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Project on PR as a powerful tool in IMC

Cadbury‟s Worm Controversy

SUBMITTED TO:

Professor Isaac Jacob

SUBMITTED BY:

Kunal K. Sawant

Roll No. 44, MMS Mktg.

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CONTENTS

EARLY HISTORY OF CADBURY 3

ABOUT CADBURY INDIA LTD. 5

BRAND BUILDING OF CADBURY DAIRY MILK 6

OTHER BRANDS OF CADBURY 10

BASICS OF PR 19

THE CADBURY‟S WORMY CONTROVERSY 25

EFFECTS OF THE CONTROVERSY ON CADBURY 26

STEPS TAKEN TO SOLVE THE CONTROVERSY 28

BENEFITS OF A GOOD PR CAMPAIGN - CADBURY‟S 32

PRIMARY MARKET RESEARCH AND ANALYSIS 33

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EARLY HISTORY OF CADBURY

The history of Cadbury as manufacturers of chocolate products in Birmingham dates back to

the early part of the 19th century, when John Cadbury opened a shop in the centre of the city,

trading as a coffee and tea dealer. Soon a new sideline was introduced - cocoa and drinking

chocolate, which he prepared himself using a mortar and pestle.

The founding of the Cadbury business dates back to 1831 when John Cadbury first made

cocoa products on a factory scale in an old malt house in Crooked Lane, Birmingham.

In 1847 the business moved to larger premises in Bridge Street, which had its own private

canal spur linking the factory via the Birmingham Navigation Canal to the major ports of Britain.

Business continued at the Bridge Street site for 32 years and by 1878 the workforce had

expanded to 200, so more space was needed. This heralded the move to Bournville and the

building of what is now one of the largest chocolate factories in the world.

John Cadbury retired in 1861 handing over the business to his eldest sons Richard and George.

It is to their leadership that the success of the enterprise is owed as the company prospered.

The origin of the group goes back over two centuries. Some of the most loved international

brands are from the stable of Cadbury Schweppes – Cadbury Dairy Milk, Dr Pepper, Flake,

Trebor Basset, Snapple, Motts and with the acquisition of Adams, brands like - Halls, Clorets,

Trident, Dentyne and Bubbas bubble gum range will now be part of the Group’s portfolio.

55,000 people populate the humming offices of Cadbury Schweppes across the globe.

Cadbury Schweppes is the No.1 confectionery and third largest soft drinks company in the

world. They manufacture, market and distribute branded chocolates, confectionery and

beverages that bring smiles to millions of consumers across 180 countries.

The Core purpose of Cadbury Schweppes is “Working better together to create brands

people love”.

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They are respectful of the social and natural environment in which theyoperate; supportive of our

consumers, customers and colleagues; proud of our heritage, and passionate about success.

This passion for success led to the company expanding its business overseas and thus bridging

the flavour of chocolate to people and tickling their taste buds.

Cadbury’s expanded their business to many countries like Australia, America, Canada, India etc.

When Cadbury Dairy Milk chocolate was first introduced in the early 1900s it made an

immediate impact quickly becoming the market leader. The success story has continued. It is still

the top selling chocolate brand in the country and the Cadbury Mega Brand's broad family of

products today has an international retail value approaching US$1billion.

As an international brand Cadbury Dairy Milk carries the same distinctive image all over

the world. Wherever you buy a bar of Cadbury Dairy Milk the pack design will be exactly

the same, only the language will be different.

The famous slogan "glass and a half of full cream milk in every half pound" with the picture

of milk pouring into the chocolate bar, is one of the all-time greats of British advertising.

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ABOUT CADBURY INDIA LTD.

Cadbury India began its operations as a trading concern in 1947. Cadbury in the Indian sub

continent defined the first taste of chocolate. The company today employs nearly 2000 people

across India.

With brands like Dairy Milk, Gems, 5 Star, Bournvita, Perk,

Celebrations, Bytes, Chocki, Delite and Temptations, there is

a Cadbury offering to suit all occasions and moods.

