Communicating With Stakeholders

Description
In this brief information concerning communicating with stakeholders.

Introduction
Bernard Matthews is the largest turkey producer in the UK. The
business has grown substantially since its relatively humble origins in
1950, when Bernard Matthews bought 20 turkey eggs and a second-
hand incubator. 12 turkeys successfully hatched from this initial batch
and before long, the young entrepreneur was able to give up his
insurance job and concentrate full-time on rearing turkeys.
Today, Bernard Matthews rears over seven million turkeys every
year. 13 million UK households buy a Bernard Matthews Farms
branded product each year.
Despite the size of its
operations, the company
remains close to its roots in East
Anglia with its farms located
across Norfolk, Suffolk and
Lincolnshire. Bernard Matthews’
vision is ‘to make turkey the
preferred choice of protein for
every day and every occasion’.
Bernard Matthews operates in a
competitive and fast-changing
environment. Consumers are
faced with a huge choice of
foods to suit different lifestyles, diets and tastes. However, in
recent years, buying patterns have changed as consumers have
become more concerned about healthy eating, food safety and
animal welfare.
Chance events can have a significant impact on a food business.
For example, Jamie Oliver’s high-profile campaign in 2005 to
improve the quality of school meals singled out foods such as
Bernard Matthews’ Turkey Twizzlers as being unhealthy. In 2007,
there was an outbreak of bird flu at a Bernard Matthews farm in
Suffolk. At this time, the media also discovered that the company
imported some of its turkey from abroad. The press published
stories that this could have been directly related to the outbreak, a
theory that was never proved.
Initially, Bernard Matthews did not speak up and defend its
product range, which offered affordable, tasty and convenient food
for everyday working mums. This resulted in adverse press
coverage and the company lost credibility with the media. When
bird flu hit, relations with the media were at an all-time low. The
company’s immediate reaction to the crisis was to focus on
eliminating the disease, which it did successfully.
Communications came low on the list of priorities.This meant that
the resulting information ‘vacuum’ was soon filled with damaging
and often inaccurate news reports.
Curriculum Topics
• Communication process
• Barriers to communication
• Internal stakeholders
• External stakeholders
G
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S
A
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Y
www.thetimes100.co.uk
Entrepreneur: Person who carries the
risk in investing ideas and money in a
business enterprise.
Vision: A motivating summary of what
an organisation hopes or intends to
achieve.
www.thetimes100.co.uk Bernard Matthews | Communicating with stakeholders 25
Communicating with stakeholders
39639_BERN_MATTHEWS 2/9/11 10:52 Page 1
When the company realised the extent of the damage and finally
opened up to the press it was too little, too late, as all trust had
been lost. As a result, Bernard Matthews’ sales in the UK fell by
35% and the company went into a loss position.
In 2008, the company implemented a business turnaround
programme. From a communications perspective this involved:
• more closely monitoring the changing environment in which the
company operates
• understanding the customers’ needs better
• communicating in a transparent manner with all stakeholders
to rebuild trust in the company.
This case study explores how Bernard Matthews has addressed
the challenges of communicating with its customers and other
important stakeholders.
What is communication?
The communication process involves a sender (who), transmitting
information (what), in a form (how) so that the receiver will understand.
To communicate effectively, Bernard Matthews needs to be clear
about the messages it wants to convey. It also has to:
• consider the intended receivers of the communication – its
target audience
• seek out the most effective communication channels in order to
be heard against the ‘noise’ of competing claims about
healthy diets
• find ways to challenge the prejudices and preconceptions of
consumers and other key target audiences.
Bernard Matthews firstly decided to focus messages on its core
strengths and expertise – British turkey farming and providing
great tasting turkey. The company committed to sourcing all its
turkey meat from the UK. Additionally, it sold those parts of the
business which diversified operations away from turkey.
Secondly, Bernard Matthews wanted to restore the reputation of
the brand and challenge consumer misperceptions that turkey
was just a processed food.
It would promote turkey as a tasty, versatile and healthy meat by
improving consumer awareness through different communication
methods. It also aimed to change consumers’ buying patterns by
getting them to choose turkey as an everyday meat.
Barriers to communication
Anything that affects the smooth flow of information is known as
‘noise’. This might be, for example, the language used, an
inappropriate use of technology or the different levels of skill and
knowledge of the sender and receiver. For example, every day in
the press and on TV, consumers are bombarded with often
confusing or contradictory information about the health benefits or
risks associated with different foods. Consumers may not have
enough understanding or information to judge between conflicting
messages. It is therefore not surprising that many people do not
hear these messages and ‘switch off’.
