Crisis management dsh

Nestlé's reputation crisis

Social media lessons

1Social media lessons - Greenpeace Vs Nestlé

Presented by:

Dania Hammoud


Preview

1. Analysis: what happened?

2. What was the response from Nestle

3. Why is social media so important: some clarifying statistics

4. What can we do? Some recommendations.

a) In the short term.

b) In the long term.


Analysis:

What happened ?


Analysis: what happened?

17 March 2010 Greenpeace accuses Nestlé of contributing to

deforestation as a result of its choice of palm-oil suppliers in Indonesia.

The environmental awareness group Greenpeace criticised Nestlé for obtaining palm oil from “companies that are trashing Indonesian rainforests, threatening the livelihoods of local people and pushing orangutans towards extinction.


what happened?

• Greenpeace created a provocative website and a video (both there are still there).

• The campaign featured a disparaging version of the logo for Nestle’s Kit Kat candy bar with the word “Killer” on it.

• The videos and the Killer logo and others equally offensive to the company started circulating in cyberspace. They went viral


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what happened?

• 68 related videos in Youtube attracted 1.2 million hits.

• Hits Collateral Greenpeace videos are tagged with messages about Nestlé palm oil policy: 1.1 million hits (up to 3/28/2010).

• Nestlé´s Facebook page is overwhelmed with negative comments: fueled by the momentum of the Greenpeace video, Anti-Nestle discussions move away from activist blogs and land on Nestle’s Facebook page.

17 -28 March 2010


What happened?

19 March 2010

Nestle response responds with a web statement that says the contract with the supplier has been terminate.

Nestle response on Facebook


What happened?

• 29 March 2010 1. Social Media community remains skeptical2. Negative Twitter comments related to Nestlé palm oil appear every

15 minutes.3. Graph of 7 days of twitter usage of "nestle“

4. The Wall Street Journal picks up the story: the case jumps from the social media to the official media 11Social media lessons - Greenpeace Vs Nestlé

What happened?

• Let´s recap

1,2 million negative Youtube videos.95.000 Nestlé Facebook fans seeing negative messages on its wall

Nestlé shares prices:


What happened?

• Let´s recap • Negative Twitter tsunami. • The Wall Street Journal is spreading the story.

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What was the response from Nestlé?:

some errors14Social media lessons - Greenpeace Vs Nestlé

What was the response from Nestlé: some errors

1) Censor: the Streisland effect.

2) Get defensive.

3) Insult your customers.

4) Respond with the same weight.



Censor: The “Streisland effect”• the “Streisland effect” Nestlé lobbied to have the video removed from

Youtube, citing a copyright complaint. Censoring the video in the first place is what exacerbated this war. People started making the Killer logo their profile picture, at which point Nestlé repeated the initial mistake by issuing the following update on Facebook:



Censor: The Streisland effect

• The Streisland effect is used to describe the phenomenon when censorship causes something to become even more widespread. Don’t do it. And especially don’t do it twice. The net is such a place that whatever you delete is pretty retrievable – and even if it isn’t – the whole thing with mass protest is that it is based on perception far more than reality. Censoring fuels this emotion.



Censor: The Streisland effect

Nestle received 190 complaints within 24 hours on Facebook, and thousands of tweets reaching hundreds of thousands of consumers. The surest way to tick off users of social media is to delete their comments. It is true that by the old standards of 20th century law, brands have a right to protect their intellectual property. But social media comprises fluid networks of users sharing and retweeting.



Get defensive

The biggest mistake Nestlé made was by the person running the Facebook page who appeared to take every criticism personally.

Retaliation also invokes the Streisland effect.

Nestlé should not have responded to anything. Nothing they could say would make it right anyway, so it’s better to say nothing.



Insult your customers

Nestlé violated a basic rule of public Relations, "Don't insult your customers". Even if you applaud the moderator for acting like a living, breathing human being, the combative tone resulted in continued rants on the Nestlé's Facebook page, even after the company announced It was ending its relationship with the palm oil supplier in question.

Such an announcement should have been a Lauded shift to a sustainable practice, but it was lost amid the criticism.


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Respond with the same weight

A press release does not combat screaming hatred against a brand. You must match fire with fire. The only way Nestlé can turn this around is to carry out some thing that has the same weight as the criticisms and viral nature that attacked it.

