Burning Laptops and Battery Recalls

Posted by Brian Glover at 1:21 pm on Friday, Sep. 8, 2006

On August 15, 2006, a media flurry began when Dell announced it was recalling 4.1 million laptop batteries manufactured by Sony, the largest safety recall in the history of the consumer electronics industry. Overheating batteries have been causing laptops to catch fire or explode. The following week Apple recalled 1.8 million laptop batteries, also made by Sony.

Seeing two of the industry’s most polar-opposite brands pulled into the same debacle made us wonder how the media treatment would play out. We looked at the tone and visibility of Dell and Apple’s battery woe media coverage and noticed Dell had far more visibility and negative tone than Apple.

Media Coverage by Tone
Dell and Apple Battery Problems, August 2006
Dell Apple Bettery Problems Newscycle

MediaSignalTM is calculated by adjusting the reach number for each article based on how prominently the subject (Dell/Apple) is mentioned and then adding together the adjusted reach numbers for each company’s total base of news articles. This chart is based on 6,986 online, print and broadcast news articles for Dell and 5,270 for Apple. Green corresponds to positive MediaSignal, blue/gray to neutral and red to negative.

One reason for this discrepancy in tone is that Dell was first to recall the Sony batteries and in that initial burst of coverage, Apple came forward to say that it was looking into the matter and examining its own Sony laptop batteries. Was it Dell taking a proactive lead on critical safety issues? Engadget and other blogs had been following the saga laptop by laptop, calling it to Dell’s attention. If you take a look at discussion of Dell and battery problems in the Blogosphere, the writing may have been on the wall for awhile.

Newscycle Report
Blog vs. Media Coverage for Dell Battery Problems
dell_apple-battery-recall_newscycle_090706.jpg

The chart shows the media coverage in volume (blue) over time compared to blog posts (gray) over time for discussion of Dell and battery problems.

InfoWorld reported that Dell and Sony knew about the problem as far back as 10 months ago. According to one Slashdot comment, Dell registered www.dellbatteryprogram.com on 11/10/2005, possibly anticipating a recall. One thing is certain though - with upwards of 50 millions blogs containing the personal experiences of millions of people, there’s no need to wait for customers to come to you. Public information on the Internet is often a better source of data for understanding your customer’s experience with your product.

Forrester Evaluates Brand Monitoring Vendors

Posted by Brian Glover at 6:26 pm on Tuesday, Aug. 15, 2006

Forrester analyst Peter Kim offered this update today on the Forrester Brand Monitoring Wave being published in September. Biz360 is one of a handful of vendors being evaluated in what will likely be the most in-depth review of our space to date. I can’t say much about this while the review is still in progress, but I’m confident the attention from Forrester will help marketers understand 1) the importance of monitoring brands across new and traditional media channels and 2) the differences between the service offerings available.

Setting the stage for this Forrester Wave, Peter recently published his views on Reinventing the Marketing Organization (July 13, 2006). One premise of his piece is that large media buys are becoming, and will continue to become, less effective for generating brand loyalty and revenue. He recommends starting to move those dollars toward technology investments that help marketers 1) understand customer preferences better and 2) create more meaningful experiences for customers.

Forrester Reinventing Mktg Chart

Note the movement of money bags in the chart above from large media buys –> customer-centric technologies, including brand monitoring. Who knew corporate vaults still had Scrooge McDuck-style money bags?

Source of graphic: Forrester’s Reinventing the Marketing Organization by Peter Kim, published on July 13, 2006. To purchase the full report, click here.

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