Healthy Foods Company

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1 Healthy Foods Company A Communication Plan William Chavez Alison Matthiessen Julio Stephens Michele Zorrilla

2 Question 1 - Situation analysis: Healthy Foods Company (HFC) is a globally trusted pet foods brand that has been praised by the Humane Society of the U.S. and the American Veterinary Medical Association. We produce a variety of pet products, particularly dog and cat food, under the brands Healthful Choice and Good For Them. Our employees are a collection of dog, cat, and other animal lovers whose mission is to enhance the well being of dogs and cats by providing world-class quality foods and pet care products. We pride ourselves on conducting research with the help of dog and cat research associates while adhering to national and international standards and regulations. We are assuming HFC is an international company with a number of existing internal departments that will aid the Associate Director for US External Relations during this crisis. These departments include marketing/advertising, public relations, sales, customer service and support, and information technology and web departments. From the case study, it is clear that we value both our customers and collaborators. These include our brand sellers (specialty pet stores, veterinary offices and clinics, feed and grain stores, gourmet food stores, pet boarding and grooming locations, and commercial grocery stores), pet owners, the Jonas Healthful Technical Center for research and development, and the independent Cutlip Research Center in Albany, Georgia. We have also previously worked with People for the Ethical Treatment of Animals and other animal rights groups.

3 PETA s February 6, 2012 claims have negatively impacted HFC s reputation. These claims are of animal abuse at the Cutlip Research Center, including euthanasia, debarking procedures, and muscle removal surgeries. A member of PETA, who allegedly worked at our independent research laboratory, based these claims on a nine-month investigation. The investigator released a video that included footage of non-hfc animals and did not include any scenes of the socialization and enrichment activities she was being paid to develop for our research. The communication department believes this paints the company as one whose practices conflict with our mission, that may not adhere to laws such as the Animal Welfare Act, and that does not value honesty. HFC was previously protested against in Europe, where HFC announced it would suspend any new research that resulted in the euthanasia of its research subjects. PETA was unsatisfied with company efforts to improve conditions for research on laboratory dogs and cats. Today s claims are a direct contradiction to our previous announcement. HFC is concerned that these claims could negatively impact our reputation among customers, collaborators, and regulatory agencies.

4 Question 2 - First Priority: Our first priority is to have our CEO publicly acknowledge that we are aware of these claims. We pride ourselves on following proper policies and procedures to protect the well being of our dog and cat research associates. We are launching a full investigation and will be providing accurate information as soon as we can. Question 3 - Research: Informal research about other PETA cases will be conducted to discover who PETA has attacked before and how they attacked them. Other pet company cases will also be informally researched in order to find out how they reacted to the crisis and communicated with their stakeholders. This may better prepare us for dealing with HFC s current crisis by providing us with communication (such as strategies or tactics) to avoid or to employ. We will use formal surveys to research customers trust and perceptions of HFC. In addition, we will survey employees to get feedback on morale within the organization. Both groups will be surveyed during the initial allegations to provide a baseline for additional surveys in the year to see if our communication tactics to improve those feelings have been successful.

5 Question 4 - Stakeholders: Customers (including retailers) HFC (stockholders and employees) Regulators PETA Question 5 - Communication to Stakeholders: Our consistent message to all stakeholders is that we are investigating, animal health and safety is our number one priority, and we do not support inhumane research practices. Specific messages for individual stakeholder groups: Customers: We value their patronage and will do everything we can to live up to their expectations. HFC: We value their hard work for, commitment to, and input to HFC. HFC will do everything we can to ensure the stability of their jobs and the reputation of the company. Regulators: We will be forthcoming with any investigative findings and will be fully cooperative with any possible investigations they need to perform. PETA: We understand your concern. We feel that HFC has been inaccurately portrayed. We will do everything we can to earn their trust by proving that we stand by our mission statement and regulations, and that we treat our research associates with the utmost respect and care.

6 Question 6 - Communication Objectives: Customers o Increase customers trust in HFC by 5% within one year based on survey responses o Return sales to 75% of January 2012 levels within one year o Increase customers favorable perception of HFC by 5% within one year based on survey responses HFC o Maintain employee retention rates to within 5% of their levels from February of 2011 after one year o Increase employee morale by 10% within one year based on survey responses o Increase positive media coverage by 8% within one year Regulators o Decrease required regulatory inspections by 15% compared to their February 2012 levels within one year o Fulfill requests for information and documentation within an average of five business days in the year following the allegations o Ensure regulators reports on HFC contain no major violations in the year following the allegations

7 PETA o Decrease PETA s negative coverage of HFC by 15% compared to their February 2012 levels within one year o Begin holding quarterly meetings with PETA to solicit feedback regarding research practices within six months o Reduce complaints against HFC (by mail, phone, and ) by 20% compared to their February 2012 levels within one year Question 7 - Strategy: We seek to be open and honest with all of our stakeholders by providing them with timely, accurate information regarding our research practices and commitment to our mission statement and company values. To reach our stakeholders we will employ a variety of tactics tailored to their specific needs across multiple channels as well as offer them opportunities to provide feedback.

