6 Genius Business Ideas Masquerading as PR Disasters

They are the public relations nightmares that keep business executives up at night: embarrassing scandals, televised gaffes, and marketing gimmicks that backfire. They tarnish brands, ruin reputations, and send business swirling down the toilet . . . or do they?

We’ve combed the tabloid trash heap to uncover 6 so-called PR disasters that generated widespread negative buzz—but they all ultimately proved there really is no such thing as negative publicity. All of these 6 examples carry business lessons tailor-made for the savvy entrepreneur.

1. Kanye West, “Imma Let You Finish”

Imma Let You Finish

The Setting

The very first award at the 2009 MTV Video Music Awards, Best Female Video. When country ingénue Taylor Swift got the nod over sultry R&B icon Beyonce, the audience could almost hear the moon man trophy calling out to the VMA’s favorite bad boy: “Here, Kanye, Kanye, Kanye. Here, Kanye, Kanye.”

The Disaster

Out of the shadows, Kanye West entered the spotlight, stole the microphone from Swift, and uttered the words tweeted round the world: “Imma let you finish, but Beyonce made one of the greatest music videos of all time. Of all time!” The show’s producers didn’t let Miss Swift finish, however, cutting her mic before the dazed starlet could utter a word.

The Benefit

MTV.com was extra prepared in 2009 to capture the VMA experience with reactions, clips, a running blog, and more—and oh, mama, was there more. News of Kanye’s interruption stormed social media, driving millions of people to the broadcast and the site, which was quickly stacked with the hottest online footage money couldn’t buy. Over the previous year, the 2009 VMA’s witnessed a 21% jump in total viewers (27 million), a 20% increase in unique visitors to MTV.com (2.7 million), and a 24% surge in viewers of VMA exclusive online content (1.7 million).

The Takeaway

Nothing creates friends like a common enemy. Kanye played the villain everybody loved to hate. You might not be able to stage a public scene (though many suggest MTV did just that) but you can create an environment sure to provoke a volatile opposition. Make sure you’re ready to capitalize at any moment by being the exclusive source of the updates everyone is sure to want.

2. The American Family Association Boycotts NYPD Blue

NYPD Blue

The Setting

In the fall of 1993, ABC was set to premiere the brainchild of Steven Bochco and David Milch, a gritty cop show that would break the age-old laws of network TV: no nudity and no swearing.

The Disaster

The American Family Association, based in Mississippi in the heart of the Bible Belt, called for a national boycott of the show, taking out ads in major newspapers, and encouraging concerned citizens to beg their local affiliates not to air the show. By the time NYPD Blue premiered, over 50 local affiliates had buckled to the pressure.

The Benefit

Thanks to the free exposure (and the fact that the affiliates in question were all in small markets), NYPD Blue quickly became a top-20 ratings hit. It went on to run for 12 seasons, rake in 20 Emmys and 4 Golden Globes, and exposing America to more shots of Dennis Franz’s ass than we really care to count.

The Takeaway

If you’re prepared to challenge the vocal minority, they can do you a lot of favors once they get offended. Just make sure you aren’t alienating your primary customer base. There’s a fine line between generating intrigue and breeding disgust.

3. KFC Grilled by Oprah Overload

KFC and Oprah

The Setting

In the spring of 2009, KFC launches its new menu line, Kentucky Grilled Chicken, by offering printable coupons for free meals. To make sure the new lower-fat finger-licking caught headlines, the Colonel brought in the Oprah. The talk-show goddess directed fans to her Web site for the free coupons, sending public interest skyward.

The Disaster

Difficulty plagued every stage of the promotion. The coupons were difficult to print. The Web site was overwhelmed. The lines at KFC’s around the country extended for blocks (sometimes even blocking traffic). And what was the reward awaiting the majority of hungry Oprah watchers: no more chicken. The publicity scheme ran out of control, making headlines for weeks about KFC’s inability to deliver on their promises.

The Benefit

KFC offered a milder, gentler rain check offer that soothed the ire of their ravenous customers—but not all the chicken was free. After a disappointing first quarter and a 7% decline in profits, KFC’s parent company Yum! Brands saw a 35% increase in 2nd quarter profits. KFC had been lost in the fast-food trend of offering healthier menu options. But after the embarrassment waned, there wasn’t a single American who didn’t know about Kentucky Grilled Chicken.

The Takeaway

If you over-promise to the point that the offer (and its under-delivery) makes headlines, your PR might take a hit, but overall business should soar. Who wouldn’t want a scenario where supply is exceeded by demand? If you’re introducing a game-changing revision to your business model, it might not hurt to make a free offer you can’t hope to fulfill. If the next big thing is big enough, the money in your pockets will make up for the egg on your face.

