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[Introduction to Crisis] Popchips, purveyors of the healthy, popped potato chip, launched a video commercial co-developed by and starring Ashton Kutcher as part of an advertising campaign called “World Wide Lovers.” Kutcher, Popchips’ brand ambassador and ‘president of pop culture’ since 2010, stars as four characters looking for the perfect match in an online dating show. The campaign turned disastrous as intentions to parody sunk with adverse complaints of racism. Kutcher’s portrayal of the ad’s Raj character [see Exhibit 1] fostered complaints within minutes of the video going viral. Pretending to play a 39-year-old Bollywood movie producer, Kutcher dressed the part donning a “brownface” and stereotypical Middle Eastern accent.i Popchips claims the video intended to stir up a few laughs and “poke fun at 34-year-old Kutcher’s flailing love life.”ii The response on Twitter, most notably from the Indian community, was harsh and instantaneous, deeming the ad racist, unfunny, and a bad judgment call across the board. Popchips CEO Keith Belling responded swiftly to the circulating criticisms by issuing an apology on the company’s blog, asserting that the campaign “never intended to stereotype or offend anyone.”iii Popchips took further action to remove the Raj character from the campaign. The campaign proceeded with the other three eligible bachelor characters (Swordfish, Nigel and Darl) and the intention to the launch as planned on May 7, 2012 [see Exhibit 2].iv Swordfish (29) is a tattooed biker with a soft, romantic side. Nigel (24) is a stoner hippie with dreads and what appears to be a mix between an Australian and British accent. Darl (no age given) is a fashion diva who embodies a striking resemblance to Sasha Baron Cohen’s Bruno character. It is assumed that all of Kutcher’s international alter egos enjoy Popchips, yet the only form of product placement appears during Darl’s cameo, where he treats his lap dog, Poo Poo to a few licks. According to The New York Times, the “World Wide Lovers” campaign, a combination of outdoor ads in Denver, Los Angeles, New York, Phoenix, Seattle and San Francisco, as well as Facebook, YouTube and social media tactics, amounted to $1.5 million.v [Industry/Issue Dynamics] 1. Healthy Snacks Industry Research indicates that healthy snacking is an important part of maintaining a healthy lifestyle and key to a well-balanced diet. Better-for-you snacks provide alternatives to high-calorie convenience junk food, and an answer to the demands of a more health-conscious society. For a complete look at the growth of the U.S. nutrition industry from 2003 to 2010, see Exhibit 3.

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KEY MESSAGE #1: The industry of healthy snacks is thriving. According to a research from just-food, sales of healthy snacks are forecasted to rise by more than a fifth by 2014. Among all healthy snack categories, sales of crisps and other salty snacks are expected to more than double from $775 million to $1.7 billion.vi The increase in market share results from the general trend towards healthier eating and American consumers' shift from carefree snacks to healthier products, with 87 percent of consumers reportedly trying to eat healthier according to Symphony IRI Group’s 2012 survey.vii Furthermore, a 2012 report by The NPD Group, a leading market research company revealed, “consumers with the healthiest diets consume 36 percent more snack meals a year than the average consumer”viii [see Exhibit 4]. The once-adverse attitude about snacking is no more. Instead, consumers view and pursue snacking as an approach to improving healthy eating habits. The opportunity for manufacturers to capitalize on health and wellness innovation via product development and marketing is thus a growing trend.

KEY MESSAGE #2: Popchips holds a solid position in the healthy snacks market. Despite the daunting $90-billion-a-year global snacking market,ix Popchips is a major contender in the healthy snacks industry. After just five years on the market, Popchips reached the top selling line of popped chips and represents one of the fastest growing snacks in America, according to AC Nielsen. Its awards include Real Simple Magazine’s “Best Chips,” Yahoo!’s “8 Most Addictive Foods,” Good Housekeeping Magazine’s “Best Low-Calorie Snack,” etc.x Forbes most recently ranked Popchips fifth on list of America’s Most Promising Companies in its February 11, 2013 issue. Popchips, Inc. was formed in 2007 by self-proclaimed snackers Keith Belling and Pat Turpin. The desire to find a chip that was both tasty and healthier paved way for their mission to create a new category of popped snacks. The two snackers spent over a year snacking and popping until they perfected the product. Popchips first introduced its 11 potato chip flavors in Safeway stores on the West coast and expanded to New York in 2009. Sales dramatically increase year-after-year since hitting the market, reaching $6.5 million in sales in 2008, ending 2010 with $40.9 million earnings in sales, $73 million in sales in 2011, and closed out 2012 with $93.7 million in sales.xi The company is currently worth approximately $375 million.xii Popchips’ innovative marketing – an intermix of grassroots programs, multiplatform advertising, social media and celebrity endorsements – created a strong brand reputation, exceeding that of its competition.

