I. Background Information

On June 10, 1993, elderly Fircrest, Washington, couple claimed that they

had discovered a syringe floating inside a can of Diet Pepsi So, after two

weeks later public started to offensive them. That’s why Pepsi started

tribute to sound communications thinking and rapid but it made their

corporate to face into catastrophe.

The day after the Fircrest complaint, Tacoma woman reported finding

another hypodermic needle in a can of Diet Pepsi. So with story of the two

tampered cans it sent whole worlds to shockwaves. Whether this two story

became publicist in whole world Pepsi CEO chose to “hold its powder”

that’s why many of people advised them to not to underestimating this

problems.

So on June 13, the commissioner of FDA, David A. Kessler warned

consumers in Washington, Oregon, Alaska, Hawaii and Guam that before

they drink Diet Pepsi they should check tempering of can and should pour

the contents in cup. With this crisis, Pepsi continued claimed that those

cans were virtually tamperproof and they even urged its bottlers and

general managers not to remove the products from shelves. On June 14,

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Pepsi issued an internal “consumer advisory” to its bottlers and general

managers and made them to claim that they did not have syringes of this

type in any of their production facilities and all cans used for Pepsi-Cola

products are new packages. But whether with their effort, the nation was

awash in copycat Pepsi-Cola tempering and finally Pepsi’s image became

decreased from nations.

Pepsi’s story dominated for three days in the evening news and networking

morning programs so on June 15, the Government said to Pepsi to break

first. During break time, a man who had fraudulently reported becomes

arrested. With this arrested, Pepsi seized the offensive.

From Media relations, Pepsi started to show customers to know the real

facts with these methods. First, Using VNR pictured conveyed the massage

to consumers how manufacture process built on speed, safety, and integrity

especially when they tampering cans. Second, VNR pictured Pepsi

president Weathercup claimed four critical points to give more impact to

consumers. Third, VNR pictured even Pepsi’s president thanked to

consumers for their support, reported additional arrests, and reaffirmed

Pepsi’s decision not to recall its product. In addition, VNR made Pepsi’s

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president and a product safety expert on as many talk shows as could be fit

into their schedules.

From Government relations, Pepsi started to cooperate fully with

Commissioner Kessler and the FDA. FDA office of criminal investigation

reported about arrest man in central Pennsylvania and Kessler issued a

statement on the tampering and the possibility of copycats.

On June 17, Commissioner Kessler approved unequivocally characterizing

the controversy as a hoax and on June 21, Pepsi president wrote letters to

express his thanks to presidents in Kessler and the FDA.

From Employee relations, Pepsi adopted a policy of full and immediate

disclosure as soon as it had discerned the pertinent facts. Even consumer

advisories claimed to Pepsi that at least once a day, Pepsi’s 400 field

locations know what was going on, what has been reported and how the

company was responding to customers. President Weathercup personally

wrote to bottlers and general managers during crisis time to keep them

advised of breaking developments. So, when the surveillance video was

found Weathercup sent overnight mail to his all bottlers to share.

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By June 18, Pepsi seemed like one millennium. They got their reputation

and product had been challenged. Finally, Pepsi declared victory through

national ads. The story of national ads was like this “Pepsi is pleased to

announce…..nothing”.

This incident of Pepsi called as one of the worst kind of national nightmare

with critics and copycats threatening the company at every juncture, ended

in a flurry of pervasive public praise. Even several companies praise them

as “Media-smart Pepsi”, “a mistake, a big mistake” and “the right moves,

Baby”.

FDA/OCI’s arrested around 55 suspected hoaxers after that Weathercup

reported that sales had fallen just 3 percent at the height of crisis,

approximately $30 million. But by July and August, Pepsi sales were up 7

percent, the best summer in five years.

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II. Situational Analysis

Pepsi had nightmare on June 10, 1993 because of Fircrest couple report

about discovered a syringe floating inside a can of Diet Pepsi. That’s why,

around 50,000 people of Pepsi-Cola started to prevent offensive from

media to claim because of them 95 years old trade mark will have disaster.

But the day after the Fircrest complaint, a nearby Tacoma woman reported

that she found another hypodermic needle in a can of Diet Pepsi. So, it

made Pepsi to not to claimed their opinion to offensive of media and it

made this incident became more and more of a mystery. Whether this

incident happened, the president and CEO, Craig Weathercup acted like this

happen will be removed faster because of showing trusty for many years to

his consumers and believed that consumers will think this is just rumors by

people who were jealous about their company fame. But nonetheless

consumers believed the rumors and finally on June 13, the commissioner of

FDA, David A. Kessler, warned consumers who were living in Washington,

Oregon, Alaska, Hawaii, and Guam to inspect closely cans of Diet Pepsi

before they drink it and to not to get harmful effect should poured the

contents into a gals or cup. Time by time copycat tampering accelerated to

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make Pepsi to hold its ground. So, critics urged to Pepsi to recall their

products but Pepsi continued to insist that their cans were virtually

tamperproof. On June 14, Pepsi begun to issue an internal “consumer

advisory” likes this. First, the syringes that were found are those commonly

used by diabetics for insulin. But Pepsi do not have syringes of this type in

any of their production facilities. Second, all cans used for Pepsi-Cola

products are new packages. They also don’t reuse or refilled at any time.

