In 2017, Pepsi launched an ad featuring Kendall Jenner, aiming to resonate with socially conscious millennials. Instead, it faced immediate backlash, accused of trivializing serious social issues, resulting in a swift retraction and a dent in Pepsi’s brand reputation.
This misstep underscores a crucial lesson in marketing — trust is a brand’s most valuable currency, and once lost, it’s difficult to regain. Let's examine three brands that lost client trust and faced backlash due to botched campaigns, uncovering what went wrong and, more importantly, what you can learn to avoid the same fate.
Table of Contents
1. Pepsi’s Kendall Jenner Ad: A Case of Tone-Deaf Messaging
In April 2017, Pepsi launched a high-profile commercial starring Kendall Jenner, aiming to position itself as a brand connected to youth activism, unity, and social justice. The ad showed Jenner leaving a glamorous photoshoot to join a protest, where she hands a can of Pepsi to a police officer, seemingly defusing tensions.
However, the ad was immediately criticized for trivializing serious social justice movements, including Black Lives Matter. Critics noted that the ad borrowed protest imagery — historically tied to life-and-death struggles — to sell soda, with Time calling it a “glaring misstep” and a case of brands trying to "co-opt activism without real commitment.”
The protest signs reading vague slogans like “Join the Conversation” were seen as empty gestures, while the image of a white celebrity resolving complex social tensions with a soft drink sparked widespread outrage.
The Impact
The backlash against Pepsi was swift and far-reaching, damaging the brand’s reputation and exposing its disconnect from the social issues it tried to align with. Here's what happened:
- Global backlash within hours, with #BoycottPepsi trending across social media platforms.
- The ad was pulled within 24 hours after widespread condemnation and public outrage and Pepsi issued a public apology acknowledging that they "missed the mark."
- Purchase consideration among millennials (ages 18-34) dropped from 27% to 24% between early April and mid-July 2017 — a clear sign of declining trust and willingness to buy.
- Although brand perception recovered after nine months, millennials' consideration of buying Pepsi continued to decline, reaching 23% by early 2018, the lowest level since 2015.
- The campaign became a textbook example of "woke-washing" — using social causes inauthentically to appear progressive without real action.
- The ad became a cautionary example of brands "co-opting activism for commercial gain", damaging Pepsi’s social credibility for years.
Did Pepsi recover?
Pepsi’s recovery from the Kendall Jenner ad backlash was partial and uneven — a cautionary tale for brands that think time alone will heal reputational damage.
Though Pepsi eventually resumed regular marketing efforts and remains a household name, the damage to its reputation — especially around cause marketing — was significant and lasting. The ad has since become a textbook case of failed purpose-driven marketing, widely cited as an example of how not to approach sensitive social issues.
Key Lessons
Pepsi’s Kendall Jenner ad shows how even a globally recognized brand can quickly erode trust with the wrong campaign. Here are key lessons for CMOs and CEOs to avoid similar mistakes:
- Start with real market research and audience insight: Before launching any campaign tied to sensitive social issues, brands must understand how their target audience will perceive it. Social listening tools and audience surveys can help uncover risks and potential backlash — long before a campaign goes live. Relying on assumptions instead of data puts brand trust at risk.
- Pick ambassadors who genuinely reflect the cause: Influencers and celebrities need to align authentically with the message. Kendall Jenner’s lack of connection to activism made her role in the ad seem hollow. If brands want to speak on social issues, they must partner with figures who are credible voices in that space.
- Authenticity is non-negotiable: Anmol Rajdev, Founder & CEO of 42Works warns that consumers can easily spot inauthentic branding. “Let’s be real. People can tell when a brand is faking it. It’s like when someone’s being overly nice to you because they want something. You know it’s not real. The same goes for marketing.” Brands that align with social issues must go beyond surface-level imagery and demonstrate genuine commitment — otherwise, audiences will see through the façade, harming credibility.
- Test campaigns with diverse voices for cultural sensitivity: Creative teams must reflect the audiences they’re speaking to. Involving diverse stakeholders in campaign development helps identify blind spots before they become public crises.
- Cause marketing needs substance, not symbolism: If a brand engages with social issues, it must back its message with real initiatives or partnerships — not empty slogans. Anything less risks accusations of "woke-washing."
- Have a crisis plan in place: While Pepsi pulled the ad within 24 hours, a well-prepared crisis communication strategy could have mitigated the fallout faster and more effectively. Anticipating risks and having a response plan is critical when addressing sensitive topics.
Once a campaign backfires, regaining trust requires more than just quick action — it demands consistent transparency. Shubham Saxena, CEO and Founder of Colladome, outlines four essential steps:
- Acknowledge the mistake immediately
- Communicate openly and consistently across channels
- Take corrective action and demonstrate real change
- Rebuild trust over time through ongoing commitment
“Trust is hard to gain and easy to lose,” Saxena notes — a reminder that crisis recovery depends on honest communication and sustained effort.