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KEY MESSAGE #3: Popchips is defined as a “premium” snack available at over 20,000 premium supermarkets and a number of high-end distribution channels nationwide.xiii Chip conglomerates, such as Lay’s, Pringles, Doritos, Tostitos and Rold Gold are defined as “middle-market brands” and not in direct competition with Popchips, which is in the market of “premium end” snack products.xiv Niche competitors include brands like Pretzel Crisps, Pirate’s Booty, Kettle Brand Potato Chips and Stacy’s Pita Chips. Special K Cracker Chips is a growing competition in the market of healthy air popped snacks, especially with the trend to hate fast food in today’s society. Consumers will find Popchips in retail stores across the country, including Target, Whole Foods, Jamba Juice, and even on Virgin Airlines flights and in the mini bars at W Hotels.xv Popchips recently made its way into the United Kingdom.xvi Furthermore, Hollywood celebrities such as actor Ashton Kutcher, Jillian Michaels of “The Biggest Loser,” rapper Sean “Diddy” Combs, model Heidi Klum and most recently, popstar Katy Perry endorsed and invested in the company.xvii

Its downfall: Popchips products have been criticized as a pricey snack option and an expensive choice for the amount of chips per bag.

2. Celebrity Endorsement Celebrity endorsements are a staple strategy among manufacturers, retailers and businesses looking to add recall to the brand, and ultimately boost the company’s bottom line. The practice of celebrity endorsement is often used in television advertising, product marketing, or for the purpose of adding value and buzz around a launch event.

KEY MESSAGE #1: Celebrity endorsement is prevalent in brand management. The marriage between celebrities and brands first became prominent in marketing. According to Market Watch, 25 percent of commercials now use celebrity endorsements.xviii Brands hire celebrities as spokespeople to benefit from the social and commercial power A-list names hold, and in turn use the earned power to increase brand recognition and promote products. Celebrities’ fans and followers hold the potential power to popularize brands in dramatic ways. Large companies often employ more than one celebrity endorser to capitalize on the opportunity to excel past brand competition. A celebrity may also endorse multiple brands to maximize his or her commercial power.

Brands are willing to budget for celebrity endorsement expenditures, with the promise of consistency, long-term commitment and commendable behavior from the endorsed celebrity/celebrities. Professor and Director of Research Darin W. White of Union University reports that in the U.S. alone,

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advertisers spent two to three billion dollars in 2006 on celebrity endorsements.xix However, very little research exists to prove the effectiveness of endorsements despite its popularity as a strategy and tactic among so many brands. Studies show a slight and temporary increase in stock prices upon the announcement of an endorsement, thus providing some faith in endorsements in the marketplace. Also, a link often exists between the recent success of a celebrity, such as a through a Super Bowl win or Grammy nomination, and the affiliated brands’ increase in sales. Likewise, if a celebrity falls into an adverse scandal, the reputation of the celebrity’s sponsoring brand suffers and its sales often decrease.xx

KEY MESSAGE #2: Celebrity endorsement is a powerful strategy in marketing. Celebrity endorsers produce more effective results in aiding brand exposure when compared to other types of brand ambassadors, such as brand managers and professional experts.xxi The mutually beneficial collaboration between celebrities and brands is a powerful strategy popularly deployed in today’s marketing.

Celebrity endorsers build upon a corporate brand’s identity. Brands choose endorsers carefully, knowing that using a celebrity’s face to channel the brand’s message will ultimately reflect the value and image of the brand. Celebrities grab attention and connect with publics on an emotional level, and when used as an endorser, a celebrity brings a humanizing element to the brand. Products with little differentiation especially benefit from endorsements when used as a positioning tool.xxii For example, the association between David Beckham and H&M underwear and Nicole Kidman and Omega Watches enable the two brands to resonate with key audiences more so than a brand with a faceless campaign. Furthermore, research indicates that celebrity endorsers have a powerful impact on their followers’ likeliness to respond to brands on social media [see Exhibit 5]. A 2011 study by The Nielsen Company showed “64 percent of adult U.S. Internet users who follow a celebrity also follow a brand, which means the celebrity follower is four times more likely to follow a brand than the average U.S. adult online.”

Corporate brands help celebrities build their personal brands. Associating with a certain brand tells the public that the celebrity holds the same values as the company he or she endorses. The association puts the company and the celebrity on the same level in terms of socioeconomic class and reputation. A celebrity often collaborates with a brand to rise in social standing. Athletes often seek sponsorship from companies, such as Nike or Red Bull that will improve his or her reputation and associate him or her with talent and hard work.

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Both brands and celebrities benefit from the visibility and exposure of celebrity endorsement campaigns. The celebrity endorsement strategic function creates news and controversy for media that, in turn, gains the attention of the public. Awareness of the organization and the celebrity increase as the messages reach the public. Both parties gain access to each other’s following, and with the ‘right fit’ expand their reach of possible demographics and previously untouched consumers/fans.

KEY MESSAGE #3: Ashton Kutcher’s success in the digital industry and on social media platforms made him “the perfect fit” for Popchips. Ashton Kutcher is known professionally as an American actor, most notably for his role in the TV sitcom, That ‘70s Show and most recently, Two and a Half Men. He is also a successful producer and tech investor.

Kutcher found success in the digital industry in 2000 when he co-founded Katalyst, a media company that creates original content for digital media, television and film. Fast Company recently named Katalyst one of the “Most Influential Companies.”xxiii Kutcher also launched his own Twitter app with UberMedia, called A.plus in March 2011.xxiv

According to Twitaholic.com’s ‘Top 100 Twitterholics based on Followers,’ Ashton Kutcher (@aplusk) ranks number 22, as of February 3, 2013.xxv He currently has about 13,700,000 followers.xxvi

Kutcher successfully invested in 40+ tech opportunities, including Skype.xxvii The Washington Post named Kutcher number three on its list of “Most Innovative Celebrities” in 2008.xxviii In 2011, Kutcher co-founded A-Grade Investments, a venture capital fund designed to invest in technology start-up companies. The company has since invested in organizations such as Spotify, Foursquare, and online vacation rental website AirBnb.xxix

Kutcher is also currently the face of Nikon camera advertisements.

