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Graco Recall Media Relations Program KaJa Public Relations Caity Law Kaja Olcott Laura Bonnema Suryabala Shenbagamurthy Managing Media Relations 4/21/2014

Media Relations Program on Graco Recall Crisis

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Page 1: Media Relations Program on Graco Recall Crisis

Graco Recall Media Relations Program KaJa Public Relations Caity Law Kaja Olcott Laura Bonnema Suryabala Shenbagamurthy Managing Media Relations 4/21/2014

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Table of Contents

Executive Summary ........................................................................................................................ 3

Statement of Purpose ..................................................................................................................... 3

Background and Overview .............................................................................................................. 4

Environmental Scan ........................................................................................................................ 5

Target Audiences ............................................................................................................................ 6

External Audiences ..................................................................................................................... 6

Internal Audiences ....................................................................................................................... 7

Audience Research Insights ........................................................................................................... 7

Objectives ....................................................................................................................................... 8

Key Messages ................................................................................................................................ 8

Strategies ....................................................................................................................................... 8

Tactics ............................................................................................................................................ 9

Educate ....................................................................................................................................... 9

Engage ........................................................................................................................................ 9

Establish.................................................................................................................................... 10

Timeline ........................................................................................................................................ 11

Budget .......................................................................................................................................... 11

Measurement ................................................................................................................................ 12

For Editorials ............................................................................................................................. 12

For Digital .................................................................................................................................. 12

Overall ....................................................................................................................................... 14

Conclusion .................................................................................................................................... 14

Appendix ....................................................................................................................................... 15

Internal Press and Media Policy ............................................................................................. 16

Pitch Letter to Consumer Reports .......................................................................................... 18

Pitch Letter to Working Mother Magazine .............................................................................. 19

Media List .............................................................................................................................. 20

Q & A ..................................................................................................................................... 23

Stand-by Statement ............................................................................................................... 24

Broadcast News Release ....................................................................................................... 25

News Release ........................................................................................................................ 26

Digital Analysis ...................................................................................................................... 28

Fact Sheet ............................................................................................................................. 29

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Executive Summary

Graco Baby Products is undergoing a critical reputational challenge. A series of car seat

recalls has created an unfortunate situation for the Graco brand and put the company at odds with

the National Highway Traffic Safety Administration. This media relations program aims to revitalize

Graco’s reputation and assure key audiences that Graco cares about product quality and child

safety.

With multiple news media outlets reporting on the recall, we must maintain consistent

messaging while conveying that we are fulfilling recall requests as quickly as possible. Graco must

stay up-to-date on social and traditional media to monitor audience sentiments about the brand

and the ongoing situation.

We have been observing customer reactions to the recall by analyzing Graco’s target

audiences on social media and through industry evaluation. Results show many consumers were

outraged when Graco first blamed improper care as a reason for the belt buckles latching issues.

Some were also confused why the replacement buckles were taking 6-8 weeks to be delivered.

However, a great amount of people were satisfied with Graco’s quick and personalized responses

on social media.

The primary audience members for this campaign are mothers. They will be reached

through traditional major media outlets, special-interest publications, and social media. Research

shows that moms go online daily and network with each other via social media. While they may get

a lot of information online, they trust their doctors the most when it comes to healthcare

information. Furthermore, mothers are more likely to follow advice gained via word-of-mouth over

solicited media channels. These insights helped to guide our tailored campaign for Graco.

This media relations campaign aims to manage and restore Graco’s reputation as a trusted

provider of safe baby products, highlight safety and quality as Graco’s top priorities, and effectively

communicate the measures Graco has and is taking to address this issue.

Our three-part strategy intends to educate, engage, and establish Graco as a trusted leader

in child safe products. Through proactive media relations, we can rehabilitate Graco’s reputation.

A third party endorsement from Consumer Reports will offer consumers peace of mind when

choosing a Graco product. Establishing a Corporate Social Responsibility program and partnering

with the American Academy of Pediatrics will further demonstrate Graco’s commitment to child

safety.

The budget covers the cost of the CSR program execution and standard media relations

expenses, such as news wire distribution, samples, and media training for our spokesperson. We

will continue to measure and evaluate the success of the program through traditional and social

media metrics to understand how our consumers attitudes. When consumers turn to Graco with

childcare questions, we will know we have revitalized Graco’s reputation and have regained our

position as leader in child safety products.

Statement of Purpose

The recent recalls of child car seats due to malfunctioning buckles have damaged the reputation of Graco Baby Products. Once seen as the safe choice for infants and families in the

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United States, Graco is facing a major reputation problem.

The National Highway Traffic Safety Administration has demanded a recall of additional car seat models after discovering the buckle issue may have resulted in one child’s death in 2011. Furthermore, the NHTSA threatened Graco with litigation if the company refuses to comply.

Graco needs to reestablish themselves as a leader in child safety products. In order to achieve this, Graco must take strategic steps to gain back consumer trust through a media relations program that engages target audiences and highlights Graco’s commitment to safety.

This program aims to rehabilitate the Graco brand and assure consumers that Graco’s top priorities are child safety and quality control.

Background and Overview

On January 1st, 2014, Graco was asked to recall 5.6 million rear facing infant, convertible,

and booster seats by National Highway Traffic Safety Administration. Graco has been aware of this issue since 2009 and has already collected more than 6100 customer reports on difficulty unlatching the child car seat buckle. However, no actions were taken until the NHSTA intervened.

