Opinion: P&O brand undermined by extensive adverse media coverage By Grant Common - Editor published April - May 2006 Grant has 30 years direct experience in public relations and communication in Australia and New Zealand - as well as directing and managing programs in the UK and USA. He has consulted to Governments, publicly listed companies, industry bodies, marketing organisations, multinationals and not-for-profit organisations. He is Managing Director of Sydney-based Network PR and as a Fellow of the Australian Institute of Company Directors (having completed the Company Directors Diploma examination) he is also one of the few PR practitioners to have the perspective of the company director. Rough Seas for P&O It would be hard to find a better example of how today’s media environment has the potential to impact on a product category or brand than what cruise company P&O has recently been going through in Australia. P&O’s negative Australian media exposure goes back three years. It started in late 2003 when tests showed 200 people on board the 'Pacific Sky had contracted the norovirus in late December.  In mid 2004, 140 passengers contracted the same virus during a 12-day South Pacific cruise.  Then the 'Pacific Sun' gained notoriety regularly breaking down at sea with irate passengers demanding refunds and lots of resulting media coverage.  Late last year it escalated to a female passenger allegedly being drugged, raped and then killed- which was played out in court and in explicit detail through the media in March this year. If that was not enough in early April the Sydney Morning Herald ran a front page story “Cruise Habits - The Plan: party for three days, don’t get drugged and raped”. Part of the story related to the ‘Pacific Sun’ having to return to Sydney after just four hours for a male to be handed over to police for allegedly assaulting a female and a security guard. The SMH then proceeded to outline in graphic detail how young Australians “lead the pack in redefining cruising as a pursuit for the young and drunk: less blue rinse, more blue movie”. It interviewed passengers going on special three day cruises out from Sydney describing them as a ‘grog fest’ with a P&O spokesperson saying in response - “we don’t do booze cruises”. The image of P&O portrayed through the media is at variance with historical perceptions of the brand. And one wonders how it all fits with the traditional 40-50 year old customer P&O is quoted as saying it still seeks for its longer cruises. Surely the media exposure P&O has suffered - from unreliable ships, apparent tardiness in offering compensation, serious crime being committed, sex romps and drunken passengers is putting a lot of strain on the brand and the business. Yet, P&O continues to merrily continue with its advertising as if nothing has happened. In our last issue of PR Influences we reported on a US study that showed a strong correlation between paid advertising and unpaid news coverage and the need to manage and balance both. One finding of the report was that in times of widespread and extremely negative news coverage (which even the most impartial observer would have to concede P&O has been experiencing for some time now), incremental advertising does not have a positive incremental impact, and may even have a negative effect. It would make a fascinating case study to plot P&O’s bookings over the last two to three years and correlate these with the regular breakouts of adverse media coverage, culminating in recent events. It would also be interesting to note any change in the demographics of those still brave enough to experience a P&O cruise. The one saving grace for P&O is that there is no real significant local competitor for cruises out of the Sydney - and a cynic might argue that given the damage P&O has inflicted on the image of cruising, nor is there likely to be for some time! The P&O experience touches on several aspects of modern PR - crisis management, media management and message delivery. Above all it shows that the brand cannot be promoted - and protected - through advertising alone. Grant Common Editor - PR Influences Managing Director -www.networkpr.com.au

PR Influences Australian Newsletter. Article: P&O brand undermined by extensive adverse media coverage. Information Content:Reputation Crisis Communications