While Kutcher is indeed a mainstream celebrity, and a valuable status symbol for Popchips, his role in the Popchips faux dating website commercial is an ironic one. He appears onscreen ‘single and ready to mingle’ as he plays out the role of four bachelors, while in the real world, tabloids about his fairly publicized divorce with actress, Demi Moore are transpiring. The break-up received a notable amount of media attention, with special attention to Kutcher’s alleged infidelities.xxx In the “World Wide Lovers” video, Kutcher attempts to portray a positive image for the Popchips brand by encouraging the audience to get involved romantically with Popchips, yet his publicly dramatic divorce and newly-single label raise question about the appropriateness of Kutcher’s identity in the ad.xxxi

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3. Digital Industry and Viral Campaigns Viral campaigns have room for both high volumes of participation and engagement, as well as critique. The social sphere of virtual networks creates space for messages and campaigns to spread like digital wildfire (positively or negatively) in a short amount of time [see Exhibit 6 and Exhibit 7 for infographics on the growth of social media].

KEY MESSAGE #1: Social media platforms are the new norm for the digital industry. The digital industry, or new media industry, is growing rapidly and shares an open association with many market segments in many areas. The advertising industry capitalizes on the proliferation of new media, as seen with large agencies running multi-million dollar interactive advertising subsidiaries. Public relations firms take advantage of the opportunities in new media through interactive call-to-action campaigns. Interactive PR practices include the use of social media to reach a mass audience of online social network users. In less than a decade, social media became an irreplaceable part of society and revolutionized the way we communicate with each other. According to the Pew Research Center, more than two-thirds of American adults use social media today. So, it’s no surprise when data collected by Search Engine Journal revealed Facebook as the third largest company in the world, with a number of registered users twice the size of the U.S. Population [see Exhibit 8].xxxii However, the newness of social media and viral campaigns for public relations makes measuring ROI an inexact science. “Retweets” and Facebook “Likes” bring awareness to a company, but researchers find it difficult to determine whether these quantifiable numbers directly result in an increase in sales. PR practitioners need to set measurable objectives and establish systematic methods of monitoring to establish the success of a viral campaign and justify the credibility in social media/viral campaigns. KEY MESSAGE #2: Social media has become the ‘new’ public relations. Social media transformed the relationship between the members of the public and those communicating with them. Most companies now use social media to promote products or services online, with 71 percent of the companies maintaining a Facebook page and 59 percent keeping a Twitter account, according to the data from Search Engine Journal [see Exhibit 9].xxxiii A recent survey also found that an eye-opening 80 percent of public relations professionals routinely use social media to cultivate media relationships, share important company news and solicit feedback. Perhaps even more importantly, clients and business affiliations turn to social media as a

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primary source of news and information about products, services or other updates of interest.xxxiv KEY MESSAGE #3: Social media can be a useful tool, but can also be a nightmare-looming PR crisis. When done right, the potential benefits of social media to your business are enormous. The success of Old Spice's "The Man Your Man Could Smell Like" commercial is a perfect example of audience engagement and transmedia storytelling via social media. Using the power of social media to maximize influence, this video quickly went viral and generated nearly 35 million views and brought a large profit to the company. However, social media sometimes turns into a nightmare if you not managed properly. The magic of social media is that it’s different from traditional media, in that it gives everyone the right to raise opinions and influence public opinion. We are no longer in a world dictated by the context of traditional media. Social media platforms and an increase in brand-to-consumer two-way communication provide a world where speaking out and engagement are encouraged, and often rewarded. While social media provides a platform for companies to promote products and services, it also opens up a window for customers to discuss and make critical comments about companies whenever they feel disappointed, insulted or aggravated with a brand. For example, the huge media storm Applebee’s recently experienced offers a valuable lesson to PR practitioners. Applebee’s thought that by deleting defensive responses to people's comments on Facebook that people would simply forget its mistakes. However, they ignored a critical point - the Internet never forgets. Even if posts are removed, people copy screens and pictures to keep things alive. That is the uniqueness of social media - the life cycle can last forever. The implications of social media were no different in the case of Popchips’ “World Wide Lovers” ad campaign, as an immediate parade of negative attention transpired from audiences claiming the ad to be ‘racist.’ Even after pulling the ad from the Popchips official YouTube site, audiences continued to share, post and repost the video, creating an uncontrollable spreadable force. The looming prevalence of the ‘racist’ ad amidst the virtual world created a source for negative brand imaging. The example perpetuates the ‘lack of control’ risk that all companies face when using social media as a marketing tool. However, despite ill consensus surrounding the ad and a lack of control over its spreadability, Popchips promptly responded and edited the campaign before launching it in its entirety, and before the campaign’s traditional marketing and advertising features went live. Digital media allows brands to

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make rapid changes in campaigns, changes that might take weeks or months to accomplish with traditional media. The risk of running this ‘racist’ ad on mainstream television, as opposed to YouTube first, could have been a much more financially costly mistake as well. In this case, social media chatter served as a red flag warning, one that Popchips listened to, legitimized and used as a tool to avoid further brand damage.

