1. Take away lessons Agree with your communications strategy
and respond quickly. The brand reputation is being attacked, not
the business area. Think globally. Convince individual customers
when necessary. Think about the impact of Google on the reputation.
Formulate a solid strategy to ensure your side of the story gets
heard.
2. CRISIS COMMUNICATION #DEEPAK AJITH #NIRMAL #ROHIT
#SREEKANTH
3. Introduction A crisis is any situation that threatens the
integrity or reputation of your company, usually brought on by
adverse or negative media attention Crisis management involves the
best ways to mitigate this effect.
4. Classification Technological crisis Confrontational crisis
Crisis from malevolence Crisis of managerial failure
5. Examples of crisis Sudden change in public perception Sudden
market shifts Product failures Management succession Cash drain
Labour strife External attack Adverse international events
Regulation and deregulation of industries
6. 5 Steps for effective Crisis communication 1. Establish the
crisis team 2. Identify and prepare the spokesperson 3. Develop
processes and protocols 4. Prepare for media impact on crisis
communication 5. Design away risk
7. Effective audience Customers Survivors impacted by the
incident and their families Employees and their families News media
Communityespecially neighbors living near the facility Company
management, directors and investors Government elected officials,
regulators and other authorities Suppliers
8. Johnson & Johnson's cyanide-laced Tylenol capsules
(1982) The crisis: Seven people died after taking extra-strength
Tylenol capsules that had been laced with potassium cyanide, a
deadly poison. How J&J responded: The company put customer
safety first. It quickly pulled 31 million bottles of Tylenol --
$100 million worth stopped all production and advertising of the
product. got involved with the Chicago Police, FBI, and FDA in the
search for the killer, and offered up a $100,000 reward.
Post-crisis, the company reintroduced Tylenol with new
tamper-resistant packaging and $2.50-off coupons. The result:
Tylenol's response to the tragic 1982 Chicago murders is regarded
as one of the most successful sequences of crisis management in
history. The media appreciated the lengths J&J went to and its
concern for the public interest, so the company was portrayed
generally in a good light, helping the Tylenol brand to
recover.
9. Pepsi can tampering rumors (1993)
10. one woman in Portland said she found two syringes in a
single glass in New York a man claimed he accidentally swallowed
two pins that were in a Pepsi bottle Likewise many cases
followed
11. PEPSIS response: They defended against accusations. company
produced four videos throughout the crisis a comprehensive report
on its soda canning process a surveillance tape John Sedwick of St.
Petersburg, a Prozac-taking arrested can tamperer, told the world :
"It just doesn't pay to tamper with cans. You're going to get
caught eventually. I'm asking everybody not to do what I did."
12. The result: The rumors fizzled out following multiple
arrests by the FDA for filing false reports. Sales fell 2% during
crisis but recovered within a month
13. Texaco's racial discrimination lawsuit (1994) The crisis:
Six of Texaco's African-American employees sued the company for
racial discrimination. Damning conversations between Texaco
executives that were secretly recorded seemed to confirm the issue.
How Texaco responded: CEO Peter Biljur started off with a public
apology and admitted embarrassment. The executives involved were
suspended (with pay but without benefits), pending the result of
the investigations. Texaco execs went on tour, visiting all
branches and sites of the company in person to apologize to the
employees, company hired African-American owned advertising agency
Uniworld Group to run an ad campaign to help douse the flames. The
result: Texaco settled the suit, agreeing to pay $176 million.
Additional discrimination checks for executives and managers put in
place by Biljur have prevented the problem from sprouting up
again.
14. JET BLUE: The Valentine Crisis
15. The Crisis: JetBlue's operations collapsed after an ice
storm hit the East Coast of the U.S leading to 1,000 cancelled
flights in just five days
16. Response: CEO David Neeleman never blamed the weather He
came out in a late night interview to apologize 131,000 customers
introduced a customer's bill of rights, and presented a detailed
list including Monetary compensation voucher for a free round trip
flight
17. The result: JetBlue managed to quash much of the uproar by
being as public and straightforward as possible Though there was
much reputational damage done, JetBlue's comeback allowed it to
regain some of its lustre
18. Toyota's recall fiasco (2010) The crisis: Toyota recalled a
total of 8.8 million vehicles for safety defects, including a
problem where the car's accelerator would jam, which caused
multiple deaths. How Toyota responded: Toyota sent out PR teams to
try and stop the media backlash. The company offered extended
warranties and pumped up marketing, leveraging its long-term track
record and reassuring consumers about safety. Its ads in the
following months were more thoughtful and sincere, showing the
company's dedication to fixing the problem. Toyota's executives --
especially in the US -- became more visible, speaking to the media
and becoming active in the investigations. The result: The Toyota
brand showcased its resiliency, with its positive reputation built
up over decades of good performance. NASA exonerated Toyota of the
blame for most of the accidents in 2011 and the company's brand
equity leapt 11% this year, according to WPP.
19. The Coca-Cola Company
20. the Centre for Science and Environment (CSE)
21. Coke contained 30 times above the EEC standards No
standards for soft drink contamination in India
22. Cadbury's worm infested candy bars (2003) The crisis: Two
Cadbury chocolate bars were found infested with worms in Mumbai,
India. The Maharashtra FDA quickly seized the chocolate stock at
Cadbury's closest manufacturing plant in Pune. How Cadbury
responded: released a statement claiming that the infestation was
not possible at the manufacturing stage Cadbury took its
advertising off the air and launched an educational PR project that
targeted retailers. It kept the media updated through press
releases on the specific measures it was taking to correct its
manufacturing and storage processes. The company also imported new
machinery and changed the packaging of its Dairy Milk bars. The
result: Within eight weeks of the introduction of its new packaging
and advertising campaign, sales had almost reached pre-crisis
levels. Cadbury has maintained its position at the top of the
Indian chocolate industry ever since.
23. Conclusion You never need it, but you'll be glad its there
when the need arises