The end of 2010 marks exactly 8 full years of the history of 5W Public Relations, one which today sees us as one of the 15 largest PR firms in the US. It remains amazing to me, and much like seeing a child grow up in many ways.

In fact, at the end of this year, I reread what I wrote during the holiday season of 2009, and I feel much the same way.

Once again I can say, verbatim as last year: “As someone who thrives when busy, the last 10 days of December are trying. Many are very complacent during the holiday season and it bothers me tremendously. Rightfully, clients still demand work product, and bills still need to be paid, so we as a PR agency continue to put our best foot forward even during the slower months. We continually realize that urgency is the key to our success and we are far from complacent. We are hungry for it and want to win. During this time period, I make an extra effort to do the little things: go to the gym every single day, thank our clients for their devotion, and our employees for their hard work.”

In retrospect, I appreciate every day and thank our great staff, and our clients.2010 for our firm was a good year – better financially than 2009, and one in which we did great work, had very minimal staff turnover, hired some great PR superstars and won some great clients.

A few highlights and times we relish:

• All great things begin with the amazing 5WPR team.  Every day they do hard work and are the highlight of everything for all members of our PR firm.
• On a personal note, I was thrilled to be selected as a Semi-Finalist for the 2010 Ernst & Young Entrepreneur of the Year for the New York region.
• Our client appeared on Oprah’s 25th annual Favorite Things episode. We placed Philip Stein Watches on the Oprah Show (the 3^rd time in 3 years). It was even more joyous because they are such a great client – Good smart people whom we really appreciate and value and in whose success we are vested.
• Our client Apra International was presented with the prestigious 2010 WWD Beauty Biz Award for “Best Executed Launch Strategy” in the Mass Fragrance category. We created and executed the launch strategy, marketing and PR efforts.
• We moved into prestigious new headquarters at 888 7^th Avenue in midtown
• Important pro-bono work for a number of charities we are involved with and care about
• Intellectually stimulating crisis work… and of course countless celebrity PR tales… which we could tell but we won’t.

 2010 was another profitable year for this PR firm, and one where we are proud of the results and work we did. Was a much better year than 2009, and one where we say once again thank you to all for the great work, for our clients, to the media, and we say onward and upward.

Ronn Torossian

5WPR

We lost a client this week…and I was happy.  We were hired by the International headquarters of a major company and market leader, but the local Headquarters here openly did not want us hired.  To say that the International and local offices were not on the same page would be a very kind understatement.  We would get a call from headquarters to embark on a certain strategy, and then the US office would tell us a different story – no, we absolutely do not want this done. And then we would throw up our hands and say, repeatedly and regularly: “Who is the client – International headquarters or New York?” Both would say: “I Am.”

Needless to say, they wouldn’t say this to each other. Our staff was regularly frustrated, and I couldn’t give them a clear answer.  Headquarters was fair and good to us, so we essentially did as they told us and they forced the US office to follow along.  It was never friendly interaction and, amazingly, the US Director of Marketing for months on end refused to meet with us and essentially grunted through the conference calls we had.

Meanwhile, both offices told us that the campaigns we had thought up and implemented had raised their business significantly; that ROI from PR & marketing was up significantly; and that all metrics we set at the start of the campaign were exceeded.  Every time someone tried to trip us up, we exceeded expectations.

That said, it has been a few days since we spoke to headquarters, and I admittedly did not really focus when a staff member forwarded me a Google alert: the pre 8 AM notice said the International CMO was rumored to have accepted a new position.  Sure enough, before the end of the day we received the termination notice from the grunting Director of Marketing. 

Here’s to better clients…but I wasn’t unhappy at losing this client.

Ronn Torossian

5WPR

As difficult as it is to keep one’s chin up during these trying times, this week’s article from AdAge sheds light on a major issue that makes today’s environment even harder for small and mid-sized agencies: late payments. One of the hardest parts of running a business and being an entrepreneur is extending credit to companies and managing cash flow. To this day, in our seventh year of business, when I look at my accounts receivable and see seven figures outstanding, it’s simply terrifying. It’s one of the biggest differences for me between owning a business and having a job.

Anyone who owns a business has been stiffed. The question isn’t “if”; it’s “how much and how often.” As Adage says, asking agencies to wait “as long as 120 days to be reimbursed” is “putting a painful burden on some shops.” There’s not much one can do, other than understand that cash is king, and good clients pay their bills. (And bad ones seem to complain only when you ask where the past-due money is.) Agencies are being squeezed now more than ever before, and there has never been a harder time to own a profitable PR agency.

I believe many agencies will continue to merge, as they simply can’t keep their doors open.  We are in discussions with quite a few PR firms who are having trouble managing manage cash flow (or the lack thereof), which inspired me this past weekend to reread an old friend’s book, “How To Ruin A Business Without Really Trying.”   While revisiting it, I remembered a few seemingly basic cardinal rules that seem simple but shouldn’t be violated, especially during these unique times: Don’t spend what you don’t have (cash is king, not credit), sweat the small things, don’t hide, and don’t be afraid.

