CrisisB

1

How to Survive and Thrive During a Food Recall Media Crisis

2

Crisis Communication

Prevent Prepare Address Recover

= 75%

} 25%

4

Prevent it!

Effective product development

Rigorous specifications: build, adhere, change with great care

Independent QAOnly you can prevent product recalls

5

Management Communication Project Management Communication

CEO

Finance HR Legal Sales & Marketing

Supply Chain

QA

Purchasing

R&D

Effective product development systems

• “Machineable” product design

• Innovation and new processes

• Cost-savings initiatives that affect product design

• Supplier qualification

6

Rigorous specification process

Integrated product design process QA testing new resources; new products; new

formulations Cross-functional involvement in and

approval of final product specs Monitor and adhere to specifications

7

Independent QA Direct, clear access to CEO

Dotted line reporting Avoid straight-line (only) to Manufacturing

8

Be Prepared

"He who fails to plan is planning to fail.”

- Winston Churchill

9

Stuff Happens Natural Disasters

Supplier errors

False Rumors

Product Tampering

Equipment & Tech failure

Human error industrial accident

Human error harmful product

Organizational misdeeds

SOURCE: Crisis Management & Communications

10

Stuff Happens Environmental Issue/Accident

Investigation/Lawsuit/Fine/Settlement

Poor Financials/Stock Performance

Structure/Ownership Issue (M&A, etc.)

Management Change/Dismissal

Incident/Allegations

Consumer Complaint/Issue

Employee Complaint/Issue

Labor Dispute

Workplace Injury/Fatality

SOURCE: Crisis Management & Communications

11

Do you have a Plan? Marketing communication plans and process in place Specific Public Relations contact Can mobilize and execute broad

communication initiative …. cohesively Existing media list and relationships ‘Media capable’ – traditional and social Tested it via ‘dry run(s)’

12

Fix the Product Issue

• Inform Sales Team• Inform Supply Chain Partners

• Brokers, Distributors, etc.

• Retailers• Inform regulatory agency

(e.g. FDA)

Inform Constituents

• Inform Media• Inform Consumers• Structure and Leverage Feedback Loops

Protect and make wholeProtect and maintain

reputation

Cohesive Communications Plan

13


Knowledge = Product Liability and Responsibility

There’s nothing to “spin”

14

Key Elements

Scope of the problem Geographies, brands, skus = = Clear and

complete How to identify

What they need to do, when, how to inform that it has been completed

Where to get additional information, who is their key contact

15

http://www.rapidrecallexchange.org/

Centralize Recall Communication

Regulatory Agencieswww.fda.gov Safety Reporting Portal

www.usda.gov FSIS Recalls Portal

http://www.fda.gov/

http://www.usda,gov/

17


• Inform Sales Team• Inform Supply Chain Partners

• Brokers, Distributors, etc.

• Retailers• Inform regulatory agency

(e.g. FDA)

Inform Constituents

.

• Inform Media• Inform Consumers• Structure and Leverage Feedback Loops

Protect and make wholeProtect and maintain

reputation

Cohesive Communications Plan

18

PR

• Craft key messages

• Distribute• Handle media

and influencer communications

• Hotline• CRM/database

capturing •

Analysis/reporting of inquiries

• Alerts•

Announcement ads

• Public Service Announcements

Customer Service AdvertisingInteractive

• Online crisis management

• Web-based communications

• Reputation monitoring

• Social media: FB, Twitter, YouTube

Crisis Communications

19

Key Elements Scope of problem

Geographies, brands, skus =>Clear and complete

How to identify What recipient needs to do Where to get additional information Who to contact for additional (emergency)

help

20

Marketing/PR Crafts Key Messages

21

Website Landing Page and….

22

….Dedicated Recall Page

23

PR





capturing •

Analysis/reporting of inquiries

• Alerts•

Announcement ads







Crisis Communications

You Can’t Control the Message1 – WayCompany controlledMass marketPersuade to buy

2+ – Way DialogueConsumer controlledNiche/micro-target marketEngage to earn relevance

24

“No Comment” is not an option

27

Key Elements Scope of problem

Geographies, brands, skus =>Clear and complete

How to identify What recipient needs to do Where to get additional information Who to contact for additional (emergency)

help Make whole – rebuild customer loyalty

28

Manage the Message…..

Media Contact identifies appropriate Spokesperson

Media Contact supports Spokesperson Crafts talk points Media trains Spokesperson Present with interviews

You may need to hire a PR/Crisis Communications company (from your ‘Rolodex’)

29

Public Relations

Be Quick, Contrite and Responsible

30

Marketing/PR Crafts Key Messages

• ONE Media Contact• All Media Requests go to Media Contact

• Media Contact decides which/how to respond

31

…Select the Messenger

Media Contact identifies appropriate Spokesperson Title and expertise (CEO, Quality Assurance –

NOT Sales) Articulate, credible, and appropriate for that

medium

33

Tell YOUR Story

34

Dry Run • Walk through a hypothetical Product Recall• Post-audit, fix readiness gaps• Document procedures

35

Recovery

• Move On: Consumers are very forgiving• Tell and widely publicize your positive story• Rebuild customer and consumer loyalty

•Make Whole PLUS

36

PR





capturing • Analysis/

reporting of inquiries

• Alerts•

Announcement ads







RECOVERY Communications

Make Customers Whole PLUS

Tell YOUR StoryPromote event

Tell YOUR StoryPromote event

Refund + Repurchase Offer

Promote event• “Re”-trial • Repeat

37

Food Recall Crisis = Opportunity

• Resume positive brand communication

• Incent trade partners to restock and promote your brand

• Incent consumers to retry your brand

• Provide additional incentive for repeat business and goodwill

38

-15%

+7%Share prices of companies that mishandle a crisis one year later

Share prices of companies that handle a crisis well one year later

Source: The Impact of Catastrophes on Shareholder Value; Sedgwick Group, Knight and Pretty

Food Recall Crisis = Opportunity

39

Crisis Communication

Prevent Prepare Address Recover

= 75%

} 25%

40

Your Questions?

[email protected]/in/tammykatz

CrisisB

Documents

Transcript of CrisisB