Graco denied there was a problem with the buckle which led to an investigation by the NHTSA. The ongoing investigation is supported by150 direct complaints from customers regarding the buckle defect, according to a February 2014 report.

While Graco and the NHTSA are investigating the severity of the issue, Graco is taking extensive measures towards the product quality process and is offering free replacements for all affected car seats. However, the new buckle looks very similar to the old model, which has been confusing to consumers. By analyzing comments on social media, it seems most customers prefer a reimbursement than a new product as they do not trust Graco products anymore. Various media and organizations have commented the following:

● Popular blogs, like PopSugar Moms and Kicking Tires, have kept consumers informed about the recall. Comments on the blog focus on Graco using flimsy materials and not particularly caring about product safety.

● Trade organizations, like the American Automobile Association, have informed their members of the Graco recall.

● The New York Times has reported on the recall twice. The first article, dated February 11th, focused on the recall of the first 3.8 million car seats. The second article appeared on the Wheels blog and included information on the additional recall request from the NHTSA.

Graco is handling the issue through active communication on social media, and proper

assistance for the product recall on their company website. Customer queries and complaints on Twitter have received speedy and personalized responses from representatives. Information about the recall is easily accessible on a separate section of their website. In order to apply for a new car seat, consumers are required to fill out a form detailing the type of car seat that has been affected by the recall, their name, and contact information. This streamlined approach has helped the customer service team fulfill recall orders. It is important that these replacement buckles are delivered in a timely fashion in order to retain current customers. Despite their efforts, customers are still unsatisfied with the 6-8 week replacement delivery period.

In an auto accident that led to two-year old Leiana Ramirez’s death in 2011, Graco is still maintaining that the belt buckles were not at fault. The case resulted in a confidential settlement

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agreement for around four million dollars.

Graco spokeswoman, Ashley Mowrey told the New York Times, ―Graco can assure you there have been no reported injuries as a result of the harness buckles used on Graco car seats. We want to stress that our car seats are safe and effective in restraining children. And, the safest way to transport a child is always in a car seat...In settling this matter; Graco does not admit any fault, liability, or statutory or regulatory violation.‖While Graco is denying the belt buckle was at fault in the Ramirez death incident, this media relations program includes tactics which will help prepare Graco representatives to handle questions about the case.

Environmental Scan

This media relations program is based off of research on audience insights, current social

media analysis, and an evaluation of the industry.

The news about the Graco recall received various responses from the public and

customers. Influential blogs covering the recall received comments from customers expressing

their attitudes towards Graco products and services.

Marcia VanHon, a 42 year old mother and a teacher at Seven Peaks Private School,

commented on a Graco recall blog post saying, ―This is why I don't buy anything that Graco

makes. My kids are in Britax or Peg Perego car seats only. Graco uses flimsy materials as well and

don't do extensive safety tests like other manufacturers.‖

Graco attributed the poor functioning of the buckles to improper maintenance, essentially

claiming the consumers were responsible for any jamming or unlatching issues. The company said

the reason for the buckle defect is a lack of maintenance, such as allowing food, drink, and bodily

fluids to accumulate in the buckle housing, make it difficult for the button to release the metal

tongues.

Janet Jagger, amomspopsugar.com blog reader, commented on Graco's explanation of the

jamming with her personal experience: the Jagger family had issues from day one and her

daughter had never eaten anything in her car seat. Jagger claims the buckle is defective

regardless of children's food getting stuck or improper cleaning.

Graco customer Hamearis Lucina, a mother from Potsdam, New York, stated, ―Every time

my caregiver buckles my daughter in the car she gets stuck, takes 10-15 minutes to get her

unbuckled. I ordered my new replacement buckle 2 weeks ago and it still hasn't arrived in the mail.

I called Graco customer service and the representative let me know it takes 6-8 weeks to arrive.

The company is dangerously mishandling this recall in a slow unresponsive manner.‖

Thousands of Tweets poured into Graco's official Twitter page after the recall

announcement. Mothers were frustrated by the amount of time required to receive a replacement

buckle, resulting in purchasing car seats from Graco’s competitors. The company was on the edge

of losing its customer base. Graco had to react quickly and demonstrate the company takes great

interest in its customers in order to retain their business; and so, they responded to each Tweet

with a personalized message and contact details.

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During this time of crisis, the company's proactive approach on Twitter helped Graco

interpret its customers ’reactions and assist the customer support team to properly execute the

buckle replacement process. This decreased negative and controversial public discussions by

customers in social media platforms.

Currently, all the buckles manufactured by AMSAFE and used by infant car seat

manufacturers such as Graco and Evenflo are being recalled. After the recognition of the industrial

issue indicating the defect is not specific to Graco products, customers are more neutral towards

the Graco recall. According to an analysis of an overall brand audience sentiment on social media,

it seems the public is relatively neutral (see Social Media Analysis in the Appendix). This media

relations campaign has taken this into consideration and is mindful in its execution of

communications tactics as not to draw unnecessary attention to the recall. Nevertheless, the

company has suffered a reasonable amount of reputational damage and requires strategic

reputation management and reestablishment of consumer trust.

