Matrixx Initiatives, maker of 19 Zicam-branded products that tackle colds, coughs and allergies, is in the midst of a public relations nightmare. Last week, the FDA advised the public to discontinue use of over-the-counter Zicam Cold Remedy Nasal Gel and Zicam Cold Remedy Gel Swabs. The FDA warns that 130 users of the products reported anosmia (loss of the sense of smell). The warning is particularly intriguing since Matrixx paid $12 million in a 2006 settlement to more than 300 Zicam users who made the same claim.
An FDA warning to discontinue use of a company’s product is normally a shot through the heart, but Matrixx is playing this hand of crisis management very well. After all, Matrixx’s Zicam brand has broad shoulders with almost 20 products bearing that name.
Matrixx’s first good move is not picking a fight with a very well-regarded government entity. The FDA’s credibility far surpasses that of any private company. So Matrixx, which claims it was surprised by the FDA’s announcement, says it wants to work with the agency, including sharing its 10 years of scientific data on the products. Rather than taking on city hall right now, Matrixx is simply saying it disagrees with the FDA and wants to show them the facts. That’s a good start.
Then Matrixx pulls the two Zicam products in question off the shelves and offers consumers full refunds. The FDA does not have the authority to recall Zicam, but Matrixx does so demonstrating goodwill for public safety.
In addition to the company’s use of traditional PR blitzes on the airwaves and next day-full page ads in newspapers like USA Today; Matrixx is also handling this crisis with social media. The Zicam PR team updates followers on Twitter and provides its over 400 friends on Facebook with key information about the recall.
Matrixx has also overhauled the Zicam Web site with a video message from their CEO, wearing a button down shirt minus the jacket and tie, fully disclosing the FDA warning and telling their side of the story. The Web site also contains a frequently asked questions section about the warning and recall and also includes testimonials from customers who rely on Zicam for everyday living.
Matrixx is not pulling a David Letterman during the Sarah Palin battle of earlier this month and allowing two days to pass before addressing the issue. The company is proactively protecting its brand and company credibility, to the best of its ability, during this very public set back.
Crisis management starts immediately, assesses how to be credible to the public, is truthful and leverages all available communications channels.
