Toyota versus Tylenol – part two…

February 24, 2010 by

I got an email with this response to my previous post comparing the Toyota case with the Tylenol case of years back from someone I have worked with for some time.  I thought it was interesting because it points to an interesting aspect to the two businesses and potential impact of the situation – that being the purchasing cycle for the customer.  Given that the purchasing cycle for a customer of Toyota could be 6 years or so, the lasting impact of the fallout from this could be that much more severe than the Tylenol case.  Here is the email -

“Stephen, while reading this I started to think about the impact differences between Tylenol and Toyota in respect to their ” Crisis” . For Tylenol, it turned out to be a relatively short negative impact on their sales; although, I’m sure, a very costly one. Just think; during the scare people may have switched to competitor’s products like Excedrin or Advil, but before long, and once the problem was cleared up Tylenol was back on the shelves and people were buying it again. Of course a bottle of pain relievers only lasts a few months in a house with a medium size family. Whereas Toyota is going to lose Market Share to competitors like Nissan, VW, Chevrolet, etc. which will have a huge impact because people keep there cars for an average of 6 or 7 years. Even the leases will be 3 years in most cases. So what is that going to do to the long-term success of Toyota?”

I guess only time will tell – but I do think that this email has an interesting point to think about when dealing with a crisis or a bad client situation – if the sales cycle is significantly long, the reaction time might need to be that much quicker…  I reflect on the businesses we have run and I do have to say that I agree with this analysis and I think it does need to be a part of every business leader’s thought process.

Filed Under: General

The Tylenol case revisited in the age of social media

February 17, 2010 by

With all that is going on with Toyota these days, I am reminded of the Tylenol case that was studied over and over at business schools as the marquee case study of how to handle crisis.  As a brief synopsis, there was a media scare when it appeared that the Tylenol bottles had been tampered with and people were dying because of it.  The company, with huge cost implications, immediately pulled all bottles until it could figure out what had happened.  The brand was back on the shelves a short time later and it is widely thought that the beand was stronger because of the way that the company reacted to the sitaution.

I wonder, though, in the age of social media and citizen journalism and the immediacy of information, would the reaction that they had been seen as immediate.  In fact, can it be said that any company can react immediately to a situation in this age of social media and social communications.  I wonder this because I keep asking myself – is Toyota handling the situation in the best way that it could?  Is there more that they can be doing?  Could they have done it quicker?  Could they have been like the Tylenol team?

I do think that they can and should be more in the eye of the consumer and building off of the brand strength that they had built for so long.  In this new world, the reaction does need to be immediate but it also need to be public and social.  Use the channels that are available to you and let the momentum take it.  Control the message by putting a face on it and engaging with the customers to keep whatever trust you can and build back whatever trust you lost.  I would argue that in this day and age saying publicly – in video and online – that you d not have all of the facts, that you are investigating, and that you want to partake in an open and engaging dialogue is a must for any crisis management.  There is no longer the time to regroup, investigate, meet, and caucus for weeks on end and then to issue sparse public messaging.  Customers feel close to brands and expect immediacy and personal contact from brands they trust.

Am I way off?

Filed Under: The Pulse on Marketing

Finding Passion – “Do something and do it with passion and you will be successful”…

February 8, 2010 by

Recently I have been in meetings that have been discussing starting, growing, and reinvigorating a company. I found it interesting that in each case, the word passion came up over and over again.  While it may seem obvious that passion is critical, what was important to discern was the way that people refer to passion in this context.

It used to be said – “Do what you love and you will be successful”.  I for one, have never ascribed to this belief.  Why?  Because I think it is often misinterpreted.  I think often people think the “What” refers to the product or industry.  I think what is lost is that the true “what” in this statement is about finding something you can be passionate about and you can attack fueled with this passion.  It may be that the passion here is not about the product or service but is in helping people to grow as professionals or in making deals and transacting business or in finding ways to make companies and organizations more efficient or – even simpler – in solving problems that are difficult to solve.  Whatever it is, it is the passion that drives people.  I look at people like Chris Brogan and people often ask me – “how does he do it?”.  My response – “Passion”.  I talked with someone the other day about sportscasting and asked him why – his answer – “passion”.

Maybe the statement should have been “Do something and do it with passion and you will be successful”.  Then I think there can be no doubt about the truth.

Can you find passion?  Can you find a way to be passionate about some aspect of the job you are doing and the team you are working with?  Try it.  Focus on that.  See the difference it will make.

Filed Under: General