You are on page 1of 5

Pepsi Case Study  The case study analysis is based on the manufacture Pepsi Corporation regarding the syringes

that were found in the Diet Pepsi cans and bottles. In 1993, Pepsi Corporation was celebrating their 95th anniversary and with their reputation and high integrity on the line, the company had to result in crisis management techniques quickly and effectively to overturn the syringe crisis.  The first complaint regarding a syringe was announced on June 10, 1993. The president, the CEO, contractors, bottle handlers, line assemblers and the other 50,000 employees began the investigation proceedings towards these alleged complaints.  Craig Weatherup the president and CEO of Pepsi Corporation and the crisis management department evaluated the two initial cases and did not feel threaten enough to request a recall on the Diet Pepsi product. The crisis management team felt it was impossible to tamper with the product without a person noticing before purchasing the item. If the item was tamper with, the item had to be tamper with in the bottling department and/or after the product has been opened.  By June 13, 1993 Pepsi Corporation urged companies not to remove the product off of the shelves that the products are tamper-proof. Craig Weatherup amongst his fellow management team evaluated the first two cans that had the syringes and noticed that the two cans were made months apart and from two different plants, the company then realized that the syringe scare was a scam. Pepsi Corporation could not just tell the public this information without having substantial amount of evidence to enforce their claim; the investigation had to continue.  During the investigation a total of 55 complaints arose causing more stress on the company, the investigation, the news media, and the general public. The public relations department was working very hard in the investigation to save the company’s name. On June 15, 1993 a man was finally arrested by alleging he had found a syringe in his Diet Pepsi. The public relations department decided to use the offensive method to reach the publics eye. The department released a video news release (VNR) footage regarding the Pepsi Corporations plants with narration. The footage showed to the viewers that it is impossible to tamper with these products. The video footage also showed viewers how the processing takes place, the speed of the equipment, and the safety precautions to produce the product. The second VNR was produced to prove witness that a gentleman was arrested for his falsifying actions against Pepsi Corp., that the locations of the cities versus the production lines were unrelated, the can and bottle package is the safest material, and the recalling of the product is unnecessary.  A third VNR was aired by Mr. Weatherup shortly after the arrest which shows a surveillance camera in a convince store showing how a lady purchased the product, opened the product and then placed a syringe without anyone seeing her and then asking the clerk for a cup to drink her soda. Pepsi Corporation end to the allegations were almost finalized by the June 17, 1993. The company had to continue to work with the FDA Criminal Investigation department.

After the allegations were finalized the company had special campaigns generated that expressed appreciation to the public along with the future plans of the Pepsi . The allegations from people were arising from Pennsylvania. and how the company is responding to this matter. FDA. Once the media heard of these allegations they sometimes tend to enhance the crisis and can create more chaos. California. crisis management. Pepsi Corporation may have lost sales for a week but the company was well praised for their hard work. 1993 Commissioner Kessler from the FDA held a press release regarding the hoax of all these allegations of the syringe. The important factor with the communication between the public relations department and the general public was honesty and openness. consumers. product and pictorial features on any of the media types in the United States. The internal and external public communications had to be handled separately and differently.  The intended public was also kept up to date on syringe crisis too. notifying the public that the scare was false. The president was also contacting the management department regarding updates from the investigation. By the president of the organization along the management team explaining and updating the employees on everything that is happening and by ensuring to the employees that the corporate office does not think that the tampering is happening at the plants and by confiding and trusting in the employees abilities increased the employee’s morale at a critical time during the crisis. financial.  The publics involved in the case study were in the United States. radio broadcast and new papers were some of the media types used regarding the allegations.On June 17. and the CEO throughout the investigation was very effective. The effect on the allegations can be listed under the business. The company only lost three percent of sales in the crisis period. The public relations department contacted the management department on how to communicate with the employees regarding the crisis situation and how to answer questions from the public and the employees.  The public relations department had to convince the external public of the investigation proceeding on a daily basis to ensure to the public that the problem is under control. what information is being reported. The allegations were based on a product that children. consumer. media. The internet. news stations. The consumer advisers were contacted almost three times a day regarding new information. management team strategy and standards of productions which the company earned an additional four percent increase in sales. amongst other states. The public relations department disclosed all information to everyone as needed. The internal public communications was very effective. Part of communication with the external public is by cooperating with the investigation and participating by instituting their own crisis management team for added assistants. The public was just as aware of the situation on a daily basis as the employees and the management team. how the government was handling this matter. The communication between the FDA was opened and the relationship had to be established quickly. Washington. New York.  The communications with the public relations department with the plants. integrity. All 400 field locations were aware at all times of what was going on in the company. woman and men drink on a regular basis.

the media.Corporation with coupons for added compensations. the management team. other business associates. What were the initiatives that Pepsi did right? . the consumers. the FDA in handling the investigations and there is no other better way to handle this situation except by the way the Pepsi Corporation handled the crisis Q. Key learnings? What could have been handled better? Q. The public relations department worked very well with CEO.

