Brand Failures

Brand Failures Brand Failures

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28.12.2014 Views

128 Brand failures limited only by how fast people can type.’ In other words, if people want to get their point across there is little companies can do to stop them. Understand that financial muscle isn’t as strong as it used to be. Following on from the previous point, the power of the Internet means that financial resources are no longer enough to suppress criticism. ‘One of the major strengths of pressure groups,’ says Peter Verhille, of the PR firm Entente International, ‘is their ability to exploit the instruments of the telecommunication revolution. The agile use of global tools such as the Internet reduces the advantage that corporate budgets once provided.’ Concentrate on public perception. In trying to set an example against the Greenpeace activists, McDonald’s helped to highlight the activists’ cause.

PR failures 129 42 Perrier’s benzene contamination No matter how careful a company is, bad things can happen to its brands. The part that is within the company’s control is how it decides to handle crises when they occur. The company most respected for its crisis management capabilities is Johnson & Johnson. When a problem emerges with a Johnson & Johnson brand, the company addresses it immediately, and never tries to cover it up. For instance, when the company learned that its Tylenol brand of painkillers had been tampered with in a US supermarket, the company acted straightaway. It ordered that the Tylenol product be taken off the shelves of every outlet in which it was sold, rather than just the specific supermarket where it had been tampered with. Once the recall was in effect, Johnson & Johnson announced that it would not put Tylenol painkillers back on the market until the product was more securely protected. This meant making sure Tylenol had tamper-proof packaging, and so the company designed individually packaged pills in foil bubbles. Of course, both the recall and the repackaging cost Johnson & Johnson a lot of money, but this short-term loss was more than compensated by the fact that Tylenol’s brand was preserved in the long term. Some experts have argued that the Tylenol brand eventually benefited from the crisis, because consumers were so satisfied and reassured by the company’s response. Not all brand crises are handled so effectively. In 1990 high levels of the toxic substance benzene were discovered in bottles of Perrier. The company

PR failures 129<br />

42 Perrier’s benzene<br />

contamination<br />

No matter how careful a company is, bad things can happen to its brands.<br />

The part that is within the company’s control is how it decides to handle crises<br />

when they occur.<br />

The company most respected for its crisis management capabilities is<br />

Johnson & Johnson. When a problem emerges with a Johnson & Johnson<br />

brand, the company addresses it immediately, and never tries to cover it up.<br />

For instance, when the company learned that its Tylenol brand of painkillers<br />

had been tampered with in a US supermarket, the company acted straightaway.<br />

It ordered that the Tylenol product be taken off the shelves of every<br />

outlet in which it was sold, rather than just the specific supermarket where<br />

it had been tampered with.<br />

Once the recall was in effect, Johnson & Johnson announced that it would<br />

not put Tylenol painkillers back on the market until the product was more<br />

securely protected. This meant making sure Tylenol had tamper-proof<br />

packaging, and so the company designed individually packaged pills in foil<br />

bubbles. Of course, both the recall and the repackaging cost Johnson &<br />

Johnson a lot of money, but this short-term loss was more than compensated<br />

by the fact that Tylenol’s brand was preserved in the long term. Some experts<br />

have argued that the Tylenol brand eventually benefited from the crisis,<br />

because consumers were so satisfied and reassured by the company’s response.<br />

Not all brand crises are handled so effectively. In 1990 high levels of the<br />

toxic substance benzene were discovered in bottles of Perrier. The company

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