Act, But Don't Overreact, Recall Study Advises

Product recalls are the stuff of marketer nightmares, and in today's Web-connected world, the standard PR advice "tell the truth, tell it all, tell it fast" is more valid than ever.

In case you needed confirmation, more than half (55%) of 2,563 adults recently surveyed about food recalls by Harris Interactive said they would temporarily switch brands after a recall and switch back once it was safe, 15% said they would switch brands and never go back to the recalled brand, and 21% said that they would avoid using any brand made by the manufacturer of the recalled brand.

At the same time, companies should bear in mind that consumer awareness levels of various recalls, and impacts on brands, vary significantly, according to results of a Harris Interactive survey of 2,563 adults focusing on six recent product recalls.

For example, only 20% of respondents said they were familiar with this past February's recall of chicken breast cuts and strips caused by Listeria monocytogenes contamination--and among these consumers, only 2% correctly identified Oscar Meyer as one of the brands involved. Under 0.5% correctly identified Louis Rich as the other brand. In fact, 17% named brands other than those involved.

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In contrast, 71% of respondents were familiar with the peanut butter recall caused by a Salmonella outbreak, also in February 2007, and 42% correctly identified Peter Pan as the brand involved.

The pet food recall in March of this year generated the greatest awareness of the six (86%), followed by last September's bagged spinach E. Coli outbreak (84%).

Having a strong, trusted brand that's likely to be given the benefit of the doubt, and a solid crisis management plan, are of course the best defenses when it comes to weathering a recall.

But Harris concludes that the survey findings also underline the wisdom of avoiding panic or over-reaction in favor of an "urgent but measured" response. (And, not surprisingly, suggests that using research to get a rapid, "discreet" read on stakeholders' reactions and hone response messages and channels is not a bad idea.)

Brands might also want to remember that the power of the Internet cuts both ways, as was dramatically demonstrated in the case of Dell's massive laptop battery recall last summer.

Online media broke the story about the danger of batteries causing fires, and generated tremendous pressure on Dell to address the problem quickly. However, Dell's moves to set up a special informational Web site with directions on obtaining replacement batteries, as well as post detailed explanations from Dell executives about the problem and the company's response on its customer service blog, proved its most effective tools for getting the word out and minimizing brand damage.

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