Over 19 fatalities have been attributed to problems with Toyota vehicle acceleration mechanisms. Jim Lentz. The company's U." (link) Several days later. A voluntary recall was announced November 2. It also publishes questions from the press along with Toyota's responses. offers a first-person discussion of the issues at hand.S. perhaps it would have already passed through this storm if it had paid greater attention to the complaints made prior to 2009. In a press release of September 14. 2010 Toyota stated it would recall 2. Key learnings? What could have been handled better? Q. Toyota stock has dropped significantly. How things have changed. So has Toyota handled this crisis well? Has it adhered to the fundamental principles of crisis management theory? In some ways.Crisis communication case study: Toyota Toyota has long enjoyed a stellar reputation of reliability. But while Toyota has been swift to move on this particular series of incidents. The influential Consumer Reports has removed its recommendation of the eight models suspended. and Interbrand ranked it eighth on the list of the world's strongest brands of 2009. its brand had only been strengthened by the dilapidation of the U. car industry. and reported to emergency authorities that the car was automatically accelerating out of control.S. ("We believe if we do this right. blog. he and his family were killed in the horrifying accident. The company's worst nightmare has continued to intensify since then.3 million cars to correct sticking accelerator pedals on certain Toyota models. customers will come back. Apparently reports of unreliable acceleration have been around for several years." he Twittered. With the unbelievable number of social media arenas used by consumers these days.) A massive campaign is in full effect. quality and value. reassuring voice. president of U. 2009 Toyota expressed its sympathies to those involved and explained that it appear a floor mat had been incorrectly installed. Always assume the worst. there's no excuse for brands not to have their fingers on the pulse of consumer sentiment. however the story has only recently become very public. with floor mats still suspected as the cause for alarm. What were the initiatives that Toyota did right? . including a tragic crash involving an off-duty California police officer and his family in late August 2009. Until recently. when I was having the inevitable conversation with my father about which car I should test drive at the tender age of sixteen. Speeding at 120 mph. I still remember him telling me that Toyota made the most dependable vehicles. this process was explicitly made separate to the risk of "pedal entrapment by incorrect or out of place accessory floor mats. answered questions directly through Twitter. Car owners are understandably concerned. Q. utilizing full page ads in newspapers. it has. 2009 for owners of certain Toyota and Lexus models. television ads and executive interviews have been consistent in messaging and tone.S. sales. The officer had been driving a loaned Lexus while his wife's model was being repaired. Toyota has made good use of social media avenues to engage customers using a frank. causing the accelerator to become jammed. These tools have been well used to promote the company's actions to address the problem. it decided to suspend sales of eight models. Our Point of View. Come January 21. Indeed. a dedicated web site.

(This is clearly scripted and it would be better if he was looking into the camera. Half a million views later.com/dpzinfo and encouraged its employees to twitter (They should have had an account already) The company showed its outrage through its president’s YouTube response:“It sickens me that the actions of two individuals could impact our great system. Later both were charged with distributing prohibited foods The store was closed and sanitized. The following days.000 hard-working men and women across the nation and in 60 countries around the world”.Dominos Case Study Two Domino’s employees from a North Carolina store shot a video of themselves adding contaminated ingredients to the food they were preparing for delivery and posted in on YouTube.”   Domino’s got the videos removed from YouTube. saying that they have “125. Domino’s spokesman Tim McIntyre told USA Today: “Any two idiots with a video camera and a dumb idea can damage the reputation of a 50-year-old brand. it launched one: twitter. it featured other items instead Q. the damage was already done How did the company respond  Once the company learned about the video from readers of The Consumerist. twitter users and YouTube users   Because Domino’s didn’t have a twitter account. but getting this out quickly is more important than what it looks like)  Similar outrage was shared via quotes in the media.” said Doyle. Lessons learned? . lowering the number of people who will come across it. it responded quickly and targeted audiences that already viewed the video: readers of The Consumerist. How gross was it? The video was posted on YouTube and in two days was seen by more than 500.    The employees were fired and the company filed complaints for the arrest of them. Domino’s tried to explain that this was an isolated incident and used numbers to do that. Domino’s did not advertise sandwiches shown in the videos. This was not used as an excuse but it does put things into perspective.000 viewers spreading fast on social networks and twitter The employees claim it was just a prank and the food was never sent to the customers.