Perrier Case Study

Lack of information and coordination

* In 1990, reputation of Perrier was drop due to the Products contain harmful substances which create a danger of product reputation and let to the collapse of US sales. When Perrier found out bottled water was contaminated with benzene, Perrier was voluntarily recalled its entire inventory in the US due to mistakenly used cleaning fluid on a production line.

* However, three days later, Perrier found out 6 months worth of production affected and not only North America but global market. Perrier was struggles to turn a profit after benzene problem but failed. In 2004, Perrier again recorded a loss due to the lack of information to change.

* Perrier was lacked of sufficient information to define its benzene problem in the first time as Perrier though its spokespeople has tried to convince the public. Mixed messages had been given with contradictory and conflicting statements emerging from different division of the company.

* Besides that, the media also were given incorrect information. Therefore, Perrier made a bad situation worse and failed to tackle the global implication of the crisis. Media also found out about the problem Perrier did not properly apply communication, external relationships tasks and monitoring benzene crisis and acted in reactive manner due to panic and lack of information.

* Additionally, there was lack of coherent and consistent response from Perrier subsidiaries and no lead and coordination from the French company source Perrier towards the benzene case.

* Understanding the problem in the right step for communication are very important in dealing with a crisis as it will causes lack of success for Perrier to gainer positive status.