They bring the sweetest of smiles to millions of consumers through their dearly loved brands

distributed through 5.5 lakhs outlets.

Cadbury India's four factories in India churn out close to 8,000 tonnes of chocolate and the

company sells a million bars every day.(locations of factories.)

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PURPOSE AND VALUES

Objective:

Grow shareholder value…over the long term.

Strategy:

Create robust and sustainable regional positions in our core categories of confectionery and

beverages through organic growth, acquisition and disposal.

Process:

They achieve this by Managing For Value.

Managing For Value Process incorporates:

Setting stretched financial objectives.

Adopting Value Based Management for major strategic and operational decisions and

business systems.

Creating an outstanding leadership capability within our management.

Sharpening our company culture to reflect accountability, aggressiveness and

adaptability.

Aligning our management rewards structure with the interests of our shareowners across

the country.

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BRAND BUILDING OF CADBURY DAIRY MILK

The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but the journey

with chocolate lovers in India began in 1948.

The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think of

Cadbury Dairy Milk.

The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury

Dairy Milk with a variety of ingredients and are very popular amongst teens & adults.

Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for

'something sweet' after meals.

Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with

Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of

milk chocolate and white chocolate. Giving consumers an exciting reason to keep coming back

into the fun filled world of Cadbury.

Cadbury Dairy Milk has been the market leader in the chocolate category for years. And has

participated and been a part of every Indian's moments of happiness, joy and celebration. Today,

Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market.

In the early 90's, chocolates were seen as 'meant for kids', usually a reward or a bribe for

children. In the Mid 90's the category was re-defined by the very popular `Real Taste of Life'

campaign, shifting the focus from `just for kids' to the `kid in all of us'. It appealed to the child in

every adult. And Cadbury Dairy Milk became the perfect expression of 'spontaneity' and 'shared

good feelings'.

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The 'Real Taste of Life' campaign had many memorable executions, which people still fondly

remember. However, the one with the "girl dancing on the cricket field" has remained etched in

everyone's memory, as the most spontaneous & un-inhibited expression of happiness.

This campaign went on to be awarded 'The Campaign of the Century', in India at the Abby (Ad

Club, Mumbai) awards.

In the late 90's, to further expand the category, the focus shifted towards widening chocolate

consumption amongst the masses, through the 'Khanewalon Ko Khane Ka Bahana Chahiye'

campaign. This campaign built social acceptance for chocolate consumption amongst adults, by

showcasing collective and shared moments.

More recently, the 'Kuch Meetha Ho Jaaye' campaign associated Cadbury Dairy Milk with

celebratory occasions and the phrase "Pappu Pass Ho Gaya" became part of street language. It

has been adopted by consumers and today is used extensively to express joy in a moment of

achievement / success. The interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze

Lion at the prestigious Cannes Advertising Festival 2006 for 'Best use of internet and new

media'. The idea involved a tie-up with Reliance India Mobile service and allowed students to

check their exam results using their mobile service and encouraged those who passed their

examinations to celebrate with Cadbury Dairy Milk.

The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The Best Integrated

Marketing Campaign and Gold in the Consumer Products category at the EFFIES 2006 (global

benchmark for effective advertising campaigns) awards.

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OTHER BRANDS OF CADBURY

1. CHOCOLATES

5-star.

PERK

A pretty teenager; a long line, and hunger! Rings a bell? That was how Cadbury launched its new

offering; Cadbury Perk in 1996. With its light chocolate and wafer construct, Cadbury Perk

targeted the casual snacking space that was dominated primarily by chips & wafers. With a

catchy jingle and tongue in cheek advertising, this 'anytime, anywhere' snack zoomed right into

the hearts of teenagers.

Raageshwari started the trend of advertising that featured mischievous, bubbly teenagers getting

out of their 'stuck and hungry' situations by having a Cadbury Perk. Cadbury Perk became the

new mini snack in town and its proposition "Thodi si pet pooja" went on to define its role in the

category.

