Friday, April 30, 2010

Product recall-double edged sword

I constantly feel, product recall from the market can be really hazardous for any company. Because it leaves an impression on customers that you are not leaving up to the expectation of customers or not withstanding on your brand promise. Toyota, Nokia, Maruti all were involved in such product recall in recent times creating lot of chaos in the market as well as consumer minds. Do the product recall decision helps brands to gain more faith or erodes the brand equity, that is a big question. The way Nokia recalled its faulty BL5c battery from the market and exchanged them with new ones was tremendous. The way they communicated to the customers and resolved the issue was commendable. So gaining more brand equity was never in question. But I feel Toyota and Maruti missed the plot somewhere that tinted their brand image, which was eventually shown in declining price of their shares. Brands are like friends that is what i feel. If a good friend does some mistake we tend to forgive him and accept him wholeheartedly, same happens with brands also. We ignore some hiccups if we are loyal to the brand. But if the case is just opposite then definitely the brand loses much ground. So i hope those customers are loyal to Toyota will still appreciate the decision of product recall as it was intended for their safety concerns. A good friend always thinks good for his friends. Let me know what you feel about this.

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