Ben Wise on Branding

Watching the world through the lens of the brand

Dealing With Toyota’s Crisis

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The halt in sales and production of 8 Toyota models, including the best-selling Camry and Corolla, will cost the company millions of dollars. Others have been forced to halt sales briefly for quality reasons, but the scale of Toyota’s troubles is unprecedented and will have an equally profound impact on their brand.

That being said, the level of reaction from Toyota might actually improve their brand. Think back to the scare that Johnson & Johnson had with Tylenol or the issues Maple Leaf Foods had with listeria. In both cases, giant recalls took place and the company suffered massive losses. But in both cases they proved to their consumers that safety is a top priority, potentially improving their brand.

Will this work out the same for Toyota? It is hard to say. I’m sure there are many more examples of recalls that didn’t have this silver lining. The list of faulty toys alone could fill a few pages. But watching Toyota navigate this issue should provide some great insight into how to handle these situations to minimize the damage to the brand.

What do you think? How will Toyota deal with the current crisis?

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Written by benwisebranding

January 28, 2010 at 6:37 pm

Posted in Uncategorized

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