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![BP: Crisis Management Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Johnson & Johnson, The Tylenol Murders (cont.)
Warnings were given to distributors and
hospitals. The public was offered a $100,000
reward for details leading to arrest of a
suspect. Bottles with tamper-proof packaging
were developed and packaged with
discounts.
The Washington Post commended J&J for
“effectively [demonstrating] how a major
business ought to handle a disaster."
Market share of Tylenol fell from 35% to 8%,
then rebounded in 12 months. Several years
later Tylenol was the top over-the-counter
analgesic in the US, due in part to J&J’s
swift response to a threat to
customers.](https://image.slidesharecdn.com/bp-eng-preso-101212064437-phpapp01/75/BP-vs-The-Internet-40-2048.jpg)
Uploaded byAngela Natividad
BP vs The Internet
The document analyzes BP's public relations struggle following the Deepwater Horizon explosion, highlighting their inadequate response and subsequent attempts to control the narrative through social media. Despite increased activity on platforms like Twitter and YouTube, user dissatisfaction grew as many felt BP's communication was disingenuous, leading to the rise of parody accounts and criticism of BP's efforts. Ultimately, BP's failure to provide a sincere apology and transparent communication exacerbated their crisis, illustrating the challenges companies face in managing public perception in the digital age.
BP vs The Internet
- 1. BP vs. TheInternet Anatomy of a PR War by Angela Natividad
- 2. Summary The Event BP andCrowdsourcing The Analysis Crisis Management Examples Conclusion
- 3. 20 April 2010 TheDeepwater Horizon Explosion occurs, killing 11 workers. The affected well freely gushes oil into the sea.
- 4. A BP pressrelease promises to “mobilize” resources. By 30 April, 10 days later, its response is branded “inadequate.” What follows are BP’s attempts to control the story of what is happening ... as users create their own version.
- 5. BP on For BP,Twitter presented an ideal way to deliver timely updates on reparation, resources, apologies and warnings to users in the area.
- 6. ................................................................................................... Subscriptions to theofficial @BP_America account doubled in 15 days, hitting 4476 followers as of 4 May, an average rise of 80-200 new followers daily. @BP_America increased activity threefold (totaling 9 tweets per day).
- 7. ................................................................................................... Users grew dissatisfied with BP’s updates. “The tweets are overwhelmingly one-way announcements with only a few @replies (less than 1% of the total, that is, only two). Perhaps not surprisingly, the account retweets @oil_spill_2010.” - The Moderate Voice blog @Oil_Spill_2010 began as an anonymous effort to provide useful information on the spill. Today it is updated by the Joint Information Center Staff. BP’s frequent retweets of this account suggests @Oil_Spill_2010 was better equipped to serve users. This behavior suggested BP had something to hide.
- 8. ................................................................................................... Twitter rebellion begins. Fake accounts and an ironic #bpcares hashtag spread vitriole about BP’s social mishandling. Left image credit:TheModerateVoice.com
- 9. ................................................................................................... The most popular spoof account launches 19 May: In eight days, @BPGlobalPR has 60,000 followers vs. @BP_America’s 7200. It also launches a T-shirt line! Proceeds go to charity. Left image credit:TheModerateVoice.com
- 10. ................................................................................................... 24 May: BPtells AdAge it doesn’t care about @BPGlobalPR. BP’s spokesperson isn’t sure if the company has taken action or not. He’s also not a Twitter user.
- 11. ................................................................................................... 27 May: Fans of @BPGlobalPR grow bored with @BP_America. They hack it. “ BP catches the hack. Moments later, @BP_America goes back to tweeting “progress” on clean-up efforts. ”
- 12. BP on In May,BP began broadcasting aggressively on YouTube - the perfect medium for sharing live efforts, letting affected Gulf inhabitants tell stories, and providing safety tips.
- 13. ....................................................................................................... BP kicks offa “satellite media tour” on 27 May. Videos that follow include community outreach interviews, environment and wildlife checkups, status updates.
- 14. ....................................................................................................... Response is not positive. Of the few comments, no one says anything nice. Users are displeased by these inauthentic gestures of transparency. The videos feel heavily-produced, with emotion and negative truths left out.
- 15. ....................................................................................................... BP spoofs start flooding YouTube. Also popular are videos of animals that are sick, or covered in oil.
- 16. ....................................................................................................... 30 May: Aftera long silence, Tony Hayward appears on TV. His message to mankind: “I’d like my life back.”
- 17. ....................................................................................................... 3 June: BProlls out first TV ad with Hayward and a more scripted appearance. It is seen as “backpedaling” and an attempt to displace blame.
- 18. ....................................................................................................... Mid-June: after hisrepeated attempts to reach them, BP takes advice from ... Kevin Costner!
- 19. ....................................................................................................... The spoof videothat follows compares BP’s treatment of the oil spill to its hypothetical treatment of a coffee spill. Kevin Costner also comes to the rescue. “BP Spills Coffee” hosted 11 million views from June-September. BP’s YouTube page of 100+ videos saw 4.6 million views total.
- 20. BP and Crowdsourcing Thepower of the crowd presented a special opportunity. Everyone was connected, concerned and eager to help solve BP’s problem. It had a world of volunteers, intellectual resources and creative minds at its disposal. If only they had listened. Photo credit: James Cridland
- 21. ........................................................................................... May’s end: crowdsourcedcompetitions to ironically rebrand BP appear on the ‘net.
- 22. ........................................................................................... Contributions are inthe thousands. All are negative. Bloggers showcase the best ones.
- 23. ........................................................................................... Profiting from thetrend, Mark Skwarek and Joseph Hocking build a mobile app that uses augmented reality to let you “rebrand” BP’s logo in the real world. It is featured in Wired as a model for inventive use of AR.
