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How to Survive and Thrive During a Food Recall Media Crisis

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Best practices and resources to prevent, plan, address and recover from a food recall media crisis

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How to Survive and Thrive During a Food Recall Media Crisis

  1. 1. How to Survive and Thrive During a Food Recall Media Crisis 1
  2. 2. 2
  3. 3. Crisis Communication  Prevent  Prepare  Address  Recover = 75% } 25% 3
  4. 4. Prevent it!  Effective product development  Rigorous specifications: build, adhere, change with great care  Independent QA Only you can prevent product recalls 4
  5. 5.  Management Communication  Project Management Communication CEO Finance HR Legal Sales & Marketing Supply Chain QAPurchasing R&D Effective product development systems • “Machineable” product design •Innovation and new processes • Cost-savings initiatives that affect product design •Supplier qualification 5
  6. 6. 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 6
  7. 7. Independent QA  Direct, clear access to CEO  Dotted line reporting  Avoid straight-line (only) to Manufacturing 7
  8. 8. Be Prepared "He who fails to plan is planning to fail.” - Winston Churchill 8
  9. 9. 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 9
  10. 10. 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 10
  11. 11. 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)’ 11
  12. 12. 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 whole Protect and maintain reputation Cohesive Communications Plan 12
  13. 13. Fix the Product Issue  Knowledge = Product Liability and Responsibility  There’s nothing to “spin” 13
  14. 14. 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 14
  15. 15. http://www.rapidrecallexchange.org/ Centralize Recall Communication 15
  16. 16. Regulatory Agencies www.fda.gov Safety Reporting Portal www.usda.gov FSIS Recalls Portal
  17. 17. 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 whole Protect and maintain reputation Cohesive Communications Plan 17
  18. 18. 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 18
  19. 19. 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 19
  20. 20. Marketing/PR Crafts Key Messages 20
  21. 21. Website Landing Page and…. 21
  22. 22. ….Dedicated Recall Page 22
  23. 23. 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 23
  24. 24. You Can’t Control the Message 1 – Way Company controlled Mass market Persuade to buy 2+ – Way Dialogue Consumer controlled Niche/micro-target market Engage to earn relevance 24
  25. 25. 25
  26. 26. “No Comment” is not an option
  27. 27. 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 27
  28. 28. 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’) 28
  29. 29. Public Relations  Be Quick, Contrite and Responsible 29
  30. 30. Marketing/PR Crafts Key Messages • ONE Media Contact • All Media Requests go to Media Contact • Media Contact decides which/how to respond 30
  31. 31. …Select the Messenger  Media Contact identifies appropriate Spokesperson  Title and expertise (CEO, Quality Assurance – NOT Sales)  Articulate, credible, and appropriate for that medium 31
  32. 32. 32
  33. 33. Tell YOUR Story 33
  34. 34. Dry Run • Walk through a hypothetical Product Recall • Post-audit, fix readiness gaps • Document procedures 34
  35. 35. Recovery • Move On: Consumers are very forgiving • Tell and widely publicize your positive story • Rebuild customer and consumer loyalty •Make Whole PLUS 35
  36. 36. 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 Story Promote event Tell YOUR Story Promote event Refund + Repurchase Offer Promote event • “Re”-trial • Repeat 36
  37. 37. Food Recall Crisis = Opportunity 37 • 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
  38. 38. -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 38
  39. 39. Crisis Communication  Prevent  Prepare  Address  Recover = 75% } 25% 39
  40. 40. Your Questions? tkatz@katzmarketingsolutions.com 614.252.7824 www.linkedin.com/in/tammykatz 40

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