4. Similar Consumer Branding “Racist” Cases Soft drink giant Coca-Cola recently came under some fire from Arab-Americans (specifically the American-Arab Anti-Discrimination Committee and Muslim Institute for Interfaith Studies) for its seemingly racist Super Bowl ad. This commercial advertisement, titled “Mirage,” features different characters in the desert (an Arab, cowboys, Vegas showgirls), all racing against each other in pursuit of a thirst-quenching Coke. The advertisement teaser launched on January 22nd on YouTube, at which point Coke asked viewers to participate on CokeChase.com and vote for their favorite character(s).xxxv The winner would be revealed in Coca-Cola’s Big Game debut commercial. Criticisms centered on the Arab character’s discriminatory attire [see Exhibit 10], as well as the fact that the character was excluded from the ‘Chase’ ballot and not even in the running to win the contest. Coca-Cola responded to criticisms, defending that the Arab character intended to portray a movie star filming his latest blockbuster in the race for Coke. Coca-Cola released a statement saying, "We are very concerned by these allegations and in no way is our ad meant to be derogatory to any group,” adding that "Coca-Cola is committed to delivering upon its core values from refreshment to happiness across all of its marketing communications. For this year's big game campaign, we took a very cinematic approach, and all of the characters created are nods to great movies past." However, despite the ‘politically incorrect’ critiques, Coca-Cola decided not to pull or edit the final ad.xxxvi After Coca-Cola issued its apology and explained its expanded intentions for the Arab character in the Big Game commercial showing, the American-Arab Anti-Discrimination Committee (ADC) spoke out, uttering that, "ADC and Coca-Cola have come to a mutual understanding and welcome the continued dialogue. Coca-Cola agreed to take steps to ensure viewers understand the back-story of the character. They also agreed to work with ADC directly to prevent such incidents from occurring again, and are committed to advancing diversity and understanding."xxxvii Even though this ad created outrage among Arab-Americans, a majority of the public considered this ad entertaining, adding that people should not be so sensitive. One viewer rebutted against these ‘racist’ remarks saying, "Racist, I am sick of hearing that word. EVERYTHING is racist to someone." Another posted, "I don't see this ad as being racist at all and certainly I do not believe Coke intended to slight Arab people. Women and cowboys could just as easily complain about this ad too, I only wish I could have voted for the men on the camels. I really think all the people complaining that this is racist should lighten up a bit."xxxviii

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Overall, this ad did not negatively influence the Coca-Cola brand image on a large scale, and it was unnecessary to pull the ad. However, Coke could have compromised and shown respect for the Arab community by adding the Arab character to the online ballot. The financial burden of pulling or editing the ad had a heavy implication; one Coke decided was too risky. Coke’s decision could potentially harm Coke's business with the Arab community, effect sales in the Middle East and Northern Africa, as well as sales in many Arab-American-owned convenience stores and other retail outlets in Arab-American communities in the United States. Acura is suffering from the blame of being racist too. In its recent casting call for its 2012 Super Bowl ad, the company and its ad agency wrote in its casting document that they were looking for an African-American actor who was "not too dark." The famous car brand soon apologized for its behavior, saying that, "We apologize to anyone offended by the language on the casting sheet used in the selection of actors for one of our commercials. We sought to cast an African-American in a prominent role in the commercial, and we made our selection based on the fact that he was the most talented actor."xxxix Like most apologies released today by corporations, politicians and celebrities – none of whom would ever admit to purposefully engaging in anything unethical – Acura's statement doesn't indicate that the company is sorry for doing wrong, only that it feels sorry if some people might have been offended. The public’s restless outrage post-apology clearly indicated an unforgiving audience sentiment. One viewer wrote, "This is hilarious. Acura said it had ‘sought to cast an African American in a prominent role.’ Well, what else is new? Commercials for the last 10 years or so have featured blacks as the surgeon, computer programmer, or office manager while portraying white males as complete doofs played by Jewish actors. A deliberate cultural assault on the very people who created Western Civilization and a complete misrepresentation of the endemic pathologies of black society." Acura’s crisis worsened when it was revealed that the company advertised for a lighter skinned actor simply because white consumers relate more easily to them than to darker skinned African Americans. Acura was also accused of propagating the idea that light skin is more attractive and desirable than dark. Whether this was their intention or not, the grievous rumors are enough to damage the brand indefinitely. We suspect that this will eventually blow over, but for now, Honda's luxury brand has some egg on its face. In fact, the U.S. advertisement industry has been notorious for its disrespectful and unfair treatment of Black acting and marketing talent, Black-owned advertising agencies and Black-owned media for a long time.

