When a crisis occurs in an organization, this can interrupt the way an organization conducts business. A crisis can occur at any unforeseen time and can take an organization off guard. Effective communication is critical when managing a crisis within an organization. “There’s a syringe in my Pepsi can! ” is the case study that will be used toevaluate PepsiCo’s effectiveness of communication among their publics. This paper will highlight the various public relations communication tools and techniques PepsiCo used to inform, influence, and motivate the publics.
Finally, the paper will conclude with an evaluation tools used by PepsiCo and explore other options of tools that could have benefitted PepsiCo. Case OverviewDuring the summer of 1993, PepsiCo found itself in extensive news coverage. Multiple claims of foreign objects being found in unopened cans of Diet Pepsi were surfacing. On June 9, 1993, a couple from Tacoma, Washington claimed they found a used syringe in a half-empty can of Diet Pepsi. The couple turned the can over to their lawyer who in turn contacted the health department.
The following day a report of the incident was broadcasted on a local television station. Two days after the initial incident, a second needle claim was made in Washington. Local media picked up the story and added that there have been no reports of injury in either case. On June 12 the FDA issued a five-state consumer alert. This alert asked all consumers to pour soft drinks into a cup before consuming. The FDA did not recommend recalling the Diet Pepsi soft drink.
The next day, there was another claim of a syringe found in a can of Diet Pepsi but this time the claim came from a consumer in New Orleans. By June 16 there have been claims filed in 24 states. In one week’s time, more than 50 incidents had been reported, but none of the reports involved any illness or injury (Center et al, 2003, pg. 325). Effectiveness of CommunicationThe definition of crisis, by the Institute for Crisis Management (ICM), is “a significant business disruption that stimulates extensive news media coverage” (Center et al, 2003, pg.321).
Political, legal, financial, and governmental are all impacts of public scrutiny during a crisis (Center et al, 2003, pg. 321). Pepsi communicated to their publics effectively through the PR campaign. Using the One Clear Voice approach, Vice President of Public Affairs Becky Madeira was able to address the news media, customers, consumers, employees, and local Pepsi-Cola bottlers. The team of six media relations specialists was able to inform and update the public of proper facts (Center et al, 2003, pg. 328).
Publics InvolvedPepsi’s PR campaign involved four primary publics, putting the public safety first, establishing and fixing the crisis, communicating with the internal and external public on a regular basis, and taking responsibility for fixing the crisis. The company’s strategy was to “reassure the public that this was not a manufacturing crisis, what was happening was not occurring inside our plant” (Center et al, 2003, pg. 329). The PR team used specific PR communication tools to accomplish these principles. The crisis coordinator for the company identified four primary publics to address.
The four publics were the news media, customers, consumers, and the employees and local Pepsi-Cola bottlers. The news media, customer, and consumers , all external publics, need to be assured that the Pepsi products are safe and the company will do what it needs to in order to prove this and gain back the trust of the public. The employees and bottlers, the internal publics, also need to be assured but for different reasons. To address the publics, Pepsi used many internal resources such as public affairs, customer relations, scientific and regulatory affairs, sales and marketing, manufacturing and legal.
The Scientific and Regulatory Affairs department assigned technical and quality assurance specialists to work with the FDA to track each complaint. Sales and Marketing employees made sure the relationships with customers who sold Pepsi products was maintained. Manufacturing experts assisted the FDA in developing a simple, easy to understand explanation of the filling line process for the public and news media. The legal department was involved from the very beginning to the very end of the crisis.
Communication ToolsThe PR coordinator Madeira, used specific techniques to inform, influence, and motivates the public. Such techniques including video news releases (VNR), press releases, charts, audio tapes, diagrams of the production process and photos for external and internal distribution. The public affairs department was ready to respond to media inquiries and provide updates on facts and developments. A 24-hour toll-free hot line was manned by customer relations to take calls from consumers with questions and comments. The VNR, proved to be the most effective approach to communicating with the public.
A video news release, also VNR, is a short news package presenting the news item from the organization’s viewpoint; usually about 90 seconds long (Lattimore et al, 2004, pg. 193). “Pepsi-Cola used VNRs to show the nation that its cans could not be tampered with. A second VNR was produced showing a store surveillance camera catching a customer tampering with a can to perpetuate the hoax” (Lattimore et al, 2004, pg. 193). Additional approaches to consider, would be to anticipate issues and guide the company through scenarios. Pre-conditions could be determined and through planning, Pepsi’s team could determine and target these issues.
New TechnologiesIf the same incident happened today, Pepsi would not only have to deal with publics in the United States, but publics around the world. However, the same steps the PepsiCo took in 1993 would be the same steps the company would need to take today. However, due to advances in technology, an additional step could be taken. Considering technology and the Internet, distributing the video news release through YouTube and other various Internet sites, would be an advantage for PepsiCo. PepsiCo should make they use broadcast, print, and new technology communication tools to their advantage.
ConclusionPepsiCo needed something to prove to the publics that what the company was being accused of was not occurring inside the plants. The company produced a video news release showing the procedures of the can filling line and how the alleged objects getting into the cans is nearly impossible. The video news release broadcasted to into 100 million homes (Center et al, 2003, pg. 329). Shortly after the filling line video, another video news release showed a woman trying to stick a syringe into a Diet Pepsi can while no one was looking. Once this video news release was aired, the accusations and claims began to disappear.
On June 21, the FDA finally announced that “the hoax is over” (Center et al, 2003, pg. 329). Effective communication is the key and Pepsi showed that. The ensuing activities of PepsiCo and the U. S. Food and Drug Administration won the company the coveted “Best of Silver Anvils” in the 1994 Public Relations Society of America competition (Center et al, 2003, pg. 325). Pepsi’s public relations teams established a successful strategy using effective communication between the organization and public. Madeira, managed to build an effective and comprehensive blueprint to avoid a potentially disastrous situation.
This concept should be adopted by other organization to guide a company through the aftermath of a disaster.
ReferencesCenter, A. H. & Jackson, P. (2003). Public Relations Practices: Managerial Case Studies and Problems. Prentice-Hall. Retrieved Sept. 13, 2007, from https://mycampus. phoenix. edu/secure/resource/resource. aspLattimore, D. , Baskin, O. , Heiman, S. , Toth, E. , & Van Leuven, L. (2004). Public Relations. New York, NY: McGraw Hill. Retrieved Sept. 13, 2007, from https://mycampus. phoenix. edu/secure/resource/resource. asp.