Have you ever seen a social media post or TV commercial from a well-known brand and said, “What the hell were they thinking?” Especially if it bordered on or crossed into being perceived as racist or prejudiced?
That’s exactly what Bath and Body Works faced when they launched their new line of holiday candles, which included one bearing the design of a “snowflake,” which resembles the pointed hoods of one of the world’s most notorious white supremacist groups. The seasonal product drew immediate public ire, and the company swiftly pulled the candles from shelves. If only they had put the same efforts into evaluating the product design and its packaging (Note: Bath and Body Works gets 40% of its revenue from sales of its holiday products.)
Sadly, they’re not alone. Walmart has come under fire for similar acts of terrible branding, such as their Juneteenth limited edition ice cream flavor. Critics responded angrily, stating that the big box chain was disrespectful and greedy, trying to make profits off of a holiday meant to celebrate African American freedom. Another misstep? When they publicly advertised a line of plus-size Halloween costumes on their website under a product category called “fat girl costumes.”
No tricks, and certainly no treats either when organizations make scarily poor business and marketing decisions. Marketing and advertising ploys that backfire can have significant repercussions for brands that were likely trying to be too cute. These include the usual suspects:
- Reputation Damage: It’s no surprise that a poorly received marketing campaign can tarnish a company’s reputation. These kinds of crises tend to cast long shadows. Brands associated with insensitivity or exploitation may face long-term damage, leading to consumer distrust. There is a real cost to reputational damage, and brands cannot always recover fully.
- Consumer Backlash: Consumers are king in our economy, and what they think and say matters. Customers may respond strongly to offensive campaigns, leading to boycotts of products or services, and scores of negative reviews on social media. This backlash not only affects sales, but can also create a viral effect – amplifying the negative sentiment far beyond the original audience. Not a good thing.
- Financial Loss: A concern that is at the forefront for all companies, the immediate financial impacts of a reputational crisis can be both swift and severe. Companies may see a drop in sales, and the costs associated with crisis management, such as providing refunds and engaging in rebranding efforts, add up quickly.
- Employee Morale: When your employer is in the hot seat for a scandal, it is only natural for employees to feel a lot of things. They may feel demoralized or embarrassed. They may lose trust in their leadership for making a poor marketing decision. And they may fear the stability of the business and, as such, their employment. Drops in morale often bring lowered levels of productivity and higher turnover rates. Public crises can also keep potential employees from wanting to join the business; especially true if the company is viewed as having missteps over ethics or values.
Here are a few thought starters you can discuss at your next team meeting to help your leaders and team see how your business would handle a marketing crisis such as the very scary ones detailed above:
- How would your business have handled this situation?
- If your business relies on, or may one day rely on, retail sales, how do you train your wholesale buyers to exercise discretion as they evaluate and select products?
- What is your approval process to ensure you never make this kind of misstep? And are the right people reviewing both product and marketing?
Kith facilitates crisis preparedness workshops that will help your company attain the clarity, trust, and speed you need to respond confidently – no dithering! – to any crisis. We’d be happy to have a conversation about how we can help your company be ready to chart an effective course to reputation protection.
