negative brand stories

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If you believe storytelling is a powerful tool of communication and you have never thought of impact of negative brand stories then, you may find this research interesting.

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Page 1: Negative brand stories

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Page 2: Negative brand stories

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Page 3: Negative brand stories

If “stories build belief, belief builds brands, and brands build business”, then negative stories also build belief, belief which harms brands, and brands lose business.

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Page 4: Negative brand stories

STORY

“Where’s the beef?”

Case Study

storyfor

http://www.bbc.co.uk/news/world-us-canada-12315127

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Page 5: Negative brand stories

LOSSES: More Than $8,900,000.00 ($8.9 Million)

Case Studyhttp://www.businesspundit.com/5-corporations-damaged-by-false-accusations/

“Where’s the beef?”

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Page 6: Negative brand stories

STORY

Chicken cruelty (PETA allegations)

Story?for

http://www.kentuckyfriedcruelty.com/

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Page 7: Negative brand stories

Heavy losses incurred by brands againstnegative stories.

$5.55 Billion

$8.9 Million

$21 Million

Millions of pounds(Business pundit, 2011.)

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Page 8: Negative brand stories

Brands caught in negative story traps.

Research Problem:

Research Question:How design can help brands to overcome negative stories?

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Page 9: Negative brand stories

To propose brand management strategies by utilising design thinking to help brands to overcome negative stories.

AIM:Copyright Brunel University

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• To review communication between brands and consumers

through stories.

• To critically examine successful brand stories.

• To identify the reasons of negative brand stories.

•To find out experts’ opinion on negative brand stories.

• To propose management strategies to help brands to

overcome negative stories.

Objectives:Copyright Brunel University

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METHODOLOGY:

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Research Problem, AIM and

Objectives

Findings and Discussion

Re-craft Recommendations

Types of Negative Stories

Validation (Evaluation of recommendation)

Analysing (Reasons and Impact of Negative Stories)

Extensive Exploration (Consumer Behaviour and Expert Opinion)

Brand stories, Storytelling, and Types of Stories

Literature Review

(Books, Articles/Journals, Internet)

Case Studies(Coca-Cola, BP, Apple, KFC, etc.)

Guest Lectures(How to use stories in

presentations and its impact)

Background Research(Motivation and Defining of AIM)

To understand consumer psychology and Role of Design

On-line Discussions (On Linkedin.com group, Brand &

Communications management)

Focus Group(To get consumer reactions)

Interviews (Through e-mails, phone and in

person)

Survey(Online – 108 feedback)

Literature Review(Books, Articles/Journals)

To analyse every possible cause and solution

Story-boarding

(Graphical presentation of problems and findings)

Observation(Comparative case studies)

Expert Opinion(Interviews and on-line

discussion)

Reasons of Negative Stories

Brand Management Strategic RECOMMENDATIONS

How impactful recommended strategies will be in real brand world?

Interviews(To get expert suggestions)

Focus Group(An experiment and discussion

with group of six Branding Strategy students)

Conclusion and Future Prospects of Research

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Case StudiesCopyright Brunel University

Brand Industry StoryApple Electronics Successful and classic example of brand storytellingCoca-Cola Beverage Market leader and well connected with consumer even after having

lot of negative stories.

British Petroleum Oil and gas Struggling with major negative stories.McDonald’s Food Had faced many negative stories in the past and managed to

overcome them.

Taco Bell Food Recently has faced big negative story.Nike Footwear and clothing Was trapped in major negative story and came out as a market

leader.

Nestle Food Many negative stories came but didn’t effect it as a brand.LG Electronics Never had powerful brand story and never faced major negative

story.

KFC Food Badly trapped in negative stories and still struggling to get rid of them.

Dominos Food Had faced one of the worst on-line negative stories.Innocent Beverage One of the best successful brand stories.Disney Entertainment Heritage brand story.Ted Baker Clothing Unreal but successful brand story.SBI Life Insurance Banking and Insurance Used storytelling as major branding tool.Tiger Woods Celebrity Brand died because of negative story.Ford Edsel Automobile Failed brand story.

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Reasons of

NegativeBrand stories

Lack of Awareness

False Promises

Increasing Competition

Rise of Social Media

Findings

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Role of

Designin Brand stories

Stories = Brand message

Design = Brand Character/Image

Findings (Benetton group, 2011.)

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Types of Brand StoriesCopyright Brunel University

Findings

1) BRAND FACE STORIES

HeritageOriginOriginalConstant

Example: Disney – Ideal American Community(Bensen, 2011)

2) BRAND VALUES STORIES

• Commercial• Created• Brand message• EvolvingExample: Coca-cola spreads happiness

(Mathews, and Wacker, 2008)

3) NEGATIVE BRAND STORIES

• Emerge• UnfavourableExample: KFC – Chicken cruelty, PETA Allegations(PETA, 2011)

BRAND STORIES

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On-line Survey to know consumer beliefs 108 feedback

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Analysing consumer behaviour

Most Loved

65%

Most Hated

10%

People like to say what they ‘LIKE’

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Findings

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Analysing consumer behaviour

75 positive stories 64 Negative stories

People like to say what they ‘LIKE’

Product Satisfaction

Value for money

Style and Design

User-friendly

Experience

Trust

Exclusive

Misleading

Poor Value for money

Bad Design

complicated

Poor customer service

Bad quality

Copied Ideas

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Findings

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Analysing consumer behaviour

Love

Hate

Product Service

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Findings

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Conclusions

Every brand must have unique brand story to emotionally

bond to the consumers.