Chocolate lovers for a quarter of a century have indulged their

taste buds with a Cadbury 5 Star. A leading knight in the

Cadbury portfolio and the second largest after Cadbury Dairy

Milk, Cadbury 5 Star moves from strength to strength every year

by increasing its user base.

Launched in 1969 as a bar of chocolate that was hard outside

with soft caramel nougat inside, Cadbury 5 Star has re-invented

itself over the years to keep satisfying the consumers taste for a

high quality & different chocolate eating experience.

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CELEBRATIONS

Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dry-

fruits during festive seasons.

Cadbury Celebrations is available in several assortments: An assortment of chocolates like 5

Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milk

chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut butterscotch and

caramels.

The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is an

exotic range of chocolate covered dry fruits and nuts in various flavours and the premium dark

chocolate range which is exotic dark chocolate in luscious flavours.

Cadbury Celebrations has become a popular brand on occasions such as

Diwali, Rakhi, Dussera puja. It is also a major success as a corporate

gifting brand. The communication is based on the emotional route and the

tag line says "rishte pakne do" which fits with the brand purpose of

strengthening your relationships with something sweet.

TEMPTATIONS ECLAIRS

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GEMS

2. SNACKS

Cadbury Bites

Cadbury Bytes was launched in 2004-05 as Cadbury's foray into the rapidly growing

packaged snack market.

Cadbury Bytes is positioned as the 'only sweet snack' in the world of salty snacks. The

proposition we have arrived at is "Snacking ka meetha funda", where we take a pot-shot at

other snacks, by saying `Har snack namkeen nahi hota'. The product is all about breaking a

cliché and teenagers identify with breaking stereotypes. The new commercials- 'Tommy' and

'Villain', talk about breaking the stereotype.

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3. BEVERAGES

Bournvita

Cadbury was incorporated in India on July 19th, 1948 as a private limited company under the

name of Cadbury-Fry (India). Cadbury Bournvita was launched during the same year.

It is among the oldest brands in the Malt Based Food / Malt Food category with a rich heritage

and has always been known to provide the best nutrition to aid growth and all round

development.

Throughout it's history, Cadbury Bournvita has continuously re-invented itself in terms of

product, packaging, promotion & distribution. The Cadbury lineage and rich brand heritage has

helped the brand maintain its leadership position and image over the last 50 years.

4. CANDY

HALLS

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Halls accounts for 50% of international cough drop sales and is the leading sugar confectionery

brand in the world. In 1930’s, the Hall brothers invented its Mentho-Lyptus formula, using a

combination of menthol and eucalyptus, and began producing cough drops. The cough drops

were introduced into the US during the mid-1950s. Warner-Lambert recognised the potential of

the product and acquired Halls in 1964. In 1971, Warner Lambert began selling Halls under the

Adams family, and the first national television campaign was aired in the US & the results were

a resounding success.

5. GUMS

Bubbaloo

Cadbury India has expanded its confectionary portfolio in 2007 by foraying into the Bubble gum

category with the launch of Bubbaloo Bubblegum- a successful bubblegum brand from its

international portfolio.

Bubbaloo is an innovative soft bubblegum with a centre filled liquid. It is filled with a high level

of a great tasting fruit flavoured liquid that floods your mouth instantly.

Bubaloo is currently available in two yummy flavors- Strawberry and Mixed Fruit.

The communication focuses on the "fun filled liquid centre " of Bubbaloo and is anchored by

“Bubba- the cat”, the international mascot for the brand Bubbaloo.

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CADBURY CELEBRATION

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DIFFERENT PRODUCTS OF CADBURY

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NEW PRODUCT LAUNCHES

Cadbury launches Rich Dry Fruit Collection for gifting this festive season.

Come Diwali and the gifting options for consumers just got better with the launch of Cadbury

Celebrations Rich Dry Fruit Collection a range of premium chocolate gift boxes.

