Coca-Cola's Belgian Crisis - The Public Relations Fiasco




Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

Abstract

The case discusses the crisis faced by Coca-Cola in Europe, particularly Belgium, in which people mostly school children fell ill after consuming its products in mid-1999. Coca-Cola had to recall about 30 million cans and bottles, the largest ever product recall in its 113-year history. For the first time, the entire inventory of Coca-Cola's products in Belgium was banned from sale. The case describes the crisis in detail and discusses how Coca-Cola managed it.

The way Coca-Cola handled the Belgian crisis was a classic example of one of the worst public relations fiascos in the corporate history. The case also highlights the need and importance of a crisis management plan to prevent such fiascos in future.

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Issues

The case is structured to achieve the following teaching objectives:

  • Understanding the public relation issues involved in Coca-Cola's Belgian crisis
  • Appreciating the importance of developing a crisis management strategy
  • Appreciating the need for advance planning and preparation for managing crisis
  • Examining the role of a person with a high degree of accountability (such as the CEO) in managing public relations and crisis management
  • Analyzing how Coca-Cola handled the Belgian crisis and draw lessons from it

Contents
The Recall
Background Note
The Fiasco
The Explanation
The Aftermath
Exhibit

Keywords

Strategic Marketing; Market Leader strategies; Market Challenger strategies; Able challenger; International Marketing; Business strategy; Competitive strategy; Emerging markets strategy; Competition; Customer service; India; Indian automobile industry; Hyundai

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