Target Audiences

External Audiences

Parents and Graco customers (existing and future customers)

Press and media

Target outlets (detailed in the appendix):

Trade magazines

o Child care magazines

o Parenting magazines

Local outlets

o Regional newspaper of company/manufacturing locations

o Regional broadcast news networks

Morning shows

Family shows

o Regional radio networks

Morning shows

Family network

National media

o Major print, broadcast and radio outlets

Morning shows

Parenting columns

Business sections

Consumer interest

Government regulators

National Highway Traffic Safety Administration

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Internal Audiences

Staff and employees

o Staff must be kept up-to-date with information on the situation. We have drafted a standby statement and media relations policy that all employees must abide by. These documents can be found in the appendix.

Investors and shareholders

o As all publicly traded companies, Graco is responsible to its shareholders. This relationships is further complicated as Graco is owned by Rubbermaid and therefore impacts the reputation of its parent company.

o Target outlets:

Company newsletter

Letter to the Shareholders

Company-wide email

Company website

Audience Research Insights

While this campaign has numerous target audiences, our primary audience members are

CPOs (Chief Purchasing Officers), also known as Moms. The following research on mothers in

America is gathered from she-conomy.com, the Department of Health and Human Services and

from Centers for Disease Control and Prevention. These insights helped shape the media relations

program.

―Chief Purchasing Officer‖ (CPO) refers to women who lead purchasing decisions for their

household

Female consumers, ages 25-45

Women account for 85% of all consumer purchases

The majority of moms go online daily

o More than half go online more than 20 times per week

o Moms network with each other via social media

Popular blogs for moms:

www.blogher.com

www.busymom.net

www.5minutesformom.com

www.themomblogs.com

Moms are heavy mobile users indicating successful results for mobile campaigns

―Non-working‖ moms turn to magazines for advice

o Magazines rank higher than pediatricians’ advice for medical updates

However, nearly two-thirds of moms consider their doctor their primary source of health

information

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o Medical professionals can give the necessary tools to engage moms in decision

making process

USA Today is the most commonly read paper among moms across numerous generations,

including Gen X, Gen Y and Baby Boomers

One of the most effective ways to reach moms is through their peers

o More likely to follow unsolicited advice from friends or family vs. media channels

Moms put a great deal of time and effort into choosing what is best for their families

Interested in brand attributes and CSR contributions

Objectives

The collection of research, background, audience insights, and situation analysis has lead to the development of a media relations program which aims to achieve the following objectives:

● To acknowledge, address and communicate the efforts taken by Graco to rectify the issue.

● To highlight Graco's top priorities are quality control, and ultimately child safety and care.

● To manage and restore Graco's reputation as a trusted provider of safe baby products, which will in turn drive and increase sales.

Key Messages

To ensure consistency throughout all communications and to execute an effective media

relations program, the following key messages will be implemented throughout all strategies and

tactics:

1. Graco’s top priorities are quality control and ultimately child safety.

2. Graco is making every effort to rectify the product recall issue and is providing top customer service throughout this process.

3. Graco is a trusted brand that has provided over 60 years of service to families and children.

Strategies

By using a three-part strategy that encompasses a variety of tactics, we will reestablish

Graco as a responsible corporate citizen that cares about safety and quality above all else. A proactive, two-way symmetrical approach to this crisis will enable Graco to return as the leader in baby products. The strategies used in this program are as follows: Educate: Educate ourselves by continually assessing the company’s standing through monitoring the media and consumer sentiments. Educate our employees on the current situation and proper employee conduct during a time of crisis. Engage: Foster a dialogue with key audiences to communicate product improvements through an integrated media and social media relations campaign. Establish: Establish trust with key audiences and rehabilitate Graco’s reputation as a positive

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corporate citizen.

With any crisis come reactive relations with the media, involving accurately answering recall inquiries. We will leverage preexisting relationships with short-leader reporters and journalists to advise the public on the ongoing recall. Graco must continually monitor audience sentiment to evaluate necessary changes and adjustments in the program.

While this campaign recognizes reactivity in time of a crisis, we advocate for a proactive media relations approach. The reputation of Graco is at stake and we must preserve it in order to be successful. Merely waiting for reporters to ask questions will not suffice. This program aims to engage key audiences and foster a dialogue with our publics. Furthermore, a proactive news bureau will move the focus away from the recall and on to other great things Graco is working on. This media relations program will culminate with a corporate social responsibility program aimed at families and baby care.

In order to assure customers of our high quality and safety standards, this program recommends providing an inside view of Graco’s manufacturing facilities. Increasing transparency will reassure our audiences that all necessary steps have been undertaken to rectify the issue. By using a two-way symmetric model for media relations, Graco will be repositioned as a trustworthy and engaging corporate citizen.

Tactics

Educate

● Distribute an Internal Press & Media Policy to all employees to educate them on how to properly handle media inquiries and to maintain consistent messaging.

● Allocate a media and social media monitoring team to continually assess consumer and audience sentiment regarding the Graco brand. This is an ongoing effort throughout the campaign to measure our success and allow for necessary evaluation and adjustments.

● Produce a video news release featuring behind-the-scenes footage of Graco’s manufacturing facilities and safety control procedures.

● Create fact sheet for the media detailing the current situation and how Graco is handling it.

Engage

● Invite Consumer Reports to validate the quality of the new Graco baby car seats. Graco will

pitch the idea to Consumer Reports editor; Jennifer Stockburger who covers family and parenting. As per their policy, Consumer Reports results will not be used for promotional activities. However, this third party endorsement will be integral in rebuilding Graco’s reputation.

