Publicity builds brand in the Internet Age

For millions of North Americans, Krispy Kreme is a must-have. Founded in North Carolina in the 1930s, it became famous for the quality, flavour and consistency of its doughnuts, along with the glazing and various toppings. People became addicts, and would buy 60 or more at a time, despite the price premium.

Over time, Krispy Kreme spread above the Mason-Dixon line and franchises opened up all over the US; thence into Canada; and then worldwide.

One of the factors driving Krispy Kreme's growth was word of mouth - the advocacy all marketers seek. As word spread that Krispy Kreme would be opening a store in a town, or a suburb, so the media would trumpet it. Endless articles would be published of Krispy Kreme's advent to a new town, or city, and by opening day, the pent-up demand was so huge, queues would stretch hundreds of metres around multiple city blocks.

Newspapers and radio and TV stations would give Krispy Kreme endless reams of space and air time; blogs and newsgroups would hum with anticipation.

The big day... Krispy Kreme would set up a marquee outside the store; filled with merchandise, it would give people something to look at and buy while they awaited the orgasmic moment and reached the front of the queue.

While they were waiting, people would be given free donuts to reward them for their wait. Krispy Kreme personnel would work the entire length of the queue with free samples to utterly delighted customers, who would quite happily tolerate the wait.

So powerful was the Krispy Kreme brand allure that folk would drive across the border from Canada to the US simply to fetch a few donuts.

As validation of the above, simply type "Krispy Kreme" in Google Images, and see how the company has been one of the most frequently quoted, photographed and revered organisations in the world, even though at its height it was a fraction the size of Dunkin' Donuts.

All of this was achieved with next to no advertising; rather, Krispy Kreme's fame was spread entirely through publicity - the unpaid for earning of column centimetres and airtime in various media.

This is the dream of every company which understands the power of publicity. It is viral marketing at its best.

A caveat, a little later, but let's look at a few other entities which have built extraordinary fame and value on the back of publicity:

Virgin: Sir Richard Branson has been, for three decades, certainly the most sought after interviewee in the world. His recent launch of Virgin Money in South Africa was covered wall to wall by all media, and the result is a storming business.

Microsoft and Windows 95: No amount of advertising could have equalled the value of publicity generated by Microsoft at the time of launching Windows 95. The product was always going to be a barnstormer, as the media worldwide give it unprecedented coverage.

The Body Shop: Anita Roddick for a time rivalled Sir Richard Branson as the world's most quotable CEO, and the success of The Body Shop was largely predicated on her publicity. A second caveat here ...

Google: No company has threatened Microsoft's hegemony the way Google has ... remarkably the company charges nothing for its products, unlike Microsoft, which charges high prices and creates customer lock-in with highly proprietary products. Google, like Krispy Kreme, dominates world headlines and spreads via advocacy; and like Krispy Kreme, it constantly gives people more than they expect.

All of these companies they hog headlines in way that their competitors simply cannot. They have rocketed to the front of their markets without advertising. They are proof positive, and possibly the greatest endorsement of the view that in the Internet Age, publicity and PR build brand.

The two caveats ...

Krispy Kreme over-reached itself. Its shares opened at $21 on IPO, and soared to $79. To sustain this craziness, management manipulated earnings and was caught out. To sustain the growth, franchisees over-reached themselves and borrowed heavily - often too heavily. So, as fast as Krispy Kreme grew, it is beginning to contract.

Anita Roddick hated advertising so much that she resisted her board's insistence that she should advertise - which was the right thing to do when the brand was established. As the Body Shop's growth began to slip, the board did what it had to do, and removed her.

These two examples highlight that publicity can only take an organisation up to a certain point: if management thereafter makes bad decisions, publicity can not undo those.


About Predictive Communications

Predictive Communications has developed and perfected the science of predictive public relations. Through a communications methodology that has been developed and honed over several years, we can predict a set number of outcomes and execute with 100% precision against clients' strategic requirements.

Predictive Communications has rapidly established a reputation as South Africa's most forward-thinking and effective technology and business public relations, communications, marketing and operations consultancy.

Underpinned by an unmatched mix of media knowledge, market understanding and journalistic experience, Predictive Communications has developed outcomes-based methodologies that move far beyond the traditional communications practices, ensuring real strategic value, ongoing exposure in relevant media, and, ultimately, sustainable growth for clients. The Predictive Communications offering centres on strategic external and internal communications essential to realising these goals and can be tailored to meet individual clients' requirements.

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