Guest Column: How to manage a brand crisis? Don't: Adve Srinivasa Bhat
A crisis continues to remain a blemish for a brand if not settled with convincing explanation and with a product that is an innovation, the inability to explain the negative aspects would only hurt the sales hard, says management consultant Adve Srinivasa Bhat

After the issue of Coke’s bottling plant in Plachimada in Kerala depleting and contaminating the underground water in vast locations in the vicinity of its factory, the accusation of presence of pesticide residue in soft drinks including coke and Pepsi and a case of worms in an unit pack of Cadbury chocolate some years ago many brands have been in the news for wrong reasons but hardly did they slip into the kind of crisis some big brands have in the recent past.
Right now the one that is in the whirl of its own is the fairly popular politics and general interest magazine ‘Outlook’. Considering the crass little piece it published so very carelessly I expected the management of the magazine to consciously avoid the urge to commit the common PR mistake; of nay saying and raising steadfast defenses rather revealingly. Brands, irrespective of size and stature seem to err invariably in their first response against complaints and accusations only to yield helplessly through the crisis gradually. In choosing to douse the outrage with an explanation more inept than the obnoxious piece Outlook was only replaying the PR blunder proven as such many times over. To claim to have put the piece in lighter vain and then to brazenly call it as satiric while sheepishly removing the offending piece from its website – is not just unwise, irresponsible too. Though the IAS officer gave Outlook two weeks to choose, detailed apology or the criminal suit, it complacently took hardly half of it only to take the wrong decision. The advice on such situation is simple; DON’T try to manage a crisis that cries out ‘YOU’ are wrong.
Professionally, the very true management doctrine; of the chance of wriggling out opportunity from adversity stands true for Outlook too for jumping out of the mess. Outlook should know it has no friends in its hour of inquisition, as cruel as the cracker it wrote. Only way it can save itself from the possible financial wreck, having pushed the IAS officer, by the grit of its managers’ ego, to seek the decree from the court is to write an admirable piece of apology, though a little too late already. After all, admitting on offensive mistakes gracefully and with a sincere note of regret is a known good trait that would only endear a brand to its audience. In fact brand Outlook has more to gain if its managers would see the good branding opportunity in the mess. Much of Outlook’s writing in politics ought to be aligned with its expected endeavor in contributing towards enhancing the maturity of politics and social thinking in India though the piece in question can be ignored as an exception. Outlook would also set a compelling precedence and caveat on such offences if they, those responsible for the nasty piece, would do a half day Swachh Bharat service around the office of the IAS officer in repentance, quite willingly. You do; you can demand – and opportunities for Outlook for aggressively recommending similar service, as part of its mission, for similar but oral offences which has long become daily shower by some folks in our politics, the people Outlook regularly writes about. Let me clarify, this advice is no satire. If Outlook would have an elaborate vision document what is suggested can well be a deliberate effort towards effectively curbing immature dialogues in our politics, needless to mention of immature writing in the media. That tells a lot about the competitive advantages companies can derive from developing professionally evolved practical vision and mission documents – beyond the useless four word statement – ‘to be the best’. Does the response of Outlook to the due outrage triggered by its annoying piece support its larger objectives, in any way?
Infosys is another famous big brand which to the surprise of vast sets of its stakeholders sailed into a crisis in resetting its top management on the task of charging up its declining growth and competitiveness. The company steadfastly defended its inappropriate actions raking up a spate of bad press and its own misplaced anger to eventually throw a threat of whopping Rs.2000 cr law suit for defamation at a set of business media – ET, TOI and FE. Economic times refused to budge; Infosys quickly found proper solution for fixing its top management, the law suit was forgotten and the rain of repetitive articles in the papers stopped. Period.
Infosys story makes a good lesson for those who manage companies at the board level particularly independent directors and of course to the govt too on how to work with its own tools in dealing with misstepping companies.
Economic Times I thought was extremely lucky to have survived that threat turning into an inescapable court case and thus was spared of the pains of a potential crisis for itself writing hilariously about one. Infosys had an absolute chance to make the pink paper pay for just one of the 9 articles it ticked. That short article going by the title; “Ask Dr. D: I have got daddy issues!” dated 6 June 2014 which mocked the highly respected Sir NRN and his family in its entire length was many times more offending than the Outlook’s demeaning piece on the IAS officer. Failure on the part of Press Council of India to act decisively on that breach tells of the futility of self regulation by the media in India.
