Viral Video: What a Week for Hewlett Packard

Christmas time is here, and what better gift under the tree for the family than a shiny new computer?   Well, if you’re a representative of Hewlett-Packard (HP), this might not have been the most wonderful time of the year. 

I caught a story on CNN yesterday about the latest viral video.   In this case the video provides a problem for a company instead of the usual happy wedding dance or Susan Boyle’s latest musical number.

In the video, electronics store employees Wanda Zamen and Desi Cryer test out a webcam built into a HP computer.   One of the selling points of the product is facial recognition in which the camera will follow the users face.  In the video, Zamen and Cryer take turns in front of the camera.  The webcam follows Wanda Zamen (who is Caucasian) as she moves in front of the screen.   However, once Desi Cryer (who is African American) moves into the picture, the camera is still.   Facial recognition and motion ceases to work. 

With such an unusual product flaw, the pair decided to film the product’s shortcomings and post it on YouTube.  

Zamen and Cryer chose to make the shot film for amusement of friends and family.  In a statement on Mashable they remarked, “we thought the video was funny and decided to post it on You Tube. It was our intention to provide a good natured chuckle to our fellow man, and honestly we did not imagine that so many people would watch and react to the video.”

Wow.  That good natured chuckle has now been viewed by more than one million people.  The biggest problem?  The title of the video reflects one of the remarks in the film- “HP computers are racist”.

A sitation like this could have spelled disaster for HP, who did admit to CNN that e cameras may have issues with contrast recognition in certain lighting situations, which could prevent the product working for individuals with different skin tones.

 Instead of hiding its head in the sand, HP quickly reacted on its blog (The Next Bench), and posted a statement that “We would like to thank both of them for bringing clarity to the discussion via the (Mashable) statement they issued this week. I think it’s important for all of us to understand their intentions when they shot the video.  HP continues on by saying, “we invite you to continue to connect with us here on The Next Bench or on Twitter at @HP_PC. We assure you that we are listening.”

We’ve learned that HP’s product is far from perfect.   But by acting quickly and communicating to both Wanda and Desi, as well as the general blogosphere the company may have survived a public relations disaster.   As a result, HP may still have a happy holiday after all.

Diversity Consumers & New Media: outreach for a happy holiday

With holiday season upon us, we are all scurrying to finish last-minute wrapping and shipping, baking and decorating.   Retailers (both online and brick and mortar) are pulling out all the last ditch efforts to get people to spend, spend, spend.

 When it comes to consumer demographics, retailers are learning a message loud and clear:

Do not ignore minority consumers!

According to a Multicultural Report by research firm Diversity Affluence, African Americans possess $87.3 billion in purchasing power, Asian Americans possess $90.2 billion, and Hispanic Americans hold $104.5 billion.

So, how do businesses reach these very different audiences?

One way of communicating is definitely through new forms of media.  A 2009 report by Big Reports found that although all demographics named cell phones as the most common new media item being utilized, Hispanics, African Americans, and Asian respondents replied with higher usage than Caucasian respondents.

Minorities also have a higher regular usage rate, and are more receptive to use their mobile device to play videogames, take/upload picture phones and use instant messaging online.

In addition, minorities who are active online have been found to be more active on social media sites than Caucasian citizens.   

While in 2008, Facebook was secondary to MySpace, today, the roles have reversed, and most (but not all) minority groups have reported to prefer Facebook.  

The exception to preference in Facebook relates specifically to Hispanic-speaking Americans, who gravitate to social media sites with a stronger established Latin American presence.   Many prefer MySpace or Hi5 (strong in Latin America, allowing Hispanics in the U.S. a better opportunity connect with family members out of the country.

What to do? 

It is anticipated that usage of social networking will continue to grow among all ethnic groups.  Smart marketers will recognize that there is no “one size fits all” approach for a diverse consumer mix.   By creating a communications strategy based on where target consumers interact, marketers and consumers will have a happy holiday season for all.