communication crisis management

Abstract IntroductionThis media crisis report was prepared by our team with the aim of clarifyingthe media crisis that Nestle faced in 2010, with heavy criticism coming fromthe online co

CCM 201 (Communication crisis management)

Class: MC1602

Lecture: Mrs Nguyen Tran Huong Thao

Group:

Nguyen Ngoc Minh Hoai SS160326

Nguyen Doan Kim Anh SS160506

Nguyen Gia Trung Kien SE150859

TABLE OF CONTENTS

I Abstract Introduction 3

II Organizational History 3

III Risk Assessment 4

IV Strategic Communication Action Plan 6

1 Confidentiality Statement 6

2 Acknowledgment 6

3 CMT Contact List 6

4 Incident Report form 8

5 CMT Communication Strategy Worksheet 8

6 Stakeholder Contact Worksheet 13

7 Secondary Contact List 15

8 Centralize External Communication 15

9 Proprietary Information 16

10 Crisis Control Center Designation 16

V Evaluation 16

VI References 16

I Abstract Introduction

This media crisis report was prepared by our team with the aim of clarifying the media crisis that Nestle faced in 2010, with heavy criticism coming from the online community and organizations Greenpeace about the Kitkat incident is said to have indirectly supported deforestation for palm oil production This report will include a detailed overview of the incident, and any corrections, related to the incident Thereby, planning and handling

communication for the incident based on the knowledge learned in the communication crisis management course

II Organizational History

Nestlé is a multinational food and beverage company that was founded in Switzerland in 1866 by Henri Nestlé Here's a brief overview of Nestlé's

organizational history: Early Years:

1 The company was initially established as the Anglo-Swiss Condensed Milk Company, focusing on producing and selling infant formula and milk-based products Henri Nestlé's development of an innovative infant formula, known

as "Farine lactée," laid the foundation for the company's success

2 Expansion and Diversification: In the late 19th and early 20th centuries, Nestlé expanded its product offerings beyond infant formula The company began to manufacture condensed milk, powdered milk, chocolate, and other products It also initiated its international expansion, establishing factories in various countries across Europe and the United States

3 Mergers and Acquisitions: Over the years, Nestlé engaged in numerous mergers and acquisitions to expand its market presence and diversify its product portfolio Some notable acquisitions include the purchase of Peter-Cailler-Kohler Swiss Chocolate Company (1929), Libby's (1971), Rowntree Mackintosh (1988), Perrier (1992), and Ralston Purina (2002) These acquisitions allowed Nestlé to enter new markets and strengthen its position in existing ones

4 Brand Portfolio: Nestlé owns a vast array of brands covering several food and beverage categories Some well-known Nestlé brands include Nescafé, KitKat, Maggi, Nestea, Nesquik, Häagen-Dazs, Purina, Gerber, and many others The company's brand portfolio spans multiple segments, including coffee, dairy products, confectionery, pet care, and nutrition

5 Health and Wellness Focus: In recent years, Nestlé has placed an increased emphasis on health and wellness The company has been working towards reducing salt, sugar, and saturated fats in its products, while also

incorporating more nutritious ingredients Nestlé has made commitments to address public health challenges, such as childhood obesity, by reformulating its products and providing healthier choices

6 Sustainability Initiatives: Nestlé is actively involved in sustainability efforts across its operations The company has set several goals related to water conservation, waste reduction, greenhouse gas emissions, and responsible

sourcing of raw materials Nestlé aims to achieve a net-zero carbon footprint

by 2050 and has taken steps to promote sustainable farming practices and

improve the livelihoods of farmers in its supply chain

Today, Nestlé is one of the largest food and beverage companies globally, with

operations in over 180 countries It continues to innovate, expand its product

offerings, and adapt to changing consumer preferences while maintaining a focus on quality, nutrition, and sustainability

III Risk Assessment

Priority Risk factors Description Consequence Impact x

Likelihood

Responsibility Action to

Prevent/Minimize

1 Customer

demand a

boycott of the

brand

Customers and partners simultaneously ask their users not

to use Nestlé related items

Sales as well as the number of consumers decreased significantly => The company's profits were reduced and could not compete with other competitors

