Under the Influence with Terry O'Reilly - S6E09 - The Elephant In The Room: Humane Marketing vs. Profit

Episode Date: March 3, 2017

In this episode, we explore the controversial topic of Humane Marketing. From circuses to SeaWorld to fashion runways to fast food restaurants, each industry is dealing with mounting issues when it comes to the ethical treatment of animals, and their marketing is being affected as a result. This week, we'll look at how Ringling Brothers started using humane storytelling to draw customers, how Armani tipped the scales in the burgeoning "vegan clothing" world and the 2016 movie that may change the way animals are used in film forever. In this day and age, you can't ignore the elephant in the room. Hosted on Acast. See acast.com/privacy for more information.

Hi, it's Terry O'Reilly. As you may know, we've been producing a lot of bonus episodes while under the influences on hiatus. They're called the Beatleology Interviews, where I talk to people who knew the Beatles, work with them, love them, and the authors who write about them. Well, the Beatleology Interviews have become a hit, so we are spinning it out to be a standalone podcast series. You've already heard conversations with people like actors Mark Hamill, Malcolm McDowell, and Beatles confidant Astrid Kershaw. But coming up, I talk to May Pang, who dated John Lennon in the mid-70s. I talk to double fantasy guitarist Earl Slick, Apple Records creative director John Kosh. I'll be talking to Jan Hayworth,

who designed the Sgt. Pepper album cover. Very cool. And I'll talk to singer Dion, who is one of only five people still alive who were on the Sgt. Pepper cover. And two of those people were Beatles. The stories they tell are amazing. So thank you for making this series such a success. And please do me a favor, follow the Beatleology interviews on your podcast app. You don't even have to be a huge Beatles fan. You just have to love storytelling. Subscribe now and don't miss a single beat. new year new me season is here and honestly we're already over it enter felix the health care company helping canadians take a different approach to weight loss this year weight loss is more than just diet and exercise it can be about tackling genetics hormones metabolism felix

gets it they connect you with licensed healthcare practitioners online who'll create a personalized treatment plan that pairs your healthy lifestyle with a little help and a little extra support. Start your visit today at felix.ca. That's F-E-L-I-X.ca. Whether you're in your running era, Pilates era, or yoga era, dive into Peloton workouts that work with you. From meditating at your kid's game to mastering a strength program, they've got everything you need to keep knocking down your goals. No pressure to be who you're not. Just workouts and classes to strengthen who you are.

So no matter your era, make it your best with Peloton. Find your push. Find your power. Peloton. Visit Peloton. Find your power. Peloton. Visit Peloton at onepeloton.ca. From the Under the Influence digital box set, this episode is from Season 6, 2017. You're so king in it. You're loving it and it's now. Your teeth look whiter than noon, noon, noon.

You're not you when you're hungry. You're in good hands with all things. You're under the influence with Terry O'Reilly. And so, bowing vengeance for the trickery of the authorities, after he had peacefully surrendered, Jesse James set forth on the most amazing criminal career of all time. When the film Jesse James opened in 1939, it did good business at the box office. As a matter of fact, it was the fourth highest-grossing film of the year,

selling more tickets than Frank Capra's Mr. Smith Goes to Washington. The film starred Tyrone Power as Jesse James and Henry Fonda as his brother Frank. The movie has become infamous, not for its storyline or its actors or its box office receipts. Jesse James has gone down in history as the film

that resulted in the first guidelines for the protection of animals on movie sets. One of the scenes in the film involved Jesse James and his brother escaping a posse by riding their horses off a 70-foot cliff into a river. The horses were wearing blinkers with eyes painted on them and were put into chutes. When the camera was rolling, the horses, unable to see, were dumped out of the chutes and unknowingly ran over the cliff, dying on impact.

The scene was shot twice with two horses so that it appeared both brothers had rode over the cliff. Word got out about the horse deaths and it created outrage with the public. In reaction to the outcry, the Hayes office, which was charged with overseeing the moral guidelines in motion pictures,

worked with the American Humane Society to write the first ever guidelines for protecting animals during movie productions. From that point forward, the Humane Society was granted access to all sets to oversee the treatment of animals. In 2004, the Humane Society trademarked the phrase, No animals were harmed. So when you see the phrase, No animals were harmed,

during the production of this film in the end credits, it means the Humane Society has monitored the film set, overseen the treatment of the animals, and has viewed the completed film to make sure nothing was done to the animals that wasn't observed firsthand.

