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Case Study: Cadbury Crisis Management (Worm Controversy)

In India chocolate consumption was very low in the early 90’s but as the decade advanced the consumption drastically increased. The late 90’s witnessed a good chocolate market condition. The chocolate market in India is dominated by two multinational companies — Cadbury and Nestle. The national companies – Amul and Campco are other candidates in this race. Cadbury holds more than 70% of the total share of the market. Nestle has emerged by holding almost 20% of the total share. Apart from chocolate segment, there is also a big confectionery segment which is flooded by companies like Parry’s, Ravalgaon, Candico and Nutrine. All these are leading national players. The multinational companies like the Cadbury, Nestle and Perfetti are the new entrants in the sugar confectionery market. (Management paradise) There are several others which have a minor share in these two segments. According to statistics, the chocolate consumption in India is extremely low. If per capita consumption is considered, it comes to only 160gms in the urban areas. This amount is very low compared to the developed countries where the per capita consumption is more than 8-10kg. Observing this fact it would not be appropriate to consider the rural areas of India as it will be extremely low. This low consumption is owing to the notion behind consuming chocolates. Indians eat chocolates as indulgence and not as snack food. The major target population is the children. India has witnessed a slow growth rate of about 10% pa from the 70’s to the 80’s. But as the century advanced the market stagnated. This was the time when Cadbury launched its product- Dairy Milk as an anytime product rather than an occasional luxury. All the advertisements of Dairy Milk paid a full attention to adults and not children. And this proved to be the major breakthrough for Cadbury as it tried to break the conventional ideas of the Indians about chocolate.

The Worm Controversy

On October 2003, just a month before Diwali, the Food and Drug Administration Commissioner received complaints about infestation in two bars of Cadbury Dairy Milk, Cadbury India’s flagship brand with over 70% market share. He ordered an enquiry and went directly to the media with a statement. Over the following 3-week period, resultant adverse media coverage touched close to 1000 clips in print and 120 on TV news channels. In India, where Cadbury is synonymous with chocolate, the company’s reputation and credibility was under intense scrutiny. Sales volumes came down drastically in the first 10 weeks, which was the festival season; retailer stocking and display dropped, employee morale – especially that of the sales team – was shaken. The challenge was to restore confidence in the key stakeholders (consumers, trade and employees, particularly the sales team) and build back credibility for the corporate brand through the same channels (the media) that had questioned it.

In defense, Cadbury issued a statement that the infestation was not possible at the manufacturing stage and poor storage at the retailers was the most likely cause of the reported case of worms. But the FDA didn’t buy that. FDA commisioner, Uttam Khobragade told CNBC-TV18, “It was presumed that worms got into it at the storage level, but then what about the packing – packaging was not proper or airtight, either ways it’s a manufacturing defect with unhygienic conditions or improper packaging.”

That was followed by allegations and counter-allegations between Cadbury and FDA. The heat of negative publicity melted Cadbury’s sales by 30 per cent, at a time when it sees a festive spike of 15 per cent.

For the first time, Cadbury’s advertising went off air for a month and a half after Diwali, following the controversy. Consumers seemed to ignore their chocolate cravings.

Remedy for the Worm Controversy

A focused and intense communications program was implemented over the next six months to rebuild credibility and restore confidence among the key stakeholders. The results:

In media, the key message that infestation was a storage-linked problem, not manufacturing related , found widespread acceptance. Across the board, media carried Cadbury’s point-of-view on the issue.
Sales volumes climbed back to almost to pre-crisis levels eight weeks after the launch of new packaging — a concrete step taken by the company to minimize the incidence of infestation. This reflected consumer confidence in the brand and the company.
There was significant upward movement in ratings amongst consumers on parameters like company’s image, responsiveness of company and behavioral parameters like intention to buy Cadbury chocolates.

The last two helped to restore faith in the corporate brand among the trade and employees.