Good Design leads to successful story.

Service Brands are more prone to negative stories than

Product Brands.

People talk about positive thing more than negative stories.

Negative brand stories are as impactful as positive.

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Page 21: Negative brand stories

Recommendations Emotional bonding between brand and its consumers through

stories can shield the brand against negative stories.

Brands must narrate their stories repetitively to keep their

message alive.

Only a counter story can save the brand against negative

story. This counter story should a new improved version of brand’s

original story.

Brand stories should be appropriately Designed for its

message.

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Recommendations

Brands should not deny or ignore the negative

stories even if those are false.

Brand stories need to be evolved with the time keeping

the original message alive.

Brand itself need to be evolved with every negative story.

Never tell a story which Brand can not live up to.

keep regular check on negative stories.

Engage consumers in Brand Stories.

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Page 23: Negative brand stories

Recommendations Brand management strategies to overcome negative stories.

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Problem Cause / Impact Counter-Story Through channels

- Negative Stories

- True or False

- Micro / macro

- Caused by Individual / Competitor / Misfortune / Mistake

- What loss to be expected in what time?

- Loud, clear and straight forward

- As quickly as Possible

- Press release

- Social media

- TV and newspapers

- More the better

- Tactical and emotional

- Well planned with time

- Press release

- As minimum as possible because brands wouldn’t like this story to be visible for long.

‘SHOUT-OUT-LOUD’

‘PLAN-a-SILENT’

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ROBIN HOODHe was a thief, then what?He is Hero. Because he had

reason for everything.

Brands can be like Robin Hood if they give good

reason.

(http://storynory.com/2008/07/20/robin-hood-and-maid-marian/)

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Page 25: Negative brand stories

ACKNOWLEDGEMENTS

Many people have inspired, helped and motivated me over the different periods of time during this research. My first thank is for my family and friends for endless love and support.

Special thanks to my supervisor John Boult for correcting me at every step and for helping me in moulding this research with lot of creativity. This research would have never been like this without his guidance and extreme knowledge.

I would like to express my gratitude to all my tutors, Chris Holt, Dr. Busayawan Lam, Youngok Choi and Dr. Ray Holland for sharing their knowledge and providing us with the understanding of design and branding. Every lecture and tutorial I attended in Brunel will be helpful throughout my life.

I can never be less thankful to all my focus group, survey and online discussion participants. Your efforts and suggestions are main pillars of this research.

Last but not the least I want thank to my interviewees for their valuable time and opinions. All your ideas and suggestions have not only added practical substance in this research but also made this research more useful and effective.

- Ashima Amar

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Page 26: Negative brand stories

References:Books:

Campell, C., and Simpson, J., 2010. Brand Narrative: How story gives meaning to marketing. Seabright blishing: California.

Haig, M. 2003. Brand failures : the truth about the 100 biggest branding mistakes of all time. London: Kogan Page.

Laurel, B. 2003. Design Research methods and perspectives. London: The MIT press.

Margolis, M. 2009. Believe me a story telling manifesto for change makers and innovators. New York: Get storied press.

PETA, 2011. PETA's Campaign Against KFC. [online] Available at: http://www.kentuckyfriedcruelty.com/[Accessed 1 March 2011].

Vincent, L. 2002. Legendary brands : unleashing the power of storytelling to create a winning marketing strategy. Chicago: Dearbon Trade Pub.

Wurman, R. S., 2001. Information anxiety 2. 2nd ed. Indiana: Que.

Articles:

Thomson, M., 2004. The power of a good brand story. [online] Available at: http://www.brandchannel.com/brand_speak.asp?bs_id=96 [Accessed 12 May 2011].

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References:Journal:

Woodside, A. G. Sood, S. Miller, K. E., 2008. When Consumers and Brands Talk: Storytelling Theory and Research in Psychology and Marketing. Psychology & Marketing, Vol. 25(2): 97–145

Adaval, R., & Wyer, R. S. (1998). The role of narratives in consumer information processing. Journal of Consumer Psychology, 3, 207–245.

Websites:

Innocent, 2011. Our Story: The untold truth. [online] Available at: http://www.innocentdrinks.co.uk/us/our_story/index.cfm [Accessed 3 June 2011].

Margolis, M., 2007. Definition: What is Brand Storytelling? [online] Available at: http://www.thirsty-fish.com/popanthroblog/2007/8/29/definition-what-is-brand-storytelling.html [Accessed 1 June 2011].

PETA, 2011. PETA's Campaign Against KFC. [online] Available at: http://www.kentuckyfriedcruelty.com/[Accessed 1 March 2011].

Travelers digest, 2009. Easy Jet Advisory. [online] Available at: http://www.travelersdigest.com/easy_jet_warning.htm [Accessed 3 August 2011].

Word press, 2011. Prediction: The BP Brand Won’t Survive « Building Strong Brands. [online] Available at: http://strongbrands.wordpress.com/2010/06/09/prediction-the-bp-brand-won%E2%80%99t-survive/ [Accessed 16 August 2011].