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Betting Against the Brand
17th May 2010
As one who passionately builds brands for a living, it saddens me when I am forced to bear witness to the downward spiral of a once-strong brand. The recent troubles faced by Tylenol and other huge brands from McNeil Consumer Healthcare bear witness to the fact that, while the identity of a brand can help bring a product to the heights of popularity, that same identity, when linked to negative events, can bring the product crashing down in the minds of consumers.
Tylenol has a long history of bumps in the road, starting with drug-tampering problems back in 1982, which resulted in the brand being held up as an example of what to do when disaster strikes your product. Take responsibility. Take Action. Don’t make excuses.
The public was reassured by how the Tylenol scare was handled and sales eventually returned to the brand. Tylenol came to mean a trusted and safe product once again. And in a market with unimaginable generic competition, that trust went a long way toward making consumers feel like the branded choice was the right choice.
More recent troubles, however, cannot be blamed on nameless and faceless culprits who are threatening the safety of the American public. This time the responsibility for manufacturing irregularities fall solidly in the lap of McNeil. There is no denying that they must take responsibility, there is nowhere else to put it. But the public is not so quick to forgive this time.
Part of the difference is that this time McNeil is truly to blame for the issue. And the other part of the difference comes from how the world has changed in those intervening 28 years. In the world of 1982, the news of the recall and corrective action came through formal channels and gossip about the problem was contained within neighborhoods. In the world of 2010, news of the recall hit Twitter and Facebook long before it made the front pages of the newspaper or local news broadcasts. Along with the immediacy of informing the public, McNeil was unable to control the message, and unprepared to deal with the fallout. Their customer service resources were inadequate, their recall website not up to date, their response times were not up to snuff.
So now, in addition to being worried about the threat that recalled medications might hold for their families, people are angry that McNeil isn’t managing the situation as well as they could. The brand is breaking.
As the process of restocking medicine cabinets with generic versions of McNeil’s recalled drugs is documented in minute detail via social media networks, more and more people see that generics offer safe, cost-effective alternatives to the branded drugs. The more social proof that consumers see that the generics are just as effective, the more likely they will be to continue to eschew the branded products. There is no upside of going back to Tylenol or Benedryl. Those names are tainted with both the manufacturing issues (real or imagined, it makes no difference) and the customer service disappointments.
The bar for what consumers expect from a generic drug is much lower. Does it work? Does it cost less than the branded product? Is it safe? Customer service and advertising and image don’t enter into the equation for these purposes.
By dropping the ball so many times, McNeil is training consumers to be satisfied with a less impressive package. It will be interesting to see if they are able to resolve and recover from this current crisis situation. As surprised as I am to say this, my bets in this case are against the brand.
You Want Me to Drink What?
01st May 2010
I am admittedly not the trendiest girl around. I don’t have designer shoes or a luxury car or get my hair blown out. Actually, where I live getting your hair blown out means you drove with a window open, but I don’t do that much either. The NYC crowd would have a field day with how un-cool I am with my suburban clothes and addiction to Dunkin’ Donuts iced coffee. I am about as mainstream as they come, and for this I am generally unapologetic. It’s who I am and I’m OK with that.
Although un-hip, I am quite interested in doing things to keep myself and my family healthy. I try mightily to get my children to willingly eat vegetables. I don’t cook red meat. I choose fresh ingredients rather than food-in-a-box whenever possible. I am embarking on an experiment to be a vegetarian, and I recently gave up caffeine for a month. I am willing to try new things – within reason.
There was a recent article in the New York Times about the popularity of a fermented tea drink called kombucha. Apparently this tea can do all kinds of magical things like re-growing hair, calming digestive issues and curing hangovers. Those who drink it claim that it is quite delish. Sounds good, right? I’m in! I could be the first one in the suburbs to partake of this delightful elixir! How do I get it?
This is where things get a little hairy for me. Because kombucha is made by immersing a disk of bacteria into brewed tea and letting it sit, unrefrigerated, for up to two weeks.
A disk of bacteria.
In your tea.
On purpose.
I am so not down with that.
I understand the benefits of probiotics. I eat yogurt (from the refrigerator, thank you very much). But, I have to admit that I wouldn’t even drink the plain tea if it sat out for two weeks – and the introduction of the bacteria disk into the equation does nothing to improve the situation for me.
I suppose the nature of kombucha is essentially similar to beer. Fermented substances in a drink are not that uncommon. And yet, I can’t quite get my head around voluntarily introducing bacteria into a completely acceptable drink like tea. I guess I don’t brew my own beer either, although I do enjoy drinking it.
There are packaged versions of kombucha available, including one made by Red Bull. I am slightly more comfortable with the manufactured versions, mostly because I work under the assumption that beverage manufacturers are as terrified of being sued as I am of dying of kombucha poisoning.
I am a big sucker for slick marketing and putting anything, even something utterly disgusting, in a pretty bottle and giving it a fun name goes a long way to drawing my interest. If I actually went out and purchased a Carpe Diem Kombucha, it would be an ultimate marking success for them.
Ooooo…pretty bottle….fancy name…who cares what’s in it? I must have it!
I want to be cool and brave enough to jump on this bandwagon and give kombucha a try. But the reality is that it’s probably beyond my capabilities to be that cool and brave. And the Dunkin’ Donuts coffee is working just fine for me, thanks!
It’s not the Firm Handshake, It’s the Warm Handshake
28th October 2008
by Ruth Folger Weiss
Add this to your “it’s nice to know” file:
Physical warmth impacts on how we view other people and, creates a causal scenario where we then treat the other person in a warm or cold fashion.
To ascertain how temperature affects emotions, Lawrence Williams, PhD, assistant professor at the University of Colorado at Boulder, and John A. Bargh, PhD, professor of psychology at Yale University conducted a study on undergraduates.
Students were casually asked to hold a tester’s cup of coffee for a moment prior to entering a room; half the participants were asked to hold a cup of warm coffee and half were asked to hold a cup of iced coffee.
The students were subsequently given a portfolio of information on an unknown person described with words like intelligent, skillful, industrious, practical, and cautious. They were then asked to respond to a questionnaire evaluating the person’s personality. Interestingly, those who had held the warm coffee were much more likely to score the “person in question” as warmer than those who had held the iced coffee.
“It appears that the effect of physical temperature is not just on how we see others, it affects our own behavior as well,” Bargh says. “Physical warmth can make us see others as warmer people, but also cause us to be warmer — more generous and trusting .”
In the boardroom and in your social life, never underestimate the importance of an outreached hand, especially when it’s a warm one!