Singapore Airlines' (SIA) recent move to resume advertising after a
three-month hiatus following its first-ever air crash highlights the
delicate question of when is it appropriate for a crisis-hit company to
restart advertising.
Too early and a corporation risks creating a bigger crisis for itself,
even as it attempts to minimise the immediate impact of a disaster
without jeopardising its future.
At a time when a sizeable section of its market is reeling from the many
consequences of a disaster, including death, advertising by a crisis-hit
corporation is essentially money wasted. Ad claims will never wash well
with a public who is at best sceptical; at worst grieving.
If anything, a company risks doing enormous harm to its corporate
reputation by appearing too eager in thinking about its commercial
health with the smell of disaster still hanging in the air. It's then
that the potential of being labelled insensitive, mercenary and uncaring
is especially high.
For Firestone, the lesson has been hammered home with painful
consequences.
This once-leading brand continued to advertise and communicate
throughout the defective tire fiasco that engulfed the company,
according to Steve Carr, senior vice-president of Cramer-Krasselt, an
integrated marketing agency in the US. "Recent surveys in Fortune and
The Wall Street Journal have cited the brand as holding the worst
reputation in corporate America," says Carr.
Yet, staying off the advertising radar screen for too long has equally
devastating consequences for any company in today's hyper-competitive
environment.
It all boils down to a judgement call since it is difficult to establish
a rule of thumb over when companies should restart advertising or any
other type of commercial communication after an accident.
In SIA's case, the flag carrier appears to have found what is possibly
the best compromise in navigating the quagmire that traps less savvy
brand-builders.
It tied its post-crash advertising policy to Chinese traditions, where
it is customary to observe a 100-day mourning period when a death occurs
in the family. Says Newsweek's advertising director for Asia, Theresa
Yeung: "It's the first time I have come across a 100-day mourning period
by an airline advertiser after a crash."
Not only did SIA put a halt to advertising during the 100-day mourning
period, its officials also steered clear of industry functions as well,
again in keeping with Chinese tradition.
Admittedly, SIA's case is unique. The carrier originates from the
essentially Chinese-dominated city of Singapore and the crash occurred
in another Chinese city - Taipei - so its actions have added resonance
in both markets.
Advertising is an important weapon in keeping a brand top of mind or in
staging a post-crisis comeback, but it is only part of the arsenal
available to a company.
Carr says crisis-hit companies should consider general communications
beyond paid media, from non-paid editorial through public relations,
events and the internet.
"The impact on all audiences needs to be considered - those affected by
the accident as well as employees, customers, prospects and the
financial markets," says Carr. "At the same time, follow-up research on
the company's reputation and attitudes of the public could be very
helpful in making the decision."