Bernard Matthews had to overcome a considerable amount of
direct ‘noise’ caused by the earlier negative press articles. By not
responding to these immediately or correcting with facts,
consumers were confused and the company lost credibility with
the press and the public.
To achieve its vision and encourage consumers to eat turkey all
year round, Bernard Matthews needed to give people more
information in a way they could easily understand. It has therefore
chosen to highlight key facts about turkey meat as the foundation
for many of its messages. These include the facts that turkey is
tasty and versatile, high in protein, vitamins and minerals and that
turkey breast has the lowest saturated fat levels of mainstream
meats. It is also an efficient and sustainable product to produce.
Communicating
with internal stakeholders
The company needed to improve its communications with its
internal and external stakeholders. Internal stakeholders are those
individuals and groups within the organisation. They include the
employees, the managers and directors of the business and its
owners or shareholders. Communications with internal
stakeholders help to create a positive attitude within the company.
This is particularly important when times are tough as employees
may become de-motivated if they see negative stories about their
company in the media.
Bernard Matthews aims to ensure that every employee
understands the company’s business turnaround strategy and the
steps it is taking to strengthen its brand.
G
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A
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Stakeholders: Persons or groups with
a direct interest in the decisions or
behaviour of an organisation, such as
shareholders, employees, customers,
suppliers, creditors, local community.
Noise: A barrier or filter that can distort
or inhibit communication between the
sender and receiver.
Sustainable: Where the supply chain,
processes and products of a business
do not compromise the environmental
resources of future generations.
www.thetimes100.co.uk Bernard Matthews | Communicating with stakeholders 26
www.thetimes100.co.uk
Noise
Sender
Encoded
message
Message
channel
Decoding
message
Receiver
Message channel
The communication process
39639_BERN_MATTHEWS 2/9/11 10:52 Page 2
For example:
• It produces a bilingual weekly newsletter for all employees.
This provides news on business developments.
• Staff also have access to news about the business on the
company’s intranet site.
• Face-to-face meetings inform managers about progress and
new initiatives.
Bernard Matthews is a private company. This means that it does
not have the same legal obligations to publish formal, regular
company reports as a public limited company would. However, it
still keeps its owners and stakeholders informed through regular
meetings and by publishing financial statements.
Communicating
with external stakeholders
One of the most significant groups of external stakeholders is
Bernard Matthews’ customers. However, other important external
stakeholders include the government and regulatory bodies, the
company’s suppliers, the media and the communities that live
close to the company’s farms and operations.
Bernard Matthews’ communications programme aims to improve
perceptions of the company and brand and to increase public
awareness of turkey as a tasty, versatile and healthy meat. These
are important parts of rebuilding trust with consumers and
restoring the company’s reputation. Bernard Matthews uses
written, visual and face-to-face forms of communication to get its
messages across to external stakeholders.
Advertising
Bernard Matthews advertises on television and in the press. This
is a powerful and effective way of getting a message to a wide
audience. It helps to keep the brand in the minds of consumers.
However, advertising is a one-way channel and needs follow-up,
for example, through market research, in order to understand the
impact it has.
In the past, Bernard Matthews’ advertising focused on its more
processed products or Christmas range. However, its 2011
campaign not only promotes fresh turkey for the first time, it also
emphasises its versatility, taste and low-fat benefits and that it can
be enjoyed all year round. This builds on recent campaigns
designed to reconnect the brand with its farming origins,
containing messages such as ‘100% British turkey’.
Internet and social media
Bernard Matthews currently has four websites targeted at different
audiences. These promote new products and the company’s
farming credentials and publicise new initiatives and the health
benefits of turkey:
• A corporate website that provides an overview of the business.
• A consumer site, giving information on the turkey product
range.
• A Foodservice website, providing information to the catering
trade, including pubs and schools.
• A campaigning website, Change Your Meat Not Your Menu
(www.changeyourmeatnotyourmenu.co.uk), which supports
Bernard Matthews’ drive to get consumers to make turkey part
of their everyday meals.
