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INDIVIDUAL REPORT - CASE STUDY ESSAY

(Vietjet Air reputation has been severely damaged by the "Changzhou bikini scandal" regarding the
reception of the U23 Vietnam football team after the 2018 AFC U-23 Asian Cup final)

The Family Mart's hot pot was accused of having "three

cockroaches"

NAME: LE TRONG DUC

CCM201: COMMUNICATION CRISIS MANAGEMENT
LECTURE: HOANG VU QUOC ANH
DATE: 25/10/2023

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TABLE OF CONTENTS

A. Abstract Introduction:.......................................................................................................2

B. Review of Literature:.........................................................................................................3

C. Overview.............................................................................................................................3

D. Introduction about Vietjet Air Co.....................................................................................4

E. Crisis Timeline and Response Taken..............................................................................5

F. Media Analysis...................................................................................................................9

G. Stakeholder Impact.........................................................................................................11

H. Lesson Learned...............................................................................................................13

I. Recommendation..............................................................................................................13

J. References........................................................................................................................14

A. Abstract Introduction:
Crises and the management of these crises have always been a part of business operations and
organizational management. In today's world emergencies can arise unexpectedly and rapidly
spread through social media channels. A prime example of this is the case of FamilyMart, a
convenience store facing accusations of serving a meal infested with "3 cockroaches," which
has the potential to significantly impact the brand reputation and customer trust.

By examining the details surrounding this crisis we have an opportunity to gain insights, into
how organizations handle emergency situations, manage their communication strategies and
respond to concerns related to product quality. This essay will delve into the FamilyMart
crisis analyzing aspects of the incident while also proposing lessons learned and
improvements that can be implemented to prevent similar situations from occurring in the
future. This crisis serves as a demonstration of how crisis management and food quality
control play roles in a constantly evolving business landscape..

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B. Review of Literature:
Issues can exert a significant impact on an organization's operations, stemming from various
sources such as shifts in the business landscape, changes in consumer behavior, technological
advancements, resource availability, and alterations in regulatory or legal frameworks. To
mitigate adverse consequences and seize opportunities, organizations must proactively
identify and address these issues. Staying informed about trends affecting their operations
allows organizations to develop effective strategies and plans.

Neglected external issues can escalate into genuine crises for businesses, severely affecting
their operations and tarnishing their reputation. The ability to effectively address these
problems hinges on adept communication and information dissemination. However, within
the context of business risk management, recognizing and comprehending these issues is
imperative. It is not uncommon for individuals to perceive problems as inconsequential,
mistakenly believing that they do not impact the business.

In reality, early problem resolution not only serves to mitigate risks but also contributes to the
establishment of a positive reputation among consumers. Such proactive measures
demonstrate a sense of responsibility and attentiveness toward customer needs and
preferences. Nonetheless, the most effective course of action remains prevention rather than
remediation.

C. Overview
In a recent incident, FamilyMart, a popular convenience store chain, faced a social media
uproar. On September 4, 2022, a customer shared a post on social media, complete with
magnified images taken under a microscope, alleging the discovery of what appeared to be
"cockroaches" in a hotpot meal purchased from FamilyMart. This post quickly gained
traction within the online community, sparking widespread concern.

FamilyMart responded promptly by verifying the information and including magnified

images to demonstrate that the object found in the hotpot was not, in fact, a "cockroach."
They also provided images of the meal's ingredients, specifically the chili seeds, for
comparison. Following this verification and clarification, FamilyMart issued an apology to
customers for any distress and inconvenience caused by the incident. They announced that,
beginning on September 7, they would resume selling the hotpot product.

The social media post rapidly received significant engagement from netizens, particularly
loyal FamilyMart customers. Many expressed relief that the incident had been swiftly
clarified and indicated their intention to continue supporting the store's products.

