Top >> Crisis__Issues_Management Opinion: PR - a key ingredient as the Complementary Medicines Recall issue unfolds published May 2003 Grant has 30 years direct experience in public relations and communication in Australia and New Zealand - as well as directing and managing programs in the UK and USA. He has consulted to Governments, publicly listed companies, industry bodies, marketing organisations, multinationals and not-for-profit organisations. He is Managing Director of Sydney-based Network Communications and principal of Comsult Communication Design, a consultancy specialising in the emerging management discipline that focuses on how organisations internally plan, structure and organise their communication. As a Fellow of the Australian Institute of Company Directors (having completed the Company Directors Diploma examination) he is also one of the few PR practitioners to have the perspective of the company director. If you want to see evidence of PR working in commerce watch the complementary medicines industry and the parties involved in the TGA/Pan Pharmaceuticals recall over coming months. There will be few winners from this sorry saga. Everyone involved in any significant way faces immense challenges. When the dust settles this has the potential to rival HIH or OneTel for armchair viewing. However not only have the key participants to date used PR, it will be a key tool for all involved after the dust settles and the future challenges have to be faced. Clearly Pan had no crisis or media mechanisms in place as evidenced by various executives and directors speaking on an ad hoc basis to the media. Indeed, one gets the impression that they had little knowledge of PR as the one discipline that could contain the issue. As well, they committed the cardinal sin in a crisis of not saying SORRY early and often. External PR help was bought in some 36 hours after the initial announcement. The agency involved faces an unenviable task, but it has been evident that initially they at least brought some consistency and order to the public pronouncements. On the media front, their prime aim will be to respond to the insatiable service media interest; and to counsel Pan’s nominated spokesman about how to handle the public side of a saga that has many twists and turns in it yet. Behind the scenes one imagines there is a huge PR task working with Pan’s many stakeholders - employees, retailers, customers, shareholders and Government - to recover lost ground, restore confidence and try to keep the company in business. The episode also has huge ramifications for the TGA. The circumstances they faced were almost unprecedented and whatever course of action they chose had its downsides; therefore they warrant a good deal of sympathy for the position in which they find themselves. However the recall has been far from satisfactory. Pharmacies and retailers of complementary medicines, who position themselves as the experts, have been left with virtually no information to give to consumers and have been caught ‘in the middle’. But the real damage is to those marketers of complementary medicines whose products have been impacted. They’ve lost customer loyalty overnight and many will be lucky to survive. These businesses have every right to feel the TGA acted hastily without any consideration of commercial aspects and to ask whether there could have been a better way to handle this matter. As well, consumers have been left totally confused - not the least by the TGA continuing to add to the list of recalled products even a week after the initial announcements. And who could follow the way in which the information was released? At the end of the first week it was evident the TGA was working hard to maintain the ascendancy in the media battle. In a most unusual move for a Government agency they were backgrounding media and providing ‘their side of the story’ to such an extent that it almost seemed defensive. Once the dust settles on the recall, expect the spotlight to turn onto the TGA. It is likely that it will face the kind of questions APRA faced after the HIH debacle. The hunter may well become the hunted before too long. This means that the TGA can be expected to be doing all it can to tell its side of the story on the basis that attack is the best means of defense. Expect to see more in the media than ever before about what until now has been an almost invisible organisation. And where does this leave the Complementary Medicine Industry? This industry faces a very real marketing challenge. And it must start addressing these issues in the knowledge that the affairs of Pan, and the scrutiny on the TGA, is likely to continue as ‘background’ for some time. The marketing issues are complex. At its most basic level there is a need to rebuild confidence in complementary medicines as a category. That’s a not insignificant challenge in its own right. But within the industry are those marketers that are unaffected and are in a position to increase market share (as some have already done); they will want to take a leadership position. Then there’s those that have lost customers and will be struggling to rebuild their businesses; they will want the public’s understanding and support. And one shouldn’t forget the pharmaceutical companies. They’ve been concerned for some time about the inroads that complementary medicines have been making into their business. This is a great opportunity for them to regain some lost ground and ensure that the public is reminded about the possible unreliability of non-researched products. Although it must be remembered that it was an OTC medicine that sparked this whole sorry tale. PR will play a huge role in this battle in which one suspects the role for mainstream advertising is relatively limited. Developing positions and messages that are credible will be crucial. Getting close to retailers and building confidence and trust with consumers will be key ingredients. And how the media cover and report will ultimately have a big influence on how this all unfolds. You can bet that some companies are already working closely with key media to educate them towards their position and role in this issue. So ‘watch this space’. Will Pan be able to emerge with any credit? Will media coverage become more sympathetic? If the founder and CEO sells his shareholding how will the new owners conduct themselves and re-position the company? Will the tail turn and the TGA’s actions come under more scrutiny? How will it handle criticism of its actions? Will the TGA continue to win favourable media support? Will the TGA become more visible and start to ‘promote’ its corporate watchdog role and its credentials? How will the complementary medicines industry react? Will they try and run a campaign to rebuild public confidence? Will the industry split with those not affected trying to position themselves differently from, and superior to, those who used Pan? What about the pharmacist, health store etc - what role will they play into convincing the consumer?     Grant Common, Editor

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