○ Customers feel deceived by the similar appearance of the new replaced buckle and the old one. They perceive the new buckles that are replacing the defective ones are no different than the other due to the identical appearance. While we would like to suggest to the production team to create a buckle that looks different, due to the time sensitive nature of this issue, we need to inform consumers through media that the new design, though similar to the defective buckle, is indeed different and have rectified the latch issue.

● Enlist a proactive news bureau to reach out to short-lead, long-lead and broadcast media- detailed in the appendix.

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● Prepare Patrick J. McHale, the CEO, and Director of Graco with media training to become the company spokesperson in the event of a media opportunity. He will be prepared to address the issue, talk about the steps taken to rectify the situation and future company prospects. We will also equip McHale with a Q&A document that provides answers regarding the death of Leiana Ramirez as well as other difficult questions. A drafted stand-by statement regarding the recall is in the appendix along with the Q&A. Utilizing the CEO as our company spokesperson ensures our program is authentic and the efforts being made are genuine.

● Offer free replacement car seats for affected models at Babies-R-Us locations. Many parents are complaining that 6-8 weeks is too long to wait for a new car seat. Offering a non-recalled Graco model would keep children in Graco seats as we address the buckle problem.

● Promote Graco’s Heart to Heart blog and its many contests and giveaways to media and consumers to refocus the attention to Graco’s positive product experience.

Establish

● Develop a corporate social responsibility plan entitled ―All Babies Count‖ to educate new parents prior to the birth of their child. This will establish Graco as a parenting authority, further solidifying their message that children are their number one priority. This will be announced through an active news bureau via news release, broadcast news release, and traditional pitching. o We will distribute the news release using PR Newswire over the US 1 distribution

channel. This is the largest distribution channel that will reach newspapers and websites across the country. The release will be distributed to more than 10,000 U.S. news outlets, 30 industries and more than 80 U.S. regions and niche markets. We will distribute the broadcast news release via the US1 newswire, targeting television and radio stations.

o Create a YouTube channel for the ABC program with monthly videos featuring parenting and child care tips and tricks.

ABC: All Babies Count

Graco will partner with the American Academy of Pediatrics to provide monthly classes at hospitals in low-income communities. The classes will be instructed by medical professionals who are members of AAP. The classes will cover a range of topics from how to install your car seat properly to how to determine if your baby has a fever. Classes will be offered for free and promotional coupons for various Graco products will be given to attendees. This tactic will also promote positive word-of-mouth communication in communities across America – the most valued form of messaging for mothers as indicated in the aforementioned Audience Research Insights section.

We are partnering with AAP due to their dedication to ensuring the well-being of infants and children which is consistent with Graco messaging. This endorsement will further advance our objective as being seen as a trust-worthy brand. Additionally, Graco has been in business for over sixty years. This has provided our company with a wealth of knowledge that we want to pass on to new parents across the countries. Many parents cannot afford to attend expensive pre-natal classes. With All Babies Count, every parent can properly prepare for the arrival of their bundle of joy.

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Timeline

The duration of this media relations program will last for twelve months -- effective

immediately Please note that this timeline should act as a guideline and will remain flexible as the

program is constantly tailored to Graco’s and its audiences’ changing needs.

Months 1 2 3 4 5 6 7 8 9 10 11 12

Research & Development of ABC Program

Reach out to Consumer Reports & Conduct Testing

Outreach: Specialty Publications & Bloggers

Announce Partnership & Launch of ABC Program

Outreach: National Broadcast & Print Media

Results & Measurement

Social Media Monitoring

Budget

Tactic Price

PR Newswire News Release Distribution $10,000

PR Newswire Broadcast News Release Distribution $2,000

Samples for Consumer Reports and other media $10,000

Media training for Patrick J. McHale $2,500

Online & media monitoring- 35 hours per month $8,400 ($700 per month)

Out-of-pocket expenses $12,000 ($1,000 per month)

Press materials (pitch letters, news releases, etc.) $5,000

Production and distribution of video news release $15,000

AAP partnership & All Babies Count pilot program execution total $70,000 – $100,000

Production and maintenance of ABC’s YouTube channel $3,000

TOTAL $137,900-$167,900

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Measurement

Graco news appears in the form of Tweets, posts, online and print articles as well as broadcast news.

For Editorials

In our measurement approach, we recommend for traditional news media to be analyzed differently than social media. We propose executing a manual content analysis on articles as they publish using a coding system, tailored to Graco’s specialties and interests. The code would organize the articles in a manner enabling Graco to easily see the difference in tone and sentiment. For example, if the company was interested in learning which editors publish negative articles regarding the brand, the company might use the following codes to display various levels of negativity with 3 being the worst:

0 = No negative words mentioned 2 = Negative words mentioned 3 = Child welfare mentioned

*Here, negative words are defined as any negative descriptions of faulty parts, the company, or its products.

Every article will receive scores comprised of categories such as the one listed above. Using the same scoring and coding criteria, a baseline for the company is formed, identifying which publications are more likely to sway one way or another. This can be particularly useful when pitching story angles to specific editors. Content analysis can sometimes display what interests certain writers or publications hold compared to their peers.