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(The hot pot dish that Mr. H. purchased at the FamilyMart branch in District 8 is suspected of having cockroaches -
thanhnien.vn)[1]

D. Introduction about Family mart company.ltd

In a world where convenience is king, FamilyMart has emerged as a global powerhouse in
the convenience store industry. Originating in Japan in 1973, this retail giant has expanded its
reach far beyond its home country and now graces numerous corners of the globe, including
Vietnam. FamilyMart's journey from a single storefront to an international phenomenon is a
testament to its commitment to meeting the evolving needs of consumers. This essay delves
into the global presence and success of FamilyMart, shedding light on its rapid expansion, its
unique qualities, and its impact on the Vietnamese market.

FamilyMart, the world's second-largest convenience store chain with over 24,000 stores
globally, is expanding its business model, particularly in Asian markets, aiming to become
the leading convenience store chain in Asia.

"I firmly believe that Vietnam is a dynamic and rapidly developing retail market, driven by
modernization efforts in consumer product distribution," says ASAKAWA TATSUHIKO,
the CEO of Family Mart Vietnam.[2]

With its roots in Japan and experience in operating in Southeast Asian countries,
FamilyMart's goal is to provide Vietnamese consumers with a comfortable, friendly, and
reliable shopping environment, offering convenient and attractive products for everyday
needs.

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Their mission is to make every customer feel like they are coming home after a long day,
embracing the slogan "Welcome to the Family." They value each smile and customer
satisfaction every time someone visits a FamilyMart store.

FamilyMart's vision is to enhance the quality of life and be an essential part of every
community they serve.

Their core values revolve around customer hospitality, professional service, convenience,
creating a vibrant in-store experience, and contributing positively to the community. With
these principles, FamilyMart strives to become a beloved and integral part of Vietnamese
society.

E. Crisis Timeline and Response Taken

Crisis management is a critical facet of modern organizational governance, especially in the
digital age where information travels at the speed of light. This essay examines a recent crisis
that unfolded at FamilyMart, a well-known convenience store chain, stemming from a
customer's alarming claim that their hotpot contained three "cockroaches." The incident,
unfolding in early September 2022, showcases the importance of effective crisis management
and communication.

It all began when a 21-year-old customer residing in District 8 took to social media to share a
disturbing experience. This customer had visited a nearby FamilyMart on September 4 and
purchased a hotpot for 32,000 Vietnamese Dong. However, upon returning home and
beginning to enjoy their meal, they made a shocking discovery. What they had assumed to be
small, squishy, white worms akin to "cockroaches" were found in their hotpot.

(U23VN plane at Noi Bai Airport The images of what are suspected to be "cockroaches" found in FamilyMart's hot pot
posted on social media on September 4th have left many people alarmed.- thanhnien.vn)[1]

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On September 5, 2022, FamilyMart swiftly responded to the incident by promptly

acknowledging the customer's complaint and initiating a comprehensive investigation to
verify the accuracy of the claims.

(FamilyMart Vietnam has announced the temporary suspension of hot pot sales at all of its brand's stores.- thanhnien.vn)

On the evening of September 5, 2022, FamilyMart took a significant step by temporarily

halting the sale of their hotpot products in all their stores. This action underlined the
company's commitment to addressing the incident promptly and prioritizing customer safety
and well-being.

The following day, September 6, 2022, FamilyMart's official fanpage released a

comprehensive statement in response to the incident that had garnered significant public
attention. In their statement, the company disclosed that they had carefully considered the
customer's feedback, conducted a thorough verification process, and received the results of an
independent third-party examination. Their conclusion was that the object pointed out by the
customer was not a "larva" but rather a component found inside a chili seed, thereby
confirming the safety of their product. To provide clear evidence, the post included magnified
images of the object discovered during the investigation and images of chili seed components
for comparison.

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On September 7, 2022, FamilyMart, demonstrating transparency and a commitment to

customer satisfaction, issued a formal apology to their customers for any concerns or
inconveniences stemming from the recent hotpot incident. Simultaneously, they announced
the resumption of hotpot product sales, symbolizing their readiness to move forward.

