This may sound like the beginning of a bad joke -- but what do you get when you put together 16 brand communication experts and advertisers together to brainstorm and write down their strategies to tackle a crisis over 48 hours?
Well, advertisers begin to sound like PR counsels; the PR folks sound suspiciously like the brands they defend and the consumer activists. . . well, simply put, sound enraged!
In times of crisis, straightforward PR fights fire better than innovative advertising. When faced with a financial or legal crisis, the golden rule calls for direct communication backed by immediate action.
Social scientist, Shiv Viswanathan told CNBC-TV18, "I would like brands to apologise in the Japanese style, when they make a mistake. I don't think Indian brands know how to say sorry and if they don't know how to say sorry, then how can you have forgiveness?"
In a crisis speed is the brand's biggest ally. In 2003, a rumour about ICICI's supposed bankruptcy created havoc in the market. Depositors withdrew nearly Rs 550 crore (Rs 5.50 billion) over 72 hours and the company's managing director K V Kamath had to go on television to stem the panic.
MG Parmeswaran, executive director, FCB Ulka, says, "I remember how ICICI got into the act. They were talking on national TV and came forward to say that they don't have cash problem and that their NPA is under control."
Pranesh Mishra, president & COO, Lintas India, says, "In a crisis, the PR takes the upper hand in terms of strategy. Paid-for advertising is always more suspect because it has the disadvantage of being the manufacturer's perception of the problem."
But dousing the crisis is never just a simple choice of PR over advertising.
Take the case of the Bhopal gas tragedy in which over 20,000 people were killed in 1984. The then managing director of Union Carbide, Vijay Gokhale, was brought in to head the company when it faced its biggest calamity. Union Carbide's first response was defensive PR, but while it proved to be a setback to the company, it worked wonders for its brand 'Eveready.'
Ex-chairman emeritus, Union Carbide India, Vijay Gokhale says, "What we had done immediately after the Bhopal gas tragedy was that we stopped advertising. We waited about 2 to 3 months and then we distanced Eveready from Union Carbide, wherever we could under the law. We removed the words Union Carbide and our retail stood by us. Sales of Eveready hardly got affected. Maybe temporarily -- for one month, then everything got back to the old market share of above 44%, and it has grown thereafter."
While recalling brands is the single most effective act to recover public faith and trust, brands prefer to protect their topline over brand image. Even in the case of the cola company, where a recall of tested samples was possible, the company in question still preferred to slug it out with the CSE in the media. This, say brand experts, could be the new defense option for brands under fire in the future.
