L'Oreal crisis scenario (2006)

Résumé du document

This summary has been provided to allow top managers and executives at L'Oreal a rapid appreciation of the content of this report. Those with a particular interest in the crisis scenario management and communication may read the report to take advantage of the more comprehensive description of potential crisis both at macro and micro level and the ways the defect product crisis scenario was dealt with to get the full benefits of the material present. L'Oreal is a worldwide leader in the cosmetics industry. It is a publicly traded company that operates through four divisions: professional products, consumer products, luxury products, and active cosmetics. Its main mission statement is "the effectiveness of our products is built on in-depth research that reflects our dedication to innovation, safety and the highest standards of reliability. By assessing potential threats at the macro level, marketers at L'Oreal have become increasingly alert of the possible danger of a crisis. The major ones are stated here, for a full review; please refer to the details in the report. There is still to this date increasingly links from top managers being supporters of very right-wing supporters and evolving L'Oreal in discriminatory practices. Also, the presence of harmful ingredients or product failure in cosmetics can lead to serious health consequences.

Extraits

[...] L'Oreal is striving for Excellence Perfection is our goal. We are determined to continue enhancing or brand portfolio with innovative products and to meet the most demanding standards of quality and product safety at all times. L'Oreal is passionate for Adventure Our expertise drives our passion for new discoveries and innovation in cosmetics. Each new achievement - each step forward - is in itself a new beginning. L'Oreal values Individual Talent Just as we are dedicated to enhancing the well-being of our consumers, we also make it a priority to ensure that each employee has the opportunity to develop his or her potential through personal and professional growth. [...]

[...] The different strategies to communicate with stakeholders in crisis situation can be listed as follows (from Coombs[8] 1995 & Coombs[9], 1999): The Non-existence strategy attempts to eliminate the crisis by denying the crisis and developing an aggressive and intimidating strategy. The Distance strategy aims at making weak the direct link between the company and the crisis. It recognizes the crisis but minimizes or even denies any company's responsibilities. The crisis is not considered as serious and so nor the victims state. [...]

[...] I'm very excited to be part of this campaign, which is modern and fashion forward." Thank you Scarlett, and now, let's watch in exclusivity tonight the New Feria commercial. www.loreal.com L'Oreal Annual Report 2005 Post, Preston & Sachs (2002) „Redifining the Corporation-Stakeholders Management & Organizational Wealth“ Ray, S. J. (1999). “Strategic communication in crisis management lessons from the airline industry.” Westport, CT: Quorum. Bland, M. (1998). Communicating out of a crisis. [...]

[...] The riverside motorways will be shut, no employees will be able to reach the premises and work on “hands projects as well as day-to-day activities. The supply chain will be disrupted as the power will be knocked out, water, heating/cooling systems to finally breakdown, L'Oreal will not fill in contract conditions with clients which will benefit to the competition, having high repercussion on activity as well as on the stock market. Indeed, indirectly, other distributors could be affected by it. [...]

[...] Our legal department was in contact with 60 millions de consummators. Message: Even though internal investigation has not established any clear and positive result, all efforts are taken to service customer care and take all necessary actions to remedy the problem in a timely and cost effective manner. Key message: Even to-day, our prime concern is to take all products out of the market to assure public safety. Please refer to appendix II 15 January 2007 The company, in hand with a state-owned health association external, discovered that the source of the problem is link to reaction to heat and that all the complaints originated in the southern part of France (Marseille- Toulouse Nice Biarritz Hossegor) January 2007: Recovery - marking the end of the crisis After L'Oreal discovered the problem through an intensive investigation, the team decided to immediately hold a press conference to communicate the issues with the press and public. [...]