Harvard Case - United Breaks Guitars
"United Breaks Guitars" Harvard business case study is written by John Deighton, Leora Kornfeld. It deals with the challenges in the field of Marketing. The case study is 13 page(s) long and it was first published on : Jan 6, 2010
At Fern Fort University, we recommend a comprehensive brand recovery strategy for United Airlines, focusing on rebuilding trust with customers and enhancing their brand image. This strategy involves a multi-pronged approach encompassing:
- Transparency and Empathy: Acknowledging the customer's experience, apologizing sincerely, and offering immediate compensation.
- Customer-Centric Initiatives: Implementing robust customer service protocols, empowering employees to resolve issues quickly, and investing in technology to improve the travel experience.
- Proactive Communication: Utilizing social media and traditional media to actively engage with customers, address concerns, and demonstrate a commitment to change.
- Brand Revitalization: Developing a new brand positioning emphasizing reliability, empathy, and customer satisfaction.
2. Background
The 'United Breaks Guitars' case study revolves around the viral video of a musician, Dave Carroll, whose guitar was damaged by United Airlines. The video, which went viral on YouTube, brought significant negative attention to United Airlines, impacting their brand image and customer perception. The case highlights the power of social media in shaping public opinion and the importance of effective crisis management in the digital age.
The main protagonists are Dave Carroll, the musician who experienced the damaged guitar, and United Airlines, the company responsible for the incident.
3. Analysis of the Case Study
This case study can be analyzed through various frameworks:
1. Consumer Behavior Analysis:
- Negative WOM (Word of Mouth): The video went viral, creating a negative buzz and impacting consumer perception of United Airlines.
- Social Media Influence: The incident highlights the power of social media in shaping public opinion and influencing purchasing decisions.
- Emotional Response: The video evoked strong emotions of anger, frustration, and disappointment, leading to a decline in brand loyalty.
2. Competitive Analysis:
- Industry Competition: The airline industry is highly competitive, with numerous players vying for customer loyalty. The incident negatively impacted United's competitive advantage.
- Reputation Management: The case highlights the importance of managing brand reputation effectively, especially in the digital age.
3. Brand Management:
- Brand Equity Erosion: The incident significantly damaged United's brand equity, leading to a decline in customer trust and loyalty.
- Brand Positioning: United's brand positioning focused on efficiency and convenience, but the incident exposed a lack of customer empathy and service quality.
4. Marketing Management:
- Crisis Communication: United's initial response was inadequate, failing to address the customer's concerns effectively.
- Digital Marketing: The case highlights the importance of utilizing digital marketing strategies for crisis management and brand recovery.
4. Recommendations
1. Immediate Response and Apology:
- Issue a public apology to Dave Carroll and all affected customers.
- Offer immediate compensation for the damaged guitar and any inconvenience caused.
- Acknowledge the customer's experience and express empathy for their frustration.
2. Customer Service Enhancement:
- Implement a comprehensive customer service training program for employees.
- Empower employees to resolve customer issues quickly and effectively.
- Invest in technology to streamline customer service processes and improve communication.
3. Proactive Communication:
- Utilize social media platforms to engage with customers, address concerns, and demonstrate a commitment to change.
- Engage with influencers and thought leaders to build positive brand sentiment.
- Publish transparent reports on customer service improvements and initiatives.
4. Brand Revitalization:
- Develop a new brand positioning emphasizing reliability, empathy, and customer satisfaction.
- Launch a comprehensive advertising campaign showcasing the new brand values.
- Invest in customer loyalty programs and initiatives to foster long-term relationships.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with United's mission of providing safe and reliable air travel.
- External Customers and Internal Clients: The recommendations prioritize customer satisfaction and employee empowerment.
- Competitors: The recommendations aim to regain competitive advantage by focusing on customer service and brand image.
- Attractiveness: The recommendations are expected to improve customer satisfaction, brand loyalty, and ultimately, profitability.
6. Conclusion
The 'United Breaks Guitars' case study serves as a stark reminder of the importance of effective crisis management, customer service, and brand management in the digital age. By implementing a comprehensive brand recovery strategy, United Airlines can rebuild trust with customers, enhance their brand image, and regain their competitive edge in the airline industry.
7. Discussion
Alternative approaches include:
- Ignoring the incident: This approach would have been highly detrimental, further damaging the brand image and alienating customers.
- Legal action: This option might have been counterproductive, further escalating the situation and generating negative publicity.
Key assumptions:
- The recommendations assume that United Airlines is committed to genuine change and improvement.
- The recommendations assume that customers are willing to give United Airlines a second chance if they demonstrate a genuine commitment to customer satisfaction.
8. Next Steps
- Immediate Response: Issue a public apology and offer compensation within 24 hours.
- Customer Service Improvement: Implement a new customer service training program within 3 months.
- Brand Revitalization Campaign: Launch a new advertising campaign within 6 months.
- Ongoing Monitoring: Continuously monitor customer feedback and social media sentiment to assess the effectiveness of the brand recovery strategy.
By taking these steps, United Airlines can transform the 'United Breaks Guitars' incident into a catalyst for positive change, ultimately strengthening their brand and fostering long-term customer loyalty.
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Case Description
When social media propagate a complaint about poor customer service, an international media event ensues. How do viral videos spread and what can firms do about them? This case dissects an incident in which a disgruntled customer used YouTube and Twitter to spread a music video detailing United's mishandling of his $3,500 guitar and the company's subsequent refusal to compensate him. The song was called "United Breaks Guitars." Within one week it received 3 million views and mainstream news coverage followed, with CNN, The Wall Street Journal, BBC, the CBS Morning Show, and many other print and electronic outlets picking up on the story. The mechanics of viral propagation are uncovered and the limited opportunities for response by the firm are revealed. The case supports the notion of the Internet as an insurgent medium, better at attack than at defense.
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