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Tuesday, June 26, 2007

Spinning in the age of access

This is follow-up to my post of yesterday, when I wrote about the ways transparency can impact the way court cases are handled.

An article this morning on the Forbes website, here, details how cereal manufacturers in the 1990s thought they could convince the public of anything -- including that sugary cereals like Corn Pops and Fruit Loops were healthy for children. Last week, they decided to stop marketing these same cereals to children.

What happened? The world has changed, that's what:
Critics suspicious of the action were quick to point out that it only came 16 months after two small children's advocacy groups threatened them with a lawsuit. But why would a company with nearly infinite legal resources choose to voluntarily revamp their entire product line and marketing strategy and agree to kill off some of their most identifiable corporate brands (R.I.P. Toucan Sam) rather than using their legal muscle to fight off a nuisance suit?
Because Kellogg's seems now to realize an essential truth of 21st-century business: In a connected world, companies who value and create stronger connections with their customers will win. In today's cost-benefit analysis of fighting something in court vs. damaging your relationship with your consumers, relationships win.

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