Brand Failures

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130 <strong>Brand</strong> failures had little choice but to recall the product. Within a week the company withdrew 160 million bottles worldwide. However, when the media first found out about the problem Perrier did not know what to do. For a brand whose whole identity was based around the idea of ‘natural purity’, the benzene incident was clearly a disaster. Although the recall had been announced straightaway, Perrier’s information vacuum started to provoke even more consumer anxiety than there would have been otherwise. Furthermore, although the company set up a 24-hour hotline in the UK, Perrier refused to see it as a global issue. This was a mistake. As Alex Brummer commentated in the Guardian newspaper: ‘all politics may be local, but brands are global.’ There was a lack of a coherent and consistent response from Perrier subsidiaries, and no lead or co-ordination from the French parent company Source Perrier. Mixed messages were being given, with contradictory and conflicting statements emerging from different divisions of the company. In some cases, the media was even given incorrect information. Perrier therefore made a bad situation worse and failed to tackle the global implications of the crisis. Of course, the Perrier brand is still fizzing away. Indeed, when Perrier returned to the shelves it was accompanied by the successful ‘Eau! Perrier’ advertising campaign. However, Groupe Perrier was taken over by Nestlé in 1992, and the brand has still not been able to regain its pre-1990 volume share. Lessons from Perrier Don’t hide the truth. ‘Managing news in crisis, not just wars, is not about trying to suppress bad news – that will lose your credibility,’ says Martin Langford, managing director of Burson-Marsteller’s corporate and public affairs practice. ‘Consumers and journalists are far too smart. You’ve got to be dead straight with the media because your employees will be if you’re not.’ Don’t breach the consumer’s trust. A brand has been defined as the capitalized value of the trust between a consumer and a company. Breach that trust, and the brand is in trouble. Accept that global brands need coherent communications policies. A global brand such as Perrier cannot ignore the fact that problems in the United States will be able to impact on sales in Europe. Such a brand needs a
PR failures 131 common purpose throughout the organization, so the response to a crisis can be co-ordinated. Recognize that some brands’ crises are worse than others. The benzene contamination was the worst possible crisis to afflict a brand associated with natural purity.
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Brand Failures
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Brand Failures Matt Haig
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Contents 1. Introduction 1 Why bran
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Contents vii 6. Culture failures 15
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4 Brand failures didn’t matter. A
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6 Brand failures market for which i
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8 Brand failures without trace are
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Some brand failures have proved so
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14 Brand failures competitor. As it
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16 Brand failures In other words, C
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18 Brand failures Lessons from New
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20 Brand failures among employees t
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22 Brand failures years previously
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24 Brand failures Mustang was the s
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26 Brand failures 3 Sony Betamax Ac
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28 Brand failures and retailers, wh
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30 Brand failures 4 McDonald’s Ar
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32 Brand failures Lessons from Arch
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34 Brand failures
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36 Brand failures up with the idea
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38 Brand failures Factor two: cool
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40 Brand failures 6 Sony’s Godzil
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42 Brand failures the possible exce
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44 Brand failures 7 Persil Power On
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46 Brand failures But the advantage
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48 Brand failures easily, Pepsi rem
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50 Brand failures 9 Earring Magic K
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52 Brand failures Lesson from Earri
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54 Brand failures on it,’ wrote B
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56 Brand failures Clearly if Corfam
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58 Brand failures been officially r
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60 Brand failures ‘There are risk
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62 Brand failures 13 Oranjolt The d
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64 Brand failures 14 La Femme Where
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66 Brand failures patronizing. This
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16 Clairol’s ‘Touch of Yoghurt
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18 Maxwell House ready-to-drink cof
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20 Thirsty Cat! and Thirsty Dog! Bo
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Barron’s Dictionary of Business T
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Extension failures 77 21 Harley Dav
Page 87 and 88: Extension failures 79 making up the
Page 89 and 90: Extension failures 81 Keep it tigh
Page 91 and 92: 23 Crest Stretching a brand to its
Page 93 and 94: Extension failures 85 ‘No toothpa
Page 95 and 96: Extension failures 87 24 Heinz All
Page 97 and 98: Extension failures 89 Lessons from
Page 99 and 100: Extension failures 91 the no-nonsen
Page 101 and 102: Extension failures 93 Have a core
Page 103 and 104: Extension failures 95 In the mid-19
Page 105 and 106: Extension failures 97 every brand -
Page 107 and 108: Extension failures 99 sales rose to
Page 109 and 110: Extension failures 101 However, amo
Page 111 and 112: Extension failures 103 29 Chiquita
Page 113 and 114: Extension failures 105 A brand is
Page 115 and 116: 31 Ben-Gay Aspirin Ben-Gay is anoth
Page 117 and 118: 33 Smith and Wesson mountain bikes
Page 119 and 120: 35 Lynx barbershop Lever Fabergé,
Page 121 and 122: 37 LifeSavers Soda Invented in 1912
Page 123: 39 Frito-Lay Lemonade Frito-Lay is
Page 127 and 128: It can be expected that brands will
Page 129 and 130: PR failures 121 40 Exxon Don’t sa
Page 131 and 132: PR failures 123 including the clean
Page 133 and 134: PR failures 125 environmentalists,
Page 135 and 136: PR failures 127 the public. [. . .]
