Crisis Communication

1. Crisis Communication Public Relations Case Studies Group 6 Andrea Jensen, Brian Kearney, Tyler Mulvey, James Roh, Lisa Santeramo, Jaclyn Tellefsen

2. background • CEO of Barilla Group is Claudio Colzani • Established in 1877 as bread and pasta shop in Parma, Italy • Barilla leads global pasta business, pasta sauce business in continental Europe, bakery product business in Italy, and crisp bread business in Scandinavia

3. background • Managed over 130 years by one family’s entrepreneurial experiences • Includes fourth-generation siblings on Board of Directors: Guido, Luca, Paolo and Emanuela Barilla • Barilla exports to more than 100 countries • It is recognized worldwide as symbol of Italian know-how by respecting its longstanding traditional principles and values • Considers employees as fundamental asset and developing leading-edge production systems • Barilla is one of Italy’s biggest advertisers • Used image of a happy family living in an idealized version of the Italian countryside with slogan: “Where there’s Barilla, there’s home.”

4. “We have a slightly different culture,” Barilla said, “For us, the ‘sacral family’ remains one of the company’s core values. Our family is a traditional family. If gays like our pasta and our advertisings, they will eat our pasta; if they don’t like that, they will eat someone else’s pasta. You can’t always please everyone not to displease anyone. I would not do a commercial with a homosexual family, not for lack of respect toward homosexuals – who have the right to do whatever they want without disturbing others – but because I don’t agree with them, and I think we want to talk to traditional families. The women are crucial in this.” “I respect same-sex marriage because that concerns people who want to contract marriage, but I absolutely don’t respect adoptions in gay families, because that concerns a person who is not the people who decide,” he added.

5. overview • Barilla must implement numerous tactical solutions to: • Address immediate crisis • Increase confidence in brand • Avoid further damage • Build foundation for long term restoration • Develop corporate social responsibility • Develop philanthropic approaches to repair damage

6. Overview • Barilla implemented more inclusive TV campaign • Created multifaceted plan to embrace diversity • Introducing “Diversity & Inclusion Board” and Global Diversity Officer • Participating in Human Rights Campaign’s Corporate Equality Index • Global Twitter and Facebook apology statement • Exclusive video apology from Guido Barilla • Guido Barilla meeting with LGBTQIA activists • Global online short-video contest representingthe multifaceted nature of pasta

7. overview • Barilla will partner with outside agency specializing in issue management • Prevent flooding of negative messages and feedback on social media • Chairman, Guido Barilla to undergo media training to avoid additional damage • Educate Chairman, Guido Barilla about LGBTQIA communities and same-sex marriages • Announce partnership with GLSEN • Offer employee benefits to same-sex couples • Up-to-date inclusive projects and website media center

8. Secondary research • Other cases related to Barilla: • Abercrombie and Fitch • Wouldn’t sell larger sizes in women’s clothing • CEO Mike Jeffries said “only cool kids” should wear A&F • Chick-Fil-A • Against same-sex marriage; donated to anti-gay organizations • Urban Outfitters • Multiple controversies stemming from teenage drinking, negative body image, supporting anti-gay rights, and upsetting a variety of ethnicities. • Removal of items in stores and consumer boycotts resulted in negative PR.

9. SEcondary research

10. Secondary research

11. Primary research • Global quantitative studies to determine best communication channel for each audience segment • Research global LGBTQIA organizations that have strong influence over public • Global qualitative studies with audience segments to uncover effective ways for brand restoration • Global qualitative studies with boycotters to gain insight

12. Immediate issues Guido Barilla’s anti-gay remarks: Guido Barilla’s statement about being against adoption in gay families Guido Barilla refuses to advertise gay couples or families Barilla brand faces global boycotts 12

13. Additional issues • Barilla brand is now thought of as anti-gay company • Embarrassed employees fear job loss • Decrease in trust, confidence, and loyalty in the brand • Outraged publics display Barilla in negative light via social media

14. audiences Primary Target Secondary Target Media Youth Partnerships Key opinion leaders • LGBTQIA community • Boycotters • Non-traditional families • Global consumers • Barilla employees

15. Audience identification wheel InternalExternal • Barilla Employees • LGBTQIA community • Non-traditional families • Boycotters • Global consumers IntermediarySpecial • Key opinion leaders • Youth • Media • GLSEN • Other partnerships

16. Audience ranking chart Must Influence Should Influence Likely to Influence Unlikely to Influence Maximum PR Effort Significant PR Effort

17. Mac triad Audience Message Channel

18. issue: CEO’s Anti-Gay Remarks • Objective 1.0: Decrease negative conversations among public and media by 35% by January 2014 (3 months). • 1.1 Monitor public and media conversations surrounding Barilla brand • 1.1.1 Partner with outside agency (Edelman PR) specializing in issue management to monitor global online conversations and respond to negative conversation that gain traction • 1.1.2 Temporarily disable Facebook wall comment option on all global brand pages to prevent flooding of negative comments

