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The week national apologies made the high street brands look like turkeys

Posted in Marketing March 9th, 2007 by gabay

Bernard Matthews has taken out full-page advertisements in the national press, confirming that their produce is “100% safe”. However, rather than highlight the recent bird flu crisis up front in the advertisement’s headline, the company lead with a statement from a TV advertising icon - Bernard Matthews himself. The advert features a nostalgic ‘bootiful’ snapshot of Mr Matthews complete with beaming smile as he stands by a farmyard gate. The headline reads, “ It’s more than 10 years since I appeared in my own advertisements. Now it’s time to do so again.”

From a Brand Forensics point of view, the advert tries too hard to cash- in on Bernard Matthew’s wistful past. Today’s consumers are much more savvy than to simply accept a brand can expect loyalty from customers simply because ‘the man at the top’ says it’s all going to work out okay.

However, providing the company remains vigilant - which, considering it has some of the most stringiest standards of hygiene and bio-security in the world - they will, given time, consumers will slowly begin to return to what has long been a brand that like Mr Matthews himself, is part of recent British culture.

The week brands openly apologised

In terms of full-page adverts being used to apologise for major brands, this past week must go down as one of the most remarkable in marketing history. Tesco published full-page national press advertisements. As with the Bernard Matthews advertisement, rather than just simply apologising upfront from the start, the advert opened with: “Tesco petrol is now back to normal. So you’ll be pleased to know you can buy our petrol with total confidence”

In surveys conducted this week by Brand Forensics, many people noted that they would have preferred a simply apology than to be told how happy they can be now that they can again fill up their car at Tesco.

Tesco promised to pay for any damage caused by the flawed petrol. To prove damage, motorists need to send the company repair receipts along with details, and ideally proof of purchased of where and when the petrol was bought.

This was a laudable offer, however the brand may end up inundated with bills. Under the Sale of Goods Act 1979 motorists can claim for petrol, any repairs and “consequential” costs. A spokesperson from Asda - the second of three supermarkets found to have contaminated petrol said, it had already put into place a compensation scheme days before the Tesco adverts came out. Morrison’s, the third supermarket said they would also refund petrol costs and repairs, adding that anyone who did not have receipts would be “supported”.

In the mid term, Tesco’s, Asda’s and Morrison’s’ offers may, in brand terms, turn out costly. The consumer advice service Consumer Direct has already been contacted by over 2,500 motorists. With such wide and far reaching possible disputes arising from claims, the supermarkets’ good Samaritan deeds may come with a hidden nasty brand perception sting in the tail, potentially knocking profits at both pump and checkouts points.

Prudence before profit

At best it would be prudent for Tesco, Asda and Morrisons not to compel motorists to pay for their suppliers’ gaffes. At worse the companies mustn’t prolong price increases at the pump. With a little brand shrewdness Tesco, Asda and Morrisons could turn negative expectations on their head. Firstly Tesco must follow their own principle that “every little helps”, maintaining prices as they were prior to the crisis. Next, it needs to keep to its advertised promise to repair vehicles, without wriggling out of commitments with mountains of caveats and conditions. By following suit, Asda will show that they indeed offer “more for you for less” whilst Morrisons will demonstrate that there are really are “more reasons to shop at Morrisons.”