Nike: Saving Brand Reputation When the Product ‘Explodes’

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One of the fastest ways to tarnish brand reputation is through a faulty product.

Just look at Nike’s standing in the public eye since the much-publicized ‘exploding’ shoe incidentOpens a new window  earlier this week when Duke University basketball forward Zion Williamson’s Nike sneaker ripped apart in a game, sidelining the college star with an injury.

In the days following the game, the sportswear giant’s stock value slid by $1.1 billion.

Unfortunately for Nike, the fiasco – which occurred during a live, prime time, television broadcast – represented a perfect storm of PR-crisis elements.

It didn’t help that Williamson is one of the hottest prospects – and possibly the hottest – in basketball, expected to be the NBA’s number one draft pick this summer. Not to mention, the shoe malfunction occurred in the first minute of a high-profile rivalry game against the University of North Carolina.

Then there’s the social media reaction. The ordeal blew up online, and users’ reactions were intensified as celebrities with large followings also threw their two cents into the debate – among them, President Barack Obama, who happened to be court-side.

This ordeal has risk consultants and PR agencies emphasizing the delicacy of the link between consumer expectations and quality assurance. As Mengqi Sun writes in the Wall Street Journal, this situation has “underscored how consumer perception of safety and quality can weigh heavily on a company’s reputation.”

Product issues aside, let’s use Nike’s misfortune as an opportunity to look at ways marketers can alleviate public concerns and try to save or repair a brand’s reputation in such circumstances. At a time when social media audiences expect near-instant accountability from companiesOpens a new window , it’s important to get the post-crisis reaction just right.

Have a crisis management plan in place

The first step is preventive. This shouldn’t happen when a PR crisis hits. Rather, it should be prepared well ahead by a marketing or PR team.

Developing an issue management and crisis communications plan is a must-have. Social media has amplified the potential damage to a brand’s reputation spinning from a PR scandal – negative comments and reactions spread like wildfire on these platforms, which is why ability to act quickly will enable a company or brand to gain control of the situation.

Having a strategy in place in advance for post-scandal brand repair will make it far easier to execute calmly and confidently. That’s precisely the image your organization should project at a time of confusion and panic.

Within that plan, there must be a social media strategy as well to deal with negativity.

Accept responsibility and apologize

If indeed your company has made a mistake, own up to it, and sincerely.

From a crisis management perspective, the first point of contact shouldn’t be your lawyers. It should be the executive running PR.

An insincere and evasive apology that shifts blame – as we’re used to seeing from politicians – does not sit well with consumers. As I’ve written in previous stories, deflecting blame will be perceived as evading responsibility.

Take a step back, really listen – and only then respond.

The key: Be both sincere and timely in the response. Show that you care and are taking steps to prevent the same mistake from repeating. This level of authenticity can generate significant public goodwill.

The plan should include round-the-clock monitoring of all online platforms where your business might be mentioned, and tactics for rapid response to any critical or negative postings.

Do something

An apology won’t be enough to ease public concerns. If your product has a problem, prove that steps are being taken to improve the product or prevent the problem from recurring.

Ultimately, the reaction must match the severity of the issue provoking the crisis.

When Johnson & Johnson’s best-selling Tylenol painkiller was sabotaged in 1982, killing seven people as a result of cyanide-laced capsules, the company was quick to recall 31 million bottles, costing millions of dollars at a time when product recalls were almost unheard of.

The decision to withdraw those bottles bought Johnson & Johnson a lot of goodwill as a business that prioritized consumer safety over profit. It also helped paint the company as another victim of the crime, shifting blame to the unknown culprit.

This type of measured reaction will go a long way to rebuilding public trust.

Distract

The first thing people do when a crisis occurs is to search for stories online about the brand or company at fault.

In order to counteract the overwhelming number of negative stories audiences will find on Google, marketers should push positive news:

  • Write and promote blogs highlighting positive news about your company, either about the company itself, its products, or social causes it supports;
  • Update your company’s social media profiles, focusing on positive actions and qualities.
  • Run low-profile campaigns – you don’t want it to appear that the crisis itself is not the number one focus for your company – encouraging loyal customers to create user-generated-contentOpens a new window on social media that shows them using your product.

As digital marketing expert Chuck Price puts it, this strategy is an exercise in “displacing negative content and promoting positive news.”

Monitor public sentiment

You need to know what people are saying about your brand in the wake of a PR crisis.

Marketers should monitor sentiment on social media in order to act quickly and decisively to answer the main concerns and criticisms spreading online. Fortunately, instead of having to read the thousands of social media posts people write, there’s AI-powered tech that can helpOpens a new window .

Although brands need to be careful how they engage online audiences after a scandal, social media provides a more raw, less polished platform to relate to consumers, so be aware of how people are feeling so that you can respond appropriately.  in the interest of responding appropriately.