Today Tesco have taken the decision to publicly air its dirty laundry with Unilever, who are asking Tesco to increase the price of the branded products they sell by 10%. Tesco are already in a supermarket price war with the likes of Aldi & Lidl and any increase to prices is likely to stem the positive flow they have seen this year from consumers.
This story and the impact it will have on consumers is likely to have a negative impact on the brand image of both companies, Tesco for not having the products available and Unilever and their many mainstream brands for holding Tesco to ransom.
This is not the only case within the last month of global brands shooting themselves and their brand image in the foot, Samsung’s brand is in turmoil after recalling the Galaxy Note 7 for a second time for catching fire, an issue expected to be unearthed at the testing stage and Wells Fargo CEO has resigned after employees were creating fake bank accounts in customers names and then charging fines to them.
A brand takes years to build but in these instances can be broken in a matter of moments over what looks like issues that could be avoided.
Customers are looking for a brand they can trust and invest in, from the places we bank and shop, to the food we eat and the smartphones we use and at the moment there are trust issues surrounding each one.
Understanding what your business needs to do to gain the trust of a customer is key and an area that we here at B2B International specialise having helped countless businesses unlock the answer and help to roll out a strategy that keeps them coming back, time after time.