Greenpeace Indonesia
Witnessing nearly a 12% fall in YUM! stock price since its April peak at $74, Localspeak was prompted to run a NetBase Insight Composer summary analysis to determine whether YUM!'s KFC crisis mitigation showed signs of reversing its 30-day -30% net sentiment. In doing so we found 1 million impressions generated for the Greenpeace KFC/Indonesia campaign, which are reflected below in the KFC attributes chart.
KFC's association with packaging supplier Asia Pulp and Paper and the supplier's continued use of rain-forest wood in packaging have become detrimental issues, similar to what happened with Mattel and its packaging of "Barbie," as we reported last year. In conducting independent tests of the trademark KFC Chicken buckets, Greenpeace indeed found fibers from tropical hardwood trees. KFC packaging tests in China revealed half of these materials contained rainforest fibers, contributing to the further destruction of the endangered Sumatran tiger habitat, which is protected under international conservation programs. Other Greenpeace forensics on YUM! food packaging in the UK revealed that seven out of 10 food boxes contained forest fibers.
To retain brand image global companies increasingly are aware of the critical role an institutional social media listening strategy plan plays in forging a responsive and adaptive consumer-centric corporate culture. Several brands have learned this, albeit in hindsight-Netflix and JetBlue, for example-proving that remaining silent in the heat of brand crisis often proves to be the devil in disguise.
The chart below suggests what sources YUM! should be listening and responding to: nearly 34% of the conversations took place on Facebook, another 34% on Twitter and blogs, respectively. Our global geographic analysis shows 29% of the buzz coming from the UK and 14% from the U.S. A U.S. analysis of distribution shows 29 % of these social conversations taking place in California, another 14% in New York. These statistics suggest that a consumer engagement strategy should, if not must be put in place.
An in-depth social media analysis of YUM!, no doubt, would reveal root cause leading to the decline in its stock value. We're certain it would also contribute to the company's Corporation Communications, PR and/or Marketing team crafting a new, or refining its existing mitigation policy. The Greenpeace campaign effectively impacted Mattel's "Barbie" packaging policy, but the jury is still out on YUM! Brands and its corporate sustainability policy. KFC claims that 60% of their global packaging is derived from sustainable sources.
We filtered our NetBase social search for the Greenpeace campaign in order to generate consumer emotional response and predictive consumer behavior for KFC and YUM! Brands. A recommended strategy for Corporate Communications and PR also would be to digest expression of intended consumer behavior to determine root cause, so as to craft a socially responsible reply to consumer outrage.
Today more and more non-profits and NGOs around the world are developing creative social content marketing and constituent engagement campaigns. As noted, Greenpeace wages high profile social campaigns, witnessed by the Mattel packaging drive and now with the Greenpeace Indonesia KFC movement.
KFC's credibility is on the line. Despite independent forensics of the brand's packaging, YUM! Brands has not been forthcoming in establishing brand transparency and authenticity-an imperative today in our socially engaged world. This post reflects UK consumer rage:
KFC has been caught red handed with packaging made from rainforest trees. And yet KFC UK claims that its packaging is "100% sustainable or recycled!!!!!!!!!"