This system will allow us to track and analyze articles that mention the recall, our ongoing efforts, and the ABC program. It will account for articles that speak negatively about the recall but positively about the ABC program. This enables Graco to see a shift in the conversation from negative recall-focused articles to a more positive discussion focused solely on the CSR program. An indication of success will be when the ABC program is mentioned independently without mention of the recall.

We will also track the reach of a certain article. For example, if a New York Times article shows up on 5 blogs and is referenced in other articles, we will aim to develop a stronger relationship with that journalist. This system will help us identify the biggest influencers in our industry.

A thorough content analysis will help organize some of the noise on the airwaves. Performing this analysis will frame conversations about Graco by showing where particular commentary exists, the outlet’s credibility, and the extent of its reach. From there, we can look to digital analysis to better understand our audiences and their influence online. This allows us to gauge the impact of a single issue or attack article.

For Digital

Digital mentions are somewhat easier to track and often have a higher reach potential.

Thus, the best way to measure the success and weaknesses of Graco’s ABC campaign is by performing content analysis manually via digital-tracking tools like Topsy, free software that recognizes and analyzes mentions on social media platforms.

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Analyzing trends on certain dates helps provide the bigger picture. More specifically, it can give Graco a better understanding of which events, if any, affect traffic levels, the number of brand mentions, and sentiment. The chart below exemplifies data pulled from a site like Topsy. It shows spikes in mentions on days that directly relate to releases or articles that trended at the time. The chart also shows Tweets with the farthest reach on that day. We will highlight the most notable ones, as done below, to guide communication efforts with Graco’s audiences.

We analyzed the chart below to gauge Graco’s current reputation, why people might mention Graco, and how audiences might construe the Graco seat buckle issue. This allows us to tailor communication materials and programs that pinpoint specific issues relevant to consumers and media professionals. While the recall continued to trend at high numbers in mid-March, consumers continued to carry out discussions about where to purchase or buy Graco car seats by the end of March. Furthermore, research indicates the car seat issue began to lose hype after a competing brand, Evenflo, announced similar recall.

We would continue to perform such analyses on a bi-weekly basis to develop our Graco communication program, as our audience’s needs shift. Nevertheless, we would closely collect data and examine our content analysis for one year after Graco’s ABC program launches in order to identify the proper next-steps. Depending on the results, next-steps might include kicking off a new campaign or continuing the next chapter of Graco’s ABC program.

Another helpful method for digital research includes Google Analytics. While Google Analytics offers many features, our main use of this tool would be to understand what people associate with Graco. Understanding associations is essential in providing audiences with information that they seek out. Moreover, this tool can act as a persuasive data point when pitching certain story angles to writers based on search and topic association popularity.

Using analytics in the future, we can also use tools to determine what words people often associate with Graco in a search engine like Google. This can help us to understand the impact of our campaign in assessing Graco’s leadership as an overall guiding voice in baby-care. We can also use it to modify content that our audiences look for.

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Overall

To assess the overall success of the campaign, the above measurement tactics should be considered in combination with other metrics that account for the campaign’s impact on the company as a whole.

It would benefit Graco to use other available data to further evaluate the success of a campaign. For example, by looking at ROI, we may see direct correlations with sales or store-traffic when comparing each day of the campaign to the sales and store-traffic on the day approximately 1 year prior. This data provides a more direct understanding of how a campaign has impacted the growth of business. Since communication campaigns typically touch on issues that may be relevant for a long period of time, this type of data may be best assessed for about five years from the start of the communication program.

Depending on the nature of the campaign, it could have annual follow-on segments or follow-up stories that require additional media outreach. This may also impact business for many years as perspectives strengthen. Thus, data should be taken into consideration even after the initial start of the program to evaluate patterns and correlations found between consumer-to-consumer communications, business-to-consumer communications and the monetary success of the business.

Conclusion

With a thorough understanding of target audiences, industry climate, and a situational overview, this media relations program highlights an effective three-part strategy system to execute tactics efficiently and flexibly according to ongoing company needs. Starting from the bottom up, this program emphasizes the importance of media training and a company press policy to ensure messaging is consistent company-wide and throughout the campaign. Educating employees and company representatives will enable Graco to handle media inquiries appropriately and beneficially.

Maintaining transparency and increasing engagement through social media enables customers to feel their concerns are being heard and to see that all the necessary steps are being taken in light of the recall.

Achieving third-party endorsements through Consumer Reports and the American Association of Pediatrics will provide Graco with the credibility it needs to engage consumers and establish trust. Finally, the development of a strong CSR program that is consistent with Graco’s core values and key messages will demonstrate to Graco’s audiences that Graco is a positive corporate citizen.

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Appendix

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Internal Press and Media Policy

Purpose

This policy exists to assure that the information disclosed by Graco is timely, accurate,

comprehensive, and appropriate for the intended constituents and audiences. Furthermore, this

policy is in place to ensure all proprietary matter is properly handled and by authorized parties.

Adherence to this policy is intended to provide an effective and efficient framework for the proper

handling and dissemination of relevant company information. To remain competitive, better serve

our customers, and to provide all employees with the proper tools to do their jobs, it is imperative

for all Graco employees present a united and consistent image to our audiences and consumers.

Scope

This press and media policy applies to all Graco employees and its subsidiaries and divisions. This

policy covers all external news media including print, broadcast, and social media.