Page 137: PR failures 129 42 Perrier’s benz
Page 141 and 142: PR failures 133 Lesson from Pan Am
Page 143 and 144: PR failures 135 In addition, Snow B
Page 145 and 146: PR failures 137 45 Rely tampons Pro
Page 147 and 148: PR failures 139 Lessons from Rely
Page 149 and 150: PR failures 141 As Gerber saw it, a
Page 151 and 152: PR failures 143 regarding youth mar
Page 153 and 154: PR failures 145 buying about 40 per
Page 155 and 156: PR failures 147 Be sensitive. By s
Page 157: PR failures 149 Remember that comp
Page 161: Brands operate on a global scale. B
Page 164 and 165: 156 Brand failures of the Bombay St
Page 166 and 167: 158 Brand failures Coca-Cola. The
Page 168 and 169: 160 Brand failures Lessons from Kel
Page 170 and 171: 162 Brand failures Translation trou
Page 172 and 173: 53 Schweppes Tonic Water in Italy I
Page 174 and 175: 55 Electrolux in the United States
Page 176 and 177: 57 Coors in Spain Coors beer had eq
Page 178 and 179: 59 Clairol’s Mist Stick in German
Page 180 and 181: 61 American Airlines in Mexico When
Page 182 and 183: 63 Kentucky Fried Chicken in Hong K
Page 184 and 185: 176 Brand failures ment. Pretty soo
Page 186 and 187: 178 Brand failures 65 Quaker Oats
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180 Brand failures Lessons from Sna
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The people behind a brand are its m
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People failures 185 66 Enron Failin
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People failures 187 67 Arthur Ander
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People failures 189 68 Ratner’s W
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People failures 191 met comedians w
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People failures 193 was out, Planet
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People failures 195 is wrong to lea
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People failures 197 had lost the su
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People failures 199 tortilla brand
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Brands, like people, have a fear of
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Rebranding failures 205 73 Consigni
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Rebranding failures 207 of the name
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Rebranding failures 209 74 Tommy Hi
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Rebranding failures 211 style that
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Rebranding failures 213 in the Repu
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Rebranding failures 215 former secr
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Rebranding failures 217 Lessons fro
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Rebranding failures 219 neighbours
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79 British Airways When British Air
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CHAPTER 9 Internet and new technolo
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226 Brand failures now believe bran
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81 Pets.com In the mid-1990s, when
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Internet and new technology failure
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All brands will eventually fail. Th
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262 Brand failures The $600-million
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264 Brand failures Lessons from Old
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266 Brand failures interview. ‘An
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268 Brand failures 91 Ovaltine When
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270 Brand failures 92 Kodak Failing
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272 Brand failures tive strategy if
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274 Brand failures 93 Polaroid Live
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276 Brand failures launch of its SX
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278 Brand failures ‘was that they
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280 Brand failures 94 Rover A dog o
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282 Brand failures 95 Moulinex Goin
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284 Brand failures 96 Nova magazine
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286 Brand failures The cycle of lau
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288 Brand failures As with most bra
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290 Brand failures For the Levi’s
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292 Brand failures to the stores in
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294 Brand failures One argument was
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296 Brand failures market is 18-24
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298 Brand failures 100 Yardley cosm
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300 References
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302 References Malmsten, E, Portang
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304 Index candour see honesty Capit
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306 Index ideas failures 71, 82 hea
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308 Index and extension 93 New Coke
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310 Index Taiwan 163 tampons 137-39
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