Journal of Case Studies www.sfcrjcs.org May 2015, Vol. 33, No. 1, p. 136-140 ISSN 2162-3171 Pipe Dreams Kathia T. Martinez Acuna, Queens University of Charlotte Bradley W. Brooks, Queens University of Charlotte Steven M. Cox, Queens University of Charlotte Disclaimer: This case was prepared by the authors and is intended to be used as a basis for class discussion. The views presented here are those of the authors based on their professional judgment and do not necessarily reflect the views of the Society for Case Research. The names of individuals and the firm are disguised to preserve anonymity. Copyright © 2015 by the Society for Case Research and the authors. No part of this work may be reproduced or used in any form or by any means without the written permission of the Society for Case Research. “As an advertising creative, I would like to congratulate you on achieving the visceral reaction we all hope for. I would not like to congratulate you on making me cry.” Executives with the Hyundai Motor Company had sought to promote their dream of zero carbon dioxide (CO2) emissions. They were caught off-guard, however, by consumers’ distressed reactions to the company’s latest promotional campaign for the automobile that achieved their objective, the Tucson iX35. The video promotion, which was released in the UK in April 2013, depicted a man taping a hose from a Hyundai iX35’s exhaust pipe into the cabin of the vehicle to commit suicide. His suicide attempt, however, failed because the vehicle’s emissions were 100% water. The comments above were part of a statement the company had received from a consumer named Holly. Holly sent her message to Hyundai after seeing the video that left her feeling empty and sick. She was not alone in expressing such negative emotions. Hyundai executives now had to determine how to respond. Hyundai Motor Corporation Hyundai (rhymes with “Sunday”) had exported its first independently-made vehicle, the Pony, in 1976. By the end of 2012, the Hyundai Motor Company, manufacturer of Hyundai and Kia brand vehicles, was ranked as the world’s fifth largest automaker. In 2012, the Korean company had earned consolidated net profits of $8.4 billion (9.05 trillion Korean won) – a 12% increase over 2011 (France-Presse, 2013). Hyundai’s success could be attributed in part to its reputation for improving its vehicle quality, but also in part to its reputation for being a good corporate citizen. The automaker had made significant investments into corporate social responsibility (CSR) activities around the world. Hyundai had created programs such as“Hope on Wheels” that raised money to help children with cancer; “Being a good neighbor,” a program that helped build strong neighbors with community partners; and “Bright Ideas,” which helped US students with scholarships, internships and Page 136 Journal of Case Studies www.sfcrjcs.org May 2015, Vol. 33, No. 1, p. 136-140 ISSN 2162-3171 professional development resources and educational summits to become successful citizens and professionals (Hyundai Corporate Social Responsibility, 2014). Hyundai’s investment into the development of eco-friendly models was demonstrated through The Blue Drive Strategy. The strategy focused on improving the fuel economy of mass production models while serving as another step towards Hyundai’s dream of zero CO2 emissions (Hyundai Worldwide Innovation, 2014). These innovations were occurring as Hyundai was attempting to enhance both the Hyundai and the Kia brand images. Korean cars had long been perceived as being cheap, poorly designed, and poorly built. Hyundai had been attempting to improve its quality image with the introduction of its luxury-based (and $60,000-priced) Hyundai Equus, which had sold approximately 2,000 units in 2012 (Lopez, 2013). Additionally, Kia had future plans for releasing its K900 brand to compete directly with Mercedes and BMW sedans. The K900 was intended to be priced at over $70,000 (Lopez, 2013). In addition to conveying higher quality, Hyundai’s promotional