Available in attractive packs, the Collection caters to a premium gifting consumer and is an ideal

festive gift. It is a unique combination of the best Cadbury chocolate and premium dry fruits.

This combination will be available in select outlets in select cities across India for the first time.

The Rich Dry Fruit Collection comes in four different formats. Each of these is a mix of select

premium dry fruits enrobed in rich Cadbury Dairy Milk chocolate. This launch will augment the

existing Diwali offerings from Cadbury such as the Celebration packs with collection of assorted

chocolates. Cadbury Celebrations aims to be the preferred gifting choice among family and

friends this season.

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Cadbury's Creative Launch A new after dinner' segment

Cadbury India Limited, in its endeavor to continuously provide a chocolate- experience, brings

the magic of Cadbury Dairy Milk (CDM) Desserts - with rich indulgent crème center, in exotic

& traditional flavors of Tiramisu and Kalakand. CDM Desserts offer the perfect rounding off

taste, after meal that adds special Meetha’ moments to the family.

The rich tastes of CDM combined with the unique crème center in exotic flavors provide a

special chocolate experience. CDM Desserts add delight to the after-meal moments, especially

with the consumers whose current choice of sweets range from home made delicacies to fruits to

meethai.

Hence CDM Desserts positions itself as the perfect after meal, with the idea “Khaane Ke baad

Kuch Meetha Ho Jaye”.

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BASICS OF PR

Definitions of PUBLIC RELATIONS:-

The business of generating goodwill toward an individual, cause, company, or product.

The acts of communicating what you are to the public. This is not to be confused with

publicity, which is just one of the methods used in communicating the image.

Activity, communications, or press coverage that is designed to enhance the prestige or

goodwill of a company.

Any activities or events that help promote a favorable relationship between a company

and its customers and prospects; activities used to influence the press to print stories that

promote a favorable image of a company and its products or services.

The promotion of a person, company, idea, public body etc. Pictures may be used to

assist in this.

Communication with various sectors of the public to influence their attitudes and

opinions in the interest of promoting a person, product, or idea.

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FUNCTIONS OF PUBLIC RELATIONS DEPARTMENT

The functions to be performed by a public relations department may vary from organisation to

organisation depending upon the nature and activities of a particular organisation. However,

certain standard functions have emerged as common in most balanced departments. They are

discussed below:

Policy:

Public relations policy is required for every organisation. A policy is a statement of guidelines to

be followed in the company. The department has to develop and recommend corporate public

relations policies. It has to contribute the public relations view point which helps in the

formulation of decision. Its function is not merely to provide the policy mainly to the top

management but also to the other sections and divisions.

Publicity:

Corporate publicity is necessary to interact with the public. The department has to undertake the

development and issuance of announcements of corporate activities to external communication

media. It has to handle inquiries from the press. It is a part of the functions of the department to

develop and place promotional and publicity about the company as a whole or any of its units.

Product Publicity:

Corporate publicity is different from the product publicity. In this, focus is on the products and

how to popularize the product. This includes both new products as well as existing ones. It

includes the announcement of new products through the editorial channels of the communication

media. The department has to develop and execute the promotional product publicity campaigns.

Relations with the Government:

Relations with the government cannot be overlooked. In all spheres of activities the government

interferes, regulates, controls and supervises. It is necessary to maintain liaison with appropriate

governmental departments. This liaison covers both the local level, state level and national level.

Besides, governmental relations include:

• Advise action as needed

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• Report trends in government affecting the company

• Help in preparing and directing corporate appearances before investigating bodies of legislative

hearings.

• Direct programmes designed to promote the company’s point of view in legislative or

regulatory matters.

Community Relations:

Community contacts should be planned. It is the performance and or coordination of corporate

good neighbour activities, including compliance with environmental protection standards,

fostering equal employment opportunity, cooperating in urban improvement programmes, and

developing community understanding of a company’s problems and needs.

