Here are two case studies of brands that effectively managed reputation crises while leveraging their strong brand personalities:
- Johnson & Johnson – Tylenol Crisis (1982):
In 1982, Johnson & Johnson faced a major crisis when seven people in the United States died after ingesting cyanide-laced Tylenol capsules. The company responded swiftly and transparently, leveraging its strong brand personality characterized by responsibility, trustworthiness, and care for customers.
Key Strategies:
- Immediate Recall and Cooperation: Johnson & Johnson swiftly recalled 31 million bottles of Tylenol, costing them millions of dollars, but prioritizing customer safety over profit.
- Transparent Communication: The company openly communicated the crisis, actively engaging with the media and the public. They provided regular updates, shared information about the recall, and worked closely with law enforcement agencies.
- Demonstrating Genuine Concern: Johnson & Johnson’s CEO, James Burke, took a personal approach in addressing the crisis. He expressed empathy for the victims’ families and demonstrated a genuine concern for public safety.
- Introducing Tamper-Proof Packaging: In response to the crisis, Johnson & Johnson introduced tamper-evident packaging, setting a new industry standard for safety.
- Rebuilding Trust: The company implemented extensive PR and advertising campaigns to rebuild trust, emphasizing its commitment to customer safety and quality.
Result: Johnson & Johnson’s swift and transparent response, aligned with its brand personality traits, helped restore trust in the brand. Within a year, Tylenol regained its market share, showcasing the effectiveness of their crisis management strategies.
- Starbucks – Racial Bias Incident (2018):
In 2018, Starbucks faced a reputation crisis when two black men were arrested at one of its stores in Philadelphia due to racial bias. Starbucks responded promptly, leveraging its brand personality traits of inclusivity, social responsibility, and ethical conduct.
Key Strategies:
- Apology and Acceptance of Responsibility: Starbucks’ CEO, Kevin Johnson, publicly apologized for the incident, accepted responsibility, and acknowledged the need for change within the company.
- Training and Policy Changes: Starbucks closed thousands of stores for a day to conduct racial bias training for its employees. They also revised policies to ensure a more inclusive and welcoming environment.
- Engaging with the Community: Starbucks engaged with community leaders, activists, and experts to address racial bias issues. They sought external input to develop comprehensive strategies for long-term change.
- Communicating Actions: The company communicated its actions and progress transparently through various channels, including social media, press releases, and public statements. They shared updates on policy changes, training initiatives, and community partnerships.
Result: Starbucks’ swift response and proactive measures aligned with its brand personality, reinforcing its commitment to inclusivity and social responsibility. While the incident had negative short-term impact, Starbucks’ efforts to address the issue helped rebuild trust and strengthen its reputation in the long run.
These case studies highlight the importance of aligning crisis management strategies with a brand’s personality traits. By staying true to their brand values and effectively addressing the crises, these brands were able to regain trust and maintain their positive reputations.