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Volkswagen is taking some heat for its ‘Get Happy’ Super Bowl ad this year as well. The commercial features a contagiously cheerful, white Minnesotan male whose happy-go-lucky attitude is intended to be a direct reflection of his new identity as a proud owner of a 2013 VW Beetle. He is so happy that he dons a Jamaican accent as he strolls through the office cheering up his glooming colleagues and livening the mood of his dreary office. Like most of the advertisements accused of being racist, the honest objective of this ad was to entertain the public by playfully using a stereotype, in this case, a stereotypical accent. The public’s reactions to this seemingly racist ad are however diverse. Barbara Lippert, a veteran advertising critic, branded the ad "so racist." Meanwhile, Wykeham McNeill, Jamaica's minister of tourism and entertainment, said that he is not offended by this ad. "We view it as a compliment," McNeill says. "People should get into their inner Jamaica and get happy."xl Twitter saw mixed reactions as well; some people calling this ad "getting real close to uncomfortably racist,” while others tweeted, "it is one of my favorite Super Bowl commercials." Despite criticism, the Jamaicans embrace the controversial commercial. The island's government endorsed the commercial and adopted the ad (and its message) as a way to introduce the happy spirit of Jamaica to the world. VW’s pre-crisis management was commendable in that the company tested the ad with consumers, including about 100 Jamaicans, and received no negative feedback. In the hours since the issue blew up, VW acknowledged the plethora of compliments it received in regards to the ad, and thus gave "no thought to pulling it." The company's website still bears the ‘Get In. Get Happy’ theme, offering a clip of Jamaica's Jimmy Cliff singing "C'mon, get happy." [Other Companies/Organizations Involved] Alison Brod PR invested in and promoted the Popchips campaign. Established in 1995, Alison Brod is a PR and marketing agency that specializes in beauty, fashion, restaurant and spirits, celebrity, entertainment and lifestyle. The agency also used other celebrities, including Diddy, Kim Kardashian and Ryan Seacrest to promote the campaign through their Twitter accounts. When controversy hit, Alison Brod not only put itself and Popchips in a crisis, but were at fault for associating their celebrity clients and their tweets/links to the racist-deemed ads.xli

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Zambezi shot the commercial campaign. The full-service creative agency was established in 2006 and is known for specializing in sports and entertainment brands. Zambezi currently has offices in Venice Beach, California and Shanghai, China.xlii The New York Times & The Washington Post, specifically Stuart Elliot from The New York Times and Sarah Anne Hughes from The Washington Post covered this campaign, never once noting the ad’s offensive nor its racist nature.xliii This is troublesome in that these writers are paid to understand media and culture. [Crisis Timeline – What Happened]

Popchips launched its viral video campaign, “World Wide Lovers.”

Public outcry and complaints about the video’s controversial ‘Raj’ character surfaced via the brand’s Twitter feed, Facebook page and popularized blogs. The most notable criticisms were from Indian-descended rap

group, Das Racist [see Exhibit 11], tweeting: “Hey @aplusk, what’s with the racist brownface video you talentless, pretending to care about sex trafficking piece of s***,” among others that same day.xliv

Popchips CEO Keith Belling issued an apology on the Popchips blog saying: “Our team worked hard to create a light-hearted parody featuring a variety of characters that was meant to provide a few laughs. We did not intend to

offend anyone. I take full responsibility and apologize to anyone we offended,"xlv further adding, “At Popchips we embrace all types of shapes, flavors and colors, and appreciate all snackers, no matter their race or ethnicity. We hope people can enjoy this in the spirit it was intended.”xlvi CBS quoted Belling saying, “We received a lot feedback about the dating campaign parody we launched today and appreciate everyone who took the time to share their point of view. Our team worked hard to create a light-hearted parody featuring a variety of characters that was meant to provide a few laughs. We did not intend to offend anyone. I take full responsibility and apologize to anyone we offended."xlvii Popchips also pulled the video from the company’s YouTube channel and made all the videos related to the campaign private.xlviii The Raj character was removed from the company’s Facebook page and scheduled billboard ads.xlix

Wednesday, May 2, 2012

Mid-morning Wednesday

Wednesday Afternoon

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Preceding Belling’s blog post apology, he got on the phone with entrepreneur and famed blogger Anil Dash [see Exhibit 12], whom prior to the phone conversation, ripped Popchips,

directly nixing Kutcher as well as the campaign’s PR (Alison Brod PR) and ad team (Zambezi). Anil wrote: “Don’t watch it; It’s a hackneyed, unfunny advertisement featuring Kutcher in brownface talking about his romantic options, with the entire punchline being that he’s doing it in a fake-Indian outfit and voice. That’s it; there’s seriously no other gag… I think we can attack the process by which these broken, racist, exploitative parts of our culture are created. I think the people behind this Popchips ad are not racist. I think they just made a racist ad, because they’re so steered in our culture’s racism that they didn’t even realize they were doing it.”l “If you find yourself putting brown makeup on a white person in 2012 so they can do a bad ‘funny’ accent in order to sell potato chips, you are on the wrong course. Make some different decisions.”li “Right now you’re making the world worse. Not just for me, or a billion other Indian people, but for my son, who I am hoping never has to grow up with people putting on fake Indian accents in order to mock him. Maybe people won’t be familiar with that stereotype if you, yes you personally, can refrain from spending millions of dollars and countless hours of your time on perpetuating that stereotype in order to sell potato chips.”lii Post-phone conversation, Anil tweeted: “@anildash Just got off the phone w/ the founder of @popchips, who was thoughtful, sincere, & contrite. I'm optimistic about their response.”liii

The video went private, but the agency was still hosting it on their Vimeoliv

TMZ reported the controversy; Belling respondedlv

The video ad was pulled from the Popchips YouTube channel and the Raj character was removed from the company’s Facebook page and the planned billboards intended to launch on May 7lvi

Late Wednesday

Wednesday, between 6:30 pm – 8:00 pm

Thursday, May 3, 2012

Thursday, May 3, 2012, 12:16

pm

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Comedian Hasan Minhaj [see Exhibit 13] slammed Ashton Kutcher's controversial Popchips ad and illustrated his frustration by creating his own videolvii The rest of the “World Wide Lovers” campaign launched, with its three other characterlviii

