Business

How to Navigate a PR Crisis: Lessons from Recent Brand Scandals

PR crises can be devastating. The wrong response can mean the difference between a company bouncing back stronger or watching its reputation fall apart. Big brands know this well, and their recent stumbles offer valuable lessons for businesses of all sizes. Let’s break down what went wrong, what they did right, and how small businesses can protect their reputation when a storm hits.

Lessons from Bud Light’s 2023 Controversy

Bud Light faced a PR nightmare in 2023 after a marketing campaign that featured a partnership with transgender influencer Dylan Mulvaney. The move was meant to show inclusivity but quickly divided audiences. Social media erupted, and soon there were calls for boycotts. The company’s response was slow and seemed unsure of its direction. In just a few weeks, Bud Light’s parent company, Anheuser-Busch, saw its sales dip significantly, with some reports suggesting a drop of over 20%.

What Went Wrong

Bud Light’s main issue was not the initial partnership, but the way it managed the backlash. The company’s slow response and vague statements made it seem as if they were caught off guard. They struggled to stand firm in their messaging, and consumers noticed. Brands need to show they are confident and prepared, even when things get rough.

Lesson for Small Businesses

If your small business finds itself in a PR crisis, own the narrative. Don’t wait too long to respond or appear indecisive. You don’t need to have all the answers right away, but acknowledging the situation, showing empathy, and promising a timely update can go a long way.

The Fallout of Papa John’s Racist Comments

Back in 2018, Papa John’s founder John Schnatter was recorded making racist remarks during a conference call. The fallout was severe. Shares dropped by 5%, Schnatter resigned, and the company’s sales took a hit. It took years and multiple image overhauls for Papa John’s to start recovering. The company had to distance itself from its founder and invest heavily in rebuilding trust.

What Worked and What Didn’t

Papa John’s did one thing right: they took swift action. Schnatter was removed from his position, and the company made an effort to show that they were serious about change. But the damage was already done, and the lack of a clear, coordinated response right away meant the scandal stuck in the public’s mind for too long.

Key Takeaway

Small businesses need to act fast in addressing problems and be clear about their stance. If an individual tied to your company becomes a liability, it’s crucial to show that the business’s values come first. Align your actions with your words—whether that means letting someone go or implementing new policies.

Dior’s Cultural Appropriation Controversy

In 2021, Dior launched an ad campaign for a perfume that featured Native American imagery. Critics accused the brand of cultural appropriation and insensitivity. The backlash was intense, with calls for boycotts and widespread criticism. Although Dior released a statement to clarify their intentions, it fell flat as many viewed it as an afterthought rather than a proactive move.

What Can Be Learned

Dior’s mistake was not considering the cultural impact before launching the campaign. Their response also came off as reactive rather than sincere. When dealing with cultural topics, sensitivity and research are vital.

Advice for Small Businesses

Understand the context of your marketing strategies. If your campaigns touch on cultural themes, take extra time to research and consult with experts. An informed approach can save you from unintended backlash. If you do make a misstep, a sincere and thoughtful apology is non-negotiable.

How to Prepare for a PR Crisis

Have a Plan

Statistics show that 59% of companies experience at least one crisis every five years, and yet, many don’t have a plan in place. Small businesses should take note. A crisis management plan includes a list of possible scenarios, prepared responses, and key people who should be involved. Having a roadmap can save precious time and show that your business is proactive, not reactive.

Respond Quickly and Authentically

In the age of social media, information spreads fast. Companies that respond within the first 24 hours are more likely to control the narrative. Make your response human. Avoid robotic, corporate language that makes you sound disconnected from the situation.

For example, erase.com provides clear, actionable advice for managing online reputations during crises. Their approach focuses on transparency and smart strategies to regain public trust. Taking a page out of their book can help your small business build a response plan that feels genuine and trustworthy.

Stick to Your Values

Your brand values should guide your response. If you’ve built a brand on community support and open communication, your reaction during a crisis should reflect that. People can spot insincerity from a mile away, so don’t say what you think will just make the problem go away. Say what aligns with your company’s core values and show that you mean it through your actions.

Be Open to Feedback

Use the crisis as an opportunity to learn. Ask for feedback from your customers, staff, and even industry peers. This not only helps you repair your image but can lead to lasting improvements. According to data, businesses that actively seek feedback during or after a crisis see up to a 10% increase in customer loyalty post-recovery.

Use Social Media Wisely

In times of crisis, social media can be your friend or your enemy. A simple post can either help clarify your stance or add fuel to the fire. Choose your words carefully and keep your updates consistent across all platforms.

Engage, Don’t Hide

If people are commenting and asking questions, engage with them. Ignoring the conversation can make your brand seem disconnected and uninterested. Even a simple “We hear you and we’re working on it” can reassure your audience that you’re aware and taking action.

Final Thoughts

PR crises happen to the best of us. From Bud Light’s tone-deaf responses to Dior’s culturally insensitive campaigns, the lessons are clear. Be prepared, respond quickly, stay authentic, and learn from your mistakes. Small businesses that prioritize transparency, take swift action, and genuinely engage with their community can weather the storm and come out stronger on the other side.

Related Articles

Leave a Reply

Back to top button