Team Brand SlamRyan Fox

Brent HollowayCarrie Martinelli

Michael RoyGarrett Smith

Brand Equity & CrisisManagement

► Brand Equity ► Key Topics ▪ What role does brand equity play in a crisis?

▪ Does existing brand equity hurt or help?

▪ What role does brand equity play in stakeholder response?

► Recommendations & Conclusion ▪ What are the optimal brand properties?

▪ How should a company respond to a crisis?

AGENDA

► What role does brand equity play in a crisis? ▪ Build brand equity early ▪ Diversify brand portfolio?

► Does existing brand equity hurt or help? ▪ Take advantage of a crisis

► What role does brand equity play in stakeholder response?

▪ Brand Meaning and Brand Awareness ▪ How stakeholders perceive the company’s response

KEY TOPICS

► Insulation against possible crises

► Quicker recovery from crises

► How? Corporate Social Responsibility (CSR)

BUILD BRAND EQUITY EARLY

► Limit Sub-brands

► Eliminate the Association Effect

DIVERSIFY BRAND PORTFOLIO

► DOLE E. Coli SaladContamination

► Free media coverage

► Display responsibility

► Earn trust

► Spurs Innovation

TAKE ADVANTAGE

► J&J Tylenol

► Heritage vs. Individual Branding ▪ Dove vs. Colgate-Palmolive ▪ Firm Reputation

► Context of the Crisis

BRAND MEANING & S.H. RESPONSE

Customers

Media

Shareholders

Supply Chain

Partners

Employees

Government► Martha Stewart

► Awareness: UP ▪ Newsworthiness ▪ Snowball Effect ► Brand Meaning: DOWN ▪ Trust/Reputation Reassessments ▪ Tighter Expectations

► Stakeholders to the Rescue

BRAND STRENGTH & S.H. RESPONSE

Customers

Media

Shareholders

Supply Chain

Partners

Employees

Government

► Proactive vs. Passive Responses ▪ Can’t please everyone ► Leveraging Brand Equity ▪ High-Profile Endorsements ▪ Free Clean-Up Publicity

HOW S.H. PERCEIVE COMPANY RESPONSE

Customers

Media

Shareholders

Supply Chain

Partners

Employees

Government

STRONG BRAND EQUITY

PositiveBrand Image

Authenticity Reputation

TRUST

WHAT ARE THE OPTIMAL BRAND PROPERTIES?

TANGIBLES▪ Performance

▪ Behavior

▪ SupportiveCommunications

INTANGIBLES▪ Integrity

▪ Goodwill

▪ Competence

TRUST

WHAT ARE THE OPTIMAL BRAND PROPERTIES?

► Assess the Situation/Incident ▪ Spillover Effect

▪ Rebound Effect

► Acknowledge the Problem

► Formulate a Strategic Response

► Implement Response Tactics

CRISIS ACTION PLAN

► What role does brand equity play in a crisis?

► Does existing brand equity hurt or help?

► What role does brand equity play in stakeholderresponse?

► Optimal brand properties

► How should a company respond to a crisis?

► Other Questions...

DISCUSSION