Crisis Management in FMCG Brand Communication

The shelf in a store is a battlefield. All it takes is a minor slip-up, an error on the label, a social media scandal – and all the work on the brand image can be for nothing. A crisis in the FMCG (Fast-Moving Consumer Goods) industry doesn't just erupt; it explodes. How do you emerge from a crisis with a shield, not on one?

Why Do Crises Occur in FMCG?

The sources of crises are varied: product defects, communication errors, unethical company behavior, or even seemingly trivial social media posts. Just look at the 2022 case when some global brands did not withdraw from Russia and were condemned even by loyal customers in the face of the war in Ukraine. Some of them are still trying to rebuild their positive image today. Regardless of why a company is experiencing a crisis - we have a few strategies and examples of how you can handle it.

Remember that what differentiates FMCG from other industries is also scale. A few negative comments (for example, about a faulty product) can quickly turn into thousands of dissatisfied people and ultimately force the product to be withdrawn from stores. Speed of reaction is key here, but preparation is even more important.

Brands That Apologized for Tactless Campaigns

Tiger and the ad "commemorating" the Warsaw Uprising

One of the loudest Polish crises concerned the Tiger brand. In 2017, on the anniversary of the Warsaw Uprising, a graphic appeared on Instagram with an extended middle finger, accompanied by the caption: "August 1st. Day of Remembrance. Screw what was. What matters is what will be." The post caused a wave of outrage. The message of the advertisement was treated as an insult to those who fought for the liberation of the country.

The reaction was immediate and firm. The co-owner of the Tiger company posted several entries emphasizing the important role of the Insurgents in Polish history. The brand removed the controversial post, apologized, and did so on many levels – publicly, through statements, and by donating half a million Polish zlotys to the World Association of Home Army Soldiers. The marketing agency took full responsibility, lost the contract, and the people responsible for creating the advertising campaign were fired. Tiger also temporarily deleted its Instagram account. This showed that the company understood the seriousness of the situation and was ready to bear the consequences. It worked. Although the crisis was huge, the situation was managed, and today the brand has rebuilt its image.

Dove - does skin color matter?

The year 2017 was not the happiest for the Dove brand from Unilever either. In Poland, the rather successful campaign "We are beautiful!" was gaining popularity, but probably few people know that the company had a marketing blunder globally. A video lasting only a few seconds on social media caused a scandal and recipient outrage. What was it about? In an ad for body wash, a dark-skinned woman takes off a brown T-shirt and transforms into a light-skinned woman in a light T-shirt.

According to Dove, the video was meant to show diverse beauty, but customers interpreted the message differently and accused the brand of showing light skin as the target effect of using the balm, as if dark complexion was considered dirty. Just a few hours after publication, the brand removed the controversial video and issued an apology. The subsequent marketing campaigns proved to be a resounding success.

How Not to Become a Victim of Your Own Success?

Lipton and a Lifetime Supply of Free Tea

The Lipton company once faced a different kind of crisis. It was a crisis related to... customers who could drink their tea for free for the rest of their lives, generating enormous losses. All because of a not very well thought-out campaign along the lines of: "Buy one pack and get a second one free." The company released packaging with a code for a free purchase of another pack of tea.

The problem was that every Lipton box contained a code, which meant a clever customer bought one package, showed the code, and received a second one with another code. This created an infinite loop, and someone could get even several dozen packs of tea for free. Shortly after noticing the error, the company withdrew all tea packages with the code, but during the campaign's duration, it incurred significant financial losses.

Pepsi Will Help Resolve Any Protest

The Pepsi company also experienced an image crisis. Today, its characteristic campaigns are positively received, but the brand once slipped up and caused a huge stir around a short advertisement featuring Kendall Jenner. In the spot, the model takes a break from her work to participate in a protest, and then, with a smile, hands a can of Pepsi to a police officer.

The ad's audience began to criticize the company for diminishing the role of protests. Some caught a frame strikingly similar to an event from Black Lives Matter, where a Black woman stands alone facing a large number of armed police officers. The photos show the moment two officers rush to arrest her. Internet users began publishing posts on social media mocking Pepsi, attaching various photos from protests (often depicting police brutality) and captioning them to suggest resolving the problem with a can of the drink. Critics also pointed out the irrational behavior of the people shown in the advertisement - everyone is smiling and joyful, as if they were going to a party.

The company very quickly removed the clip and issued an apology, also to the model herself due to the critical opinions of the ad's recipients directed at her. Based on this example, one must remember that social and political topics can cause a lot of controversy, so it is better to avoid them in advertisements. Now, few remember this video, but for some time, a considerable displeasure with Pepsi remained, and customers massively switched to their main competitor - Coca-Cola.

The One Who Reacts Wins

Slip-ups and crises can happen to anyone. Immediate apology and clear communication are the foundations for rebuilding the image. A delay can give an advantage to the competition, which is just waiting to exploit a moment of weakness. In social media, instead of silence, it is necessary to publish a well-thought-out communication that shows the brand has taken responsibility and is actively working to solve the problem. Such a proactive attitude can effectively mitigate criticism and restore trust. In the case of faulty goods, it is best to send an email with an apology and guarantee a quick refund. You can also offer a personalized discount code. Remember that many crises can be avoided - just perform tests, prepare a survey, and ask recipients what they think about a given advertisement or new product beforehand.

Summary

  • Crises in FMCG brands are a common phenomenon.
  • The company's problems most often concern image crisis and faulty goods.
  • Social and political topics largely generate controversy that can destroy a brand's positive image.
  • In crises, it is necessary to immediately apologize for the situation. Personalized messages with unique discount codes will help rebuild trust in the company.
  • It is best to avoid crisis situations by conducting tests of campaigns and products that are to be introduced to the market.