2010-05-19

Ewelina Brania
Students book 79774

2010-05-19

1.
2.

Arla Foods
Society profile

Country profile

Cultural profile

Communication components

3.
4.

Case profile
Campaign

5.
6.

Aims
Strategy
Instruments applied

The crisis of Arla

Conclusion

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The largest producer of dairy products in Scandinavia

Headquarter in Aarhus, Denmark

Mission: to provide modern consumers with natural milkbased products that create inspiration, confidence and wellbeing

Owned by 7 996 milk producers in Denmark and Sweden

73% of shares in Danish, Swedish and British market

49, 469 m DKK revenue (2008)

15, 927 employees

Arla - early in archaic Swedish

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1882 1st Dairy in Hjedding in Denmark

1970 - Establishment of Mejeriselskabet Danmark (MD)
1989 - Formation of MD Foods International to acquire
dairies abroad
1990 - Launch of butter Lurpak on UK market
1st dairy in Stora Arla Grd in Sweden -1881
1881

Formation of Mjlkcentralen (MC)- 1945

Mjlkcentralen changes name to Arla 1975

2000 - Merger of Danish MD Food and

Swedish Arla

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13 countries: Algeria, Libya, Egypt, Lebanon, Yemen, Kuwait,

Morocco, Jordan, Oman, Saudi Arabia, Qatar, UAE

50% of shares in Saudi Arabian butter market, 68% - UAE, 80%

- Qatar

Annual sales of $550 m in the Middle East

Strong positive Danish image

Coming from a small and politically natural country like

Denmark is definitely a plus when youre selling in the Middle

East. We are not associated with any kind of imperialism we feel
that our partners trust us.
H. Niss

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Political
structure

Republic - 6, constitutional monarchy 3, absolute

monarchy 3, federation of emirates - 1

Legal
system

Mainly Sharia law with western influences

The independence of judiciary main principle in Sharia
The Beirut Declaration (1999) for Arab states procedural
guarantees of judicial independence, denouncement of
discrimination on the basis of gender etc.

Level of
activism

Lack of transparency, a weak media, lack of democracy,

social dogmas, religious tension all this makes it almost

impossible to make any real change. Arab society provides
no encouragement to pursue a life of activism
Weal Hmaidan, co-funder of the League
of Independent Activists
Theocratic activism - terrorism

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Economic
structure

GDP (PPP) 20 782.62$

very diversified max. Qatar 86 006$
min. Yemen 2 411$(IMB 2008)
Adult literacy 66% (Syria, Lebanon, Jordan over 90%)

Media
system

Practically lack of press freedom (mostly ranks under 100th

place in Reporters Without Boundariess ranking 2008 )
Yemen 167th, KSA 165th , Syria 163rd
independent press owned by member of the ruling family
of businessmen close to the ruling family, very few literally
independent
Usually a government-issued license is needed
Harsh defamation law
Usually direct censorship for materials from abroad
Al-Jazeera (1996) a revolution on Arab TV market, highly
independent in spite of financing by Qatari government,
often discusses taboo topics

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High-context

Authoritarian relationships

High power distance

Polychronic

High uncertainty avoidance

Non-linear

Present-oriented

Being-oriented

Cultural values: collectivism, hospitability, honor

Socio-historical influences: Islam, poetry, nationalism

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Language and verbal

communication
Elaborateness

NonNon-verbal communication
Gestures direct body orientation

Codeswitching between different Direct eye contact between the

forms of Arabic and French, same sex, lowered gaze submission
English
Affectiveness

Touching restricted between males

and females

Repetition
Indirectness

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17.
17.09.
09.2005 Politiken publishes an article Profound anxiety
about criticism of Islam in which the author
discusses the problem of self-censorship in
relation to Islam in Denmark

30.
30.09.
09.2005 the Danish newspaper Jyllands-Posten publishes
article Muhammeds ansigt (The face of
Muhammad) that refers to terrorism of Islamic
organizations with 12 cartoons
They [Muslims] demand a special position, insisting on special

consideration of their own religious feelings. It is incompatible

with democracy and freedom of speech.
Flemming Rose, editor of Jyllands-Posten

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20.
20.10.
10.05 ambassadors of Muslim countries ask the prime
minister to react
The freedom of expression has a wide scope and the Danish
government has no means of influencing the press
Anders Fogh Rasmussen, prime minister of Danmark

28.
28.12.
12.05 - Jyllands-Posten refuses to apologize for the
publication

20.
20.01.
01.06 religious clerics in KSA advise Muslims not to buy
Danish products (Arla Foods, Lego, Ecco shoes etc.)
Most of the shops as a sign
of solidarity with Muslims
community remove Danish
products from their shelves.

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Our

challenge is to
regain consumer
confidence in the
Middle East

Managing Director
Peder Tuborgh
Restore its
product on
the shelves in
shops in the
Middle East

Maintain dialogue
Reintroduce Arla
to the market
(cut off from an
image of a
Danish company)

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Emphasizing long-lasting relations with Muslim community

(long history in the Middle East, many Muslim employees over
the years etc.)

