Overview of Pepsi's

Crisis in April 201 7

In April 201 7, P epsi faced a significant crisis that grabbed global attention.
The following sections will delve into the details of the crisis, P epsi's
response strategy, and the lessons learned from this impactful event.
Importance of Crisis Management
1 Reputation Protection
E ffective crisis management is
crucial for protecting a company's
reputation, which directly impacts
consumer trust and loyalty.
2 Risk Mitigation
It serves as a tool for mitigating risks
and preventing long-term negative
consequences on the company's
operations.

3 Stakeholder Communication
It involves clear and timely communication with stakeholders, ensuring transparency
and credibility during challenging times.
Case Study: Pepsi's Crisis Details

Widespread Outcry Social Media Impact Response Failure

The case study will cover the
specifics of the controversial
advertisement released by
P epsi and the public outrage it
triggered.
Details on the viral spread of An in-depth analysis of the
negative sentiment across initial response from P epsi and
social media platforms and its its failure to address public
effect on P epsi's brand image. concerns effectively.
R esponse S trategy of P epsi
1 Immediate R ecall
P epsi's first action involved an immediate recall of the controversial advertisement and a
public apology.

2 Engagement with S takeholders

Details on how P epsi engaged with customers, influencers, and public figures to address
concerns and start the mending process.

3 Corporate R esponsibility Initiatives

An overview of P epsi's follow-up actions, including investments in social causes and
diversity initiatives.
Evaluation of Pepsi's Crisis Management
Positive Aspects Areas of Improvement

An overview of the aspects where P epsi's Identifying specific areas where P epsi's
response strategy showed effectiveness and had response strategy could have been enhanced to
a positive impact. mitigate the crisis more efficiently.
Key Lessons Learned
Effective Cultural Sensitivity
The importance of carefully considering cultural implications when developing
marketing campaigns.

Transparency and Authenticity

How transparency and authenticity in corporate apologies can positively
impact the public response.

Continuous Stakeholder Engagement

The need for ongoing communication and engagement with stakeholders to
rebuild trust post-crisis.
Best Practices for Crisis Management
Rapid Response Team
The importance of having a dedicated
team ready to swiftly respond to
unexpected crises.
Scenario Planning
The value of conducting scenario
planning to anticipate and prepare for
potential crises and their aftermath.

Communication Protocols
E stablishing clear communication protocols to ensure accurate and timely
dissemination of information.
Conclusion: R eflecting on Effective
Crisis Management
1 Long-Term Repercussions
Reflecting on the long-term impact
of this crisis and the measures taken
to rebuild brand trust and credibility.
2 Industry Insights
Identifying broader implications for
crisis management strategies within
the marketing and advertising
industry.

3 Continuous Improvement
E mphasizing the importance of ongoing refinement of crisis management tactics to
adapt to evolving landscapes.