Marketing Challenges and Objectives

The incident came close on the heels of a cola controversy where a scientific laboratory declared colas unsafe due to high levels of pesticide. The jury was still out on that issue and so this incident acquired political overtones with parties decrying Cadbury as an irresponsible MNC. Andrea Dawson- Shepherd, Global Corporate Communication Counsel, Cadbury Schweppes called it ‘the worst worm infestation-related crisis anywhere in the world’.

The immediate objective was to get the following key messages across:

Infestation could never occur at the manufacturing stage
The problem was storage linked; this without alienating trade channels
Cadbury Dairy Milk continued to be safe for consumption

The challenge was to restore confidence in the key stakeholders (trade and employees, particularly salespersons) and build back credibility for the corporate brand through the same channels (the media) that questioned it.

It was decided from the start to address the issue head-on and take whatever steps were necessary to restore confidence. Having historically maintained a low profile with the media and let its brands and its performance speak for it, the company began to cultivate relationships with the media and turn it into an ally and a credible, independent endorser to rebuild stakeholder confidence.

Phase 1: Presenting Cadbury’s View (October-December 2003)

The day the crisis broke, the agency set up a media desk to ensure that no media query went unanswered. From Day 1 every story carried Cadbury’s point of view. At the first media briefing organised by the agency, the Cadbury’s Managing Director addressed consumer concerns with the following key messages:

Infestation is a storage linked problem.
It is safe to eat Cadbury chocolates.
Consumers must exercise the same care in purchasing a chocolate as they would when buying any food item.

At a second media briefing about two weeks after the first incident was reported, Cadbury announced significant steps to restore consumer confidence called Project Vishwas (Trust), this entailed:

A retail monitoring and education program undertaken on a war footing to address storage problems.
Significant packaging changes to ‘reduce dependency on storage conditions as much as possible’ –to be launched within two months.

An Editorial Outreach program with 31 media editors across 5 most affected cities was orchestrated by the agency to get senior Cadbury spokespeople to share their version of events in one-on-one meetings. The trade, and consumers, were reached nationally through a press ad ‘Facts about Cadbury’, released in 55 publications in 11 languages. It presented facts about Cadbury manufacturing and storage and highlighted corrective steps being taken by the company. This was a public statement of the corporate stand on the issue. The trade was supported with posters and leaflets to help them share Cadbury point-of-view with their customers. A response cell with a toll free number and an e-mail id were put in place to give trade a means to directly contact the company with any issues they faced- reinforcing the company’s commitment to quality. From the beginning, a series of town hall meetings were held with senior managers addressing employees

to ensure they were updated on the proactive actions being taken by Cadbury to manage media, help trade and ensure future occurrences of such incidents were kept to the minimum. Regular email updates from the MD were also used to communicate the company’s point of view and to ensure consistency of messaging since employees are the company’s ambassadors.

Phase 2: Packaging Change (January- March 2004)

The new ‘purity sealed’ packaging was launched in January 2004. By investing up to Rs 15 crore (Rs 150 million) on imported machinery, Cadbury’s revamped the packaging of Dairy Milk. The metallic poly-flow, was costlier by 10-15 per cent, but Cadbury didn’t hike the pack price.This entailed double wrapping for maximum protection to reducing the possibility of infestation. This was a big step involving investment of millions of dollars and getting on stream a production process in 8 weeks, that would normally take about six months. To communicate these significant changes the company was making, Cadbury brought in a brand ambassador to reinforce the credibility that the company had demonstrated through its actions. Amitabh Bachchan , a legendary Indian film star, was chosen, as he embodied the values of Cadbury as a brand and connected with all of India – mothers, teenagers, children, media persons and trader partners.

cadbury crisis management worm controversy case study

A media conference was organized in Mumbai to launch the new packaging. And this was followed with press conferences in cities worst affected by the crisis – Pune and Nagpur in Maharashtra and Cochin in Kerala. In these conferences, media persons were encouraged to compare the old and new packs with an innovative comparison kit and experience the significant changes in packaging first hand. An audio visual with a message from Amitabh Bachchan, was beamed to build credibility and excitement. Given that much of the damage had come from television coverage, a video news release with packaging shots and factory shots was given to television channels to control the visual messaging. Simultaneously, senior Cadbury spokespersons had one-on-ones with the Editors of the Outreach program initiated in November 2003.

