4. “His 'most recent behavior is not consistent with the image of Kellogg”. The case discusses the consequences of Kellogg's decision to drop Phelps and how Kellogg, which had earned a name for itself in recent years as a company with high ethical standards, faced a major backlash and calls for boycott of its products. 4
5. Issues: » Analyze the advantages and disadvantages of celebrity endorsement deals. » Understand the effects of celebrity endorsements on the image of a company. » Examine the role of Public Relations (PR) in the era of the Internet and social media. » Study the ethical issues underlying celebrity endorsement deals. 5
6. The case talks about how the entire episode affected the brand image of Kellogg as analysts felt that by breaking its relationship with Phelps and by being harsh and judgmental in its approach, Kellogg had risked its own reputation. 6
7. WHAT KELLOG SAID.. “This is not a situation where any anti-doping rule was violated, but we decided to send a strong message to Michael because he disappointed so many people, particularly the hundreds of thousands of USA Swimming-member kids who look up to him as a role model and a hero. Michael has voluntarily accepted this reprimand and has committed to earn back our trust." 7
8. The Companies that stood by him.. Visa Inc. Speedo Omega- Luxury Swiss Watch maker Pure Sport- Sports beverage maker. 8