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
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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
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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.
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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.
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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.
Contact List: Having a contact list with specific individuals from all major news corporations that will cover the story immediately, especially in the time of a recall.
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Internal Contact List: Knowing who in Chobani you need to contact is important. On Chobani’s Intranet site, employees will find a contact list specifically targeted to who they should contact regarding the situation at hand.
After A Crisis:
After a crisis, Chobani continues to be transparent and focus on being authentic and real. We will hold a post-crisis press conference focusing on apologizing, promising change, and thanking for understanding.
Remember the following:
1. Be happy and don’t get angry. 2. Try to answer all the reporters but remember keep responses short. We are trying to move on from the crisis not bring it up again. 3. Be Authentic!
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Social Media Policy
We all know the story about how our founding CEO Hamdi Ulukaya, put great emphasis on social media since in his early starts he said he did not have money for traditional marketing or advertising. Today at Chobani, we have developed such a strong social media presence through Facebook, Twitter, Pinterest, and our Blog that we must continue to promote Chobani in the most authentic and real manner.
Social Media Certification: If you are on Chobani’s social media team, you MUST be certified through our companies Social Media Certification process before engaging on behalf of us.
Follow Chobani’s Code of Conduct: Be sure to have an understanding of Chobani’s code of conduct and any other polices.
Voice Consistency: We are our customer’s biggest supporters, so be caring, friendly, helpful, and most of all authentic.
Be aware that you’re representing Chobani: Remember voice consistency, remember to convey a persona that reflects our Company. Be respectful of race, color, age, gender, religion, and cultures when responding to customers. When emailing others, be sure to acknowledge that you work for our company. “Hi my name is Joe and I am the social media director at Chobani Yogurts.”
Timely Manner: Respond to tweets and Facebook post in a timely manner. Even if it’s just a like or retweet let the customers know that we hear them.
Think before you tweet: Before you tweet on behalf of our company, make sure it won’t offend anyone or it is relevant to our company. If you are unsure, then don’t post. This goes for Facebook, blogging, and pinning.
Giving credit: Always give credit for everything if it is not yours. Remember to ask for permission if you are using a photo on our site. We believe in giving credit, when credit is due.
Internet is FOREVER: Remember even if you delete it, it’s still going to be there. Think before you post!
Remember what Chobani stands for, being authentic and real, and we can build our company through social media by doing just that.
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Dear Customer and Fans,
With recent media attention regarding my personal life has had many of you questioning my loyalty to Chobani Yogurt, and my answer to you is that Chobani has been my first love and priority since it began in 2005. It still is. I am very proud of what Chobani has become, will continue to make Chobani my priority.
My personal life is a very private matter to me, but I want to be real with everyone and say that who I am dating does not influence anything regarding Chobani. Our relationship does not mix business with pleasure. The rumors are not real, and what is real is that I am very happy with my life right now, company and personal.
Please believe me when I say that Chobani will always be my number one priority. I am only addressing this issue because many of you have stood by me since 2005, and I believe you deserve to know the truth.
I wish you all total happiness.
Hamdi Ulukaya Founder and CEO of Chobani
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Importance of Q&A and Holding Statements:
With the potential crisis above, it is best that the issue is addressed and then left alone. But for other crises, Q& A and holding statements are very important.
Holding statements are pre written statements that can be used to address the media right away, but doesn’t provide too much information. Example:
“We have implemented our crisis response plan, which places the highest priority on the health of Chobani consumers."
This gives the publics, the idea that you are addressing and working on the problem. Why this wouldn’t make sense for the situation I have provided is that one statement from the CEO is all that needs to be said. He is actually doing the public a favor by disclosing something personal.
Q&A can be an effective way to addressing the media all at once. With the proper media training and well thought out answers this could be a great way to minimize the negative impact on your company.
A Q&A, would not be fitting for our CEO to do because it could just bring more media attention and that is not what he wants.
Analysis of company’s key audiences:
Chobani appeals to young adults, mainly women (Staff, Neilsen). Chobani yogurt also appeals to the masses from elderly to children. Chobani literally appeals to anyone who cares about their health or maybe trying to lose weight. Defiantly, has a huge demographic, but with social media the key audiences will be anyone who engages in social media regularly. Since there Pinterest page is very popular, and Pinterest is heavily occupied by women that is why Chobani appeals to women (Staff, Neilsen).
List of communications methods you will use to reach those key audiences:
Social Media is the major way to reach the key audiences for Chobani. Chobani relies heavily on social media therefore it is the best way to convey a message to the masses. Also maybe television commercials, but that is a stretch from what Chobani normally does by posting videos to YouTube or other social media outlets (Staff, Neilsen).
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Here is a table of potential ways to communicate with stakeholders
Stakeholder Communication Outlets Employees • Personal contact • Email • Intranet Factory • Email • Personal Contact • Website • Media
Retailer • Personal Contact • Letter • Website • Hotline – 800 number • Website • Media • Advisory Board Meeting Consumers • Website • Hotline – 800 number • Social Media * list of Chobani’s outlets Media • Addressing the media • News release • External Q & A • Press Conference • Advertising • Email SOCIAL MEDIA STATISITCS: (went to each outlet personally and retrieved the numbers)
Facebook: Chobani has over 800,000 likes on their Facebook Page. It is updated daily. Twitter: 67,000 followers, and the company tweets hourly. Foursquare: Over 4,000 likes and users can check-in to various Chobani restaurants, post pictures, and receive coupons. Google+: 400 people in their circle, which is very good considering Google+ hasn’t caught on like Facebook. Instagram: 52,000 followers, following almost 2,000, and have posted over 1,500 photos many which are customers personal photos. Pinterest: Over 28 boards that feature various recipes, 7,500+ pins, and 300 likes YouTube: Features cooking videos, commercials, and informational videos of the company. Blog: A central location that connects Chobani customers to all these various social media outlets, as well as provide information and recipes from the company and users.
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Works Cited
Chan, Amanda L. "Chobani Mold Sickness: Is Mucor Circinelloides Actually The Culprit?" The
Huffington Post. TheHuffingtonPost.com, 10 Sept. 2013. Web. 03 Oct. 2013.
Heller, Jill. "Chobani Recall 2013: Yogurt Cups Pulled From Stores Due To Mold Concerns."
International Business Times. International Business Times, 4 Sept. 2013. Web. 03 Oct.
2013.
Marler, Bill. "Chobani, Here Is the Difference between a Recall and a Withdrawal and Some
Questions." Marler Blog. N.p., 05 Sept. 2013. Web. 03 Oct. 2013.
McIntyre, Douglas. "Eight Founders Who Ruined Their Companies." USA Today. Gannett, 10
Feb. 2013. Web. 03 Oct. 2013.
Northup, Laura. "Chobani: Exploding Yogurts Caused By Mold At Idaho Plant." Consumerist.
Consumerist, 4 Sept. 2013. Web. 03 Oct. 2013.
Staff, Chobani. "Chobani Yogurt: About Us." Chobani Yogurt. Chobani, n.d. Web. 03 Oct. 2013.
Staff, Mashable. "Mashable." Mashable. N.p., n.d. Web. 03 Oct. 2013.
Staff, Neilsen. "Newswire ." Greek Yogurt A Case Study in How Consumers Redefine Value.
Neilsen Staff, 10 Oct. 2012. Web. 03 Oct. 2013.
Sweet, Ken. "Kenneth Cole Egypt Tweets Ignite Firestorm." CNNMoney. Cable News Network,
03 Feb. 2011. Web. 03 Oct. 2013.
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