Odwalla Memo Essay Example
Odwalla Memo Essay Example

Odwalla Memo Essay Example

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  • Pages: 3 (639 words)
  • Published: October 3, 2017
  • Type: Article
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Odwalla, Inc. , a health-conscious juice producer, must confront implications that its apple juice product is contaminated and has possibly caused several outbreaks of the E. coli virus. It is a truly unfortunate situation when product contaminations occur and especially inopportune when customers experience sickness as a result.

These situations can destroy customer confidence; however, a properly executed communication strategy will allow Odwalla to maintain relationships with consumers, save the brand value, and preserve consumer loyalty.

Facts of the Case

  • Odwalla, Inc. , a company worth nearly $400 million, has grown steadily with annual sales rising to $59 million in 1996
  • Approximately 66 people report sickness and 1 child dies as a result of consuming Odwalla juice products.
  • On October 30, 1996, the Washington State Department of Health informs Odwalla, Inc. bout a possible link between the Odwalla a
    ...

    pple juice products and several cases of E. coli Critical Issues Among Odwalla’s most significant assets are its’ strong customer loyalty and brand recognition for offering “all natural” juice products.

    Because the company’s core competence centers on the all natural production process and the idea of “nourishing the body whole”, it is perceived to offer a high quality product. Therefore, the perception that Odwalla is distributing contaminated juice products into the marketplace could cause much consumer distress and negative impact on the brand image.

    The situation at hand is directly related to the exponential rate in which Odwalla has grown throughout the years. The focus on quality has been replaced with an emphasis on quantity, leaving the production process susceptible to contamination. Odwalla should refocus efforts on product and production quality and possibly reevaluate its’ position on pasteurization. In order t

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maintain consumer confidence and public opinion, Odwalla must take appropriate measures to ensure consumers that this unfortunate situation is an isolated incident.

Addressing Contaminated Juice ProductsSeptember 4, 2008 Page 2 of 2 Plan of Action: Mr. Williamson, as a representative of Odwalla, must quickly and accurately respond to the connection between Odwalla fresh apple juice and the E. coli viral incidents brought forward by the Washington State Department of Health. In order to address this issue in the most comprehensive manner, a strategic plan must include:

Strategy for External Communications

  • Instigate an immediate recall of all Odwalla products in order to avoid future incidents and accurately address the contamination
  • Issue a press release and hold a press conference to publically take responsibility and express grave concern for the illnesses and death caused by consumption of Odwalla products.
  • Offer to cover medical expenses and other intangible expenses related to health concerns for the victims and their families
  • Attend all solicited interviews - answer all questions about contamination incidents and address strategic solutions
  • Develop a website to outline details of the incident, offer specific dates and times of press conferences and address a tactical plan of action
  • Focus efforts on maintaining the quality standard in the production of products which will serve to reinforce the brand image and customer loyalty

Strategy for Internal Communications.

  1. Hold company-wide press conferences to inform employees about strategic solutions to cure contamination and assure them that similar incidents will not occur in the future
  2. Deliver all current and relevant information to company employees via email or phone conferences to mediate public response and prevent the circulation of company-wide gossip
  3. Reinforce company moral and assure employees

that the brand image will not be tainted

  • Recognize and restore Odwalla’s core competence of “nourishing the body whole” This crisis management plan is crucial to the company's survival.
  • Odwalla must honestly and accurately answer all questions concerning these health incidents while maintaining public responsibility and sincere apologies to the victims, their families and all Odwalla consumers.

    If this plan is enacted and maintained, Odwalla should be able to retain their perceived quality standard, brand image and customer loyalty in the marketplace.

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