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Corporate Reputation in the Era of Web 2.0: The Case of Primark

Corporate Reputation in the Era of Web 2.0: The Case of Primark. Kana Miyata 5/24/2011. Agenda. Web 2.0 = Opportunities Measuring Online Reputation Corporate Reputation & Branding Case Study: Primark Multiple Choice Question. Web 2.0 = Opportunity. Changed how we communicate on the web

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Corporate Reputation in the Era of Web 2.0: The Case of Primark

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  1. Corporate Reputation in the Era of Web 2.0: The Case of Primark Kana Miyata 5/24/2011

  2. Agenda • Web 2.0 = Opportunities • Measuring Online Reputation • Corporate Reputation & Branding • Case Study: Primark • Multiple Choice Question

  3. Web 2.0 = Opportunity • Changed how we communicate on the web • Positively or negatively affect • Directly linked to companies rankings • Corporate Social Performance (CSP) • “two way street” conversation

  4. Two Way Street?

  5. Measuring Online Reputation Three Elements 1. Monitoring 2. Participating 3. Measuring

  6. Corporate Reputation & Branding • “The way a company behaves on-line and is perceived by its wider audience is far more important than overt philanthrophy, donation to charities, flashy websites or even annual CSR reports printed on recycled paper (Neff 2001).”

  7. Case Study Problem • PR Crisis Challenges • Impact of social media Opportunities • Opportunities = Corp Rep + SM Solutions • Build relationships, educate & use tools

  8. About the Company • Primark Stores Limited • Irish company subsidiary of Associated British Foods • 200 stores in Ireland, UK, Netherlands, Germany, Spain, Portugal & Belgium • Employs over 25,000 people

  9. About the Company • Very popular trendy store in Europe • Selling trendy clothing at a very low cost • Competitors: H&M & Zara

  10. Problem: PR Crisis • 2005, voted most unethical retailer in UK by Ethical Consumer magazine • Why? • Employment of illegal child labor • Poor treatment of Bangladeshi suppliers • So of course, social media went crazy…

  11. Challenges: Impact of Social Media • “The Devil Wears Primark” or “Primani” • Over 500 search results related to Primark • 42,000 FB members, some protesting • Activist groups • http://groups.ultimate-guitar.com/primarksucks • http://amplicate.com/hate/primark

  12. Opportunities = Corp. Rep + SM • Bypass BBC (aka mass media channel), directly to the web • Built a micro site, answered questions • Listened to professionalised consumers, “consumanagers” • Broadcasting & Socialcasting

  13. Opportunities Broadcasting & Socialcasting

  14. Solutions • Continuously build the consumer relationship • Educate Managers on SM • Utilize online reputation tools

  15. Issues with their Solutions • Continuously build the consumer relationship • Good, not just loyal consumers • Educate Managers on SM • Only managers? Everyone • Utilize online reputation tools • Not just reputation, also branding

  16. More Solutions • Hire the right staff to be active in SM • Over communicate the problem is solved • Executive staff, more transparent & involved

  17. Multiple Choice Question! What are the 3 elements of measuring online reputation? • Positioning, monitoring & measuring • Monitoring, participating & measuring • Monitoring, participating & listening • Participating, talking & listening

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