PAUL FRANK AND NATIVE AMERICAN STEREOTYPES: A CASE OF MISAPPROPRIATION Stefanie Beninger and June N.P. Francis wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2015, Richard Ivey School of Business Foundation Version: 2015-05-12
It was September 2012, and the executive team at Paul Frank Industries (PFI) had just finished taking immediate action in response to a backlash over its annual marketing event, Fashions Night Out. PFI prided itself on celebrating diversity, but the companys recent activities had caused offence among the members of the Native American community. PFIs brand had succeeded in the past because of the creative freedom it allowed its young and dynamic staff, but this particular choice had obviously been a huge misstep, and the executive team needed to sit down and examine what had gone wrong. PFIs annual Fashions Night Out extravaganza was a public relations and marketing event for the fashion industry that had started in the midst of the 2009 recession in New York. Fashions Night Out events had sprung up in several cities, including Los Angeles, and they were intended to highlight fashion designers and fashion brands, as well as raise money for charity by providing a fun night out. In PFIs words, it was a star-studded shopping event held in major cities around the world. This event usually attracted pop- culture icons, and it showcased a variety of brands amid its activities, including Paul Frank. What should PFI do to avoid future issues, while still maintaining the edgy, creative atmosphere and approach that had made its brand so successful in the past? BACKGROUND Paul Frank Industries Based in California, Paul Frank Industries began as a privately held company that designed, licensed and sold apparel and accessories. The company was founded in 1995 by Paul Frank Sunich, John Oswald and Ryan Heuser, who initially set up shop in a garage and started making wallets and handbags as gifts for their friends. The accessories became a local sensation, and the company gradually grew into a global brand with more than 30 franchised and company-owned stores worldwide. The Paul Frank brand was recognizable to many because of its iconic logo and mascot, Julius the Monkey. Julius was a twist on the old-school sock monkey,1 and he was joined by a stable of about 150 other characters, including a giraffe and different versions of Julius.
This document is authorized for use only by Hillary Houston in COM-227-R1902 Public Relations 21EW1 at Southern New Hampshire University, 2021.
Page 2 9B14A063 PFI was formally incorporated 1998, but Paul Frank Sunich, one of the founders, stopped his association with the firm in 2005. In 2010, PFI was acquired by Saban Brands, a company that acquired, developed and managed a world-class portfolio of consumer brands and that held significant investments in media, entertainment and communications. It also managed other well-known, children-focused brands such as Power Rangers, Digimon, and Popples. Saban Brands licensed the Paul Frank brand to other manufacturing companies. Although the Paul Frank brand was the hottest line going2 in the 1990s, Saban Brands faced a challenge in maintaining the brands popularity and ensuring that its iconic status would endure.3 PFI targeted its products primarily at the youth market, from toddlers to teens, and described its product lines as offbeat and unique.4 The Paul Frank product line included a variety of fashion accessories, books, bedding, bikes, eyewear, helmets, furniture, mobile games, and audio products. The average age of PFIs employees was just 27 years old,5 and the majority of the companys designs came from a relatively small creative team of fewer than 20 people.6 When creating its designs, the company noted that Paul Frank always strives to celebrate diversity and is inspired by many rich cultures from around the world.7 Among other inspirations, the company cited the infamous artist Andy Warhol.8 PFI expanded from its U.S. home market into Europe (Denmark, Germany and Slovakia), Asia (China, Thailand and Malaysia), and South American (Venezuela, Colombia and Panama) through its flagship, company-owned stores and through retailers like Target and Macys. Paul Frank products were also sold through online distributors like Amazon and USOutdoor.com, all of which increased the firms global reach. In addition to its business endeavours, PFI donated to a variety of charities involving children, arts and entertainment, including the Childrens Hospital of Los Angeles. With a self-declared unusual, almost anti-marketing approach to business,9 the company followed a co- branding approach until 2006. This approach generated at least $2 million in annual revenue through partnering and collaborating with companies such as Barbie, John Deere, Oscar Meyer, and the Elvis Presley Estate.10 PFI generally avoided traditional advertising and did not pay for product placement but, rather, focused on publicity in media such as through cre