Engaging with online communities through social media is also
an important part of the company’s overall communication
strategy. For example, the website ‘Mumsnet’ is a forum for
parents to exchange ideas and share tips and advice. By
engaging with discussion groups and blogs on ‘Mumsnet’,
Bernard Matthews encouraged mothers in 2010 to discuss the
value of including turkey in the family diet.
www.thetimes100.co.uk Bernard Matthews | Communicating with stakeholders 27
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G
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Intranet: An internal computer network
or website that can only be accessed by
staff of the organisation.
Online communities: Virtual
community in which social interaction
takes place between its members.
Directors,
managers and
employees
The media
and opinion
formers
Suppliers
Owners
Customers
and
consumers
The local
community
Government
and regulatory
bodies
Bernard
Matthews’
stakeholders
39639_BERN_MATTHEWS 2/9/11 10:52 Page 3
Media and public relations
Bernard Matthews also seeks to communicate indirectly with
consumers by engaging with the media and other influential
opinion formers. The management of Bernard Matthews regularly
meets with journalists to ensure that they understand what the
company is doing. For instance, these meetings may highlight the
emphasis the company places on animal welfare or its approach
to sustainability. By rearing all its turkeys in the UK and sourcing
wheat for the majority of its feed from East Anglia, Bernard
Matthews’ products have low food miles.
Bernard Matthews regularly issues press releases on new
products and initiatives. They enable the media to understand and
report accurately on what the company is doing. For example,
one press release highlighted that it had removed all artificial
colours, flavours and hydrogenated fats from its branded
products. It has also lowered levels of saturated fats and salts.
This message is reinforced by improved product labelling and use
of the Quality British Turkey and Red Tractor quality marks. These
symbols on food packaging form a small part of the company’s
communications strategy by providing a guarantee of quality for
consumers that words alone do not express. They show that the
turkey meat comes from farms that meet high standards of food
safety and hygiene, animal welfare and environmental protection.
The company also attempts to influence consumer opinion in a
non-verbal way by using ‘celebrity status’ in its campaigns.
Michelin-starred chef Marco Pierre White and Olympic gold
medallist Rebecca Romero help to present the ‘Change your Meat
not your Menu’ campaign. Their image helps convey the
versatility, taste and health benefits of turkey. In addition, the
company has previously held face-to-face sampling sessions to
take its message directly to consumers. These events show
consumers how versatile turkey is and how it can be used in
everyday meals, not just as a traditional roast. They also give
consumers the opportunity to try turkey for themselves and realise
what a great tasting meat it is.
As the largest employer in East Anglia, Bernard Matthews also
needs to build relationships in the local community through its
corporate responsibility strategy and community-led projects:
• Bernard Matthews provides educational sponsorship support
and mentoring for several local schools.
• It has launched a youth awards scheme for young people in
Norfolk and Suffolk to recognise individuals with outstanding
talent and community spirit.
• It works with the Norfolk Community Fund, supporting local
charities and organisations in the local community
Conclusion
In mass consumer markets such as food, businesses need to
use a range of channels to communicate effectively with all
stakeholders. They also need to respond to changes in consumer
tastes and opinions and challenge any misconceptions or
inaccurate stories in the media.
It is still a little early to evaluate the full effects of the change in
Bernard Matthews’ communications strategy. However, there are
already clear indicators that the company’s integrated marketing
and advertising campaign is turning around the earlier negative
opinion in the media. It is improving consumer perceptions of the
brand and is starting to regain the trust of its stakeholders:
• Press coverage has improved as the company has rebuilt trust
and relationships with the media and become more open and
transparent.
• Some major retailers are starting to increase the visibility of
turkey products in store.
• Sales of turkey, fresh turkey in particular, are increasing. In
2010, turkey consumption rose by 9% year-on-year, the
biggest increase since 1996.
G
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Food miles: Refers to the distance
food is transported from the time of its
production until it reaches the
consumer.
Press releases: Written communication
of news stories to the news media.
Corporate responsibility: The wider
responsibility of a company that extends
beyond shareholders to include other
stakeholders such as employees,
suppliers and the community as well as
the natural environment.
www.thetimes100.co.uk Bernard Matthews | Communicating with stakeholders 28
Q
U
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T
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S
1. Using an example, describe what is meant by ‘noise’
within the communications process.
2. Explain, with examples, the different communications
channels a business might use to reach consumers.
3. Analyse how Bernard Matthews changed its business
strategies and discuss why it needed to emphasise
the importance of communications.
4. Evaluate the effectiveness of the various ways in which
Bernard Matthews communicates with external
stakeholders.
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