Crisis Management Michelle Lawhon Leslie Tinoco Michelle Guyette Augie Blancas

HISTORY OF COCA COLA  Established in 1886  Mission statement: “Refresh the world in body, mind, and soul. To inspire movements of optimism through brands and actions. And to create value, as well as, make a difference everywhere they engage.”  Owns 4/5 nonalcoholic sparkling beverage brands in the world.

NEW PRODUCT SCARE  In 1985, took risk of creating a new product... A recreation of the original Coca-Cola  Formula was changed– which was much sweeter than the original.  Called “New Coke”  This caused brand-loyal customers to switch to Pepsi  iew?i=554_ iew?i=554_

HOW PEPSI BENEFITED Pepsi took advantage Ad in the New York Times 14% sales increase over same month the previous year, the largest sales growth in the company’s history watch?v=EMo6o0BtFG8 watch?v=EMo6o0BtFG8

HISTORY OF PEPSI watch?v=P37WgPmkOuM Pepsi originally began in 1898 PepsiCo has expanded their market with several different product line

PEPSI SYRINGE CRISIS

HOW COCA-COLA BENEFITED Last year, Coca-Cola had 41% of soft-drink sales, compared to Pepsi's 32.4%, according to Beverage Digest. 'People Read'

CRISIS MANAGEMENT  Known as a business plan that is implemented quickly when a negative situation occurs  Designing a crisis management plan helps determine how negative events can be avoided.

PREPARING FOR A CRISIS provide solid record as a good citizen Already established crisis management strategy Select spokespersons in advance Prepare positive messages about their operations Prompt and positive communication

PEPSI CRISIS MANAGEMENT defensive strategy claiming its innocence openly declared that they would pursue legal action against anyone making false claims Video cameras Important to communicate with the public in order to prove that no crisis actually existed. Using Crisis management led to success for Pepsi and they were able to get through the crisis.

COCA–COLA CRISIS MANAGEMENT taste tests, focus groups and surveys Focus groups were ending in negative comments Management was trying to come up with new ideas so quick that it was all leading to failure Still launched “New Coke”, but only succeeded for a couple months

WHAT WE WOULD HAVE DONE DIFFERENTLY..  Survey questions  “After tasting the new product, would you purchase the new formula over the original formula?”  Because of brand loyal customers...Instead of completely replacing the original formula, we would just add this “new product” to the product line.  Called... Coca- Cola: The Newest Generation  Slogan: Yesterday. Today. Tomorrow.

OUR AD Coca-Cola: The Newest Generation

WHAT WE WOULD HAVE DONE DIFFERENTLY..  Successful But...  We would use the syringe as a creative tool to advertise to the consumers  The message is “just like syringes are needed for medical purposes, people need Pepsi”

OUR AD Have you had your dosage of Pepsi?

CONCLUSIO N  Most companies face difficult times that could lead to a financial loss within the company  Companies started turning to Crisis Management which is a plan of action that is quickly implemented when a negative situation occurs.  We see with Pepsi and Coca-Cola what happens when you have a plan and when you don’t.

WORK CITED “ Andy’s Pepsiholic Heaven.” Sir Pepsi Website. 14 Feb  “Behind the Coca-Cola Brand” Coca-Cola Web Site. 12 Feb colacompany.com/ourcompany/index.html  “Coke Lore” Coca-Cola Web Site. 12 Feb  “Coca-Cola Deleting ‘Classic’ From Coke Label” The New York Times Web Site. 12 Feb  "Crisis Management." Crisis Management Answers Corporation. 13 Feb  “New Coke 1985.” LiveLeak.com. 12 Feb  “New Coke Search Results”. Coca-Cola Web Site. 12 Feb cola.com/cokecorp/query.html?qt=new+coke&go_button.x=0&go_button.y=0&go_button=Submit&dt=an&nh=20&rf=0&lk=1&w s=1&col=cokecorp&charset=iso &ht=0&qp=&qs=&qc=&pw=100%25&la=en&qm=0&oq=&rq=0&ql=a&si=1  Pepsi-Cola North America. The Pepsi Hoax  “PepsiCo. History.” PepsiCo. Web Site. 14 Feb  “The Coca-Cola Company Reports Fourth Quarter and Full Year 2008 Results”. Yahoo! Finance. 12 Feb