Shareholders relations:

Relations with the corporate stock- holders are more important to attract public money. This

takes the form of communication between the company and the shareholders in particular and

also the investment community in general. It is necessary for the development and acceptance of

the company among the investors by broadening the exposure of the company’s policy and

financial results in the investment community. This function includes preparation of annual

reports, quarterly reports, dividend cheque inserts etc. It has to plan and stage the annual

meetings of stockholders and appearances before meetings of security analysis.

Promotion Programmes:

Public relations promotion programmes should be formulated and implemented. This may

broadly cover institutional advertising, public relations literature and special events.

Donations:

A corporate donation policy should be developed for company contributions. Various aspects

involved in this function are processing requests for donations, administering company’s

foundation, and the conduct of employee’s solicitations for approved drives.

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Employee Publications:

The public relations department has to prepare and publish employee magazines, newspapers,

bulletins, management communication etc

Guest relations:

The department must undertake guest reception activities.

Coordinating activities.

Conveying and Interpretation.

Advisory function.

Instructing by doing.

Public relations education programme.

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THE NEED FOR PUBLIC RELATIONS

'Why Public Relations?' is well explained with the help of the following paragraphs:

What we require is a fair means of information which eliminates existing or awakened

suspicions, which builds up understanding, and creates confidence. This is what we call Public

Relations.

Going by the definition of public relations, the mutuality and understanding is based on

interaction between consideration for public opinion, and the need of the communicator or

organization to inform or establish contact. Understanding is created by providing insight into,

and reporting on all essential matters. Confidence is cultivated by bringing the aim of the

organization into harmony with the public interest, thus winning and maintaining goodwill

among the general public.

From all these facts, it is clear what the purpose of this' Activity in, for, and with, the public' is :

To act and not to react; to create an atmosphere of confidence by an active information policy,

the passive part of which consists in answering queries; to inform the public and exert influence

towards the inside as a form of corporate and social counter-control to establish direct or in direct

connections with the public, to fulfil a kind of interpreter's function towards the public and to

control communicative reaction. The desired effect can only be achieved if the information or

message is true and verifiable, clearly formulated and readily understandable, and is also in

conformity with the daily practice of living and experiencing.

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SCOPE OF PUBLIC RELATIONS

There has been misconceived opinion about the scope or field of public relations activities. In

lectures and articles published one is apt to gain the impression that public relations concern

industry and commerce only. In such an instance it can only be said that one tends to overlook

the fact that public relations, particularly in this decade, has entered all sectors of public life, not

excluding religion, and that it how has a virtually unlimited field of application. The following

examples demonstrate the wide field of public relations activities in industry and commerce.

In our market economy there are information gaps which cannot be filled by the interaction of

supply and demand via prices, costs or wages.

This is when public relations activity steps in. It provides information on Planning technical and

organizational developments, inventions and their potential utilization, or it issues at regular

intervals company reports which provide a deeper insight into the structure of the corporation

than the public can otherwise obtain.

The relations activity is becoming increasingly necessary for the procurement of economically

essential production factors. It makes it easier for corporations to tap the money-market or to

finance their projects by issuing bonds or shares. It can also help them to find new personnel

when necessary, and thus level out personnel fluctuation without reducing the desired working

mobility. Finally it is easier for a corporation to acquire land from a community if the

corporation cultivates public relations and endeavors to bring its own interests in harmony with

those of the community.

Public relations activity may support marketing. In its various forms it may contribute decisively

to successful frictionless business activity. The principles of reciprocity underlying public

relations is for the corporation an incentive to improve performance, because it helps the

Corporation to overcome a difficult situation. Today the public relations profession has entered

even in to the fields of hospitality, tourism, institutes, in education and to a variety of others.

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THE CADBURY‟S WORM CONTROVERSY

RISE OF THE CONTROVERSY

State FDA Commissioner Uttam Khobragade said a group of people approached him with

chocolates that had worms in them. Sebastian Fernandez had purchased Cadbury Dairy Milk

chocolate from a shop at Pick and Pay, Vile Parle. Fernandes discovered that the chocolate

(Batch No 28F3I10703) had worms in it.

