Prediction #2. Vk.com

http://vk.com is a Russian version of Facebook. It was meant as a website where people could reconnect with their classmates. Vk.com was created in 2006 by Pavel Durov and had great potential. Unlike Facebook, Vk (which stands for vkontakte (в контакте, Russian) and means "in touch") has a few extra services such as music, videos, opinions, and bookmarks. Today, the website has over 43 million profiles from Russia, Ukraine, Belorussia, Kazakhstan. Its positioned as "fast and esthetically pleasant way of communication online".
Today, this website has a lot of people against it due to a several reasons:

1. Some think vk.com sells personal information to the FSB (the organization that came after KGB) in order to use that information against users of the website. Thus, there have been cases when people would post something negative that is related to politics and that would be enough evidence to start a court case against the user.
2. Vk.com has no age limit, therefore, it is feared to be a way for pedophiles and criminals to talk to young kind or trusting adults in order to cause harm.
3. Vk.com requires a fee to join that could be paid by sending a text message during the sign up processes. This leads to information leak and raises security questions.

This is a picture from one of the groups on the website. The group is called "Child's fashion".

Since Vkontakte is being compared to Facebook a lot, I am going to draw one like of comparison. Facebook is now thought of as a dying website. Facebook overwhelmed its users by upgrading its interface way too often; most people stop or slow down on posting their statuses; a security question is a huge problem for Facebook.
But if I had to choose between those two websites, I would say Vkontakte has a much shorter life spin left. There is not much its PR department can do in order to have people stay. Most of my friends use vk.com just to share some funny pictures or to listen to free music.
In order for Vkontakte to gain public's trust back, their PR department will have to follow these steps:

1. Work on the security problems. Make sure vk.com's name is NOT involved in any online related court cases or newspaper's articles.
2. Get involved. Sponsor some major event in Russia. Preferably, in Saint Petersburg where the head office is located.
3. Stop the public image of a big joke website. The website has a tech support team that keeps getting funny/bulling questions which shows that people do not take any of the support seriously. (picture on the right: "How do I clean my cat's litter box?", picture of the tools needed to do so sent by the agent of the support team, "Can I get the detalized instruction?", another picture from the agent"
4.  There has to be something done about safety of younger users of the website. In the States there is a sex offenders website which could be colaborated with Facebook along with parental control options, so children would not get in trouble by talking to somebody online. Since vk.com is already compared to Faceook that much, they might as well copy this technique of keeping their young users safe.
5. Stop charging people money for joining vk.com. If it is meant to be an online communication website, there is no reason to charge those who want to join. It is in vk's best interests to gain more new users who do not have a judgement again the website. Cancelling the cost will give an opportunity for new audience.

Even if those steps would be completed, I do not think Russians will ever trust Vkontakte again. Typically, we are a very skeptical nation. We tend to give all of our trust at once, but once it's broken, there is pretty much nothing a company can do to gain it back. It is not easy to do business in East Europe.
I do not think Vkontakte will gain its popularity back.
Therefore, I do not think their PR department will be successful in anything they might try to do.

Prediction #1. Walgreens.

Since I did my White Paper on Walgreens and Rite-Aid, it would make sense if I tried to predict their future in PR. I am going to start with Walgreens since I work there. It gives me an opportunity to be the insider, but it also makes me bios.
As I mentioned in my White Paper, Walgreens cares about its image a lot. Their main task is to have a happy customer no matter what. We, as employees, have to make sure there is no misunderstanding, miscommunication, and no hard feelings between us and our customers. It is not easy to do, and, frankly, unrealistic as well. Walgreens chooses to believe that one customer is worth 10 employees. From a marketing perspective it makes sense. One lost customer per year could cost a company up to 15% of annual profit.

With all of the above, Walgreens makes sure its employees have a say. There is a counseling line any of us can call when we need to talk. It is an open communication place, so we are free to raise questions and find support.
But that all is internal. External PR Walgreens has has been working pretty well. In September of last year, Rochester area's Walgreens introduced its shopping club card that is called Balance Rewards Card. The idea behind is pretty similar to all other cards out there:

• The card allows customers get sale prices that are advertised in a weekly ad along with a monthly coupon saving book.
• Customers get points for certain items or a certain amount spent. These items change every week and are easy to find in store since they have a blue price tag that explains what needs to be bought in order to get certain amount of point. Later points can be converted into money that could be used to reduce the total at check out.
• Once signed up for the card with phone number and email, customers get exclusive offers, deals, and coupons.

