Brands in shining armour

In a world wired to digital media 24x7, image management practices need an overhaul

Images have never been so brittle, or so expensive to manage. Ask Nestle which has had to hire not one but two external communication management companies over the past month. Or Hindustan Lever, which is struggling to counter the allegations leveled by activist rapper Sofia Ashraf's in a three-minute video that has been downloaded over 30 lakh times. Or talk to Housing.com which has been bruised by its former founder-CEO's sharp and intemperate outbursts, and it is clear that brands are swimming blind in a deep ocean.

In a society that has become used to living under constant scrutiny, brands are being subjected to the same. This is not a new phenomenon, in fact way back in 2009, soon after the financial crisis, a paper published by McKinsey Quarterly* and now available on the company's website, spoke about 'underlying shifts in the reputation environment that have been under way for some time.' It pointed towards the brutal and ruthless manner in which issues are discussed and shared over social media and 'the increasing significance of nongovernmental organisations (NGOs) and other third parties, and declining trust in advertising.' It said that the 'wider, faster scrutiny of companies' had made 'traditional public-relations tools less effective in addressing reputational challenges'.

According to Veena Gidwani, former CEO of Madison PR, 'companies need to not only communicate effectively in the social media age, but also to listen and respond, aligning with both brand and customer expectation on an ongoing basis.' And companies must focus on crisis planning. She explains, 'There is a need for senior management to plan for crises (especially those in the food and personal consumption space) and work closely with partners to have an effective plan in place. It is also important to effectively communicate with employees as they are the best ambassadors of the company's reputation.'

The two most recent brands under fire, in the Indian context, are of course, Nestle and HUL. Both companies were slow to react to the outrage and neither was a match for the sharp attacks against their brands on social media. 'Today consumers are communicating directly with brands. This has happened thanks to the emergence of social media. However, companies have not geared themselves up to manage that communication', says Valerie Pinto, CEO Weber Chandwick India.

With inputs from Arnab Datta
*Rebuilding Corporate Reputations, McKinsey Quarterly, June 2009

 

Brands must know how to live live: K V Sridhar

The Nestle issue is a huge lesson. In many respects, it stands apart from the other recent crises. Why? Because no one anticipated that a food inspector's move in Barabanki, UP could trigger such a massive response. I saw the cola problem, when it erupted, the Cadbury worm issue, Uber, Ola in recent months. These problems, one could still anticipate. But I am not sure whether the company did take the Barabanki tests seriously. And the problem really began there. I think it is important for companies to respond to issues as they erupt. Gone are the days when you could ignore them. In the digital era, this is no longer possible. Brands must know how to live live. If you do not respond within 20 seconds, people will think that you do not care. Unlike TV, where you at least have a 30-second commercial to communicate your message, on social media all you have is twenty seconds to build opinions. Today, consumers are also aware of what is happening around them. You can't hide behind a veil of canned communication. If they realise this, brands and companies will be able to survive this digital onslaught.

K V Sridhar
Chief creative officer, Sapient Nitro

Be transparent and forthright: Nabankur Gupta

The focus of the company (Nestle) was inwards. The attitude has been typical product-market centric rather than customer-centric. The initial impression that people got was what they were feeding their kids was not safe. The first port of call for a consumer goods company is the consumer. If we start from there, it saves us a lot of hassles. What I am speaking of here is damage control, something that the auto companies do well. The moment there is any issue companies step in and say that they are willing to take back the product. This way the faith of the consumer in the brand remains intact. It goes a long way in conveying that you care and in today's 24/7 communication era, I think it becomes all the more imperative for companies to be cautious and watchful of where consumer sentiment is going.  My advice to companies whenever they find themselves in a crisis of confidence is to be transparent, forthright and take ownership. Demonstrate that you are in charge and willing to rectify the issue. This humility helps.

Nabankur Gupta
Founder CEO, Nobby Brand Architects & Strategic Marketing Consultants