Chobani Crisis Management
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Chobani Crisis Prepared by Ashley Tanaka management plan Table of Contents: Table of Contents ………1 Memorandum ……… 2 Outline of Case Study…………… 3-4 Media Relations Policy…………. 5-6 Social Media Policy………………… 7 Letter from the CEO………….8 Importance of Holding Statements………9-10 Works Cited…………11 1 | Page Memorandum To: David Margulies, Senior Management CC: Crisis Management Team From: Ashley Tanaka, Crisis Management Coordinator Date: 11/4/2013 Re: Crisis Management Plan Our company has grown rapidly since 2006, and within the last month our company has faced multiple crises back to back. We are overcoming each obstacle as best as we can, and our crisis management team has updated our crisis management and communication resource plan. The new guide includes updated media relations and social media policies. *See attached. In order to minimize the negative impacts on Chobani, included are 5 potential crises Chobani has faced or could potentially face. We have compared companies who have faced similar situations. Our media relations policy includes being transparent on all levels. A sample apology letter is provided to address a personal situation our CEO could potentially face. This letter is written to be issued on social media outlets. Our CEO, Hamdi Ulukaya has successfully branded himself to the publics, making him a potential target to negative backlash. We also included the importance of holding statements and Q&A, but stated why for this particular situation these do not need to apply. Finally, an analysis on our key audiences and what are our best ways of reaching our audience would be. We included statistic and tables to better illustrate the best practices. Remember the purpose of this updated crisis management and communication resource plan is to provide you with structure and guidance on how to effectively manage Chobani in a state of crises. Our goals will be focusing on being transparent by providing responses, establishing accountability, and most importantly reducing harmful consequences to our organization. Best, Ashley Tanaka 2 | Page Ashley Tanaka COMM 3310 October 3, 2013 Crisis Management Plan: Chobani Yogurt Background and Currents Events: Chobani is an American brand of Greek-style yogurt. Founder and CEO Hamdi Ulukaya focus the company around being authentic and real. He believes “When it’s authentic, when it’s real you don’t have to say much about it.” (Staff, Chobani) Started in 2005, Chobani has grown to be America’s #1 yogurt choice. Within the last 2 months, Chobani has faced many crises involving the product from exploding containers to mold (Heller, Jill). Media Relations Policies: The media relations policy includes what to do during the crisis and what to after the crisis. Policies attached. Social Media Policies: Chobani prides its success to social media, here is a mock up version of what I believe how Chobani effectively runs its social media, through polices. Polices attached Five Potential Crises: I have included 3 actual crises Chobani faced as well as 2 hypothetical ones. 1. Exploding Yogurts: Early in September, Chobani received several hundred Facebook comments from customers claiming their yogurts were exploding. Videos posted on YouTube made the company issue a recall on the yogurts (Heller, Jill). Chobani was very transparent and kept customers up to date via social media outlets (Facebook, Twitter, and company blog). Chobani issued many apologize and acknowledged almost every tweet as they continued to come in. The company also vocalized what they were doing in order to figure out what was causing the exploding yogurts (Heller, Jill). 2. Mold: Two weeks later, after the exploding yogurt fiasco, parents began claiming that their children were getting ill after eating Chobani yogurt (Chan, Amanda L). Again, Chobani issued a total recall and began to work around the clock figuring out what could be the issue. Chobani announced that mold was to blame, and specifically mold contamination at one of their plants in Idaho. “Poor quality control”, is what Chobani used as an explanation. Chobani also posted to social media an explanation of what Mucor Circinelloides, the type of mold (Chan, Amanda L). 3. Failing to know the implications of a recall: Chobani being a fairly new company were first tempted by the idea of doing a quiet withdrawal. A quiet withdrawal is when the product has a minor violation that should not be subject to FDA legal action (Marler, Bill). Chobani could have just removed the product itself, and not issue a recall. This would lack honesty and transparency, to its consumers. Chobani ended up doing a massive recall, which did attract more media attention than a quiet withdrawal. 