Pepsi-Cola's Dilemma

Many years ago, several reports surfaced stating that syringes and hypodermic needles had been found in Pepsi cans. It was a wicked decision

The problem for Pepsi-Cola's executives-could needles have been put in Pepsi at the canning plants or were the reports a hoax? Information was unclear and fast-changing, time was running out and executives had to find a solution quickly. Clear evidence of danger means recalling the product. But, there was no such evidence. A recall would have been very costly and the company would have lost the trust of customers. Executives after carefully analysing the facts believed syringes could not go into unopened cans of Pepsi. Instead of going for a recall, executives went on a massive public relations and education campaign. Nationwide ad campaigns explained how implausible it was that syringes could have been put into Pepsi cans at the plants. They also assured consumers that there had been no injuries and not a single confirmed case of a needle found in an unopened can of Pepsi. By responding quickly and openly to public fears, Pepsi weathered the syringe-scare crisis with little damage. Pepsi managers made the right decision, believing, based on careful internal analysis, that needles could not possibly have been put into cans of Pepsi at the plants. However, it was a decision that could have backfired, if the company was unable to convince consumers that Pepsi products were truly safe.