Fernandes complained to the shopkeeper Jitendra Shah who later informed Pravin Marve, vice-

president, Andheri Vyapar Manch. Marve then contacted the FDA and gave them the sample.

FDA Joint Commissioner Hindurao Salunkhe said Cadbury's Talegaon plant will also be

inspected.

Bharat Puri, managing director of Cadbury India will never forget the batch of Dairy Milk

chocolates numbered 28F311 manufactured last year at the company's plant in Thane, near

Mumbai.

That was the worm-infested batch that triggered a crisis for the company that had always prided

itself on its squeaky clean image.

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EFFECTS OF THE CONTROVERSY ON CADBURY

The discovery of worms in some samples of Cadbury’s Chocolate in early October 2003 created

one of the biggest controversies in India against a Multi National reputed for being a benchmark

of QUALITY.

The state Food and Drug Administration has ordered seizure of Cadbury's Dairy Milk chocolates

from all over Maharashtra after worms were found in two of them in Mumbai.

Cadbury India, whose chocolates had ridden into controversy late last year during the festival

season because worms were discovered in some stocks of its Dairy Milk chocolates is probably

hoping the association with Bachchan will help consumers forget the bad press the company got

on account of the discovery.

The Food and Drug Administration had then seized the company's stocks and the Cadbury India

management had explained it was bad storage practices by retailers and distributors that had led

to the worms. Cadbury India's sales fell following the discovery. And even the government got

into the act with the central health ministry asking for a report on the controversy.

The "worms‟ controversy" came at the worst time. The next few months were the peak

season of Diwali, Eid & Christmas. Cadbury sells almost 1,000 tonnes of chocolates during

Diwali. In that year, the sales during festival season dropped by 30 per cent. The company saw

its value share melt from 73 per cent in October 2003 to 69.4 per cent in January 2004. In May,

however, it inched up to 71 per cent. CDM sales volumes declined from 68 per cent in

October’03 to 64 per cent in January 2004 Clearly, the worm controversy took a toll on

Cadbury's bottom-line. For the year ended December 2003, its net profit fell 37 per cent to Rs

45.6 crore (Rs 456 million) as compared with a 21 per cent increase in the previous year.

The controversy created an deep adverse impact on the company with their sales not only

drastically dipping down, but at the same time allowing the competitors to establish their

foothold and taking maximum advantage of Cadbury’s misfortune.

The controversy, and the adverse publicity received in several countries, set back its plan of

outsourcing model which would have resulted in significant revenue generation, several months

back.

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ROLE OF THE PUBLIC RELATIONS

PR concerns the total communications of your total organization/group of organizations.

PUBLIC RELATIONS FORM AN INDISPENSABLE PART OF ANY ORGANISTION.

Public relations include ongoing activities to ensure the company has a strong public image.

Public relations activities include helping the public to understand the company and its products.

Often, public relations are conducted through the media that is, newspapers, television,

magazines, etc.

It is unlike advertising, where you are sharing skills of planning, creative and media buying

teams with an out-sourced agency. PR calls for a very intimate understanding of the total inner

workings of your organisation at all levels - workers to Board levels. It requires the integration of

knowledge and communications. PR if used properly can have an impact 10 times higher

than Advertising. And at times, especially during crisis advertising doesn‟t work but only

PR works.

It is not a part time job for a Marketing Services Manager. If it is to work and serve the larger

objective, the PR department should be independent, servicing others like production, personnel,

marketing, finance, corporate agendas. Therefore, the PR Head should be part of the top

management team - reporting directly to the CEO. He also needs to share everyone's

confidences.

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PR RESCUES CADBURY

The PR department of Cadbury’s played a very effective role in managing the reputation and

keeping up the goodwill of the company.