3 | Page 4. Twitter Slip: A company like Chobani relies heavily on social media and has a strong social media presence. It is possible that a potential Twitter slip could occur. Many companies have faced situations when a tweet in poor taste was accidently tweeted on behalf of the company. Chobani probably has strict social media policies in place in order to ensure accidents like this will not occur. a. If a twitter slip were to occur, the best way to overcome this would to do what Chobani does by being honest. Chobani could address an apology statement and move on. b. Examples of Twitter Slips: i. Kitchen-aid: sent a tweet about Obama’s dead grandmother. Kitchen-aid claimed it was an accident, sent from one of their employee’s phones (Staff, Mashable). ii. Kenneth Cole: Tweeting that the uproar in Egypt was in fact due to their new collection coming out. The company was insensitive and not aware of current events (Sweet, Ken). 5. CEO Backlash: Companies like Chobani, that have been able to even brand their CEO, puts the CEO in major scrutiny, especially during a crisis. If a CEO is out doing something other than solving a crisis, could show consumers the lack of empathy. Although founder and CEO Hamdi Ulukaya, has done a very good job branding himself and showing his commitment and passion to Chobani. If Ulukaya were to have a personal scandal, he would need to have an excellent crisis management plan and public relations team in order to fix his image, since it could reflect poorly on the company. a. Examples of CEO Backlash: i. BP CEO after the oil spill saying “he wants his life back.” He lost his job and people loss credibility in the BP organization (McIntyre, Douglas). ii. Martha Stewart, who was running a multi-million dollar company, decided she needed more money by doing illegal business in the stock market. This affected her company and she had to do a pricy comeback tour and her stocks failed to gain her customers back, and rebuild her image (McIntyre, Douglas). Potential Facebook Post after CEO Backlash: CEO’s sometimes don’t realize how their personal choices can directly affect their businesses. Hypothetical situation: CEO Hamdi Ulukaya makes tabloids after he starts dating Lea Michele. Lea Michele is the actress on Glee as well as a known vegan and PETA activist. Tabloids go crazy after hearing that CEO of dairy-based product is now dating a very vocal animal rights activist. Rumors emerge that, Hamdi is becoming a vegan now after he attends a PETA event with Michele. Hypothetical Outtage: Chobani customers are divided. Some customers begin to question Chobani because if the CEO isn’t eating dairy anymore then is there something wrong with dairy? The other side doesn’t care if he is dating Lea. Ulukaya’s personal life is bringing unwanted attention to his company. 4 | Page Media Relations Policy: If a crisis were to occur here at Chobani, follow these media relations policies in order to effectively alleviate the crisis on hand. Follow orders from crisis management coordinator. Remember our company values being authentic and real. During a crisis: Designated Press Area: Our designated press area is at our New York headquarters. We will announce if a formal press conference will take place. We will allow a press conference if needed, in order to prove transparency to our loyal customers. Pre-written statement booklets that all employees will have if they were to answer the phone: Employees of Chobani will have a booklet that will include statements that should be said verbatim to anyone who may call. Remember no personal statements or private information to be divulged during these phone calls. See sample, various scenarios will be found in the booklet. You: Hi! Thank you for contacting Chobani today, how may we help you? Customer: I am upset with the quality of your product; I heard you are recalling the product is this true? Will I get a refund? You: I am so sorry that our product did not satisfy you. We are working to figure out the situation at hand, if I could get your contact information I will personally make sure your next Chobani yogurt is the highest quality. My name is __________ (first name only), and I make sure to keep you up to date on the status of Chobani. Again, I am so sorry and we hope you continue to support us. Press Releases: Press releases should be sent out immediately to the various channels. Remember all press releases needed to be dated and time-stamped. All contact information should have multiple ways to contact the specific individual handling the case on the press release. Example: media relations directors’ phone number, email, cell phone, private phone, etc. should all be included during a time of crisis. We believe in written statements as well as video statements. All video statements should be done by CEO Hamdi Ulukaya. Media Log: accountability is very important; keeping a media log of information coming and going is the best way to account for what is being said to the publics.