Along with having the card, Walgreens makes sure their customers know about photo department and the deals that going on there. Walgreens has two types of photo labs:

• Dry lab - this lab takes digital pictures only and prints them on 4x6, 5x7, 8x10, posters, canvas prints, burns CD and DVD, photo gifts, and photo restorations.
• Wet lab - this lab has the same functions, but unlike dry lab, customers can develop their film there and get the same products (posters, CD, DVD, etc) ready.

Recently Walgreens came up with a Quick Prints app which is available through their free Walgreens app.

So, with everything already in place, can Walgreens improve its PR? Could Walgreens get better at positioning itself on the market? Will Walgreens stay at the corner of happy and healthy?

http://scottpublicrelations.com/free-health-care-for-unemployed-good-business-ethic-and-big-pr-opportunity/ - this is a very interesting article on Walgreens' pharmacy prices and opportunities it has for its competitors. This raises the question - with so much going on at Walgreens: photo, new card, a lot of employees, a lot signs all over the stores, multitasking - will Walgreens loose itself? Did they get into too much too soon?
I think Walgreens has a lot to work on starting with the way they treat their employees and ending with the way they treat their customers. Walgreens wants to be seen as a major pharmacy that covers every part of consumers' lives. It is a very big piece to swallow.

In order for Walgreens to stay on the market and to build a stronger relationship with public, they need to:

1. Make sure Walgreens keeps up with good advertisement.
2. Keep sponsoring major events and shows, so the target market could grow bigger.
3. Understand that sometimes loosing a customer is okay. It is not true that customer is always right, and Walgreens need to be in touch with time to realize that sometimes it is better to let a customer go. Use the life time value formula to select its best customer and target them.
4. Slow down with new additions to Walgreens services and make sure the current ones work well.
5. Keep up with a great customer response center where every question is answered via phone, email, Facebook, and Twitter. Listen to their critics and find an opportunity to turn into a beneficial addition.

Once this is all in place, Walgreens has a good chance of doing even better. Their PR department has a lot to consider, but it is a huge corporate, so there is  a lot to lose, but also a lot to gain.

Ethics And Truth.. How Do We Know?

Ethic.

noun

1. The body of moral principles or values governing or distinctive of a particular culture or group.

2. A complex of moral precepts held or rules of conduct followed by an individual: a personal ethic.

(dictionary.com)

 

Truth.

noun

1. The true or actual state of a matter.

2. Conformity with fact or reality; verity: the truth of a statement.

(dictionary.com)

 

Even though the first reading of Fitzpatrick was more on ethics and laws, what made me more interested was the definition and the use of the word "truth" that reading implied along with the article on Scott McClellan's book's reviews. 

Truth is something that lies next to ethics. Truth is something we all seek. Truth is something we less believe in because none of us can believe the definition of truth. As children, we are taught how to believe our parents, but even they lie to us about Santa or Easter Bunny. I mean, I was crying when I found out Santa was actually my mom.

In terms of PR, truth is something even more shady. PR people mean well, but do they really? Everybody has their own interests involved, and my truth might be 180 degrees different from the truth of another PR company. I have to defend what I believe in (or what I get paid for..) while they're doing the same.
Unfortunately, when you grow older, it becomes clear that the lie about Santa is the least of evil. When we just started this semester, we watched a movie on propaganda, and it raised the question of trust. 95% of our class agreed that is it not safe and, pretty much, pointless, to believe what you hear and see. This is very upsetting. It shows that my generation has lost trust their parents might've had in the government, politics, economics - news in general.

