Emergency Relations – Evaluation(Pepsi syringe crisis of
1993) Presented by Bushra Sehar
CASE STUDY
Overview
• June 1993, Seattle television station reported discovery of a syringe in a diet Pepsi can by a local couple.
• Issuance of regional advisory by U.S. FDA gave warning to consumers which spread through news broadcast within 24 hours.
• July 4th holiday sales period presented pepsi-Cola with a challenge to trademark and reputation.
• Media persisted reporting victims claims and looking company for answers.
Research
• Pepsi’s long standing crisis response guidelines
were researched.
• Crisis plan was evolved into sophisticated
communication network. .
• Effective communication is the key element in
resolving the crisis successfully.
Continue…..• In 1993 the crisis plan activated pepsi
crisis team planned and executed a response.
• To end scare and restore public confidence in its products.
Planning• Response plan was triggered from day
one of the crisis
• Objectives
Convince the public about safety of the product.
Planned tempering involving syringe couldn’t logically occur.
• Strategic Approach was used:
To communicate the facts early and often to the audience.
To work closely with the FDA.
Centralize communication channel were established to reach all affected groups
Execution
• Crisis team updated communication to target groups.
• Company worked quickly to understand the problem thoroughly.
• On-site interviews, making films of canning lines and issuance of press release assured consumers to answer them.
• FDA termed the issue “ The vicious cycle of media reports begetting copycat complaints”.
• Messages and tools were created to counteract the phenomenon.
Execution
• Staff was appointed to deal clients.
• FDA officials concentrated on finding the cause of syringe claims.
• Pepsi focused on showing its product virtually temper-proof.
Evaluation
• Crisis cost Pepsi $25 million in lost sales
• Consumers bounced back and showed their confidence in Pepsi.
• Pepsi’s crisis response was deemed a success by cooperation of FDA and clients.
• Media debated its role in escalating the scare.
• Pepsi was lauded in congressional record by U.S. house of representatives for its quick and decisive action to end the national scare.