YouTube & Domino's: It Could Happen to You

Last week, Domino's had to deal with a PR nightmare when two of their employees filmed a disgusting prank and then posted it online. In a few days, the prank had circulated widely over the Internet and Domino's was dealing with a potential marketing and PR disaster.

We all understand the world's greatest intellects are not likely to be found working in the back room kitchens of places like Domino's. We also understand that every restaurant chain in America does the best they can to hire and train good people and then provide them with the tools and systems to generate consistent meals that will satisfy their customers. Lastly, we also understand that things can go wrong in those kitchens and that no system is ever going to be perfect. Mistakes can happen and, while we don't like it when they do, we can also be understanding, especially if they are dealt with in a very positive way. In fact, sometimes, dealing with a mistake in an exceptional way can create one of the most positive brand experiences possible.

What we don't understand is when idiots decide to do something incredibly stupid, record it, and then, thinking it's incredibly funny, they decide to post it on the Internet for the world to see. That's what happened to Domino's. It's bad enough that these videos get exposed so easily on places like YouTube, but they eventually generate millions of PR impressions when the story hits the newspaper and the network news programs. TV news, in particular, can't resist showing us videos like these, because they are both disgusting and fascinating at the same time. And, then it becomes a spectator sport to see how the targeted company responds.

Domino's seems to have responded quickly and well to this episode but the damage was done. What are the implications for marketers everywhere because every one of us is vulnerable to something like this? You're especially vulnerable if you manage a highly visible, familiar consumer brand like Domino's.

First, realize that YouTube can be your enemy just as much as it can be your friend. Yes, you can post your own marketing messages out there, but the images that interest people the most are not these packaged corporate communications. It's the underground "behind the scenes" scandalous images that capture attention, become viral and get widely circulated. As a marketer, you must image your worst PR nightmare and then develop a marketing and PR contingency plan to deal with it. You must be ready because if something like this occurs to your brand, its impact moves at the speed of light and you can't take days to figure out how to respond and what to do. What is the worst possible thing that could show up on YouTube that could severely damage your brand or your company? Are you ready to deal with it?

Second, shouldn't YouTube be more accountable for episodes like this? As marketers, shouldn't we be talking to the YouTubes of the world about what can be done to protect businesses from this type of damage to their reputations. Do we really think it's right that two idiot employees can have this kind of impact on a company? Is YouTube doing an adequate job policing the videos that are posted to their site?

Third, anyone who knowingly inflicts this kind of harm on a company should be legally liable for their actions. It's not enough to simply fire an employee for this kind of damage. It should be illegal. That would go a long way to discourage these malicious acts.

Signs of the Times

Consumers everywhere are in a serious "recession mind frame." They're delaying purchases or deciding simply to forego things that they would ordinarily be buying. It's a scary time if you're a trying to market anything that's not pretty much an absolute necessity. If it's a "nice to have" thing but not a "must have" thing, then you are definitely feeling the impact of this recession mindset that gripping most Americans.

Here are a few things that illustrate how bad this recession mindset has become and how lasting its impact may be.

1. The Cute Puppy No One Wanted

I attended a charity event recently that I've attended for the last three years. The event includes both silent and live auctions to raise money for the charity. In prior years, the highlight of the event is the live auctioning of a cute puppy. The biding is spirited and the puppy generates a multiple thousand dollar contribution for the cause. This year, when the puppy went up for auction, no one bid. It was sad and embarrassing. The puppy was as cute as ever, but this year, no one wanted to come home with a new puppy. Another mouth to feed? Vet bills? Buying a new puppy in this economy? It was a sobering moment, because this was a relatively wealthy crowd. It really brought home how bad things have gotten.

2. Outrage at Excessive Executive Compensation

No matter how well a company is performing, it is now PR poison to grant large bonuses and multi-million dollar compensation packages to top executives. When so many are out of work, forced to cut back and losing their savings, it does seem ridiculous and unfair to read of CEO "Mr Big Shot" and his $25 million bonus. I think we've gotten to a point where this type of compensation is no longer routinely accepted. I think the press will now focus on these types of comp packages and report on them and that Board of Directors will be forced to react. Is it more important to keep a few top execs fat and happy or is it more important to protect the public reputation and image of the corporation? It will be interesting to keep an eye on this issue and see if it goes away once the economy returns to health. I suspect we may have experienced a watershed moment that could forever change the excessive compensation earned by a select few.

3. GM Headed for Chapter 11

An American Icon company looks like it is about to declare bankruptcy. Any guess on how the stock market will react to this event if it happens? Can you imagine what it must be like to be a GM Dealer these days? How many of them are about to go out of business, too? Last night a friend told me he just bought a new GM car and got $17000 off the list price. How desperate did that dealer have to be to unload a new car at that steep a discount? GM is trying hard but everything positive that they do right now is overshadowed by the mass of negative publicity they're getting.

4. Banks Only Want to Lend Money to People Who Don't Need to Borrow

Isn't one function of the banking industry supposed to be to loan money to entrepreneurs and aspiring small business owners so that they can create new businesses, employ more Americans and fuel the overall economy? This financial crisis has made banks so conservative in their lending that the only people who can get money now are those that don't need it. Banks want to make money and they want to minimize bad loans, but don't banks also have a social responsibility to help create more jobs and grow the economy?

There is a lot of ill will being created right now by many American businesses. I'm not sure that this recession will be like the other ones I've live through. The impact of this one feels like it will be more permanent. My dad grew up during the The Great Depression and his outlook on life and money and business was fixed during that era. I suspect that many Americans are being affected just as deeply now by what we are experiencing. The impact on marketing will likely be permanent and immense.