failures of brands on facebook

22
A Presentation on Social Media Marketing Siddharth Garg FT13172 www.siddharthgarg.com Ken Sekhar FT13141 www.kensekhar.com Kriti Sharma FT13342 www.kritisharma.com Akhil Sharma FT13200 www.akhilsharma.com Anup Pandit FT13209 www.anuppandit.com

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Failures of certain Brands on Facebook, a presentation made as part of the Social Media Marketing course by Prof. Kiruba Shankar at Great Lakes Institute of Management, Chennai.

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Page 1: Failures of Brands on Facebook

A Presentation on

Social Media Marketing

Siddharth Garg FT13172 www.siddharthgarg.comKen Sekhar FT13141 www.kensekhar.comKriti Sharma FT13342 www.kritisharma.comAkhil Sharma FT13200 www.akhilsharma.comAnup Pandit FT13209 www.anuppandit.com

Page 2: Failures of Brands on Facebook

Tesla Motors Facebook story

The Message

• A high-end, zero-emissions car company that already sold out of its newest car, the Model S, before it even appeared in showrooms

Winning

Edge

• Tesla is different from traditional automotive manufacturers like Audi and BMW that want to be positioned as more eco-friendly

The Path

• Facebook wall comments/posts

The Mista

ke

• Relying solely on its audience's wall comments for engagement

Missed bus

• Tesla missed the opportunity to share its unique niche and differentiate itself from its competition

Page 3: Failures of Brands on Facebook

ComparisonAudi vs Tesla

1. Selective & interesting content users2. Clear message & brand focus 3. User/consumer generated content4. Clear engagement, not just posting, creatively putting content and relating to customers lifestyle/likings

1. Information Overload for the viewers2. Generalizing the niche, brand dilution3. Company generated content4. Throwing out information, hard to relate brand with consumer’s lifestyle, yet to develop the brand passion

Audi

Tesla

Page 4: Failures of Brands on Facebook

Learnings:• Posts on Facebook wall are just a

starting point; posts are not a brand drive

• When it comes to encouraging fans to get more involved with your brand, simply posting on your wall isn't enough

• You need to engage them so they're interested in your backstory and they want to understand why they should buy from you

• Not Having Answers to “What Exactly Is It?" and "Why Should I Want It?” – will lead to failure

• Need to evolve in the market

Page 5: Failures of Brands on Facebook

Failure to Communicate• When Netflix raised its charges,

enraged fans took to the digital airwaves

• Fans posted around 11,000 comments• Many of the comments were not

replied to• None of the comments/posts were

replied to immediately• Reassurances were constantly made to

the fans regarding the latest policy, met with even more venomous comments

Page 6: Failures of Brands on Facebook

Learnings• Facebook not the medium to

address current business challenges

• Needs a large team, without which you just come off as unresponsive

• Responses also get buries in a pile of comments, especially if not addressed immediately

• Fans won’t forgive: “I think Christmas will be spend shopping for a new streaming service.”

Page 7: Failures of Brands on Facebook

Staying Quiet on Facebook• Goldman Sachs blamed by many for

the recession• Viewed as a poster child for

Corporate Greed• Goldman Sachs failed to comment on

its withering brand value• Absolutely nothing posted on

Facebook or Twitter

Page 8: Failures of Brands on Facebook

Learnings• Goldman Sachs was perhaps

paralyzed with fear amidst all the hate comments (Particularly the Anti-Semitic ones)

• Moderators must be pro-active in taking down such racially abusive posts

• Put up “House Rules” on the page

• Doing nothing just allows for lies and abuses about your company to circulate on Facebook

• They must contact Facebook to reclaim their page, and start rebuilding

Page 9: Failures of Brands on Facebook

What went wrong ?

• Wal-Mart started with intent to post content and for followers to discuss and communicate about it

• Wal-Mart decided to restrict comments and feedback on its Facebook page to “Wall Posts” - Not a great public image , feared that Facebook could bring upon countless negative comments

• No 2-way communication

• Wal-Mart limited user content - demeaned the whole point of creating a Facebook page

Page 10: Failures of Brands on Facebook

• Lack of interactivity – became just another place for Wal-Mart to advertise

• Didn't listen to potential customers

• Bloggers took notice of this lack of conversation and soon a flood of anti-Wal-Mart comments appeared on the wall posts.

• Shut in less than 3 months

Page 11: Failures of Brands on Facebook
Page 12: Failures of Brands on Facebook

Social Media Failure

STARBUCKS

Page 13: Failures of Brands on Facebook

• Starbucks India quickly deleted a post made by an angry customer Armaan Kapur on Facebook page

• Posted by him on Starbucks and Starbucks India Facebook pages on 7th February, 2013– post triggered 5,100+ likes,

250+ comments in a few hours

• Post removed by both Starbucks and Starbucks India– it was getting more attention

than their regular updates– This triggered a viral rage on

Facebook & Twitter

Page 14: Failures of Brands on Facebook

• @ArmaanKapur tweeted a screenshot of his post on Starbucks India’s Facebook wall

• got him more attention from Twitterati resulting in further damage of Starbucks’ image

Page 15: Failures of Brands on Facebook

• Starbucks, which just established its presence in India had a great opportunity to show people that they don’t just claim to sell the best coffee in the world but also offers best customer service – even on Social Media

• The Best Way Starbucks Could Have Handled This: – By NOT deleting the post without addressing it– By responding to the post immediately and assuring a

response in the public eye– By taking a call personally / offline with customer and solve

the issue amicably, requesting him to remove the post himself

Page 16: Failures of Brands on Facebook
Page 17: Failures of Brands on Facebook

The Brand has deleted the image as well as all the posts from Facebook

Page 18: Failures of Brands on Facebook

After a long time the company finally comes out with a response

Page 19: Failures of Brands on Facebook

Learning's

• Don’t react quickly to haters without thinking of the impact it will have

• Never delete customer comment. It only adds fuel to the fire• Allow your fans to fight your battles• Never lose an opportunity to try and convert a hater

Page 20: Failures of Brands on Facebook

All is not lost

The response http://www.youtube.com/watch?feature=player_embedded&v=Bpy75q2DDow

Page 21: Failures of Brands on Facebook

5 Reasons why it was a success

• Recognizing an opportunity• Timely response – 8 Days

• Self-aware – Able to make fun of themselves

• Funny – Humor and the use of cats

• Bold – Go big or go home

Page 22: Failures of Brands on Facebook

THANK YOU!!!