Brand Failures

It can be expected that brands will have at least one crisis in their lifespan. If
a brand is well known its crisis can also be expected to make the headlines.
In most cases though, the crisis does not kill the brand. If the company
behind the brand acts responsibly and sensitively, the crisis situation can
normally be defused. However, if the company fails to do this, the public will
be unlikely to forgive. According to one US survey 95 per cent of respondents
were more offended by a company lying about a crisis than about the crisis
itself. If the company presents the right information, the consumer will
respect it for its honesty.
Pepsi-Cola, faced with a syringe discovered in a bottle, ensured that its
entire sales force had accurate information to communicate to customers.
The press team also relayed this information to the media. As a result, they
prevented a bad situation becoming even worse.
Other companies, however, are not so good at handling trouble. They
believe the best way to deal with a crisis is to deny its existence. ‘Crisis, what
crisis’ is their general response. And indeed, this position of denial is exactly
what the public have come to expect. Therefore, those companies that are
willing to provide the whole truth and nothing but, score points for their
open approach.
After all, the key to successful brand management is being able to provide
consumers with what they want. Normally, this means providing a good
service or product. At a time of crisis however, it means providing the truth.
Although no company should welcome a crisis, the situation presents an
opportunity as well as a threat. This is the time to either establish or destroy
trust. If a company tells the truth about a negative incident, it is more likely
to be believed later on down the line when it is trying to tell consumers about
how fantastic its brand is. Public relations is about exactly that; relating with
the public, not ignoring them.
In 1999, Dunkin Donuts’ parent company, Allied Domecq, started to
grow concerned about a consumer opinion Web site when the company