Volvo the Swedish bus maker also demonstrated deficient approach in rising up to the crisis caused by the horrific wild fire quickly engulfing their buses on the run. Three ghastly mishaps all within months which burnt to death many passengers remain unexplained on the causes for over a year a half now. Volvo, in shielding itself, talked of its buses plying fine in Europe and elsewhere in the world for years without any issues on the design that can prove fatal even as the transport regulatory departments of the states and central govts blamed it for the faulty design amid speculations on other possible causes which included issues about drivers and design customization. The mishaps also shifted discussions to the deficiencies in emergency exit provisions and non-adherence to associated protocol. A brand loses a good lot its good reputation in a crisis when its managers try it with uncharacteristic (uncharacteristic to the brand) approach hoping to settle it fine and quick and a brand loses the good chance to reinforce its brand values from a crisis by not taking charge of the situation admirably with the next steps. Volvo’s mistake was the later. Volvo failed to take control of the situation by working with a set of practical on the ground initiatives in the hunt of causes and also to evolve suitable safety assurance initiatives which could have included a review of the design aspects too.
A crisis continues to remain a blemish for a brand if not settled with convincing explanation. And with a product that is an innovation the inability to explain the negative aspects would only hurt the sales hard. Similar cases of fire on ‘nano’ which were left unexplained constrained its sales and severely it did since a set of other factors too contributed in causing the stiffness in sales. On puzzling issues that remain unexplained this quote in a comprehensive analysis of what restricted nano’s sales explains it all; “In the middle of the night, if there is sound in the house, unless it is known that it is the cat, or the rat the fear of ghost lurks”.
Maggi, one among the top consumer driven brands swiftly slid into an unexpected crisis and developed rapidly to become the mother of all crises. Maggi rolled it all quickly in becoming a comprehensive case study on crisis management, more clearly about how to avoid it, by the gross inappropriateness of its decisions. It tells of the risk in the kind of uncharacteristic disdain of early departmental notices and in ignoring to invest in settling such specific observations convincingly. It also tells of the huge risk in the inertia on product development in spite of lingering inherent issues and worse of being so influenced by the overwhelming success of the product. Maggi proves by the helplessness it has demonstrated, of the uselessness of the brand power when not leveraged to its true characteristics and potential in settling challenging situations. Maggi in fact hastened the edicts of many state governments by not taking the next steps quickly in taking good control of the brewing crisis which eventually also led to massive loss which surely could have been drastically cut with some applied thinking about ensuring some salvage.
Maggi could have averted the crisis if it had respected the early notices to it on the concern of excessive ‘lead’ and MSG by dealing proactively with the front line govt staff. As a responsible MNC Nestle should have respected the work of the govt department and demonstrated professional attitude in assuring elaborate process check at all its production units in keeping the situation under control and could have communicated with the consumers as well, right then, on the concerns and in depth on the efforts positively charging the brand. In fact the company should have considered the notice as providence and should have initiated special quality assurance programs at its factories with out wasting time and simultaneously recalling suspect packs from the market on its own upon appropriate sample lab checks. What is the use of labeling production batches if it doesn’t help in situations like this? Maggi brought up the crisis on its own by uncharacteristically talking of ‘your checks’ and ‘our checks’ and talking to the consumers through the social media asking them to continue to buy saying it is tested and proven safe - disregarding the opposing claims of the govt. It also tried to blame the supply chain for the excessive ‘lead’ and MSG again being uncharacteristically dismissive of its responsibility on the raw material checks.
Maggi invited the ban on its own by shirking away from its responsibilities and thus ceded the control of the situation to the govts. The second big mistake which is only consequential to not taking steps early to make selective recall through structured sample checks is to make the absolute recall from all stock points, on being compelled by the govt. The third and the biggest mistake is to stop the production and supplies. Instead of fighting the ban at the court the company should have reasoned hard with the govts on the needlessness of the ban on the production and supplies duly explaining the massive financial wreck it would unnecessarily cause and thus should have kept up the supply of Maggi, however lean and of course with stocks produced to the stipulations on the standards.