After being struck with the Worm Controversy it was not possible to create a very good impact

on consumers who trusted the company the most. But through the efforts and a good PR team

Cadbury’s managed to wriggle itself out of the controversy with a clean chit.

STEPS TAKEN TO SOLVE THE CONTROVERSY

1. NOT DENYING THE FACT

It helped that the Maharashtra Food and Drug Administration had given a clean chit to the

company's two plants in the state. Cadbury went into overdrive to tell consumers that improper

storage of what is essentially a perishable commodity might lead to worm infestation.

That last November Bharat Puri, Cadbury's mild-mannered MD, went to media offices around

the country meeting reporters, answering mostly hostile queries and patiently explaining the

company's stand on the issue.

"Unlike the cola companies which were caught in a controversy just a month earlier and

displayed an ostrich-like attitude, Cadbury did not go into denial mode. It accepted that there was

a problem, which may not have been of its own making, and made a commitment to the

consumer that it would plug all possible safety loopholes," says a Mumbai-based brand

consultant.

As a result Cadbury improved the packaging and paid more attention to the way its chocolates

were stored by nearly 6,50,000 retailers across the country.

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2. TAKING PRECAUTIONS

'Project Vishwas' - “Steps to ensure quality & regain the confidence”

Following the controversy over infestation in its chocolates, Cadbury India Ltd unveiled 'Project

Vishwas', a plan involving distribution and retail channels to ensure the quality of its products.

The Vishwas programme was intended to build awareness among retailers on storage

requirements for chocolates, provide assistance in improving storage conditions and strengthen

packaging of the company's range of products. Cadbury reduced the number of chocolates in its

bulk packets to 22 bars from the present 60 bars. These helped stockists display and sell the

products "safely and hygienically". 1,90,000 retailers in key states were covered under this

awareness programme.

"What you see now is the most over-engineered packaging for a Dairy Milk chocolate anywhere

in the world. Even our festival packs come with a tamper-proof outer sealing and improved

packaging inside," explains Purohit.

The new double packaging even for the smallest offering, the 13 gm Rs 5 Cadbury Dairy Milk,

had the bar wrapped in aluminium foil and enclosed in a polyflow pack, which was sealed on all

sides.

The larger Cadbury Dairy Milk packs came in poly-coated aluminium foil, which was heat-

sealed and then wrapped in the branded outer package. Both these initiatives are country specific

and Cadbury invested nearly Rs 25 crore (Rs 250 million) this year on new machinery for the

improved packaging.

The company's team of quality control managers, along with around 300 sales staff, checked

over 50,000 retail outlets in Maharashtra and replaced all questionable stocks with immediate

effect. The company also carried out quality checks at its facilities as well as its carrying and

forwarding warehouses and distributor warehouses and found products free of infestation.

3. GAINING BACK TRUST

The Big B promoted the Big C in the chocolate business - Cadbury in India. Indian cine superstar

Amitabh Bachchan has signed on to become the brand ambassador of the chocolate major for

two years.

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The Big „B‟ FACTOR

The big factor that has pushed up CDM sales is the Amitabh Bachchan campaign. It helped

restore consumers' faith in the quality of the product. In early January that year, Cadbury

appointed Amitabh Bachchan as its 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, be it in print, on television or the great outdoors, the

company's managing director Bharat Puri has been quoted as saying in media reports.

With the help of its Public Relations Dept. and advertising agency O&M, it created a campaign

which aimed for both rational and emotional appeal.

One of the ads showed Bachhan visiting a Cadbury plant, inspecting the systems and processes

and finally consuming a bar of chocolate to be convinced that there's nothing wrong with the

brand.

Addressing his audience, Mr. Bachchan says, "Mujhe aapse kuch kehna hai, jis kaam mein

manushya ki antar aatma uske saath na ho, uss kaam ko karne se usse sab kuch mil sakta

hai... man ki shaanti nahin mil sakti. Isliye jab Cadbury walon ne mujhe kaha ki unki baat

main aap tak pahunchaoon, to pachpan saalon se Cadbury khaane wala main bhi thoda sa

hitchkichaya.... ...Maine unse ek sawaal poocha, ki kya iske baad main chain ki neend so

paoonga ya nahin, to jawaab mein voh mujhe apni factory le gaye."