2. Bud Light’s Dylan Mulvaney Partnership: When Inclusive Marketing Backfires
In April 2023, Bud Light partnered with transgender influencer Dylan Mulvaney, sending her a personalized can with her face on it to celebrate her “365 Days of Girlhood” milestone. The collaboration was intended to signal support for inclusivity and LGBTQ+ communities, as part of Bud Light’s broader efforts to modernize its brand and appeal to younger, more diverse audiences.
However, the campaign immediately sparked a massive backlash from parts of Bud Light’s core consumer base. Longtime customers and high-profile figures accused the brand of alienating traditional beer drinkers and inserting itself into divisive social debates.
The Impact
The reaction escalated quickly, with calls for nationwide boycotts, viral videos of customers destroying Bud Light products, and celebrity-led protests against the brand. Here’s what happened after:
- Sales of Bud Light fell nearly 30% year over year as of January 2024, showing ongoing damage from the boycott over the Dylan Mulvaney partnership.
- Budweiser sales also dropped 15% year over year, signaling that the backlash impacted Anheuser-Busch’s broader portfolio, not just Bud Light.
- Competitor brands like Coors Light and Miller Lite saw increased sales, as consumers shifted away from Bud Light during the boycott.
- Anheuser-Busch laid off approximately 380 corporate employees in July 2023, citing ongoing sales declines tied to the backlash.
- Anheuser-Busch sold eight of its beer and beverage brands to cannabis company Tilray to help recover from losses driven by the controversy.
Did the brand recover from the fiasco?
As of early 2024, Bud Light has not recovered from the Dylan Mulvaney backlash. Despite launching new ads featuring comedian Shane Gillis and artist Post Malone, the brand continues to face steep sales declines and eroded customer trust.
Sales remain down nearly 30% year over year as of January 2024, reflecting the lasting damage from the controversy. Bud Light has also been surpassed in sales by both Modelo Especial and Michelob Ultra, losing its long-held position in the US beer market.
Former Anheuser-Busch President of Operations Anson Frericks confirmed that Bud Light "hasn't at all recovered" and continues to "shed customers", noting the brand has lost 30% of its customer base and billions in shareholder value since the incident.
Key Lessons
Bud Light’s Dylan Mulvaney campaign has become a case study in how NOT to manage brand positioning and consumer backlash. Unlike other brands that survived brief boycotts, Bud Light faced sustained sales declines due to deeper structural missteps.
Here are key lessons to take away:
- Know your core audience: Sanjay Bhattacharya, Head of Marketing & Business Strategy at Primotech, stresses the importance of thorough groundwork. “Do your homework with focus groups or small pilot tests,” he advises. “You need to make sure your message actually clicks with the people you’re trying to reach.” Bud Light’s misstep — failing to anticipate how its traditionally conservative customer base would react to a campaign centered on progressive messaging — underscores the risks of overlooking audience values.
- Consider how easy it is for customers to switch brands: Light beer is a highly substitutable product. When customers left Bud Light, they easily moved to Coors Light, Miller Lite, and Modelo — brands offering similar products without controversy. Brands in crowded markets need to protect their reputation because switching costs are low.
- Understand customer “ownership” of the brand: Bud Light’s long-time customers saw the brand as part of their identity. When the brand's message clashed with their values, they felt personally betrayed. Brands must be aware of this dynamic when shifting their messaging.
- Bud Light’s slow and inconsistent responses, followed by leadership changes, only kept the controversy in headlines longer. If you take a stand, stand by it — or have a clear crisis plan. Waffling and silence create a media vacuum that others will fill, amplifying damage.
- Support your partners or risk damaging brand trust: Bud Light’s failure to stand by Dylan Mulvaney during public attacks made the brand appear opportunistic. If a brand partners with an influencer on social issues, it must be prepared to defend that relationship when challenged — or risk losing trust with both the influencer and socially conscious consumers.
3. Peloton’s "Sexist" Holiday Ad
In December 2019, Peloton released a holiday commercial titled "The Gift That Gives Back." The ad features a woman who receives a Peloton bike as a Christmas gift from her husband and documents her year-long fitness journey through vlogs.
However, the ad quickly drew backlash, with critics accusing Peloton of promoting sexist and unrealistic body image expectations. Many viewers interpreted the narrative as a husband pressuring his already-fit wife to lose weight, sparking outrage over tone-deaf messaging and gender stereotyping.
Social media exploded with criticism, parody videos, and memes — turning the campaign into a viral controversy.
The Impact
The backlash against Peloton’s holiday ad was swift and damaging, highlighting how quickly a brand can lose trust over tone-deaf messaging. Here’s what happened:
- Peloton’s stock dropped as much as 10% in a single day following the ad’s release, wiping out approximately $1.5 billion in market value — a sharp reflection of investor and consumer reaction.
