Cadbury India : A fight to worm rumour By:

Mustahid Ali

MBA-3

ROLL NO: 1334

ABOUT COMPANY

In 1824, John Cadbury began selling tea, coffee, and drinking chocolate which he produced himself at Bull Street

in Birmingham, England.

He later moved into the production of a variety of cocoa and drinking chocolates, made in a factory in Bridge Street

. John Cadbury became a partner with his brother Benjamin and the company they formed was called ‘Cadbury Brothers of

Birmingham’.

Cadbury Product Portfolio

Sell three kinds of confectionery: chocolate, gum and candy

operates in over 60 countries. 35,000 direct and indirect suppliers. 187 years old. 45,000 people are employed.

Company Analysis

PROBLEM CONT……………

In eight outlets across Maharashtra, worms were found in some bars of Cadbury Dairy Milk.

Inquiry was instituted by the Food and Drug Administration and negative media publicity spread like wildfire.

Consequently, sales volume plummeted, retailer cooperation lessened and employee morale dwindled. All in all, the company's credibility suffered extensive damage

Reputation and credibility was under intense scrutiny.

Sales volumes came down drastically in the first 10 weeks.

Employee morale – especially that of the sales team – was shaken.

Due to which media coverage touched close to 1000 clips in print and 120 on TV news channels.

People even assumed that every chocolate could be contaminated.

Crisis

Cadbury India Ltd. has begun investigations into reports that live worms were found in its Dairy Milk chocolate bars.

Cadbury’s statement : We are concerned about these reports and are investigating it," a company spokesperson said.

The Maharashtra Food and Drugs Administration (FDA) had announced that it would prosecute Cadbury India Ltd. after tests indicated "insect infestations" in the chocolate samples tested.

Problems faced by Cadbury

To Restore confidence in the key stakeholders.

Build back credibility.

Make customer believe about safety.

To increase the sales.

Challenges

In response to the crisis, Cadbury therefore developed three key messages:-

1. Infestation was a storage problem;

2. It was safe to eat Cadbury chocolates; and

3. Consumers must exercise the same care in purchasing a chocolate as they would when buying any food item.

Objectives

They did not deny the fact of worms being present in the chocolates

Project Vishwas

Advertisement featuring Amitabh Bachchan.

Revamping of packaging of Dairy Milk having metallic poly flow.

Steps taken by Cadbury to achieve the objectives

Using IMC elements to overcome from this problem

• Advertising

The company began its multi-pronged campaign on key print,broadcast and electronic media, to regain its lost credibility andalmost reestablished the category.

• Message strategy

It decided to convey that the root of the problem was as thedistribution end, that any food item could face similar infestation,and yet Cadbury would take initiatives to check the problem.

Identification of four stakeholders the consumers, its employees, the media, and the government authorities (i.e.

the FDA)

Situation with FDA would improve as the company was strictly adhering to food safety laws

Attention from media would fade as media would lose interest and find other stories to cover

What & How to be Done?

Internal Actions

Implementation of Actions

Letters from MD to the employees

Employees were asked to go to the markets and check for themselves

Series of town hall meetings were held

Regular email updates

External Actions Packaging

Project “Vishwas”

Two advertisements featuring Amitabh Bachchan

Media conferences Platform of BQC

Retail monitoring and education program

Toll free numbers and emails to the retailers

A plan involving distribution and retail channels to ensure the quality of products.

Quality control managers and 300 sales staff checked over 50,000 retail outlets in Maharashtra and replaced all questionable stocks.

Built awareness among retailers on storage requirements for chocolates.

Provided assistance in improving and strengthening packaging of company’s range of products.

Project VISHWAS

Appointed as brand ambassador for a period of two years.

The company believed that the reputation he has built up over the last three decades complements their own, which was built over a period of 50 years.

AB played a pivotal role in all communication relating to Cadbury's products and brands.

Aimed at rational and emotional appeal

Why Big B?

Infestation was Storage-linked problem, not manufacturing related.

Sales volumes climbed back. Responsiveness of company. Significant upward movement in ratings Within eight weeks of the introduction of

its new packaging and advertising campaign, sales had almost reached pre-crisis levels.

Cadbury has maintained its position at the top of the Indian chocolate industry ever since.

As A Result:-

Through timely and consistent marketing communications Cadbury succeeded in solving a daunting business crisis.

With a 360-degree communications approach that targeted various audiences, Cadbury could quickly control and off-set the negative word of mouth it had received.

By integrating a variety of tools like press release and conferences, consumer advertising, trade advertising, point-of-purchase communications, packaging initiatives, email communications and the like, all focusing on the same problem, Cadbury could communicate a unified message and get audiences to appreciate the efforts it had taken to minimize instances of future occurrences.

Conclusion

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….ANDTHENTHEYSOLDHAPPILY..!!!!