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Nestle social media

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Abderezak Ali Abdurehman
Abderezak Ali Abdurehman

The document analyzes a social media controversy involving Nestle's Facebook page. It provides background on Nestle and discusses their initial plunge into social media. It then analyzes the incident where Greenpeace criticized Nestle for deforestation and Nestle's poor handling of the negative feedback. This included deleting comments and being condescending. The document concludes Nestle made mistakes in their social media response and recommends having crisis plans and loose moderation guidelines for the future.

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Prepared by: 1. Abderezak Ali
Inside this case Executive summary of the case Theory on business environment Introduction to Nestle Analysis of the case The Incident Conclusion And recommendation
Executive Summary The case seeks to examine the Nestle experience with respect to social media controversy in their facebook page The first section introduces Nestle and some theories regarding business environment The second section builds up on the critical analysis of the incidents that led to the controversy The last section concludes by explaining the lessons obtained from the case and recommending various ways on which similar cases can be handled and adapted
Business Environment Business Environment: refers to all external forces which have a bearing on the function of business. The business environment poses threats to a firm or offers immense opportunity for potential market exploitation Business environment can be studied at different sub categories including economic, political, technological, natural, global and sociological
Sociological Environment It refers to peoples attitude to work and wealth, role of family, marriage, religion, race, cast, education, ethical issues, and social responsiveness of business This case shows the reaction of people to an organization which seems not responsible for the environment protection i.e. deforestation. So the next slide will tell us about Nestl辿
Source: Nestl辿 website Company origins Henri Nestl辿, born in 1814, began with developing a formula for babies whose mothers couldnt breastfeed After a series of acquisitions and merges, a company emerged by the name Nestl辿 and Anglo-Swiss Milk Company in 1905 (Nestl辿, n.d.) The company expanded rapidly during World War I due to high demand, even though resources were scarce By war's end, the Company had 40 factories, and its world production had more than doubled since 1914 Now, Nestl辿 employees over 280, 000 people and has a facility in almost every country.
Plunging Into Social Media Nestl辿 decided to reach out into the new trend of social media roughly around the beginning of August 2006 Their first post on Facebook was: Nestle I'm on the page as well, viewing from Vevey . January 21, 2009 at 3:17am
Analysis of The Incident On March 17th Greenpeace, an organization devoted to environmental protection, posted a video on YouTube in protest of Nestl辿 's workings with a company that was involved in deforestation in Indonesia. Nestl辿 was quick to respond by demanding the video be taken down since it infringed on copyright laws. YouTube complied as it agreed with Nestl辿. Greenpeace angry at this attempt to stop them they started attacking Nestl辿s Facebook page
For More read http://tinyurl.com/nestlepalmoil. Analysis of In response Nestl辿 wrote the following Nestl辿 and palmoil: we're concerned. We announced our commitment to using only Certified Sustainable Palm Oil by 2015. We have accelerated investigation of palm oil supplies to identify any unsustainable palm oil. Given our uncompromising food safety standards, we have done this in a deliberate manner as we use palm oil for food and not soap or other personal care products.