The Humane Society currently monitors over 70% of known animal action in television and motion picture productions. And it all started with Jesse James. monitors over 70% of known animal action in television and motion picture productions. And it all started with Jesse James. The world of marketing is coming face-to-face with its own ramifications when it comes to the humane treatment of animals. From circuses to SeaWorld to fashion runways to fast food restaurants, each industry is

dealing with mounting humane issues, and their marketing is being affected as a result. And in every case, it has created a jumbo-sized problem. You're under the influence. Advertising is like learning. A little is a dangerous thing. Those words were written by one of the most successful advertising copywriters of all time, P.T. Barnum. He believed in advertising a good product, and he believed in advertising a good product, and he believed in advertising a good product

often. Early in his career, Barnum was a side show curator, looking for oddities and freaks to add to a traveling show. He was actually middle-aged when he turned his natural showmanship toward a circus, which he called P.T. Barnum's Great Traveling Museum,

Menagerie, Caravan, and Hippodrome. He had a catchy slogan, too, The Greatest Show on Earth. But Barnum had a worthy competitor named James Anthony Bailey, who ran the Cooper and Bailey Circus. Bailey's circus had a baby elephant named Columbia, which Bailey advertised as the first elephant born in captivity.

That attraction drew big crowds. So big, in fact, that P.T. Barnum offered Bailey $100,000 for the baby elephant. Bailey declined the offer, but began advertising the fact Barnum had tried to buy his elephant. That negatively impacted Barnum's business. So, in order to survive, he was forced to merge with Bailey's circus. And thus was born the Barnum and Bailey Circus in 1881.

All thanks to an elephant. But Columbia wasn't the only famous elephant to work the Barnum and Bailey Circus. One year later, Barnum spotted an unusual elephant at the London Zoo. Its name was Jumbo, and it was the largest known elephant in captivity, standing 12 feet at the shoulder and weighing 6.5 tons. Barnum bought Jumbo for $10,000. Interesting to note that before Barnum transported Jumbo to the United States, there was an uproar from the British public.

Fearing the elephant would be mistreated, 100,000 schoolchildren and several prominent businessmen wrote to Queen Victoria to stop the sale. But it was too late. Jumbo was on his way to America. Jumbo became one of the biggest attractions in American history.

The elephant traveled in a private rail car, and it was the showstopper in the Barnum & Bailey Circus. As a matter of fact, Barnum & Bailey first featured Jumbo in a show at Madison Square Garden in New York and the circus earned the equivalent of $7.5 million in the first six weeks. But the mighty Jumbo's life would end here in Canada. Jumbo and a smaller elephant were being led to a train car in St. Thomas, Ontario,

when the trainer saw a speeding freight train approaching. He tried to get both elephants off the track in time. The engineer hit the brakes, Jumbo was hit and killed, and the smaller elephant survived. Barnum, ever the promoter, told the press that Jumbo had pushed the smaller elephant survived. Barnum, ever the promoter, told the press that Jumbo had pushed the smaller elephant to safety. Millions mourned the loss of the magnificent beast. A few years later, Barnum and Bailey merged with Ringling Brothers to form an even bigger circus.

And for the next 145 years, the main attraction in the center ring was always the elephants. So, it was interesting when Ringling recently announced they were retiring all their elephants for good. Ringling and other circuses had been battling animal rights activists for years. Ringling maintained they treated their elephants well. Activists insisted that just forcing elephants to perform in over 1,000 shows and travel to over 80 cities every year was cruel.

Then local government began enacting animal legislation and restrictions that made it impossible for circuses to bring elephants into certain towns. In the end, Ringling just couldn't fight City Hall. It posed a huge marketing challenge for Ringling. How do you lose your main attraction and still keep audiences coming? There isn't anything that'll ever replace elephants, but we wanted to create a whole new experience. It was all about challenging ourselves to reimagine Ringling Brothers. Without elephants, Ringling is in the midst of transforming to a circus that is much more high-tech, offering 3D video projection mapping, more human performers, and even ice surfaces.

