Because of its size and presence in more than 200 countries, the Coca-Cola Company is often the target of anti-globalization protests. Giving examples, show how negative publicity affects global marketers

Question

What will be an ideal response?

Answer 1

A large group of Indian protestors protested against the use of water by Coke in India, where getting water for drinking was a problem. With negative publicity due to vast coverage in news media, the company has to take some reactionary measures. A rapid reaction is necessary to do any damage control. Hyundai and Samsung in South Korea had to face negative publicity when their executives were portrayed for embezzlement or bribery. Coca-Cola and Pepsi had to face negative publicity in India when both companies were alleged to have pesticide residues in their soft drinks. Sales dropped as soon as the news hit the media. Halliburton in the United States also suffered when it was revealed that the company overcharged the U.S. government for supplies and services rendered in Iraq. Ford Motor Company and Bridgestone/Firestone had a tough time defending their relationship when a rash of tire failures occurred in Ford manufactured autos. Ultimately, Ford severed its decades-old relationship with Firestone. Firestone is still recovering from the loss of public confidence. Nike has been continuously responding to the criticism that its subcontractors operate factories in which sweatshop conditions prevail. McDonald's is faced with public concerns due to mad cow disease in Europe; legal battles originating from beef contamination in french fries; links of food to obesity; and some problems with subcontractors. Thus, there are several large companies that have faced problems due to negative publicity. The best thing is to take all precautions and try to prevent any situations which might lead to negative publicity. In case it happens, then they should have a plan to react in a swift and effective manner.