You can not respond with traditional methods. You must match viral protest with viral solutions.


Why is social media so important:

some clarifying statistics


Why is social media so important: refreshing some ideas

• The conversation is going on whether you care to be involved or not.

• If you choose not to be involved, you lose control of the conversation about your product, your business. You become irrelevant!

• Trust can take years to build but be eroded away in just a few days.

• To avoid disaster, you have to keep one finger on the pulse of the social web

Markets are conversations. Are you participating?


What can we do?

Some recommendations


Step 1

Step 5

Secure your brand

Monitor social media sites 24x7

Create rules of engagement Step 3

Establish your crisis strategy Step 4

Step 2

Step 5

Step 6

Define your social media response strategy

Make sure you understand the ways social media work

Some recommendations: In the long term



• Grab your brand everywhere you can, regardless of whether or not you plan to use it.

• Have control of your identity all over the web.

• Have a unified social media username to establish trust with other members (and potential press contacts) who may belong to multiple communities with you.

Step 1. Secure your brand



• We must monitor the social media 24X7 by using:• Google alert. • Social mention. • WHOS TALKIN. • ….

Step 2. Monitor social media sites 24x7


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Step 3. Create rules of engagement

Train the employees on the proper use of social media tools.Define rules for employees engaging in social media (social media policy). Basic social media guidelines like: .



Basic social media guidelines like:1. Disclosing the company you work for.2. Not discussing confidential information. 3. Refraining from disparaging the company. 4. Not engaging in impolite dialogue.



Step 4. Establish your crisis strategy• Set up a team who would be able to manage crisis situation and

are willing to work around the clock.

• Assess the situation online by harnessing the tools that are available.

• Track the sources of negative publicity constantly to monitor change.

• Follow the volume of responses and the type of consumer reaction (neutral, positive, negative).

• Define your response and ensure consistency in communication – do not send out multiple, mixed messages



Step 5 : Define your Social Media Response Strategy

• If consumers are silent on the situation – continue to monitor but don’t respond publically (Yet).

• If a response is demanded , wait for the initial hype and outrage to die out, then respond to those who are genuinely seeking an answer.

• Listen and determine the type of response the consumers want – apology/ acknowledgement/ demand for change.

• Do not respond too quickly.

• Do not respond in a “corporate tone” i.e.. a press release on the website as the sole response mechanism.



Step 6. Make sure you understand the ways of social media before you engage in this space.

• There are lots of do’s and don’ts.

• Make sure the person you assign to handle social media tasks knows how to properly interact with the public. Good manners and knowledge of how to appropriately respond to comments of all kinds is imperative.

• Be prepared for negative feedback. No matter how wonderful you are, someone somewhere can have a bone to pick. Realize it may wind up in your social space. Engage with negative feedback like you do positive. Don’t delete, edit or hide from negative comments (unless abusive)

• Be part of the conversation and don’t try and ‘control’ the space. Listen to the crowd. They are probably your customer.



Step 1

Step 5

Create a forum

Hire a team of professional Community Managers

Start dialog, begin a process of collaboration

Step 3

Introduce yourself Step 4

Step 2

Step 5Make a point to welcome the comments

Some recommendations: In the short term


Step 5

Create an area for discussions

Ask your audience for advice and suggestions Step 7

Build the community as a community

Step 8

Step 6

Step 9Review process



Step 1. Create a forum• Create a forum (other than Facebook)

that allows you to set stronger privacy and moderation setting.

• A niche Ning network, for example, and a measured digital reachout campaign might help cultivate a core cohort of digital Nestle fans.



Step 2. Hire a team of professional Community Managers; do not delegate to PR intern

• What happened to Nestle happened because the team charged with managing its Facebook page was either not qualified or not empowered to do their job. Properly handled, the attack on Nestle’s facebook page could have been managed differently and the outcome could have been radically more positive for the brand.

• If Nestle’s Social Media team had been experienced in crisis management and properly trained, Greenpeace’s attack on the Nestle Facebook page could have been made to fizzle out in under an hour. In other words, Greenpeace’s attack could have been made to backfire if it had been managed by professionals instead of amateurs.


• Corporate comms isn’t about creative copy and pushing it out through a breadth of channels. It’s professional chess.

