
Last week, a woman in San Jose found part of a human finger in her bowl of Wendy's chili. The Web jokesters are already on the case -- Adrants cites a spoof that says the incident is part of a new promotional campaign offering customers "a bit of (founder) Dave (Thomas) in every bite."
The reality is that a crisis of some kind happens to all companies from time to time. Whether the crisis becomes a PR nightmare or a minor bump in the road is generally determined not by the incident itself, but by the company's response to it. A company that handles a crisis with openness and honesty can actually build a stronger relationship with its customers than it had before.
I think it's too early to tell in the Wendy's case, but the San Jose Mercury News (registration required) has a nice article on this topic. The article cites some well-known crisis management cases of the recent past, "handled well or poorly." Here's an excerpt from the article; I've added links for those who'd like to learn more about each of these incidents:
More than 60 people got sick and one child died in an E. coli outbreak in 1996 that stemmed from bacteria in unpasteurized apple juice produced in Dinuba by Half Moon Bay-based Odwalla. The company recalled all suspect products, brought in outside experts to investigate, sent executives to meet with the parents of the child who died, and created a Web page for customers.After some of its restaurants served hamburgers tainted with E. coli bacteria in 1993, Jack in the Box denied responsibility and tried to blame another company and government health officials. Bad strategy. Eventually, the company paid $55 million in legal settlements and fees, along with $44 million to franchisees and $8 million to shareholders.Following the crash of a ValuJet plane in Florida in 1996, the company was so badly tarnished by its poor safety record that it changed its name to AirTran Airways.Bridgestone/Firestone recalled millions of tires in 2001 after reports of 62 deaths and more than 100 injuries after the tires suddenly lost their tread. Ford's president and chief executive, Jac Nasser, appeared in two Ford television ads, giving customers his ``personal guarantee'' that the automaker was working around the clock on the recall.After the Exxon Valdez oil-spill accident in 1989, company executives' two-week delay in visiting Prince William Sound, Alaska, damaged the public's perception of Exxon, feeding the impressions of an unfeeling corporate giant.In 1982, seven people died in the Chicago area from taking cyanide-laced Extra-Strength Tylenol capsules. That scare led to the introduction of new tamper-resistant packaging for non-prescription pain relievers, and Tylenol, made by Johnson & Johnson, soon regained its lost market share.Even a marketing campaign can create a PR crisis. Blockbuster, based in Dallas, had a crisis on its hands recently when it launched its "End of Late Fees" program -- which had too much fine print attached for many of its customers, as well as the attorney general of New Jersey, who filed suit over the
campaign. More than 30 other states subsequently began their own investigations.
It sounds like a mess....but so did "
New Coke" until it led to the creation of "Classic Coke," and even more shelf space and profits for Coca-Cola. So it's not too late for Blockbuster to turn this one around.
1 Comments:
Since it's beginning to look more and more like fraud, Wendy's handling of the incidence might have been golden. They didn't cave or try to settle, but have been searching and posting a reward to find out from where the fingertip came.
By
Jeremy, at 4/14/2005
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