Nestlè, Social Crisis and Solution
Finding a safe exit for a big elephant from a ceramic shop.
It takes years for a company to build a brand and a reputation, but the underestimation of the power of public opinion and how huge it can impact businesses can result in a sever loss of image and reputation in just few days.
Hossam El DomiatySD # 800091329
Table of Contents
Statement of the Problem
Purpose and scope of work
Baseline and Situation analysis
Remedial short term plan
Long term plan and communication strategy
Conclusion and measures for success:
Nestle is the world's leading nutrition, health and wellness company had recently faced a social media crisis that was not really anticipated, it looked like a big elephant attacked in a ceramic shop. My mission is to get a safe exit for Nestle with no more broken pots and to implement a strategic maneuver to recover the company image and lost sales on the short and long term. Statement of the Problem
The underestimation of the power of public opinion and how huge it can impact businesses had resulted in a sever loss of image and built up a public anti-corporate act. This was revealed in the wide spread of a problem video on youtube and other social media and the inappropriate comments war on the corporate facebook page between nestle administrator and page visitors. Purpose and scope of work
The purpose of this report is to describe an immediate action plan to overcome the negative impact of social media crisis, to propose a strategic communication plan to implement after this crisis is over and to properly manage Nestle online and social media communications. Baseline and Situation analysis
Nestle uses Palm oil from plantations that were originally green forests and peat lands, this had resulted in too much irritation to environment activists. During the last ten years, and in order to expand Palm oil plantations, palm oil suppliers had deforested huge areas in Indonesia and Malaysia and had also cleared peat lands to release massive amounts of carbon dioxide to the earth atmosphere. Greenpeace is one of the few powerful NGOs that worked with no desperate to stop systematic deforesting of green forests in Indonesia and Malaysia to expand palm oil plantations.
They believe 40 % of produced palm oil goes to big companies like Unilever, Nestle, Cadbury and Tesco ….etc, hence they are hammering on those big companies to stretch their financial muscles to control the way palm oil suppliers obtain their oil. RSPO (Roundtable on Sustainable Palm oil) association has been established on 2001to modify and standardize the way Palm oil is produced, processed and used. Many of the big companies and suppliers like Unilever and Duta Palma had joined the RSPO to show their commitment to environment responsibility, though Nestle was somehow slow in following the herd and in announcing real steps towards environmental commitment. Having fed up from Nestle slow response, Greenpeace decided to confront you.
They produced a video that is least described as a disastrous anti-nestle act.
The video could have a limited damage if it was properly contained in early stages by Nestle public affairs team; however, failure to react professionally with the video and with the public resulted in transfer of the battle to the corporate facebook page and spread of the video over the internet. Any competitor would never succeed to ruin Nestle image as Nestle facebook page admin did, s\he did not save any effort to irrationally defeat the company logo from a legal perspective and forgot that it was a social network battle and not a court battle. To summarize the failures mentioned above please see below:
1. Failure to anticipate rising awareness of environment responsibility among the public and within business corridors. 2. Slow response...
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