In this economy, and always, confidence is absolutely key, particularly for entrepreneurs. People have to keep themselves in the right state of mind, as hard as it is, be able to move quickly, have urgency, and focus on positives.

URGENCY, URGENCY, URGENCY.  All must be done, and must be done quickly. Keep it in mind.

Ronn Torossian
5WPR

Why does bad service seem to appear synonymous with “uber-cool”, particularly when it comes to hotels? What is the correlation?

I have just returned from Los Angeles, where both of the regular hotels I love were booked; and so I was forced to stay at a new hotel. At a friend’s recommendation (Knowing I love Bond Street sushi), I stayed at the new Thompson hotel.

Upon arrival, I had to wait 20 minutes to check-in. Over the course of a few days, I had to switch rooms 2x because the air conditioning didn’t work in two different rooms, they couldn’t give me reservations at the restaurant because they were booked (The concept of actually being able to eat at the hotel you stay at must have seemed foreign to them), and all around I felt the staff was “too cool” to be bothered helping guests.

This is why I like to stay away from the uber-cool in business for 5WPR as well – They seem to be too cool to actually want to work.

Ronn Torossian
5WPR

IN MARKETING AND PUBLIC RELATIONS YOU MUST KNOW THY MARKET…

KNOW THY MARKET… AND PICK YOUR LOVED ONES UP AT THE AIRPORT

Last week in LA, while surveying the pre-BET Awards dinner, I witnessed a who’s who of both Fortune 1000 brands and leading celebrities. Only fifteen years ago what would have been a fringe event has evolved into an event where leading entertainers are hob-knobbing with CEO’s. The brands who sponsored the event saw it for something beyond the typical marriage of brands and celebrities, and recognized the value of this targeted niche, albeit very major, market. The following evening, at the BET Awards, I watched Public Enemy end the night in front thousands… an audience comprised of well-dressed, well-educated, primarily African Americans proudly singing “I am black and I am proud.” Cheers to BET, a brand that not only recognized their target market, they identified with their niche audience… and their audience rightfully loved it. Success story all around.

It is evident, and I fully believe, in today’s business environment plagued by constant distraction; it is imperative that brands and the agencies who represent them must be cognizant of niche markets they can win. The creation of specialized and highly focused stories must develop into an event in order to gain maximum success. The brands that win in today’s world are risk-takers, from a PR firm pitching the media a story to a piece of direct mail… it’s the core of a brand’s being. Niche marketing is where it’s at, and if a brand can achieve market integration, that niche market will result in a financial windfall.

Some brands and categories over the last few years where these examples have thrived: * In the uber-competitive media market, amidst huge criticism, Fox News has emerged over the last 5 years primarily, essentially from nowhere simply because they recognized the right leaning, Republican thinker didn’t have an outlet… hence, Fox News’ growth. They recognized and identified their niche market and ran with it.
* Nike continues to thrive and grow because they grow with their consumer – Their ads continually reflect the changing face of American consumers, and their brand has succeeded in being seen as more than just an athletic brand but in fact is now a lifestyle brand, to the point where Nike’s are often worn at many of the world’s leading nightclubs and entertainment venues where trends are set and created. This “niche” is a lifestyle, whether a young athlete or an elder walker.

* As a 32 year old, I grew up (HS, college and the like) shopping at The GAP. It’s not a surprise at all that their brand has failed miserably and will continue to go down, because they haven’t decided what market to target – Is it today’s college consumer as it was years ago, is it today’s Sex in the City consumer? Is it jeans, T-Shirts or dress jackets? They don’t market to any niche whatsoever. They don’t get it.

As the owner of a5WPR PR agency, I believe that we must, in order to continually succeed, always focus both the clients and my business towards the identification and impact of a wide and diverse group of niche markets. Bottom line, it is a different world, the playing field has changed, and the brands who are cleaning- up have already recognized the target. They saw the changes for what they were or are, and it doesn’t matter if it was along racial lines, dress style at work, technology or otherwise… the fact is, they are opening their eyes and seeing the field.

My Rabbi once told a story. He was on the phone with his father, who was arriving in NYC the next day. The conversation regarded his desire to make the world a better place, how he loved his congregants, and how much he loved his family. He then told his dad that day due to obligations, he couldn’t pick him up at the airport. His dad’s reply, “Don’t love me so much, pick me up at the airport.”Lesson… Know thy niche (i.e. pick up your Dad)…. And how the key to understanding a niche is just knowledge and involvement.

Lessons for brands? Don’t be afraid to target niche markets, racially, size wise, age wise, technology geeks – Whatever it is don’t try and be all things to all people. Niche and specialization is the key to success for agencies and brands in 2007 and beyond.

Ronn Torossian
5WPR