Part of its marketing still includes elephants, however. Ringling has moved its 42 retired elephants to its Center for Elephant Conservation in Florida. It's a 200-acre facility where elephants will be bred to preserve the species. Also, pachyderms rarely ever get cancer, so scientists will be studying the elephants to see if their unique DNA holds the key to beating human cancer. It's an interesting marketing paradox. The circus has retired its performing elephants due to unrelenting external pressure, while at the same time using its retired elephant herd for goodwill. Ringling Brothers and Barnum & Bailey Circus, once hunted by animal activists,

is now using a humane storyline in its marketing. Ringling Brothers and Barnum & Bailey Circus, once hunted by animal activists, is now using a humane storyline in its marketing. SeaWorld is one of the biggest aquatic attractions in North America. At the center of its attractions is the Killer Whale Show. Over 400 million people had watched the orcas perform. Then came blackfish. All whales in captivity are all psychologically traumatized.

It's not just telecom. If you were in a bathtub for 25 years, don't you think you'd get a little psychotic? The industry has a vested interest in spinning these. That sells a lot of Shamu dolls. It sells a lot of tickets at the gate. There's no record of an orca doing any harm in the wild. The documentary explored the dramatic consequences of keeping killer whales in captivity. In particular, it told the story of one orca that was responsible for three human deaths, which the documentary maintained

was caused by extreme stress on the whale. The film was picked up by CNN and drew in over 21 million viewers in one single week, unheard of numbers for a documentary. The impact on SeaWorld was instant.

One year after the film's premiere, SeaWorld's stock was down 40%. Attendance was down by one million people. Southwest Airlines ended its 26-year relationship with SeaWorld. Mattel yanked its SeaWorld Barbie off the shelves. Big acts like Barenaked Ladies, Willie Nelson, Hart, and the Beach Boys all refused to perform at SeaWorld concerts. In April of 2015, SeaWorld launched a huge $10 million advertising and social media campaign to convince its customers that its practices were humane. It then discounted admission tickets.

Three months later, SeaWorld announced its quarterly net income was down 84% compared to the previous year. Regulators were circling. Investors kept punishing the stock. Even the SeaWorld CEO quietly sold $3 million worth of his stock. That CEO was eventually let go, and a new one named Joel Manby was brought in. Like the elephants at Ringling Brothers' Barnum & Bailey Circus, orcas were the main attraction at SeaWorld. It was the same paradox. The reason people had historically come to SeaWorld was the orcas. Now that same reason was keeping them away.

Manby looked at the future and saw the long-term arc of public opinion on the issue, especially with millennials who hold corporations to a higher standard on animal welfare. Research revealed the inevitable, that fighting to continue the orca shows was a losing battle. Then Manby made a huge decision to literally remove the single biggest thing his brand was associated with. He announced that all theatrical orca shows were to be phased out by 2019.

First, the new CEO overhauled his management team. His marketing strategy for communicating the change included an op-ed column in the LA Times, a press release, and extensive media interviews. He visited all the SeaWorld parks in a 48-hour period, talking to his staff and giving them a vision for the future. Then the San Diego park began experimenting with a more educational approach using the orcas, and it tested almost as high as the entertainment show. Then SeaWorld built a seemingly impossible bridge.

It partnered with longtime critic the Humane Society to create educational programs and become the largest marine rescue operation in North America with the goal of becoming the largest marine mammal rescue operation in the world and paired that commitment with an initial $50 million donation. Due to activist and public pressure, SeaWorld has had to abandon its centerpiece attraction and reimagine its entire presentation to the public. But with that seismic change, something happened. Investors bid the stock up immediately. Media critics hailed the game-changing decision.

Social media turned positive. Attendance bounced back. Pre-tax profit jump from 25 million to 65 million dollars like the circus It's a fascinating marketing challenge Many scoff at this kind of about face Maintaining that SeaWorld deserves no pat on the back for being forced to change its business practices But Humane Society CEO Wayne Pace, says motivation takes a back seat to actions. He says if a company is making a decision grounded in self-defense and strict bottom-line calculations, that's fine. SeaWorld is marketing this change under a SeaWorld Cares banner.

That's okay with Pacelli, too, because the commitment and the outcome for the whales is what matters in the end. The orcas will live out their natural lives at SeaWorld and the breeding program has ended.

What SeaWorld's educational program looks like will be the ultimate test of its intentions. It's the same kind of test the fashion industry is going through.

We'll be right back to our show. If you're looking for flexible workouts, Peloton's got you covered. Summer runs or playoff season meditations, whatever your vibe, Peloton has thousands of classes built to push you. We know how life goes. New father, new routines, new locations. What matters is that you have something there to adapt with you, whether you need a challenge or rest. And Peloton has everything you need, whenever you need it. Find your push. Find your power.

