
Expanding Grocery Chain Encounters Union Opposition
Situation overview:
One of the largest non-union grocery chains in the country made plans to enter new territory, only to be confronted with organized opposition from The United Food & Commercial Workers' Union. The union used smear attacks to try to damage the company's reputation in the market, revealing a need for proactive crisis communications to protect the grocery chain's brand moving forward.
PROI member Role:
A PROI Worldwide Americas Crisis Group partner developed a crisis strategy for the client that involved:
- Interviewing top executives at the client's headquarters to determine the company's needs, capabilities and potential vulnerabilities;
- Developing a comprehensive issues management plan that included more than 90 specific crisis scenarios;
- Pitching proactive news stories to counter the inevitable attacks in the new market;
- Conducting media training with company executives;
- Writing a White Paper on union corporate campaigns; and
- Creating a strategic philanthropic plan to reinforce the company's mission and positioning.
Results:
Despite the union spending close to $5 million on a campaign to damage the grocery chain's reputation, its market share continues to steadily climb. Eight years after entering the market, the chain had 25 percent market share; after two decades the chain earned the top market position. Industry analysts called the client's growth "remarkable." Today the grocery chain is recognized as a favorite retailer in independent market polls, is recognized on national "most admired company" lists, and continues to expand into new geographic markets.