Imagine, if you will, your company's reputation as a gleaming, delicate glass sphere. It beautifully exhibits the many facets of your business in the world. But, alas, just as quickly as it can display your accomplishments, it can also shatter if mishandled.
Imagine, if you will, your company's reputation as a gleaming, delicate glass sphere. It beautifully exhibits the many facets of your business in the world. But, alas, just as quickly as it can display your accomplishments, it can also shatter if mishandled.
Sounds terrifying, doesn't it? But fear not; this corporate crystal ball can remain intact and sparkling with the proper knowledge, strategy, and a dash of elbow grease.
Legendary adman Bill Bernbach once said, "Good advertising does not just circulate information. It penetrates the public mind with desires and belief." This couldn't be truer for your corporate image. It's a silent sales agent, subtly fuelling your sales, trust, and growth. But maintaining its lustre requires careful nurturing, vigilant safeguarding, and tasteful polishing.
Let's delve into the trenches of corporate reputation management.
Take a leaf out of PepsiCo's book. Remember the "Pepsi Gets It Wrong" debacle back in 2017?
Pepsi faced a social media storm over an ad that depicted Kendall Jenner abandoning a photoshoot to join a protest. The climax—Jenner handing a can of Pepsi to a police officer—was met with cheers from the crowd.
Unfortunately, its reception was also met with a barrage of criticism.
The public felt Pepsi was trivialising serious issues and appropriating a racial protest movement. The backlash was fierce, and Pepsi quickly retracted the ad, issuing an apology for missing their aim of promoting unity, peace, and understanding.
This incident is a stark reminder for companies to tread lightly when referencing social issues.
The ad misstep resulted in a PR fiasco for Pepsi.
The takeaway?
Stay alert for new trends or potential issues, and be aware of the associated emotions. Although jumping on board with popular trends can generate a lot of positive publicity for your company, it can backfire if your approach is insensitive. If you make a mistake, promptly apologise and take corrective action.
We can learn from the 1990 Perrier scandal. A chemist discovered traces of benzene, a potentially harmful chemical, in bottles of Perrier water.
Initially, Perrier brushed it off as a one-off incident, blaming a worker's dirty rag at a U.S. bottling plant. But as more tainted bottles surfaced globally, they shifted focus, pointing fingers at dirty filters.
The aftermath?
A worldwide recall and the destruction of 260 million bottles.
Their sluggish response to the crisis had sweeping consequences. Perrier was reclassified from tax-free 'water' to a taxable 'beverage' in the U.S. and Canada, leading to a hefty retroactive fine. This reclassification stripped Perrier of its 'naturally sparkling' marketing claim.
The company's reputation took a significant hit, losing half of its sales and a chunk of market share, particularly in the U.S., to rival brands like La Croix and San Pellegrino.
Notably, the benzene found in Perrier's spring resulted from a natural chemical process, indicating that the situation could have been handled better with a savvier response.
Tesla, the electric car company, is an exemplary case here. It entwined their commitment to renewable energy and sustainable practices in their corporate DNA. Producing eco-friendly cars has carved its image as a responsible, green company.
Honesty is another critical element. Take Warby Parker, an eyewear company, as an example. They practise what they call 'extreme transparency.' They openly share their production costs, factory conditions, and pricing models. This candour breeds customer trust and loyalty, bolstering their corporate image.
So, how can you devise a strategy to protect their corporate reputation?
Step 1: Prioritise online tracking. Be aware of the conversations about your brand online and swiftly respond to any negative chatter.
Step 2: Develop a crisis management plan. Hope for the best, but prepare for the worst. In times of crisis, being transparent, quick to respond, and prioritising customer needs are essential.
Step 3: Foster a unique, positive corporate image that resonates with your audience. Follow Tesla's lead and align your brand values with your consumers.
Step 4: Promote transparency. In an era where consumers are more aware of ethical consumption, being candid about your practices, like Warby Parker, can significantly enhance your reputation.
Step 5: Consistently deliver exceptional products and services. Build a durable reputation by meeting and exceeding customer expectations.
As Bernbach noted, "A principle isn't a principle until it costs you money." When applied to reputation management, the more you invest in protecting and nurturing your corporate image, the more robust and persuasive your company becomes.
So, safeguard the golden goose by protecting your corporate reputation.
Now, it's your turn. What steps are you taking to protect your corporate reputation?
Share your insights in the comments below or contact HiveMinded for a comprehensive brand reputation strategy.
We're here to help!
