Several weeks after the dreadful oil spill in the Gulf, the situation is still unresolved and as each day goes by, the fall-out from the incident is becoming more and more widespread. As the claims and counter-claims intensify, the BP brand itself is under attack and in a much more virulent way that we saw from the recent Toyota crisis. And while we know from history that brands in crises can be incredibly resilient, it does seem to me that the BP brand is fighting for its very life.
There are a number of factors at play here that in combination have produced a perfect storm for BP– the company and the brand:
– The environmental issue is much more top of mind to everyone than it was 20 years ago with Exxon Valdez. And today, it’s an issue that generates extreme emotions.
– BP as a company has had a poor safety record in the US in recent years. This is a fact.
– The BP name has become inextricably linked to this latest incident although much of the evidence points to the work of the contractor (Transocean) being primarily at fault.
– BP is a foreign company (yikes!) and while this is not a central issue, it certainly ‘ups’ the emotional factor surrounding the debate.
– The details of and the reasons for the accident itself are very complex to understand and for the general public, tagging the whole thing as “the BP accident” has become a nice, simple way of packaging the issue.
– Legal actions against BP specifically are already underway from local fishing companies, environmental groups and State Tourist Associations – this is hardly likely to help the BP case.
And so, while the formal enquiry, when it reports, may clear or partly clear the BP name and cite other guilty parties, this will probably be a case of too little, too late.
To BP’s credit, their CEO has been remarkably hands on and accessible for interviews and commentary. But I sense that the scale of the disaster and the ripples that it will cause have left the BP brand in a really bad place. The Valdez incident seriously wounded Exxon for years and this took place before the Internet, before transparency, before consumer empowerment and before the environmental issue had been elevated to today’s level.
And in the meantime, BP can’t even start to rebuild its reputation until the leak is stopped and the oil is cleared. All it can do is continue to work around the clock to get the situation resolved successfully.
But from a brand perspective, BP can and should be addressing its future positioning in the marketplace. “Beyond petroleum” was an interesting idea that never got implemented and it should now be officially buried. In the US, it feels embarrassing and untrue. The marketing brains within the company have to plan the future brand strategy from a new realistic base in a fundamentally changed marketplace context. Brand reinvention is sometimes undertaken voluntarily but often it takes a defining moment to act as the catalyst for change. For BP that moment has arrived.
And it will need some super-sharp thinking and brilliant execution to get this brand back to health. I would really like to see this happen. If it does, it will be a Harvard case study. If it doesn’t…I can’t even think about the alternative.
Simon Williams
Tweet this | Tags: beyond petroleum, BP, brand, energy, environment, Gulf spill, oil, reinvention
