Absolut Vodka Case Study
Absolut Vodka, the drink of choice for many, recently discovered that its online reputation is just as valuable as its consumers’ perceptions offline. In April 2008, Absolut Vodka released a new advert that depicted most of the US Southern States as a part of Mexico.
To the surprise of Absolut Spirits, it started a backlash of negative responses from consumers online that lasted for five months, even after they had pulled the advert. The ad that appeared in the Mexican Celebrity Lifestyle magazine Quién in April and also on several billboards in and around Mexico generated much controversy especially online.
Days after the advert hit the streets it was picked up online and comments from consumers were posted from all over the world but specifically the US. A Los Angeles Times blog posting from the 4th of April 2008 initiated thousands of responses with the most recent ones in August 2008. A YouTube video showing a clip from CNN currently has over 30 000 views, 1309 comments and still new ones are still being added daily.
Absolut Vodka soon realised that over the space of a few days, their reputation online had become relatively tarnished. Scrambling to make this right they pulled the advert and posted a short apology on the Absolut blog on 6 April 2008. Company representative Paula Eriksson, VP Corporate Communications for Absolut Spirits, published a press release that seemed to escalate the situation even more:
Paula, you ignorant fool…”During the weekend we received several comments…” HA!!!
3,000 comments so far on your web, hundreds of emails and phone calls, millions of people upset and willing to reject your products and you want to waive it off with a silly “several comments” routine?!?
Come off it Paula ~ you are fools to the highest degree too blind in your idiot Ultra PC cool to realize the stuff you stepped in.
Bad management and stupid spin will not erase that. This is one for the text books, proof that liberals who run companies are still as stupid as their ideas… 4/6/2008, 8:30 pm.
While the company was dealing with thousands of phone complaints, the internet rapidly filled with public opinion. Customers posted their own videos to YouTube, started several sites calling for boycotts against Absolut and made thousands of comments on various blogs. One thing became clear in just a few days: The power had shifted from Absolut Vodka to their consumers and the brand was facing a reputation crisis.
In the new world of radical transparency the path to business success is obvious. Show what you are doing, reveal your processes, acknowledge your mistakes and participate fully in conversations that concern you. Anything less and you, like Absolut, will learn this lesson the hard way.