- The ad went viral for all the wrong reasons, with widespread mockery, parodies, and memes flooding social media. One viral spoof video by actor Ryan Reynolds’ Aviation Gin capitalized on the controversy and gained millions of views.
- Online outrage quickly spread across social media, with critics accusing Peloton of promoting sexist and body-shaming messages — suggesting that the woman in the ad was being pressured to lose weight.
- Critics compared the ad to dystopian and unsettling concepts, including Black Mirror, a 1950s-style dystopia, and even a hostage video, amplifying public mockery.
- The ad faced criticism for lacking diversity and creativity, calling into question Peloton’s understanding of modern consumer expectations.
- Peloton downplayed the backlash as a "misinterpretation," further frustrating critics who expected accountability.
- The ad’s attempt to mimic user-generated content (UGC) felt forced and inauthentic, missing an opportunity to showcase real customer experiences that could have resonated better.
Did Peloton recover?
Although Peloton faced massive backlash and public scrutiny over the ad, the brand managed to rebound in the short term. Its stock began to recover by the end of that week. Still, the ad remains a lasting case study in tone-deaf marketing — often cited as an example of how quickly brands can lose consumer trust when campaigns feel inauthentic.
Key Lessons
Peloton’s holiday ad shows how quickly a brand can lose trust with the wrong message. Here are essential lessons you can take away from what happened:
- Don’t overlook perception when telling brand stories: Even if the intention is positive, if the audience reads it differently, perception becomes reality. Peloton’s ad was seen as sexist and body-shaming — overshadowing any intended message of empowerment.
- Test campaigns with real audiences before launch: What may seem fine internally can be interpreted very differently by the public. Focus groups and pre-launch testing with diverse audiences can catch red flags early.
- Tone matters as much as message: The ad tried to showcase a fitness journey but missed the mark by portraying an already-fit woman seemingly pressured to improve. Brands must ensure their tone matches the emotional context of their message.
- Address backlash with accountability, not dismissal: Peloton’s claim that the ad was "misinterpreted" only fueled frustration. Acknowledge consumer concerns and show understanding — dismissing them can damage trust further.
- Avoid forced authenticity — real stories resonate better: The attempt to mimic user-generated content felt scripted and fake. If showcasing customer stories, use actual customers for real relatability and impact.
How To Assess and Improve Your Brand’s Trust Factor
Losing trust can happen fast — rebuilding it takes strategy and effort. Here’s how brands can assess where they stand and take concrete steps to strengthen trust before (or after) a crisis hits:
- Audit your brand perception regularly: Don’t wait for a PR crisis to find out what people think about your brand. Use social listening tools, customer surveys, and focus groups to gauge how your audience truly feels about your messaging, leadership, and products. Look for patterns in feedback that may signal emerging trust issues.
- Align brand actions with promises: Consumers are quick to notice when a brand’s actions don’t match its words. Whether it’s sustainability, diversity, or social impact, make sure your campaigns reflect actual commitments — not empty slogans. If you support a cause publicly, back it up with donations, partnerships, or internal initiatives.
- Diversify voices in decision-making: Avoid blind spots by involving diverse teams — across race, gender, background, and experiences — in campaign development and decision-making. Different perspectives help catch issues before they go public. Create advisory panels or feedback loops with real customers for sensitive campaigns.
- Establish a clear crisis response plan: Rebuilding trust starts with how quickly and transparently you respond when things go wrong. Have a crisis communication playbook that outlines who speaks for the brand, how and where to respond (channels, tone), and immediate steps to take (e.g., pausing campaigns, issuing statements). A slow or defensive response can make a bad situation worse — plan ahead.
- Focus on consistency over time: Trust builds (or rebuilds) through consistent actions and messaging. Brands that recover from mistakes are those that show up authentically and reliably over time, not just in moments of crisis.
Brands That Lost Client Trust: Final Thoughts
These three brand missteps reveal a fundamental truth: trust is a fragile, earned commodity. Each case demonstrates how easily a brand's perceived values can clash with its audience's and lead to swift, significant consequences.
The underlying lesson is consistent: brands must prioritize authentic connection over fleeting trends. To safeguard your brand's reputation and build lasting trust, partner with an agency that can help you drive real, consistent messaging.
Brands That Lost Client Trust FAQs
1. Can a brand be "too safe" in its messaging to avoid controversy?
Yes, potentially. While caution is important, overly generic messaging can make a brand appear inauthentic or out of touch. Consumers often value brands that take a stand, provided it aligns with their values and is executed genuinely. The key is finding the right balance between relevance and risk.
2. With so many diverse opinions, how can a brand ever please everyone?
You can't and shouldn't try to. Brands must identify their core audience and focus on building genuine relationships with them. Trying to appeal to every demographic often leads to diluted messaging and a lack of clear identity. It's better to cultivate a strong, loyal base than to chase fleeting popularity.
