The reasons why a brand loses its reputation can be varied: a botched product introduction … bad corporate leadership … a poor response to a crisis.
But the net effect is usually the same: The damage takes only a short time to occur, and it can take years for the brand to recover (if ever).
Which brands are viewed as the “most damaged” in the United States right now? Recently, the staff at equity analysis firm 24/7 Wall Street put their collective heads together and came up with a group of nine brands that they feel qualify for the dubious “top honors.” They are:
- Best Buy
- Blackberry/Research in Motion
- J.P. Morgan Chase
- Martha Stewart
I find this list pretty much spot on. Most of them would probably be on anyone’s list:
Groupon – Groupon’s place in business history may be as the ultimate example of a dotcom-era “glorious failure.” Its business model, wherein merchants sign up for a scheme that’s guaranteed to lose them money, had to be “too bad to be true.”
JCPenney – I’ve blogged before about the predicament of this department store brand. In a stunning series of missteps, attempting to attract a completely different demographic of shopper while simultaneously dissing its loyal customer base turned out to be a sure recipe for damaging the Penneys brand – possibly irreparably. The odds are better than 50/50 that this store chain will now follow Montgomery Wards into retail oblivion.
Martha Stewart – Take an iconic business celebrity and send her to prison for insider trading. Meanwhile, her lifestyle media company is hammered by social media (Pinterest and all the rest), while television programming is splintering into more and more micro-segments thanks to the Internet and an explosion of new programming options for viewers. Is this brand even relevant anymore?
The remaining brands – Apple, Hyundai, J.P. Morgan – are ones that I feel have more inherent strengths and should be able to bounce back from recent setbacks. Provided, of course, that they make all the right moves and avoid any new pitfalls.
What are your thoughts? Would you nominate any other “damaged” brands for inclusion on the 24/7 Wall Street list? (I thought of Sears for one …) Feel free to share your thoughts here.