Another audio visual with a message from the star was used in a series of sales conferences to enthuse and reassure salespersons. And this helped to rebuild confidence in the salespersons to go and sell the product more convincingly and confidently to the trade. The announcement of the new pack was done through a testimonial advertisement on TV called ‘Sincerity’. It consciously addressed the problem head-on, with the superstar talking straight into camera about how before doing the ad he first convinced himself about the quality of Cadbury chocolates by visiting the factory. Consumers respected the brand for not skirting the issue but acknowledging it and giving a solution to the problem. This was Public Relations using a TV Commercial to get key messages across!

Campaign Results:

Media Coverage : The media relationship effort clearly helped in making media accept that the infestation was genuinely caused by storage-linked problems. From the start, all media reports carried the Cadbury’s point-of-view. Bad news automatically gets great coverage. However, the agency helped Cadbury get a total of 378 clips in over 11 languages covering the new packaging, and its benefits, in January 2004. The Business Today clip is a typical representation of the changed media perception and a better understanding of the problem over a three month period.
Sales : Sales volumes, which declined drastically between week 1 and week 10 of crisis, climbed back almost to the pre-incident levels by week. within 8 weeks of introduction of new packaging and communication. This is a clear reflection of restoration of consumer and hence trade confidence in the corporate brand.
Image : There was significant upward movement in ratings amongst consumers on parameters like company image, responsiveness of company and behavioral 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.

Role of Public Relations

Public Relations concerns the total communications of your total organization/group of organizations. 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. 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.

The PR department of Cadbury’s played a very effective role in managing the reputation and keeping up the goodwill of the company.

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Cadbury Crisis Management Case Study: Preserving Trust in Times of Crisis

In the realm of beloved chocolate brands, Cadbury has long held a cherished place in the hearts and taste buds of consumers worldwide.

However, even the most esteemed companies are not immune to crises that can pose significant threats to their reputation.

Effective crisis management becomes paramount in such moments, serving as the linchpin in preserving brand equity and consumer trust.

In this blog post, we delve into the realm of Cadbury’s crisis management, exploring a notable incident that tested the brand’s resilience and examining the strategies they employed to navigate the storm.

By understanding Cadbury’s response and the lessons gleaned from their experience, we can gain valuable insights into crisis management in the food industry and the critical importance of safeguarding brand reputation.

The Cadbury crisis: an overview

In October 2003, just a month before the festive season of Diwali, customers in Mumbai reported the discovery of worms in Cadbury Dairy Milk chocolates. Responding promptly, the Maharashtra Food and Drug Administration (FDA) took action by seizing chocolate stocks produced at Cadbury’s Pune plant.

Cadbury defended itself by stating that the infestation could not have occurred during the manufacturing process and suggested that poor storage at retailers might have been the cause of the reported worm cases.

However, the FDA remained unconvinced. Uttam Khobragade, the FDA commissioner, expressed doubts, stating, “While it was presumed that worms entered the chocolates during storage, what about the packaging? If the packaging was not proper or airtight, it could be considered a manufacturing defect due to unhygienic conditions or improper packaging.”

This exchange of allegations and counter-allegations between Cadbury and the FDA led to negative publicity that significantly impacted Cadbury’s sales. During a time when Cadbury typically experiences a 15% sales boost due to festive season demand, their sales dropped by 30%. As a result, Cadbury’s advertising went off air for a month and a half following Diwali, as consumers seemed to lose interest in their chocolate cravings.

Facing intense scrutiny, Cadbury took action by launching an education initiative called “Vishwa’s” in October itself. This initiative aimed to educate 190,000 retailers in key states. However, it was what Cadbury did in January 2004 that truly helped restore the brand’s reputation.

Investing around Rs 15 crore (Rs 150 million), Cadbury revamped the packaging of Dairy Milk by introducing imported machinery. The new metallic poly-flow packaging, despite being costlier by 10-15%, did not lead to a price increase for the product.

