This blog is in response to an earlier post by Hongdou Li that addressed the crisis management that is currently taking place by Malaysia Airlines. As his blog post explains, the period following the well-publicized loss of flight HM370 has been a very delicate one for Malaysia Airlines.

Expectedly, MA will continue their losses through a large decline in business after this shocking event. A BusinessStandard article reveals that “nearly 15% of travellers have cancelled their bookings on the airline for the summer vacations”. It’s important for the correct steps to be taken right away to minimize the damage to their entire business. As Hongdou also explains, there are three R’s that need to occur when a crisis has occurred: Regret, Reason, and Remedy. The airline company has already taken the appropriate steps to implement all three of these, however it will still likely face an uphill battle to recapture their previous image.

The situation speaks volumes about a company’s image, and how easily it can be completely damaged in the eyes of a consumer. British Petroleum (BP) is a clear example of how much of an impact a negative image can have. In 2010, BP was centre of a worldwide storm when it leaked huge amounts of oil into the Gulf of Mexico. The spill caused many adverse effects on the environment and as a result, BP’s entire reputation was ruined. BP was blamed all over the world, including an official statement from the White House. Barack Obama stated: “Make no mistake: we will fight this spill with everything we’ve got for as long as it takes. We will make BP pay for the damage their company has caused.”

Without a doubt, BP has still yet to recover from the event. This simply emphasizes how greatly negative press will affect a company. Only time will tell if Malaysia Airlines can recover from their recent crisis.

For many years, Mastercard has used an advertising campaign that is very recognizable. Their commercials have used “priceless” moments in our lives to promote the use of their credit cards. The term “priceless” has become part of Mastercard’s identity. Now, as this article from the Globe and Mail explains, they are seeking to further emphasize this by randomly surprising Mastercard users with random, unexpected, and “priceless” rewards.

The new approach by Mastercard is attempting to gain the support of customers by employing celebrities and athletes to surprise fans. The marketing strategy is definitely not the authodox way of gaining exposure. However, in a world where traditional marketing methods are slowly becoming less and less valuable, the need for creative marketing is at an all-time high. The cost of this unique way of marketing is inevitably high. However, the advertising expenditure is something that Mastercard feels will benefit them greatly in the long run.

By utilizing a costly method, Mastercard are ensuring that they provide customer service excellence. Many companies in the past have strived off of this strategy and ultimately it has led to greater customer loyalty. For example, Nordstorm is a company that focuses a lot of attention of customer service. By doing so, customers are more likely to return to the store of multiple occasions and continue the business relationship.

For Mastercard, competition is fierce. Competing for market share with Visa is a long struggle that Mastercard will continue to face. However, by setting itself apart through focusing on the customer, Mastercard may have found the key to attracting and retaining the majority market share for credit card users.