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BRAND CRISIS

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Study on how brand crisis Impact on market as well as customer

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BRAND CRISIS

  1. 1. “RISE FROM ASH” REGAIN BRAND EQUITY AFTER BRAND CRISIS Submitted by – Sweta Leena Panda ID – FMS/MBA/2015-17/000308
  2. 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. 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. 4. INTRODUCTION Performance Value Competence Moral
  5. 5. BRAND EQUITY Brand Awareness Advertising Awareness Brand Image
  6. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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.

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