Bharat Puri, managing director of Cadbury’s India, stated, “Although we are addressing a few bars out of the 30 million we sell every month, we believe that as a responsible company, consumers should have complete faith in our products. So, even if it requires significant investment and change, we must not let consumer confidence erode.”

Simultaneously, Cadbury enlisted the support of brand ambassador Amitabh Bachchan for extensive endorsement, with the actor risking his personal reputation for the brand.

Cadbury also increased advertising spending for the January to March quarter by more than 15%. The brand’s recovery began in May 2004, and by June, Cadbury claimed that consumer confidence had been restored. Experts believe that Cadbury’s success was due to their proactive and direct approach in addressing the crisis. Moreover, consumers were more forgiving because of the emotional connection they had with the brand in India.

Explanation of the potential impact on Cadbury’s reputation and consumer trust

The potential impact of the crisis on Cadbury’s reputation and consumer trust cannot be overstated. Cadbury had spent years cultivating a strong brand image built on trust, quality, and indulgence.

Consumers who had long associated Cadbury with delightful moments and safe indulgence were suddenly confronted with doubts and concerns about the integrity of the brand.

The presence of foreign objects in their beloved chocolate bars not only raised immediate health and safety worries but also shook the trust that consumers had placed in Cadbury’s manufacturing processes.

The crisis threatened to erode the emotional connection between Cadbury and its customers, potentially leading to long-lasting damage to the brand’s reputation and a loss of consumer loyalty. The way Cadbury handled the crisis would be critical in determining whether they could restore faith in their products and reassure customers that their commitment to quality and safety remained unwavering.

Cadbury’s Response: Swift and Transparent Action

Here are three points that explain the response of Cadbury to the crisis:

A. Immediate actions taken by Cadbury to address the crisis

Recognizing the urgency of the situation, Cadbury swiftly sprang into action to address the crisis and mitigate its impact on consumer trust. Their response was marked by a combination of transparency, accountability, and proactive measures. First and foremost, Cadbury initiated an immediate recall of the affected products from the market, demonstrating their commitment to ensuring consumer safety.

This recall was accompanied by clear and concise public announcements, both through traditional media channels and online platforms, informing consumers about the issue and advising them to refrain from consuming the affected products.

Cadbury launched an internal investigation in collaboration with independent third-party experts. This step aimed to determine how the foreign objects had made their way into the production process and identify any potential lapses in quality control.

In addition to the recall and investigation, Cadbury established a dedicated consumer helpline and email contact to address any concerns or inquiries from customers. This direct line of communication allowed affected individuals to seek information and assistance, demonstrating Cadbury’s commitment to maintaining open dialogue with their consumer base.

Moreover, Cadbury proactively engaged with regulatory bodies, such as food safety authorities and government agencies, to ensure compliance with relevant regulations and collaborate on resolving the crisis. This collaboration helped in conducting thorough investigations, sharing information, and implementing corrective measures.

Throughout their response, Cadbury remained transparent, providing regular updates to the public and stakeholders on the progress made in resolving the crisis. By openly acknowledging the issue and taking swift action, Cadbury aimed to rebuild consumer trust and demonstrate their commitment to the highest standards of product safety and quality.

B. Emphasis on transparency, open communication, and acknowledgement of the issue

Cadbury recognized the critical role of transparency, open communication, and sincere acknowledgement in their crisis management strategy. Understanding that silence or evasion could further erode consumer trust, they chose a different path.

From the onset, Cadbury openly acknowledged the issue, taking full responsibility for the presence of foreign objects in their products. They did not attempt to downplay or minimize the severity of the situation, but rather acknowledged the potential risks and concerns that consumers may have.

To ensure transparent communication, Cadbury provided regular updates to the public and stakeholders about the progress of their investigations, steps taken to address the issue, and any findings or developments. This transparency helped to build confidence among consumers that Cadbury was actively working to rectify the situation and prevent similar incidents in the future.