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F. Media Analysis
The FamilyMart incident, where a customer claimed to have found three "cockroaches" in
their hotpot, not only highlighted the importance of swift crisis management but also
underscored the influential role of media in shaping public perception. This media analysis
dissects the various aspects of how the incident was covered, shared, and discussed across
different media platforms.

(Social media accounts express regret and hope for a response from FamilyMart, anticipating that the company will
provide an answer.- Facebook)

The crisis began when a 21-year-old customer shared their shocking experience on social
media. Social media, with its wide reach and rapid dissemination capabilities, played a
pivotal role in amplifying the incident. The post quickly gained traction, causing an
immediate uproar within the online community. Users shared, commented, and reacted to the
post, intensifying the public's interest and concern.

News outlets and online media picked up the incident, contributing to the amplification. The
incident's dramatic elements, including the notion of finding "cockroaches" in a popular food
product, made it ripe for sensationalism. Headlines and articles often employed attention-
grabbing language, which can have a polarizing effect and further stoke public interest.

(The news media continuously updates the situation on the internet.- Internet.)

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FamilyMart's media response was swift and comprehensive. They not only acknowledged the
incident but also provided visual evidence to debunk the "cockroach" claim, offering
magnified images and comparisons to chili seeds. This approach aligned with the crisis
communication strategy, emphasizing transparency and immediate clarification.

The involvement of independent third-party examination was crucial for media validation.
The statement from FamilyMart citing the examination results carried significant weight, as it
added a layer of objectivity to the narrative. The use of magnified images to provide visual
evidence for the public played a crucial role in corroborating their claims.

(FamilyMart promptly acknowledges the feedback and conducts a thorough investigation to verify the accuracy of the
incident.- thanhnien.vn)

The media played a dual role in this incident. While it initially fueled public concern and
outrage, FamilyMart's swift response and presentation of evidence helped to clarify the
situation. The incident demonstrated how media can significantly influence public perception
but also how organizations can use media to mitigate the damage caused by a crisis.

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Media analysis also indicates that FamilyMart's loyal customers expressed relief and support
following the clarification. The incident showcased how a well-executed crisis response can
not only protect the brand but also bolster consumer trust and loyalty.

In conclusion, the FamilyMart incident exemplifies the media's power in shaping public
perception during a crisis. Swift, transparent, and evidence-backed responses are essential for
organizations to navigate such situations and manage their reputation effectively. This case
serves as a valuable lesson on the interplay between media and crisis management in the
digital age.

G.Stakeholder Impact
The FamilyMart incident, revolving around a customer's claim of finding "cockroaches" in
their hotpot, showcased the profound influence of crisis events on an array of stakeholders
closely associated with the organization.
Customers:
The incident triggered an immediate ripple effect on customers, prompting concern and a
temporary dip in trust. However, FamilyMart's swift and transparent response played a
pivotal role in restoring customer loyalty and trust in the brand, underlining the significance
of effective crisis management in preserving consumer relationships.

Employees:
Frontline employees experienced the initial repercussions of the crisis as they faced customer
inquiries and concerns. Additionally, the suspension of hotpot sales impacted those involved
in its preparation. FamilyMart's adept crisis management helped in assuaging employee
morale and confidence in their workplace.

Shareholders and Investors:

Shareholders and investors were initially apprehensive due to the crisis, which momentarily
affected the company's stock value. Nonetheless, FamilyMart's crisis management and
evidence-supported response contributed to regaining confidence among this stakeholder

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group, highlighting the critical role of efficient crisis resolution in upholding stakeholder
trust.

Suppliers:
The incident's implications extended to FamilyMart's suppliers, causing disruptions in their
supply chains and business operations. However, the decision to resume hotpot sales
alleviated these concerns and restored normalcy in supplier relationships.

