Sanlu Company Case Study

Branding is more than a name, term, design and symbol. A brand is created and influenced by people, perception, words, messages, visuals, culture, style, opinions, news media and especially social media. Earning and maintaining a good reputation is challenges for new and established businesses. When bad publicity emerges, businesses could be portrayed as irresponsible, dishonest or appear to be only looking out for their best interests. Although it is possible to make a good name for your business on a local or national scale, doing so can be an uphill battle, especially in the face of bad publicity.

Brand association refers to the deep-seeded attitudes and feelings a customer has toward a product or company. When brand association is negative,

The letter is about "Sanlu infant formula milk powder" major security incidents, many children and their families to cause serious injury, we are very sad! Sanlu Group express to you our most sincere apologies! At 9:00 on September 15, the company was informed of the news conference, suspected of adding melamine to raw milk in my company has made significant progress in the case, 19 suspects have been under criminal detention, and two of them were arrested according to law. I sincerely thank the public security departments around the clock, worked tirelessly to solve the case quickly. Sanlu group solemnly declare, the production of products before August 6 will recall back. While the production after August 6 also can return by customers if consumers have objections. At the same time, Sanlu group will do whatever it takes to actively sick infants rescue work. Finally, once again to consumers and sick infants and their families sincerely

Jiang Xin Hua were successfully bid Sanlu Group with 7.3 million Yuan price of competing. The new company main products was grain organic food.

The toxic milk powder case had created the bad perception to Sanlu brand and lead to loss of trust. Regaining trust can be difficult and time-consuming. Mistrust expressed by word of mouth and through social media can take years to repair and often can only be remedied by the number of vocal supporters eventually outnumbering the critics. Brand equity can suffer long-term damage as a result of toxic milk powder case.

The toxic milk powder case also effects on Sanlu’s product sales. All user are allow to return the milk powder to Sanlu company after the toxic milk powder news had proved by government. Sanlu’s sales were decline sharply. Besides that, the toxic milk powder news also damages the long-term success of Sanlu Company. Store owners have negative opinions, their choices ultimately affect their customers ' options. In the end Sanlu Group 's core assets along with seven factories were bid in the