From Praise to Prolapse: Analyzing Odwalla’s

Transcript:From Praise to Prolapse: Analyzing Odwalla’s:
From Praise to Prolapse: Analyzing Odwalla’s Discourse of Renewal Strategies in the Tainted E. coli Apple Juice Case Heidi Bolduc, University of Central Florida Odwalla As A Brand Founding CEOs: Greg Steltenpohl Stephen Williamson Unique Culture: Youthful demographic Environmental issues Cultural diversity Pre-crisis Phase (October 16-30, 1996) Denver Children’s Hospital: Anna Gimmestad diagnosed with E. coli poisoning Washington Dept. of Health: Evidence of link between Odwalla apple juice & E. coli outbreak Crisis Phase (October 31, 1996) 2 Tipping Points: FDA launches 14-month investigation Edelman Public Relations hired to manage crisis communication Crisis Phase (November 1, 1996) Odwalla issues voluntary recall: 7 Western States: California 5. New Mexico Colorado 6. Oregon Texas 7. Washington Nevada 200 delivery trucks Apple & 12 vegetable juice products included Crisis Phase (November 2-3, 1996) Corrective Actions: Dedicated website 2. Toll-free 800 phone numbers 3. Refunds & payment of medical costs Odwalla Website, 1996 Crisis Phase (November 4-8, 1996) Despite these actions… Apple juice sample tests positive for E. coli Anna Gimmestad passes away Large grocery store chains pull Odwalla AND Competitor juice products Post-Crisis Phase (November 19, 1996) Odwalla’s 2-Step Strategic Plan: 1. Call for competitors to stop selling unpasteurized apple juice 2. Consider heat treatments for its apple juice product Post-Crisis Phase (December 5, 1996) Innovative New Process: Flash Pasteurization “most effective guard against E. coli, while maintaining as much flavor and nutrients as possible” – (Reierson, 2009, p. 107) Discourse of Renewal Theory (Ulmer, Seeger, & Sellnow, 2007) Aims to understand how organizations move from beyond crisis towards: Rebuilding Recovery & Revitalization *Emphasizes post-crisis phase Discourse of Renewal Theory (Ulmer, Seeger, & Sellnow, 2007) Characteristics of Crisis Communication: Provisional as opposed to strategic Prospective as opposed to retrospective Focuses on opportunity in crisis Leader-based *Broad categories designed to describe crisis communication accompanying renewal Discourse of Renewal Theory (Ulmer, Seeger, & Sellnow, 2007) Conditions of Renewal 1. crisis type 2. stakeholder relationships 3. corrective action & change 4. public vs. private organizations *Attributions of crises most likely to lead to successful renewal outcomes Odwalla’s Renewal Characteristics 1. Odwalla intuitively reacted to crisis: Voluntary recall Refunds for consumers Help lines & website FDA cooperation 2. Odwalla looks toward future: Warns against selling unsafe juice Innovates flash pasteurization Odwalla’s Renewal Characteristics Odwalla takes meaningful action: 2-Step Strategic plan Steltenpohl visits sick children 4. Odwalla uses leaders strategically: Positive reputation of CEOs Empowering employees Empathizing with