Nestle seems to have been thoroughly beset by the situation that it is hardly looking at options. The kind of speed with which decisions are being taken seems to be driving it all wrong. Burning up of about Rs 320 crore of edible material which is disqualified only for standard violation, and not all of it, surely doesn’t come across as the most fit option to deal with the banned stock, definitely not considering the pollution it would cause. Surely, the mountain of stock which is tested and approved fit for human consumption in certain other nations and also in some of the tests done here in India should be fit for feeding cattle and other animals, appropriately mixed or processed, for good and without any fear and very much so considering the much higher tolerance limits of large animals.
Uber the app driven taxi service invited the ban in India for disregarding its primary responsibility and arguing out its case in a manner that is quite uncharacteristic of an MNC, which attitude, as reported in the media, the company seems to have maintained as a common brand attribute in many cities it operates in across the world. Lessons from Uber for MNCs (and also other large companies) are two. One, an MNC can hardly thrive in a fast developing country without self evolved superior responsibility standards on its operations. Two, an MNC which wishes to run its business by a certain attitude in disregard to the rules and ethical beliefs of that country can hardly expect to survive in that country. It was appalling that Uber drove up its business in Delhi to a certain time and volume without even declaring its office address.
Uber’s argument of being a mere facilitator can in no way make it free from the absolute responsibility which is loudly implicit in its offer of providing car transport with the driver, legal arguments apart. By all professional standards Uber was expected to ensure driver behavior beyond ensuring their identity credentials for recruitment. To throw the ball at the police on the responsibility does not absolve Uber of its responsibilities in any way. From the ‘Uber case’ taxi service providers should know that competition strategies in the business need to be essentially and largely evolved around the good character and conduct of their drivers.
The common cause in all the above crises happens to be flawed action or practice all turned into a crisis by the efforts of the companies in defending them. The advice therefore on managing a brand crisis is; DON’T try to manage. Take complete charge by quickly taking the next steps.
The author is a management consultant.
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Social Beat wins SEO mandate of Tata CLiQ tag rss
The account was won after a multi-agency pitch
e4m e4m Social Beat has won the SEO mandate for Tata CLiQ, one of the fastest-growing omnichannel marketplace in India. Social Beat has been entrusted with optimizing existing content, as well as launching new, optimized category pages systematically on Tata CLiQ’s platform to scale monthly organic traffic by 2x over the next year. The account was won after a multi-agency pitch and will be serviced by Social Beat’s offices in Mumbai.
Shishir Kataria, Director - Marketing, Tata CLiQ, “Shoppers, e-commerce or otherwise, continue to heavily rely on search and discovery throughout their shopping journey, be it engaging with the latest fashion trends or hunting for the best buys. No wonder a platform's ability to be a part of this journey organically drives significant consideration for it amongst potential shoppers. We, at Tata Cliq, are confident that Social Beat will help us develop and optimise content that is highly discoverable to grow our engagement and revenue. Our goal continues to be to drive more and more shoppers to our platform with optimised and curated products and relevant content.”
Vikas Chawla, Co-Founder, Social Beat said, “We are thrilled to partner with Tata CLiQ in their growth journey. We aim to scale traffic to the Tata CLiQ platform manyfold over the next year. Our team of specialised SEO and Content strategists will be working closely to achieve this”
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Will OOH dazzle this festive season?
As the celebrations begin, experts tell us the trends and challenges for the OOH sector this season
Be it the flower-clad taxis in Mumbai for Made in Heaven Season 2 promotion or Zomato’s ‘kheer mangoge kheer denge’ billboards, India's OOH advertising sector has undergone substantial transformation and expansion in the recent years. Even though the medium was severely hit during the pandemic years, it has now managed to rebuild its status. Now, with the onset of the festive season, elections and the cricket world cup, OOH is expected to see more and more advertisers come on board.
Amarjeet Hudda, Chief Operating Officer, Laqshya Media Group, believes most of the clients spend a lot of money during the festive season, especially for Durga Puja, Dussehra and Diwali, targeting their customers in a festive mood. The categories that spend heavily during these months are Auto, Consumer Durables, Real Estate, Organised retail, and E-commerce.