Analysis of This was a good move responding as quickly as they could but the beginnings of social media misuse A Customer Adrian Peters responded So is it true that you're still buying unsustainable palm oil as Mr Woolley points out? Also '...by 2015, ' in five years a lot of irreplaceable forest could be wiped out by then. Simply put Kit Kats bear no importance to life compared to ancient endangered forests, which is more important in reality? Surely you can use other less damaging oils instead of palm oil. No? March 17, 2010 at 12:40pm
Analysis of Nestl辿s response I suppose I could repeat 'as fast as food safety allows and then you could repeat your post. 2015 is the year that many industrial users of palm oil are aiming at to have fully switched to sustainable palm oil. March 17, 2010 at 1:10pm Another customer Dawn Camp wrote tsk tsk tsk.... state a fact and don't get testy when it's a business related site March 17, 2010 at 1:26pm
For more read http://tinyurl.com/nestlepalmoil. Analysis of More and more negative responses and use of an altered version of Nestl辿 by customers Nestl辿 wrote the following in response We welcome all comments, but please don't post using an altered version of our logo as your profile pic. And please read our statement to answer many questions. March 18, 2010 at 8:11pm But people still continue using the altered version of Nestl辿 logo as their profile photo
Analysis of The extreme point of the fiasco was this comment by Nestl辿 To repeat: we welcome your comments, but please don't post using an altered version of any of our logos as your profile pic - they will be deleted. March 19, 2010 at 2:26am The attempt of controlling peoples comments caused a tremendous uproar.
Analysis of The previous postings had gotten around 25 comments but this one had well over 150 comments within a matter of hours It was this post that Nestl辿 began deleting the replies made by the irate people and started arguing directly with them instead of posting general announcements. This resulted in the loss of many customers and a decrease in the sales of its product aligned with a lot of bad comments in its facebook, twitter , Youtube and other accounts
Analysis of Nestl辿 soon realized that they were making matters worse and about 12 hours after their original post they made a public apology. This (deleting logos) was one in a series of mistakes for which I would like to apologies. And for being rude. We've stopped deleting posts, and I have stopped being rude. March 19, 2010 at 2:26am
Analysis of Nestl辿 made several posts about their new policies regarding deforestation and sustainable palm oil plan for 2015. People kept posting negative comments but it was now mixed a little with people commending Nestl辿 for their move. They next tried writing a letter to Greenpeace to appease their people but this too was met with great resistance Finally, they attempted to go back to their routine post on their activities abroad.
Conclusion Admit mistakes on time: If there is a problem and you know it, you might as well as readily admit to it. NEVER be condescending towards a commenter: dont try to give lectures to commenter's You dont make the rules in social media: Accept that by choosing the medium, you choose to talk to the consumer as an equal. Always have a plan: Having a crisis management plan in place that can be deployed online at the first hint of trouble is of utmost importance.
Recommendation To have somewhat loosely structured rules, as guidelines for the employees that were responding to peoples comments To expect both positive and negative comment To use a media that better suits with needs Diverting the attention of customers was a good move by Nestl辿 to settle such kind of social fiasco To control their own responses in future so as to prevent another fiasco.
Questions?? The group welcomes any suggestions, questions

