Why Unilever’s Latest Mishap Needs More Attention, but for the Right Reasons

Photo by JOSHUA COLEMAN on Unsplash

Unilever was recently under fire for an ad campaign run on Pornhub by its male grooming product brand, Dollar Shave Club.

In an interview with Mi3, Dollar Shave Club’s Creative Director had explained the controversial decision behind the ad campaign as being strategic, highlighting the significant impressions and exposure it has delivered.

However, Unilever was quick to issue an apology, reassuring the public of its commitment to be more responsible in its marketing activities.

There is hardly any big brand that has not encountered public criticism over a misjudged campaign or a brand blunder at some point in time.

But why does Unilever’s latest mishap ring an alarm bell for those in the Boardroom to take note?

Marketers today are increasingly under pressure to deliver tangible results.

A resounding focus on number-driven outcomes, often stemming from the Boardroom, could, however…

…end up with miscalculated damage to the brand reputation.

Poor decisions, stretching ethical and moral judgment at times, are often justified by quantifiable results.

This is not about choosing short term gains over long-term outcomes (although that in itself is a conundrum that begs attention).

But it is more about the dilemma of delivering tangible results at the expense of intangible damage to brand image and reputation.

Image courtesy: PR Week

So…

why did Unilever react so quickly to address its Dollar Shave Club incident?

After all, the website in question was just another medium to effectively reach the brand’s consumers.

And the brand’s male audience is probably amused by its witty ads on the website.

So, was the media and the general public overreacting?

Well, it’s much more complicated than that and Unilever’s reaction may be more far-sighted than a simple reaction to overcome public outcry.

Here’s why.

1. Whom you are seen with matters

Brands worldwide spend billions of dollars every year on brand ambassadors, influencers, sponsorships and tie-ups so that they can influence their consumers’ perception.

Whom and what a brand is seen associating with has an undeniable impact on the image and reputation of the brand.

According to a report by the University of California, Davis, sponsors of Tiger Woods lost approximately $12 billion with eroded shareholder value during the 2 weeks that followed his infamous 2009 scandal.

Photo by Aaron Burden on Unsplash

Powerful associations help brands differentiate and positively influence their consumers.

They can influence a consumer away from the brand or towards the brand.

This is why according to Forbes, big brands like Nike and Coca Cola paid an estimated total of $53 million to pro basketball player LeBron James.

This is also why the popular musician — The Weeknd — severed ties with H&M early last year after its ad campaign came under fire for racial insensitivity.

Image courtesy: ProBono Matters

Positive associations are especially helpful during a PR crisis…

…when a brand needs to leverage on all that it has to strengthen the perception of integrity, accountability and ethical conduct to rally support.

These give more than one reason for Unilever to severe its links with the controversial website.

2. It’s about more than just one brand

Brands within a portfolio is more inter-twined than it may seem.

Consumer perception of one brand could affect that of others within the portfolio. This is especially true when they are all nestled under a powerful corporate brand.

Half the top ten online search results for ‘Dollar Shave Club + Pornhub’, for example, directly displays Unilever in the headlines.

That’s the strength of a powerful corporate brand.

That’s also the risk attached to a powerful corporate brand, the impact of which would inevitably trickle down to others within the portfolio.

And things could get messy when it includes a brand that promotes self-esteem and confidence among women like Dove, or a fun and adventurous kid’s brand like Matey bubble bath.

3. Alienating consumers is not the smartest move

In addition to the reputational damage that it could potentially cause the other brands within the portfolio, there is also the risk of alienating the diverse consumer segments.

In 2011 Unilever experienced this first hand when its Lynx ad campaign was criticized for objectifying women. This eventually led to its ban by the Advertising Standards Authority — a heavy price to pay for a company that promotes self-esteem for women and girls through its Dove brand.

Image courtesy: Devpost

Avoiding the alienation of diverse consumer groups within a brand portfolio is not easy in a practical sense.

One way to avoid this…

…is by ensuring that all brands respect and align with the corporate brand’s purpose and values.

4. It’s not just about the consumers

A brand’s failure or success does not simply lie in the hands of its consumers.

For a brand to succeed, it needs to consider how it manages engagement with the entire stakeholder ecosystem.

This means all its stakeholder groups — from employees and communities to the investors and media — have an important say on its brand image and reputation.

So, if the Dollar Shave Club consumers are amused and the others are offended by its controversial ad campaign, the brand definitely needs to take note.

Getting on track

While the importance of selecting the right partners to associate with is undeniable, why do brands still make bad judgments about what is right for them?

In a technology-driven world where speed is a critical determinant of success…

…a moment’s delay could lead to losing the next opportunity or giving away market share to a competitor.

Marketers are constantly under pressure to compete for consumer attention amidst a cluttered environment and grab every opportunity available to deliver quantifiable and tangible results.

And sometimes this may mean going against their good judgment and overstepping the boundaries of ethical and moral decisions.

Consumers are now increasingly demanding that brands become more responsible and accountable, and exercise sound moral authority.

The entire brand ecosystem now needs to gear up to support marketers to deliver on this.

This means CEOs would need to steer conversations in the Boardroom to encourage marketers to create a balanced mix of tangible as well as intangible value creation for the brand, consumers and all stakeholders.

Governments and regulators need to create a level playing field with strong and transparent policies that encourage brands to make sound moral judgments, which extend beyond profits.

The consumers are ready. It’s time that everyone else falls in line.