Significant x Likely High

Marketing Department

Open a press conference to clearly explain the above incident and reassure customers and reduce the severity

of the incident

2 Customer

demand a

boycott of the

brand

Being boycotted

by unrelated parties or social media sites as well as worsening the image of the company

A declining image means that the coverage of the company's products

is reduced, affecting the company's brand recognition

Significant x Very likely High

Communication Department

Open a press conference to clearly explain the above incident and reassure customers and reduce the severity

of the incident

channels

reported on

the above

incident

Newspapers, social networks or online newspapers reporting on the incident affected the reputation

Causing legal stakeholders to jump in, causing bad rumors about the company as well as reduced its credibility with customers and partners

Extensive x very likely high

Communication Department

Use the most reliable official news sites to publish news and corrections about the company's case

4 Investors

started

leaving the

company

The company's investors, as well

as shareholders, began to leave for fear of its reputation being affected

Losing the cash flows into the company as well as losing the company's business relationships

Extensive x very likely high

Development Cooperation Department

Reaching out to investors and clarifying their views also explains in detail the problems that occur and sits together to solve the problems to come up with the best direction for both parties

IV Strategic Communication Action Plan

1 Confidentiality Statement

All data and records related to the incident of a video clip, which was posted online

and accidentally misinterpreted the Kitkat slogan "Take a break, let's eat Kitkat"

followed by the opening scenes The extraction of palm trees has inadvertently

created confusion for public opinion between Nestlé and Greenpeace, which is

guaranteed to be confidential This information will be kept confidential and can only

be disclosed under the guidance of the Government privacy policy No individual is

allowed to receive any personal benefit from the disclosure or use of confidential

information We promise to discuss this information only with employees and senior managers related to and affiliated with Nestlé and Greenpeace

2 Acknowledgment

To all employees at all levels, our company is facing a case related to allegations of

indirectly promoting the exploitation of forests and planting oil palm trees to produce KitKat products Through the video Nestle Killer posted by Greenpeace organization

on Youtube and the company is receiving a lot of negative reactions from the

community It is important to recognize and accept our responsibility during this

crisis We want to remind all of our employees of the importance of being prepared

and prepared to face this crisis This requires serious understanding and compliance with our rules and policies, including the mandatory reading of the Crisis

Communication Plan (CCP) that the company has prepared This plan outlines the

steps we will take to manage the crisis, including releasing information and

communicating with stakeholders and the media Any individual who fails to comply

or discloses inside information will be held accountable Finally, we hope and want to thank all the staff members who contributed to this crisis preparedness and response process

3 CMT Contact List

Contact

name

Title Relevant to

Crisis

Expertise How They Can Help Contact

Information José

Lopez

Executive Vice

President of

Operations

Leadership in the Crisis Management Team

Crisis management, Leadership

Lead in strategic decision making, coordinate with other departments in the company, oversee crisis management

Phone: +123456789 Email:

joselopez@nestle com

Mark

Schneider

Chief Executive

Officer (CEO)

Support crisis planning, Represent the company in communication and

communication with the public

Crisis management, Spokesperson

- Assist in identifying and planning crisis resolution, making strategic decisions for the company

- Participating in press conferences, communications, ensuring public messages are conveyed accurately and consistently

Phone: +123456789 Email:

markschneider@ nestle.com

John

Smith

Crisis

Management

Manager

Strategic management and crisis response

Crisis management, Leadership

- Directing crisis management strategies, developing crisis communication strategies, and making strategic decisions

