05 mistakes that lead to Brand Communication Crisis

What is a Media Crisis? 

A Media Crisis is a situation when an organization, business or individual encounters an unexpected incident that seriously affects their image, reputation or brand in the eyes of the public, partners, or customers through the media. In a Media Crisis , bad information spreads quickly through media channels such as newspapers and social networks, causing a major negative impact on public trust. If not handled promptly and properly, a crisis can have long-term consequences for the organization's reputation and image.

Media Crisis is a problem that no brand wants to encounter. However, not all brands know how to limit this situation and handle and fix their brand image when a crisis occurs. In this article, Novaadwork will warn about mistakes that lead to Brand Media Crisis. 

Warning 05 mistakes leading to Brand Communication Crisis

05 mistakes that lead to Brand Communication Crisis

05 mistakes that lead to Brand Communication Crisis

05 mistakes that lead to Brand Communication Crisis

A Brand Communication Crisis can negatively impact your brand image, business performance, and reduce customer trust and confidence in your brand. Many brands have been caught up in media crises due to unnecessary mistakes. Here are some of the mistakes brands made that led to Brand Communication Crisis that businesses can learn from.

Media Crisis Due to Poor Product Quality

Products and services are what customers have high expectations for when they come to a brand. Poor product quality can cause strong negative opinions when customers spread the word, post pictures and videos on media channels, social networks, and share negative experiences when using the service. The information spreads quickly, pushing the brand into a serious crisis, leaving a bad impression in the eyes of old and new customers.

In 2016, Samsung faced one of the biggest Brand Communications Crisis in the company’s history when the Samsung Galaxy Note 7 phone had battery problems that led to many devices catching fire or exploding. Although Samsung issued a recall, the first recall did not completely resolve the problem. This led to the product continuing to cause problems, forcing Samsung to stop production and recall all Note 7s worldwide.

Samsung Galaxy Note 7 in crisis due to battery failure

The result was a serious blow to Samsung ’s reputation , a drop in its stock price, and billions of dollars in compensation. This is a lesson for Samsung ’s mistakes in not being careful in manufacturing and working with third-party factories, affecting product quality and consumer experience.

Media Crisis Due to Lack of Social Responsibility 

Many businesses fail to comply with ethical business standards, human rights and the environment, and the law, which can lead to backlash from the public and social organizations. This has long-term consequences for the brand image, when it is exposed to negative criticism, or even accusations from customers.

In 2018, Johnson & Johnson – a famous pharmaceutical company in the US – faced a serious crisis when many lawsuits alleged that its baby powder products contained carcinogens. Customers claimed that J&J had covered up the possible cancer risks from using the company's baby powder. Major newspapers Reuters and the New York Times also conducted investigations and showed that this pharmaceutical brand was also concerned about the ingredients in the product, but the company tried to keep this information secret from the public. Although the company continuously denied the allegations, some courts in the US ruled in favor of the plaintiffs and required Johnson & Johnson to pay millions of dollars in compensation.

J&J Baby Powder Faces Serious Media Crisis

This incident severely damaged consumer trust, especially when it came to children. Johnson & Johnson faced a long-running PR crisis and was forced to discontinue some of its baby powder products in the US and Canada.

Poor pricing strategies can cause negative reactions from customers. Brands that overcharge for the quality of their products, or suddenly increase prices without providing adequate value, can make customers feel cheated, leading to a backlash in the media.

Vinamilk is the largest milk brand in Vietnam, however in 2013, this brand encountered a Media Crisis when milk prices continuously increased. Dielac milk products and some formula milk products of Vinamilk received strong reactions from consumers because the prices increased too quickly compared to the income of Vietnamese families, while many people thought that the quality had not improved significantly.

The incident prompted the government to step in and impose price controls on milk to avoid price inflation in the dairy industry. This is a classic example of how product prices are not aligned with consumer perceived value, leading to public discontent and strong reactions.

A company's leadership can seriously damage its brand if it makes inappropriate or insensitive public statements. Inappropriate statements can cause public outrage and lead to boycotts.

In 2015, Tan Hiep Phat Group faced a major media crisis when a customer discovered a foreign object in a bottle of Number 1 soft drink . The incident became more serious when the consumer who discovered the foreign object was arrested for threatening to blackmail the company. This event caused fierce controversy over Tan Hiep Phat's responsibility in ensuring product quality. Mr. Tran Qui Thanh, Chairman of Tan Hiep Phat, made statements that were considered insensitive when he did not focus on solving the product quality problem but criticized customers.

This caused public opinion to turn against Tan Hiep Phat , and the company faced a strong wave of boycotts across the country. After the incident, Tan Hiep Phat had to spend a lot of time and effort to restore its brand image, but it still left a lasting negative impression.

An ill-conceived marketing campaign that fails to consider the social, cultural, or political impact can lead to a Brand Communications Crisis. This is especially serious if the campaign offends or misleads a certain group of people in society.

In 2017, personal care brand Dove caused a media meltdown when it released a Facebook ad in which a black woman takes off her shirt and “transforms” into a white woman. Many criticized the ad as racist, implying that white skin is cleaner and superior to black skin.

Dove Criticized for Racist Communications Strategy

After receiving a wave of criticism from the public, Dove was forced to quickly apologize and remove the ad. However, this event significantly damaged Dove 's brand image , especially in the context of sensitive issues of race and social equality.

The above mistakes of the brand can quickly lead to a Media Crisis if not detected and handled promptly. To avoid these crises, brands need to pay attention to the quality of products, services, marketing strategies and corporate governance, and always be ready to respond quickly and transparently when a crisis occurs. SEFA Media, with more than 9 years of experience in the field of Brand Strategy Consulting , will accompany businesses in communication campaigns, marketing activities, product development, helping to increase revenue growth and create a position in the market.

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