[For additional ‘racist’-mentioned tweets please see Exhibit 14] [Analysis] Rooted in Racism (-) Ashton Kutcher’s brownface and over-the-top Middle Eastern accent struck audiences as a distasteful means to sell chips. Popchips and all parties involved in producing and pushing forth the original “World Wide Lovers” video failed to evaluate the ad’s potential to offend. An eagerness to establish brand recognition shadowed the racist, offensive undertone of the “World Wide Lovers” Raj character. Despite its intention to poke fun at the stereotypes on dating sites, the mainstream perception was that it was a politically incorrect mockery of the South Asian culture. Activists additionally voiced that Popchips broke the cardinal rule of racial humor: “If you’re going to make a joke about a race other than your own, be funny about it.”lix Historically, minority groups are underrepresented in Hollywood, and if they are represented, they’re usually portrayed as asexual characters providing either comic relief or the face of a criminal, rather than a complex character. Kutcher’s alter ego Indian caricature, Raj thus perpetuates this sensitive stereotype. Poor Branding (-) The ad received flack for being “racist” and “offensive,” so it puts into question if Popchips understands the demographic of its consumer and their values. Not to mention, Popchips is never mentioned in the ad. The only form of product placement is in the scene with Darl and his dog. Lack of Total Transparency (-) Popchips and Alison Brod PR delivered apologies, however Kutcher and ad agency Zambezi remained silent during the PR crisis. This makes any apology given on behalf of the commercial campaign less genuine. Alison Brod PR spokeswoman Lauren Bishop took responsibility for her agency’s involvement and investment in the Popchips campaign via an e-mail statement.

Sunday, May 6, 2012

Monday, May 7, 2012

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Kutcher’s only correlated communication during this timeframe was a tweet reading: “Looking for love?” with a link to the video. He did not respond to any angry tweets or direct messages on Twitter, nor did he give any formal apology.lx Hired-on advertising agency, Zambezi did not respond to requests to comment from msnbc.com. Zambezi currently still hosts the video ad (without the Raj character) on its website.lxi Timely Response (+) CEO Keith Belling responded and reacted to the viral criticisms with a public apology within less than 24 hours, a reflection of reputable crisis management. Clear Consistent Response (+) Both Popchips’ apology and the apology delivered by Alison Brod PR on behalf of Popchips were worded almost identically. Consistent, to-the-point messaging is an important strategy in resonating with key audiences and Popchips was able to deliver in this regards. [Final Outcome] Popchip’s video ad crisis created more short-term damage for the brand as opposed to long-term, as evident by the company’s consistent increase in sales since entering the market in 2007. In July 2012, just months after the crisis, Symphony IRI Group, a Chicago-based market research firm confidently projected Popchips’ sales topping $100 million by the end of the 2012 fiscal year.lxii Popchips affirmed a no-hard-feelings attitude with Ashton Kutcher after the adversely stirring campaign, saying, “It had no impact on the relationship between Ashton and the company,” further insisting, “He remains an integral part of our team.”lxiii Two months after the incident, the company announced its newest spokesmodel and latest addition to its lineup of celebrity ‘popstar’ endorsers, Katy Perry, further illustrating a brand seemingly unaffected by the Ashton Kutcher Popchips ‘racist’ ad. Popchips launched their first set of Katy Perry-endorsed ads on September 1, 2012 in North America and has since created a Katy Perry Popchips flavor – Katy’s Kettle Corn.lxiv

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EXHIBIT 1: ‘World Wide Lovers’ Campaign - Raj Character

Source: http://india.blogs.nytimes.com/2012/05/03/ad-with-ashton-kutcher-as-raj-

yanked-after-outcry/

EXHIBIT 2: ‘World Wide Lovers’ Billboard Advertisements

Boyle, Lin, Ling, Sineni JOUR 568: Popchips “Racist” Ad

Source: http://dailybillboard.blogspot.com/2012/06/ashton-kutcher-popchips-

billboards.html

Boyle, Lin, Ling, Sineni JOUR 568: Popchips “Racist” Ad

EXHIBIT 3: The Rise of the U.S. Nutrition Industry

EXHIBIT 4: Index of Snacking by NPD’s Healthy Eating Index

Source: http://www.npd.com/wps/portal/npd/us/news/press-releases/consumers-with-

healthier-eating-habits-snack-more-reports-npd/

Boyle, Lin, Ling, Sineni JOUR 568: Popchips “Racist” Ad

EXHIBIT 5: The Power of Celebrity Endorsements Enhanced by Social Media

Source: http://www.businessinsider.com/the-power-of-celebrity-endorsements-enhanced-

by-social-media-2011-3

Boyle, Lin, Ling, Sineni JOUR 568: Popchips “Racist” Ad

EXHIBIT 6: Social Media Visitor Growth (2004-2011)

Source: http://www.searchenginejournal.com/the-growth-of-social-media-an-

infographic/32788/

Boyle, Lin, Ling, Sineni JOUR 568: Popchips “Racist” Ad

EXHIBIT 7: Timeline of U.S. Internet Users Growth (2005-2010)

Source: http://www.searchenginejournal.com/the-growth-of-social-media-an-

infographic/32788/

Boyle, Lin, Ling, Sineni JOUR 568: Popchips “Racist” Ad

EXHIBIT 8: The Growth of Social Media via Facebook (2004-2011)

