Archive for March 27th, 2007

Cold-fX Gets Dose of PR Reality


March 27th, 2007 by Sterling Hager

No amount or variety of PR is going to fix a compliance or ethics problem.

Now before the Canadians send out the Mounties to come get me, I'm not saying this company is playing fast and loose with the truth. I am saying they seem a bit selective in how they report things. And I'm saying they are long on marketing and PR and a little short on science or their defense of their science. [For the record, I'm not an investor in this company. If I were, I'd be selling.]

That being said, no where is ethics and compliance more important than over a product you're asked to put in your mouth and swallow, especially if it promises health benefits or curative powers or an immune system boost. Just ask Wendy's and the peanut butter people, the peach pit extract people, the green tea people, the Viagra folks, the spinach growers and… and… the list goes on an on.

Here's a story from March 26th about the folks at CV Technologies in Canada, makers of Cold-fX. It hasn't been a very harsh winter. Colds haven't bedridden lots of us. So, while sales of Cold-fX to retailers were good earlier, the product didn't 'flu' off the shelves as expected. It's probably going to be passed back about as fast as germs travel.

In the U.S., Cold-fX has to be sold as a "nutritional supplement," presumably because it's other benefits haven't passed FDA muster? I think the main active ingredient is Ginseng? Their CEO says that while CV Technologies has been compliant (I think she's referring to the United States), it's competitors have not.

Not highlighted in the above-linked piece is this previous item. Entitled in part, "Trust the Science," which is CV Technologies' company motto. It's a story about experts looking at the efficacy of the treatment. It's a complicated, fascinating piece. But this quote summarizes one researcher's basic finding:

James McCormack, a professor at the University of B.C. faculty of pharmaceutical sciences who specializes in evaluating and interpreting clinical drug trials, said in an interview that before the public buys into the company's motto, "trust the science," they need to look at the science.

He looked. He turned away. He sneezed.

Now back to the more recent piece:

In its latest announcement, CV Technologies said the size of its quarterly net loss will depend on the volume of returned product, and it is working to minimize this by working with U.S. retail partners "to better focus marketing and public relations expenditures to specific consumer segments."

The Company already spends something like 14% of gross revenues on marketing and PR. So I have a better idea. How about CV Technologies 'better focus' their efforts on making something that everyone believes actually works, that they prove works, that is positioned appropriately, and that meets the sniff test of regulatory bodies everywhere. They should quit beefing about unfair, unequal treatment and stop thinking a better message is going to overcome a product issue.

Note to CV: Take two aspirin and call me in the morning.

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Social Networks and Politics


March 27th, 2007 by Sterling Hager

My grandfather told me once, "never talk politics because it will only lead to many arguments and consequently ruin friendships and relationships – plus, you can never win." Maybe that’s why I’m not a strongly enraged political debater. Who knows? That being said, this post is not about Liberalism, Conservatism or anything in between – so don’t worry – I’m not pushing an agenda. It is, however, about how many politicians are finally wising up to the power of social networks.

The rise of social-networking sites is making the controlled, broadcast-style way of doling out political information totally obsolete.

Tom Gerace of Gather.com was quoted in this InfoWorld article saying:

“If you just play in the traditional media, you’re missing most of your audience today – not 10 years down the road, but today." 

Wow. Please excuse me for mixing religion and politics here, but I only have a one word response to that: AMEN!

Over the past few months, candidates have vowed to use the power of the Internet to communicate directly with voters. Internet and technology-savvy young potential voters – like MySpace’s audience of teens and young adults – are usually notoriously hard to reach.

Now, we see the birth of MySpace Impact, a channel on the popular site that allows this cherished demographic to “learn about the candidates and their stance on the issues that are most important to you, and to find out how you can show your support.” Oh yea, you can register to vote on the site as well.

us_politics.pngDoes this work? Well, Legacy PR “experts” specializing in traditional communication methods for an increasingly inattentive public hate the measurement thing. They always have. At AgencyNext, we like results and stats. So, let’s look at some metrics, shall we?

After doing a little research, I found some stats for one web page of a particular candidate one month after the site was launched:

70,000 members signed up
4,000 blogs were started
3,000 fundraising pages were created
2,400 groups were formed

You can be the judge.

A wise man once said - “Politics is the skilled use of blunt objects.” While this still remains true, it looks like social networks are redefining the dexterity needed to use those objects.

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