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.