Can bailed-out brands recover from the stigma of bankruptcy and begging?
I believe as time passes on, people will forget and start fresh relationship with the Organizations. I still remember one of the Bank going for bankruptcy and later came out with a new Name, Logo and face with an effective Advertisement. This changed a lot. New Business started pouring in. Its a matter of Trust that needs to be re-built (though it might take a long time). Like in case of CITI BANK, even though they got a bailout, still people are banking with them and putting in their hard earned money. That's what we call Goodwill and Trust. They still believe in CITI and the potential its got. Some of them might continue to deal with the same Organizations but for limites services whether they feel comfortable with. Again it also matters how adaptable we are in today's world and I beleive we are.
Vineet Shukla, BA, Enzen - December 1, 2008
Some organizations will be remembered favorably, even after filing for chapter 11.It all depends on the circumstances, they may be viewed as victims of the current economy, not of bad management.Others, like GM, will not be excused.They have arrogant management, arrogant unions, and their products suck!Why even bother? its a doomed brand.
- December 1, 2008
Forgive and forget â€“ probably. Outrage, no. Who wouldn't want to be a customer or shareholder of a bankrupt-proof organization? Love 'em or hate 'em, your investment's safe.
Rob Hodgson, Design Director, Twin Fish Creative - December 1, 2008
To me it seems most folks don't really care about the significance of this bail-out. Instead they care that the economy is supposedly safe as a result. I think in the long run, this whole thing is a finger-pointing exercise, and when it's all shaken out, irresponsible corporations will not be held accountable for their failures. More importantly, will our economic freedoms survive? Will we come to assume the government has to help corporations out to keep the economy afloat? Will this become the norm? I tend to think this is the "slippery slope" effect, and precedents are being set that will affect our view of capitalism for a long time to come.
Tim Johnson, President, Brandwave - December 1, 2008
Yes, I think brands can survive and become stronger. Bankruptcies and bailouts are a PR problem, not a brand problem per se. Hence, solid, generous PR that is straightforward and honest about the problem will go a long way to repairing any breach of trust. (Brand managers at GM etc. can take a lesson from airlines' crisis management and over-communicate.) Management should coordinate with the PR team to go out of their way to correct the mistakes that were made -- and publicize those corrections. This will show that they are serious about reform. Management should get rid of their corporate jets, donate their 30" flat screen monitors to developers who will actually use them, etc. This will be good internal and external PR.A company can come out of a bailout stronger and with its brand in good standing if it makes the right moves.
Joel Gunz, Owner, Gunz Communications - December 1, 2008