How does Brand Reputation Management work under Complex situations
How
does Brand Reputation Management work during
Complex situations
( This blog is part of #Brandhorizon business talks
– Leading the present, Shaping the future at
http://www.brandhorizon.net/blog)
Brand reputation management assumes complexity atleast under
three situations
-
Mergers and Acquisitions
-
Multi-channel online presence
-
Managing Stakeholder equations – other than with
customers
Merger/Acquisitions :
There are any number of instances where partnerships
between 2 entities have not taken off, if not failed , post an M&A. One of
the most common reasons for this would be lack of a proactive brand reputation
management effort from the merged entity .When 2 entities merge, business is anything but “as Usual” . What therefore
needs attention -
· Define and develop a robust and well strategised brand
architecture well in advance , as the 2 entities could both have multiple product
brands and/or corporate Brands as well. The better defined the
brand architecture strategy, the more likely to effectively leverage the
combined brand assets and less likely that there will be dilution in desired brand
value Here Corporate branding and product branding both play key roles. Procter and Gamble is a great example of a
powerful Company Brand but with multiple product brands organic and acquired.
This architecture makes it easy to merge in new product brands. Another
example of how Merged Brands have been well articulated are the Tata brands
having combination of Corporate and Product Brands as in Tata motors ,Tata Tetley
,Tata Steel, Tata Salt ,Tata Sky and multiple other products and product
groups.
· Systems and Processes
should be merged through effective transition to the desired brand image.There
has to be a conscious effort to leverage on the strengths of both entities and
more importantly let go some of the not
so good practices of the previous individual entity culture. For this to happen would involve Strategic
vision, a Customer Centric approach , extensive Internal branding with a drive
to erase old practices.
·
Organisations need to identify brand champions from both the
entities who are open minded and flexible
to changes otherwise the new company risks losing its customers if
management is perceived as indifferent and impervious to customer needs. High level
of maturity to put personal branding and job security behind desired brand
image is essential to qualify them as brand champions who should own and
implement the post-integration milestones
step by step. They also need to be attuned to the target company's branding expectations
and customer base.
· Customer’s perceptions and expectations may have been
different in both the entities and to transition into a merged perception would sometimes need a step by step phased
out strategy depending on the desired brand architecture. Afterall, brand
reputation is a matter of perception and
perception management needs unique skills and diverse cross functional
experience to be able to appreciate the other side of the tables. Cultural fit
management with customers is also a challenge bcoz perceptions to a large
extent are emotion driven. So , brand-as-a-persona approach is needed besides brand
as an organization approach .For this Internal training of the distribution
channels becomes an important factor in
order to build confidence with customers that the new organization will be able
to provide a customer experience atleast as good as the individual entities provided earlier .What
can make things even more complex is when acquired Company brand is more
powerful than acquiring Company brand !
Multi
– Channel Online presence.
Social media is a powerful tool to create
a viral marketing platform for brands through positive brand feedback and build
Online brand reputation. Needless to mention , it is also a rather convenient platform for
disgruntled customers to voice frustrations that can put a brand’s reputation at great risk What therefore needs attention -
· Brand
Communication Channels should be carefully picked to target the correct consumer segment
otherwise the cost of managing online presence will be nonvalue added and more
susceptible to risk that can be done without.
That done, brand communication
has to be consistent across every online channel in order to build credibility as a trusted and
preferred supplier . These channels should
be effectively used to engage with customers and respond quickly both for
positive and negative feedback. We talked in an
earlier
article about how Fedex reacted most appropriately to a negative video on
Social media. Domino’s on the other hand is said to have taken too long to
react to a negative comment by which time lot of damage had already been done
on Social media.
·
Use
Media monitoring tools to analyse perceptions ,preferences and loyalty factors
and work brand strategy around that in order to strengthen brand reputation and
stay ahead in the competitive landscape
Managing
Stakeholder equations – other than with customers :
Any
brand would have to have multiple associations across stakeholders other than
just the customers. The way these
relationships are managed define the brand’s reputation to a large extent ,even
with the customers for that matter . Today, Corporate Governance and Corporate
Social responsibility play significant roles in a Business’ Brand reputation
Management. What therefore needs attention –
· Adequate
attention should be paid to Ethicals standards of Board performance , Commitment
to Environment,Health and Safety and also Corporate social responsibility .
These are important indicators of a Brand’s reputation and Brands can illafford
to allow these factors to get second
priority over Business . In fact these are important criteria that build a long
term sustainable Brand value in the perceptions of Stakeholders
·
Budgets
for EHS and CSR should not be compromised even though customers may not be
ready to pay higher prices for these
investments in a short term.
However, it is an intangible investment whose results will start to repay
benefits of Brand equity in the long
term.
· One
other important brand reputation driver for every organization is outgoing
employees They can be one of the most effective ambassadors for the brand and
hence organizations should treat them well, not just when they are around but
also when they choose to exit . Collectively, they could even influence
potential partnerships.
At
Brandhorizon, we can help you enhance your Brand Reputation – Online and
Offline - and strengthen your brands to a sutainable level. #Brandhorizon is an International Brand
and Marketing Consultancy firm that offers
- Brand Consulting services customized to your market dynamics and budget
- Strategic
Content Marketing
- Metrics Management for your Brand Investments