Presented By: Group 9

Crisis - Implications
A special form of a product-harm crisis where the negative event centres on one particular brand or a set of brands belonging to the same company Short-term effects of a crisis are lost sales and the costs associated with product recalls

In the long term, the incident can severely damage the affected brand's reputation

The key challenge for companies faced with a crisis is to restore consumer trust in the brand.

For competitors, the crisis is often a great opportunity to steal consumers away from the affected brand.

Effective Crisis Management

Key elements

Sincerity Swiftness Top Management

cutting-edge advertising and purposeful marketing made ONIDA a household name in India. Onida .Crisis at • Household name in television Onida was founded in 1981 and by 1982 the company had started assembling television sets at its own factory • Superior products backed up by distinctive design.

Reasons leading to Brand Crisis • Internal Management Problems • Family feud over control & ownership • Erosion of Market Share • The family feud made it difficult for brand to recover after the successful relaunch of the brand and the return of the Devil • Aging Customer Base • Customers of Onida have grown older with times and the brand has failed to connect itself to the current generation • The „devil‟ in the advertisements is not helping it either .

Reasons leading to Brand Crisis • Frequent Change in Advertising 1980 – Owner ’s pride. neighbors envy 1998 – Nothing but the Truth 2004 – It can change your life 2007 – Experience the desire 2009 – Designed with you in mind .

Dilution of Brand Equity • Brand amnesia • Brand fatigue • Brand paranoia .

The slogan used in the print ad is " Call Your Other Side ". They have reached a consensus and the focus is again on the business. The brand has launched the phones in the price range of Rs 1500-8000. Brand Extension .Brand UPDATE Ventured into mobile phones. The brand calls itself " Wickedly tempting" which will bring the spunkier side in you.

”hidden camera” campaign .Crisis at Tylenol j&j • A product of Johnson and Johnson • Alternative to Aspirin • Effective in the relief of pain and fever but without stomach irritation • Line Extension-Extra-Strength Tylenol in tablet and capsule • 2 massive campaigns before crisis:”hospital campaign”.

Tylenol Crisis • 7 people died after taking Extra-Strength Tylenol containing cyanide poison • Work of some person outside the company • Irreparable damage and difficult to recover .

Tylenol Recovery Complete stock withdrawal Trade promotions. sales calls Weekly tracking surveys Largest Coupon Program Capsule Exchange Offer PR’s TV Ads .

000 reward to apprehend the culprit of the tampering • Briefed Food and Drug Administration . analyzed sample batches of the product • Alerting consumers not to consume Tylenol across the nation • Use of PR. media and paid advertising • Established 1-800 hot line numbers running 24 hours • Held Teleconferences(use of Trust word 5 times) • Offered $100.Role of CEO – James Burke • Formulating 7 member strategy team • Focus on “How do we protect the people” and “How do we save this product” • Immediate withdrawal.

.Crisis at PepsiCo The crisis: A syringe was allegedly found in a can of Diet Pepsi in Washington state. It turned out to be a hoax. The following week. more than 50 reports of Diet Pepsi can tampering sprung up across the country.

such as a comprehensive report on its soda canning process. He along with FDA Commissioner David Kessler. but with the explicit support of the FDA. assured the public that Diet Pepsi was safe. PepsiCo North America CEO Craig Weatherup appeared on news stations armed not only with visual evidence of the bogus reports.PepsiCo‟s Response Both PepsiCo and the FDA were confident that the reports were fabrications The company produced four videos throughout the crisis. . The most compelling was a surveillance tape of a woman in a Colorado store putting a syringe into a can of Diet Pepsi behind the store clerk's back.

.The Result The rumours fizzled out within two weeks following multiple arrests by the FDA for filing false reports. If the company remained quiet and complacent the damage could have been far worse. Diet Pepsi sales had fallen 2% during the crisis but recovered within a month. The situation required an aggressive defence because PepsiCo hadn't done anything wrong.

Crisis at Six of Texaco African-American Damning conversations Texaco's employees sued the company for racial discrimination. . between Texaco executives that were secretly recorded seemed to confirm the issue.