General Guidelines for All Communications

1. All inquires received from external sources should be forwarded and referred to our

Communications Officer [insert name].

2. The company spokesperson will be directed by the Communications Committee and the

Communications Officer regarding the proper response or position conveyed to properly

represent company values and plans.

3. With the exception of routine events and basic information that is readily available to the

public, no employee shall release company information without authorization from the

Communications Officer to any external outlet including broadcast, print, or any form of

digital or social media.

4. Understand that you may be contacted by reporters or members of the press looking for

information on topics, including but not limited to:

● Internal information about Graco

● To get your opinion on recent unexpected events that may have happened internally

or externally and how they affect Graco

● To get information or comment about an action or event that could impact our

industry or about our competitors

5. It is important to maintain a proper tone and spirit in communication with external sources

and the media, even when forwarding inquiries. When questioned, the proper to response

would be along the lines of, ―I am not authorized to speak on this matter; however I would

be happy to forward you to our Communications Officer who will be able to further assist

you.‖

6. Any photographs or film taken on or of Graco property should not be disseminated without

proper authorization from our Communications Committee

7. Any members of the media or press cannot enter our property without proper authorization

which is to be predetermined by our Communications Committee

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I have read, understand, and agree to comply with the foregoing policies, regulations, and

conditions pertaining to all relations with the media and social media. As a member of this

organization, I have the responsibility to maintain a positive representation of the company.

Furthermore, I understand the policy can be amended and adjusted according to unforeseen

events at any time.

_____________________________________ _________________

Employee signature Date

_____________________________________

Printed name of employee

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Pitch Letter to Consumer Reports

To: Jennifer Stockburger, director of Consumer Reports Test Center

Subject: New Product Info- Graco Belt Buckle

Hi Jennifer,

Hope all is well. Just read your piece on the 5 Best Car Seats for your baby that posted at the

beginning of April. As I’m sure you’re well aware, Graco has recently recalled several models of car

seats due to a seat buckle issue. Our product safety team has developed a new replacement

buckle and we’d love for it to be put to the Consumer Reports Safety test.

We’re offering a replacement buckle to all customers who have purchased car seats with the

defective buckle. This new buckle looks quite similar to the old, defective buckle which makes

some parents uneasy. However, our product safety team is certain that they have fixed the latch

problem.

We’d love the opportunity to show our customers that the new buckle on our car seats is safe and

reliable. Would you be interested in testing it at the Consumer Reports Test Center? We can send

you as many samples as you need. Please let me know if you would be interested and I will follow

up at the beginning of next week.

Thanks!

Laura

Laura Bonnema

Account Executive

Kaja Public Relations

212-333-5556

[email protected]

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Pitch Letter to Working Mother Magazine

To: Irene Kwon Cheng of Working Mother Magazine

Subject: All Babies Count - Graco and AAP Launch CSR Program for Young Parents in Need

Dear Irene,

Graco Baby Products and the American Association of Pediatrics are forming a partnership to

launch a new baby-care program I think your readers would find interesting and beneficial. The

program called ―All Babies Count‖ will be launching in 10 pilot locations in high-need area hospitals

throughout America where parents can come to learn everything from prenatal care to proper car

seat installation to spotting fever warning signs in babies.

We would like to offer you an exclusive visit to our Bronx ABC Center during our opening week.

We can provide you with a tour of the facilities and an interview with a representative from the

AAP.

The ABC centers will offer free classes for eligible families and a hot-line for young and expecting

parents to call in and ask questions. The two companies have come together in their joint mission

to provide child safety and care for children across America. The combination of Graco’s 60-plus

years of experience in child safety, and the AAP’s network of medical professionals will provide the

ideal resource for struggling parents to help eliminate medical and developmental issues that arise

in children raised in low-income areas.

If you are interested, please let me know at 212-333-555 or [email protected] and we would be

happy to arrange your visit. I will also follow up with you in a week. For more information on All

Babies Count, please take a look at the website: www.abcprogram.com, or feel free to give us a

call.

Looking forward to speaking with you,

Kaja Olcott

Account Executive

Kaja Public Relations

212-333-5555

[email protected]

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Media List

Newspapers

Outlet Contact Impressions (via

CisionPoint)

USA Today Jayne O’Donnell O’Donnell has been

covering the recall. As

noted in audience

insights, moms read

USA Today more than

any other daily paper.

Print: 1,674,306

Online: 21,911,400

New York Times Christopher Jensen

christopher.jensen@nyt

imes.com

The automotive

reporter, Jensen has

been following the

recall. His articles

appear in print as well

as on the NY Times

Wheels blog

Print:1,865,318

Online: 15,535,617

Wall Street Journal Mike Ramsey

[email protected]

Ramsey has been

reporting on the recall

since the beginning. It

would be important

make sure he knows

we are being forthright

and honest with our

information.

Print: 2,378,827

Online: 4,793,172

Broadcast

TODAY Cheme Pelzer

[email protected]

Pelzer is the Consumer

General Interest product

Good Morning America Jenn Leong

[email protected]

Leong is the Consumer

General Interest segment

producer

Page 21: Media Relations Program on Graco Recall Crisis

21 | P a g e KaJa Public Relations

Magazines

Consumer

Reports

Jennifer Stockburger

jstockburger@consumerrep

orts.com

Stockburger is the

director the test center

and in charge of car

seat testing.