- 24. ........................................................................................... But it isn’tall bad. In June, InnoCentive informs BP of its plans to launch a contest seeking solutions for the oil leak. InnoCentive helps R&D departments solve problems via crowdsourcing. Its network includes 200,000 engineers worldwide. It offers BP the solutions it receives for free.
- 25. ........................................................................................... BP refuses tolook at the solutions. InnoCentive blogs about it. “ ”
- 26. ........................................................................................... But what if somebody did have a solution? ➡ The best place to share it was on a phone number buried in BP’s contact list. Users could record a message on a machine. A decided fail.
- 27. June-July: Failed attemptsto seal the damaged well, and equally poor attempts to sooth the public, aggravate users further. Scandals circulate.
- 28. Among reporters seekingaccess to the beach, and being refused, is CNN’s Anderson Cooper. He gives damning analysis of BP’s failure to be transparent, comparing it with a revocation of First Amendment rights.
- 29. 10 June: ActorEdward James Olmos manages to get where others can’t, and launches a short film. The film includes interviews with affected people on the Gulf of Mexico. It depicts humanity in devastation and fear.
- 30. BP fights back... with ads and a human sacrifice. In June it spends $3.59 million on Google ads, making it one of Google’s top clients. In total, $93 million is spent on TV, newspaper and other ads “to counter images of the mounting disaster” between April and July, according to The LA Times. On June 21, it replaces Tony Hayward with Robert Dudley.
- 31. Response to thead spend is generally negative. “It feels like BP is overdoing it” with its advertising, said Rep. Kathy Castor (D-Fla.), who asked for the spending figure. “It’s really making people angry. Every day you get up and see these full-page ads in every newspaper and the TV ads. It’s really ticking people off.” “While BP’s advertising campaign ramped up, businesses and the gulf communities struggled to deal with the costs of the disaster,” Castor said. “While BP certainly has the right to advertise, its approach has been insensitive to the taxpayers and business owners harmed by the Deepwater Horizon blowout.” — The LA Times Image credit:Trucknroll
- 32. By August, BPstation owners consider rebranding stores. Story: Marketwatch
- 33. 19 September: thewell is close to being sealed for good, but BP’s communications remain much the same. Unreliable live feeds. Twitter points to Facebook, which points to... ...an outsourced claims service, more PR videos.
- 34.
- 35. BP: The Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The cost of not getting it right Loss of stock value estimated at $70 billion as of June 2010. BP plummets from Interbrand’s Top 100 brands. Company dividend estimated to be 65% lower in 2011. This does not include reparation, legal fees (including punitive damages), $25-30 million for each state tourism board affected, a 10% rise in upstream production costs (totaling an estimated $280 million per year) and the $20 billion claims fund. Production cost figures, Reuters:
- 36. BP: The Analysis ...................................................................................................... Online strategy-wise, BP’s bases were covered: Gulf of Mexico Response subsite YouTube channel FlickR and Facebook presence Twitter page Visibility in top 1000 Google search terms related to “oil spill” What went wrong? BP didn’t provide what people needed: a sincere apology, a sense it understood the horror of what it did, and a conviction to make things right. What follows: a few examples of what those three things look like. Image credit: BP America
- 37. BP: Crisis ManagementExamples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Example 1: Domino’s Pizza, Service in Bad Taste 2009: 2 Domino’s workers filmed themselves abusing food before serving it. CEO Patrick Doyle apologised quickly on YouTube: no music, no scripted feel, no fancy camera angles. In 2010 he was featured in Domino’s Pizza Turnaround, an campaign to change how the company’s pizza is made. Because their embarrassment was obvious and efforts to change were sincere, the turnaround was well-received.
- 38. BP: Crisis ManagementExamples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Example 2: Southwest Airlines, Too Pretty to Fly 2008: Two girls ejected from a Southwest flight contacted media, saying they were “banned for life” for being “too pretty to fly.” Southwest quickly released a video explaining the situation: no one can be banned for life, and the girls were ejected for dangerous behavior in-flight. The calm, simple and honest approach changed the media’s spin on the story.
- 39. BP: Crisis ManagementExamples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Example 3: Johnson & Johnson, The Tylenol Murders 1982: Seven Chicagoans died after swallowing Tylenol capsules filled with cyanide. Someone was stealing bottles from stores, poisoning them and putting them back. Tylenol parent Johnson & Johnson became the largest advocate for consumers discovering the threat. In a week, it issued a nationwide recall of Tylenol products. When it learned only capsules were affected, it replaced them with tablets for free.
- 40. BP: Crisis ManagementExamples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Johnson & Johnson, The Tylenol Murders (cont.) Warnings were given to distributors and hospitals. The public was offered a $100,000 reward for details leading to arrest of a suspect. Bottles with tamper-proof packaging were developed and packaged with discounts. The Washington Post commended J&J for “effectively [demonstrating] how a major business ought to handle a disaster." Market share of Tylenol fell from 35% to 8%, then rebounded in 12 months. Several years later Tylenol was the top over-the-counter analgesic in the US, due in part to J&J’s swift response to a threat to customers.
- 41. BP: Crisis ManagementExamples .............................................................................. What these successes have in common ✓Super-fast response ✓A candid, human feel ✓Efforts to put people first, brand image second
- 42. BP: Conclusion .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BP’s Mistake: Underestimating the speed of an internet that defined the narrative. BP believed that if it were present on all the right social media, it wouldn’t truly have to change its formal, slow and unapologetic PR approach. The Truth: When something bad happens, people don’t need your press releases and slick videos. They must know you recognize the consequences of your actions, and that you will be the first resource they can turn to for help resolving it. You don’t need social media for that. But it helps. A lot.