Source: http://www.searchenginejournal.com/the-growth-of-social-media-an-

infographic/32788/

Boyle, Lin, Ling, Sineni JOUR 568: Popchips “Racist” Ad

EXHIBIT 9: The Growth of Social Media within Companys’ Cultures (2007-2012)

Source: http://www.searchenginejournal.com/the-growth-of-social-media-an-

infographic/32788/

EXHIBIT 10: Coca-Cola ‘Mirage’ Commercial – Arab Character

Source: http://www.ibtimes.com/coke-ad-racist-arab-american-groups-slam-super-bowl-

commercial-video-1051250

Boyle, Lin, Ling, Sineni JOUR 568: Popchips “Racist” Ad

EXHIBIT 11: Das Racist

Source: http://www.ddotomen.com/2012/12/02/das-racist-breaks-up/

EXHIBIT 12: Anil Dash

Source: http://www.crunchbase.com/person/anil-dash

EXHIBIT 13: Comedian Hasan Minhaj

Source: http://www.youtube.com/watch?v=0I3KGj5dwSw

Boyle, Lin, Ling, Sineni JOUR 568: Popchips “Racist” Ad

EXHIBIT 14: Additional Tweets

- More Das Racist tweets:lxv

o “This is the NEW YORK TIMES seemingly A-OK with this shit. INDIANS ARE MONKEYS, EATING BANANAS ON THE MARGINS OF SOCIETY.”

o Hey, @stuartnyt, when you wrote this: mediadecoder.blogs.nytimes.com/2012/05/02/man…WHY DID YOU NOT MENTION THE OVER THE TOP RACIST BROWNFACE?

- More Anil Dash tweets: o “Hey, startups that are helping @aplusk get richer, can you tell him

that racist brownface ads aren’t cool? Thanks! 2.dashes.com/IUMYZM”lxvi

o “Hey @zambezi_la + @AlisonBrodPR can you talk about the meeting where brownface was suggested? I want to understand the creative process.”lxvii

- Other tweets:lxviii o @amaditalks: Newsflash to @popchips – never heard of you before.

Now I’ll see your name and think “racists” not “yummy snack” Fail! #BoycottPopChips

o @mslooola: @popchips proudly displaying @aplusk’s offensive characters on their Facebook page on.fb.me/ahYtKe #brownface

o @maxsilvestri: Which Popchips Ashton Kutcher character is your face? It’s so hard to pick (how I’m gonna drown myself fastest) bit.ly/bT31PQ

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i http://hollywoodlife.com/2012/05/03/ashton-kutcher-racist-video-popchips/ ii http://hollywoodlife.com/2012/05/03/ashton-kutcher-racist-video-popchips/ iii http://mediadecoder.blogs.nytimes.com/2012/05/03/popchips-pulls-ashton-kutcher-ad-over-charges-of-racism/ iv http://www.nbcnews.com/business/j-c-penney-popchips-ads-spark-controversy-751430 v http://mashable.com/2012/05/02/ashton-kutcher-pop-chips/ vi http://www.just-food.com/news/healthy-snacks-market-to-grow-by-fifth-by-2014-study_id112603.aspx vii http://www.reportlinker.com/p097840/World-Snack-Foods-Market-Brief.html viii http://www.npd.com/wps/portal/npd/us/news/press-releases/consumers-with-healthier-eating-habits-snack-more-reports-npd/ ix http://www.forbes.com/sites/meghancasserly/2013/01/24/popchips-the-next-1-billion-snack-food-or-just-full-of-hot-air/ x http://www.popchips.com/buzz/awards/ xi http://www.forbes.com/sites/meghancasserly/2013/01/24/popchips-the-next-1-billion-snack-food-or-just-full-of-hot-air/ xii http://www.forbes.com/sites/meghancasserly/2013/01/24/popchips-the-next-1-billion-snack-food-or-just-full-of-hot-air/ xiii http://www.bizjournals.com/sanfrancisco/blog/2012/08/katy-perry-popchips-ad-campaign.html xiv http://www.nytimes.com/2012/06/13/business/frito-lay-strategy-aims-for-top-and-bottom-of-market.html?pagewanted=all&_r=0 xv http://www.bizjournals.com/sanfrancisco/blog/2012/08/katy-perry-popchips-ad-campaign.html xvi http://www.sfgate.com/business/article/Popchips-doing-healthy-sales-expanding-to-Britain-3371741.php xvii http://www.sfgate.com/business/article/Popchips-doing-healthy-sales-expanding-to-Britain-3371741.php xviii http://search.proquest.com.libproxy.usc.edu/docview/868249127/13C1EAB2A8841E0F2F/1?accountid=14749 xix http://search.proquest.com.libproxy.usc.edu/docview/210914013/13C1D822F14127106CA/1?accountid=14749 xx Smart Money. “Do Celebrity Endorsements Work? http://www.smartmoney.com/spend/family-money/do-celebrity-endorsements-work-1300481444531/ xxi http://search.proquest.com.libproxy.usc.edu/docview/621650590/13C1EA7CE9167A4E40/1?accountid=14749 xxii Nightly Business Report. “Do Celebrity Endorsements Profit Shareholders?” http://www.nbr.com/transcripts/episode/do-celebrity-endorsements-profit-shareholders-feb-4-2013#.URhx3qU0WSo xxiii http://www.katalystnetwork.com/about xxiv http://latimesblogs.latimes.com/technology/2011/05/ashton-kutcher-aplus-twitter-app-ubermedia.html xxv http://twitaholic.com/