• This isn’t amateur hour. Social Media management requires rigorous training and razor-sharp focus: Having a Social Media presence for your company and brand(s) is serious business. It isn’t an afterthought. It isn’t something you can afford to assign to interns. It isn’t something you can afford to completely hire out to a digital shop, a “social media” firm or an ad agency. You have to take the space seriously. This requires planning, preparation, training and focus.


• If activist groups (even at the grass-roots level) set their targets on you, you CANNOT afford to leave any of your communications (digital or not) virtually unmanned. You need Marines, Navy SEALS and Rangers on that wall, not green, untested recruits. Hire professionals. The real time web isn’t a joke. Take it seriously and you’ll probably be okay. Hire amateurs, and suffer the consequences. It’s that simple.



Step 3. Start dialog, begin a process of collaboration

• There comes a point when comms are just comms, and the dialog has to move beyond well crafted words and community appeasement. Listening and talking are just the beginning.

1. Fact 1: Greenpeace has a valid argument when it comes to environmental protection.

2. Fact 2: Nestle is a complex business with enormous supply requirements, relatively inelastic price-points, and tremendous pressure in the middle of a global economic crisis to perform well for its shareholders.


44Social media lessons - Greenpeace Vs Nstle

• Instead of wasting so much energy fighting comms could be used to open a dialog, find some common ground, and begin a process of collaboration: Nestle knows food production. Greenpeace knows environmentally sound practices. It seems that they could both learn a lot from each other.

• Start using their digital comms team to open the door to constructive dialog on these issues. Moderating the ensuing discussions – no matter how difficult the first few hours and days may be – would be a solid next step.


Step 4. Introduce yourself. Put a face, name and role to your official presence.

• Don’t just reply from behind a faceless corporate identity and avatar. Be a human being. Talk like a human being. Feel like a human being. Engage on a personal level with commenters.



Step 5. Make a point to welcome the comments. Invite them. Keep it up.

• This is important. Be cordial, be kind, be professional, and assume your role as the custodian of facts. Not propaganda: facts. If someone claims something about your company or products that is inaccurate, politely respond to their comment with a link to factual information that will help them reconsider their position.



Step 6. If you haven’t done it already, create an area for Discussions on the Facebook page.

• This will give discussion topics their own tab on the page, and a place for people to go to start and participate in discussions that isn’t necessarily the wall.

• Why is having a Discussions area important? Several reasons:

1. First, it helps move a lot of the traffic and activity off the wall, which isn’t a bad thing - for obvious reasons. (Not all of it, but a good amount of it.).


This is one of the first tangible ways that you will regain control of the situation: Manage the influx of comments. Organize it. Redirect it. Refocus it. Give the discussions purpose and focus.

2. Second, it helps keep all of the conversations focused. Instead of a mess of anger and random grievances, you can create a discussion thread for each specific grievance. In the case of Nestle, these individual discussion topics could be: Saving Oranguntans. Preserving Borneo’s rain forests



Step 7. Ask your audience for• Recruit your detractors’ help in fixing the issues they are

angry about. Don’t just give your angry commenters lip service. “Thanks for your comments. We will review your suggestions and share them with management” doesn’t cut it anymore. Instead, ask your audience for advice and suggestions. Right there and then.



Don’t wait. They want to express themselves? Great! Redirect their energy: Shift them from anger to deliberate empowerment. They’re angry at your company? There are specific things they want you to stop doing? Perfect. Take the discussion a step further and ask them to give you better alternatives to what you’re doing now. No, really. Do it. Keep probing. Keep asking. Make them think about practical solutions together.



In the case of Nestle, this would mean inviting Greenpeace and key environmental action think tanks to work with senior Nestle supply chain execs on finding realistic alternatives to current methods of production.



Step 8. Build the community as a community

• Once the crisis is over, thank the commenters for their help and invite them to continue what they started. Continue to be a good host. Build the community as a community, not as a fortified brand embassy.



Step 9. Review process

• Convince management to let you turn the feedback from your new virtual think tank into something a little more formal. Form a team to look into how to take those ideas and make them happen. That kind of review process will identify what ideas have merit, and what ideas don’t. It’s a valuable exercise in that alone.



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Date post:	09-May-2015
Category:	Technology
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Crisis management dsh

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