Topics Held the 36th Public Relations Seminar. From Strategic PR to Narrative Company - New PR and the New Normal

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The Public Relations Committee of the Pharmaceutical Manufacturers Association of Japan (PMAJ) held the "36th Public Relations Seminar" on October 20, 2021 at Nomura Conference Plaza Nihonbashi (Chuo-ku, Tokyo). This year's speaker was Tetsuya Honda, President of Honda Office and a PR strategist selected by "PRWeek" magazine as one of the "300 Most Influential PR Professionals in the World.

The seminar

Mr. Tetsuya Honda, President of Honda Office, has written "Narrative Company: The Power of 'Narratives' to Transform Corporations" for Corona Disaster, predicting that the global pandemic starting in 2020 will bring about major changes in the way companies interact with society and the way information is disseminated. In the book, Mr. Honda explains what "narrative" is, which is becoming a trend in the activities of global companies such as Amazon and Patagonia, and how companies can relate to society in a new way. Mr. Honda spoke on the theme of "From Strategic PR to Narrative" to those involved in public relations and PR at member companies. With the environment surrounding the pharmaceutical industry undergoing major changes, the seminar provided an opportunity to rethink the industry's raison d'etre in society and broaden one's perspective on how PR should be conducted to be understood by the public. The following is a transcript of Mr. Honda's speech.

Background to the Growing Importance of PR

First, I would like to reconsider "what is PR?" As you know, PR stands for "public relations," but in Japan it has been replaced by media exposure or advertising conversion, and it has often been thought that maximizing media exposure is the role of PR. However, the original role of PR is, as the term suggests, to "build relationships and manage their maintenance.

In recent years, this role of PR has become increasingly important. There are three key words that can be used to explain this: multi-stakeholder, perception, and narrative. I would like to talk about each of them.

Mr. Tetsuya Honda, President, Honda Office

(1) Multi-stakeholder

The pharmaceutical industry, in particular, is an industry with a wide range of stakeholders, including physicians, patients, and patient groups. As the world becomes increasingly complex, stakeholders are diversifying, regardless of industry. In the past, it was common to deal with stakeholders by grouping them together, as in investor relations (IR) and customer relations (CR), etc. However, stakeholders now interact with each other, and it has become very difficult to deal with them individually. In addition, the development of social networking services has accelerated this trend. This has increased the importance of PR to maximize business opportunities, minimize the risk of firestorms, and build good relationships with diverse stakeholders.

(2) Perception

Awareness is how something is perceived and refers to objective perceptions. Unlike awareness, which cannot be controlled by the communicator, awareness is acquired through media, social networking sites, experts, and other stakeholders. In other words, PR is important in gaining favorable perceptions for the sender.

(3) Narrative

I call it "narrative co-creation structure. With information overload and the emergence of a new generation with new values, such as the Millennials*1 , it is becoming increasingly important that the information being transmitted has a "narrative. In other words, it is becoming more and more important to connect with society and people, to tell a story that is a shared experience, and to gain their empathy, rather than the traditional one-way storytelling. The foundation for this is "narrative.

1

A generation born between the mid-1980s and 2003. They are digital natives, and are attracting attention as a generation that is transforming the way society works.

Empathy" of society gathered at AJINOMOTO

In my book "Strategic PR" published 16 years ago, I proposed a PR method that does not involve one-way information transmission, but rather creates public opinion (i.e., creates an atmosphere) based on "themes of interest" that link products to current trends in the world. I would like to cite the example of AJINOMOTO, a major frozen food company. It started with a tweet from a woman on Twitter in 2020: "I served frozen gyoza for dinner and my husband said I was cutting corners. AJINOMOTO's official Twitter account responded to this tweet, saying, "Using frozen gyoza is not cutting corners, but cutting corners," and "I hope you will use your free time in a meaningful way, such as facing your children. This message was supported by society and eventually received over 440,000 "Likes! The post received a strong response, with more than 440,000 "likes" in the end. Not only that, the company also released a video showing the process of carefully making frozen dumplings at its factory. The video was viewed more than 900,000 times in one month. In addition, the company issued a press release, officially announcing its stance: "We thought it would be meaningful to question society's belief in handmade products, so we released the video.

