Let’s take a look at what happened to some brands that have endured a crisis.
BRITISH PETROLEUM (BP)
British Petroleum re-branded itself as BP as it spread throughout the world. They played off the initials by saying “BP” stood for “Beyond Petroleum.” After, the debacle in the Gulf of Mexico the stock lost almost 50% of its value.
Expected Response: Best estimate is they may re-brand back to Amoco, which they bought in the US and rebranded to BP.
AIG is portrayed as one of the key actors in the financial crisis. Whether you believe it to be true or not, the stock became almost worthless. Today, the Federal Government owns much of the company. Many of the underlying insurance companies were sound but faced poor prospects because of the parent corporation’s troubles.
Response: They re-branded as Chartis to get away from the negative publicity.
Worldcom’s leaders were indicted for their misbehavior and that of their company. Like AIG their core units were successful but were tarred by the corporate company’s challenges.
Response: Worldcom bought MCI as it bulked up. MCI was re-branded as Worldcom along the way. The brand equity was still high with the name MCI. Therefore, Worldcom re-branded as MCI. Ultimately, Verizon bought the company.
Your brand is essential to the health of your company. How your prospective customers view you is encapsulated in how they view your brand.
Those are my ideas. What do you think? Please comment below.
- Do you have someone who is your brand steward?
- Have you modified your brand in the last few years?
- Do you feel that brands are more important, less important or the same level of importance as they were five years ago?