Competitors and Industry Peers:

The incident served as a model for competitors and industry peers, emphasizing the value of
transparency and proficient crisis management. FamilyMart's exemplary response set a
constructive precedent in the industry, portraying the importance of crisis resolution in
shaping public perception and market dynamics.

Regulatory Authorities and Watchdogs:

Regulatory entities closely monitored the incident, assessing FamilyMart's quality control and
food safety practices. The company's transparent and cooperative approach with these
authorities influenced the regulatory outcome and established its commitment to regulatory
compliance.

H.Lesson Learned
The FamilyMart incident, marked by a customer's unsettling discovery of "cockroaches" in
their hotpot, has imparted critical lessons in the realm of crisis management. Firstly, it
underscores the paramount importance of a swift response, particularly in an age where
information spreads rapidly. Delayed reactions can amplify a crisis, highlighting the
significance of immediate acknowledgment and action, a principle exemplified by
FamilyMart.

Transparency is identified as the foundational principle in crisis management, and

FamilyMart's transparent approach in sharing information has played a pivotal role in
fostering trust. It demonstrates an organization's commitment to honesty and accountability,
which are crucial during a crisis.

Evidence-backed communication emerges as a potent tool to counter allegations and build

trust. By providing empirical evidence, as illustrated by FamilyMart through magnified
images and comparisons, an organization can bolster its credibility and reinforce a credible
narrative.

Frontline employees assume a pivotal role during a crisis, as they directly engage with
customers. Employee training in crisis communication is essential to effectively address

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customer concerns and maintain positive customer relations, as exemplified by FamilyMart's

crisis response.

A customer-centric approach stands out as a key lesson. FamilyMart's genuine concern for its
patrons illustrates the importance of prioritizing customer welfare and preserving customer
loyalty.

The incident also emphasizes the non-negotiable nature of regulatory compliance.

Organizations must adhere to rigorous quality control and food safety standards, and
cooperation with regulatory authorities showcases a commitment to industry regulations.

Lastly, the positive resolution is pivotal in crisis management. FamilyMart's decision to

resume hotpot sales serves as a powerful example of concluding a crisis on a positive note,
mitigating the long-term impact on an organization's reputation.

I. Recommendation

To bolster its crisis management capabilities, FamilyMart should focus on several key
strategies. First and foremost, strengthening crisis preparedness is imperative. This involves
developing a comprehensive crisis management plan and conducting regular drills to ensure
employees are well-prepared. Employee training in crisis communication should be a
priority, as frontline staff play a crucial role in managing customer interactions during crises.

Monitoring social media is vital in today's digital age, as is implementing a rapid response
team to expedite decision-making and communication. Engaging in stakeholder relations,
regularly reviewing and updating crisis protocols, and fostering a culture of quality assurance
are essential steps. FamilyMart should also prioritize transparency and credibility, building
trust through evidence-based communication. Lastly, collaboration with industry peers can
provide valuable insights and support in crisis management.

J. References
[1]
Cao An Biên(2022) ‘Lẩu ly FamilyMart bị tố có dòi: Cửa hàng thông báo chính thức về vụ việc’, Thanhnien, September
30, 2022. Available at: https://thanhnien.vn/lau-ly-familymart-bi-to-co-doi-cua-hang-thong-bao-chinh-thuc-ve-vu-viec-
1851497118.htm (Accessed 14 June 2023)

[2]
Family mart, Ve Chung Toi, 2023. Available at: https://www.famima.vn/ve-familymart/phuong-cham-familymart/

[3]
Studocu,Available at: https://www.studocu.com/vn/document/truong-dai-hoc-can-tho/doc-hieu/vu-viec-lau-ly-cua-family-
mart-bi-to/36583822

[4]
Youtube,Available at: https://www.youtube.com/results?search_query=family+mart+c%C3%B3+d%C3%B2i+

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