According to Dipankar Sanyal of Platinum Outdoor, there was a huge surge in the festive season last year, and he expects the same this year too. “Last four to five years have turbulent for outdoor. It was picking up in 2019, but then Covid came and everything went flat for two years,” he mentioned.
According to EY-FICCI’s M&E Report 2023, OOH media grew 86 percent in 2022 to Rs 37 billion. The value includes traditional, transit and digital media, but excludes untracked unorganised OOH media such as wall paintings, billboards, ambient media, storefronts, proxy advertising.
Sharing the brand’s perspective, Shivam Ranjan, Head of Marketing, Motorola-APAC, said, “We are going into this festive season with a strong mix of media, including OOH. Within OOH, we are focusing on digital OOH, due to its capability of programmatic serving, measurability, and near real-time insights that allow us to be agile with the communication and optimisation of our campaigns.”
With urbanisation, improved infrastructure, rising consumerism and an increased spending power, clients' expectations from OOH advertising too have evolved. “The clients expect better ROI on every investment, best in class innovations, tech-led planning and execution. Today, technology plays an important role starting from planning the campaign, to measuring metrics to ROI,” Singh explained.
Another trend that Sanyal has observed is that traditionally advertisers looked at spending on OOH nearly two weeks prior to the festivities, but now, most advertisers have now started advertising a week earlier so that they can get maximum eyeballs. Additionally, the digital OOH advertising (DOOH) has also emerged big. The digital OOH screens increased to around 100,000 and contributed eight percent of total segment revenues.
“Now with digital, there is more space for advertisers to come in one frame. Because of this, you can see it is getting more attractive. The innovations too are coming in at a much lower cost and creating a greater impact,” shared Sanyal.
The only challenge with the medium, according to Ranjan, is OOH being a fragmented industry with lack of measurability and agility. This becomes a serious issue for ROI-centric brands. However, the growth of DOOH, which is dynamic, agile and measurable, is giving marketers the confidence to invest in the medium backed by relevant data and outcomes.
Adding to this, Hudda highlighted that availability of good media spots is the biggest challenge in this season as media assets are limited and demand is very high. Due to the gap in the festive season, many clients are not able to fully optimise their campaigns. Rather sometimes, clients are even compelled to divert their budget which adversely impacts the industry, he shared.
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Banking on positive consumer sentiment: BFSI optimistic on doubling festive AdEx : Cache
Some categories within the sector, however, may spend more in the quarter that follows the festive season
The BFSI sector is expecting a surge in demand for loan during the festive season and is looking at increasing its ad spends to cash in on the celebration spirit. Industry leaders say they are hopeful of witnessing a good growth in the number of applications for auto loan, home loan, credit card and health insurance during October, November and December due to positive consumer sentiment this year. However, though most of the BFSI players are planning to double their advertising budget this time compared to the previous year, there are some who are not investing too heavily on marketing during the festivals as they plan to save the money for the fourth quarter.
According to Shailendra Singh, MD & CEO, BOB Financial, they witness incremental growth every year during the October-December quarter, and they anticipate an increase in consumer spending as well as new enrolments for cards this year too. “There remains a surge in customer demand for credit during the festive season,” said Singh.
Singh shared that the company is fully geared up for the launch of #FestiveShoppingRewards on all Bank of Baroda credit card variants under the theme ‘Reimagine Festivities’. They would kickstart festive offerings with the start of Navratri.
The festive season does not just see the demand for credit go up, but there is an increase in applications for health and motor insurance too during this time of the year.
Aabhinna Suresh Khare, Chief Digital & Marketing Officer, BajajCapital Ltd, shared that among insurance products, health insurance and motor insurance reign supreme during festivals. According to Khare, the demand for mutual funds and SIPs too sees a hike.
“Overall, the festive season presents an opportune moment to secure insurance coverage. A plethora of attractive products and services are on offer, with financial institutions extending special discounts and promotions to entice new customers,” said Khare.
