BRAND CRISIS

“RISE FROM ASH” REGAIN BRAND EQUITY AFTER

BRAND CRISIS

Submitted by – Sweta Leena PandaID – FMS/MBA/2015-17/000308

PRESENTATION FLOW

Introduction

What is Brand crisis and Types ?

Brand Equity

Crisis effect on Brand Equity

Methodology

Research on Customer

loyalty , Brand awareness , Brand Image

Findings

Conclusion and future

prospective

OBJECTIVE OF THE STUDY

Primary objective:-◈ Find out the relationship between all 4 elements (Brand awareness, brand image, Brand

loyalty, Advertisement) in brand equity.◈ Role of these 4 elements in brand equity.

Secondary objective:-◈ Study on how brand crisis Impact on market as well as customer

INTRODUCTION

Performance

Value Competence

Moral

BRAND EQUITY

Brand Awareness

Advertising Awareness

Brand Image

RESEARCH METHODOLOGY (NOODLE INDUSTRY)

Maggie93%

Yippee7%

% OF BRAND CHOICE

What is the brand that comes to your mind when we say the word noodles? I have selected following three

noodle brands for survey: 1. Maggi from Nestlé 2. Yippee from Sunfeast 3. Patanjali Noodles

• 50 samples from Odisha

13%

13%

47%

13%

13%

BRAND FAMILIARITY LEVEL

Affordable Essential Easy to cook Celebration

Which of the following attributes do you associate with that Brand?

RESEARCH METHODOLOGY (NOODLE INDUSTRY)

BRAND PERCEIVED QUALITY LEVEL

Good for health Ready to eatJunk Food Tasty /Fun eating

How do you perceive your noodle brand ?

Quality Price Brand Name Promotional Offers Availbility 0

2

4

6

8

10

6

4

7

3

87

87 7

5

2 21

32

12

BRAND IMAGE LEVEL

High Good Average Low

Rank the factors that affects you to choose this Noodle brand ?

Rate the different aspect of your prefer Noodle brand based on their importance?

Flabor Price Taste Brand Image Cooking Time Nutrition level0

4

8

12

BRAND IMAGE LEVEL

Very Important Important Neither important nor unimportant somewhat important Not important at all

Overall, how would you rate the quality of your Noodle Brand ?

Where have you seen advertisements for your Noodle brand?

If you favourite Noodle brand ban within few days due to some product quality issue , will it affect you ?

Are you willing to consume any other noodle brand other than your Noodle brand?

13%

67%

13%7%

BRAND SAFETY LEVEL

Very High High Average Low Very low

7%7%

80%

7%

BRAND ADVERTISEMENT EFFECT

Billboards MagazinesNewspapers OnlinePublic transporta-tion

Radio

TV Other

43%57%

BRAND LOYALTY CHECK

YesNo

Yes No May be

13. Do you Trust your brand?

14. Will you prefer others to buy this brand?

57%43%

BRAND LOYALTY LEVEL

Yes No May be

25%

37%

37%

BRAND TRUST EFFECTS

YesNoMay be

How will you rate your Noodle brand on health safety?

Will you like to prefer your noodle brand, after relaunch?

BRAND TRUST EFFECTS

Very Safe Safe Affect a little UnsafeYes No May be

Rank the various outlets in terms of believability to get information about your Noodle Brand ?

Facebook Twitter Myspace Google + Linkedin Blog01234567


High Average Low

Which social media account do you use to get updates about your Noodle brand?

Company Website

Facebook Page

Twitter Feed

0 20 40 60 80 100 120


Column2 Column1 Series 1

Rank the various outlets in terms of believability to get information about your Noodle Brand ?

National newspapers Local news channels Local newspapers Online news sources Company website Company blog Company Facebook page

Company Twitter feed0

0.51

1.52

2.53

3.5


Not at all believable Not very believable No opinion Somewhat believable Very Believable Extremely Believable

As a concern consumer of this Noodle brand, where would you go first for information about recall and situation in general?

If you didn't find the information you were seeking, where would you go next ?

10%

18%

36%

18%

18%


National newspapersLocal news channelsLocal newspapersOnline news sourcesCompany websiteCompany blogCompany Facebook pageCompany Twitter feedOther

30%

35%

18%

18%


National newspapersLocal news channelsLocal newspapersOnline news sourcesCompany websiteCompany blogCompany Facebook pageCompany Twitter feedOther

Rank the order of credibility in providing information?

036


High Low

Reasons for being loyal to food brands ?

Positive

brand

exper

ience

High stable

produc

t qua

lity

Good ta

ste

Meets

my exp

ectat

ions

Availa

blility

Availa

bility

Quality

vs pr

ice ra

tion

Purch

asing

habits

Long

term

pres

ence

in m

arket

Positiv

e imag

e

Family

tradit

ion0

4

8

12

CONCLUDE RESULT

Column1 Column2 Column3

Product with poor or low quality?

