openness, clarity and simplicity among
other things.
Additionally, the company also said they
will now use a female voice instead of
a male voice to present the brand eg. at
trade shows. The female voice will inject
a ‘warm, pleasant and confident’ outlook.
Interesting! After all the challenges the
brand has experienced, VW is still one of
the world’s leading car manufacturers, with
an increased index score on quality, value
and even reputation since the scandal.
The company’s sales have also grown, and
VW is now ranked the second largest
car manufacturer globally, commanding
7.38% industry market share.
Nike. Many stories can be told about this
brand. Collin Kaepernick’s Nike Dream
Crazy commercial recently scooped an
Emmy Award for the most outstanding
commercial after winning the Outdoor
Grand Prix at the Cannes earlier this
year. This ad which caused a controversy
helped highlight racial injustices faced by
African-Americans and delivered tangible
results for the company. Nike reported a
31% increase in sales compared to a 17%
It would be almost
safe to assume that
consumers do not
know what they
want, or it would
suffice to say that
they lush out at
brands they love
when these brands
embarrass them. It
would be difficult
for any market-
er to explain how
the bank account
grows after a cri-
sis, but this would
be the exact im-
portance of under-
standing the need
for brand saliency.
08 MAL32/19 ISSUE
Nike also came into the spotlight recently
over its corporate culture. While Nike has
identified women as one of its four main
growth opportunities, it has been criticized
for gender inequality at the workplace in
terms of pay, support for pregnant wom-
en and opportunity. It would be beneficial
to note that the brand has not been dent-
ed in the pocket because of these claims. If
anything, the growth recorded for women’s
sport wear is growing by the day.
increase the previous year during the same
period. The whole world had anticipated a
decrease in sales for Nike and loss of brand
love but instead, the opposite happened.
Nike also came into the spotlight recently
over its corporate culture. While Nike has
identified women as one of its four main
growth opportunities, it has been criticized
for gender inequality at the workplace in
terms of pay, support for pregnant women
and opportunity. It would be beneficial to
note that the brand has not been dented
in the pocket because of these claims. If
anything, the growth recorded for women’s
sport wear is growing by the day.
Nike has however learnt a few lessons. It
now celebrates female athletes more than
ever in key verbal and written declarations
issued by the company. This increased
stand point about women could be true
but could also be an exercise to blind the
public, but the main thing happening is
that there is more money in the bank.
It is difficult to really understand the
mind of the consumer in these situations
with Cadbury, Nike and VW. It would
be almost safe to assume that consumers
do not know what they want, or it would
suffice to say that they lush out at brands
they love when these brands embarrass
them. It would be difficult for any marketer
to explain how the bank account grows
after a crisis, but this would be the exact
importance of understanding the need for
brand saliency.
These brands have apologized to their
customers, put tangible measures in place
to correct their mistakes and improved
things. VW for example let go of most of
its executive team, and Nike has responded
to its law suits, given employees pay rises
and taken steps to improve female comfort
in the workplace.
Customers are faced with enough bad
news everyday and many companies are
guilty of cheat sheets every now and
then. Customers like the reassurance that
they will be comfortable with a product
they purchase and will get the value they
expect from that same product even when
the company has made a bad marketing
decision.
It is difficult to change a customer’s
purchase habits. Many times, I have gone
shopping and bought dishwashing soap
that is hard as a stone and does not lather,
only for me to get home and realize that
I had promised not to buy that product
again. Sooner than later, the company will
correct that error and the next time I buy
it, it will be soft and will lather.
Big companies are on this roller coaster all
the time. Costs of operation will change
consistently, base products will change,
ingredients will change to the ‘more
improved’ type and all these may affect the
product. At the end of the day, they may
offer a better product all together.
The same is true of brands that align
themselves with risky social causes.
Customers may view these campaigns with
emotion and anger but only for a period of
time. This may also be caused by the social
proof theory. Social proof causes people
to put on group mindset because they are
not sure how to react to a certain situation.
They therefore look for people to imitate
and provide guidance for the appropriate
reaction in this situation. During a crisis,
brands can use social proof to quickly get
themselves out of a sticky situation. Nike
knows this only too well.