How to Survive and Thrive During a Food Recall Media Crisis

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How to Survive and Thrive During a Food Recall Media Crisis

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Crisis Communication

Prevent Prepare Address Recover

= 75%

} 25%

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Prevent it!

Effective product development

Rigorous specifications: build, adhere, change with great care

Independent QAOnly you can prevent product recalls

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Management Communication Project Management Communication

CEO

Finance HR Legal Sales & Marketing

Supply Chain

QA

Purchasing

R&D

Effective product development systems

• “Machineable” product design

• Innovation and new processes

• Cost-savings initiatives that affect product design

• Supplier qualification

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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

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Independent QA Direct, clear access to CEO

Dotted line reporting Avoid straight-line (only) to Manufacturing

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Be Prepared

"He who fails to plan is planning to fail.”

- Winston Churchill

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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

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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

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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)’

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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 wholeProtect and maintain

reputation

Cohesive Communications Plan

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Knowledge = Product Liability and Responsibility

There’s nothing to “spin”

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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

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http://www.rapidrecallexchange.org/

Centralize Recall Communication

Regulatory Agencieswww.fda.gov Safety Reporting Portal

www.usda.gov FSIS Recalls Portal

http://www.fda.gov/

http://www.usda,gov/

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• 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 wholeProtect and maintain

reputation

Cohesive Communications Plan

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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

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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

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Marketing/PR Crafts Key Messages

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Website Landing Page and….

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….Dedicated Recall Page

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PR





capturing •

Analysis/reporting of inquiries

• Alerts•

Announcement ads







Crisis Communications

You Can’t Control the Message1 – WayCompany controlledMass marketPersuade to buy

2+ – Way DialogueConsumer controlledNiche/micro-target marketEngage to earn relevance

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“No Comment” is not an option

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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

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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’)

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Public Relations

Be Quick, Contrite and Responsible

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Marketing/PR Crafts Key Messages

• ONE Media Contact• All Media Requests go to Media Contact

• Media Contact decides which/how to respond

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…Select the Messenger

Media Contact identifies appropriate Spokesperson Title and expertise (CEO, Quality Assurance –

NOT Sales) Articulate, credible, and appropriate for that

medium

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Tell YOUR Story

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Dry Run • Walk through a hypothetical Product Recall• Post-audit, fix readiness gaps• Document procedures

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Recovery

• Move On: Consumers are very forgiving• Tell and widely publicize your positive story• Rebuild customer and consumer loyalty

•Make Whole PLUS

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PR





capturing • Analysis/

reporting of inquiries

• Alerts•

Announcement ads







RECOVERY Communications

Make Customers Whole PLUS

Tell YOUR StoryPromote event

Tell YOUR StoryPromote event

Refund + Repurchase Offer

Promote event• “Re”-trial • Repeat

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Food Recall Crisis = Opportunity

• 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

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-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

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Crisis Communication

Prevent Prepare Address Recover

= 75%

} 25%

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Your Questions?

[email protected]/in/tammykatz

Business

How to Survive and Thrive During a Food Recall Media Crisis