Showing interest of Islamic and Arabic culture

Appealing to Islamic values (tolerance, justice, forgiveness

etc.)

Showing Muslims society understand of their reaction to

cartoons - Influencing Muslims hearts not minds, leaving
them decision about the future of the boycott

Improving contact with Islamic religious

intermediaries to reach Arab Muslim society

Lobbying the Danish Prime Minister to apologize for the

cartoons

leaders,

as

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Newspapers adverts with Arlas standpoints and reprints of

opinions of the Danish government and Jyllands-Posten

TV commercials

Frequent up-dates about the boycott and undertaken actions

on the website
Status report Friday afternoon, Arla makes "all resources
available etc.

Records with confessions of Arlas Muslims employees from

feelings about the cartoons

Leaflets with reprints of Jylands-postand standpoint

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26.
26.01.
01.06 the largest grocery
retailer in KSA Al-Othaim Holding
Company confirms that it will not be
selling Danish products until an
apologize for the cartoons will be
published in the largest newspaper
in the country

The
campaign
of
all
Muslims to protect the last
prophet Muhammad (saw)*

In the name of Allah

we apologize our dear
customers
but
we
dont
sell
Danish
products because of
the boycott campaign.
The products are:*
*Translated by the author

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2010-05-19

26.
26.01.
01.06 We can confirm that our sales have been affected
says Finn Hansen, Executive Director, Arla Foods
In one of Arab countries people are throwing stones at Arlas
vehicle.
Arla tries in press release to emphasize its long-lasting good
relations with Muslim community, cut themselves off from an
image of a Danish company In fact, we have more Muslim
consumers. ED of Arla calls for peaceful dialogue.
than Danish consumers

27.
27.01.
01.06 Arla ensures that the press release with the
statement of Danish Government will be
published in Saudi Arabians newspapers (Arla
puts ads in Middle Easts newspapers)
In the statement the Danish government ensures that it
respects Islam and that Jyllands-Posten have no connections
with government, its private and independent so it can
not be perceived as a standpoint of Denmark society.

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2010-05-19

28.
28.01.
01.06 Arla places adverts in Middle Eastern newspapers
trying to encourage people to stop the boycott

29.
29.01.
01.06

Jyllands-Posten prints statement in Arabic

explaining that cartoons had been a sign of
freedom of speech not a campaign against Islam.
Islam.

Libya closes the Danish embassy in Tripoli, Palestinians burn

Danish flag.

30.
30.01.
01.06 Production for the area seriously threatened
alarms Arla:
KSA Arlas importers cancelled all orders
Kuwait wide media coverage about the boycott
Qatar the products removed from almost all shops
UAE within a short time the products will be removed
EVERYWHERE

SALES STOPPED!!!

"I urgently beg the government to enter a positive

dialogue with the many millions of Muslims who feel

they have been offended by Denmark says in
a
statement Peder Tuborg, Arlas ED

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2010-05-19

31.
31.01.
01.06 Arla informs that none of the employees in the
Middle East will be dismissed so that Arla can
quickly restart production when the boycott will be
over
Danish imaans call off the boycott in Denmark. In the press
release Arla tries to emphasize its openness and good relations
with Muslims society by citing Kasim Amat, a spokesperson for the
Danish Islamic Community, who suggests undertaking a joint
venture (DIC, Ministry of Foreign Affairs, Dansk Industri and Arla)
to Saudi Arabia to correct the misunderstandings.
misunderstandings The situation
abroad is still difficult.

The dialogue here has taken a positive turn

Finn Hansen, ED Arla Food

01.
01.02.
02.06 Arla ensures that it will spread the statements
(press adverts) of the Danish Prime Minister and
JyllandsJyllands-Posten from press conference on 31th Jan,
when they emphasized that cartoons are a part of
freedom of
speech not incursion on Muslims
society and that
they want to continue the
dialogue and restore good relations with Arab
world.

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2010-05-19

In French, German, Italian and Spanish newspapers appear

reprints of the cartoons

18.
18.02.
02.06 Arla participates in Middle Easts largest food
exhibition Gulf Food in Dubai
Signs at Arlas stand show its distance from the cartoons.
cartoons Arla
staff gives away customers copies of JyllandsJyllands-Postens apology
and is willing to answer to the questions of the local media.
A face
faceto-to
-face dialogue is extremely important in the Middle

East and cannot be substituted by a phone call says Jan E.

