Speed Dial: 60-Second Marketing Insight Newsletter

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Crisis Marketing, Part II Rebuilding Brands With Tiger, J&J, BP, GM & Coke By Marie Elwood, Brand Marketing Consultant  May 11, 2010 - Speed Dial Issue 30

Today's headlines are dominated by a parade of disasters & scandals, and while PR firms can guide corporations, governments, & individuals through immediate crises, restoring them to pre-catastrophe status is a long-term marketing challenge. Five steps can make a difference:

1)  Be Proactive. Short-term actions directly impact long-range results. These days, "if it bleeds, it leads"- -  the 24-hour news media circles a story insatiably until it finds a way in for the kill, and evasion is futile.

The Tiger Woods scandal highlights how little time exists to diffuse a crisis. Only five days passed before the golfer met with police, but each day was met with increased speculation. Proactivity is paramount.

2)  Over-Deliver an Answer. When the public perceives a problem, it can't move on until it finds a satisfactory resolution. Unless the entity under fire offers a strong solution, the public reaches resolution by dismissing & diminishing the offender- - often irrevocably.
 
Johnson & Johnson’s 1982 Tylenol recall is the gold standard for proactive problem-solving. After seven Chicago consumers were murdered by cyanide-laced capsules, J&J yanked all Tylenol products on the market- -  31 million bottles- - at a cost of $100 million. J&J's swift, drastic actions soothed public fervor by offering a clear solution. Its reward? Regaining nearly all of its market share within one year.

3)  Dialogue Honestly. Candid communication backed by meaningful action restores public trust. Last week’s Speed Dial exposed GM's loan-payback commercial. In contrast, BP is stepping forward to accept financial & environmental responsibility for the Gulf Coast oil catastrophe with its vow to pay "all necessary & appropriate costs."  If BP delivers on its promise, it will weather this crisis. 

4)  Monitor Progress. Successful crisis management isn't a "quick fix"; it takes time to rebuild trust. Objective attitudinal research can identify areas where progress is being made & where additional work remains.

5)  Learn, Adapt, & Grow. The best marketers in the world don't just survive a crisis in the short-term- - they thrive in the long-term by using catastrophe as a catalyst to connect more deeply with their audiences.

Coca-Cola used the four steps we've seen on the New Coke disaster:
1) "We have heard you!", Chairman Goizueta quickly announced.
2) Coke terminated its massive new product launch within 77 days.
3) A blitz of new ads communicated candidly with consumers.
4) Shaken by its original research, Coke pored over new feedback.
 
But Coca-Cola not only survived New Coke, it thrived. The company now knows that its value isn't found just in caramel-colored beverages, but in connecting consumers to powerful memories & emotions. As a pioneer in the field of emotional branding, Coke has leveraged this learning for 25 years, from "can't beat the feeling" & "just for the fun of it" to "life tastes good", and now, "open happiness."  

Most entities muddle through crises like Toyota’s American division, the European airlines post-volcano, and the Vatican are doing. But as Coca-Cola, J&J, & perhaps BP now illustrate, the road through troubled times begins with a desire & dedication to build bridges rather than barriers.

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