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Overview

Overview. History. 2005 Purchased an old Kraft manufacturing plant 2007 Placed the first cup on a store shelf in New York 2011 Named best-selling brand of all yogurt in the U.S. 2013 Estimated sales to be approximately $1.3 billion. Greek Yogurt Market. Crisis Timeline.

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Overview

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Presentation Transcript

  1. Overview

  2. History • 2005 • Purchased an old Kraft manufacturing plant • 2007 • Placed the first cup on a store shelf in New York • 2011 • Named best-selling brand of all yogurt in the U.S. • 2013 • Estimated sales to be approximately $1.3 billion

  3. Greek Yogurt Market

  4. Crisis Timeline Chobani uses the blog to inform about a quality issue National media attention & Chobani publishes details of affected products Mold is identified as Mucorcircinelloides 8/31 9/6 9/3 9/5 9/1 8/20 Voluntary recall is issued Media stories are about stores pulling product Complaints begin on social media

  5. Crisis Timeline Chobani resumes promotional posts on social media Chobani writes an apology on the blog and details the crisis response strategy FDA received nearly 300 complaints of illness 9/25 10/8 9/11 9/7 9/18 9/27 Chobani stops posting new content on social media and focuses on replying to customers California resident files class action lawsuit for negligence Chobani thanks customers for support

  6. Chobani’s Response

  7. Chobani “voluntarily and proactively removed and replaced the majority of potentially affected products”

  8. SEPTEMBER 3 SEPTEMBER 5 Recall brings in the FDA Press release Social media statements Code 16-012 Expiration dates 9/11/13 to 10/7/13 • Products affected by a mold “commonly found in the dairy environment” • Affected less than 5% of product

  9. SEPTEMBER 6 “Mold behind Chobani recall poses little threat to consumers” –Chobani “Not considered a foodborne pathogen” –Randy Worobo, Cornell University

  10. “Nothing is more important to us than responding to and connecting with our fans—including, and most importantly, those who have a less than perfect experience. Every day we set out to do that a little bit better.” –Chobani SEPTEMBER 11 • Updating customers in real time • Bolstering its Customer Loyalty Team • Providing real time social engagement • Supporting retail locations SEPTEMBER 27

  11. Customer Reactions • Complaints of hiding information • Customers updated each other

  12. Main Points of Contention • Slow or non-responsive • Critical of company reaction • Ill customers • Disconnect between social media and customer loyalty teams • Invalid coupons

  13. Slow or Non-responsive Company Reaction to Crisis

  14. Ill Customers Disconnect between teams

  15. Invalid Coupons Supportive Customers

  16. Still Unsatisfied

  17. Retailers “A representative for Kroger, the nation’s largest traditional supermarket operator, said Chobani issued a product withdrawal Friday. “It was not a food safety issue,” Kroger spokesman Keith Dailey said in an email.” - AP

  18. Media

  19. Media “Grocery stores in the Treasure Valley have pulled Chobani Greek yogurt from their shelves following what the company is refusing to call a recall” – The Idaho Statesman “Chobani’s recent problem of mold in its yogurts shows the early warning that can come from social media but also the difficulties consumer companies can face in responding quickly enough to satisfy their consumers.” – The Wall Street Journal

  20. Page Principles • Tell the Truth • Transparency • Listen to the Customer • Social media staff vs. Customer Loyalty Team • Prove It With Action • Withdrawal & recall • Coupons

  21. Page Principles • Manage for Tomorrow • Previous social media strategy • Third party endorsement • Conduct public relations as if the whole company depends upon it • Media relations and lack of comments • Social media hiatus • Remain calm, patient and good-humored • Messaging and key talking points

  22. Discussion Question What impact will this crisis have on the company moving forward?

  23. Significant Post Crisis Events • Oct. 11, 2013 • Chobani & Cornell University announce partnership for food science and dairy innovation • Nov. 12, 2013 • PR Week reports the CCO & several PR staff are no longer with the company • November social media complaints

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