Failures of Brands on Facebook


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Failures of certain Brands on Facebook, a presentation made as part of the Social Media Marketing course by Prof. Kiruba Shankar at Great Lakes Institute of Management, Chennai.

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Failures of Brands on Facebook

  1. 1. A Presentation onSocial Media MarketingSiddharth Garg FT13172 www.siddharthgarg.comKen Sekhar FT13141 www.kensekhar.comKriti Sharma FT13342 www.kritisharma.comAkhil Sharma FT13200 www.akhilsharma.comAnup Pandit FT13209
  2. 2. Tesla Motors Facebook story • A high-end, zero-emissions car company that already sold out of itsThe Message newest car, the Model S, before it even appeared in showrooms • Tesla is different from traditional automotive manufacturers like Audi Winning and BMW that want to be positioned as more eco-friendly Edge • Facebook wall comments/posts The Path • Relying solely on its audiences wall comments for engagementThe Mistake • Tesla missed the opportunity to share its unique niche andMissed bus differentiate itself from its competition
  3. 3. Comparison Audi vs TeslaAudi 1. Selective & interesting 1. Information Overload for content users the viewers 2. Clear message & brand 2. Generalizing the niche, focus brand dilution 3. User/consumer generated 3. Company generated content content 4. Clear engagement, not just 4. Throwing out information, posting, creatively putting hard to relate brand with content and relating to consumer’s lifestyle, yet to customers lifestyle/likings develop the brand passion Tesla
  4. 4. Learnings:• Posts on Facebook wall are just a starting point; posts are not a brand drive• When it comes to encouraging fans to get more involved with your brand, simply posting on your wall isnt enough• You need to engage them so theyre interested in your backstory and they want to understand why they should buy from you• Not Having Answers to “What Exactly Is It?" and "Why Should I Want It?” – will lead to failure• Need to evolve in the market
  5. 5. Failure to Communicate• When Netflix raised its charges, enraged fans took to the digital airwaves• Fans posted around 11,000 comments• Many of the comments were not replied to• None of the comments/posts were replied to immediately• Reassurances were constantly made to the fans regarding the latest policy, met with even more venomous comments
  6. 6. Learnings• Facebook not the medium to address current business challenges• Needs a large team, without which you just come off as unresponsive• Responses also get buries in a pile of comments, especially if not addressed immediately• Fans won’t forgive: “I think Christmas will be spend shopping for a new streaming service.”
  7. 7. Staying Quiet onFacebook• Goldman Sachs blamed by many for the recession• Viewed as a poster child for Corporate Greed• Goldman Sachs failed to comment on its withering brand value• Absolutely nothing posted on Facebook or Twitter
  8. 8. Learnings• Goldman Sachs was perhaps paralyzed with fear amidst all the hate comments (Particularly the Anti-Semitic ones)• Moderators must be pro-active in taking down such racially abusive posts• Put up “House Rules” on the page• Doing nothing just allows for lies and abuses about your company to circulate on Facebook• They must contact Facebook to reclaim their page, and start rebuilding
  9. 9. What went wrong ?• Wal-Mart started with intent to post content and for followers to discuss and communicate about it• Wal-Mart decided to restrict comments and feedback on its Facebook page to “Wall Posts” - Not a great public image , feared that Facebook could bring upon countless negative comments• No 2-way communication• Wal-Mart limited user content - demeaned the whole point of creating a Facebook page
  10. 10. • Lack of interactivity – became just another place for Wal-Mart to advertise• Didnt listen to potential customers• Bloggers took notice of this lack of conversation and soon a flood of anti-Wal-Mart comments appeared on the wall posts.• Shut in less than 3 months
  11. 11. Social Media FailureSTARBUCKS
  12. 12. • Starbucks India quickly deleted a post made by an angry customer Armaan Kapur on Facebook page• Posted by him on Starbucks and Starbucks India Facebook pages on 7th February, 2013 – post triggered 5,100+ likes, 250+ comments in a few hours• Post removed by both Starbucks and Starbucks India – it was getting more attention than their regular updates – This triggered a viral rage on Facebook & Twitter
  13. 13. • @ArmaanKapur tweeted a screenshot of his post on Starbucks India’s Facebook wall• got him more attention from Twitterati resulting in further damage of Starbucks’ image
  14. 14. • Starbucks, which just established its presence in India had a great opportunity to show people that they don’t just claim to sell the best coffee in the world but also offers best customer service – even on Social Media• The Best Way Starbucks Could Have Handled This: – By NOT deleting the post without addressing it – By responding to the post immediately and assuring a response in the public eye – By taking a call personally / offline with customer and solve the issue amicably, requesting him to remove the post himself
  15. 15. The Brand has deleted the image as well as all the posts from Facebook
  16. 16. After a long time the company finally comes out with a response
  17. 17. Learnings• Don’t react quickly to haters without thinking of the impact it will have• Never delete customer comment. It only adds fuel to the fire• Allow your fans to fight your battles• Never lose an opportunity to try and convert a hater
  18. 18. All is not lostThe response
  19. 19. 5 Reasons why it was a success• Recognizing an opportunity• Timely response – 8 Days• Self-aware – Able to make fun of themselves• Funny – Humor and the use of cats• Bold – Go big or go home
  20. 20. THANK YOU!!!