Walking into the Cadbury factory, he takes a look at their complete manufacturing process and

continues, "Aur mujhe apni international technology.... apne kade quality controls aur double

protection... ...packaging dikhayi." Saying which he takes a bite of the chocolate. Finally

giving his personal assurance and approval he says, "Aaj kal mein badi chain ki neend so

raha hoon."

"Ab aapki favourite Cadbury Dairy Milk naye purity seal pack mein."

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The other ad featured Bachhan and his granddaughter to emphasize that the product was

absolutely safe for children.

Cadbury stepped up it’s advertising spend significantly that year to nearly Rs 40 crore (Rs 400

million). With a turnover of Rs 729 crore (Rs 7.29 billion) in 2003, Cadbury has a 70 per cent

market share in chocolates and Dairy Milk chocolate has 30 per cent market share, despite

competitors like Nestle and Amul.

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BENEFITS OF A GOOD PR CAMPAIGN - CADBURY‟S SINGING SWEETLY AGAIN

Cadbury’s reiterated that all through the 55 years of leadership in India, that it has remained

synonymous with chocolates and have remained committed to high quality and consumer

satisfaction." All is well that ends well. And for Cadbury‟s India, nothing can be sweeter

than regaining back the Consumer Confidence. Thanks to quick action taken to recover

the damage done by the worm controversy like Operaion Vishwas, adopting new

packaging, massive advertising with Mr. Amitabh Bachchan as their brand ambassador

and company's managing director Bharat Puri‟ PR skills in terms of handling of the media

and press, attending consumer grievances on a personal, level cool headedness & down to

earth attitude resulted in Cadbury‟s regained its market share.

The survey conducted by the company says that consumers have long forgotten the controversy

and are back to their merry chocolate-chomping ways. Sales were back to the pre-controversy

levels. Consumer confidence in the product was back and there was a steady progression in sales.

The company bounced back soon after the campaign hit the screens. Between October 2003 and

January 2004, Cadbury's value share melted from 73 per cent in to 69.4 per cent. The recovery

began in May 2004 when Cadbury's value share went up to 71 per cent. The company posted a

high double digit sales growth in that year end.

Cadbury's Indian operations are not just the largest in Asia but also the cheapest. In India,

Cadbury has the largest market share anywhere in the world and has been the fastest growing

FMCG Company in the those last three years with a compound annual growth rate of 12.5 per

cent.

So, despite the bitter moments of the that year, the company did surpirisingly well in the

succeeding year.

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PRIMARY MARKET RESEARCH AND ANALYSIS

A primary market research was conducted on 6th November 2009 at a local Mom and Pop Kirana

/ Pan Bidi and Sweets Store in Mumbai with a respondent size of 30 people across various

demographic and age profile. The 30 respondents who purchased Chocolates / Cadbury / Bars /

Candy from that outlet were divided into 2 groups.

Group 1. 15 of the customers who purchased Cadbury product and

Group 2. The other 15 who purchased non Cadbury products like Nestle and Amul Chocolates /

Bars / Candy

Each of the 30 respondents were asked a single question and their response was noted down.

Question asked to the Group 1

Q. Do you remember the Cadbury Worm Issue that took place few years back while purchasing

or consuming Cadbury?

Ans. Yes or No.

All the 15 respondents replied No.

Question asked to the Group 2

Q. Is it that you are still skeptical of Worms can be present in Cadbury as happened few years

back and that’s the reason you are not buying Cadbury product?

Ans. Yes or No.

All the 15 respondents replied No.

Thus a clear cut conclusion can be drawn that consumers have long forgotten the

Cadbury‟s Worm Incident and that Incident has no influence in whatsoever form in the

buying behavior of consumers.