RESCUING CRAYOLA: MISSION POSSIBLE
- Juan Carlos Erdozain Rivera, MBA
- Jul 21
- 5 min read
In a business environment where no organization is immune to facing a crisis, the difference between resilience and collapse lies in preparation. When chaos threatens to paralyze operations and destroy reputations, a seemingly simple tool proves to be a fundamental pillar of survival: the checklist. More than just a checklist, it acts as a strategic roadmap that transforms uncertainty into coordinated action. The aforementioned model served as the basis for companies like Capsugel and Crayola to successfully navigate their own crises and is a clear example of how systematic planning through a checklist not only helps create response policies but also becomes an invaluable resource for any company's survival
FROM PANIC TO OPPORTUNITY: HOW I RESCUED CRAYOLA FROM A FALSE ACCUSATION AND TURNED THE CRISIS INTO OUR GREATEST VICTORY
By Juan Carlos Erdozáin Rivera, Brand and Leadership Strategist
"In the face of the inevitability of a business crisis, the difference between survival and failure often lies in a single variable: the ability to execute a plan under pressure. This is where the Checklist establishes itself as the most important tool in Crisis Management."
Any organization can be caught up in a crisis. Johnson & Johnson's Tylenol disaster, Union Carbide's Bhopal disaster, and NASA's disastrous space shuttle mission are obvious examples. A survey of CEO´s indicates that around 70% of Fortune 500 companies have adopted crisis planning. These, and many other organizations that have yet to address the problem, will find Capsugel´s method interesting.
There are moments in a leader's career that don't appear in business manuals, such as a phone call in the middle of the day that chills the blood and tests every ounce of experience, composure, and strategy one possesses.
As Crayola's Vice President for Latin America in 1998, I received one such call: Mexico's Ministry of Health publicly accused our crayons of containing lead.
The result was immediate and catastrophic: our product was withdrawn from every point of sale nationwide.
For a brand like Crayola, a global synonym for childhood, creativity, and, above all, safety, this wasn't just a public relations crisis; it was a direct attack on its soul. The cornerstone of our brand promise—to be the safest product for children—was crumbling in the public eye.
However, what for others was a disaster with no return was a signal for me. A signal to activate a crisis manual that wasn't forged at Crayola, but years earlier, in the trenches of one of the most severe corporate crises in history and which, fortunately, I had experienced from the inside.
THE PARADOX OF SUCCESS: WHEN YOUR BRAND BECOMES YOUR ACHILLES' HEEL
The first step in any crisis management is an accurate and rapid diagnosis. How was it possible that a brand with dual international certification for non-toxicity could face this accusation? The answer lay not in our products, but in our success.
In Mexico, we had achieved such a strong positioning that the "Crayola" brand had become a generic noun. No one asked for "crayons"; they asked for "crayolas" This generalization, every marketer's dream, became our nightmare.
The investigation revealed the truth: the Ministry of Health's statement wasn't intended to single out our brand, but rather to warn that "crayons in Mexico may contain lead," referring to low-quality or unregulated products. But in the minds of the public and the media, "crayons" were synonymous with "Crayola." The bullet wasn't aimed at us, but our size and reputation put us in its path.
THE SECRET MANUAL: LESSONS FORGED IN FIRE AND CYANIDE
This is where the past becomes the most powerful tool of the present. Years before joining Crayola, I had the privilege of working at Capsugel, a division of Warner-Lambert. At Capsugel, we experienced a terrifying crisis when a criminal adulterated TYLENOL IN CAPSULES with cyanide, causing deaths. It was a tragedy that shook the industry.
From that terrible experience was born "Capsugel Crisis Management," a response protocol so brilliant and effective that it was immortalized in Alexander Hiam's book, *The Vest-Pocket CEO: Decision-Making Tools for Executives *. It wasn't theory; it was a battle plan forged in the worst-case scenario imaginable. Its ten principles are the pillars upon which I built Crayola's defense, the four pillars of which are:
Take immediate control: Don't wait, don't delegate. The leader must be in charge.
Radical Transparency: Hiding information fuels panic. The truth is your best shield.
Centralized and Consistent Communication: One spokesperson, one message.
Leverage Credibility and Facts: Deploy the full arsenal of data, certifications, and reputation.
THE RESCUE STRATEGY: FROM ACCUSED TO ADVOCATE FOR CHILD SAFETY
With Capsugel's manual as my roadmap, I executed a three-phase strategy to not only exonerate Crayola, but to strengthen it:
PHASE 1: DIRECT AND HIGH-LEVEL CONTACT
Instead of issuing a defensive press release, my first move was to directly contact the person responsible for the accusation at the Ministry of Health. I didn't approach it from a confrontational perspective, but from a collaborative perspective. Armed with our dual nontoxicity certification and leveraging the brand's impeccable reputation and my own, my goal was simple: clear up the misunderstanding. "I understand your mission to protect the children of Mexico," I told him. "That's also my main mission at Crayola. We're on the same page. Let me show you why."
PHASE 2: ORCHESTRATING THE COUNTER-MEDIA NARRATIVE
Once aligned with the authorities, the next step was to rewrite the story in the public arena. We coordinated a joint clarification with the most important media outlets, including giants like Televisa. The message was carefully crafted:
It wasn't a denial, it was a clarification.
"Crayola is innocent" wasn't enough. The key message was: "The Department of Health is doing vital work by warning about uncertified crayons. Crayola applauds and supports this initiative, and we take this opportunity to remind the public why our certifications make us the gold standard for safety."
We transform the generic problem into our strength.
We publicly explained the phenomenon of generalization and used it to our advantage. "We understand the confusion, because for decades, 'Crayola' has meant 'crayons' in Mexico. Today, that confusion gives us the opportunity to teach parents to differentiate and demand non-toxic products for their children."
PHASE 3: TURN THE THREAT INTO A MARKETING OPPORTUNITY
The crisis became the most powerful marketing platform we could have wished for. We launched a campaign not to defend ourselves, but to educate. We reinforced the significance of our "AP" (Art & Creative Materials Institute) seal in every advertisement and point of sale, explaining what our dual non-toxicity certification meant.
The result was spectacular. Not only did we clean up the brand name, but:
We strengthen our position as the safest option on the market.
We educate the consumer, giving them new reasons to consciously choose us. DIFERENTIATION!
We strengthened our relationship with government authorities.
Negative media coverage turned into public validation of our quality and safety.
A crisis is the final test for a leader and their brand. It exposes weaknesses, but it also reveals hidden strengths. That day, Crayola's hidden strength was my experience at Capsugel. We demonstrated that, with the right strategy, rigorous preparation, and decisive leadership, it is possible not only to survive the perfect storm, but to emerge from it stronger, more confident, and with a stronger reputation than ever.
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