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It is said that the true character of a brand is revealed by its response when things go wrong. Many Indians will recall the famous episode of how Cadbury responded when worms were discovered in its Dairy Milk chocolate bars, way back in 2003. Consumers were angry that a brand that they loved had let them down, and sales plummeted.
Cadbury initially went into a state of denial, but thereafter quickly put in place a sound and well thought out response plan. This included revamping of its packaging, strengthening quality control, re-building confidence with tens of thousands of retailers, and, finally, a powerful advertising campaign featuring Amitabh Bachchan which informed consumers of the tangible steps taken by the brand and sought to regain their trust. All this required significant investment, which the brand undertook without dithering. Within six months, Cadbury’s sales had climbed back to where they were prior to the crisis, and, more importantly, the brand had regained its credibility.
A new book, Managing Brand Transgressions, opens with this very case study of Cadbury in India, even as it puts forward eight fundamental principles for what brands should do when they are faced with such crises. Authored by two academics, Shailendra Pratap Jain and Shailini Sarin Jain, the book provides a sound and practical road map for navigating the sudden and unexpected storms that can hit brands that have transgressed or are perceived to have transgressed.
What is a brand transgression? The book defines this as a “harm causing violation of some fundamental rules and norms of the relationship” that brands have built with their consumers or with community at large. This is a wide-ranging definition, and can include a diverse range of things such as inadvertent inclusion of a harmful ingredient in a food product, an engineering error that results in mobile phones exploding, incorrect treatment of a consumer in a retail store, an advertisement that is considered culturally insulting, the leadership of the brand engaging in inappropriate actions or the deliberate rigging of emission norms in an automobile.
The authors point out that brand transgressions have become routine and global, and even the world’s most respected or best loved brands are likely to face such crises from time to time. Most transgressions are caused by errors of commission or omission by the brand, but some can also be caused by sheer perception that may have no real foundation in fact. Either way, the brand has to respond to prevent damage to its reputation and its consumer franchise.
The book then outlines a framework with eight principles that can guide a brand’s response to transgressions. The first principle is perhaps the most important too – it emphasizes that, first and foremost, the brand should do the right thing. When the transgression has caused harm, taking the right actions to offer closure, comfort and reassurance to the impacted consumers is critically important. It is essential to put the customer first, and initiate the right set of tangible corrective actions without losing time.
The authors narrate the well known case-study of the crisis faced by the painkiller brand Tylenol in the 1980s, to illustrate this principle. Here was a situation where cyanide, a poisonous substance, was discovered in Tylenol capsules. The series of well coordinated and timely steps taken by Johnson & Johnson (the owners of Tylenol) to fight this crisis have become folklore today.
The seven other principles of managing transgressions which the book puts forward include taking accountability, acting with lightning speed, communicating transparently, choosing principle over profit, treating each life with dignity, leadership setting the tone, and building brand authenticity. For each of these principles, the book offers highlights the why and the how. It also brings each principle to life through two real-life case studies.
These case studies span well known global brands such as Nokia, Maggi, Starbucks, Ben & Jerry’s, Taj Hotels and Patagonia. As the authors point out, each of these case studies has many moving parts and taps into more than just one principle. However, the book uses each story to highlight one particular principle, and also takes the reader through a step-by-step narration of how that specific principle has been put into practice.
I was impressed with the extensive research which has gone into each of the twenty five case-studies that the book contains. Each of these cases holds important lessons for managers and CEOs, who are, in the final analysis, the custodians of their brands.
The book offers us in-depth insights into an important subject that deserves far more attention than it has got in the past. Managing brand transgressions is not as glamorous as launching new products or creating compelling marketing campaigns. Yet it is critically important in protecting brand reputation, which is the foundation on which consumer trust is built.
In fact, if a transgression is managed really well, it can actually enhance the reputation of the brand in the eyes of all its stakeholders. The book brings home this point very well. On the other hand, it also highlights how investments made in many years of brand building can be lost within a few days, if the crisis is handled inadequately or incorrectly.
The structure of this book permits an easy flow of reading. Each chapter deals with one specific principle, and, in each instance, the authors strike a good balance between the conceptual foundation of the principle and the case-studies. Sometimes, the text veers into difficult territory, and I do wish the language used could have been simpler. Also, I would have been interested to read about how brands can proactively prepare to handle possible transgressions, including actions by motivated or mischievous parties where the brand may not be directly responsible for the perceived transgression.
Overall, this book is an essential guidebook for all marketers, managers and CEOs. It fills a void that has existed until now. I recommend it for reading by every marketer, manager and CEO. The principles and actionable guidance contained in this book can make us far better equipped to deal with reputational crises that may come upon our brands suddenly and without prior notice.
(Harish Bhat is an avid marketer and bestselling author. He is a keen student of brands and the Indian consumer landscape)
Check out the book on Amazon.
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