Phone: +123456789 Email:

johnsmith@nestle com

Ann Taylor Head of

Communication

s and Public

Relations

Develop and execute communication strategy

Public relations, corporate image management

- Planning and implementing communication activities, interacting with the media

- Shaping messages and statements to convey publicly to the public

Phone: +123456789 Email:

anntaylor@nestle com

Sarah

Elysia Social MediaDirector Social mediamanagement

and monitoring

Social media, social media interaction management

- Support the implementation of communication activities

- Monitor and manage social media activity, and react quickly to user comments

Phone: +123456789 Email:

sarahelysia@nest le.com

Jennifer

Louis

Information

Technology

Manager

Ensuring information security and system recovery

Information security, system management

Ensuring information security, system recovery, solving problems related

to information technology

Phone: +123456789 Email:

jenniferlouis@nes tle.com

Davis Head of LegalDepartment Give legaladvice Corporate law,legal risk

management

Provide legal advice, ensure legal compliance, approve messages and actions from CMT

Phone: +123456789 Email:

michaeldavis@ne stle.com Robert

Thompson

Chief Financial

Officer

Financial management and evaluation

Financial management, financial risk assessment

Financial assessment, financial risk management, making financial decisions for proposed projects

Phone: +123456789 Email:

robertthompson@ nestle.com Mark

Johnson

Environmental

Management

Specialist

Orientation and advice on environmental management

Environmental management, wildlife protection

Provide sustainable solutions, ensure compliance with environmental regulations, and provide information on issues related to wildlife protection

Phone: +123456789 Email:

markjohnson@ne stle.com

4 Incident Report form

Incident Date: 17/3/2010

Incident Location: Social media platform: Youtube

Description of Incident:

On March 17, 2010, on YouTube appeared a satirical video of Nestle's slogan "Have

a break; Have a Kit Kat" (roughly translated: "Take a break, chew Kit Kat") This

video aims to highlight deforestation to harvest oil palm land Greenpeace has found that Nestle is buying palm oil from the Indonesian company Sinar Mars to make a

variety of products including KitKat, which is accused of growing oil palm

unsustainably In this video, an officer takes a bite of a Kit Kat and suddenly realizes

it's the bloody toe of an orangutan, one of many endangered species due to

deforestation for oil palm plantations

Incident Severity: Moderate

Impact on Stakeholders:

Directly adversely affects the reputation and image of the KitKat brand Customers

and consumers react negatively, saying that Nestle is indirectly promoting the

deforestation of palm plantations, which damages many animals and leaves them

homeless, especially orangutans

Directly affecting the customer's experience, they feel uncomfortable when they

know that the brand and product they are using are indirectly harming animals

Customers have a bad view or even turn away, or boycott the brand

Company reputation Sinar Mars: they are accused of improper use of land to grow

oil palm trees

Government of Indonesia: Like the Sinar Mars company operating in Indonesia, the government of this country is responsible for the supervision and management of oil palm cultivation Measures should be taken to manage the environment and protect important areas, such as those inhabited by orangutans

Local communities: Deforestation and habitat loss, especially orangutans, directly

affect local communities living in the affected area For these communities, the loss

of the natural environment also means the loss of livelihoods and future sustainable development opportunities The incident caused anger among the locals here

Action taken:

Nestle has actively contacted and exchanged, explained, and proposed Greenpeace remove the video posted on Youtube

Result:

Waiting for Greenpeace to respond

5 CMT Communication Strategy Worksheet

a Stakeholder analysis

Stakeholder Degree of

indignation

● Responsibility to protect wildlife

● The Origin and Manufacturing Process of KitKat

● Openly criticize, call for boycott of Nestle, KitKat

● Feeling guilty and obsessed about the product after watching the video

Greenpeace and

animal protection

organizations

High ● Conservation of forest

land and wildlife issues ● Outraged, hatebusinesses for indirectly

harming wildlife habitat Local people Medium ● Loss of living

environment and income

● People can organize demonstrations, asking Nestle to take responsibility for their actions

Local

government Medium ● Monitoring andmanagement of oil palm

cultivation

● Measures to manage the environment and protect important forest areas

● More stringent with licensing companies exploiting palm plantations

Investors and

shareholders

Medium ● Impact of this crisis on

Nestle's corporate value and reputation

● Ask Nestle for details on plans and measures to reduce the impact

● Can withdraw investment capital or even claim loss compensation

b Goal & Objective

Goal:

