Harvard Case - Masglo: A Media Scandal
"Masglo: A Media Scandal" Harvard business case study is written by Silvana Dakduk, Ricardo Di Carlo. It deals with the challenges in the field of Marketing. The case study is 24 page(s) long and it was first published on : Nov 30, 2021
At Fern Fort University, we recommend that Masglo implement a comprehensive brand recovery strategy focusing on transparency, authenticity, and community engagement. This strategy will involve a multi-pronged approach encompassing crisis communication, brand repositioning, and a renewed focus on ethical business practices.
2. Background
Masglo, a leading nail polish brand in Colombia, found itself embroiled in a media scandal after a video surfaced online showcasing unethical manufacturing practices. This incident severely damaged the brand's reputation, leading to public outcry, boycotts, and a significant decline in sales. The case study highlights the challenges faced by Masglo in navigating this crisis and restoring consumer trust.
The main protagonists in this case are:
- Masglo: The company facing the reputational crisis.
- Consumers: The target audience affected by the scandal and the company's actions.
- Media: The platform through which the scandal was amplified and public opinion shaped.
3. Analysis of the Case Study
To analyze the situation, we employ a framework combining SWOT Analysis and PESTEL Analysis.
SWOT Analysis:
Strengths:
- Strong brand recognition and established market presence in Colombia.
- Extensive product portfolio catering to diverse consumer needs.
- Loyal customer base with a history of positive brand association.
Weaknesses:
- Damaged reputation due to unethical manufacturing practices.
- Lack of transparency and accountability in communication.
- Limited resources for crisis management and brand recovery.
Opportunities:
- Opportunity to rebuild trust through authentic communication and actions.
- Potential to leverage the crisis to improve ethical standards and practices.
- Chance to engage with consumers through social media and build a stronger community.
Threats:
- Continued negative media coverage and public scrutiny.
- Potential for competitor brands to capitalize on the crisis.
- Loss of market share and long-term brand damage.
PESTEL Analysis:
- Political: The Colombian government's stance on ethical business practices and consumer protection could influence the company's recovery efforts.
- Economic: The economic climate in Colombia could impact consumer spending and the company's ability to invest in brand recovery.
- Social: Public sentiment towards ethical practices and corporate responsibility is evolving, requiring Masglo to adapt its approach.
- Technological: The rise of social media and online platforms amplifies the impact of scandals and necessitates a proactive digital strategy.
- Environmental: The company's commitment to sustainability and environmental practices could influence consumer perception.
- Legal: The legal implications of the scandal and potential lawsuits could impact the company's financial stability.
4. Recommendations
Masglo should implement the following recommendations to recover from the media scandal:
1. Immediate Crisis Communication:
- Transparency and Apology: Issue a public statement acknowledging the unethical practices, apologizing to consumers, and outlining concrete steps to address the issue.
- Fact-Checking and Transparency: Provide detailed information about the investigation, corrective actions, and the steps taken to prevent future occurrences.
- Social Media Engagement: Actively engage with consumers on social media platforms, addressing concerns, and demonstrating a commitment to change.
2. Brand Repositioning:
- Ethical Values: Reposition Masglo as a brand committed to ethical manufacturing, fair labor practices, and sustainability.
- Community Engagement: Engage with local communities and support initiatives promoting ethical business practices.
- Transparency and Accountability: Implement a transparent supply chain management system and establish an independent oversight board to ensure ethical practices.
3. Marketing Strategy:
- Focus on Authenticity: Emphasize the brand's commitment to transparency, ethical values, and community engagement in all marketing communications.
- Content Marketing: Create engaging content showcasing the company's commitment to ethical practices and its positive impact on employees and communities.
- Influencer Marketing: Partner with ethical influencers who resonate with the target audience and promote the brand's values.
4. Product Development:
- Sustainability: Develop eco-friendly product lines using sustainable ingredients and packaging.
- Innovation: Invest in product development focused on ethical sourcing and manufacturing processes.
- Transparency: Clearly label products with information about their sourcing, manufacturing, and environmental impact.
5. Customer Relationship Management:
- Customer Feedback: Establish a robust customer feedback mechanism to gather insights and address concerns.
- Loyalty Programs: Implement loyalty programs rewarding customers for their continued support and engagement.
- Personalized Communication: Use data analytics to personalize communication with customers and provide tailored experiences.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Masglo's existing strengths in product development and marketing, while emphasizing ethical values and community engagement.
- External Customers and Internal Clients: The strategy prioritizes regaining consumer trust and building a strong relationship with employees, ensuring a positive impact on both internal and external stakeholders.
- Competitors: The recommendations differentiate Masglo from competitors by emphasizing ethical practices and sustainability, creating a unique value proposition.
- Attractiveness - Quantitative Measures: While quantitative measures like ROI are difficult to determine in the short term, the long-term impact of regaining consumer trust and building a strong brand reputation is significant.
- Assumptions: The recommendations assume that Masglo is committed to implementing the necessary changes and that consumers will respond positively to the brand's efforts to rebuild trust.
6. Conclusion
Masglo's media scandal presented a significant challenge, but it also presented an opportunity for the company to emerge stronger. By embracing transparency, authenticity, and community engagement, Masglo can rebuild consumer trust, reposition its brand, and achieve sustainable growth.
7. Discussion
Alternative options include:
- Ignoring the scandal: This would likely lead to further damage to the brand and potential legal repercussions.
- Issuing a generic apology: This would be perceived as insincere and could further erode consumer trust.
- Focusing solely on marketing campaigns: This approach would be superficial and unlikely to address the root cause of the crisis.
The recommendations outlined in this solution are based on the assumption that Masglo is genuinely committed to ethical practices and is willing to invest in the necessary changes. If these assumptions are not met, the recommendations may not be successful.
8. Next Steps
Masglo should implement the recommendations outlined in this solution immediately. The following timeline outlines key milestones:
- Week 1: Issue a public apology and announce the investigation into the unethical practices.
- Week 2: Begin engaging with consumers on social media and address concerns.
- Week 4: Share the findings of the investigation and outline corrective actions.
- Month 1: Launch a new marketing campaign focused on ethical values and community engagement.
- Month 3: Implement a transparent supply chain management system and establish an independent oversight board.
- Month 6: Begin rolling out sustainable product lines and innovative product development initiatives.
By taking these steps, Masglo can begin to rebuild its reputation, regain consumer trust, and emerge from the crisis stronger than before.
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Case Description
This case explores how crisis management planning is a fundamental part of designing a communication plan. The case narrates a social media storm that affected Masglo, Colombia's bestknown and market-leading brand of nail polish. One of the company's growth strategies was to follow the global tendency of giving its products innovative and suggestive names to make them memorable and easily recognizable. The brand used names like Golosa (Rapacious, 2011), Fufurufua (Whore, 2012), Zángana (Hussy, 2013), Buscona (Slut, 2015) and Ñera (Street Girl, 2015). These labels are understood by Colombians as being at the limit of socially accepted female behavior, due to their sexual, suggestive and vulgar connotations. A Masglo fan page user questioned this strategy and inspired a wave of criticism and comments that went beyond the confines of social media. This case tells the origin story of these names, and explores the reaction to the fan page post, and it's impact in the media. The situation provides context for discussion on how to develop a media crisis management plan.
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