Peloton. Visit Peloton at onepeloton.ca. If you're enjoying this episode, why not dip into our archives, available wherever you download your pods. Go to terryoreilly.ca for a master episode list. As we've mentioned on our show many times before, luxury is a concept. Wearing fur was probably man's first clothing going back to prehistoric times. But between 3,000 and 300 BC,

wearing fur was reserved for the ruling classes. In Egypt, for example, leopard and lion skins were only worn by kings and high priests. In the 11th century in Western Europe, furs from ermine, mink, and chinchilla were reserved for royalty and nobility. By the 1300s, laws were introduced that regulated which social classes were allowed to wear which furs. That history has influenced our perception of fur as a luxury to this day. In the fashion world, fur has long been a staple. But in recent years, the use of fur has become a contentious issue. I'd Rather Go Naked Than Wear Fur was a powerful marketing campaign that started back in 1991,

featuring many high-profile celebrities. But the fashion industry has lagged behind many other industries when it comes to humane practices. Many hail designer Stella McCartney as being a visionary in the ethical fashion world. Her company is anti-fur and anti-leather

and does not use feathers. Back in 1994, PETA occupied the offices of Calvin Klein and demanded a meeting with the designer. One month later, Klein announced he would no longer use fur. With pressure mounting from activists, other high-profile designers

have agreed to stop using fur as well. Hugo Boss and Tommy Hilfiger have both announced an end to fur in their collections. Ralph Lauren removed fur from his collections in June of 2016 and sent PETA a signed statement pledging its intent to stop using fur. But it was Armani's announcement stating that no fur will be used in any of its garments starting with its fall-winter 2016 collection that signaled a landmark shift in attitude. Again, it's an interesting marketing challenge for designers. Calvin Klein said his company had decided to go fur-free two months before PETA invaded

his offices. Some were skeptical of that announcement, saying Klein just didn't want to appear to be buckling under to activists. Armani recently said in its marketing that it decided to go fur-free because huge technical advancements have allowed his company to create such great faux fur that there is no need for real fur. While the fur-free alliance applauded Armani's decision, many felt it was really the pressure exerted by activists

that persuaded Armani to change its policy. In Switzerland, fur manufacturers must put on the label the species of animal, where it was raised, and how it was killed. Many brands refused to sell their furs in Switzerland as a result. One interesting reality is that fur from fur farms is often relatively cheap, whereas faux fur is much more expensive to make, proving again that fur as a luxury is just a perception. I noticed that some designers are changing their verbiage in order to market their non-fur clothing.

The word faux has a cheap ring to it. So instead of faux fur, some are beginning to use the term vegan clothing, or pleather rather than leather, or the term haute couture, a mashup of the words vegan and haute couture. Still, 70% of the designers who showed their fall 2016 collections

featured some fur elements. More than 30 million adults over 18 in North America are turning to veganism or vegetarianism and say protecting animals is a big motivator in their lives. Like elephants and orcas, it will be a losing battle for designers in the end. It will just take time. Changing behavior is a process, not an event. Hey, let's all go to A&W.

Food's more fun at A&W. We'll have a mug of root beer Or maybe two or three Make the perfect size from the burger family Not long ago, not everybody was singing at A&W. The company was in serious trouble. It had to find a way to compete with McDonald's and Wendy's. As an A&W executive said at the time,

the burger chain was seen as not being very connected with its customers, being out of date, out of style, out of touch, outmoded, and not very relevant. And that was the good news. The bad news was that when A&W talked with their customers, they found their trust levels to be, quote, extraordinarily low. Customers said they simply no longer trusted food just because it tasted good. The takeaway from the research was this. We want to know what your values are, A&W.

So, the burger chain asked people what would make them happy. The feedback, says A&W, was a desire for a more natural product. So A&W decided to create a positioning for the company that was more natural. It began by only sourcing beef that was steroid and hormone-free. At A&W, all our beef is raised without any added hormones or steroids. And we're pretty excited about that. But let's find out what you think. How's the beef?

Good. Delicious. That beef is raised without any added hormones or steroids. Big checkmark in my books. Is that important to you? Absolutely. Why? Because I want to know what I'm eating.

A&W launched a Better Beef campaign in September of 2013. The campaign included a series of TV commercials, online display ads, videos, social media, and in-store signage. All of which gave people information about where the beef is sourced and how the animals are raised. Two things happened. Customers loved what they heard, and it created a backlash from Canadian beef ranchers. The beef industry is firm in its stance that antibiotics are not only safe, but beneficial, and that all animals go through a holding period so that antibiotics exit the animal's systems just before they are processed. But A&W found that no hormones, no steroids was remarkably important to its customers.

