Pepsi crisis in 1993

1. CRISIS SITUATION IN AN ORGANISATION
AND MANAGERIAL SOLUTION
NAME:PREETHA P.T
REGISTER NUMBER:RA1952001020005
SUBJECT: MANAGERIAL SKILLS
COURSE AND SECTION: I YEAR MBA –’A’
TOPIC: Pepsi crises in 1993

2. PEPSI SYRINGE CRISES OF 1993

3. HISTORY
• In 1893, Caleb Bradham created a drink in his home
spicing it with kola nuts and the enzyme pepsin.
• At first, he called it “Brad’s Drink” and this was the first
name of Pepsi Cola.
• It was so delicious that he soon started selling it in his
neighborhood.
• Later, in 1998, this tasty beverage was renamed
to Pepsi Cola and this was when the start of this
world brand was put.

4. THE CRISES HITS
• On June 10, 1993, a Seattle television station
reported that a local couple had discovered a syringe
in a can of Diet Pepsi. Soon, a second complaint in
Seattle surfaced.
• The pattern prompted the U.S. FDA to issue a
regional advisory, urging consumers to empty the
contents of their Diet Pepsi cans into a glass before
drinking. The warning commanded national media
attention, and within 24 hours, reports of syringes in
Diet Pepsi cans in disparate locations around the
country led every network news broadcast.

5. • The intensity of public and regulatory scrutiny, the
frightening images of potentially contaminated
syringes in Diet Pepsi cans and the threat to the
peak July 4th holiday sales period presented Pepsi-
Cola Company with an unprecedented challenge to
its trademarks and to its reputation.
• The media, unaccustomed to this course of action
for an alleged product tampering of this magnitude,
persisted in reporting "victims" claims and in looking
to the Company for answers

6. RESEARCH
• Pepsi also performed qualitative research, in which
they performed polygraph tests to get the truth from
the victims themselves.
• Crisis plan was evolved into sophisticated
communication network.
• Effective communication is the key element in
resolving the crisis successfully.
• The crisis plan activated pepsi crisis team planned
and executed a response.

7. PLANNING
• Response plan was triggered from day one of the
crisis
• The company created an action strategy that put a
face to the brand and aimed to show consumers the
steps being taken to disprove the claims.
• Centralized communication channel were established
to reach all the group affected.
• To work closely with FDA
• To communicate the facts early and often to the
audiences.

8. EXECUTION
• Crisis teams updated communication to target
groups.
• Company worked quickly to understand the problem
thoroughly.
• On-site interviews,making films of canning lines and
issuance of press release assured consumers to
answer them.
• FDA termed the issue”the victim cycle of media
reports begetting copycat complaints”.

9. EVALUATION
• Consumers bounced back and showed their
confidence in pepsi
• Pepsi’s crisis campaign was evaluated as a major
success, because it helped the company reach its
programming objectives
• . PepsiCo aimed to unveil the truth by educating
consumers on the innocence of the brand, all while
maintaining its good reputation.
• From start to finish, Pepsi’s communication saved the
brand, because the public was always informed as
new information was unveiled

10. • The key element in developing audience awareness
because it put a face to the brand that directly
answered consumer questions.
• press release and video explaining the manufacturing
process, helped audiences develop a positive change
in attitude.
• The final piece of programming, the surveillance
video, brought the entire campaign full circle.
• It ended the situation once and for all by providing
hard evidence in favor of Pepsi

11. BIBLIOGRAPHY
• www.jennalangblog.files.wordpress.com
• en.wikipedia.org
• www.apps.prsa.org