Branding in times of crisis

Crises - besides everything else - have a nasty habit of taking over our lives and businesses. Everything else pales in comparison. And while this is understandable ("Apart from this, how did you enjoy the play, Mrs Lincoln?"), sometimes it pays to keep an eye on everything else that is going on - it may even help us weather the storm.

Take the current banking crisis. Banking is mainly built on trust - I trust that my money is still there, and that it's safe. Building this trust is hard - it takes time, track record and of course good branding. If I trust the financial brand I am more likely not to run and take my money out, sell my stocks, cancel my insurance and thus make the problem even bigger. Are the big brands immune? Of course not - most of the players in the news have invested millions in building up their brand over many decades. But it is those that have a reputation for prudence and transparency that fare better. And the brands that have been advocating caution, like Suze Orman, thrive.

And how about the China milk scandal? I find it surprising (and slightly alarming) how many global brands are using milk from China - from M&Ms to Snickers to Oreos. This crisis is still far from over, but my prediction is that the global brands affected by this scandal will do much better than smaller local brands, since they have built up some trust over time. And it will be imperative for them to be completely transparent in their actions in order to reassure the public.

Brands can not prevent disasters, and there is no insurance against crisis. But, when managed openly and responsibly, they can lessen the impact and fast-track the road to recovery.

Jorg