Consumer Reports

would be a trusted

third party

endorsement.

Print:4,000,000

Online: 16,000,000

PRWeek Laura Nichols

[email protected]

As the Policy Affairs

reporter, Nichols

would be up to date

on the NHSTA recall

demands. After

launching the CSR

campaign, we would

contact Nichols about

the campaign and our

reasons for doing so.

Print:9,639

Online: 100,394

Reader’s Digest Perri Blumberg

[email protected]

Similar to Consumer

Reports, Reader’s

Digest is a trusted

magazine with a large

circulation. Blumberg

is the lifestyle editor.

Print:5,577,717

Online: 5,100,000

Parents Gail O’Connor

[email protected]

m

O’Connor is the

parenting editor for

Parents. We’d would

pitch her the new

improved belt buckle

for roundup of the

―Best Car Seats for

your baby‖

Print:2,203,283

Online: 827,558

Working Mother Irene Kwon Cheng

irene.chang@workingmoth

er.com

Kwon Cheng is the

editor of the ―Treat

Your Self‖ product

session. She also

covers the latest in

children’s products.

Print:754,541

Online: 1,040,772

Page 22: Media Relations Program on Graco Recall Crisis

22 | P a g e KaJa Public Relations

Good

Housekeeping

Rachel Rothman

[email protected]

Rothman is the test

editor. Similar to

Consumer Reports,

we would seek the

Good Housekeeping

Seal of Approval. For

a fee, this can be

used for promotional

purposes.

Print:4,396,795

Online: 1,098,957

Online

Moms.popsugar.com Leah Rockett

[email protected]

m

Rockett has been

blogging about the

recall. It would be great

to explain to her the

change we made to

the new belt buckle so

she could tell her

readers that even

though it may look

similar, it is improved.

Online: 2,118,756

Blogher.com Denise Tanton

[email protected]

Tanton is the

Community Manager

and parenting editor for

the website. BlogHer is

a popular online

resource for parents.

Online: 384,126

Cars.com/kickingtires Jennifer Geiger

[email protected]

The blog offers up-to-

date information on the

latest auto news and

has been covering the

recall.

Online: 9,940

Busymom.net Elizabeth Thiekle

busymom_64@yahoo.

com

A popular mom blog

that has not yet

covered the recall

Online: 1,845

5minutesformom.com Susan Popular Mom Blog

focusing on product

reviews

Online: Not available

Page 23: Media Relations Program on Graco Recall Crisis

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Q & A

Why did Graco settle in the lawsuit regarding the death of Leiana Ramirez?

Leiana Ramirez’s death was a tragic accident.

If probed: While our thoughts are with the Ramirez family, the results of the case are confidential

and we are not at liberty to discuss it any further.

What is Graco doing to ensure a tragedy like the death of Leiana Ramirez does not occur

again?

Leiana Ramirez’s death was a tragic accident. The car seat industry is constantly innovating to

create the safest environment for babies and toddlers to ride in. Consumer Reports provides

rigorous testing in their own facilities to test the safety of car seats. Some recent innovations

include the ability to detach the seat from the base.

Why does the new buckle look so similar to the old buckle?

We wanted to address this problem as quickly as possible. Designing an entirely new buckle would

have been time-consuming for our design team and we wanted to ensure we are responding to

customer recall requests promptly. Instead, they corrected the problem in the current buckle.

Why did Graco originally blame parents for not properly cleaning the buckle and name that

as the reason the buckles were getting stuck?

We’ve been in the car seat business a long time. It’s surprising how often juice and snacks can get

stuck in a car seat buckle. While the buckle was defective, we want to stress how important it is to

maintain your car seats. They must be cleaned regularly to ensure they will work properly.

What do you know about the Evenflo recall?

We do not know how Evenflo is handling the situation internally; however we are certain they are

making the necessary safety improvements to their products.

Why is it taking 6-8 weeks to deliver the replacement buckles?

We realize it is not ideal to have to wait but we are trying to get the improved belt buckles into the

hands of customers as quickly as possible. However, we do not want to risk quality for speed.

The ABC Campaign is great, is it a result of the death of Leiana Ramirez?

We believe it is important to educate parents all issues of child safety. The ABC campaign exists to

provide parents with resources they might not otherwise have access to in their communities.

Page 24: Media Relations Program on Graco Recall Crisis

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Stand-by Statement

Graco is currently undergoing a recall of a number of infant and child car seats due to

malfunctioning buckles. Graco is working closely with the National Highway Traffic Safety

Administration to ensure all products adhere to federal regulations and meet the high quality and

safety standards we employ at Graco. There have been no confirmed incidences of death or injury

as a result of the malfunctioning buckles and the recall is a result of a precautionary measures.

Graco’s top priority is the safety of children using our products. Customers with Graco car seats

can go on www.gracobaby.com to find steps to receive a product replacement.

