PR OR NOT PR…CASE STUDY

©Dr Maciej Ulita

„ALWAYS COCA-COLA”

„Things go better with Coke” but is Coke going well?

+ =

FACTS

Year 1999 (July) 14 years old schoolboy from Belgium Coke

That is how one of the biggest nightmares of Coca-Cola started…

WHAT HAPPENED?

The boy suffered nausea and claimed that Coke he had smelled strange…

His friend got it too… 2 hours later both were in hospital were

the doktor said:it must be food poisoning…

MORE FACTS…

40 more kids from the very same place got sick

Some time later – 200 people from the area suffered nausea

Coca-Cola decided to withdraw 2,5 million cans from Belgium

… AND SOME BACKGROUND

Belgium was earlier criticized for not taking actions fast enough when it appeared that there were contaminated meat and poultry

Which means:

Context matters!

SOME MORE BACKGROUND

Belgium reacted fast Selling Coke became forbidden in

Belgium Factories in Antwerp and Ghent were

closed

It appeared that Coke had used contaminated CO2

DOMINO IS FALLING

France, Holland and Luxembourg have forbidden selling Coca-Cola

Swiss authotities demanded that CC must publish information where their products are made

Health Minister of RSA (far from crisis) informed citizens that they should not drink CC

AND…

Coca-Cola withdrew 14 millions boxes (biggest ever)

Coca-Cola lost 60 millions in three months

Coca-Cola shares were loosing value really fast

UUUUUUPPPPPPPPSSSSS…

AND FINALLY

Media said it was a Public Relations DISASTER!

WHAT HAPPENED AND WHAT SHOULD HAVE HAPPENED?

Month earlier owner of one of pubs in Bellgium let Coca-Cola know that 4 of his clients got sick after smelly Coke…

Coca-Cola replied:

We took care, and everything is a OK.

But they didn’t and it wasn’t

THE DISASTER

Coca-Cola President – Douglas Ivester needed a week to apologize

Lack of information from Coca-Cola made media to fulfill the space with rumors

President went to Belgium agreed with Minister (which was lucky, because it was close to elections and Minister wanted peace as fast as it is possible) – SO AGAIN – CONTEXT MATTERS!

THE END OF STORY AND NOW

SOME PRACTISE

Group 2

Group 1 Group 3

Group 4

What do you think about Coca-Cola behavior? What Coca-Cola should have done when first heard about the smell?

What Coca-Cola President should have done after rumors about Cola contamination appeared? Did Belgium government acted like it should?

What do you think about the idea that Coca-Cola shouldn’t withdraw their products and defend? What the defence could have beeen like?

How Coca-Cola came back to Belgium? How was it in your opinion? (www.thecoca-cola-company.com/news/index.html; Jul. 1. 1999) Coca-Cola Set to Return to Belgian Marketplace This Weekend