8 Question 8 - Tactics: News releases - An initial news release will be published on our website with the intent of reaching all external stakeholders (customers, regulators, and PETA) and the media. The news release will also be published on the company intranet as an additional resource for internal stakeholders (employees and shareholders). It will contain all current information regarding our investigation as well as a statement of HFC s commitment to our mission statement and company values. Additional news releases will be published as necessary based on any new information. News conferences - An initial news conference will be held with the intent of reaching all external stakeholders and the media. A statement will be given by our designated spokesperson, HFC s CEO, acknowledging the allegations, informing the audience that we have launched an investigation, and that we will be providing them with regular updates. HFC s CEO will reiterate HFC s commitment to our mission statement and company values. Additional news conferences will be held periodically based on new information. Special website - A dedicated website will be launched immediately that will be available to all stakeholders. The website will be utilized to distribute pertinent and updated information (including news releases, videos, etc.) about the investigation underway. This will also be used to bolster our image by providing background information concerning our mission statement, company values, and socialization/enrichment activities for our research associates.

9 Company tours/open houses - Company tours/facility open houses of HFC s Jonas Healthful Technical Center will be scheduled at six months and one year to allow interested stakeholders to visit and examine our research facilities and procedures including socialization/enrichment activities for our research associates. This tactic will help to reflect our efforts to be open, honest, and transparent with our stakeholders. After the first two events, the company tour/open house will be scheduled as an annual event. The communication department and HFC management would also like to work with the Cutlip Research Center to determine if an open house and tour would be feasible at the facility in the future considering the facility was mentioned in PETA s allegations. Media interviews - Media interviews with select HFC executive leadership team members including the CEO, Director of Research Operations, Associate Director of US External Relations concerning HFC operations will be conducted. All speakers will be briefed to handle press inquiries and questions that may pose possible legal implications. Videos of the interviews will be distributed on the website as well as the company intranet. This will provide additional transparency and allow HFC to receive information regarding the concerns of stakeholders. Coupons - Special coupons will be provided as part of our marketing efforts. Coupons will distributed through our retail store affiliates and through our customer mailing lists (physical and electronic mail). The coupons will be directed towards customers to encourage continued support and assist sales.

10 Hotline - A specific telephone line will be set up to receive feedback and provide information to customers. HFC s customer service center will be trained to address comments, suggestions, and answer questions. Two new employees will be hired for the internal customer service and support department. Employee testimonial videos - A video producer will be hired to create high quality corporate videos featuring employee interviews that showcase their positive attitudes and behaviors concerning HFC. Employees will discuss their own love of animals and commitment to the welfare of animals. Additionally, the research associate facilities and socialization/enrichment activities will be highlighted. The videos will demonstrate HFC s commitment to its mission statement and values to the customers and PETA while reaffirming them for HFC s employees and shareholders. Meetings with PETA - Quarterly meetings with PETA will be conducted to solicit feedback regarding our research practices. Additionally, meetings will be held with HFC employees and shareholders to update them on the current status of the investigation and express gratitude for their continued support. Meetings will be held as necessary with regulatory authorities to ensure compliance with applicable codes, laws, and regulations. Electronic mail campaign - An electronic mail campaign will be developed to deliver coupons to customers who have signed up via the website, our retail affiliates, or existing contacts in our mailing lists. s will also be sent whenever new information becomes available and direct them to the HFC

11 website location. While coupons will be directed at customers, update s will be directed at customers, PETA, and HFC stakeholders. Social media campaign - A social media campaign will be developed that utilizes Facebook, Twitter, and other sites that provide information about the investigation in a timely manner to a wide range of audiences. These social media channels will provide additional background information about the company, its mission and values. HFC s internal PR department will monitor and interact with stakeholders on these sites by responding to inquiries and soliciting feedback. Surveys - Surveys will be conducted to solicit feedback from customers regarding their trust and perception of HFC. Additional surveys will be conducted to measure the employee morale. The surveys will be conducted every six months beginning with initial surveys in February 2012 to serve as the baselines for future comparison.

12 Question 9 - Additional employees/outside consultants: External research consultants: o Create and distribute surveys, analyze results, interpret results Internal sales department: o Monitor impact on sales, report results CEO: o Act as spokesperson for news conference, media interviews, tours/open houses Internal public relations team: o Writing copy for news releases, the website, and social media o Help coordinate media events and tours/open houses o Interact with stakeholders using social media o Collect feedback and social media statistics, provide analysis and interpretation of reports o Sending out bi-monthly coupons via and standard mail, sending out monthly updates Internal marketing/advertising team: o Work on marketing materials (programs for tours/open houses, coupons, etc.), send to PR Internal customer service and support: o Answer calls on telephone line o Collect feedback from telephone line and s

13 o Provide information to concerned callers and reply to customer s o Report results Internal information technology (IT) department/web masters: o Create special website in regards to claims with a link on main page o Maintaining and updating the website External video producer o Create high quality corporate videos

