Daily Journal of Commerce

Friday, December 18, 1992

Bottom-line public relations - In today's business environment, PR must deliver measurable results that contribute to corporate success

By Cindy Hudson - The Coates Agency

In business, the bottom line is sacred. Programs and business units must measurably contribute to it or risk cancellation. Public relations is no exception to the rule.

In today's bottom-line-conscious times, fewer corporation are willing to fund PR activities just because they "seem like good things to do." PR programs must be structured to deliver results that are measurable and, most importantly, results that impact the ultimate success of a company.

PR can prove its worth by being accountable to the company's strategic plan. Programs developed to further the objectives of that plan are more easily justifiable than those that are not. Measurement becomes a means to determine whether PR has successfully met the plan's objectives.

But deciding on a type of measurement that will accurately reflect the success of a program is often where the challenge lies, and many companies don't measure because they're not sure how to evaluate the results. In some cases, formal research may be the only true way to measure results; in others, an informal study of already available information may be sufficient.

Reviewing the company's strategic plan and the objectives of that plan can help in this process. Are sales increases expected? Should audience awareness be increased? Does credibility need to be established?

Consider the case of the nation's largest and oldest manufacturer of reel mowers, Shelbyville, Ind.-based American Lawn Mower Co.

In 1991, the firm realized that reel mowers, the manual push kind with no engine, were suffering from a lack of identity. The company needed to reinforce its network of retailers carrying the mowers and to increase sales - a tall order, especially with no budget for consumer or retail advertising.

American Lawn Mower assessed societal trends that indicated the public would be interested in reel mowers if they were considered a viable and modern product. This made the time seem ripe for a PR educational campaign about the benefits of reel mowers.

With the help of CRE Inc., a PR firm in Indianapolis, American launched a year-long effort to reach retailers and consumers nationwide. The message: reel mowers are alive and well, and perfect for smaller yards. They also provide exercise and protect the environment.

Because of those efforts and the relevance of the story, reel lawn mowers were the topic of 129 news article and television segments nationwide. The number of retail chains carrying the product increased and retail unit sales increased 30 percent in 1991.

In this case, the impact of PR was unusually easy to measure because there were no other promotional efforts occuring and because it was easy to compare current sales data with historical figures.

Sometimes establishing creibility is the goal, particularly when a well-respected company from one area moves into a new marketplace. That was the challenge facing Seattle-based Starbucks Coffee Co. when it moved into the Los Angeles market in 1991. The company decided on a strategy of sampling to reach the general public and to win support of chefs and food critics.

Young professionals - trendsetters - were targeted through samplings at museums and fund-raising events. Chefs and members of the media were reached through special tastings that brought the two groups together. Starbucks also participated in high-profile community events, receiving promotional advertising time to promote its support of local causes.

Thousands of cups of coffee were served in the months leading up to the openings, and news coverage was received in important publications such as "Bon Appetit," "Angeles Magazine," "L.A. Style," "Sunset" and "The Los Angeles Times."

The results were easily seen when throngs of people crowded into Starbucks' first retail stores in the market.

Maureen Crow, executive vice president of Burkhemer-Kline Golin/Harris, the PR firm that worked on the Starbucks project, attributes its success to having a clear definition of objectives before the project began.

"We knew Starbucks needed to establish credibility, educate consumers about the taste advantage of superior quality coffee and entice young professionals and trendsetters to sample its product," she said.

Keeping the desired results in mind made it easier to determine how success would be judged.

In this case, results were measured by looking at the number of people who came into the store when it opened. Again, this was a direct correlation to the company's bottom line.

Every program embarked upon is not so easily tied to bottom-line results. But if each PR project has its own set of objectives, its own way to measure that success and it accomplishes a strategic objective, then it is easier to see how it contributes to the company's success.

When PR programs prove their worth, they are seen not just as "good things to do," but as activities that must be done. In these times, no less can be expected, because bottom-line PR depends upon its contribution to the bottom line of the company.

Cindy Hudson is public relations director with Portland-based The Coates Agency.

© 2007 - 2008 All rights reserved. Cindy Hudson