when negative media hits a company and their sales starts declining how should they respond to gain their credibility back.

7. Take away lessons…
• Agree with your communications strategy and respond
quickly.
•
• The brand reputation is being attacked, not the business
area. Think globally.
•
• Convince individual customers when necessary.
•
•
Think about the impact of Google on the reputation.
Formulate a solid strategy to ensure your side of the
story gets heard.

8. CRISIS COMMUNICATION
#DEEPAK AJITH
#NIRMAL
#ROHIT
#SREEKANTH

9. Introduction
• A crisis is any situation that threatens the
integrity or reputation of your company, usually
brought on by adverse or negative media
attention
• Crisis management involves the best ways to
mitigate this effect.

10. Classification
– Technological crisis
– Confrontational crisis
– Crisis from malevolence
– Crisis of managerial failure

11. Examples of crisis
•
•
•
•
•
•
•
•
•
Sudden change in public perception
Sudden market shifts
Product failures
Management succession
Cash drain
Labour strife
External attack
Adverse international events
Regulation and deregulation of industries

13. 5 Steps for effective Crisis
communication
1. Establish the crisis team
2. Identify and prepare the spokesperson
3. Develop processes and protocols
4. Prepare for media impact on crisis
communication
5. Design away risk

14. Effective audience
• Customers
• Survivors impacted by the incident and their
families
• Employees and their families
• News media
• Community—especially neighbors living near the
facility
• Company management, directors and investors
• Government elected officials, regulators and other
authorities
• Suppliers

15. • Johnson & Johnson's cyanide-laced Tylenol capsules (1982)
The crisis:
Seven people died after taking extra-strength Tylenol capsules that had been laced
with potassium cyanide, a deadly poison.
How J&J responded:




The company put customer safety first.
It quickly pulled 31 million bottles of Tylenol -- $100 million worth
stopped all production and advertising of the product.
got involved with the Chicago Police, FBI, and FDA in the search for the killer, and
offered up a $100,000 reward.
 Post-crisis, the company reintroduced Tylenol with new tamper-resistant
packaging and $2.50-off coupons.
The result:
 Tylenol's response to the tragic 1982 Chicago murders is regarded as one of the
most successful sequences of crisis management in history.
 The media appreciated the lengths J&J went to and its concern for the public
interest, so the company was portrayed generally in a good light, helping the
Tylenol brand to recover.

16. Pepsi can tampering rumors
(1993)

18. • one woman in Portland said she found two
syringes in a single glass
• in New York a man claimed he accidentally
swallowed two pins that were in a Pepsi bottle
• Likewise many cases followed

20. PEPSI’S response:
• They defended against accusations.
• company produced four videos throughout
the crisis
 a comprehensive report on its soda canning process
 a surveillance tape
John Sedwick of St. Petersburg, a Prozac-taking arrested can tamperer, told the world :
"It
just doesn't pay to tamper with cans. You're going to
get caught eventually. I'm asking everybody not to do
what I did."

21. The result:
• The rumors fizzled out following multiple
arrests by the FDA for filing false reports.
• Sales fell 2% during crisis but recovered within
a month

22. • Texaco's racial discrimination lawsuit (1994)
The crisis:
 Six of Texaco's African-American employees sued the company for racial
discrimination.
 Damning conversations between Texaco executives that were secretly recorded
seemed to confirm the issue.
How Texaco responded:
 CEO Peter Biljur started off with a public apology and admitted embarrassment.
 The executives involved were suspended (with pay but without benefits), pending
the result of the investigations.
 Texaco execs went on tour, visiting all branches and sites of the company in person
to apologize to the employees,
 company hired African-American owned advertising agency Uniworld Group to run
an ad campaign to help douse the flames.
The result:
 Texaco settled the suit, agreeing to pay $176 million.
 Additional discrimination checks for executives and managers put in place by Biljur
have prevented the problem from sprouting up again.

23. JET BLUE: The Valentine Crisis

24. The Crisis:
• JetBlue's operations collapsed after an ice
storm hit the East Coast of the U.S
• leading to 1,000 cancelled flights in just five
days

25. Response:
• CEO David Neeleman never blamed the
weather
• He came out in a late night interview to
apologize 131,000 customers
• introduced a customer's bill of rights, and
presented a detailed list including
 Monetary compensation
 voucher for a free round trip flight

26. The result:
• JetBlue managed to quash much of the uproar
by being as public and straightforward as
possible
• Though there was much reputational damage
done, JetBlue's comeback allowed it to regain
some of its lustre

27. • Toyota's recall fiasco (2010)
The crisis:
 Toyota recalled a total of 8.8 million vehicles for safety defects, including a problem
where the car's accelerator would jam, which caused multiple deaths.
How Toyota responded:
 Toyota sent out PR teams to try and stop the media backlash.
 The company offered extended warranties and pumped up marketing, leveraging its
long-term track record and reassuring consumers about safety.
 Its ads in the following months were more thoughtful and sincere, showing the
company's dedication to fixing the problem.
 Toyota's executives -- especially in the US -- became more visible, speaking to the
media and becoming active in the investigations.
The result:
 The Toyota brand showcased its resiliency, with its positive reputation built up over
decades of good performance.
 NASA exonerated Toyota of the blame for most of the accidents in 2011 and the
company's brand equity leapt 11% this year, according to WPP.

28. The Coca-Cola Company

29. • the Centre for Science and Environment (CSE)

30. • Coke contained 30 times above the EEC
standards
• No standards for soft drink contamination in
India

37. • Cadbury's worm infested candy bars (2003)
The crisis:
 Two Cadbury chocolate bars were found infested with worms in Mumbai, India.
 The Maharashtra FDA quickly seized the chocolate stock at Cadbury's closest
manufacturing plant in Pune.
How Cadbury responded:
 released a statement claiming that the infestation was not possible at the
manufacturing stage
 Cadbury took its advertising off the air and launched an educational PR project that
targeted retailers.
 It kept the media updated through press releases on the specific measures it was
taking to correct its manufacturing and storage processes.
 The company also imported new machinery and changed the packaging of its Dairy
Milk bars.
The result:
 Within eight weeks of the introduction of its new packaging and advertising
campaign, sales had almost reached pre-crisis levels.
 Cadbury has maintained its position at the top of the Indian chocolate industry ever
since.

38. Conclusion
“You never need it, but
you'll be glad its there
when the need arises”