A Marketer’s Guide to Turning Defeat into Victory

Introduction

About two thousand years ago, there lived a man named Jesus Christ. If we try to understand him objectively, we’d probably think of him as someone who was rejected by his peers, failed politically, did not achieve immediate success, was crucified as a criminal, and betrayed by his close associates. If a modern manager were to judge him, he may not have earned his incentives for wanting to achieve his targets. But today, the story of Jesus Christ is indeed one of the most profound examples of spiritual success. He has left a lasting impact on world history and spiritual belief systems and is the person whom most of the world follows (in terms of religious belief) today.

It may not be inaccurate to state that Jesus is a wonderful example of how a short-run loss could be converted to a greater victory.

The Power of Perception

While this is all good to talk about and discuss, there is a key lesson that we, as marketers, can take from this. Perception is everything.

In the world of marketing, we speak a lot about perception. In fact, marketing is one discipline that exists completely in the mind - the realm of perception. Brands can take advantage of setbacks and provide them with a positive spin - giving them a more human feel. Let me illustrate with a recent example:

Case Study: Zomato's Response to Controversy

In 2019, Zomato found itself at the center of a controversy when a customer canceled his order because the delivery executive assigned to him was of a different religion. The customer's demand for a different delivery executive based on religious grounds and his subsequent tweet about the incident sparked a significant backlash on social media.

Zomato's response to the incident was both swift and principled. The company tweeted, "Food doesn’t have a religion. It is a religion." In the process, Zomato was able to spin the extant narrative to something that it could control and manage. Subsequently, the original controversy fizzled out.

In the process, the firm was able to uphold the values of secularism and inclusivity and build on top of its already strong brand equity.

Learning from Setbacks: The Tata Nano Launch

Another classic example that comes to mind is the Tata Nano Launch. Tata Nano was launched with much fanfare in 2009 as the world's cheapest car, aiming to provide a safe and affordable alternative to the millions of Indian families riding on two-wheelers. Remember the story of Ratan Tata watching a family of four riding along on Mumbai’s streets? However, not all went the way they had planned. The Nano faced several obstacles, including production delays, safety concerns, and the stigma attached to its "cheapest car" tag (remember: perception is everything), which turned negative among potential buyers looking for value beyond just a low price point.

Recognizing these challenges, Tata Motors (the firm that made the Nano) attempted to shift the narrative around the Nano. They tried to make it a symbol of “affordable innovation" by emphasizing its compact yet spacious design, fuel efficiency, and eco-friendliness. But then, by the time these efforts were made, the damage had already been done, and a twist in the tale did not occur. (Interestingly, the last iteration of the Nano was called the Twist).

The car was eventually phased out, but the learnings from the setback helped Tata Motors charter new heights and understand the customer more intimately. You can think of this as a means to create spiritual success from an actual loss.

Concluding Remarks: Ethical Considerations in Marketing Spin

Companies frequently encounter challenges or failures in their products, services, or public relations. However, effective spin often transforms these potential negatives into opportunities for brand enhancement and customer engagement. Consider a product that fails to meet its initial sales targets. This situation can be reframed through strategic marketing spin as a period of "gathering valuable customer feedback" to improve the product. Suddenly, the company is not failing but listening, adapting, and evolving based on consumer needs, turning a potential market loss into a narrative of dedicated customer service and innovation. However, being cognizant of the ethical considerations of creating such ‘spins’ may be very important. The line between spin and manipulation can be thin, and there is a risk of misleading the public or obscuring the truth. The ethical application of spin requires a balance between narrative framing and honesty, ensuring that while perspectives are shaped, they do not deceive or distort reality.