On April 20, an explosion deep in the Gulf of Mexico killed 11 people and started what could be one of the worst man-made environmental disasters in history. British Petroleum’s (BP) oil leak continues 77 days later and every two weeks or so, the pipe releases an amount of oil equal to the Exxon Valdez spill of 1989.
First, I do not excuse BP for what they have done. They deserve all the bad press and public anger they are receiving right now. What they have done is inexcusable, and every day that goes by with more leakage makes it that much more disgusting.
A report came out in late June estimating that BP had lost over $1 billion in brand value because of the spill. The clean up, thus far, has cost BP $3 billion and they have another $20 billion set aside for more work. Their stock prices have dropped and this is going to be a (much deserved) problem for BP for decades.
Gen Y is known to be both passionate and stubborn. A recent study shows that Gen Y is more loyal to brands than Gen X. This is a good thing for brands, but it can also work against them. Gen Y is loyal to the brands they love, but we’re also loyal to boycotting brands we hate. This will be a major problem for BP in the future, as Gen Y will potentially avoid their brand and products for years to come.
I was only four years old when the Exxon Valdez spill occurred. I don’t remember much of it, but I still have a mediocre opinion of their brand today because of it. Now imagine how I feel about BP, considering I’m watching this disaster unfold daily.
So enough bashing BP and on to what they should do about it.
BP is in deep trouble. They have destroyed their image with the spill and the fallout, as well as their brand and messaging in general. Their “Beyond Petroleum” slogan has no meaning whatsoever anymore, as the only thing people will remember them for is dumping millions of gallons of petroleum into the Gulf of Mexico. So much for being the “green” petroleum company.
Once BP plugs the hole (if it ever happens) and starts the majority of their cleanup efforts, they need to hit the reset button. BP needs a shake up and they need to start over.
BP needs to cease being BP (at least in America) and take on a new identity. They did this in 2000, when they changed their brand from BP Amoco to BP. This change needs to come during the cleanup, and actually focus on new, clean energy sources, which they have been criticized for not doing. This new brand will be able to explain their new focus and start fresh in the minds of consumers.
Although this will take a large investment from BP, it will be arguably less of an expenditure than trying to regain their lost brand value. BP, whether they like it or not, will be synonymous with the oil spill for decades. Their brand and image will take decades to improve. It makes sense to start from scratch and actually create a brand that tells the truth.
There are many strategies that BP can adopt to try to fix their image and creating a new brand is something they need to investigate.
What do you think BP needs to do with their brand and image? Share your ideas in the comments.
Photo by tsand
You're so right that Gen Y is loyal to boycotting brands they hate.
I was really, really low on gas the other day… I had maybe five miles left on the car and I was worried about running out on the side of the road. I was about to pull into an Arco station, but as I got closer, I noticed that on their sign was a BP logo, and it said, A BP Company, or something like that…
So I kept on driving, even though I was risking running out of gas… that's how much I hate BP.
To suggest that BP should change its name and management is kind of ludicrous. Worse, I don't think this is about a new image coming from the company, it needs to come from customers. In other words, I were BP, I would buckle down and work like absolute bastards to fix the well. I would radically increase transparency, showing good and bad. And any technology I created during the process, I would give away. I'd be all action, and not tons of talk.
One more thought: it's worth remembering that Exxon barely suffered at all in the long-term after Prince William Sound. BP will likely be just another big oil company with pending lawsuits in about two years.
While I agree to brand loyalty we also have to remember that gas stations are locally owned and the BP sign just indicated where they get their supply. And station owners have a hard time distancing themselves from their brand because of contracts.
It seems that no matter how we try to show our dislike of a corporation, everyone gets hurt but the big guys.
I agree. Brand loyalty is incredibly important to us as a generation, but we can't put the blame on the local businesses. These people are being boycotted because their parent company is screwing up, which is terrible. Let's not forget that the people working at the gas stations are not the same people as the C-Level employees at BP. That being said, I completely understand why some people are completely against visiting a BP station.
BP may have to rebrand completely. This disaster is going to be stuck on the corporation for the rest of time. I think the brand itself is beyond saving, especially to our generation. I think BP is in the same boat as United Fruit was in the 70's, when they turned into Chiquita Bananas.
I wrote about BP's damage control and what to do after a PR disaster, and my suggestion was pretty similar: rebrand. There are some other ideas in there, too. It really comes down to taking responsibility for your actions and describing how your company is going to make amends. You can find that here: http://bit.ly/9XObU3
Tom Miesen
@tmiesen