Cadbury's worm issue-

SS
Case study
PRESENTED BY..
RAHULSONI-
MANOHAR-
48
46

ARSHAD-
49 PREM KUMAR-
47

HARSHINI-51 SRIKANTH-50
The Crisis is all about..
In eight outlets across Maharashtra, worms were
found in some bars of Cadbury Dairy Milk,
Cadbury's bread-and-butter brand selling 1 million
bars a day and an icon of 'chocolate' in India.
Inquiry was instituted by the Food and Drug
Administration and negative media publicity
spread like wildfire. The extensively graphic media
coverage led people to believe that every bar
could be contaminated. Consequently, sales
volume plummeted, retailer cooperation lessened
and employee morale dwindled. All in all, the
company's credibility suffered extensive damage.
Reason behind this crisis..

After a thorough investigation of the entire supply

chain, it was found that the problem originated at
the distribution end. Apparently, at the retail
outlets the infested bars were placed next to open
unpacked items susceptible to worms.

However, although the problem was not of its own

making, Cadbury did take responsibility for the
lack in educating retailers on storage and
hygiene.
Objectives of the campaign

Infestation could never occur at the

manufacturing stage.
The problem was storage linked.
Cadbury Dairy Milk continued to be safe for
consumption.
Let its brands and its performance speak for
it
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 and almost reestablished
the category.

Message strategy
It decided to convey that the root of the problem
was as the distribution end, that any food item
could face similar infestation, and yet Cadbury
would take initiatives to check the problem.
 Cadbury also roped in Amitabh Bachchan as
its brand ambassador since the celebrity was
hugely popular and reputed for his integrity,
qualities that Cadbury needed to re-associate
with the brand.

A rationally and emotionally connecting

television commercial, again starring
Bachchan, was also aired nationally. The star
gave a first hand account of his visit to the
Cadbury factory, assuring people about the
quality of the chocolate . In another version of
the ad, he also emphasized the safety of the
product for children.
 Tools used in the
campaign
Press Releases
Conferences
Consumer Advertisements
Trade Advertisements
Point of purchase communication
Packing initiatives
Email communication
Toll free numbers
Consumer Advertisements :

The objective
is to inform or persuade consumers of the merits of
your brand and products. Consumers are a large
and common target of ads presented through
several traditional types of media. Consumer
advertising is distinct from trade market or
business-to-business ads presented to business
buyers.

By the following ways:

Television
Print
Support
Sales promotion
Television :
Television is the most heavily expended
advertising medium used to target household consumers. Companies
pay TV networks to place 30- to 60-second spots during a certain part
of the day or during particular programs watched by people in the
target audience. TV ads typically offer an advertiser the largest
possible audience reach if that is the objective.

Print:
Several print media are used to reach consumers, with
newspapers and magazines being the most common. Direct-mail pieces
are also sent to consumers. However, consumers purchase lots of daily
or weekly newspapers and any of the hundreds of weekly consumer
magazine publications. High perceived credibility, geographic targeting
in newspapers, visual appeal in magazines and high audience interest
in print media are among advantages in reaching consumers through
these formats. Newspapers don't allow you to reach niche audiences,
though, and magazines have a high cost per contact. However,
advertising your small business in your local newspaper can allow you
to reach a large audience for a moderate cost.
Support :
A number of support media are used to
reach consumer audiences. Billboards are placed on highways
and in metro areas to hit local consumers or those in the midst of
travel. Directories target consumers in select markets. Transit ads
are placed on public transportation vehicles to target urban
consumers in cities. Aerial ads are often used to reach consumers
in cities or attending outdoor sporting events.

Sales Promotion :
Whereas other traditional
consumer ads are intended to build and maintain long-term brand
image, sales promotions are used to induce consumers to make
immediate purchases. Discounts, rebates and coupons are among
the promotions used to lure in customers. This short-term-
oriented ad approach is used to convey value to the consumer by
offering a quality product a reduced price. Overuse can detract
from other consumer advertising.
Strategy followed by Cadbury to overcome
the Worm controversy :
Project Vishwas :
The company launched Project Vishwas, a three-
pronged program that addressed the trade, consumers, media and employees.
The project incorporated the following measures :

For Trade :
A retail monitoring and education program was launched
that performed quality checks at over 50,000 retail outlets and educated
190,000 wholesalers and retailers regarding storage requirements.

A press ad regarding 'Facts about Cadbury' was also published nationally in

55 trade publications informing channel members about remedial measures
being taken by the company.

Posters and leaflets on the issue were also distributed to retailers,

encouraging them to share them with consumers.

Cadbury also linked the trade with response cell through a toll-free number
and an email id to let them contact the company directly
 For Media :

The media was also explained the company's point-of-view, given updates about
actions initiated by the company, and encouraged to share them with consumers.

The company instituted a media desk and diligently answered every media query,
friendly or not. The company's managing director urged media to assure
consumers that Cadbury was safe to eat, but that consumers exercise the usual
care in purchasing a chocolate that they exercise in purchasing a food item.

Furthermore, it also promised to implement packaging changes within two

months to ensure against poor storage. Cadbury's MD and key spokespersons had
one-to-one sessions with 31 media editors as part of an 'Outreach' program
initiated in November 2003.

For Employees :
Employees were also briefed about
actions taken through meetings with senior managers and email updates
from the MD.
Packaging Change :
January 2004, the company launched
a new double packaging that wrapped even the smallest 13
gm chocolate in an aluminium foil, heat-sealed for complete
protection from all sides and further encased in a polyflow
pack. The over-engineered pack, the first of its kind in India,
cost the company a fortune, but fulfilled the company's
promise to media and consumers.

The new packaging was launched amidst much fanfare in a

media conference. Amongst the material distributed in the
conference were a comparison kit allowing evaluation of old
and new packs and a video new release with packaging and
factory shots for television coverage. To reinstate confidence
among sales people and to motivate them, another audio-
visual with a message from the ambassador Bachchan was
shown in a string of sales conferences.
Outcome of the effort
As a result of the integrated campaign
Cadbury won over the invincible media and got
extensive media coverage that highlighted the
companys perspective instead of pointing a
finger at it.

Surveys revealed a positive change in

consumer perceptions and an increase in their
likelihood to buy. Further not only did
Cadburys sales recover from the crisis plunge,
but also grew by 20%in 2005.
Conclusion
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 tool like press release and

conference consumer advertising, trade advertising, point of
purchase communications, packing initiatives, email
communications and the like all focusing on the same
problem, Cadbury could communicate a unified message
and get audiences
THANK YOU