0

4

8

12CONCLUDE RESULT

Column1

Brand Equity Index:

Advertising Awareness + Brand Awareness + Brand Image = Brand EquityAttribute ScoreClarity 9Commitment 10Protection 8Responsiveness 9Loyalty 9Differentiation 8Safety 7Presence 8Understanding 7Consistency 6TOTAL 81 Total Brand equity scored 81 /100 .

EFFECTS OF CRISIS ON BRAND EQUITY

Brand Crisis Brand Equity

Consumer characteristics

Weaken Double-edged sword

Brand trust Brand loyalty Brand reputation

Crisis severityCrisis correlation Crisis response Strategies

Purchasing behaviourPurchasing frequency

FINDINGS ASSUMPTIONS OBSERVED EFFECTS

Assumption 1: A brand crisis caused by problem harm leads to losses in volume and market share.

Immediate loss of approximately 60% of the sales volume and market share of the “brand”. Immediate reduction of 5% in the volume of the category.

Assumption 2: A brand crisis caused by product quality may generate negative brand association.

The brand health indicators of the tracking indicated drop in perception of value, recognition of the superiority of the value proposal, perceived quality, and emotional relationship with the brand.

Assumption 3: A crisis of medium extent of the brand of a high reputation company represents a threat to the business of competitors by having the potential to affect negatively the entire category.

Immediately after the recall, the category loses 5% of its volume and takes six months to return to pre-recall levels.

Assumption 4: Due to the crisis, the competitors may become more aggressive aiming to win over consumers of the product that triggered the crisis.

Regional competitors made price reductions after the announcement of the recall and “competitor 2” intensified investments in communication.

FINDINGS ASSUMPTIONS OBSERVED EFFECTS

Assumption 1: Existing brand Situation 1 : Product quality issues Even though brand has high brand Loyalty , brand awareness ,brand Association but there is huge chance of drop of volume and market share . Example : Toyota and Maggi

Assumption 2: Existing brand Situation 2 : Enter new market or market development strategy Brand crisis happens due to enter into new market (international market) and new product adaption (Product awareness , cultural difference , Inappropriate brand advertisement).Example – ebay and google in china ,

Assumption 3: Existing Brand Situation 3 : Brand Diversification (new product) Brand crisis happens due to New product adaption (Product awareness , Inappropriate brand advertisement) Example – Tata Nano

Assumption 4: New brand Situation 1 : Product quality / Brand image / Brand advertisement Low level Brand–Less Brand Loyalty , Brand awareness , Brand with no such perceived quality and no competitive advantages

High level Crisis

Medium Level Crisis

Low level crisis

Brand loyalty

Brand Association

Brand Awareness

Perceived

Quality

ProprietaryAssets

High level brand –Loyalty, awareness ,quality, Association

Medium level brand-Awareness , Pseudo loyalty , Mis-information (perceived quality)

Low level Brand–Loyalty , awareness , No such perceived quality , No such competitive advantages

Brand Equity effects Crisis Management

Problems

SolutionsSOLUTION

Competitive advantages

Come

Reasons to buy, brand position, Price ,Wide availability, Number of extensions

Reduce marketing cost , bring new customers , Time to response to competitors brand , Trade leverage

Familiarity, consumer consideration , substantiality

Retrieve information from customers mind, drive purchasing , attitude ,

Brand Equity effects Crisis Management

Problems

Solutions

Perceived Quality

Brand Awareness

Brand Associations

Brand Loyalty

Proprietary Assets

High level brand –Loyalty , awareness ,quality, Association

Medium level brand-Awareness , Pseudo loyalty , Mis-information (perceived quality)

Low level Brand–Loyalty , awareness , No such perceived quality No competitive advantages

Brand communication

Come clean Police the haloNot just meInoculation Verifying accuser Rebuttal

Brand Strategy

Brand and market Extension, Sales promotion , Price flexibility , Strong competitive advantages

SOLUTION

IMPLICATIONS AND SUGGESTIONS

• The use of at least one measurement of reputation in organisations can probably detect weak signals of a crisis. This may accelerate the generation of potential contingency plans.

• Allocate an appropriate budget to reputation restoring activities. It is important to countervail damages promptly.• One cannot be prepared. However, if a crisis hits the company, time and work force should be dedicated to set up an emergency plan of action with a focus on communication.• Inform employees frequently of the current state of affairs during the reputation restoration. They can only support the company when they are able to determine their roles and tasks in the challenge.• Media request need to be responded. It is not advisable to create ambiguity by not communicating externally. Therefore, consider: "'Why do we communicate?", "Which message do we need to get out?" and "How do we do that?"• If the reputation crisis takes place in a culturally different environment, ensure local help from business partners and associates.• After a crisis, attempts should be made to consider the opportunities obtained, especially opportunities to improve the network which is used in an emergency situation.

CONCLUSION

• After the occurrence of the crisis, the departmental boundaries became closer, with an increased interaction and informal collaboration between the Marketing, Sales, Operations, Finance , Human Resources and Legal areas.

• This strengthening of the corporation after the crisis is a topic little explored by scientific research in general management and human resources.

• The growing number of cases of recall is followed by technological advances to captures tore and analyse information from different sources, formats and input speeds; this phenomenon known as big data.

Business

BRAND CRISIS