The company launched #BlessMeGanesha campaign during Ganesh Chaturthi. “Our goal for this festive season is not only to provide financial solutions but also to create memorable experiences and deepen the connection with our customers,” said Khare.
Though all major sectors spend heavily on advertising during the festive season, within the BFSI sector, some categories spend more in the quarter that follows the festive season.
Explaining the trend, Samir Sethi, Head of Brand Marketing, Policybazaar.com, said that the festive season has varying impacts on the BFSI sector. In the banking sector, for instance, the demand for loans surges as many individuals purchase items and undertake home renovations. Conversely, in the insurance category, the festive season doesn't result in significant changes. Instead, the insurance industry experiences its peak season after the festive period, particularly during the fourth quarter of the financial year.
“As the festive season approaches, there is a noticeable increase in car sales though, leading to a surge in the demand for motor insurance. Consequently, we see a significant uptick in the requests for motor insurance policies. During the festive period, there is an upswing in demand for various categories, such as electronics. However, in the insurance sector, this period doesn't significantly affect us, so we don't run specific campaigns targeting festivals. Nevertheless, we do roll out multiple campaigns throughout the year, and some of them may coincide with the festive season,” said Sethi.
According to the TAM AdEx report on BFSI sector across media for H1, the advertising volume of the sector grew on TV, radio and digital, but declined in the print medium. The report indicated that ad impressions on digital saw 91% rise during Jan-Jun '23 over Jan-Jun’22. The increase was 32% for radio and 4% for TV. The ad space of the BFSI sector decreased by 7% in print.
Speaking on media mix, Singh shared that BOB Financial has a good mix of customer segments belonging to Tier I, II and III. So, understanding their needs and preferred form of media channels, the company will reach out to them through relevant media promotions. “For the easy discovery of our offers, we shall have a dedicated offers page with regular promotion of top offers on our social media and other digital channels,” said Singh. Without disclosing the figure, Singh shared that the company’s promotion budget has surely increased from last year and it will be visible through their multi-channel promotional activities.
According to the TAM report, in the BFSI sector, life insurance is the leading category on TV and radio whereas mutual funds is the top category on digital.
Khare highlighted that in recent times, Bajaj Capital has observed a significant growth in audiences on online platforms and the changing preferences of their clientele. “This observation led us to recalibrate our marketing approach, placing a heightened emphasis on digital avenues,” said Khare.
He further added, “Our promotional efforts are primarily digital-focused, accentuating areas like social media engagement, search engine outreach, content-driven marketing, and targeted online advertising. As we approach the festive season, we've fine-tuned our online approach. By harnessing the insights from data analytics, we aim to grasp our clients' needs and inclinations better, ensuring our content is both tailored and pertinent.”
Khare also mentioned that Baja Capital has doubled its advertising budget compared to the previous year.
“This increase in our ad spend signifies our confidence in the opportunities this festive season presents. This impressive surge in our budget allocation underscores our dedication to maximizing the potential of this festive season and driving significant expansion within our business. We firmly believe that this increased investment in advertising will not only elevate our brand presence but also lead to an exceptional uptick in customer engagement and sales.”
For Policybazaar.com, the media strategy primarily involves a blend of television and digital platforms, an approach that has remained consistent in recent years and is expected to continue in the foreseeable future.
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OMD appoints Dileep Raj Singh as Head of Digital for APAC
Singh will report to Charlotte Lee, CEO of OMD APAC
OMD has added a Head of Digital (HOD) to its Asia Pacific (APAC) regional leadership team with the hiring of Dileep Raj Singh.
Singh is a digital native and brings with him a wealth of experience across product, media agency and client side in APAC, North America and the United Kingdom. His last 10 years have been spent building diverse digital marketing teams covering areas like performance marketing, digital media planning, ad/martech, product marketing, branding and measurement.
As HOD, he will accelerate OMD’s digital leadership agenda, rooted in helping clients address their business challenges and digital ambitions. He will be supporting OMD’s local teams in APAC on operational excellence, and digital transformation frameworks and roadmaps; and the development and implementation of our digital leadership agenda. He will also be working hand in hand with both our regional and global networks to initiate complementary workstreams for our clients in APAC.