It also said it couldn't find enough antibiotic-free beef in Canada, so it purchased the beef instead in the U.S. and Australia. With the rancher backlash, A&W decided to move away from its Better Beef theme and move to a Raised Without platform, as in beef raised without antibiotics. The effect of the campaign

has been positive for A&W. Sales have jumped 8 to 10 percent in an industry where competitors have been experiencing negative 1 to plus 5 percent. Feedback from customers has been extremely favorable. A&W now features antibiotic-free chicken and pork, as well as eggs from hens fed a vegetarian diet. It's an interesting marketing strategy. While A&W claims to be the only national burger company to source antibiotic-free beef, you may notice that A&W makes no claims that beef without added hormones or steroids

is more healthy or nutritious. It maintains that this is not about comparison, it's about choice. Meanwhile, Earl's, a restaurant chain in Vancouver, suffered the opposite backlash when it announced it would begin sourcing certified humane beef from the U.S. instead of Canadian beef. Certified humane beef is defined as beef raised without the use of antibiotics or added hormones, and the animals are slaughtered according to specifications of animal welfare. Two things happened.

Alberta customers didn't like what they heard, and beef ranchers protested. Instead of sales going up like at A&W, sales dropped by 30%. That prompted this apology video from the president of Earls. We made a mistake. We should have worked with local ranchers to find product that met our criteria. And I assure you that we're going to do everything in our power to find local ranchers, work with them, and get Canadian beef back into Earl's and do it quickly. Carving out a humane platform initially backfired on Earl's, and it had to quickly tweak its marketing to save its market share.

Proving that, as with all our stories today, certified humane still generates a lot of certified conflict. When The Jungle Book was remade recently as a live-action film, it was full of animals. Yet not one of them was real. Remarkably, they were all computer-generated. It was a technological leap forward, and it began a discussion in Hollywood about whether or not animals will be required on sets

in the very near future. The implications are huge. Even though circuses use far fewer animals than, say, factory farming or animal testing, the symbolism of Ringling Brothers retiring their elephants was huge. Then, as we were about to record this episode, news came in that the Ringling Brothers circus was shutting down for good. When the elephants left the show, ticket sales took a steep decline. That's what makes those decisions

so difficult for corporations. Even though SeaWorld saw its revenues declining, it struggled with eliminating the biggest draw the company has ever had. It's a classic business trap. The more successful a company becomes,

the more resistant it is to change. Even if that change is the humane thing to do. Then there's the issue of motivation. Does a decision based solely in self-defense matter as long as the end result benefits animals? But values do matter, because they influence every decision, not just some. And even though it didn't work for Ringling, hopefully other companies will find ways to win hearts and dollars, not hearts or dollars, when they treat animals with respect.

That's why when it comes down to the choice of whether or not to do humane marketing, there's always an elephant in the room. When you're under the influence. I'm Terry O'Reilly. Under the Influence was recorded at Pirate Toronto. Series producer, Debbie O'Reilly. Sound engineer, Keith Ullman. Theme music by Ari Posner and Ian Lefevre. Research, Tanya Moore-Yusuf.

Follow us on Twitter and Instagram at Terry O'Influence. See you next week. This episode brought to you by Twinkles the Magic Elephant. Who knew retirement could be this much fun? Um, do you wear clothes when you listen to our show? If so, have we got a t-shirt for you? Go to terryoreilly.ca slash shop. New year, new me. Season is here and honestly, we're already over it. Enter Felix, the healthcare company helping Canadians

take a different approach to weight loss this year. Weight loss is more than just diet and exercise. It can be about tackling genetics, hormones, metabolism. Felix gets it. They connect you with licensed healthcare practitioners online who'll create a personalized treatment plan that pairs your healthy lifestyle with a little help and a little extra support. Start your visit today at felix.ca. That's F-E-L-I-X dot C-A. Whether you're in your running era, Pilates era, or yoga era, dive into Peloton workouts that work with you.

From meditating at your kid's game to mastering a strength program, they've got everything you need to keep knocking down your goals. No pressure to be who you're not. Just workouts and classes to strengthen who you are. So no matter your era, make it your best with Peloton. Find your push. Find your power. Peloton. Visit Peloton at onepeloton.ca.