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Published on 11th August 2009 by Jonathan Bernstein. Leave a Comment
In her guest article from the latest Crisis Manager newsletter, Karen Mallia, Assistant Professor at the University of South Carolina, explores the role Twitter and blogs played in these incidents, as well as the crisis management steps taken by each organization.
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Published on 10th August 2009 by Jonathan Bernstein. Leave a Comment
“Recalls undermine trust in a specific brand and it can take the company a long time to recover from the damage to its reputation, but it doesn’t have to take a long time if the company uses good crisis management tactics,” said Manpreet Hora, an assistant professor in Georgia Tech’s College of Management. “Reducing the time it takes to recall a product will have a positive effect on consumers’ willingness to purchase other products from the same company and if the recall is handled well, the stock price may recover to the same level as before the incident.”
As always, smart crisis management practices are the key. By forming plans before a recall is necessary, organizations can respond swiftly and with confidence, reducing damage to both reputation and the bottom line.
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Published on 8th August 2009 by Jonathan Bernstein. Leave a Comment
In an interview with Ad Age, Chief Marketing Officer Lee Applbaum downplayed criticisms of the nickname. He pointed out that consumers and media are drawing conclusion before they’ve seen any of the new campaign. The company has no plans to eliminate its RadioShack moniker, and the name will remain unchanged on exterior signage at stores. Those details were not apparent based on the company’s press release, as evidenced by the media coverage the announcement received.
When asked why the company did not roll out the campaign in a way that would have avoided at least some of the confusion, Mr. Applbaum insisted that the company is “very strategic.” He said it’s difficult to “dissect any one piece” of the platform and its rollout.
“When you contemporize an iconic brand, when you in any way seek to change that, it makes people uncomfortable, and I understand that,” he said. “I think [the criticism] is a reflection on the passion people have for an iconic brand. If people aren’t uncomfortable, then you haven’t done your job in being transformative.”
RadioShack had several opportunities here and seized them all. In going out of character for their brand, they inadvertently ignited controversy and the resulting media coverage. They then extended the coverage and turned the tables on critics by granting interviews to several magazines and popular blogs. Nationwide media attention before a new campaign’s even launched? Thanks to effective crisis response and some smart folks in marketing, Radioshack came out on top in this one.
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Published on 7th August 2009 by Jonathan Bernstein. Leave a Comment
In this issue our first guest, University of South Carolina Professor Karen Mallia, offers up a powerful review of two recent advertising campaigns torn apart by the power of social media, along with the lessons marketers should learn from these incidents. Our second guest, seasoned PR pro George Hayward, has some very timely crisis management advice to help you protect your organization in an economic downturn.
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Published on 13th August 2009 by Jonathan Bernstein. Leave a Comment