When in doubt deny. Abdul Latif Jameel and its response to the #ToyotaCruiseFailSa story

A storm was kicked up by a remarkable story about a Toyota Land Cruiser that apparently malfunctioned when on cruise control. I wrote briefly about the story a couple of weeks back, but to sum up the incident (you can find the original story here in Al Hayat newspaper in Arabic here) a Toyota Land Cruiser was stuck in cruise control at a speed of 210 kilometers per hour. The car was stopped by police who shot a number of live bullet rounds at the vehicle. Luckily no one was harmed, but the story rapidly went viral on social media and #ToyotaCruiseFailSa was a top trending hashtag in Saudi for days.

Toyota’s distributor Abdul Latif Jameel has crafted a sterling reputation as one of, if not, the best provider of automotive service in the Kingdom. Following the media reports of what happened in Hafr Al-Batin the company apparently tested the car along with several governmental bodies.

To cut the story short, Abdul Latif Jameel arranged a press conference to explain its findings and response to the incident. The seriousness of the incident and its brand implications was underlined by Abdul Latif Jameel’s decision to hold the event on a Friday, the weekend over here in the Kingdom.

After a series of tests on the car and what was Abdul Latif Jameel’s explanation? Hafar Al-Batin incident a deliberate act by car owner: Expert committee (byline from the follow day’s Arab News which can be read here).

In summary, Abdul Latif Jameel came out fighting. It claimed that:
• the cruise control system in the Toyota Land Cruiser is flawless and working in the proper manner
• not a single incident of cruise control system defects had been reported from any Toyota vehicles sold in Saudi Arabia
• the company will never allow a flaw to go unreported

To paraphrase from the article, Abdul Latif Jameel laid the blame for the incident solely on the car’s owner.

I’m not going to jump in and get into the nitty gritty of car mechanics, but would anyone be surprised if a customer didn’t respond after having a near-death experience with your product? What concerned me was that the Saudi media didn’t reach out to the car’s owner to verify what Abdul Latif Jameel’s executives had said. Instead, they reported one side and not the other.

The above is pretty much a bog standard response from firms based in Saudi, to deny there’s a problem or that if something has happened that it is their problem. Would I want to buy a product from a company that shoves the blame onto the product owner? That doesn’t apologize, even if it isn’t their fault?

I had the pleasure to meet with Colin Hensley, Former General Manager of Corporate Affairs & Planning, Toyota Motor Europe, Belgium, at the Saudi Brand and Communications Forum last year. Toyota was put through the ringers in 2010 for all of their recalls. Then the largest car manufacturer in the world, Toyota recalled over 7.5 million cars. Colin told me how Toyota had learned valuable lessons from the incidents and was now putting those lessons into practice. I would have hoped that Toyota would have shared those lessons with Abdul Latif Jameel.

One day after the Abdul Latif Jameel press conference the distributor puts out another news story. Abdul Latif Jameel plans to start car accessories subsidiary. I’m not making this up unfortunately. Let’s hope someone sees the funny side of this, as I don’t.

What do #brands do with #franchises when consumers get #socialmedia angry?

A couple of recent events, both personal as well as public, have highlighted the challenges facing brands when it comes to franchises and customer service. Social media has given consumers the ability to interact directly with brands in ways which were never before possible. Today’s consumers expect a response from brands’ social media feeds, be it on Twitter or Facebook.

So what do brands do when they’re not in full control? How do brand communication teams deal with a consumer who is angry at a franchise? It’s an interesting question, especially for us consumers and comms professionals here in the Middle East.

A number of high profile examples have brought to light the limited scope for communications between consumers here in the Middle East and brands from locations outside of this region. The best case study would be the #noshaya Twitter-led campaign against the Kuwaiti-based retailer M.H. AlShaya. The call to boycott the company’s stores back in December was a response to AlShaya’s decision to stop providing cash refunds to customers throughout its stores.

AlShaya owns tens of franchises across the Gulf, including Top Shop, BHS, and H&M. It’s by far the largest retailer in the Middle East and thousands of Saudi consumers took to social media to vent their anger at AlShaya’s decision (for the full reasons behind the boycott please see this previous blog post).

After only a couple of hours of the campaign going live online activists started messaging the retail brands directly.

https://twitter.com/#!/Maialshareef/status/143021336778903553

Activists sent hundreds of messages to the official Twitter accounts of retailers who had franchise agreements with M.H.AlShaya. While I may be wrong (and I hope I am) I didn’t see a single response from these retailers. These retailers weren’t helped by promoting their own refund policies on their websites, most of which were much more generous that AlShaya and included cash refunds on returned products – the activists’ key demand.