Quickly handle, and end the crisis early Minimize the impact of Nestle's image

Objective

DURING 48-HOURS RESPONSE

● Pull 80% of public opinion and

stakeholders to the official page of the

business, limit listening to tabloids

● Communicate with 100% of employees to

ensure they are informed about the

situation, guide the company's position,

and address any concerns or questions

they may have in 1-4 hours since the

crisis They need to read as soon as CCP

is completed

● Maintain the image and reputation of

Nestle in the mind of 80% of stakeholders

by providing timely answers and

problem-solving within 24 hours as

promised

● Media management: Proactively engage

with the media to provide accurate and

timely information, address inquiries, and

correct any misinformation to ensure

accurate reporting

● Reassure 80% of the public by posting an announcement that Nestle is aware of the incident and will soon provide an answer within 1 hour of the crisis

● Dramatically calm public opinion by posting

a public explanation of the negligence in the incident within 24 hours of the crisis occurring

● Respond to all customer complaints within

24 hours of receipt

● The successful proposal made Greenpeace agree to take down the video

or post a correction about the video within

48 hours, the sooner the better

● Removed 60% of major newspapers, and prominent articles on social networks that caused a lot of controversy and negative reactions within 48 hours

● Strictly manage internal information flows and develop a clear and consistent message accordingly to avoid situations where multiple spokespersons are expressing conflicting information

AFTER 48-HOURS RESPONSE

● Regain 80% of the brand's beautiful image

through meaningful communication activities

after 2 months

● Maintain vigilant monitoring of the crisis situation, including social media, news coverage, and stakeholder feedback

● Emphasize collaborations with key

stakeholders, including environmental

organizations, local communities,

government bodies, and industry partners,

and commitment to collective efforts in

addressing the issue

● Ensure 70% of articles about Nestle's good

deeds always stand out from the previous

negative information 2 months after the crisis

Guaranteed to extinguish, and settle 70% of the problem after 2 months

● Maintain good relationships with Greenpeace, local organizations, and environmental organizations…

● Forming the image of a Nestle putting environmental issues as the top concern

in 70% of public opinion

b Key Messages:

Umbrella Message:

Nestle always puts the needs and experience of customers first, wishing to create

more income and jobs for the people of Indonesia's countryside It is with great

regret that the subjectivity in the study of the extraction and purchase of palm oil

indirectly harms the environment Nestle is committed to being a business that

always puts the environment and wildlife conservation as a priority concern

Recognizing the impact of the problem, we have learned a great lesson In the near future, Nestle will actively take useful actions, support the planting and conservation

of forests, and support organizations to protect the environment and wildlife to make

up for this unnecessary omission

To customer:

Nestle sincerely apologizes to its customers for causing frustration during the

incident We always want to bring our customers the best experience and quality

products We will continuously improve our practices and policies to ensure a

sustainable future for palm oil supplies and improve our products every day Finally,

we would like to express our sincere thanks to our customers who have been

interested in our products and have always been with us

To Greenpeace and organizations that protect forests and wildlife:

Firstly, Nestle deeply regrets unintentionally indirectly affecting wildlife habitat We

always put the environment first Because of the subjectivity and lack of

thoroughness in carefully studying the ecological environment of forest land in

Indonesia, it indirectly affects the habitat of chimpanzees and other animals Nestle

will have activities to support the Indonesian forest ecosystem

We welcome and appreciate the work of the Greenpeace organization because the

video was a wake-up call for Nestle as well as helped me to know more information about the problem of forest ecosystems and endangered wildlife in Vietnam

Indonesia

The company will organize an urgent meeting and learn more about Sinar Mas in

order to clarify the information and origin and origin of the supplier If we find any

problems that really affect wildlife, we are ready to cancel the contract with this

company

We have always been strongly aware of a sustainable lifestyle in harmony with

nature and also recognize the seriousness of the loss of forest land

Finally, Nestle would like to deduct a large part of the revenue from the consumption

of products from KitKat to contribute to the protection of forest land, and afforestation