CASE STUDY: McKinsey, KPMG targeted as Gupta scandal widens.
2.1 As the marketing manager of KPMG, examine the role of Public Relations and the tools you would employ to reduce the impact of the bad publicity and retain current and lost clients, which include Barclays Africa Group, the country’s third-largest bank, Old Mutual, Africa’s biggest insurer, Sibanye Gold, the country’s biggest gold producer and Standard Bank Group, Africa’s biggest bank by assets. Justify you answer giving reasons why you would choose these tools and the benefits of these tools given the current scenario KPMG is facing. (15)
As the marketing manager of KPMG, I would utilize the following tools of Public Relations to reduce the impact of the bad publicity and retain current and lost clients:
1. Crisis Communication Plan: Develop a comprehensive plan to effectively address and communicate about the issues faced by KPMG. This would include clear messages, designated spokespersons, and communication channels to ensure a consistent and controlled flow of information. This will help restore trust and assure clients of the steps being taken to rectify the situation.
2. Media Relations: Engage with media outlets to provide accurate and positive information about KPMG's actions taken to address the issue. Organize press conferences or media interviews with senior executives to offer transparency and address any concerns or questions.
3. Thought Leadership Articles and Opinion Pieces: Publish articles and opinion pieces authored by KPMG experts to showcase the firm's expertise and industry knowledge. This will help regain credibility and position KPMG as a trusted advisor.
4. Social Media Management: Leverage social media platforms to actively engage with clients and address any concerns or doubts they may have. Regularly update social media profiles with positive news, milestones, and achievements to counterbalance the negative publicity.
5. Stakeholder Engagement Programs: Organize events, seminars, or webinars targeted at existing and lost clients to offer insights, address concerns, and demonstrate KPMG's commitment to rebuilding trust. This will provide a platform for direct interaction and give clients the opportunity to express their grievances and receive personalized attention.
6. Partnerships and Collaborations: Collaborate with reputable organizations, industry bodies, or NGOs to demonstrate KPMG's commitment to ethical practices and industry standards. This can be done through joint initiatives, sponsorships, or thought leadership collaborations, thereby enhancing KPMG's reputation.
By employing these tools, KPMG can benefit in the following ways:
1. Rebuild Trust: Effective communication and engagement will help restore trust among existing and lost clients, showcasing KPMG's commitment to transparency and ethical practices.
2. Brand Reputation Management: Strategic handling of the negative publicity will minimize damage to KPMG's brand reputation and avoid any further client attrition.
3. Client Retention: By proactively addressing concerns and showing progress in resolving the issues, KPMG can retain existing clients who may be considering switching to competitors.
4. Regain Lost Clients: Through personalized engagement and rectification measures, KPMG can potentially win back lost clients who were dissatisfied with the initial handling of the scandal.
5. Enhanced Market Positioning: Demonstrating thought leadership and industry expertise will position KPMG as a trusted advisor in the eyes of clients and the broader market, bolstering the firm's future business prospects.
In summary, employing the above-mentioned tools of public relations will play a vital role in reducing the impact of bad publicity, retaining current and lost clients, and rebuilding KPMG's reputation and trustworthiness in the face of the Gupta scandal.