Exxon versus BP: A Battle of Oil Disasters and PR Catastrophes

Ralph's picture

It has been more than 20 years since the Exxon Valdez struck a reef off the coast of Alaska and began leaking more than 10 million gallons of oil into Prince William Sound.  I still have trouble buying gas, or even stopping for a Pepsi, at an Exxon Station.  To me it is the best example ever of a brand being forever damaged by a single event.

Yet, here we are in the midst of an oil disaster that has the potential to dwarf the Exxon incident, and I had no problem stopping at a BP station this past weekend for a fill-up.   Why is that?  How can a disaster that is so much closer to the shoreline that I personally enjoy have less of a brand impact on me?

Yes, the leak in the Gulf of Mexico is a public relations catastrophe for BP.  After all, BP is the company that has done such a great job over the last few years building an image as the oil company that is green.  Just look at that Green and Yellow sunburst logo.  All of that work has now gone to waste, or has it?

In the face of a terrible incident, I think they have done a pretty good job.  Go to the BP website and they are right out front about what is happening and what they are trying to do.  They appear to be quite open.  Then have admitted mistakes (slowly) and they are now even prepared to offer to pay “all necessary” clean-up costs.

Somehow an accident that began as dramatically as the Gulf disaster put BP automatically in a better position than Exxon was.  Exxon’s disaster was a combination of inexcusable human errors.  I remember the president of Exxon appearing on live network television a few days after the spill.  He appeared removed, said he had not read the full report on the incident and showed no sympathy.

BP seems sorry, they appear ready to fight to save the coast, whatever the cost.

Now, compare that to Toyota.  I believe Toyota falls into the same camp for me as Exxon.  I will not now, or ever, purchase at Toyota product (any brand).  They appeared from the beginning as defensive, denying, defiant and never wanting to say they were sorry.  Go to the Toyota website and you see a headline for a sale.  Even their special recall section of the website feels forced and legal.

Every brand is a product of its history, with its present actions always being paramount to public sentiment.  Toyota and BP are each living nightmares of diminished brand equity.  Both brands are forever tarnished.  Toyota can never again be the safe, caring, high-quality leader it was just a few months ago.   BP can, however, I believe someday again be a leader in “green” among oil/energy companies.  It will be hard and there need to be many years and cleaned beaches between then and now.

Crisis communications.  Crisis public positions.  Speed of crisis response.  Honesty and emotion in crisis response.  We are all witnessing some of the best case studies ever in these categories.

Who do you think is doing the better job?

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