Boyle, Lin, Ling, Sineni JOUR 568: Popchips “Racist” Ad

xxvi https://twitter.com/aplusk xxvii http://techcrunch.com/2011/09/13/ashton-kutcher-good-investors-are-on-a-witch-hunt/ xxviii http://www.washingtonpost.com/blogs/innovations/post/ashton-kutcher-madonnas-manager-back-mysterious-amen-project/2011/07/22/gIQAmOJUTI_blog.html xxix http://www.crunchbase.com/financial-organization/a-grade-investments-3 xxx http://abcnews.go.com/Entertainment/demi-moore-ashton-kutcher-breakup/story?id=15448915 xxxi http://dashes.com/anil/2012/05/fixing-popchips.html xxxii http://www.huffingtonpost.com/2011/09/01/growth-social-media-infographic_n_945256.html xxxiii http://www.huffingtonpost.com/2011/09/01/growth-social-media-infographic_n_945256.html xxxiv http://maximizesocialmedia.com/social-media-management-the-importance-of-social-media-in-public-relations xxxv http://www.businessinsider.com/coke-defuses-racism-allegations-over-super-bowl-ad-showing-an-arab-pulling-a-camel-2013-2 xxxvi http://www.usatoday.com/story/money/business/2013/01/31/some-critics-say-coca-cola-super-bowl-ad-racist/1880157/ xxxvii http://www.adc.org/media/press-releases/2013/february-2013/adc-statement-on-coca-colas-super-bowl-ad/ xxxviii http://screen.yahoo.com/blogs/screen-blog/coca-cola-super-bowl-ad-courts-controversy-201017578.html xxxix http://jalopnik.com/5903135/acura-apologizes-for-light+skinned-language-used-on-casting-sheet xl http://theweek.com/article/index/239588/is-volkswagens-jamaica-themed-super-bowl-ad-racist xli http://dashes.com/anil/2012/05/fixing-popchips.html xlii http://www.zambezi-la.com/#/vitals xliii http://dashes.com/anil/2012/05/fixing-popchips.html xliv http://hollywoodlife.com/2012/05/03/ashton-kutcher-racist-video-popchips/ xlv http://mashable.com/2012/05/02/ashton-kutcher-pop-chips/ xlvi http://mediadecoder.blogs.nytimes.com/2012/05/03/popchips-pulls-ashton-kutcher-ad-over-charges-of-racism/ xlvii http://m.cbsnews.com/storysynopsis.rbml?&pageType=entertainment&catid=57426873&feed_id=6&videofeed=42&nb_splitPage=1 xlviii http://betabeat.com/2012/05/pop-chips-apologizes-for-brownface-ad-but-ashton-kutcher-is-still-silent-05032012/ xlix http://www.nbcnews.com/business/j-c-penney-popchips-ads-spark-controversy-751430 l http://mashable.com/2012/05/02/ashton-kutcher-pop-chips/ li http://mashable.com/2012/05/02/ashton-kutcher-pop-chips/ lii http://www.policymic.com/articles/7837/ashton-kutcher-racist-new-popchips-ad-offends-indians liii http://www.policymic.com/articles/7837/ashton-kutcher-racist-new-popchips-ad-offends-indians liv http://gothamist.com/2012/05/02/is_this_ashton_kutcher_for_pop_chip.php

Boyle, Lin, Ling, Sineni JOUR 568: Popchips “Racist” Ad

lv http://betabeat.com/2012/05/pop-chips-apologizes-for-brownface-ad-but-ashton-kutcher-is-still-silent-05032012/ lvi http://mediadecoder.blogs.nytimes.com/2012/05/03/popchips-pulls-ashton-kutcher-ad-over-charges-of-racism/ lvii http://www.huffingtonpost.com/2012/05/07/hasan-minhaj-slams-ashton-kutcher-pop-chips-ad-video_n_1497514.html lviii http://www.nbcnews.com/business/j-c-penney-popchips-ads-spark-controversy-751430 lix http://hollywoodlife.com/2012/05/03/ashton-kutcher-racist-video-popchips/ lx http://mashable.com/2012/05/02/ashton-kutcher-pop-chips/ lxi http://www.nbcnews.com/business/j-c-penney-popchips-ads-spark-controversy-751430 lxii http://www.cnbc.com/id/48396216/How_Startup_Popchips_Conquered_the_Snack_Market lxiii http://www.forbes.com/sites/meghancasserly/2013/01/24/popchips-the-next-1-billion-snack-food-or-just-full-of-hot-air/ lxiv http://www.hollywoodreporter.com/news/katy-perry-popchips-pics-ad-campaign-366612 lxv http://betabeat.com/2012/05/pop-chips-apologizes-for-brownface-ad-but-ashton-kutcher-is-still-silent-05032012/ lxvi http://betabeat.com/2012/05/pop-chips-apologizes-for-brownface-ad-but-ashton-kutcher-is-still-silent-05032012/ lxvii http://gothamist.com/2012/05/02/is_this_ashton_kutcher_for_pop_chip.php lxviii http://mashable.com/2012/05/02/ashton-kutcher-pop-chips/