Crisis communication – examples that saved (or destroyed) a brand

Written by: Nika Petković, PR Account Junior, not ChatGPT

Crisis communication is key to maintaining trust in a brand when a situation occurs that can threaten its reputation. While a problem can be resolved through regular business processes, a crisis becomes publicly relevant and can affect brand perception, customer relationships and business operations.

During a business crisis it is difficult to remain „level-headed“, which is why a crisis plan is prepared when there is no crisis. Although every situation is different, the basic principles of crisis communication remain the same: quick response, consistency, empathy, verified information and a willingness to learn after the crisis is over.

No brand is immune to a crisis. It can arise for various reasons, from problems in the supply chain to an ill-considered marketing campaign. However, the way a brand reacts often determines whether the crisis will further damage its reputation or become an opportunity to strengthen its relationship with the audience.

Below we present examples of brands that showed how proper crisis communication can help preserve reputation, as well as a case in which the brand’s response further deepened the problem.

Crisis communication using KFC as an example: how to admit a mistake and regain trust

One of the most well-known examples of successful crisis communication happened to the KFC brand in the United Kingdom. Around 720 locations temporarily closed their doors because the delivery service had operational problems, which left the restaurants without chicken.

The situation was serious. In addition to dissatisfied customers, franchisees also faced problems, with as many as 80 percent affected by the crisis, as well as employees of the locations who did not receive wages during that period.

KFC reacted quickly and followed the basic principles of crisis communication. Instead of looking for someone to blame, they took responsibility, apologized to the public and openly communicated the development of the situation. They emphasized that they use fresh chicken and explained that this was precisely why they decided to temporarily close the restaurants.

On their channels, they regularly informed customers about the situation, while using humor that suited the circumstances. The most famous moment of the campaign was a full-page advertisement in The Sun and The Metro newspapers. In the photo of an empty bucket, they changed the brand name from „KFC“ to „FCK“, or a message that can be translated as „We messed up“.

With this move, KFC did not try to downplay the problem, but acknowledged it in a way that matched the brand’s tone. Humor was used as a tool to connect with the audience, not to avoid responsibility.

The campaign was covered by the media and social networks, with around 700 media posts. According to brand perception data, public sentiment, which fell to -17 percent at the peak of the crisis, recovered to +31 percent after the campaign.

KFC demonstrated several important lessons in crisis communication: admit the mistake, do not hide information, show empathy and communicate what is known. After the crisis the brand continued operating, and sales stabilized by the end of the year.

When crisis communication fails: the example of Peloton

Crisis communication is not only about reacting after operational problems. Sometimes a crisis can also be caused by the way the audience interprets a certain brand message.

Peloton was one of the fastest-growing fitness brands when it released an advertisement in which a husband gives his wife a Peloton bike. In the advertisement the woman records her progress over the course of a year and shares her experience of using the product.

Part of the public perceived the campaign negatively. Instead of seeing it as a message about health and self-confidence, they interpreted the advertisement as a portrayal of pressure on women to change their bodies. The scenes in which the woman exercises early in the morning and late at night were particularly criticized.

The audience began asking questions such as: „Why does she work out at so many different times?“ and „Why is that kind of relationship between partners portrayed?“. What the brand intended as a story about personal progress, part of the audience saw as a message about unrealistic expectations.

The problem for Peloton was not in the product characteristics, but in the broader meaning that the audience associated with the advertisement:

  • what kind of image about the body and self-confidence the brand sends,
  • what kind of relationship between partners it portrays,
  • what social values the product implicitly represents.

Instead of first listening to the audience’s reactions, Peloton defended itself by claiming that the campaign had been misinterpreted. This is a common mistake in crisis communication, focusing on the brand’s intention instead of the consequence caused by the message.

The audience does not react only to what the brand wants to say, but to what it understands from the message. When a brand focuses only on its intention, it can give the impression that it is not listening to its audience and further prolong the negative narrative.

 

 

What can we learn from these examples?

Well-executed crisis communication does not mean that the crisis did not happen. It means that the brand knows how to react in a timely manner, acknowledge the problem and maintain public trust.

KFC showed that even a major business mistake can be an opportunity to strengthen the relationship with the audience if it is communicated openly and responsibly. Peloton showed that even a seemingly positive message can cause a negative reaction if it is not aligned with the values recognized by the audience.

That is why the most important rule of crisis communication is simple: do not manage only information, manage trust.