What Can Brands Afford: PR or Crises?

In today’s world, where news travels faster than air, brand reputation has become the most important factor in maintaining a long-term stance in the market. Businesses are constantly struggling to prevent getting negative attention as the fast-paced digital landscape can jeopardize brand image in seconds. Whether a single tweet, bad customer feedback, or a placement in a news article publishing wrong business figures, anything can trigger a crisis capable of reshaping a brand’s future. More than ever, brands now need to decide whether to invest in brand reputation with the help of proactive public relations or take the chance of handling a crisis that could permanently stain the brand image. 

We will dive into the importance of reputation management and the need for brands to balance the expenses of ongoing public relations campaigns against the potentially permanent effects of crises.

Crises: An iconic disaster

Whether it is brands or public figures, crises can be costly for both, with effects ranging from short-term monetary losses to long-term harm to their reputation. Even though a crisis may appear overnight, its consequences can last years, affecting public opinion and purchasing decisions. For example, a crisis usually results in a steep decline in revenue, a major decline in stock prices, and harm to one’s reputation, all of which can take years to recover. However, many big brands have fallen into the trap of crises; here are my top two iconic reputation failures that are true lessons in themselves.

Calvin Klein ‘kiddie porn’ campaign (1995)

Calvin Klein experienced a great deal of criticism in 1995 for an advertising campaign that many saw as evoking “kiddie porn.” In keeping with amateur photography, the campaign showcased youthful-looking models posing in simple yet provocative settings. The public, media, and child advocacy organizations all expressed outrage over the pictures’ low lighting and grainy appearance, which appeared to blur the boundaries between fashion and suggestive content.

The reaction was severe and quick. Critics claimed that Calvin Klein’s advertisements were inappropriate and exploitative and that the brand was sexualizing children. Calls for boycotts, public demonstrations, and an FBI investigation to ascertain whether the campaign breached child exploitation laws resulted from this.

The Kendall Jenner Pepsi Ad (2017)

A Pepsi commercial with Kendall Jenner that seemed to minimize social justice movements by implying that a can of Pepsi could address ingrained social problems drew criticism. Pepsi promptly removed the advertisement after the public viewed it as tone-deaf. Despite Pepsi’s survival, the advertisement damaged the company’s reputation and is still a misstep.

Role of reputation management

In a time when trusting customer reviews before trying any product or service is defaulted in our settings, having a reputation that serves brands’ favour is critical. However, where it takes minutes to ruin an image, it might take months or years to build so that when the other shoe drops, one can prevent things from going haywire. Hence, reputation should start way before one thinks of establishing it.

Indeed, reputation management directly impacts customer loyalty and brand equity. A good reputation can attract top talent, boost sales, and improve customer engagement. Because their credibility and openness encourage goodwill and trust among their audience, brands with strong, well-managed reputations can also better withstand crises. By co-ordinating reputation management with PR initiatives, brands can improve their market position and customer loyalty while laying a strong foundation for long-term success.

Prevention: Better than a cure

Public relations is a preventive tool that builds solid rapport with stakeholders and customers cultivates goodwill and projects a positive, long-lasting image. By articulating brand values, emphasizing industry contributions, and building credibility in the served sector, businesses can utilize public relations strategies and tools to be better equipped for the future. By keeping the brand aware of its audience and industry, effective PR helps reduce the risk of crises by enabling it to foresee and resolve possible problems before they become more serious.

For instance, during the 1980s Tylenol crisis, Johnson & Johnson successfully safeguarded its brand by upholding accountability and transparency. Many consider their prompt, moral, and proactive crisis management among PR history’s greatest reputation management cases. By putting customer trust and safety ahead of profit, Johnson & Johnson survived the crisis and emerged stronger.

On the other hand, companies that underinvest in reputation management and depend on damage control after a crisis frequently have to catch up. These brands must deal with more serious damage to their reputation, greater expenses, and a longer recovery time. By investing timely in the proper measures of brand reputation, businesses can avoid these circumstances and the negative effects of crisis management on their finances and reputation.

PR over crises

Whether a new business or a brand serving customers for ages, having the right and effective public relations strategy is crucial today. PR is no longer a luxury but a necessity for long-term business growth. Brands that invest in public relations reduce the likelihood of crises and create a strong, uplifting reputation that encourages enduring growth and loyalty.

A brand’s reputation is one of its most valuable assets in today’s digital-first world, where information is sensitive, and perceptions are formed rapidly. Compared to managing a preventable crisis after it has harmed the brand, investing in public relations and effective reputation management enables brands to build a foundation of trust and credibility at a significantly lower cost.