Crisis PR-When it's not your fault

In the past couple of weeks two well known brands have been critically damaged by circumstances totally beyond their control. First Domino’s fell victim to a video hoax which has set the bar for bad taste. Then, a woman offering services on Craigslist was murdered spawning the new tabloid term “Craigslist Killer”.

Now, while Domino’s and Craigslist scramble to repair their reputations, we can examine these cases as cautionary tales and examples of how crisis communications should work. What’s important to remember here is that unlike a crisis of your own creation (like the auto company execs flying to Washington on corporate jets to ask Congress for handouts) it’s much more challenging to manage a situation that is created by someone else.

Before we look closely at the Domino’s and Craigslist cases, it’s worthwhile to look back at a classic case involving product liability. In 1982, Tylenol was a top-seller for Johnson & Johnson; its reputation as a safe, effective pain reliever was impeccable. Then news broke that bottles of Tylenol capsules were laced with cyanide. Seven people died.

J&J’s response was swift and effective. The company got in front of the crisis, spending over $100 million to recall every single bottle of Tylenol capsules. Its strategy was to use the media to tell the public that the Tylenol on store shelves may not be safe. Don’t use it. J&J recalled all capsules and replaced them with safer caplets; J&J instituted new, tamper-proof containers and embarked on a massive, new advertising campaign.

27 years later, this case still exemplifies how to best control a crisis and use it to the company’s advantage. Richard Levick writes in his crisis management reference, “Stop the Presses”, “The crisis was transformed into a positive marketing opportunity that actually strengthened the corporate brand.”

Tylenol survived as a brand and J&J was able to recoup its market share within a year of the incident.

But the Tylenol case happened before the internet, before YouTube and before the proliferation of blogs. So can Domino’s and Craigslist emerge from their crises in tact?

The short answer is yes but it depends on how well they execute their strategy.

Domino’s, for example, saw the potential for disaster immediately and responded within hours of the video’s appearance on YouTube. Posts appeared on Twitter and on the website Consumerist. Domino’s CEO Patrick Boyle appeared in a YouTube video to emphasize the company’s commitment to producing quality food. The bottom line: They were engaged before the media came calling.

The lesson, especially in the world of immediate, on-demand information is that you have to act quickly and you have to put out the right messages. Had Boyle’s video been simply a denial of blame, Domino’s would have taken a greater hit. But, the video was sincere and convincing. It played to people’s common sense that, of course, this kind of thing is not acceptable and is not indicative of how they run their business. It’s unfair to gauge Domino’s success simply by reading the comments posted on YouTube and the various blogs since most people who post tend to be critical not complimentary.

Going forward, Domino’s needs to dispel any notions that its food is anything less than Grade A. That means implementing even better quality control and communicating to the public that stringent food safety rules are being followed. Domino’s could set up a special website where results of regular kitchen tests are posted for all to see. When a company has been victimized the way Domino’s was it has to go to extremes to rebuild trust with the public.

The Craigslist case presents a different challenge. Here, the company has no significant connection to the tragic murder of one woman or to the other victims who had advertised services on the list much like others advertise in the backs of the Boston Phoenix or the Village Voice. The media branding of the case “The Craigslist Killer” is really more about alliteration than anything else but it still leaves Craigslist in a precarious position.

Since Craigslist derives revenue from sex ads there are those who claim the company deserves the blame for enabling a predator. As a result, the best PR strategy may not be in line with the company’s best business strategy—that is refusing to accept any kinds of ads for massages, dates or anything else that could be construed as sex.

Craigslist founder Craig Newmark should be commended for his openness with the media. Yet, what we see in his recent interview with Martin Bashir at ABC News is his frustration over the incidents as much his sadness at the crimes. “My first reaction is sympathy, I mean I feel pretty bad for the victims and their families. I don't like it at all. Beyond that, well, how would you feel if ... the bad guy watched what you do on TV and started calling [you] the 'ABC Killer?'”

So what can Newmark do? Any action needs to demonstrate genuine concern and a willingness to protect the well being of the people who use his site and, often times, find themselves conducting business with total strangers. Allocating a portion of revenue to a fund for the families of the victims is a good start. He could also consider providing capital for schools in the communities in which the victims grew up. Maybe with more educational opportunities women can find safer employment alternatives than those the victims fell into.

As we learned in the Tylenol case, repairing a damaged brand is expensive. But, if faced with a crisis of consumer confidence, companies have little choice if they plan to stay in business. As the old TV commercial for Fram auto parts so succinctly put it, “You can pay me now, or you can pay me later,” a stark reality especially in today’s economic climate.