4. New Coke Dethrones a Classic

Coca Cola Logo

The Setting

In 1985, Pepsi threatened to overtake Coca-Cola as “America’s Cola.” In an effort to win the “Pepsi Challenge,” Coca-Cola created a new formula that outperformed Pepsi and the original Coke in taste tests. In June, the company announced it was replacing its old product with a new look, a new name (just Coke) and a new taste. According to their research, the new Coke would be a huge success if taste was all that mattered.

The Disaster

Taste wasn’t all that mattered. Public reaction was overwhelmingly negative. Sales suffered, and the general consensus among the American audience was a feeling of betrayal. Contrary to the sales figures, many consumers viewed Coca-Cola as part of the American experience, an icon of modern culture. They were robbed of their cherished Coca-Cola without ever being asked for their opinion. Before the year was through, Pepsi held the market share in the Cola Wars.

The Benefit

By July of 1985, the executives at Coke knew they had made a mistake and announced plans to reissue the older, beloved formula of Coca-Cola, this time with the name “Coca-Cola Classic,” the name it has retained to this day. After Pepsi’s initial surge in popularity, Coca-Cola Classic overtook the new Coke and Pepsi to reclaim its crown in 1986—a title it has yet to relinquish.

The Takeaway

Is there more to your brand than the product or service itself? If you have forged an emotional connection with your customer base, find a way to remind them of how much you mean to them. (Twitter unintentionally employs this tactic every time the Fail Whale takes flight or the entire service goes down for an hour or so.) A move as drastic as reinventing your product is probably too risky, but a short holiday can allow customers’ hearts to grow fonder in your absence.

5. Oprah’s Cred Shattered into a Million Little Pieces

James Frey and Oprah

The Setting

James Frey publishes his memoir, A Million Little Pieces, and lands a nice publicity boost when, in 2005, Oprah decides to take her book club into more contemporary, edgy territory than Steinbeck or Tolstoy. Frey’s already successful hit secures a spot atop the bestseller lists. Only one problem: his story isn’t his story.

The Disaster

In early 2006, the Web site “The Smoking Gun” publishes a story of their own: A Million Little Lies, revealing James Frey as a fraud whose life is nowhere near as sordid, thrilling, and edgy as his memoir made him out to be. His lies embarrassed his publisher, Random House, and Oprah herself. After initially supporting Frey and feeling the wrath of her fans, Winfrey brought the fictionizer back on her show for a stern tongue lashing. Random House refunded money to angry readers who complained, and Frey lost a pending book deal in shame.

The Benefit

James Frey is a millionaire, and a lot of the money he made came after his lie was exposed. Copies of Little Pieces continued to fly off shelves and through Internet orders, and Frey wasn’t required to forfeit a penny. He did publish a follow-up book, Bright Shiny Morning, and it debuted at number 9 on New York Times’ bestseller list. Oprah’s empire wasn’t exactly destroyed, either. In fact, the Frey incident did more to publicize Oprah’s book club outside of her daily viewership than any other factor. If you doubt it, try naming a selection from her book club from before the incident.

The Takeaway

Don’t engage in fraud, and don’t trust those who do. But the simple fact of the matter is, if you stay in business long enough, someone is probably going to burn you publicly. Don’t ever try to bury the story. Engage in the public conversation, do the interviews, and remind the public of what happened at strategic moments. As bad as the publicity may seem, the advertising is free, and the impression you leave will last.

6. John & Kate Plus An Affair

John and Kate

The Setting

Jon and Kate Gosselin have eight children and a TLC reality show to match, John &Kate Plus Eight. Cute kids, a bickering couple, and the sheer numbers of it all (if all the kids’ friends watch the show, ratings will stay afloat) combine to make the show a cult favorite.

The Disaster

The show’s 2009 offseason didn’t keep the family from creating hours of fresh television footage as rumors of Jon’s infidelity made tabloid headlines. The program’s premise of a family that “keeps it all together” despite their crazy circumstances is threatened by the merciless rumor mill.

The Benefit

For the family, the event was nothing but a tragedy, but for TLC, it was a gold mine. The 2009 season premiere became the top-rated telecast in its time slot, beating even the broadcast networks with 9.8 million viewers (more than double the 4.6 million audience from the previous season finale).

The Takeaway

The so-called success of the sensational turn in the Gosselin’s marriage was short lived, especially after the couple announced plans to divorce. Ratings have declined steadily since—and the family is hurting, too. It goes to show that any positive effects of a tragedy can be sustained only by a rebound from tragedy. If things go from bad to worse, the titillating twists just turn plain sad. The show was defined by its family and lost its identity in the divorce. You shouldn’t be afraid to use a pitfall to your advantage in business—but you’ll be lost if it redefines you.

What do you think? Is there such a thing as negative publicity or it all depends on how you turn it around? Share your thoughts and any other PR disasters that you know of.





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