I went on Google and types "truth in politics", and all of a sudden hundreds of websites jumped out at me. Isn't that a proof that people are hungry for some peace and calmness about their constantly bothered feeling of trust violation? I went to a few of those pages, and there are the ones that made me interested:
1. http://www.factcheck.org/2010/09/committee-for-truth-in-politics/ - even though this article is over 2 years old, it still caught my attention because it's called "Committee For Truth In Politics". I was so skeptical going in, and nothing has changed. I am sorry, but I do not believe that politicians should even has such a committee because every word they say is a lie to begin with, IMPO.
2. http://www.politifact.com/ - this website is actually pretty interesting. First of all, they have articles on what is going on (but who doesn't). But what is interesting is that once scroll lower, you can vote on what a politician has said. It shows what people choose to believe in and what they dismiss right away. This website makes me feel like I could actually get involved.
3. http://www.pfhub.com/top-10-political-scandals-in-the-united-states/ - this is what came up what I requested information on "the major truth scandals". Google is such an awesome tool. Obviously, I did not live in the States when majority of these events happened, but I know about them. So, if these news flew across the ocean and got to my ears, somebody really messed up. Once the lies become international, there is a problem.

The lies and scandals lie not only in politics, but in every day life. Nestle has been attacked for years now. First, people found out Nestle's baby formula was unsafe for infants, and now there is a problem with their meat supplies.

This is a 1 year old video that is made by students for their class. I think it is significant to understand that if college kids are looking into everything trying to find the truth, those who are responsible for the news delivery should start paying attention to what they say and how they do it. Young adults today are so much different from college grads 10 years ago.
PR Case Study: Nestle Baby Formula Scandal

Afterall, people are simply hungry for truth. People want to feel secure and protected. We need to know that we have somebody to trust. We might be very tired of having to count on ourselves. It might be time to step up the game and give us what we want. Stop hiding behind job description, boss's bad mood, top secret papers, and other silly excuses.

What is being done today is very confusing. We are not taught how to trust, but we are taught how to hide. We had to learn how to find a reason behind everything we hear. In terms of politics, this could lead to something pretty amazing or to a dysfunctional political system. It is time for those who rule to decide on what plan of actions they will take. Let's hope they will choose the one that will pay off very nicely for everybody who is lucky to live in this country.

  

White Paper. Post #5. Conclusion.

Rite-Aid in Chili, NY has a great potential, and is an amazing store with lots of services and products to offer. Unfortunately, between them and their competition (Walgreens across the street) people of Chili seem to be more interested in Walgreens. It is possible to fix it, but it will take time and investment. If Rite-Aid would be willing to use my recommendations or at least some of them, I am assuming that within a year since the start of renovations their customer base will grow 15% adding over 80% to their annual profit.
It is clear that once Walgreens will realize that Rite-Aid is stepping up its game, they will hunt the market more aggressively. Rite-Aid should not slow down and should keep fighting for the right to be on that street. Consumers like choices. 

White Paper. Post #4. Web 2.0

Since Rite-Aid I am doing my white paper on is a local store, I think the best way for them to use the media would be local radio shows, hashtag on Twitter and Instagram that is personalized to that particular store, and possibly a Facebook page that is personalized to Rochester as a city, but not strictly to Chili.

 

1. Local radio shows could be sponsored by local Rite-Aid district which will bring attention to all Rite-Aids in the community of Rochester. It will also allow people recognize Rite-Aid as a company that cares and is involved. They could sponsor funny prank shows like “war of the roses”, or serious medical shows on stations for retired adults to attract different consumer audiences in the stores.

 

2. Hashtags are extremely popular among young adults and business people. They make it easier to share and find information, so if Rite-Aid has a local Twitter account, that would bring so much more attention to the store. A store manager could have an account on Twitter and Instagram with which they could share new products, prices, adds, promotions, and their company’s believes, so consumers know what to expect once they walk through the doors. The hashtag that I chose is #whyriteaid because it raises the question of why people should think to choose Rite-Aid. It also has the answer in it: one should choose Rite-Aid because of the sales and customer service.

 

3. A personal Facebook page is possible to use it for the same reasons Twitter would be used. It is so much easier and faster to share information about special deals and promotions! It is under the touch of fingers to share the newest item in the store that competitor might not have just yet if ever. It also would allow local Rite-Aid to hear costumers out, but because it would be so narrow, it’ll make it easier to track and to evaluate.

 

Either one of those tools would be also helpful to use to hear customers suggestions. People want to be involved; they want to have an input in the services and products they're getting, so using the web is one of the fastest and the best ways to be heard and to be spoken to.

 

 

White Paper. Post #3. Plan Of Actions.