Another consumer-led campaign which hit the headlines this week relates to a nightmare incident in Saudi involving a Toyota Landcruiser which was stuck in cruise control at a speed of 210 kilometers per hour. For those Arabic readers out there check out this harrowing news piece from Al-Hayat newspaper. #ToyotaCruiseFailSa has been a top trending hashtag in Saudi for the past two days.

Out of all the car brands in Saudi Toyota probably has the best reputation for reliability and customer care. Does Toyota rely on its distributor Abdul Lateef Jameel to step in a repair the public relations damage done (so far, there’s been little word from the distributor) or do they step in themselves to reassure Saudi drivers? The response of one Toyota Landcruiser owner is typical of those trending the topic on Twitter.

The Arabic translates as, “I haven’t used the cruise control since buying the car because of this story.”

To ask again, when do brands step in to protect their brand value? How or what do they agree with their franchise and distributor partners as to who is responsible for what? Social media has changed the communications sector in ways that few could have envisaged. One short but interesting article online has found that consumers who contact the brand via social media are much more likely to expect a response to their queries. Check out The State of Social Marketing 2011 – 2012 by Brian Solis

I wonder how many of us in communications are taking note of what is happening around us before the same thing happens to the brands that we are entrusted with?

Is your organization listening or talking to anyone?

I attended a fascinating event this week in Riyadh (that’s not something I often say). The Saudi Brand and Communication Summit offered attendees a chance to discuss and share their own communications and marketing experiences. While there do seem to be companies out there who listen to their marcomms staff, the feeling I got was that companies need to do much more if they want to reach out both to their customers and employees.

A number of presentations were excellent. Possibly most impressive was Colin Hensley, Former General Manager of Corporate Affairs & Planning, Toyota Motor Europe, who talked about his experience of the recall crisis that affected Toyota last year. Equally impressive were Piers Schreiber, Vice President, Corporate Communications & Public Affairs of the Jumeirah Group who was discussing how to position a luxury brand across multiple markets, and Olaf Brinkmann, Group Communications Executive Manager at Saudi-based electrical manufacturer alfanar when talking on business to business comms. The irrepressible Saudi-based marketing consultant Said Aghil Baaghil shared his views of what Saudi companies think of marketing (this man certainly holds no punches when he describes the lack of understanding among Saudi business owners towards marketing as a discipline).

Each and every one of the speakers stressed on the basics, namely that a brand isn’t just a slogan or a logo. A brand is your company’s vision which has to be lived by every single employee in the firm. While the speakers were probably preaching to the converted what was striking was how all of them mentioned the same challenges: getting management on board; explaining to executives the benefits of effective communications; trying to find local talent.

Having worked in marcomms for a fair few years in the Kingdom I can relate to their frustrations. All too often companies, even multinationals, simply go out and sell. They’re rarely interested in educating customers, to create pull marketing that’ll result in the customer approaching them. Even on an individual basis, executives are unwilling to talk externally to the media. I was once told (only recently, I may add) that we don’t want to attract too much attention, it may get us noticed by the wrong people. It can be even more frustrating working with marcomms people outside of Saudi, who don’t understand the difficulties we go through in getting anything done over here.

Communications and marketing can and do do wonders for a company’s perception, positioning and profits. Some of the examples shared by the speakers were remarkable. Jason Ong, Area Director, Middle East & Africa at the Singapore Tourism Board explained that visitor numbers to Singapore increased by approximately fifty percent following the roll-out of their last marketing campaign. While it’s always a struggle to quantify return on investment for marcomms activities, a brand that sells products such as Apple, Nike, or Nokia is priceless.

As communicators the main problem we face is understanding. Why spend money on marketing or communications, I was often asked when I was on the agency. It’s simple. My job is to sell your firm, both internally and externally. As individuals we aim to make positive impressions on those we meet. We should do the same as companies. Communications and marketing are not wishy-washy undefined disciplines. They’re roles that are essential to the well-being and growth of any company.

I’m looking forward to next year’s Saudi Brand and Communications Summit in Riyadh. Why? Partly because of the insights of the speakers. Also because I enjoyed networking at the event. I’ll be most interested in hearing if we’re making any progress in getting our management to understand why marketing and communications are so important. Fingers crossed we’ll make headway here, but as cynical as I am I’m not holding my breath for any epiphanies between now and then.