• D&G's Marketing Missteps in China (A): How to Balance Fashion Brand Strategy and Cultural Sensitivity?

    On 18 November 2018, Dolce & Gabbana S.R.L. (D&G) released three short videos on Instagram, Facebook, and Twitter as well as Sina Weibo in China to promote its first-ever fashion show in mainland China. The campaign was specifically designed to drum up excitement about an important catwalk event to be held at the Expo Center of Shanghai on 21 November 2018. However, the videos did not create the intended positive effect. In fact, the incongruous or extreme presentations in the videos jeopardized the entire promotion campaign. From the Chinese audience's perspective, the D&G videos were not entertaining but inappropriate, offensive, and racist. The result enraged the Chinese audience and fueled a heated online debate. Within 24 hours, under public pressure, D&G was forced to remove the videos from its Weibo promotion channel. While many Chinese media users were demanding a formal apology from D&G for the videos, the company allowed the debate to simmer and boil for the next few days. This case is the first case of a three-part case series. It can be used on a stand-alone basis or in combination with Case B (D&G's Marketing Missteps in China (B): The Deepening Crisis) and Case C (D&G's Marketing Missteps in China (C): The Epilogue).
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  • D&G's Marketing Missteps in China (B): The Deepening Crisis

    On the morning of 21 November 2018, Diet Prada, an Instagram account that uncovered the dark secrets and stories about the fashion industry, posted alleged text messages between Dolce & Gabbana S.R.L. (D&G)'s cofounder Stefano Gabbana and fashion writer Michaela Phuong. In the exchange, Stefano complained about the removal of D&G's videos (#DGLovesChina and #DGTheGreatShow) from Chinese social media Weibo amid an onslaught of criticisms. Stefano's alleged anti-China comments on Instagram, coupled with the D&G videos that were perceived as racist and offensive, prompted a slew of outraged responses not only from the Chinese consumers but also from its own brand ambassadors and celebrity partners in China. Many immediately severed ties with the brand. Following this intense backlash from celebrities and consumers, a number of retailers took swift action to sever connections with D&G and removed its products. Bowing to the public backlash from the controversial videos and the Instagram post, the founders of D&G made a personal apology through a video address. This case is a continuation of D&G's marketing missteps in China (A).
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  • D&G's Marketing Missteps in China (C): The Epilogue

    In November 2018, Dolce & Gabbana S.R.L. (D&G) faced a serious brand crisis following the release of three short videos on Instagram, Facebook, and Twitter as well as Sina Weibo in China to promote its first-ever fashion show in mainland China. The brand crisis was further exacerbated by derogatory comments alleged to have been made by the cofounder, Stefano Gabbana, on Instagram. The failure of D&G to take swift action to quell the controversy triggered by the videos had resulted in cancellation of the Shanghai catwalk event and a public relations disaster. This case summarises the reputational damage caused by the crisis and initial marketing efforts made by D&G to rebuild its image in China from the end of 2018 up to May 2019. It is the third case of a three-part case series and should be used in conjunction with Case A (D&G's Marketing Missteps in China (A): How to Balance Fashion Brand Strategy and Cultural Sensitivity?) and Case B (D&G's marketing missteps in china (B)-The Deepening crisis).
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  • Nike and Liu Xiang: Crisis Management in Celebrity Endorsement

    On 18 August 2008, Liu Xiang, China's biggest celebrity sports icon, withdrew from the 110-meter hurdles event at the 2008 Beijing Summer Olympic Games due to an Achilles injury. Liu was China's first-ever Olympic gold medalist in men's track and field; his victory at the 2004 Athens Olympics had made him an instant national hero. Since then, he had become the most marketed individual in China. Liu's withdrawal from the Beijing Olympics not only caused disappointment among Chinese people who had high expectations for him defending his title on their home soil, but was also a blow to his sponsors, including Nike, who had invested millions of dollars in his celebrity. As soon as the news broke, Nike tweaked its advertising campaign and launched a new tagline: "Love competition. Love risking your pride. Love winning it back. Love giving it everything you've got. Love the glory. Love the pain. Love sport even when it breaks your heart." Would Nike be able to turn Liu's withdrawal from the Beijing Olympics into an opportunity to further boost its brand image? Against the backdrop of increasing nationalist sentiment in China, what were the implications of Liu's withdrawal? How could Nike avoid or minimize the losses that might result from Chinese consumers' disappointment?
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  • Carrefour China and the Olympic Torch Relay: Managing Corporate Crisis amid Evolving Expectations of Multinational Firms

