Bindeez Product Recall: 9 Lessons for Crisis Management
“Moose Enterprise has announced an immediate and voluntary Australia-wide recall of its Bindeez Beads toy after being informed that some children who had swallowed the beads required medical attention.
As a precautionary measure, Moose Enterprise has advised parents and caregivers of children to immediately recall the product. The company has warned that if the product has been swallowed, parents should seek immediate medical attention, even if the child does not show any adverse symptoms.
Moose Enterprise CEO Manny Stul says the safety of children is the company’s first priority. To better protect the safety of children who have had or may have contact with the toy, the company has voluntarily recalled the product and is fully cooperating with health and consumer affairs organizations.
The company’s products, which are manufactured by internationally approved toy manufacturers in China, are subject to global standard independent testing. Moose Enterprise has not experienced any security issues with its products since its current management team bought the company six years ago.
The product was immediately withdrawn from sale yesterday and parents can receive a refund by calling toll free 1800 303 895 or emailing [email protected]. More information will be available as soon as possible.”
This was the official statement issued by moose toys on November 7, 2007, one day after they were pulled from shelves.
They can Bindeez recover from your product recall?
The award-winning children’s toy has been recalled because it contains a chemical that becomes a dangerous party drug when metabolized in the body.
Bindeez they are made in China and are reported to contain hundreds of pearls that can cause seizures, drowsiness, or coma if ingested.
It’s a huge blow to the company that has seen tremendous growth since winning the 2007 Australian Toy of the Year award in the Melbourne Toy and Hobby Fair.
The announcement also had an impact on equity markets around the world.
Shares in the UK-listed toy company, group of characters dropped 22 percent after an announcement to customers that it would recall the colored bead toy Bindeez.
The group is registered in A.I.M. Market in London and distributes Bindeez in the UK and Ireland on behalf of the Melbourne-based company moose company.
“Character Group believes that its stock of Bindeez products complies with UK safety regulations.
“However, the group, as a precautionary safety measure, has instructed an independent testing laboratory and an EU toxicologist to immediately test and analyze the chemical composition of representative samples of the group’s Bindeez stock to fully satisfy their safety,” he said. spokesman
group of characters shares fell 43 pence to 146 pence.
This demonstrates that a product recall, even by a vendor, can have a negative impact on stock prices.
It has not been a positive time for toy manufacturers or retailers. Parents may rightly be concerned that between the months of May and July of this year they will select the toy lines that the American giant will market. Mattel they were found to have high levels of lead paint.
A third-party manufacturer in China was found to be at fault, but more than 19 million toys had to be recalled worldwide.
Tea Bindeez the product recall only added fuel to the fire, as these irate parents commented on the media motivators Blog.
“Why do so many companies that manufacture abroad take so little responsibility for the quality of their products?” a father said.
“Why does someone always have to get sick or even die before action is taken? Why do I hear this recall statement over and over again ‘the manufacturer substituted an ingredient without our knowledge’?”
In my opinion final quality testing should always remain with the local distributor/importer and you should batch test your products in Australia to check if they meet local safety requirements.
You are fully responsible for your products.
Please, I beg you, for the sake of our children, review your products before putting them up for sale.”
Another parent also noted, “After having to deal with my daughter’s disappointment over losing one of her favorite toys and unknowingly putting my three young children at risk, there is no way I would risk buying this product again.” “.
“I also have a stack of Bindeez at my place. I no longer have receipts and many of them have been used to “create” works of art. Where do I stand to get my money back?” said another parent.
Media reports suggest that the beads should contain a non-toxic glue, but instead contain the chemical that the body metabolizes into gamma-hydroxy butyrate (GHB), also known as fantasy or serious bodily harm.
All Bindeez the products will be withdrawn from sale and households with the toy have been urged to dispose of it.
What can we learn from this case study?
There are nine actions Bindeez should do now to minimize the risk to his reputation:
1. Compromise and commit
Accept responsibility, don’t blame others, engage with stakeholders, especially consumers.
2. Clear plan
Work to deadlines, resolve differences, and bring any “dirty” or negative action to light.
3. Calm
Company leaders must show trust, caring and certainty in a time of uncertainty.
4. Currency and accuracy
Key messages: focus on human life: showing empathy to those affected, accurate facts and figures, what the company is doing to help and what is the call to action for concerned parents.
5. Control the media
Rehearse to stay on message, no speculation, no “off record,” no “ambushes.”
6. Concise
Disseminate information, do it to the point and in a timely manner.
7. Okay
Set up a crisis team, a crisis center, hold a press conference to make the action a “one to many” communication activity.
8. Connect
Set up distribution and updated lists and publishing information.
9. Right
Evaluate, review and correct if necessary any erroneous information.