5. Overview
• June 1993, Seattle television station reported discovery of
a syringe in a diet Pepsi can by a local couple.
• Issuance of regional advisory by U.S. FDA gave warning
to consumers which spread through news broadcast
within 24 hours.
• July 4th holiday sales period presented pepsi-Cola with a
challenge to trademark and reputation.
• Media persisted reporting victims claims and looking
company for answers.
6. Research
• Pepsi’s long standing crisis response guidelines were researched.
• Crisis plan was evolved into sophisticated communication
network. .
• Effective communication is the key element in resolving the
crisis successfully.
7. Continue…..
• In 1993 the crisis plan activated pepsi crisis team
planned and executed a response.
• To end scare and restore public confidence in its
products.
8. Planning
• Response plan was triggered from day one of the crisis
• Objectives
Convince the public about safety of the product.
Planned tempering involving syringe couldn’t
logically occur.
• Strategic Approach was used:
To communicate the facts early and often to the
audience.
To work closely with the FDA.
Centralize communication channel were
established to reach all affected groups
9. Execution
• Crisis team 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 vicious cycle of media
reports begetting copycat complaints”.
• Messages and tools were created to counteract the
phenomenon.
10. Execution
• Staff was appointed to deal clients.
• FDA officials concentrated on finding the cause of
syringe claims.
• Pepsi focused on showing its product virtually temper-
proof.
11. Evaluation
• Crisis cost Pepsi $25 million in lost sales
• Consumers bounced back and showed their confidence in
Pepsi.
• Pepsi’s crisis response was deemed a success by
cooperation of FDA and clients.
• Media debated its role in escalating the scare.
• Pepsi was lauded in congressional record by U.S. house of
representatives for its quick and decisive action to end the
national scare.