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Nestle social media

  • 1. Prepared by: 1. Abderezak Ali
  • 2. Inside this case Executive summary of the case Theory on business environment Introduction to Nestle Analysis of the case The Incident Conclusion And recommendation
  • 3. Executive Summary The case seeks to examine the Nestle experience with respect to social media controversy in their facebook page The first section introduces Nestle and some theories regarding business environment The second section builds up on the critical analysis of the incidents that led to the controversy The last section concludes by explaining the lessons obtained from the case and recommending various ways on which similar cases can be handled and adapted
  • 4. Business Environment Business Environment: refers to all external forces which have a bearing on the function of business. The business environment poses threats to a firm or offers immense opportunity for potential market exploitation Business environment can be studied at different sub categories including economic, political, technological, natural, global and sociological
  • 5. Sociological Environment It refers to peoples attitude to work and wealth, role of family, marriage, religion, race, cast, education, ethical issues, and social responsiveness of business This case shows the reaction of people to an organization which seems not responsible for the environment protection i.e. deforestation. So the next slide will tell us about Nestl辿
  • 6. Source: Nestl辿 website Company origins Henri Nestl辿, born in 1814, began with developing a formula for babies whose mothers couldnt breastfeed After a series of acquisitions and merges, a company emerged by the name Nestl辿 and Anglo-Swiss Milk Company in 1905 (Nestl辿, n.d.) The company expanded rapidly during World War I due to high demand, even though resources were scarce By war's end, the Company had 40 factories, and its world production had more than doubled since 1914 Now, Nestl辿 employees over 280, 000 people and has a facility in almost every country.
  • 7. Plunging Into Social Media Nestl辿 decided to reach out into the new trend of social media roughly around the beginning of August 2006 Their first post on Facebook was: Nestle I'm on the page as well, viewing from Vevey . January 21, 2009 at 3:17am
  • 8. Analysis of The Incident On March 17th Greenpeace, an organization devoted to environmental protection, posted a video on YouTube in protest of Nestl辿 's workings with a company that was involved in deforestation in Indonesia. Nestl辿 was quick to respond by demanding the video be taken down since it infringed on copyright laws. YouTube complied as it agreed with Nestl辿. Greenpeace angry at this attempt to stop them they started attacking Nestl辿s Facebook page
  • 9. For More read http://tinyurl.com/nestlepalmoil. Analysis of In response Nestl辿 wrote the following Nestl辿 and palmoil: we're concerned. We announced our commitment to using only Certified Sustainable Palm Oil by 2015. We have accelerated investigation of palm oil supplies to identify any unsustainable palm oil. Given our uncompromising food safety standards, we have done this in a deliberate manner as we use palm oil for food and not soap or other personal care products.
  • 10. Analysis of This was a good move responding as quickly as they could but the beginnings of social media misuse A Customer Adrian Peters responded So is it true that you're still buying unsustainable palm oil as Mr Woolley points out? Also '...by 2015, ' in five years a lot of irreplaceable forest could be wiped out by then. Simply put Kit Kats bear no importance to life compared to ancient endangered forests, which is more important in reality? Surely you can use other less damaging oils instead of palm oil. No? March 17, 2010 at 12:40pm
  • 11. Analysis of Nestl辿s response I suppose I could repeat 'as fast as food safety allows and then you could repeat your post. 2015 is the year that many industrial users of palm oil are aiming at to have fully switched to sustainable palm oil. March 17, 2010 at 1:10pm Another customer Dawn Camp wrote tsk tsk tsk.... state a fact and don't get testy when it's a business related site March 17, 2010 at 1:26pm
  • 12. For more read http://tinyurl.com/nestlepalmoil. Analysis of More and more negative responses and use of an altered version of Nestl辿 by customers Nestl辿 wrote the following in response We welcome all comments, but please don't post using an altered version of our logo as your profile pic. And please read our statement to answer many questions. March 18, 2010 at 8:11pm But people still continue using the altered version of Nestl辿 logo as their profile photo
  • 13. Analysis of The extreme point of the fiasco was this comment by Nestl辿 To repeat: we welcome your comments, but please don't post using an altered version of any of our logos as your profile pic - they will be deleted. March 19, 2010 at 2:26am The attempt of controlling peoples comments caused a tremendous uproar.
  • 14. Analysis of The previous postings had gotten around 25 comments but this one had well over 150 comments within a matter of hours It was this post that Nestl辿 began deleting the replies made by the irate people and started arguing directly with them instead of posting general announcements. This resulted in the loss of many customers and a decrease in the sales of its product aligned with a lot of bad comments in its facebook, twitter , Youtube and other accounts
  • 15. Analysis of Nestl辿 soon realized that they were making matters worse and about 12 hours after their original post they made a public apology. This (deleting logos) was one in a series of mistakes for which I would like to apologies. And for being rude. We've stopped deleting posts, and I have stopped being rude. March 19, 2010 at 2:26am
  • 16. Analysis of Nestl辿 made several posts about their new policies regarding deforestation and sustainable palm oil plan for 2015. People kept posting negative comments but it was now mixed a little with people commending Nestl辿 for their move. They next tried writing a letter to Greenpeace to appease their people but this too was met with great resistance Finally, they attempted to go back to their routine post on their activities abroad.
  • 17. Conclusion Admit mistakes on time: If there is a problem and you know it, you might as well as readily admit to it. NEVER be condescending towards a commenter: dont try to give lectures to commenter's You dont make the rules in social media: Accept that by choosing the medium, you choose to talk to the consumer as an equal. Always have a plan: Having a crisis management plan in place that can be deployed online at the first hint of trouble is of utmost importance.
  • 18. Recommendation To have somewhat loosely structured rules, as guidelines for the employees that were responding to peoples comments To expect both positive and negative comment To use a media that better suits with needs Diverting the attention of customers was a good move by Nestl辿 to settle such kind of social fiasco To control their own responses in future so as to prevent another fiasco.
  • 19. Questions?? The group welcomes any suggestions, questions