This report summarizes the "teapot crisis" faced by JC Penney in 2013. When a teapot designed by Michael Graves was advertised on a highway billboard, some felt it resembled Adolf Hitler. Images spread on social media, attracting negative comments. JC Penney responded lightheartedly on social media and removed the billboard. Despite addressing the situation humorously without justification, sales of the teapot increased. The report evaluates JC Penney's effective crisis response and teaches that even small issues on social media can escalate, so companies must address minor comments sensitively.

1. A
REPORT
ON
CRISIS MANAGEMENT
CASE
OF
JC PENNEY
“THE TEAPOT CRISIS”
BY
RISHITI RAO (16531022)
NIRMAL SUTHAR (16531035)
SHIVANGI THAKKAR (16531014)
SIDDHI MODI (16531003)
MANSI JARIWALA (16531006)

2. Introduction
Crises come in all different forms; some are big, some are small, but if they aren’t handled well
any crisis, no matter the size, could damage a company’s reputation. In today’s world, social
media is a huge component to crisis management, and if utilized correctly, it can benefit the
company and help manage the crisis effectively. One example of a company that utilized social
media to squash a crisis was JC Penney, when they had to deal with their teapot that bared a
striking resemblance to Hitler.
Issue
In May 2013, JCPenney offered a Michael Graves designed teapot, which was a centerpiece for
the relaunch of its home goods merchandise. The teapot was advertised on a billboard along
California’s 405 freeway outside of San Diego. Several drivers who thought it bore a striking
resemblance to Adolf Hitler, leader of Nazi Germany, photographed the teapot. Images of the
billboard were then quickly shared online through Twitter and reddit.com. People were
responding with messages such as “It’s easier to see Hitler than the kettle.” The Telegraph even
tweeted a news article about it, which forced JC Penney to take action. The conversation grew
quickly from there throughout the internet. Conan O’Brien even spoofed the controversy on his
late night talk show. Soon after the controversy spread onto the internet, the complaints started
to come into JCPenney. This resulted in JCPenney taking down the billboard and removing the
item from the online store.

3. Solution
The company approached the crisis with a measured response, even making light of the situation.
They decided to respond via social media, since that was how the crisis all began. However, they
had to wisely choose how to respond. On one hand, they did not want to take themselves too
seriously since most people were talking about the teapot in a joking manner. However, if
handled inappropriately, this small crisis could turn into a much bigger deal.
JC Penney thus responded to hundreds of tweets about the teapot with a light-hearted response
that conveyed the message, while still being humorous. They also took the billboard of the teapot
down.

4. Hence the problem was solved very well. In fact, few days after the social media storm, the
teapots were sold out on the JCPenney website. And according to the USA Today, they were
selling teapots on eBay as well, that too with increased price. Thus, the crisis was averted and JC
Penney could breathe easy. Their quick response helped turn the “crisis” into a non-issue, and
they even had a rise in sales.
Our take
The main matter of concern in the case was that how much responsibility did JCPenney hold?
The designer, Michael Graves had no intention of creating a teapot that resembles one of the
most reviled dictators of all time, nor did JCPenney commission such a product. The very
coincidence that the teapot happens to resemble Adolf Hitler is just that, a bizarre coincidence.
To think that it was intentional borders on the absurd. In this incident, it would clearly seem that
it would fall into the accidental cluster of SCCT (Situational crisis communication theory).
JCPenney recognized this to be the case, which would suggest that they responded to the
situation aptly. They employed the SCCT (Situational crisis communication theory) crisis response
strategy of diminish, but not with an excuse or justification. Instead they used humor and
misdirection to highlight the ridiculousness of the situation. By treating the situation lightly it
allows the effected stakeholders to realize the silliness of the circumstance.
So the lesson learned from this case is that one needs to be sensitive to the power of social media.
Even a small issue like a silly comment or an unintentional coincidence that gets picked up by
anybody on social media can quickly snowball into a crisis. It is important to be an alert and
address even the smallest comments with grace and good sense.