How to Survive and Thrive During a Food Recall Media Crisis
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Transcript of How to Survive and Thrive During a Food Recall Media Crisis
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How to Survive and Thrive During a Food Recall Media Crisis
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Crisis Communication
Prevent Prepare Address Recover
= 75%
} 25%
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Prevent it!
Effective product development
Rigorous specifications: build, adhere, change with great care
Independent QAOnly you can prevent product recalls
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Management Communication Project Management Communication
CEO
Finance HR Legal Sales & Marketing
Supply Chain
QA
Purchasing
R&D
Effective product development systems
• “Machineable” product design
• Innovation and new processes
• Cost-savings initiatives that affect product design
• Supplier qualification
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Rigorous specification process
Integrated product design process QA testing new resources; new products; new
formulations Cross-functional involvement in and
approval of final product specs Monitor and adhere to specifications
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Independent QA Direct, clear access to CEO
Dotted line reporting Avoid straight-line (only) to Manufacturing
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Be Prepared
"He who fails to plan is planning to fail.”
- Winston Churchill
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Stuff Happens Natural Disasters
Supplier errors
False Rumors
Product Tampering
Equipment & Tech failure
Human error industrial accident
Human error harmful product
Organizational misdeeds
SOURCE: Crisis Management & Communications
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Stuff Happens Environmental Issue/Accident
Investigation/Lawsuit/Fine/Settlement
Poor Financials/Stock Performance
Structure/Ownership Issue (M&A, etc.)
Management Change/Dismissal
Incident/Allegations
Consumer Complaint/Issue
Employee Complaint/Issue
Labor Dispute
Workplace Injury/Fatality
SOURCE: Crisis Management & Communications
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Do you have a Plan? Marketing communication plans and process in place Specific Public Relations contact Can mobilize and execute broad
communication initiative …. cohesively Existing media list and relationships ‘Media capable’ – traditional and social Tested it via ‘dry run(s)’
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Fix the Product Issue
• Inform Sales Team• Inform Supply Chain Partners
• Brokers, Distributors, etc.
• Retailers• Inform regulatory agency
(e.g. FDA)
Inform Constituents
• Inform Media• Inform Consumers• Structure and Leverage Feedback Loops
Protect and make wholeProtect and maintain
reputation
Cohesive Communications Plan
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Fix the Product Issue
Knowledge = Product Liability and Responsibility
There’s nothing to “spin”
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Key Elements
Scope of the problem Geographies, brands, skus = = Clear and
complete How to identify
What they need to do, when, how to inform that it has been completed
Where to get additional information, who is their key contact
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http://www.rapidrecallexchange.org/
Centralize Recall Communication
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Regulatory Agencieswww.fda.gov Safety Reporting Portal
www.usda.gov FSIS Recalls Portal
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Fix the Product Issue
• Inform Sales Team• Inform Supply Chain Partners
• Brokers, Distributors, etc.
• Retailers• Inform regulatory agency
(e.g. FDA)
Inform Constituents
.
• Inform Media• Inform Consumers• Structure and Leverage Feedback Loops
Protect and make wholeProtect and maintain
reputation
Cohesive Communications Plan
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PR
• Craft key messages
• Distribute• Handle media
and influencer communications
• Hotline• CRM/database
capturing •
Analysis/reporting of inquiries
• Alerts•
Announcement ads
• Public Service Announcements
Customer Service AdvertisingInteractive
• Online crisis management
• Web-based communications
• Reputation monitoring
• Social media: FB, Twitter, YouTube
Crisis Communications
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Key Elements Scope of problem
Geographies, brands, skus =>Clear and complete
How to identify What recipient needs to do Where to get additional information Who to contact for additional (emergency)
help
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Marketing/PR Crafts Key Messages
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Website Landing Page and….
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….Dedicated Recall Page
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PR
• Craft key messages
• Distribute• Handle media
and influencer communications
• Hotline• CRM/database
capturing •
Analysis/reporting of inquiries
• Alerts•
Announcement ads
• Public Service Announcements
Customer Service AdvertisingInteractive
• Online crisis management
• Web-based communications
• Reputation monitoring
• Social media: FB, Twitter, YouTube
Crisis Communications
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You Can’t Control the Message1 – WayCompany controlledMass marketPersuade to buy
2+ – Way DialogueConsumer controlledNiche/micro-target marketEngage to earn relevance
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“No Comment” is not an option
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Key Elements Scope of problem
Geographies, brands, skus =>Clear and complete
How to identify What recipient needs to do Where to get additional information Who to contact for additional (emergency)
help Make whole – rebuild customer loyalty
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Manage the Message…..
Media Contact identifies appropriate Spokesperson
Media Contact supports Spokesperson Crafts talk points Media trains Spokesperson Present with interviews
You may need to hire a PR/Crisis Communications company (from your ‘Rolodex’)
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Public Relations
Be Quick, Contrite and Responsible
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Marketing/PR Crafts Key Messages
• ONE Media Contact• All Media Requests go to Media Contact
• Media Contact decides which/how to respond
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…Select the Messenger
Media Contact identifies appropriate Spokesperson Title and expertise (CEO, Quality Assurance –
NOT Sales) Articulate, credible, and appropriate for that
medium
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Tell YOUR Story
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Dry Run • Walk through a hypothetical Product Recall• Post-audit, fix readiness gaps• Document procedures
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Recovery
• Move On: Consumers are very forgiving• Tell and widely publicize your positive story• Rebuild customer and consumer loyalty
•Make Whole PLUS
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PR
• Craft key messages
• Distribute• Handle media
and influencer communications
• Hotline• CRM/database
capturing • Analysis/
reporting of inquiries
• Alerts•
Announcement ads
• Public Service Announcements
Customer Service AdvertisingInteractive
• Online crisis management
• Web-based communications
• Reputation monitoring
• Social media: FB, Twitter, YouTube
RECOVERY Communications
Make Customers Whole PLUS
Tell YOUR StoryPromote event
Tell YOUR StoryPromote event
Refund + Repurchase Offer
Promote event• “Re”-trial • Repeat
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Food Recall Crisis = Opportunity
• Resume positive brand communication
• Incent trade partners to restock and promote your brand
• Incent consumers to retry your brand
• Provide additional incentive for repeat business and goodwill
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-15%
+7%Share prices of companies that mishandle a crisis one year later
Share prices of companies that handle a crisis well one year later
Source: The Impact of Catastrophes on Shareholder Value; Sedgwick Group, Knight and Pretty
Food Recall Crisis = Opportunity
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Crisis Communication
Prevent Prepare Address Recover
= 75%
} 25%