The executives involved were suspended (with pay but without benefits). . Texaco executives went on tour. visiting all branches and sites of the company in person to apologize to the employees.Texaco‟s Response CEO Peter Biljur started off with a public apology and admitted embarrassment. and the company hired African-American owned advertising agency Uniworld Group to run an ad campaign to help douse the flames. pending the result of the investigations.

Additional discrimination checks for executives and managers put in place by Biljur have prevented the problem from sprouting up again. Texaco settled the suit. agreeing to pay $176 million. This was key to the company's image recovery.The Result The Reverend Jesse Jackson was the most vocal opponent to the company. calling for a boycott. but softened his view after Biljur's response. .

including Sheryl Crow.Crisis at HP A letter describing allegations of sexual harassment by former Hewlett-Packard CEO Mark Hurd. to be with you and accompany you when you were out of town at numerous HP events.” . claiming that the married Hurd repeatedly pressured a female contractor for sex and bragged about his popularity with “many” women. The letter describes that he “hand-picked” her to host H-P events. “but more accurately.

CEO Hurd did not violate sexual harrasment policy of the company but he violated code of conduct policy .The fallout HP‟s stock prices fell by almost 20% after this incidence Although an investigation by HP did not find evidence to support Fisher‟s harassment claim. it found Hurd filed inaccurate expense reports for his outings with Fisher.

” Hurd said in a statement when he resigned. .The Result Board asked CEO to resign in August 2010 “I realized there were instances in which I did not live up to the standards and principles of trust. respect and integrity that I have espoused at HP.

Crisis at kingfisher .

Loans given to Kingfisher declared as NPA . No.1 in domestic category 2011 – Shutdown of Kingfisher Red 2012 – Total fleet grounded. 2 in terms of Market share. later rebranded it as Kingfisher Red 2010 – Became no.Kingfisher Crisis 2005 – Inception amid much fanfare 2007 – Acquired Air Deccan.

Financial Mess • High fuel price • High interest outgo due to heavy investment in purchase of aircraft • Overspending/expenses • Highly competitive industry • Business model was not effective • Deregulation act • Recession-lose passenger .

Mallya at F1 • Social-Media Bashing of Siddharth Mallya •Eviction of Mallya from Billionaire Club .Consequences & Fallout • Salaries delayed • Frequent Strikes • Net worth eroded • Totally grounded • Employee Unions threatening to encounter Mr.

out of which 3 months salary will b paid by Diwali. 2nd installment paid on Nov1.Path to recovery • Pledging of personal property by Vijay Mallya • KFA promised to pay 7 months salary by Dec. • Company determined to comeback .

Crisis at Idea • In 2009: Idea along with its creative agency “Lowe” came out with the new campaign “Walk. when you Talk” .

Don't walk when you talk .Opposition by the Govt.

Idea Comeback .

CadburyThe Sweet Giant Of India Cadbury: The sweet giant of India .

• FDA Commissioner went to the media with the statement. • Brand Integrity: came under immense scrutiny and pressure.Worm Controversy Of India Cadbury: The Sweet Giant • October 2003: Just before Diwali. • Impact: • Net Profit: dipped 37% as against the 21% increase the previous year. worms were discovered in 2 bars of Dairy Milk. .

• Big B promoted Big C Result • May 2004: value share went up to 71% • Respect was earned back .CadburyThe Sweet Giant Of India Cadbury: Comeback • Acknowledgement • Project Vishwas Launched • New Packaging in just 90 days.

Some more examples .

.Amitabh Bachhan • Brand: Super Star of the Millennium • Bankruptcy: Miss World Pageant 1996 • Comeback: KBC. year 2000 • Rise to Prominence: • Voted youth icon at 60 • Films: woven around him • Crorepati: Endorses about 36 brands.

Sachin Tendulkar Child Prodigy to Cricketing Legend • Year 2004: Tennis Elbow Injury • Impact: • Out of action • Lost brand endorsements Comeback: • Great series in Australia • 200* at the age of 38. 100 tons • Endorses more than 15 brands .

United Colors of Benetton Unhate Campaign .

Thank You .

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