Home » Blog » Blog » Archives for Conover
Bob Phibbs' Retail Sales Blog

Posts Tagged ‘Conover’

Toyota Recall & Domino’s Pizza Mea Culpa Destroy Brand Image

Did you catch today’s news that Toyota, the brand many American’s have run to from GM and Ford because they were “better built” than the Big 3, has halted production and withdrawn eight models?  Not just came up with a recall to fix but HALTED PRODUCTION of 60% of their products due to an accelerator glitch they don’t seem able to get a handle on.   The full story can be read at the WSJ but with such a mea culpa, have they raised our consciousness to such a level that we now question all those years of quality reports?  I know I do.

[Updated 2/2: The New York Times reports, "At almost every step that led to its current predicament, Toyota underestimated the severity of the sudden-acceleration problem affecting its most popular cars. It went from discounting early reports of problems to overconfidently announcing diagnoses and insufficient fixes. You can read it all here.]

But they’re not the only ones.  Have you checked out the new Dominoes pizza ads that basically say their pizza crust sucked for the past 50 years and they had to do something to acknowledge customers’ honest comments? They’ve even created their own website reinforcing again how they had to change. You can watch Patrick Doyle’s message here.

But wait, it’s not just the Domino’s Pizza company CMO and President saying they’re sorry. How about Jr. and Ramon (the District Manager?)’s video apology to a Twitterer’s tweets about a bad experience. Just amazing to watch a DM in Chicago apologize about Dominoes 223 Lincoln.  Domino’s may have still been smarting from their disgusting employees in Conover last year and how their response was anything but mea culpa. If you missed that post, its here.

What’s fascninating is they are major companies taking the lead in saying, “Yep, we got problems.”  Maybe its due to the influence of social media they want to get ahead of things, I’m not sure but the acknowledgements are almost reveling in their rottenness.

With Valentine’s Day coming up, imagine saying to your sweetheart, I can’t see you anymore because I’ve been unfaithful, not sure when I can stop so stay tuned.” Or, “I know I’ve been unfaithful, here’s the room we stayed at, the bedsheets and notes I wrote – I get it, I’m bad but give me another chance because hey, I’ve got a video.”

Is this where watchdog reporters have led us?  Think back to Lee Iacocca’s commercials for Chrysler in the 80′s – he never said, “We sucked and hope you’ll give us a chance.”  His message was “We’re doing amazing things.”  Of course, the difference is he had high safety ratings, when you have cars that accelerate uncontrolably, you kinda ‘cede that.

Now consumers who have purchased Toyotas and those who will undoubtedly buy them in the future will scrutinize the brand like never before.

Lesson to businesses large and small, if you want to become a larger brand, you better pay attention to the most basic brand promises:

  • eating our product won’t taste bad or
  • our products won’t kill you.

It really is the little things that allow you to say those things. Take your eyes off the ball and you’ll be whipping yourself like the judge in Stephen Sondheim’s musical Sweeney Todd – hopefully not on the global stage like Toyota and Dominoes. Which could tarnish the reputations of others in their categories and, Toyota’s case, a whole country.

PS – This isn’t like the Tylenol scare which killed 7 people because of a saboteur tampering with the bottles in stores.  Toyota has almost 100 deaths due to sudden acceleration – they knew about this as far back as 2006. This won’t blow over.

Domino's Pizza Conover, NC Disgusting Behavior:10 Corporate Response: 0

In an unbelievably slow attempt to limit the damages from a “prank” on YouTube, Domino’s Pizza waited almost 48 hours to respond.  Now the entire brand has been compromised, not just a single unit.

The videos, four in total were taken down from YouTube but available if you want to make yourself ill at this blog. They feature a guy putting cheese up his nose, wiping a dish cleaning sponge on his backside and generally doing things we have all wondered about or seen in movies.

I remember when Los Angeles KCBS TV station Channel 2 did an expose of dirty restaurant kitchens. All Los Angeles county restaurants’ business fell off a cliff.  Did the CMO and the executive team of Domino’s not know this?

nose-cheeseThe two culprits were fired and arrested on felony charges even though they say it was a “prank.”

After hiring hundreds of employees, I have to tell you – I doubt this was a prank. Both of these employees were in their 30′s and clearly the store was open and orders were coming in. We’ll never know if the food was absolutely never served or not. You can read all about the incident at the NYT site at A Video Prank at Domino’s Damages Its Brand.

The point is much like my post on Monday about Amazonfail, you cannot be in business and think anything will just “calm down,” if you wait it out.   Look at last fall when Motrin made a reference to baby harnesses being painful and how quickly moms got on Twitter to complain.  They too took too long but that didn’t speak to mom’s fears of food safety.

Did Domino’s not “get” how this could affect all of their franchisees? That young people, the ones most likely to be on YouTube would say, “OMG – you have to see this?” and send to all their friends?

You can see Patrick Doyle, Domino’s President, YouTube response where he oddly looks off camera here.

Short post. Short point.  Two employees destroyed a brand. Avoid the Internet at your own peril.

Oh yeah and hiring the right people makes a difference too.

Sign upSign up to get monthly tips and tricks delivered to your inbox direct from The Retail Doctor®, Bob Phibbs.