Celebrity Endorsement

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Anyone concerned about the imminent decline of Apple following the passing of its visionary leader Steve Jobs can go back to worrying about climate change or the Mayan calendar doomsday. This week’s quarterly earnings report blew the doors off investor expectations: profits up 94% over a year ago; highest ever Mac, iPhone, iPad sales in a March quarter; cash above $110 billion; it’s Camelot in Cupertino.

Even Iron Man in the new Avengers movie sustains more damage than my aluminum MacBook Pro.

Even Iron Man in the new Avengers movie sustains more damage than my aluminum MacBook Pro.

Apple has been top of mind a lot lately. I recently recounted my self-administered laptop damage travel fiasco that occurred at SmartPark (I know, right?). Incredibly, despite running over the edge of my MacBook Pro when the laptop case flopped over as I parked, the tough aluminum case was bent but not broken. The CD drive, which looked to be affected, wasn’t. The display was compromised but only in the upper right corner. Less than 24 hours at the Apple Store restored it to pristine condition. Can you name another product that can take that kind of licking and keep on ticking?

While my Mac was in for repair, I spent the weekend in Manhattan and had the chance to visit the Apple Store on Fifth Avenue. It is just below ground, but by the stairs or glass elevator that take you down, it feels like you are entering the Starship Enterprise. This is a company that knows how to fire the public’s imagination and desire for all things digital.

Beam me down, Scotty, to the planet Apple below Fifth Avenue in NYC.

Beam me down, Scotty, to the planet Apple below Fifth Avenue in NYC.

I am not a huge cellphone guy, but I have had an iPhone for about a year and it’s wearing me down. I don’t need to be on it  all the time, but I find myself using it for so many different things. In the car, it’s my GPS and my iTunes feed. In a long line at the store or restaurant, it’s my e-mail, Facebook, and Twitter access. In bored moments, I find myself downloading really useful apps like the Flipadelphia cup flipping game from It’s Always Sunny In Philadelphia. Obviously, with the explosion of iPhone and iPad users out there (including a burgeoning market in China), Apple’s future is looking mighty rosy. Even a Justice Department investigation over possible book publisher collusion on digital book pricing is little more than a minor distraction.

http://www.youtube.com/watch?v=azBzUEFZIss&feature=relmfu

http://www.youtube.com/watch?v=Y5Dt0YlN2nM

The cool factor has always been there in Apple advertising. From 1984, through the PC and Mac guys, and the iTunes tunes, Apple has managed to capture attention, set trends, and create demand for its amazing products. Now comes two new TV spots featuring celebrity users of the latest generation iPhones with Siri capability. Although Apple has enough cachet on its own, it doesn’t hurt to trade on the current popularity of Samuel L. Jackson and Zooey Deschanel. Neither spot is ground-breaking, but both are fun and play to the strengths of the actors at quiet moments at home with their digital personal assistant.  The reviewer from Advertising Age found them somewhat misguided and with the strategy adrift now that Steve Jobs isn’t captaining the ship. Still, the spots are scoring well with consumers. Right now, I think you could replace Jackson and Deschanel with Mahmoud Ahmadinejad and Snooki and it wouldn’t have any effect on Apple sales or popularity. The economy might be hurting, the California economy in particular, but in Cupertino, it’s the gold rush all over again.

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http://www.youtube.com/watch?v=FqIP6xVB6U8&feature=player_embedded

Two weird copycat cases in the business world this week. Both are hard to get your head around because each is very different and covers new ground.

In the ad world, Old Navy is running a new commercial starring a Kim Kardashian doppelganger named Melissa Molinaro, then tweeting about it. Kim’s response — sue the retailer for blatantly trading on her appearance and pop culture identity. Lookalike models have been employed for years to sell product. Sometimes in person and sometimes in TV spots. This case is a lot more complicated.

It would have cost Old Navy hefty upfront money to hire the real Kim Kardashian as a spokesperson or performer in their new commercial. So, the retailer staged its own music video spot and used an unknown dead ringer instead. When the double takes started, they could have claimed coincidence about the model’s striking resemblance to Kim. Instead, they went on social media and tried to create additional buzz by getting fans’ reactions to the new ad. One tweet read  “@CBSNEWS reports that Old Navy’s Super CUTE star looks like @kimkardashian. #LOL. What do you think?”

Hard to quantify what the real Kim Kardashian would have delivered to Old Navy; however, she and her attorneys are projecting 15-20 million dollars in lost revenue that Old Navy should have delivered to her. That’s a lot of tees and khakis.

