Crisis management does not only apply to managing natural disasters, it applies to companies as well. In light of a number of crisis situation experienced by several multi-million dollar companies, every company must have their own crisis management plan. If not for their proper handling of a crisis, a large pharmaceutical company could have collapsed after a particular batch of paracetamol caused adverse reactions to consumers. In a recent pet-food poisoning case, a company was almost forced to close down its operation. In both instances, crisis management was geared towards preserving a reputation.
How much does a reputation cost? A lot. It is for this reason why companies guard their reputation zealously because all it takes for this reputation to collapse is just one negative feedback. What ten thousand people said in praise of your brand can suddenly be clouded by a single negative feedback.
How do you now undo a negative feedback that is threatening your brand? In the examples mentioned above, companies have endeavored to be proactive in addressing the crisis by pulling product, providing notice information, and updating websites and other marketing tools such as
postcard printing with information about the recall. Reacting immediately and proactively is the only thing one can do if faced by a question on the integrity of a particular product.
A most recent case reminds me of how something negative can actually become positive in the long run. A company that is in the production of milk formulas immediately ordered a recall of all its products in supermarkets and stores everywhere. By all reports, retailers immediately pulled out the questionable milk product from their shelves and reported to the public. This company then went on an active campaign to inform the consumers about the issue and reassuring all those who might have purchased this particular product that they are willing to reimburse them without question. Full page ads with full color prints that are most likely to catch attention were published in national dailies.
Full color postcards were also handed out in most supermarkets to inform the public. These were all done to bolster customers' confidence it in the company.
After everything has been said and done, the company still enjoys the support of the consumers. Based on the company's records, their sales actually increased after that fiasco. This just shows that crisis will set a company back but with proper management and handling, it can actually become an opportunity - an opportunity to show the buying public that it cares.
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