Promis[ing] to
test meat for banned drugs, strength[ing] oversight of farmers and
encourag[ing] them to improve their technology. It said more than 1,000 small
producers used by its 25 poultry suppliers have been eliminated from its
network.
The success of the
strategy (along with some tasty chicken and a better economy) appears to have helped sales
bounce back 11% at KFC the past year, as reported by the BBC.
However, YUM is facing troubles again.
News has just broke about another scandal concerning the use of “expired”
chicken. What can YUM do to fix its
brand? One possible strategy was discussed
in a Forbes article by Avi Dan on the information age and brand loyalty:
Do well by
doing good: Marketing is
no longer an economic function alone, but a social force as well. Within
minutes of the Haiti earthquake, donations requested on Twitter started flowing
in via text messages in coordination with the phone company. Pepsi bypassed the
Super Bowl for the first time in 23 years, and instead of buying $3 million
spots in the game, announced on its Facebook page that it will donate $20
million to worthy causes. Social ideology increasingly reinforces brand
loyalty.
I don’t know if this strategy worked well for Pepsi,
but YUM may need some new ideas. Has this strategy worked well for other companies in dealing with a scandal? For sure, brand owners carefully manage their image. And, the
first mover advantage is helpful, but it relies on a strong brand and if the
brand fails (again), then what do you do to maintain a competitive advantage. .
. .
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