“We will continue to invest and win in digital as part of our wider goal to be our clients’ most trusted business transformation partner,” said Charlotte Lee, CEO of OMD APAC.
“It is our global ambition to continue our leadership position in digital, data and technology. In line with this ambition, we are excited to have Singh come on board the OMD APAC leadership team. His background of agency, in-house and start-up experience position him perfectly to understand and address our clients’ business needs,” added Lee.
“Digital media and access to our audience, as we know it, is changing quite rapidly around us. This puts most of us in a delicate but remarkable position, a position from which we can shape and contribute to conversations about the next evolution of digital media. As we embark on this journey, I want to leverage the strength of the OMD network – people, technology, data, tools and platforms – to help our clients pivot and navigate through all the new and evolved possibilities in digital media. With this, I aim to position OMD as an unrivaled partner for our current and future clients; to dominate and succeed in this incredibly competitive and multifarious digital realm,” said Singh.
Singh will report to Lee, and work closely with the team including Chief Strategy Officer (CSO), David McCallen, and Chief Client Officer (CCO), Sadhan Mishra, to drive and support APAC local markets as well as regional clients on digital, data and technology needs.
Mishra was promoted to CCO of OMD APAC recently in June 2023. He will continue to be CEO of OMD Singapore, a position he was promoted into last August. Mishra has been with OMD for over 13 years and in his concurrent new role as CCO, he will focus on key client relationships, understanding their business needs and ensuring we remain a critical partner on their transformation journeys.
McCallen was elevated to the role of CSO of OMD APAC in April 2022, and was previously the CSO of OMD New Zealand for five years where he helped the agency to attain the top place in the market for new business, overall billings and award wins. Since starting in the APAC role, his focus has been on connecting and elevating strategic best practices across the region, building capabilities across a range of strategic outputs, and supporting new business growth both regionally and locally.
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Chandrayaan 3: Brands over the Moon
Some of the best moment marketing posts on India's crucial lunar mission
The nation is in a celebratory mood with its moon mission Chandrayaan 3 making its smooth landing on the lunar surface on the evening of August 23, 2023. The Pragyan rover is in pursuit of discovering water on the moon and is a vital feat for India's ambitious space research.
To celebrate this momentous episode in Indian space research history, netizens have taken to the internet to express their excitement, hopes and fears for the nation's lunar mission. Joining them are brands who have crafted creatives to mark the historic occasion and capture the emotions of the nation who have their eyes set on the moon. Here is our pick of some of the best Chandrayaan 3-moment marketing posts.
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BCCI rakes in Rs 4670 cr in Women's Premier League team auction: Jay Shah 26 Jan
WPL has broken the inaugural auction record of Men's IPL in 2008, tweeted Shah
As expected, Wednesday turned out to be another historic day in Indian women's cricket with BCCI having a windfall gain of Rs 4,600 crores by auctioning five team franchises for the first season, a higher sum compared to what men’s IPL franchises offered to the cricket body during the launch in 2008.
Adani, IndiaWin Sports, Royal Challengers, GSW- GMR cricket and Capri Global have won the bid, BCCI secretary Jay Shah tweeted.
Shah shared in a series of tweets, “Today is a historic day in cricket as the bidding for teams of inaugural #WPL broke the records of the inaugural Men's IPL in 2008! Congratulations to the winners as we garnered Rs.4669.99 Cr in total bid.”
“This marks the beginning of a revolution in women's cricket and paves the way for a transformative journey ahead not only for our women cricketers but for the entire sports fraternity. The #WPL would bring necessary reforms in women's cricket and would ensure an all-encompassing ecosystem that benefits each and every stakeholder.”
“The @BCCI has named the league - Women's Premier League (WPL). Let the journey begin…”
The country's top corporates had bid aggressively for the league. Over 16 groups including IPL franchise owners, Adani group, Torrent and Haldiram were believed to be in the fray.
Given the popularity of IPL in India, the event is touted to be a big draw for all stakeholders involved.
The BCCI was reportedly expecting ₹4,000 crore gain through team auction.
It’s noteworthy that Viacom18 has won the Women's IPL media rights for Rs 951 crore for the next five years creating euphoria around the league whose first season will be held in March.
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