Natalie. (2014, January 17). Five Lessons For Every Business From Target's Data Breach. Forbes. Retrieved from: http://www.forbes.com/sites/sungardas/2014/01/17/five-lessons-for-every-business-from-targets-data-breach/

Curry, Joe. (2013, November 19). 5 ways Target uses social to drive brand loyalty. iMedia Connection. Retrieved from: http://www.imediaconnection.com/content/35459.asp#multiview

Hitz, Lucy. (2014, May 19). Target on Social Media: How the Retail Giant Markets to a Social Audience of 138 Million. Simply Measured. Retrieved from: http://simplymeasured.com/blog/2014/05/19/target-on-social-media-how-the-retail-giant-markets-to-a-social-audience-of-138-million/