approach had also prioritized its desire to connect with consumers through emotions. One recent promotion, for example, had shown a small boy antagonized by a group of bullies who excluded him from playing football. With help from his mom and the family’s Hyundai Santa Fe, the boy put together his own football team to confront the bullies. The promotion was directly attributed to large spikes in consumer interest in the vehicle (Mercuro, 2013; Valdes-Dapena, 2013). Innocean Advertising Agency Those emotions, however, seemed at risk after customers viewed Hyundai’s latest ad (which was dubbed “Pipe Job”). The ad had been created by its advertising and communication company, Innocean. Innocean’s core vision was to become an ocean of innovation and its goal was to promote a customer-driven culture by providing the best quality and service. On its website, Innocean, also a Korean company, proclaimed that it sought to inspire global citizenship by actively understanding nations and their ethnic qualities (Innocean, 2011). Hyundai stated that Innocean had released the ad without its consent. The two companies, however, were now working together and both expressed regret and responsibility for creating an ad that appeared to make light of suicide (Herper, 2013). Suicide: Public Health Concern Suicide, which customers associated with the main message of the ad, had been a particularly distressing public health concern in the UK and elsewhere. In 2011, for example, there were over 6,000 suicides in the UK – approximately 11.1 per 100,000 in population (BBC, 2013). By contrast, approximately 1900 people died from motor vehicle accidents in the UK in 2011 (The Guardian, 2012). Similarly, in the US, over 39,000 suicides had occurred in 2011 – approximately 12.3 per 100,000 in population (AFSP, 2014) – and approximately 32,000 people had died in motor vehicle accidents (Huffington Post, 2012). Page 137 Journal of Case Studies www.sfcrjcs.org May 2015, Vol. 33, No. 1, p. 136-140 ISSN 2162-3171 Mass media could significantly affect suicide rates. Dr. John Grohol, founder and CEO of Psych Central, explained that news reports or other depictions of suicide in the media can increase suicide attempts. This relationship is referred to as suicide contagion (Grohol, 2013). Reactions to Hyundai Promotion Negative reactions from the ad began appearing quickly on social media and websites. Public comments referred to the insensitivity of the creators; the dark humor towards clinical depression implemented in the video; and the negative impact-outcome that it caused in its viewers. One website quickly dubbed the ad as the “Worst Car Ad in History” and the “Most Tasteless Car Ad of All Time” (Okulski, 2013). Holly’s letter represented one of the many passionate responses (Brockwell, 2013): “When your ad started to play, and I saw the beautifully-shot scenes of taped-up car windows with exhaust feeding in, I began to shake. I shook so hard that I had to put down my drink before I spilt it. And then I started to cry. I remembered looking out of the window to see the police and ambulance, wondering what was happening. I remember mom sitting me down to explain that daddy had gone to sleep and would not be waking up. Surprisingly, when I reached the conclusion of your video, where we see that the man has in fact not died thanks to Hyundai’s clean emissions, I did not stop crying. I did not suddenly feel that my tears were justified by your amusing message. I just felt empty and sick.” Her letter ended as follows: “My dad never drove a Hyundai. Thanks to you, neither will I.” Other consumers expressed similar outrage. Bob, another angry viewer posted (LeDrew, 2013): “I, too, am a survivor of suicide in my family. And I can’t tell you how angry and upset I am that someone would not only conceive of this ad, but go through all the necessary steps to COMPLETE it. I’m not going to go through all the reasons why this is so offensive and hurtful. You’re all smart enough to know why already. So some advice: