It’s said that the true character of a brand is revealed by how it responds when problems arise. Many Indians will remember the famous story of how Cadbury responded when it discovered its Dairy Milk chocolate bars had been contaminated with insects in 2003. Consumers were angry that their beloved brand had failed to live up to their expectations, and sales plummeted.
Cadbury was initially in denial, but soon implemented a robust and well-thought-out response plan that included modernizing its packaging, strengthening quality controls, rebuilding trust with tens of thousands of retailers, and finally, a powerful advertising campaign featuring Amitabh Bachchan to inform consumers of the specific steps the brand had taken and to restore trust. All of this required significant investment, but the brand did not hesitate to do so. Within six months, Cadbury’s sales were back to pre-crisis levels, and more importantly, the brand had regained trust.
New books, Managing brand violations; The book starts with this very case study of Cadbury in India and lays out eight fundamental principles for what brands should do when faced with such a crisis. Written by two academics, Shailendra Pratap Jain and Shailini Sarin Jain, the book offers a sound and practical roadmap for weathering the sudden and unexpected storms that can hit brands that have broken, or are perceived to have broken, the rules.
What is brand transgression? The book defines it as “violating and harming the fundamental rules and norms of the relationship” a brand has with its consumers and the community at large. It’s a broad definition that could include anything from accidentally putting a harmful ingredient in food to an engineering error that causes a cell phone to explode, mistreating a consumer in a retail store, advertising that is considered culturally offensive, inappropriate behavior by a brand’s executives, or even deliberately manipulating vehicle emissions standards.
The authors note that brand breaches are commonplace and occur globally, and even the world’s most respected and beloved brands may face such crises from time to time. Most breaches are caused by a brand’s negligence or omission, while some are caused by mere perceptions that have no basis in fact. Either way, brands must respond to prevent damage to their reputations and consumer franchises.
The book then outlines a framework of eight principles to guide a brand’s response to a breach. The first principle is perhaps the most important, emphasising that first and foremost, a brand should do the right thing. When a breach has caused harm, it is crucial to take the right steps to provide closure and reassurance to affected consumers. It is essential to put the customer first and waste no time in initiating an appropriate set of concrete corrective actions.
To illustrate this principle, the authors take a well-known case study: the crisis faced by the painkiller brand Tylenol in the 1980s, when Tylenol capsules were discovered to contain the toxic substance cyanide.The series of well-coordinated and timely measures taken by Johnson & Johnson (the owners of Tylenol) to combat this crisis are legendary today.
The seven other principles of breach management presented in the book include: being accountable, acting with lightning speed, communicating transparently, choosing principles over profits, treating each life with dignity, setting the tone with leadership, and building brand credibility. For each of these principles, the book highlights the why and how, and brings each principle to life through two real-life case studies.
These case studies range from some of the world’s most well-known brands, including Nokia, Maggi, Starbucks, Ben & Jerry’s, Taj Hotels, Patagonia, and more. As the authors point out, each of these case studies has many moving parts and doesn’t just address one principle. However, the book uses each story to highlight one specific principle and provides step-by-step instructions on how that particular principle is put into practice.
I was impressed by the thorough research that went into each of the 25 case studies included in this book, each of which contains important lessons for managers and CEOs who are ultimately the custodians of their own brands.
This book offers deep insight into an important topic that deserves more attention than ever before. Managing brand violations is not as glamorous as launching a new product or creating a compelling marketing campaign, but it is crucial to protecting your brand’s reputation, the foundation on which consumer trust is built.
In fact, if a breach is managed really well, it can enhance a brand’s reputation in the eyes of all stakeholders. The book makes this point very well, but also highlights how years of investment in brand building can be lost in just a few days if a crisis is handled poorly or incorrectly.
The book is well-structured and easy to read. Each chapter focuses on one particular principle, and in each chapter the authors provide a good balance of conceptual foundations of the principle and case studies. The text sometimes ventures into difficult territory, and I would have liked to see simpler language. I would also have been interested in how brands can proactively prepare to deal with potential violations, including acts by motivated or malicious parties that may not be directly responsible for the violations.
Overall, this book is an essential guidebook for every marketer, manager, and CEO. It fills a void that has existed until now, and I recommend every marketer, manager, and CEO read it. The principles and practical guidance contained in this book will make you much better equipped to handle the reputational crises that can strike your brand suddenly and without warning.
(Harish Bhatt is a passionate marketer and best-selling author. He is an avid researcher into brands and Indian consumer trends)
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