'Recall' to prevent disaster and build credibility

Its important for companies to pull off defective products from market places. Many companies have done this in the past. Such 'Recalls' help -

1. Manage any possible disasters due to usage of the defective product
2. More importantly it also builds credibility by getting consumers to build perceptions of ethical behaviour resulting in greater trust towards the company's brands.

Gerber Foods' recent recall of all packages of its organic rice and organic oatmeal cereals last Friday because of potential clumping of the baby food, which could have posed a choking hazard, will go a long way in reinforcing trust in its products and also prevent any possible choking disasters. Gerber had earlier said that had received complaints of choking but no reports of injury.The company said a "limited quantity" of the cereals could contain lumps that do not dissolve in water or milk. The cereals were distributed nationwide and to Puerto Rico and the Caribbean

Comments

Niyati said…
This reminds me of the Gerber case....

In 1986, Gerber, the German baby food manufacturer, made a critical PR mistake. When incidents of glass shards were found in its jars of baby food, Gerber remained tight-lipped and failed to issue a recall. This decision invited
a lot of criticism with articles in Business Week, Newsweek and Time openly attacking the company on ethical grounds. Although the pieces of glass had not caused any fatalities, some babies had been severely hurt. As Gerber saw it, a recall would only serve to generate more media attention and would have a negative impact on sales. It would also be expensive to implement. But Gerber forgot one important thing. Brands are about the public’s perception. It is not about proving who is right or who is wrong. By refusing to talk, Gerber was acting as though it had something to hide.

Although Gerber’s brands survived the crisis, most analysts now agree the incidents were not well managed and that Gerber’s reputation suffered as a result.
Prof.Ray Titus said…
Big mistake by Gerber...
In fact the book, 'Brand Failures: The Truth About the 100 Biggest Branding Mistakes of All Time' by Matt Haig, that chronicles the Gerber case is quite an interesting read.

Available here -

http://www.google.co.uk/books?id=6o7SrLdgx8gC&pg=PP1&ots=tbWncuc2xM&dq=brand+failures&sig=vB_gtESpHb7ah1fFYlQIvz-aKbQ

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