Brand crises can negatively impact brand equity by weakening brand awareness, brand image, and brand loyalty. A crisis may cause an immediate loss of 60% of sales volume and market share for high equity brands. Crises stemming from product quality issues can generate negative brand associations. For high reputation brands, a medium-sized crisis poses a threat to the entire product category. Competitors may take advantage of a brand crisis through more aggressive marketing. To regain equity, brands must come clean, address misinformation, and focus on communication, reputation restoration, and leveraging competitive advantages through marketing.

1. “RISE FROM ASH”
REGAIN BRAND EQUITY AFTER
BRAND CRISIS
Submitted by – Sweta Leena Panda
ID – FMS/MBA/2015-17/000308

2. 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

3. 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

4. INTRODUCTION
Performance
Value Competence
Moral

5. BRAND EQUITY
Brand Awareness
Advertising Awareness
Brand Image

6. RESEARCHMETHODOLOGY
(NOODLE INDUSTRY)
Maggie
93%
Yippee
7%
% 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
14%
13%
47%
13%
13%
BRAND FAMILIARITY LEVEL
Affordable Essential Easy to cook Celebration
Which of the following attributes do
you associate with that Brand?

7. RESEARCH METHODOLOGY
(NOODLE INDUSTRY)
BRAND PERCEIVED
QUALITY LEVEL
Good for health Ready to eat
Junk Food Tasty /Fun eating
How do you perceive your noodle brand ?
6
4
7
3
8
7
8
7 7
5
2 2
1
3
2
1
2
0
2
4
6
8
10
Quality Price Brand Name Promotional Offers Availbility
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?
0
2
4
6
8
10
12
14
Flabor Price Taste Brand Image Cooking Time Nutrition level
BRAND IMAGE LEVEL
Very Important Important Neither important nor unimportant somewhat important Not important at all

8. 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
6%
7%
80%
7%
BRAND ADVERTISEMENT
EFFECT
Billboards
Magazines
Newspapers
Online
Public
transportation
43%
57%
BRAND LOYALTY CHECK
Yes
No
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%
38%
BRAND TRUST
EFFECTS
Yes
No
May be

9. 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 Unsafe
Yes No May be
Rank the various outlets in terms of believability to get information about your Noodle
Brand ?
0
1
2
3
4
5
6
7
Facebook Twitter Myspace Google + Linkedin Blog
BRAND ADVERTISEMENT EFFECT
High Average Low
Which social media account do you use to get updates
about your Noodle brand?
0 20 40 60 80 100 120
Company Website
Facebook Page
Twitter Feed
BRAND ADVERTISEMENT EFFECT
Column2 Column1 Series 1

10. Rank the various outlets in terms of believability to get information about your Noodle
Brand ?
0
0.5
1
1.5
2
2.5
3
3.5
National newspapers Local news channels Local newspapers Online news sources Company website Company blog Company Facebook page Company Twitter feed
BRAND ADVERTISEMENT EFFECT
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%
BRAND ADVERTISEMENT EFFECT
National newspapers
Local news channels
Local newspapers
Online news sources
Company website
Company blog
Company Facebook page
Company Twitter feed
Other
30%
35%
17%
18%
BRAND ADVERTISEMENT EFFECT
National newspapers
Local news channels
Local newspapers
Online news sources
Company website
Company blog
Company Facebook page
Company Twitter feed
Other

11. Rank the order of credibility in providing information?
0
2
4
6
BRAND ADVERTISEMENT EFFECT
High Low
Reasons for being loyal to food brands ?
0
2
4
6
8
10
12
CONCLUDE RESULT
Column1 Column2 Column3
Product with poor or low quality?
0
2
4
6
8
10
12
Taste , smell and looks are
major factors
Questionable Product
safety
Defeacts and mistakes in
product quality and
labelling
All of the above
CONCLUDE RESULT
Column1
Brand Equity Index:
Advertising Awareness + Brand Awareness + Brand Image =
Brand Equity
Attribute Score
Clarity 9
Commitment 10
Protection 8
Responsiveness 9
Loyalty 9
Differentiation 8
Safety 7
Presence 8
Understanding 7
Consistency 6
TOTAL 81
Total Brand equity scored 81 /100 .

12. EFFECTS OF CRISIS ON
BRAND EQUITY
Brand Crisis Brand Equity
Consumer
characteristics
Weaken
Double-edged sword
Brand trust
Brand loyalty
Brand reputation
Crisis severity
Crisis correlation
Crisis response
Strategies
Purchasing behaviour
Purchasing frequency

13. 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.

14. 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

15. High level
Crisis
Medium Level
Crisis
Low level crisis
Brand
loyalty
Brand
Association
Brand
Awareness
Perceived
Quality
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 such
competitive advantages
Brand Equity effectsCrisis Management
Problems
Solutions
SOLUTION

16. 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 effectsCrisis 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 halo
Not just me
Inoculation
Verifying accuser
Rebuttal
Brand Strategy
Brand and market
Extension, Sales
promotion , Price flexibility
, Strong competitive
advantages
SOLUTION

17. 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.

18. 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.