Top 10 Worst PR Mistakes Made By Companies

Summary

This video highlights the top 10 worst PR mistakes made by major companies, showcasing disastrous decisions that caused lasting damage to their reputations. From Nestlé’s controversial stance on water privatization to Adidas’ insensitive 'You Survived the Boston Marathon' email, the video examines how these blunders sparked backlash. Other highlights include H&M’s 'Coolest Monkey in the Jungle' hoodie, Pepsi’s tone-deaf protest ad, and Krispy Kreme’s KKK Wednesday promotion. Each example serves as a cautionary tale of how a single misstep can tarnish a brand's image and disrupt its success.

Takeaways

• 😀 Nestlé's CEO faced backlash for suggesting that water should not be a basic human right and could be privatized, leading to a permanent tarnish on the company's image.
• 😀 Urban Outfitters’ 'Get Appa Lee' game, a controversial parody of Monopoly featuring offensive themes like crack houses, was pulled after a boycott and lawsuit from Hasbro.
• 😀 McDonald's released the McAfrika burger during a time of famine in Africa, leading to major criticism for appearing insensitive and tone-deaf.
• 😀 H&M’s 'coolest monkey in the jungle' hoodie ad featuring a Black child sparked outrage and protests, particularly in South Africa, due to its racist implications.
• 😀 Pepsi’s 2017 commercial starring Kendall Jenner trivialized serious protests like Black Lives Matter, leading to backlash and an eventual apology from the brand.
• 😀 Lululemon's founder, Chip Wilson, caused controversy by blaming women's bodies for issues with the brand’s yoga pants, resulting in a social media storm and an apology.
• 😀 Dove’s 2017 diversity ad, showing women transforming into one another, faced accusations of being racially insensitive, especially when it depicted a Black woman becoming a white one.
• 😀 Adidas sent a tone-deaf email with the subject line 'You survived the Boston Marathon,' which many found insensitive given the recent bombing tragedy.
• 😀 Krispy Kreme's 'KKK Wednesday' promotion was poorly received due to the association with the Ku Klux Klan, causing the company to cancel the event and apologize.
• 😀 Gerald Ratner, CEO of Ratner Group, called his product 'total crap' during a speech, resulting in a massive loss in company value and the term 'Ratner Effect' becoming synonymous with PR disaster.

Q & A

What was the main controversy surrounding Nestlé’s CEO’s statement on water privatization in 2005?

In 2005, Nestlé's CEO, Peter Brabeck, stated that water should not be considered a basic human right and should be privatized, which sparked global outrage. Many criticized the idea of privatizing water, seeing it as an essential resource for all. Although Brabeck later clarified that he supported water as a human right, the damage to Nestlé's reputation was already done.

Why did Urban Outfitters pull the 'Get Appa Lee' game from their shelves?

The 'Get Appa Lee' game, which featured offensive content such as pimp and ho tokens, and references to crack houses, caused a backlash for being racist and insensitive. It was sued by Hasbro and boycotted by various groups, leading Urban Outfitters to withdraw the game from sale.

How did McDonald’s 'McAfrika' burger backfire in 2002?

The 'McAfrika' burger, marketed as an African-inspired recipe, was launched during a major famine in parts of Africa. The timing and concept of the product were seen as tone-deaf and insensitive, leading to public criticism and a withdrawal of the promotion.

What was the issue with H&M's 'Coolest Monkey in the Jungle' ad?

H&M released an ad showing a black child wearing a hoodie with the words 'Coolest Monkey in the Jungle.' The ad was widely condemned as racist, particularly because the phrase had a history of being racially charged. Protests erupted, particularly in South Africa, where the brand’s stores were vandalized.

What was controversial about Pepsi's 2017 ad featuring Kendall Jenner?

Pepsi's 2017 ad, featuring Kendall Jenner joining a protest and offering a can of Pepsi to resolve tension, was criticized for trivializing social justice movements like Black Lives Matter. The ad was seen as exploitative and tone-deaf, leading to a public apology and the removal of the commercial.

How did Lululemon’s founder cause a PR disaster in 2013?

Lululemon's founder, Chip Wilson, made controversial remarks on Bloomberg TV, suggesting that some women’s bodies were not suited for Lululemon’s yoga pants, as thighs rubbing together caused pilling. This led to a major backlash, with people accusing him of body-shaming. Despite apologizing, the company’s image was tarnished.

What went wrong with Dove's 'diversity' ad in 2017?

Dove released an ad in 2017 that intended to celebrate diversity, but the ad was criticized when a shortened clip showed a black woman turning into a white woman. The backlash was severe, with many seeing the ad as racially insensitive and tone-deaf. Dove apologized, but the criticism continued.

Why was Adidas criticized for their 'You Survived the Boston Marathon' email?

Adidas sent an email titled 'You survived the Boston Marathon' to participants in 2017, which was seen as an insensitive reference to the 2013 Boston Marathon bombing, which had killed three people and injured many others. Despite the intent to congratulate runners, many found the phrasing inappropriate and offensive.

What was the controversy surrounding Krispy Kreme's 'KKK Wednesday' promotion?

Krispy Kreme UK launched a promotion titled 'KKK Wednesday,' which was meant to refer to Krispy Kreme Club Wednesday, a kids’ event. However, many people associated the promotion with the Ku Klux Klan, a notorious hate group. The company withdrew the promotion after public outrage and issued an apology.

How did Gerald Ratner’s 'total crap' comment impact his company?

Gerald Ratner, the CEO of the Ratner Group, referred to his own products as 'total crap' during a speech. This comment caused a massive backlash and led to a dramatic loss in the company’s value, amounting to £500 million. The term 'Ratner Effect' became associated with the fallout, and the company later rebranded to Signet Group.