Since it is clear that customers prefer Walgreens to Rite-Aid, it is also safe to say that this is their bigger competitors. In order for Rite-Aid to gain its customer base back, they should follow a few steps:

• Get involved. Get involved in the community’s life. Hold an event like a blood drive. Walgreens does it every 2-4 months while Rite-Aid does it every 6-8 month.
• Get “dolled up”. As mentioned earlier, Rite-Aid’s building is not in its best shape. It should be painted and freshen up. It sounds silly, but that step will allow them to shine through other buildings that surround Rite-Aid.
• Train the staff on how to be interactive with their customers. Make sure the employees understand that loosing one customer per year might cost them their job. Actually, Wal-mart tells their employees that one lost customer costs Wal-mart as a company $250.000 a year. Obviously, in terms of a local Rite-Aid the number will be smaller, but there is a formula to be used to calculate the lost amount. Staff should be more friendly, more welcoming. Most customers who have left Rite-Aid for Walgreens name not being recognized as one of the main reasons they switched.

 Where is the (relevant) retention costs per customer per year (this formula assumes the retention activities are paid for each mid year and they only affect those who were retained in the previous year), is the horizon (in years), is the yearly retention rate, is the yearly discount rate.

• Be more patient. I have had a few customers with little kids who have told me that Rite-Aid does not have the room to move if you come in with a few little children nor does the staff have patience for the little ones running around. I know how annoying it can be to see the mess after you just made your store look pretty or how little ones' cries could get to you, but Rite-Aid should make sure its employees realize this job is not only about them, but about the company’s image as a whole.

White Paper. Post #2. Swot Analysis.

So, the first step to understanding how a company is doing is to break it down into 4 main components:

1. Strength.
This where you concentrate on positive internal aspects of the company.
Rite-Aid, as a local store, has something very impressive to show off. First of all, Chili is usually thought of as a family/retired community, but there are also a high school down the road and a college on the other side, so there are a lot of kids who are desperate for some new things they don’t need, but have to have. Walgreens I work at doesn’t do as well on its make up supplies when Rite-Aid seems to be getting newer make up stands more often. This is their main point, in my opinion (but I am also crazy about make up, so..).  Also, Rite-Aid seems to be a bigger store which means they are getting more stuff in which can lead to more consumers coming in and emptying their wallets. Also, Rite-Aid has a bigger need for more employees which can lead to great customer service if prioritized as it should.

2. Weaknesses.
Those are negative internal aspects to a company that might be taken into consideration and could be turned around and made into strength.

• Having a lot of employees puts Rite-Aid main management in a tough position of controlling its workers and their communication with the public.
• Rite-Aid building looks older and forgotten, and even though they recently updated the looks of the inside, it's not enough because customers like to see a pretty building welcoming them and might not walk into a building that looks cheap and old from the outside.
• Walgreens across the street has a mandatory “Welcome to Walgreens” that is to be said to everyone who walks into the door as well as “Have a nice day, be well” that is said when a customer leaves. Rite-Aid seems not to have any of the above, so most of the time customers do not feel welcome or even recognized.

3. Opportunities.
Those are external aspects that could boost the store up on the market by using their competitors mistakes to benefit and earn profit.

• Rite-Aid could use Walgreens' habit of getting involved in the community’s lives and have their ads on a local radio (which local Walgreens does not do, but Walgreens in the nation does by sponsoring Kiss FM that younger population listens to). By doing that, Rite-Aid will get their name to be recognized within the community.
• Since Rite-Aid is a pharmacy oriented business, they should have bigger and bolder signs on their doors about what services they offer and at what price. They should use a technique of when they compare their prices to their competitors, and it is not necessary to use Walgreens’ name since the two are right next to each other.
• Rite-Aid should aim for young families and young adults as their customer base because Walgreens seems to concentrate on elderly people or those with 2 or more kids. This will bring Rite-Aid to a new level with a new target audience that Walgreens currently doesn’t have.

4. Threats.
Those are external aspects that could potentially harm company’s business if not noticed on time.

• Rite-Aid seems to be forgotten unless people are already on the plaza Rite-Aid is located on.
• People rather not go to Rite-Aid because of its service and customer appreciation that are missing.
• Walgreens, as a competitor, offers more of a friendly and well “light-up” atmosphere, so people tend to be more willing to spend money there.