On that day, the nation was awash in copycat Pepsi-Cola tampering. So, to

barrage this copycat Pepsi-Cola tampering Pepsi told media to report their

opinion.Pepsi tampering stories dominated in national media, leading the

evening news and network morning programs for three days. So on late in

the evening of June 15, Pepsi received first break because a man in

Pennsylvania was arrested on the charge that he had fraudulently reported

finding a syringe in a can of Pepsi. With this arrest, Pepsi seized their

offensive and started to show up their claims. Through Media relations,

Pepsi get out their tampering allegations. They usually used VNR to

convey the message to consumers that their manufacturing process built on

speed, safety and integrity especially when they tampering cans. The

president and CEO of Pepsi, who’s named Weathercup pictured in VNR to

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show up several critical points to consumers. He narrated the story of

woman who was caught because of inserting a syringe in to an open Diet

Pepsi can. And also said thanks to consumers for their support, reported

additional arrests, and reaffirmed Pepsi’s decision not to recall its product.

Finally, this video was broadcast to 95 million viewers on 325 stations in

159 markets and made Pepsi to get their fame again. Through Government

Relations, Pepsi cooperated fully with commissioner Kessler and the FDA

to build up trustful to consumers. During that time FDA office of criminal

investigation was the one who reported the arrest of the man in central

Pennsylvania. In addition they did alert in the Pacific Northwest too.

Commissioner Kessler issued a statement on the tampering and the

possibility of copycats. Because of their efforts Pepsi president Weathercup

wrote thanks letter. Through Employee Relations, Pepsi was able to

dispatch at least once a day, usually twice or three times on each day of the

crisis to their consumers that what was going on, what has been reported,

what the government was doing and how the company was responding.

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III. Implications / Consequences / Parallelism / values

Implications- Implication of this Pepsi punctures the great syringe soda

scare is to give warning to companies could get in trouble as Pepsi. As

bigger companies should prepare well so, whenever this kinds of incident

came to them they could solve problems without go into mystery.

Consequences- The consequence of this incident will affect many of

companies to learned a lot of lessons and made them to alert even if small

incident. Media also developed and became most influential effect

equipment for companies which can convey messages to people.

Parallelism- Media relations used VNR to conveyed messages to

consumers and to targeted their visualize influences. But unlike media

relations, Government relations moved Kessler and FDA to report as actual

and to move consumers mind to face into trust on them. In Employee

relations, company’s employees were who influence company to develop

again with responsibilities.

Values- Values of this incident is could make company to make trust in

their customers mind through their efficiency.

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IV. Conclusion

1) Do you think Pepsi erred by not immediately volunteering to recall its

product? – NO, I don’t think they erred. Because if Pepsi immediately

volunteered to recall their product, it’s possible that they get bad image

from consumers and also it’s possible to make them to thought about Pepsi

who just wanted to cover immediately about this incident without proof.

So, it probably made people to lose their trust.

2) How would you assess Pepsi’s overall public relations strategy? – In my

opinion, Pepsi’s overall public relations strategy was good. Because

through VNR they conveyed their opinions and proofs that they did not put

syringe. So, finally they got a chance to move consumers trustful to them

again.

3) How would you assess Pepsi’s government relations strategy? – In my

opinion, Pepsi’s overall government relations strategy was good. Because

with Kessler and FDA which is most trustful company to check up food or

drinks to consumers, they made them to report the truths and proofs. So, at

last Pepsi got more trustful from consumer after this incident.

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4) What were the pros and cons of ignoring print media and focusing

instead on electronic media? Could this strategy backfire on Pepsi? – In

pros, they said whether people get more influence by electronic media than

print media but through print media it’s possible that they could report what

was going on for everyday with less expensive. But unlike pros, cons said

through electronic media Pepsi was able to give strong impact to media and

easily moved mind of consumers. And I don’t think this strategy backfire

on Pepsi because consumers usually wanted to hear proofs and reports from

the person concerned.

5) What were the pros and cons of using Pepsi’s president as chief

spokesperson? - Pros and cons used Pepsi’s president as chief

spokesperson because he was the one who has to hear as center of pros and

cons.

6) What public relations lessons can be drawn from Pepsi’s experience for

handling future product tampering cases? – I think the lesson of Pepsi is

hold public first before solve other problems in the future. Because public

work as big role to connect consumers and company communication well.

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V. Personal Learning and Insights

Through Pepsi I learned that as a big company when they decide solution

they should think once again and as a big company should know how to

used media well to return consumers mind. If Pepsi did not decide their

solution without think once again, they might give strike to their company

image and it’s possible that they did not remain as one of the big company

as coke company. And if Pepsi did not know how to used media well to

return consumers mind, probably consumers trustful decreased and whether

Pepsi remain as big company they might had some kinds of bad image of

Pepsi. I realized that whether big company succeeded already they need

efficiency to develop and maintain their status. So, as a human being who

did not success yet, should need more efficiency to reach their goal. That’s

why; from now on I will do my best to reach my goal and will push

efficiency everytime I got in trouble. I will not also feel afraid to get new

trouble and will accept that trouble which can improve myself better and

think it will be need in my near future trouble. So that when I get in trouble,

I might solve problems professionally without hesitation.

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VI. References

-The Pepsi Product Tampering Scandal of 1993

(http://www.roadsideamerica.com/rant/pepsipanic.html)

- The Pepsi Challenge: managing a crisis - product tampering case at Pepsi

Cola General Bottlers Inc. Pepsi Cola Bottling Co

(http://findarticles.com/p/articles/mi_m3289/is_n3_v163/ai_15312359/)

- The Diet-Pepsi Crisis

(http://newsflavor.com/alternative/the-diet-pepsi-crisis/)

- Crisis Management/Pepsi Syringe Scare

(http://iml.jou.ufl.edu/projects/Spring01/Morrison/Pepsi.html)

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