19. issue: CEO’s Anti-Gay Remarks • 1.2 Show the company is sorry and prepare for future backlash • 1.2.1 Have Chairman Guido Barilla, CEO, and other Board members go through media training to prevent additional damage through communication • 1.2.2 Announce immediate partnership with GLSEN (Gay, Lesbian and Straight Education Network) • 1.2.3 Create an apology video with emotional appeal • 1.2.4 Create apology statements and push out through social media, global brand websites and media outreach

20. issue: barilla now viewed as anti-gay company • Objective 2.0: Increase positive customer perception of the Barilla brand by 65% by October 2014. • 2.1 Initiate philanthropic/corporate social responsibility activities • 2.1.1 Donate to international food banks • 2.1.2 Team up with organizations like Hunger Relief International to address child malnutrition across the globe • 2.1.3 Form Diversity and Inclusion board to establish strategies for improving workforce and culture with regards to sexual orientation, gender balance, diversity rights and multicultural and intergenerational issues • 2.1.4 Partner with international orphanage organizations such as International Orphan Care or the Amala Foundation to help in their mission of providing homes for orphans around the world

21. issue: barilla now viewed as anti-gay company • 2.2 Plan and execute integrated marketing campaign to restore customer loyalty • 2.2.1 Designate a media center portion of website that contains most up-to-date materials on crisis and what is being done to win back favorable opinion • 2.2.2 “The Pastabilities are Endless” contest inviting all customers to create their most creative dish with Barilla pasta. The proceeds will be donated to GLAAD (Gay and Lesbian Alliance Against Defamation) • 2.2.3 Inclusive advertising campaign showing non-traditional families • 2.2.4 Partner with “It Gets Better” campaign to help with initiatives for LGBTQIA youth

22. issue: barilla now viewed as anti-gay company • 2.3 Position Guido Barilla as an individual willing to learn about same-sex marriage and families • 2.3.1 Stage public appearances with Guido and well-known same-sex couples and kids to alert the press • 2.3.2 Invite key opinion leaders to dinner with Barilla Board of Directors and/or Chairman Guido Barilla alerting the media ahead of time

23. Key opinion leaders • France • Rama Yade • Emma Watson • Italy • Franco Grillini • Vladimir Luxuria • United Kingdom • Sir Ian McKellen • Michael Steed • Chris Smith • Sir Elton John • USA • Ellen DeGeneres • Anderson Cooper

24. issue: embarrassed employees fear job loss • Objective 3.0: Improve employee morale by 75% by April 2014. • 3.1 Reassure employees that the company will repair its image • 3.1.1 Extend marriage benefits to the spouses of same-sex employees, even if pair lives in state where gay marriage isn’t legal • 3.1.2 Implement advisory board in the company that will improve diversity and equality in work force and culture • 3.1.3 Keep employees up-to-date with inclusive project

25. BUDGET

26. results • Objective 1.0: Decrease negative conversations among public and media by 35% by January 2014 (3 months). • Not Met • Negative conversations among public and media decreased by 10% by January 2014. • Apology perceived as insincere.

27. results • Objective 2.0: Increase positive customer perception of the Barilla brand by 65% by October 2014. • Not Met • Positive customer perceptions of the Barilla brand increased to 52% by October 2014.

28. results • Objective 3.0: Improve employee morale by 75% by April 2014. • Met • Employee morale increased by 81% by April 2014. • Marriage benefits show Barilla’s moves are legitimate and not made for public perception.

29. Potter model • Barilla pasta, established in 1877 as a bread and pasta shop in Parma, Italy, leads global pasta business. The company, managed for over 130 years by one family’s entrepreneurial experience, exports to more than 100 countries. Chairman of Barilla Group, Guido Barilla, made anti-gay comments saying, “I would never do (a commercial) with a homosexual family, not for lack of respect but because we don’t agree with them. Ours is a classic family where the woman plays a fundamental role.” • Question: Is it ethical for a company to support a viewpoint for the sake for business?

30. Potter model:is it ethical for a company to support a viewpoint for the sake of business? Definition Loyalties Values Principles

31. Potter modelis it ethical for a company to support a viewpoint for the sake of business? • Decision: • Yes: It is ethical to support a viewpoint for the sake of business. • Supporting a viewpoint popular with the public results in increased sales and a favorable opinion among the public.

32. conclusion • We pulled from personal and professional experiences to implement most effective strategies and tactics • Examined numerous case studies across various industries that experienced a crisis and noted what worked best and what didn’t • We implemented realistic and creative ideas to convey our messages to separate audiences through our short-term and long-term objectives

33. Resources • Huffington Post • Washington Post • Barilla Website • Barilla Group Website • ABC News • NY Times

34. Thank you Pasta la vista!