Chinese companies made headlines a few years back with lead tainted toys and pet food that sickened cats and dogs. Now a US company is coming under fire in China. KFC is alleged to use excessive growth hormones and antibiotics in their chicken–creating a potential branding problem.
This insightful article by Chinese branding expert Milton Kotler on the blog he shares with his marketing guru brother Philip Kotler points out that dealing with this crisis as a cosmetic branding and PR issue is a mistake. KFC has a business model problem that affects trust. Trust is the core of any brand and it is trust that fuels ROI. BP faced a similar problem.