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Broadcast News Release

FOR IMMEDIATE RELEASE

Graco Baby Products

Contact: Kaja Olcott

Kaja Public Relations

Tel: 212-333-5555

[email protected]

LEARNING YOUR ABC’S

Graco and American Association of Pediatrics Launch Baby Care

Program in High-Need Area Hospitals

March 25, 2015

GOOD MORNING AMERICA

Dear Jenn Leong,

―Today Graco Baby Products announced a new partnership with the American Association of

Pediatrics in the launch of a new program called ―All Babies Count‖ or ABC. The ABC program

will create ten resource centers in low-income area hospitals where parents can come to learn

everything from prenatal care to proper car seat installation to spotting fever warning signs in

babies.‖

―The two companies teamed up in their joint mission to provide safety and care to young children

across America. The centers will offer free classes for eligible families and a hot-line for young and

expecting parents to call in and ask questions. More information about All Babies Count including

locations, class schedules, and child care tips can be found onwww.abcprogram.com.‖

For more information or to answer any questions about All Babies Count, please feel free to get in

touch at 212-333-5555 or [email protected]. Thank you for helping us reach out to parents and

children in need.

Kind regards,

Kaja Olcott

Page 26: Media Relations Program on Graco Recall Crisis

26 | P a g e KaJa Public Relations

News Release

FOR IMMEDIATE RELEASE

Graco Baby Products

Contact: Kaja Olcott

Kaja Public Relations

Tel: 212-333-5555

[email protected]

LEARNING YOUR ABC’S

Graco and American Association of Pediatrics Launch Baby Care

Program in High-Need Area Hospitals

March 10, 2015 – EXTON, PA – Today Graco Baby Products announced a new partnership with

the American Association of Pediatrics in the pending launch of a new program called ―All Babies

Count‖ or ABC. The ABC program will create 10 pilot resource centers in low-income area

hospitals where parents can come to learn everything from prenatal care to proper car seat

installation to spotting fever warning signs in babies.

―When we looked into ways to give back to communities, partnering with the AAP was a natural fit

due to our shared goal in ensuring safety and care for young children across America,‖ stated

Graco CEO Patrick McHale, ―the AAP helped us isolate neighborhoods throughout the country that

would most benefit from the All Babies Count program.‖ The selected hospitals showed the highest

statistics of single parents with low or no support system.

The resource centers will be manned by medical professionals and child care experts who are

affiliated with or recruited by the AAP. The centers will offer free bi-weekly classes for eligible

families and a hot-line for young and expecting parents to call in and ask questions. The 10 pilot

locations will be found in high-need neighborhoods throughout the country, including Detroit, the

Bronx, New Orleans, and Seattle.

Franklin Trimm, Chairman of the AAP’s Committee on Pediatric Education, stated, ―Our research

has shown that children and babies growing up in low-income families are more likely to

experience medical and developmental issues. There are parents out there who feel have nowhere

to turn, and while they struggle their children are not receiving the care they need. This program

aims to alleviate the issue. The combination of Graco’s 60-plus years of experience in child safety,

and the AAP’s network of medical professionals will provide the ideal resource for struggling

parents.‖

Classes will begin the first week of April 2015. All locations can be found on the program website:

www.abcprogram.com. The site also shows a calendar of classes available by location and

beneficial child care information for young and expecting parents.

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Graco Baby Products In 1942, Russell Gray and Robert Cone formed Graco Metal Products, in

Philadelphia, PA. Graco continues its tradition of innovation, with products like the imonitor™

Digital Baby Monitor and the compact folding Contempo™ Highchair. Today, Graco is a Newell

Rubbermaid™ company, with 1500 associates worldwide. While a half-century has brought many

changes to Graco, the dedication and commitment to designing and manufacturing top-quality

products—products that inspire parents and babies alike—remains, and continues on.

###

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Digital Analysis

Other phrases such as ―Graco Buckle,‖ ―Graco Recall,‖ and ―Graco,‖ were also searched.

However, ―Graco seat,‖ provided us with the most relevant material. The graphs below indicate

audience sentiment, which overall currently seems to be neutral or positive.

Page 29: Media Relations Program on Graco Recall Crisis

Fact Sheet

Background

On January 1st, 2014, Graco was asked to recall 5.6 million rear facing infant, convertible andbooster seats by National Highway Traffic Safety Administration. The company filed a Notice ofDefect and Noncompliance to recall about 3.7 million convertible and booster seats on February 7and declined to recall an additional 1.8 million rear facing infant seats.

Models affected

• Argos 70• Argos 70 Elite• Classic Ride 50• Comfort Sport• Ready Ride• Cozy Cline• Toddler SafeSeat • My Ride 65• My Ride 70

• My Size 70• Size4Me 70• Head Wise 70 with Safety Surround• Nautilus 3-in-1• Nautilus Plus• Nautilus Elite• Smart Seat• Smart Seat with Safety Surround• My Ride 65 with Safety Surround

New and Improved Harness Buckle

Measures

29| PageKaJa Public Relations

Graco is currently offering free replacements for all affected car seat at toll-free 800-345-4109 or [email protected]. Consumers are encouraged to place their order for a replacement harness buckle through company's online forms.

In order to apply for a new car seat, consumers are required to fill out a form detailing the type of car seat that has been affected by the recall, their name and contact information.

The company is also handling the recall through active communication on social media, and proper assistance for the product recall on their company website.

The company's top priorities are quality control and ultimately child safety.

There have been no reported injuries as a result of the harness buckles used on Graco car seats.

The company has developed a series of testing protocols to improve the safety of their car seats known as Safe Seat Engineering. All Graco car seats are engineered and crash tested to meet or exceed US standard FMVSS.

Graco offers a new and improved replacement harness buckle to any consumer who may be experiencing difficulty with their harness buckle at no cost.