A Report

On The Application of Management

Concepts
In
Crisis Management
Submitted to Mr. John Paul
By-
Divyendhu RCA Rahul Kalro
Mohammed Junaid Sachin Raju
Maheed Mukhtar Niteesh M.
Mayank Agarwal Adhiraj Singh
Kafil Ahmed Parth C.
 Definitions Of Management
 “Management is the art of knowing exactly what you want your people to do and
seeing that they do it in the best and cheapest way.”
- F.W. Taylor

 “Management is the art of getting things done through and with people in formally
organized groups.”
- Harold Koontz

 “Management is the art and science of decision-making and leadership.”

- Donald J.C.

 “Management is the force that integrates human and non-human resources into an
effective operating unit.”
- Keith & Gubelini
 Crisis Management
Crisis management is the process by which an organization deals with any major
unpredictable event that threatens to harm the organization, its stakeholders, or the
general public.
Types of Crisis-

 Natural Crises
 
 Technological Crises

 Confrontation Crises

 Crisis of Malevolence

 Crisis of Organizational Misdeeds

 Workplace Violence

 Rumors
One Of The World’s Most Trusted
Brands
Pesticide Found In Cadbury’s
Products!!!

Hard To Believe,
But TRUE !!
 Cadbury Global
 Started in the year 1824 by John Cadbury in Birmingham,  selling tea and cocoa.

 In 1969 Cadbury merged with Schweppes to create Cadbury Schweppes.

 Schweppes demerged from Cadbury in 2008 to form Cadbury and Dr. Pepper Snapple Group.

 Cadbury now operates in over 60 countries and employs more than 45,000 people.

 Second largest confectionary group in the world after Mars-Wrigley.

 Listed on DAX 30, Dow Jones, FTSE 100 and FTSE 250.

 Has had two major cases of product infestation. One in UK and Ireland, where minute traces
of salmonella were found. Another, in which claims of pesticide infestation were received.
The Pesticide Crisis
 Campaign Summary

 On October 3rd Food and Drug Administration received claims about two infested Cadbury
diary milk bars. FDA launches an inquiry and goes directly to media.

 Huge and adverse media attention meant that the company’s reputation was under fire.

 Sales volumes fell drastically during the festive season.

 Retailer stocking and display dropped, employee morale - especially that of the sales team -
was shaken.
 Campaign Summary

 A focused and intense communications program achieved these results –

• Convincing the media that the problem was a storage-based problem, and not
manufacturing related.

• Recovering sales volumes to pre-crisis levels.

• Improving the brand image by responding quickly to the crisis and restoring public
confidence in the company.
 Marketing Challenges

 Graphic nature of media presentations resulted in the consumer perception that every bar
was infested.

 Political parties blamed Cadbury as an irresponsible MNC.

 The challenge was to restore confidence in the stakeholders, employees and salespersons.

 And build back credibility for the corporate brand through the same channels (the media)
that questioned it.
 Campaign Objectives

 The immediate objective was to get they following messages across –

• The infestation could never occur at the production stage and that the production line was
secure.

• The problem was storage related, this without alienating the trade channels.

• That Cadbury Diary Milk was safe to consume.

 Target Groups

 Problem started of in Mumbai, but it became a nationwide crisis since national media
covered it.

 The following were the target groups that had to be convinced –

• Media – Both electronic and print media, national and local.

• Trade partners - As their confidence was shaken.

• Finally, as intense media coverage continued, it became important and critical to include
the employees, especially salespersons as the third group.
 Strategies
 Building relationships with the media.

 Set up a media desk to answer all queries.

 First media briefing- Issues like storage problems and safety in eating chocolates were
addressed.

 Second media briefing - Addressed the steps taken to ensure consumer confidence,
introduce Project Vishwas (Trust).

 An Editorial Outreach program with 31 media editors across 5 most affected cities was
conducted.
 Strategies

 The trade, and consumers, were reached nationally through a press ad, ‘Facts about
Cadbury’.

 A series of town hall meetings were held with senior managers addressing employees, to
ensure that they were updated on the proactive actions being taken by Cadbury to manage
the media.

 Gained respect by acknowledging the problem rather than skirting it.

 Published shots of the packing and production line on news channels to convince the public
about the purity of the product.
 Strategies

 Launched a new purity seal packaging in January 2004, consisting of double wrapping for
protection.

 Organized media conferences to launch new packaging.

 Announcement of the new pack was done through a testimonial advertisement on TV called
‘Sincerity’.

 Brought in Amitabh Bachchan as the brand ambassador to restore credibility, with an AV Ad .

 Campaign Results and
Measurement
 Media Coverage - The media relationship effort clearly helped in making clear that the
problem was storage-based. Cadbury got a total of 378 clips in over 11 languages covering
the new packaging, and its benefits, in January 2004.

 Sales - Sales volumes, which declined drastically between week 1 and week 10 of crisis,
recovered to those during the pre-incident period. This clearly reflects restoration of
consumer and hence trade confidence, in the corporate brand.
 Campaign Results and
Measurement

 Image - There was significant upward movement in ratings amongst consumers on

parameters like company image, responsiveness of company and behavioural parameters
like intention to buy Cadbury chocolates.

While the new product introduction and advertising had their role to play in the
changing consumer perceptions, the media’s positive coverage and the trade’s positive pre-
disposition played a huge part in helping Cadbury regain its reputation in the market.
Cadbury Is Now Safe To
Consume !!!

Gorilla – Eclipse Of
The Heart (Remix)

An Official Cadbury
AD
Thank You!!