Brand Failures
Brand Failures Brand Failures
136 Brand failures found in preserved samples of the plant’s powdered skimmed milk made in April. A spokesman said on Wednesday the bacteria may have entered the milk as a result of a three-hour power failure on March 31 which left raw milk standing in high temperatures. Some of that milk made its way into products at a plant in Osaka that was the source of the mass food-poisoning. Snow Brand’s shares were hit hard by the scandal, falling nearly 40 per cent. They have since recovered modestly and on Thursday ended up 0.23 per cent on the day at 427 yen. Last Wednesday, the company said it posted a parent net loss of 11.2 billion yen for the April–July period due to the scandal, which forced it to temporarily close all 21 of its milk-producing plants in Japan. As a result of the incident, sales for the company took a nosedive and Snow Brand’s president, Tetsuro Ishikawa, closed eight of his factories. Before the food poisoning, Snow Brand had a market share of 45 percent. This dropped to under 10 percent and the brand has still to recover back to its pre-2000 levels. The incident also took a personal toll for Tetsuro Ishikawa, who had to be admitted to hospital as a result of stress. Later he resigned and apologised to the media. Lessons from Snow Brand Respond quickly. Snow Brand’s initial response to the crisis was too slow as the company was reluctant to issue a full product recall and to communicate with the press. Don’t sound selfish. When Snow Brand eventually did talk to the media, it focused on the financial consequences for the company, rather than the suffering of its food-poisoned customers. Be prepared. The company was ill-prepared when it made public statements and did not have all the information.
PR failures 137 45 Rely tampons Procter & Gamble’s toxic shock In 1980, Procter & Gamble launched a super-absorbent tampon called Rely. However, the super-absorbency of the product was a result of a synthetic substance called carboxymethyl cellulose, which would sometimes leave a synthetic residue inside a woman’s body after the tampon had been removed. ‘From the moment super-absorbent tampons hit the market there were published accounts of vaginal ulcerations, lesions, and lacerations,’ writes Laurie Garrett in her 1994 book, The Coming Plague. However, things became even more worrying later in the year with a sudden increase in cases of toxic shock syndrome in the state of Wisconsin. Almost all the cases were menstruating females. Following further research by health authorities it emerged that most victims had been using the Rely tampon. This was clearly very bad news, not only for the victims, but also for Procter & Gamble, the company which had virtually started the tampon category in 1936. Furthermore, Rely had been one of the most expensive products ever to develop, with more than 20 years of research and marketing efforts behind it. From the start of the crisis, Procter & Gamble acted defensively. When the Centers for Disease Control (CDC) in Atlanta started to investigate the link between Rely and toxic shock syndrome, Procter & Gamble began their own investigation which (surprise surprise) found no link. When the CDC published their findings, the link was backed up with comprehensive figures.
- Page 93 and 94: Extension failures 85 ‘No toothpa
- Page 95 and 96: Extension failures 87 24 Heinz All
- Page 97 and 98: Extension failures 89 Lessons from
- Page 99 and 100: Extension failures 91 the no-nonsen
- Page 101 and 102: Extension failures 93 Have a core
- Page 103 and 104: Extension failures 95 In the mid-19
- Page 105 and 106: Extension failures 97 every brand -
- Page 107 and 108: Extension failures 99 sales rose to
- Page 109 and 110: Extension failures 101 However, amo
- Page 111 and 112: Extension failures 103 29 Chiquita
- Page 113 and 114: Extension failures 105 A brand is
- Page 115 and 116: 31 Ben-Gay Aspirin Ben-Gay is anoth
- Page 117 and 118: 33 Smith and Wesson mountain bikes
- Page 119 and 120: 35 Lynx barbershop Lever Fabergé,
- Page 121 and 122: 37 LifeSavers Soda Invented in 1912
- Page 123: 39 Frito-Lay Lemonade Frito-Lay is
- Page 127 and 128: It can be expected that brands will
- Page 129 and 130: PR failures 121 40 Exxon Don’t sa
- Page 131 and 132: PR failures 123 including the clean
- Page 133 and 134: PR failures 125 environmentalists,
- Page 135 and 136: PR failures 127 the public. [. . .]
- Page 137 and 138: PR failures 129 42 Perrier’s benz
- Page 139 and 140: PR failures 131 common purpose thro
- Page 141 and 142: PR failures 133 Lesson from Pan Am
- Page 143: PR failures 135 In addition, Snow B
- Page 147 and 148: PR failures 139 Lessons from Rely
- Page 149 and 150: PR failures 141 As Gerber saw it, a
- Page 151 and 152: PR failures 143 regarding youth mar
- Page 153 and 154: PR failures 145 buying about 40 per
- Page 155 and 156: PR failures 147 Be sensitive. By s
- Page 157: PR failures 149 Remember that comp
- Page 161: Brands operate on a global scale. B
- Page 164 and 165: 156 Brand failures of the Bombay St
- Page 166 and 167: 158 Brand failures Coca-Cola. The
- Page 168 and 169: 160 Brand failures Lessons from Kel
- Page 170 and 171: 162 Brand failures Translation trou
- Page 172 and 173: 53 Schweppes Tonic Water in Italy I
- Page 174 and 175: 55 Electrolux in the United States
- Page 176 and 177: 57 Coors in Spain Coors beer had eq
- Page 178 and 179: 59 Clairol’s Mist Stick in German
- Page 180 and 181: 61 American Airlines in Mexico When
- Page 182 and 183: 63 Kentucky Fried Chicken in Hong K
- Page 184 and 185: 176 Brand failures ment. Pretty soo
- Page 186 and 187: 178 Brand failures 65 Quaker Oats
- Page 188 and 189: 180 Brand failures Lessons from Sna
- Page 191 and 192: The people behind a brand are its m
- Page 193 and 194: People failures 185 66 Enron Failin
PR failures 137<br />
45 Rely tampons<br />
Procter & Gamble’s toxic shock<br />
In 1980, Procter & Gamble launched a super-absorbent tampon called Rely.<br />
However, the super-absorbency of the product was a result of a synthetic<br />
substance called carboxymethyl cellulose, which would sometimes leave a<br />
synthetic residue inside a woman’s body after the tampon had been removed.<br />
‘From the moment super-absorbent tampons hit the market there were<br />
published accounts of vaginal ulcerations, lesions, and lacerations,’ writes<br />
Laurie Garrett in her 1994 book, The Coming Plague.<br />
However, things became even more worrying later in the year with a<br />
sudden increase in cases of toxic shock syndrome in the state of Wisconsin.<br />
Almost all the cases were menstruating females. Following further research<br />
by health authorities it emerged that most victims had been using the Rely<br />
tampon.<br />
This was clearly very bad news, not only for the victims, but also for Procter<br />
& Gamble, the company which had virtually started the tampon category<br />
in 1936. Furthermore, Rely had been one of the most expensive products ever<br />
to develop, with more than 20 years of research and marketing efforts behind<br />
it.<br />
From the start of the crisis, Procter & Gamble acted defensively. When the<br />
Centers for Disease Control (CDC) in Atlanta started to investigate the link<br />
between Rely and toxic shock syndrome, Procter & Gamble began their own<br />
investigation which (surprise surprise) found no link. When the CDC<br />
published their findings, the link was backed up with comprehensive figures.
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