The result was not only an increase in sales, but also a positive response and a lot of sympathy (40% increase in positive tweets) for the use of frozen foods, which led to a change in the existing negative perception of frozen foods. This case study focused on the product convenience of "delicious dumplings that only need to be baked in a pan" and the world's concern that "frozen food is a hassle/gender issue," and by "cutting out the hassle" (of the interest theme), it was possible to "make good use of frozen food and have meaningful time This is a good example of a brand that was able to enhance its brand by appealing to the interests and benefits of consumers who are interested in "making good use of frozen foods and having meaningful time.

From Strategic PR to the Age of Narrative

I would like to talk about "narrative," which has become a common word in the PR world recently. The original meaning of the word "narrative" is "story. Narrative literature through recitation. In PR, it is a story that companies and consumers weave together, a "narrative co-creation structure.

We are often asked about the difference between a story and a narrative, and let's look at it from three angles. First, in terms of "performers," stories are "companies and brands," whereas narratives are different in that they involve stakeholders such as consumers. In terms of "time," a story is a narrative that begins and ends in the present, while a narrative is always in the present and includes the future. Furthermore, in terms of "stage," while the former is company-driven, such as a company's industry, the latter is society as a whole, and the basic idea is what kind of story can be spun together with the people who live there. This leads to perspective, which is also related to the significance of the company's existence in society.

I call companies that take this approach to PR "narrative companies. In other words, they are companies that create narratives (co-creation structure), conduct corporate activities within that structure, and increase value. In 2017, outdoor brand Patagonia announced on its official website that it would sue then-President Donald Trump for announcing a drastic reduction in the size of the National Monument Conservation Area in Utah, USA. The company's per-purpose is "We are in business to save our planet, our home." In other words, Patagonia acted in accordance with its own per-pass and took action to stop the President from stealing the nature preserve. As a result, the company was endorsed by non-user consumers, environmental groups, and even other companies in the industry. Narrative companies like this will continue to proliferate around the world, increasing the value of companies and brands.

Five Steps to Narrative Practice

There are five steps to achieving a narrative ( Figure 1 ). First, a "Purpose" is established at the starting point, which can also be described as "What are your thoughts? Next, we form a Perception at the "Purpose," which is to clarify how we want to change perceptions in society. The next step is to create a narrative script in "Draw," develop multi-engagement in "Co-create," and measure the effect in "Measure. The narrative script is the "script" for intentionally creating and maintaining the narrative, and is also an internal document for building consensus among stakeholders.

Figure 1: Five Steps to Narrative Practice

Lotte aims to become an ESG company with the involvement of local governments

As an example of creating narrative scripts and developing projects, Lotte's "100 years with your teeth. The company has been selling xylitol for more than 20 years, and the brand is well known by 90% of consumers. The company had been selling xylitol for more than 20 years and had brand awareness of approximately 90%, but less than 30% of people understood the specific functions and characteristics of xylitol. Filling this gap was a challenge for the brand. Therefore, the company decided to change the existing perception "A manufacturer of gums and candies. Xylitol is good for your teeth somehow" to "An ESG company that contributes to the 100-year life era. Xylitol is necessary for dental health.

In doing so, the company focused on Finland, the home country of the xylitol brand, because in addition to being an advanced country in terms of SDGs, the government, dentists, and educational institutions had recommended xylitol consumption, which had reduced tooth decay. Lotte launched the "100 years with xylitol project" involving local governments, dentists, and citizens. The goal was to increase the percentage of people who use xylitol in their daily lives from 33% to 50% by 2028.

First, in developing the project, the company created a narrative script. There were three key points that were considered in the process. First, the "big picture social perspective and problem statement" set the agenda for working with the local government to achieve a cavity-free society. Second, "Authenticity or Brand Advantage," which is why the company is doing what it is doing. In addition, the "Future Stakeholder Experience" helps us to understand what will happen to multi-stakeholders in the future. While Lotte's efforts have only just begun, I believe that more and more companies in Japan will develop corporate activities based on narrative scripts in this way (e.g., by incorporating them into ESG management).

Becoming a Narrative Company that Walks with Society

I have talked about how narratives are a concept that evolved from strategic PR and is becoming increasingly important in an increasingly complex society. Engaging in narratives means reevaluating the significance of your company's existence in society and rethinking what kind of future image you want to portray in society and with which stakeholders ( Figure 2 ). Companies that engage in this kind of narrative will be increasingly supported by society and consumers, and their corporate value will increase. In particular, Japanese companies tend to have operations that are segmented by department, such as marketing, product development, sales, public relations, etc. In the future, each department will need to create a larger narrative as a company and work seamlessly together, rather than working separately. In this context, the PR department will probably play an increasingly important role.

Figure 2 Narrative Company Checklist