The high cost of brand failure

By triggering a catastrophic oil spill in 2010, BP made a mockery of its own carefully orchestrated $200 million marketing campaign to tout the company’s green values. One year later, BP continues to pay a price for failing to deliver on its brand promise to move “Beyond Petroleum.” As The Wall Street Journal reported on September 7:

  • The company’s share price is 44-percent lower than it was when the April 2010 Gulf of Mexico disaster occurred – a rig explosion that killed 11 workers and inflicted harsh damage with far-reaching impact on anyone who calls Earth home.
  • BP has lost nearly $80 billion of its market value since the disaster occurred.

An energy fund manager interviewed by The Wall Street Journal said, “The impression is that events are happening to BP, rather than BP shaping events. There’s a sense that the company is not in charge.”

Considering that BP is responsible for dropping a massive pile of dung on the world, I am relieved to know BP is not “shaping events.”

Actions speak louder than words, indeed.