Final pr 422 case presentation
Transcript of Final pr 422 case presentation
“WOULD YOU LIKE YOUR TACO WITH OR WITHOUT PESTICIDE TODAY?”
CASE #11
Kristen Lucas Shannon Mossman Julie Hildenbrand
Founded in 1903 (Fred Walker)
World’s second largest food company ($42.9 billion)
170 Countries
Corporate office located in Northfield, Illinois
BACKGROUND
BRANDS
Insecticide
8 other varieties approved for human consumption
StarLink’s biotech corn was NOT approved
PROBLEM = Cry9C
Environmental Protection Agency stated StarLink’s biotech corn was only to be used for livestock feed and ethanol fuel
Causes allergic reactions (mild allergy to fatal shock)
BIOTECH CORN
Taco meal kit
Nacho kits
Salsa
Taco sauce
Seasoning mix
Refried beans
Taco Bell Products
*Annually taco shells generate nearly $50 million
Friends of the Earth sends a news release to media outlets announcing that test results found traces of biotech corn (unsuitable for human consumption) in taco shells produced by Kraft Foods. The FOE ordered the taco shells be removed from store shelves immediately.
September 18, 2000
CRISIS
ROPE
ResearchObjectives and Goals
Programming and Planning
Evaluation
RESEARCH
Kraft Foods decides to conduct an EXPERIMENT
Type: PROBLEM RESEARCH
Quantitative Research (Hard Data)
Formal Research Process
Secondary Research
FDA
To protect the reputation of Kraft Foods
GOALS
ONE ULTIMATE GOALType: Reputation Management
To verify FOE’s test results immediately by working with the Food and Drug Administration and the Environmental Protection Agency.
To address consumer anxieties and provide consumers with answers regarding health concerns.
To make the product unavailable immediately if unapproved Cry9C is found to be present in the taco shells.
OBJECTIVES
To communicate on a national level and emphasize that biotech corn found in Kraft Foods’ taco shells is not entirely dangerous to the health of all consumers.
PROGRAMMING & PLANNING
STRATEGY
Keep the taco shells on the shelves as long as possible.
One day after FOE test results were released, Kraft Foods issued a statement explaining the taco shells would be tested.
The same day Kraft issued the statement, the company also released more information to consumers. (Q & A)
Sept. 22, 2000 Kraft Foods chief executive announced the recall of the products.
Offered a second Q & A following the recall of the taco shells.
Presented recommendations for biotechnology.
PROGRAMMING & PLANNING
TACTICS
To verify FOE’s test results immediately by working with the Food and Drug Administration and the Environmental Protection Agency.
S: FDA and EPA involvement
M: FDA’s test results
A: Kraft has the ability to work with FDA and EPA
R: No mention of budget
T: Issued statement 1 day after FOE’s new release and released results 4 days later.
EVALUATION
Objective # 1
To address consumer anxieties and provide consumers with answers regarding health concerns.
Issued two Q&A’s to the public
S: Targeting Kraft Food’s consumers
M: Media coverage
A: Impossible to cease all consumer worries
R: No mention of budget
T: Issued statements and Q&A (Sept. 19)
After recall, issued second Q&A (Sept. 22)
*No specific mention of these dates
EVALUATION
Objective # 2
To make the product unavailable immediately if unapproved Cry9C is found to be present in the taco shells.
Kept taco shells on store shelves until test results confirmed the presence of StarLink
Sept. 22, 2000 official recall of taco shells
Suspended taco shell production
S: All taco shells recalled
M: Track grocery stores who carry the taco shells (over 2.5 million packages)
A: Must make all carriers aware taco shells have been recalled
R: No mention of budget
T: Recalled four days after test results were confirmed
EVALUATION
Objective # 3
Case # 11: Kraft Foods Case # 13: Bausch & Lomb
CASE COMPARISON
•Highly respected health care brand•ReNu lens cleaners •Microbe causing blindness (fungi) •Health authorities were not notified•Still sold in U.S. •May CDC announces results •Bausch & Lomb decides to recall product after findings were announced•The public was unhappy with the response•Bausch & Lomb takes a big hit•After recall, reputation rebuilding began immediately
•Major global food supplier •Biotech corn: Taco Bell taco shells•Ingredient causing allergic reactions•FOE released lab test results•Kraft did not recall taco shells immediately•Waited for FDA test results to recall the product•Public was extremely anxious, they wanted answers immediately•Recall occurred AFTER results were found•Little reputation management following recall
*Both companies put THEMSELVES before CONSUMERS!
Twitter account for Kraft Foods
Create a blog for Kraft Foods’ consumers to discuss their thoughts on biotech corn and other questionable ingredients
Include links on Kraft Foods’ website directing concerned consumers to articles regarding information on bio tech corn
UPDATE
1. How could Kraft’s response have been more proactive to the initial crisis?
2. Did Kraft do the right thing by leaving the taco shells on store shelves until the lab results were presented? Was the recall too late?
3. Taco Bell’s home line of products were in question, how could Taco Bell as a restaurant utilize PR strategy and tactics to differentiate their products from those in question, ensure consumer safety and continue with a steady flow of business?
4. Were the Q&A’s too brief? If you were a concerned customer, did they cover all of the information you wanted to know?
5. Should food companies use labels or warning signs when they use biotech foods? What other ways could companies inform the public about the dangers or benefits of using biotech foods?
DISCUSSION QUESTIONS