Brands Index
The Globes brand index ranks the leading brands in Israel. This year, the measurement method has been changed and is more transparent, objective and accessible. The brands were rated in a huge survey that included 3,500 participants. The index also includes content content on marketing from HBR, Harvard’s management magazine, studies by the best researchers in the Faculty of Management at Tel Aviv University, columns by senior executives in the economy on the marketing moves that inspired them, and in-depth analyzes and insights on the ranking results.
“Never waste a good crisis,” Winston Churchill once said. In anticipation of NBA star Steph Kerry’s record breaking, Under Armor was about to launch “Curry 9”, a special shoe edition to mark the occasion. But transportation problems, due to the global shipping crisis, disrupted the plan.
The sports brand faced a major crisis and found a creative solution with the help of Matevers technology. The company has created a virtual shoe (a type of NFT) that can only be purchased at Towers. Unlike other virtual perks that can only be used on one platform, the company closed with four different game platforms so gamers could move between worlds with their shoes on their avatar feet and with each game game the shoe behaves differently (glows in one world, doubles score in another world and so on). This is a great example of a crisis in the physical world that has been resolved in the digital world, created a completely different experience and a new profit model for the company. Moreover – the company received points as innovative and advanced.
Crises are an integral part of our business reality, but as technology evolves and brings with it lines, so does the doctrine of crisis management change. Ender Armor’s example illustrates this well.
But in times of crisis, companies may lose their temper. The familiar environment is undermined, and the confidence that characterizes veteran executives may be replaced by paralyzing panic. Therefore, it is better for each company to have a contingency plan for a time of crisis, a crisis procedure that is written routinely. While in a few cases a crisis is completely “the end of the world”, most crises can be resolved through proper management and can even serve as an opportunity for improvement, creativity and innovation.
The first and most important step to this is immediate notification and acknowledgment of malfunction, transparency and liability. Strategist Richard Shutton talks about an interesting phenomenon called the Pratfall Effect. This theory holds that acknowledging weakness is a reliable testament to honesty and credibility and as such, it creates a positive attitude towards the brand. The second step, taking immediate action to rectify the situation – is also critical. It has the power to minimize damage, improve the profit curve and raise sympathy for the company and the brand. The third step in crisis management is rebuilding the brand. Once the lessons have been learned, it will be possible to engage in improving the image and creating renewed sympathy. There are endless examples of companies that deal with crises in different ways, influenced by the nature of the company, the target audiences of the brand, the regulation of the market, and of course the depth and complexity of the crisis.
The more transparent and respectful the company is on a regular basis, and the more the brand is perceived as valuable to its consumers on a social level, the easier it will be for the company to empathize with its consumers and turn a crisis into an opportunity.
Another example: After Tres Cruces Beer distributed 300,000 cans of a new edition, it noticed that a letter had fallen out of print. Instead of recalling, the company acknowledged the malfunction, initiated a special campaign and urged consumers to look for the “damaged” cans, enter the barcode to a designated site and win prizes. Thus a manufacturing defect became an opportunity for an experiential operation.
Note: 3 concluding insights
1. The global shipping crisis has disrupted Ender Armor’s plan to launch a new sneaker ahead of breaking Steph Curry’s NBA record
2. The creative solution they found in the company is the launch of an intriguing and innovative Matevers version of the shoe. This is an example of how crises are an integral part of our business reality. As technology evolves and brings with it in the ranks, so too does the Torah for crisis management change
3. The lesson I learned from the NBA champion: A losing team does not always replace