There’s a Syringe in My Pepsi Can!”

In: Business and Management

Submitted By gugmena1
Words 877
Pages 4
In case 9-1, PepsiCo, the makers of Pepsi-Cola and Diet Pepsi, was a target of a scam that created a crisis for the company. PepsiCo was blamed, in multiple claims, for selling cans of Diet Pepsi with foreign objects inside. The issue first arose as only a local problem but soon escalated into a widespread, national news story and became a crisis in the “point of no return” stage for Pepsi. The first case of a foreign object found in an unopened can of Diet Pepsi was reported on June 9, 1993 in Tacoma, Washington.
Washington residents reported finding a used syringe in a half-empty Diet Pepsi can
(325). Only one local television station reported on this story. The following day, another claim was made in Washington, and in the course of one week, more than 50 incidents of foreign objects, including sewing needles, screws and a bullet, being found in Diet Pepsi cans were reported in 24 states. The issue was now on the national level, and news media all over the country were reporting on the widespread claims. Adding to this obstacle was the pattern of claims, some of which were fatal, regarding product tampering.
Pepsi could not see any rational reason for the reported incidents and decided against recalling the product. By insisting that its high-tech production lines produce cans of soda too fast to allow for the entrance of a foreign object, that the objects being described were not those commonly found in a factory, and that the canning factories of the reportedly damaged cans were not the same, Pepsi was able to defend its position and activate a crisis communications plan that upheld its reputation and even won an award.
2
Pepsi needed to develop a plan that would curtail the news reports, show the safety of its products and win back customer loyalty (327). The FDA became an intervening public for Pepsi in this case and gave factual and…...

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