14 Question 10 - Timeline February 6 th Initial news release 7 th Morning meeting with company (employees and shareholders) 7 th Afternoon news conference 7 th Launch website and social media sites 7 th Open ing list (to sign up for updates, coupons, etc.) 8 th Begin designing and printing coupons 8 th Open line 8 th Begin recruitment process to hire two new customer sales and support employees 8 th, 9 th, 10 th Media interviews 13 th Hire research firm to begin developing and distributing surveys 27 th Distribute surveys to customers and employees March 1 st Meeting with regulators 5 th New customer sales and support employees start date 6 th News release update 6 th Website update 26 th Results and analysis of surveys Month-long:

15 Social media line s Website April 6 th News release update 6 th Website update 6 th HFC update meeting 9 th and mailing list coupons released 9 th Hire video producer to begin developing corporate video Month-long: Social media line s Website May 7 th News release update 7 th News conference with updated investigation results 8 th, 9 th, 10 th Media interviews 14 th Meeting with PETA 21 st Release first corporate video Month-long:

16 Social media line s Website June 4 th News release update 4 th and mailing list coupons released 4 th HFC update meeting Month-long: Social media line s Website July 2 nd Meeting with regulators 2 nd News release update 9 th Begin production of second corporate video 19 th Open house/company tour Month-long: Social media line s

17 Website August 6 th HFC update meeting 6 th News release update 6 th News conference with updated investigation results 6 th - and mailing list coupons released 6 th - Distribute surveys to customers and employees 7 th, 8 th, 9 th Media interviews 20 th Release second corporate video 31 st - Results and analysis of surveys Month-long: Social media line s Website September 3 rd News release update 12 th Meeting with PETA Month-long: Social media line s

18 Website October 1 st News release update 1 st HFC update meeting 1 st and mailing list coupons released 8 th Begin production of third corporate video Month-long: Social media line s Website November 5 th Meeting with regulators 5 th News release update 5 th News conference with updated investigation results 6 th, 7 th, 8 th Media interviews 19 th Release third corporate video Month-long: Social media line s Website

19 December 3 rd HFC update meeting 3 rd News release update 3 rd and mailing list coupons released Month-long: Social media line s Website January 7 th News release update 7 th Distribute surveys to customers and employees 14 th Meeting with PETA 17 th Open house/company tour 31 st Results and analysis of surveys Month-long: Social media line s Website

20 Question 11a Comprehensive Budget Surveys o $10,000 each o Performed for employees and customers at 1 month, 6 month, and 1 year interval = $60,000 Tours and open house o Catering (based on a crowd of 500 people), $15/person = $7,500 o Equipment rental Speakers/microphones/AV = $1,000 Additional tables and chairs = $1,000 Podium = $100 o Flowers, greenery = $1,000 o Invitations for special guests such as large stockholders, board of directors, elected officials, VP s within company, members of the media (approx. 250); $5/each (including postage) = $1,250 o Printed programs, $1/each for 500 people = $500 o $12,350 x 2 tours/open houses = $24, Phone Number o Salaries for two new internal customer service and support employees. Staff of two at $10 an hour, full-time. Year salary each is $20,800 x 2 = $41,600 o Price for phone lines/bills = $10,000

21 Coupons o Print and postage costs = $0.20 per coupon x 50,000 = $10,000 Website o Hire webmaster to maintain site - $50,000/year Corporate video o Hire production team - $10,000 per 5-minute video o Three 5-minute videos - $30,000 Miscellaneous unforeseen expenses o $50,000 Question 11b - Budget Overview Surveys - $60, phone number - $51,600 Website - $50,000 Corporate videos - $30,000 Tours and open houses - $24,700 Coupons - $10,000 Miscellaneous unforeseen expenses - $50,000 Total - $276,300

22 Question 12 - Evaluation: In order to evaluate the success of our campaign to reach our customers, reestablish trust, and regain sales, we will use a variety of methods to evaluate our strategy and tactics. We want to ensure that our tactics meet our stated objectives for each stakeholder group. Evaluation of our tactics is important for two reasons. First, we will be able to determine which tactics were successful so we can use them again. Second, we can identify less successful tactics and modify them or stop deploying them all together. Procedures o Did we meet our objectives? o Analyze media coverage for amount and tone (positive or negative) o Survey results over one year o Sales reports o Amount of coupons claimed o Tour/open house attendance o phone number reports o Website reports o Corporate video amount of views and comment analysis o Social media reports

23 Question 13 - Advice to Upper Management: In order to properly prepare HFC for the current crisis and future crises, the communication department has a number of recommendations for successful, effective communication. If an investigation of the Cutlip Research Center (our research and others research there) has not already been put into motion, we would advise one. This includes any video footage that will need to be investigated for validity regarding when and where it was taken. HFC requires a comprehensive crisis plan that details who the crisis management team will be and where the emergency center and media information centers will be located during the crisis. Additionally, the crisis plan should detail communication procedures: determine our message, identify our spokesperson, messages and tactics for stakeholders, media training for all upper management and employees, and any additional communication procedures. Evaluate the hiring guidelines for all of our facilities, including independent ones such as Cutlip Research Center. Be as open and honest as possible with all stakeholders. Provide timely and accurate information. If we do not have an answer, do not say no comment and instead say that we are investigating or that we will get back to them as soon as we have an answer. Stress HFC s belief and commitment to our mission statement and values.

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