©Dr Maciej Ulita. „Things go better with Coke” but is Coke going well?

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Presentation transcript:

©Dr Maciej Ulita

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

 Year 1999 (July)  14 years old schoolboy from Belgium  Coke  That is how one of the biggest nightmares of Coca-Cola started…

 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…

 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

 Belgium was earlier criticized for not taking actions fast enough when it appeared that there were contaminated meat and poultry  Which means:  Context matters!

 Belgium reacted fast  Selling Coke became forbidden in Belgium  Factories in Antwerp and Ghent were closed  It appeared that Coke had used contaminated CO 2

 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

 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…

 Media said it was a Public Relations DISASTER!

 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

 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!

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? ( company.com/news/index.html; Jul ) Coca-Cola Set to Return to Belgian Marketplace This Weekend