    Prior to the 2008 Summer Olympics in Beijing, Chinese people were outraged by repeated interruptions of the Olympic torch relay in Paris on 7 April 2008. Soon after the incident, LVMH Group, a shareholder of the retailer Carrefour, was accused by some Chinese internet users of donating money to the exiled spiritual leader of Tibet. The rumor spread on the internet quickly, leading to calls for a large-scale boycott of Carrefour on 1 May 2008. Despite the souring public sentiment, Carrefour did not provide a consistent response to the public, even after one whole week of the crisis. The situation deteriorated quickly, with demonstrations taking place in various cities across China. Meanwhile, further rumors about Carrefour's anti-boycott promotions were circulating on the internet. How should the local management react to the public relations crisis and how can Carrefour manage its corporate image going forward?
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  • SK-II: Damage Control in China

    In 2006, SK-II, a skin care brand, was close to becoming a billion-dollar brand for Procter and Gamble ("P&G') and China was seen as a key source of future growth and is soon to be the largest market in the world. On 14 September 2006, Chinese authorities banned the sale of some of P&G's skin care products in the SK-II line. P&G feared that public protests against these products could spread and infect the brand equity of its other products in the country. Everything that P&G tried to resolve the scandal failed, leaving the media, consumers and government feeling enraged. P&G pronounced confidence in its SK-II products in China, saying it would work with government agencies to resolve the problems, but repeatedly botched public relations and was accused of "arrogance" toward consumers. Although P&G had experience in defending its SK-II products in court due to a lawsuit the previous year, the company seemed to have learned nothing about preparing for a future crisis. P&G, one of the most trusted corporate brands in the world, was close to losing Chinese consumers' faith in SK-II and perhaps in P&G as well just by the poor way it handled the crisis. Many analysts claim that doing business in China is significantly different from doing business in developed markets. When it comes to public relations, how can the rules be so different that even experienced country managers repeatedly get it wrong? The case allows for discussion on how to respond to a public relations crisis, salvage brand equity after a disastrous incident, react to a situation and pre-empt damaging information in the media.
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  • EDB and Friends: Reviving a Mature Brand through Interactive Online Marketing

    In Hong Kong in 2001, a leading eye drop brand's position was threatened. Although it was a top selling brand (from here on referred to as EDB), overall eye drop usage was declining and the entire category was shrinking. Furthermore, customers showed no particular brand preference and price alone determined sales. To better understand the situation, the company surveyed EDB's target customers and discovered that its brand image was outdated and that its core users had aged with the brand. Thus, in order to sustain a long-term customer base, EDB needed to realign with its target audience and reposition the brand. The company hired Beyond Interactive to help them face these challenges. The Beyond team came up with a one-to-one interactive online campaign, EDB and Friends, aimed at achieving three objectives: reposition the brand towards a younger audience, rejuvenate the brand image, and establish brand preference. With its games, its likable virtual personality, and relevant content, EDB and Friends helped the company achieve its objectives and the award-winning campaign was a commercial success. Introduces and illustrates the following concepts: one-to-one marketing, brand revitalization, and repositioning. Provides a best-practice example of a creative online marketing campaign.
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  • Creative Advertising: Sunday Communications Ltd.

    Mobile network operator Sunday Communications Ltd. burst onto the scene in 1997 with an innovative approach to branding and promotion. Its "feels like Sunday" series of television commercials depicting irreverent attitudes and typical person-presenters struck a chord with Hong Kong customers and generated an initial interest that surpassed expectations for the late-entry mobile network provider. Encouraging initial sales figures coupled with a highly visible brand positioned Sunday to be a serious contender within the acutely competitive mobile phone sector. But despite its successes, Sunday claimed a mere 9.8% of the market in 2000 and 8.3% in 2005. With the mobile phone sector in Hong Kong operating at maximum penetration, would the lure of the Sunday brand prove strong enough to sustain a loyal subscriber base long term? Would its irreverent brand image eventually wear thin?
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