whatever your work is within the world of communications and PR and social media, ask yourself a question: Is what I’m doing or saying decent? If the answer’s no, STOP.” Dr. Grohol further described this video as thoughtless and mean-spirited. He, too, shared a story of his best friend who had committed suicide (Grohol, 2013). With increasing numbers of consumers expressing outrage, Hyundai executives faced a critical decision. If you were a Hyundai executive what would you do now? References AFSP (2014). Facts and figures, American Foundation for Suicide Prevention (AFSP), Retrived July 30, 2014 from: https://www.afsp.org/understanding-suicide/facts-and-figures Page 138 Journal of Case Studies www.sfcrjcs.org May 2015, Vol. 33, No. 1, p. 136-140 ISSN 2162-3171 BBC (2013, January 22). UK suicide rate rises 'significantly' in 2011, British Broadcasting Company (BBC), Retrieved July 30, 2014 from: http://www.bbc.com/news/uk-21141815 Brockwell, H. (2013, April 25). An open letter to Innocean and Hyundai, Retrieved August 30, 2013 from: http://copybot.wordpress.com/2013/04/25/an-open-letter-to-innocean-andhyundai/ France-Presse, A. (2013, January 24). Hyundai Motor saw 12% profit rise for 2012, IndustryWeek, Retrieved May 1, 2014 from: http://www.industryweek.com/companiesamp-executives/hyundai-motor-saw-12-profit-rise-2012 Grohol, J. M. (2013). Hyundai thinks suicide should help sell cars: The pipe job ad. Psych Central, Retrieved September 8, 2013 from: http://psychcentral.com/blog/archives/2013/04/25/hyundai-thinks-suicide-should-helpsell-cars-the-pipe-job-ad/ Herper, M. (2013, April 25). Update: Hyundai apologizes for car ad depicting attempted suicide, Forbes, Retrived September 8, 2013 from: http://www.forbes.com/sites/matthewherper/2013/04/25/a-hyundai-car-ad-depictssuicide-it-is-so-wrong-i-cant-embed-it-in-this-post/ Huffington Post (2012, May 7). Traffic deaths in 2011 fell to record low in US, Huffington Post, Retrieved July 30, 2014 from: http://www.huffingtonpost.com/2012/05/08/us-2011traffic-deaths-record-low_n_1498344.html Hyundai Corporate Social Responsibility (2014). Hyundai corporate social responsibility website, CSR News, Retrieved May 1, 2014 from: http://www.hyundaicsr.com/. Hyundai Worldwide Innovation (2014). Hyundai worldwide innovation website, Blue Drive, Retrieved May 1, 2014 from http://worldwide.hyundai.com/WW/Innovation/Eco/BlueDrive/index.html Innocean Worldwide (2011). Retrieved September 8, 2013, from http://innocean.com/en/company/aboutus/visionVisionSlogan.aspx#2 LeDrew, B. (2013, April 25). Is your work decent? Ask yourself, Retrieved August 28, 2013 from: http://www.translucid.ca/site/2013/04/25/is-your-work-decent-ask-yourself/ Lopez, J. A. (2013, November 25). Hyundai and Kia successfully refining US market brand image, Retrieved May 1, 2014 from: http://thekoreancarblog.com/2013/11/25/hyundaikia-successfully-refining-us-market-brand-image/ Mercuro, Matt (2013, February 4). Super Bowl commercials 2013: Hyundai traffic increases by 700 percent, wins Super Bowl commercial showdown against Audi, Jeep, Retrieved January 6, 2015 from: http://www.autoworldnews.com/articles/3093/20130204/super Page 139 Journal of Case Studies www.sfcrjcs.org May 2015, Vol. 33, No. 1, p. 136-140 ISSN 2162-3171 bowl-commercials-2013-hyundai-traffic-increases-700-percent-wins-super-bowlcommercial-showdown-against-audi-jeep-photos-video.htm Okulsji, Travis (2013, April 25). This is the worst car ad in history, Jalopnik, Retrived July 30, 2014 from: http://jalopnik.com/this-is-the-worst-car-ad-in-history-480853172 The Gaurdian (2012, September 28). Road deaths rise in Great Britian: Get the data, The Gaurdian, Retrieved July 30, 2014 from: http://www.theguardian.com/news/datablog/2012/sep/28/road-deaths-great-britain-data Valdes-Dapena, Peter (2013, February 4). Hyundai wins Super Bowl auto ad wars, CNNMoney, Retreived January 6, 2015 from: http://money.cnn.com/2013/02/04/autos/super-bowlauto-ads/index.html Page 140
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