Pedersen, Arlas Director for the UAE

20.
20.02.
02.06 as a reaction to rumors in the media that Arla is
boycotting Isreal, Andreas Lundby, Deputy
Managing Director, makes a statement
In the statement he also emphasizes that all of products
exported to KSA are Danish and none of the ingredients comes
from Israel.
Israel

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02.
02.03.
03.06 estimations of Arla show that the boycott will cost
the company 400 m DKK

20.
20.03.
03.06

Arla announced that

25th explanation of
offensive cartoons in
25 newspapers across

it was going to publish on

its stand in case of the
full page advertisement in
the Middle East

Arla Foods distances itself from the act of Jyllands

Jyllands-Posten in

choosing to print caricatures of the Prophet Muhammad and

we do not share the newspapers reason for doing it. () We
reaction, leading to boycott of
understand and respect your reaction
our products as a result of the irresponsible and unfortunate
accident. () The years that we have spent in your world have
taught us that justice and tolerance are fundamental values of
Islam.in the hope that you will reconsider your attitude to
Islam
our company.

2222-23.
23.03.
03.06 Arla took part in The First Conference of the
International Committee of the Support of the
Final Prophet in Bahrain

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2010-05-19

03.
03.04.
04.06 - International Committee for the Support of the
Prophet publishes press release with the result of
the conference in which it
appreciates the attitude of Arla Foods that declared its rejection of

the pictures and was not in agreement for reasons for their
publication. The president of ICSFP, Yousef Al-Qaradawi notices
that Arla is an objective of criticism for its standpoint in Denmark.

T HE OFFICIAL END OF THE BOYCOTT

06..04.
06
04.06 Arla decides to sponsor humanitarian projects in
the Middle East (giving aid to disable children,
cancer suffers and the hungry) and activities that
will build mutual understanding between different
cultures
The boycott had been lifted only against Arla.
Arla This company
apologised to Muslims and sponsored humanitarian projects for
the needy" says Adel Al-Maawdah, a spokesman of ICSFP

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Arla was the first company which Arab world have lifted the
boycott for
Its products came back on 6th April 2006 on shelves of over
3000 shops in the Middle East
By the end of 2006 Arla recovered 50% of the pre-boycott
annual sales volume
The company restored good image in Muslim society through
cutting off from Denmark. Arla regained consumers trust.
We must differentiate between those who insulted us and

us..
those who stood by us

Soliman Albuthi, spokesman of ICSFP

In western countries the image was tarnished.
The Arlas apology for the cartoon was perceived as
a denial of a fundamental value of modern society
freedom of speech. The campaign Support Denmark
Boycott Arla was launch.

Before crisis Arla supplied 50 000 shops*

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2010-05-19

The biggest problem of the Arlas case was the fact that the
company had strong national image.
image
Key

to Arla Foods strategy was deconstructing the

sometimes conflicting national and organizational identities
that emerged.
Patricia A. Curtin, Thomas K. Gaither

If a company does not want to be perceive as a country-oforigin any more, then it can as a part of PR campaign:
Get involved in local community issues (homelessness,
cancer patients etc.)
Publicly distance itself from the source of offence
Cut off from the image of a company from the issue
Resign or downplay the Made in aspect of the
brand
Change the name of the company

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R. Tench, L. Yeomans Exploring Public Relations,

Prentice Hall, 2009

E. Feghali Arab Cultural Communication Patterns

[in:] International Journal of Intercultural Relations
volume 3, number 3, Aug 1997

A.O. Sherif, N.J. Brown Judicial Independence In The

Arab World, a study presented to the Program of
Arab Governance of The United Nations Development
Program
http://www.undppogar.org/publications/judiciary/sherif/judindependence.pdf

R.S. Zaharna Overview: Florence Kluckhohn Value

Orientations
,
2000
http://academic2.american.edu/~zaharna/kluckhoh
n.htm

R.S. Zaharna Understanding Cultural Preferences of

Arab Communication Patterns [in:] Public Relations
Review, volume 21, issue 3, Autumn 1995

J. Lehtonen Country Image and Consumer

Nationalism. Case Arla and the Mohammed Cartoons
Episode [in:] Ch. M. Schimdt, D. Neuendorff
Sprache, Kultur und Zielgruppen,
DUV, 2008

A. Maamoun Guilty by association: The Boycotting

of Danish Products in the Middle East [in:] Journal
of Business Case Studies volume 4, number 10,
2008
W. Doesum Crisis Communication in a Globalization
World: Arla and the Cartoon Crisis, a master thesis,
2008
http://209.85.135.132/search?q=cache:L0dWUfYta7
IJ:theses.cbs.dk/bitstream/handle/10417/299/wout
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ebdaa20.jeeran.com/
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TheEconomist.com
WhyMuhammad.com
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BuyDanish.home.comcast.net
www.al-bab.com/media
www.emel.com/article?id=58&a_id=1385
www.clearlycultural.com/geert-hofstede-culturaldimensions
www.instituteforpr.org/essential_knowledge/detail/g
lobal_public_relations/
http://infidelsunite.typepad.com/counter_jihad
vb.alhilal.com/showthread.php?t=662059
http://gatesofvienna.blogspot.com/2006/06/newdanish-export-dhimmicheese.htmlhttp://saaid.net/mohamed/
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