Clearly, the retailer is trading on Kim’s popular persona. So, why not hire the real McCoy? Was Old Navy intentionally trying to save money or to be cheeky (pun intended)? Likely, they were trying to do both. But it may wind up costing them a lot more money in the long run. Even deceased celebrities, whose visages have been resurrected for commerce (Fred Astaire dancing with a vacuum cleaner comes to mind) had their estates compensated through licensing arrangements. It will be interesting to see how this case plays out, but Kim Kardashian has a compelling argument.

TV commercial lookalikes are one thing. How about an entire retailer that has been copied right down to its wholly unique store layout, customer support system, and point-of-purchase branding? Forbes and other major news outlets report that someone is opening computer outlets in a remote part of China that are the spitting images of Apple Stores. Counterfeit retailers selling counterfeit hardware and software.  Shiver me timbers! How can that be anything but a blatant act of piracy?

Apple’s Board of Directors is currently looking at succession plans for when Steve Jobs leaves the company. Perhaps they should worry that he not be kidnapped, then cloned. Originality is still to be admired and protected.

Update: From Reuters comes news that the viral nature of the fake Apple store story has created a point-of-sale frenzy of angry customers confronting belligerent employees. It is still unclear whether the products being sold are genuine Apple products or knockoffs, but it is abundantly clear that the store is not an official Apple retail outlet in China. Caveat emptor. And once again, sunshine is the best disinfectant.

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Michael Vick is redefining himself and the concept of athlete as role model.

Michael Vick is redefining himself and the concept of athlete as role model.

Michael Vick, Philadelphia Eagles quarterback, is in the midst of an amazing run, rewriting NFL record books, making a strong case for his team as SuperBowl contender, but also testing every fan’s personal standard for forgiveness. Last Sunday, my pastor, with his tongue-firmly-in-cheek, gave a sermon noting that it is a lot easier to forgive Michael Vick when he is winning.
The Vick saga is an amazing arc of highs, lows, and now highs again. Ironically, Vick seems to trigger a visceral reaction, even now, among a significant portion of the population, those who own and love dogs. Animal cruelty is an especially heinous crime and one that is hard for people to fathom. Ironically, those on the long list of athletes who mistreat women are judged less harshly over time.
But Michael Vick was not alone in his transgressions. It was an unholy mess of family and friends running a seedy sports betting business built around dog fighting, to include dog torturing and dog killing. However, Vick was substantially and personally involved enough to be found guilty, stripped of his lucrative NFL contract and career, and sent to prison. Having done hard time, last year, he was given something most of us never get — a well defined second chance at the brass ring. To Vick’s credit, he has largely made the most of that opportunity, and in a way that challenges people to rethink how they judge him specifically, and others in general.
Vick has raised his athleticism and QB skills to an incredible level. He has been generous toward spreading offensive opportunities among his teammates. He has also been gracious in recent interviews. There hasn’t been a hint of vindictiveness toward detractors. He seems to exhibit a quality all of us claim to value, but its appearance is so rare that we seldom know how to react to it. Vick understands personal accountability. He knows that he was ultimately responsible for his own downfall and he went to prison for it. Even after paying that price, he does not appear to be embittered by the experience. Instead, he has been motivated to become a better person and (gasp) a role model. Today, he makes time to speak to students and others about his experience and why animal cruelty is so wrong.
Although I am an Eagles fan, I would love to see Vick continue his amazing personal turnaround even if he were helming the Cowboys (blasphemy). What a powerful message to send to people of all ages. That we are all human, capable of horrendous mistakes, but also of turning things around by working hard and changing course.
That brings me to my original premise, which is the tipping point at which personal redemption adds up to regained advertising endorsement contracts. My pastor and pigskinlovinglady.com reveal that I am late to the party on this subject. However, I would also like to suggest a seemingly outrageous endorsement op — Michael Vick and any major dog food company. It would be an instant buzz generator (fiercely argued about on both sides). Alpo, once long and successfully associated with Lorne Greene because of his Bonanza popularity, could tell a different story of image and reality with Michael Vick as endorser. PetSmart could show how smart they are at leveraging media moments by signing a controversial spokesperson. That’s quite a chance for big corporations to take, but Michael Vick could sweeten the deal, by donating his earnings from the contract to the SPCA. Good things can come out of even the worst of circumstances. You just have to work hard to make them happen.

Update: Michael Vick has his first endorsement deal and it’s not dog food!

Update 2: This is what I meant by Vick provoking visceral reactions. Here is a well-stated opposing opinion from one of Newton Associates’s friends, Lonny Strum, an experienced consultant, a knowledgeable sports fan, and a customer (former) of the car dealership that has Michael Vick at the center of its new ad campaign. It underscores the risk of nearly every celebrity endorsement deal and why Vick is riskier than most. This is why nearly everything Vick does of this nature needs to be balanced with a charitable component.

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