Friday, December 23, 2011

Japan: Devastating Earthquake or Marketing Opportunity?

On Friday 12th March 2011, at 2.46pm local time, an earthquake measuring 8.9 on the Richter scale shocked the north-east shore of Japan. The movement of the tectonic plates triggered a tsunami, which overwhelmed coastal towns and potentially claimed over 10,000 lives. In the wake of these natural disasters, Japan declared a 'nuclear emergency' as they struggled to cool a reactor at Fukushima Daiichi nuclear power plant. Those who survived the earthquake and the tsunami are now being tested for radiation and have been evacuated from their homes. Humankind has watched the scenes in disbelief, unable to rationalise that these images are not the work of CGI but painfully real - part of our world.

Less than 3 days after the incident, British corporate merchandise suppliers were lamenting that the Japanese earthquake had affected USB Flash Drive production. As survivors in Sendai queue for heavily-rationed supplies of food and water, customers were advised to "be patient" and assured there had been "minimal immediate impact" on SanDisc's "chip fabrication facilities". The suppliers even offered a helpful alternative to USB drives in the form of CD/DVD production. Of course, USB drives were still available if you were willing to pay: The unit cost of a 2 GB USB sold at a quantity of 50 rose from £7.35 to £9.17 in less than 72 hours.

Earthquake & Tsunami In Japan

Or not, since thousands of mothers, fathers, daughters and sons - human beings - are still missing and Hope is retreating.

No one is naive, the economic cost of the disaster will be far-reaching and enduring; Japan is the world's third largest economy and its infrastructure will only recover slowly and with a considerable injection of financial support. Indeed, it is important that Japan's fall in the stock market has been well documented by the world's media and the pejorative affect the earthquake will have on business worldwide is not in dispute. However, one could be unsettled by the opportunity this supplier has leapt upon - the opportunity to market another side of their business and to raise the unit cost of their products. It was right the company should advise its customers of an issue with supply. It should not however have used this humanitarian crisis as a vehicle for promotion, particularly not in its immediate aftermath.

It should be noted that the primary source was a communication from business to business. Other efforts to seize a marketing opportunity have been far more patent and public. Microsoft was forced to apologise this week after they offered to donate to "Japan quake victims" for every retweet @bing received, "up to 0K". Critics immediately accused Microsoft of securing cheap and tasteless advertising for their search engine.

Microsoft's approach to donation was misguided. Other corporations have struck a finer balance between concern for their own production levels and the Japanese people. Toyota for example, has temporarily closed its Japanese plants for the safety of their workforce though they could have continued to manufacture on Friday. Further, while Toyota is investigating the damage that may have occurred in their Japanese factories, which are responsible for 38% of the company's total production, they have made it clear that their concern is primarily with the nation itself and donated 3.8 million to relief efforts. Altruism is a complex concept and whether an act can ever be truly selfless is an issue philosophers will continue to debate. However, Microsoft's high-profile fundraising error should encourage caution and sensitivity to other organizations.

The USB Flash Drive suppliers promise to "help as much as humanly possible" should the shortage be inconvenient. Right now, perhaps this aim at 'human' effort would be better placed considering those humans that have lost their loved ones, their homes; their country as they knew it.

Japan: Devastating Earthquake or Marketing Opportunity?

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