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CaseStudy1PopChips.docxMKT 111: Principles of Marketing
Paul J. Hiryak
Spring 2019 Semester
Homework Assignment # 1: “Popchips Pulls Ashton Kutcher Ad Over Charges of Racism” case
Deadline: Thursday, March 14, 2019.
Guidelines: No email or late submissions accepted. Bring typewritten report to class. Staple multiple pages. Include Name and Course/Section on report. See detailed instructions below.
Source: Elliott, Stuart (The New York Times, May 3, 2012). “Popchips Pulls Ashton Kutcher Ad Over Charges of Racism.” Retrieved from http://mediadecoder.blogs.nytimes.com/2012/05/03/popchips-pulls-ashton-kutcher-ad-over-charges-of-racism/?_r=0
Background Information for the case:
Kutcher, who owns a minority stake in the privately held Popchips and, at the time of this incident, was its “President of Pop Culture,” was instrumental in developing the $1.5 million ad campaign with the help of Zambezi, a Venice, Calif.-based youth-oriented advertising agency. He was further assisted by Popchips CEO Keith Belling. Kutcher’s previous ad contribution for Popchips, featured online in 2011, portrayed racial stereotypes of Blacks and Latinos.
This is not the first or last time Popchips has generated controversy with its advertising. Several years later, the snack brand incurred criticism for its New York City introduction of healthy tortilla chips.
https://www.huffingtonpost.com/2012/05/02/ashton-kutcher-brownface-dating-ad-
pop-chips_n_1472161.html
https://blogs.wsj.com/cmo/2014/09/22/popchips-cmo-interview/
Assignment:
1. Read the NYT article concerning Popchips ad and the linked articles provided above for reference.
2. Using at least two additional sources (i.e., check the brand’s website, www.popchips.com or additional news articles regarding the company), examine the issue of cultural insensitivity in advertising and marketing. Be sure to identify these additional sources in your report.
3. Based upon your research, answer the following questions in a typed report of approximately two (2) pages. Include your name, Course/Section and date. Check your work for correct spelling, punctuation and grammar. STAPLE pages together. Bring your completed assignment to class.
Questions:
1. Do you agree with the Popchips’ response to the Raj promotion criticism? Explain why the organization’s handling of the issue is adequate [or inadequate]. What else would you do as the marketing manager to respond to the controversy?
2. Identify some the challenges that confront today’s marketing managers when developing promotion across different markets (i.e., regions, countries)? What are some important cultural forces that influence these strategies? For example, organizations will receive criticism for messages that some individuals/groups consider “offensive” including, sexism and racism.
3. Make two specific recommendations on how can managers better understand and respond appropriately to diversity in the marketplace?
Popchips Pulls Ashton Kutcher Ad Over Charges of Racism
by Stuart Elliott , New York Times
May 3, 2012 11:52 am
Ashton Kutcher as an Indian character named Raj in an ad for Popchips that has been pulled.
12:16 p.m. | Updated
Part of an advertising campaign for Popchips snacks featuring Ashton Kutcher as four kooky characters has been withdrawn, not long after the ads began appearing, amid complaints that Mr. Kutcher’s performance as an Indian named Raj was racist.
In video clips that kicked off the campaign on Wednesday morning, Mr. Kutcher’s performance as Raj included appearing in brown face and using a sing-song accent. There were also to be billboards featuring Mr. Kutcher as Raj.
Indian-Americans started complaining about the ads soon after news reports about the campaign appeared. There were complaints posted on Wednesday afternoon to the Popchips Facebook page as well as on the brand’s Twitter feed. Popchips initially issued a statement through its public relations agency, Alison Brod Public Relations, declaring the campaign was “never intended to stereotype or offend anyone” and adding, “We hope people can enjoy this in the spirit it was intended.”
But soon after the statement was released, the video featuring Mr. Kutcher as Raj had been pulled from the Popchips YouTube channel and the character was removed from the company’s Facebook page.
That was followed by an apology “to anyone we offended” from Keith Belling, chief executive of Popchips, on the company’s blog.
The campaign, with a budget of $1.5 million, was developed by Popchips, Mr. Kutcher and an ad agency named Zambesi; Alison Brod Public Relations promoted the campaign. In addition to Raj, Mr. Kutcher portrays a fashionista named Darl, a hippie named Nigel and a sweet biker named Swordfish. The campaign is proceeding with those three characters after the removal of the Raj ads. The billboards with the Raj character will not go up on Monday, as planned, but the billboards with the three other characters will.
The swift response to the complaints is another example of how social media like Facebook and Twitter are transforming the way companies respond to public outcry. There have been many such instances in recent months of marketers abruptly discontinuing campaigns or taking down ads shortly after complaints began to circulate in social media.
© 2014 The New York Times Company
