[Beijing] China's Shengyuan Dairy Co. is spending $1.2 million on a crisis management campaign, a very rare initiative in China, following a powdered milk scandal in which dozens of Chinese babies died and hundreds were hospitalized for malnutrition. The government blamed the tragedy on inferior products sold by local companies in second-tier Chinese cities and villages. Shengyuan is protecting its brand and reassuring mothers about milk quality with three 10-second TV spots, radio and outdoor by Omnicom Group's DDB
Worldwide. Media was handled in-house. DDB also organized a 41-city roadshow ending June 8 to raise awareness about Shengyuan's brand and charity efforts. The dairy has donated free milk powder and nearly $100,000 in cash to the victims.
In efforts by other marketers, Nestle organized a press conference with other milk-powder makers and the China Dairy Association to stress the importance of product quality. Nestle didn't develop related ads but went ahead with new spots for Nestle milk products and Neslac milk powder by Interpublic Group of Cos.' McCann-Erickson, Beijing.