Tag Archives: Iceland

Living Your Brand – do companies really care about their Brand?

Goldman Sachs Tower in Jersey City
Image via Wikipedia

2010 certainly seems to be going down as the year when the proverbial corporate skeletons are coming out of the cupboard:

  • Toyota – which had built its brand on reliable, safe vehicles – recalls many millions of cars all around the world in an apparently ongoing saga, with new recalls being announced almost monthly;
  • Goldman Sachs – viewed by many as the pre-eminent merchant bank – being sued for fraud by the SEC and now under investigation by the UK regulators, too;
  • Many airlines – especially those using words like “Favourite” and “5 Star” in their advertising – simply refusing to abide by their legal obligations, in terms of Regulation 261/2004, to provide accommodation and refreshments for their stranded passengers during the volcanic eruption in Iceland.

And this is just a sample of the more recent headline-grabbing issues.

Are they really “Too big to fail” – or just too big to care?

I suspect they believe the latter, not recognising the truth in the old adage that “Pride comes before a fall.” Remember, almost none of the largest and then most successful companies in, say, 1900, are still in any position of strength today – in fact most have disappeared altogether.

These corporates need to get back to basics, to remember that it is their customers that pay their salaries and to start treating their customers as the company’s most precious resource, rather than as a necessary irritant. Simply repeating a marketing mantra branding themselves as the pre-eminent company in their field doesn’t make it true…

The fact is that branding is a lot more than just a logo with a catchy by-line – a company’s brand is everything to do with that company, and the logo is just something to recognise it by as we’re visual creatures. Branding is about customer service, branding is about the way customers interact with the company in all ways, branding’s about staff training, branding includes corporate governance and social responsibility, branding is about all the materials that company produces – from marketing through packaging to the products themselves – in fact, branding is about everything to do with a company.

And this is where so many companies are falling down: they’ve lost sight of everything but the short-term pursuit of the bottom line. And I use “short-term” advisedly – as without attention to all aspects of their corporate brand, those companies will lose customers and start to fail.

Just look at the consumer backlash against many banks that they perceive to have been complicit in the economic downturn. Imagine how consumers who have been poorly treated will feel about giving more of their hard-earned money to those airlines that left them high and dry. Will former Toyota buyers be as happy to buy another Toyota?

Companies need to start refocusing on their entire brand, they need to recognise the power of instant communication for their customers and embrace it to make a positive difference, and they need to once again really put their customers first instead of just saying they do.

What do you think – do companies no longer care about their brand in pursuit of profits? Have you joined the growing ranks of disgruntled consumers and, if so, which are the brands you love to hate?

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Can Europe Survive? Life after Katla…

Katla
Image via Wikipedia

The recent chaos surrounding the eruption of the Eyjafjallajökull volcano in Iceland – with effects being felt globally in terms of significant financial losses, disruption to travellers, disruption to food supplies, and so on – needs to provoke some serious discussion as to what actions are needed to prevent even greater, and much longer-term, chaos in the event of a more significant eruption.

After all,  history has clearly shown that when Eyjafjallajökull erupts, it’s very much larger neighbour Katla is generally not far behind, and Katla is overdue for an eruption anyway.

While the size of eruptions can never be accurately forecast, the historical evidence shows that Katla’s eruption is likely to be at least ten times the size of the Eyjafjallajökull eruption – and quite possibly more. This could mean not only significant floods of fresh glacial-melt water into the sea (a volume equal to the combined flow of the Amazon, Mississippi, Nile and Yangtze rivers is estimated to have occurred following its 1755 eruption), but a column of ash rising 20km, or more, into the jet stream and being spread over a much greater part of the Northern Hemisphere.

History has already shown some of the worst effects from major volcanic eruptions in Iceland – that of Laki in 1783 resulted in famine across Western Europe, and as far south as Egypt, one of the longest and coldest winters on record in North America, and the death of tens of thousands of people from gas poisoning and famine. It was even linked to the start of the French Revolution, where the lack of food played a significant role.

Admittedly, these are somewhat extreme examples, but they show what is possible should Katla’s eruption be a big one – and almost all experts agree that with Katla, it’s not a question of “if” but of “when” it will erupt.

So, what are some of the possible effects of a big Katla eruption?

  • Air travel – the recent 6-day chaos would potentially be dwarfed by one that could last months. This would not only impact passengers, but freight, too. Tourism would certainly be impacted negatively, but so would food imports and general freight movement.
  • Agriculture – the impact of a prolonged cold spell would drastically affect crop production in Europe and, potentially, elsewhere in the Northern Hemisphere. For Europe, this would just add to the difficulties faced by the lack of air transport to bring in fresh produce from elsewhere.
  • Power – of course, a lengthy period of exceptionally cold weather would push up power consumption dramatically. Could Europe cope with a prolonged extra demand for power for heating?
  • Wealth – potentially a significant shift in the wealth of Europe as the combination of food shortages, collapsing tourism, freight reduction and prolonged cold takes its toll. Where would this wealth go, and who would benefit?

Disturbingly, though, little attention seems to being paid to this, in spite of the lessons we’ve learnt from Eyjafjallajökull. And if it’s not Katla, how long before another significant eruption – perhaps in Iceland, or perhaps elsewhere (Yellowstone?)…

European, and other, governments need to get together as a matter of urgency on this: the planning for overcoming the potential problems is not something that can be done overnight in a reactive manner. Rather, they need to start work today on ways to reduce the reliance on current modes of air transport (could the airship make a comeback?), to find additional reliable power sources, determine ways to source sufficient food, and so on.

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