Where Should Competitors Draw the Line?

A few weeks ago we wrote about Gap’s branding misfire when they tried to launch a new logo, and the horrible backlash they received on the web. After trying unsuccessfully to get their audience on board with the change, Gap finally gave into the pressure and reverted to their old logo. The attempted switch was just about as problematic as it could have been for the company and was surround by a lot of negativity and ill will from their fans. We think it’s pretty safe to say that after the snafu, the popularity and sentiment towards the Gap as a brand was lowered significantly.

That’s why after reading about Lululemon’s reaction to the issue we were disappointed to see another brand kicking the Gap while it was down (so to speak).

We were first alerted to the situation by a post on the Canadian Marketing Blog, where we were told that Lululemon, in an attempt to mock the Gap’s poor decision by making a fake Lululemon logo that was clearly a replication of the Gap’s suggested logo replacement. Lululemon post the logo on their Twitter page as well as their corporate site’s homepage (see the screenshots below from the Canadian Marketing Blog post).





(Gap logo image from Geekosystem.com)

The post strongly criticized Lululemon’s decision saying that, “One could say Lululemon were just being humorous. It was “light-hearted fun” after all. But aren’t there other ways to achieve that without it being at the expense of someone else’s misfortune? Surely that isn’t difficult for such a creative brand like Lululemon?”
Now, being based in Vancouver, we’re big fans of Canadian companies (especially ones founded here) that have had major local and international success like Lululemon. However, having said that, we were also surprised to see that they had made this choice, regardless of Gap’s position as a competitor to their company. While we don’t agree with Lululemon’s tactics, they are a competitor, and most likely the Gap’s mistake and the subsequent negative reaction has been beneficial for Lululemon and other retail stores that compete directly with the Gap. So is what Lululemon did (they’ve taken the logo down now) all in good fun, or was it a tasteless and negative marketing move?

Was it responsible for Lululemon to mock the Gap?

With the web being the social environment that it is today, it is much more volatile because it is controlled by brands’ audiences and brands should be more accountable for their actions because their customers are directly connected, and much more able to share their brand sentiments and opinions. While there were mixed reviews from Lululemon's fans (see below screenshot) being a fan of Lululemon doesn’t make everyone less put off by the fact that they’re mocking another brand when they’re down, if anything, it gives many people increased sympathy for  the Gap instead. It is certainly true that many people will see it as a funny joke, and many of Lululemon's fans will stand by the action, but is it worth losing the positive sentiments of the few who take it badly?



So—when it comes to your brand, and your brand’s actions, where should you draw the line?

1. Remember that your brand can’t magically protect you. It doesn’t matter who you are, or what brand you work for, if you do something that your fans don’t like, you’re going to hear about it (along with the rest of the social web). This happened to the Gap when their fans didn’t like their new logo, and it’s happening now to Lululemon because of their reaction (this post is a prime example).
2. Don’t let it get personal. It doesn’t matter how much you personally (or your company) dislikes another brand, or what’s happened in the past. All that matters is that once you take that battle to a public, social space (like Twitter for example) things are going to get ugly. Period. Whether it’s the other company’s fans, or your own, some people (and it’s unlikely it’s going to just be your competitor’s fans) are going to think that what you did is wrong. 
3. If you’re not sure, don’t do it. When it comes to having a strong brand, it’s all about having customers and fans that love you. Do you really want to risk that on a marketing initiative that you’re not sure of? If you’re even in a situation where you’re thinking about implementing a strategy that you’re not sure if your customers are going to like or not,  do some further research, as them what they think or just scrap the whole idea altogether, but don’t just jump in and hope that you’re right.

Posted by Amberlie Denny at November 2, 2010 8:15 AM

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