Stephanie Fierman Presents: The Tone Deaf Ad Of The Week

This is the second in a series of posts about ads so weirdly out of tune with the public zeitgeist that they deserve your attention.  I haven’t found one every week (thank goodness), but this one definitely makes the (F) grade.

Say hello to Hawker Beechcraft Corporation of Wichita, Kansas.  Hawker ran this full-page ad in The Wall Street Journal last week.  Intended to look like a letter from James Schuster, Chairman and CEO, the ad begins, “Dear Starbucks, You still need to fly.  We’re here to help.” and goes on to say that “in an era where every dollar counts” and “you need to fly smarter,” the Hawker 4000 is the way to go.  The Hawker 4000 costs $18.8 million, according to Wikipedia, and can seat 8 (for the aero-enthusiasts among you).

The ad is part of the company’s campaign to “fire back at the media and politicians on business jets” and was accompanied by a press release in which the company’s Marketing VP claims the company is “puzzled” that the media and political community could so badly mistake private aircraft to be a symbol of excess.  This individual goes on to express concern that this “stereotype is damaging the ability of American corporations to compete globally and, at the same time, jeopardizing thousands of American aviation jobs.” 

OK, let’s start with the revenue potential represented by this campaign.

That would be zero.  A private aircraft is a highly considered B2B purchase with a long sales cycle.  Let’s say there are 100 people/organizations in the market for this product right now (at best).  Such a sale requires personal relationship-building at the CxO level over time,  extensive, expensive marketing and promotional efforts and community/industry participation.  A newspaper ad is a needle in a haystack.

After all, Hawker Beechcraft has sold exactly one commercial-use unit so far to Talon Air, a luxury air charter company.  None have been sold outside the industry.  And as a side note, thanks for pointing out that Starbucks uses private aircraft (perhaps to help executives fly around closing stores and getting rid of staff).  Starbucks investor relations department must have been delighted to be called out in this manner.

If anything, this ad may impede sales, as it does not make Hawker appear to be a prudent and discreet partner at a time when such a purchase might receive signficant scrutiny.

But beyond the lack of revenue potential, this campaign is so unnecessarily cold and snarky that it eliminates the potential for any good result at all.  The company coyly says it is “puzzled” at the public outcry about waste and excess.  Puzzled? I don’t think so.  Private air travel is the only efficient way to fly?  They know this is not the case, or that customers and shareholders of companies that may purchase private aircraft would not think that was the case.

Look, here’s my point:  no one in this country or any other will begrudge a worthwhile company trying to sell a legal product.  Whether someone is unemployed or put out of his home, everyone understands that a company is in business to sell and that sales create jobs.  But to play-act surprise, to clasp one’s breast and say that the media and politicians are trying to “destroy” America’s strongest industries… to spend money on a full-page WSJ ad that will generate only bad will and no sales – at a time when most companies, including Starbucks (the unfortunate target of this particular ad), are scrambling, and Hawker Beechcraft itself is laying off employees – is irreparably misguided and, frankly, sad.

And P.S.  An effort like this also draws attention to the company itself as well as its executives.  For example, a quick review of a few SEC documents reveals that the company posted a 2008 net after-tax loss of $139.9 million, while Jim Schuster’s 2008 bonus was set at (up to) $630,000 – the same amount he received in salary.  And upon his imminent retirement, Schuster will get $321,000 in severance, company-subsidized health benefits for himself and his family for at least 12 months, an additional $750,000 when the company buys back 75,000 common shares and another $1 million for no discernable reason at all.  Is this what Schuster meant in November 2008 when he announced an earlier layoff and told employees to “plan for the worst?”  He certainly appears to have done ok for himself.

Is that a low blow? Wrong question.  This isn’t personal: it’s business.  CEOs mustn’t get pulled off track by what they know about the inner workings of their own organizations.  It’s how things look in the current economic climate that must be factored into the equation.  Tell me again why Hawker’s executives and ad team deliberately drew this kind of attention to themselves?

In his memo to all employees last month announcing additional layoffs, Schuster offered concern, understanding and reflection on the economic conditions that are causing suffering, both within and outside his own company. 

A good media and crisis communications expert – and any marketer worth his or her job – would recommend to Mr. Schuster, Hawker Beechcraft’s Board and Schuster’s successor that perhaps this tone is far wiser and more welcome under the circumstances.
Hawker_Beechcraft

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