Moreover, Cadbury prioritized open communication channels with their consumers. They promptly established a dedicated helpline and email contact to address individual inquiries and concerns. By providing accessible means for consumers to voice their questions or fears, Cadbury demonstrated a commitment to engaging in two-way communication and actively listening to their customers.

Engagement with customers, media, and regulatory bodies

Cadbury demonstrated proactive engagement with various stakeholders throughout the crisis, including customers, media, and regulatory bodies. Here are some examples of their efforts:

Customers: Cadbury promptly set up a dedicated helpline and email contact to address customer inquiries, concerns, and feedback. This direct line of communication allowed affected individuals to seek information, share their experiences, and receive assistance from Cadbury’s customer service team.
Media: Cadbury issued press releases and media statements to communicate their response to the crisis, including the immediate recall, investigation, and measures being implemented to ensure product safety. These official statements aimed to provide accurate information and address media inquiries promptly.
Regulatory bodies: Cadbury collaborated closely with relevant food safety authorities and regulatory bodies to ensure compliance with regulations and to share information regarding the crisis. This collaboration helped in conducting thorough investigations and implementing appropriate corrective actions.

Evaluation of Cadbury’s crisis management approach and its effectiveness

Cadbury’s crisis management approach can be evaluated as highly effective based on several key factors:

Swift and proactive response: Cadbury’s immediate actions, including the recall of affected products and launching an internal investigation, demonstrated a sense of urgency and a commitment to addressing the crisis promptly. This swift response helped contain the situation and prevent further harm to consumers.
Transparency and open communication: Cadbury’s emphasis on transparency and open communication was commendable. They openly acknowledged the issue, took responsibility, and provided regular updates to the public, customers, media, and regulatory bodies. This transparency fostered trust and allowed stakeholders to stay informed throughout the crisis.
Stakeholder engagement: Cadbury actively engaged with stakeholders such as customers, media, and regulatory bodies. They established a dedicated helpline and email contact for customers, responded to media inquiries, and collaborated with regulatory authorities. This proactive engagement demonstrated a commitment to listening, addressing concerns, and working collaboratively to resolve the crisis.
Accountability and commitment to quality: By taking responsibility for the contamination incident, Cadbury showed accountability for the lapse in their manufacturing processes. They acknowledged the potential harm caused to consumers and reassured them of their commitment to maintaining the highest standards of quality and safety.
Learning and improvement: Cadbury’s crisis management approach also involved conducting internal investigations, collaborating with third-party experts, and implementing corrective measures. This commitment to learning from the incident and making necessary improvements indicated a proactive approach to preventing future occurrences and continuously enhancing product safety.

Identification of key lessons and best practices for crisis management in the food industry

Identification of key lessons and best practices for crisis management in the food industry:

Prioritize consumer safety: The primary focus during a crisis in the food industry should be on ensuring consumer safety. Swift actions, such as recalls and investigations, must be taken to address any potential risks and protect consumers from harm.
Transparency and open communication: Transparency is crucial in maintaining trust during a crisis. Companies should openly acknowledge the issue, provide timely and accurate information to stakeholders, and communicate updates regularly. This includes engaging with customers, media, and regulatory bodies to address concerns and share progress.
Swift response and proactive measures: Time is of the essence in crisis management. Acting swiftly to contain the issue, launching investigations, and implementing corrective actions demonstrate a commitment to resolving the crisis effectively and minimizing its impact.
Establish a dedicated crisis management team: Having a designated crisis management team with clear roles and responsibilities is essential. This team should be equipped to handle crisis situations, make quick decisions, and coordinate communication across various channels.
Collaborate with stakeholders: Engage with relevant stakeholders, including customers, media, and regulatory bodies. Collaborating with regulatory authorities ensures compliance and regulatory support, while open communication with customers and media helps address concerns, provide accurate information, and rebuild trust.
Learn from the crisis: Conduct thorough investigations to identify the root cause of the crisis. This allows for improvements in manufacturing processes, quality control measures, and overall safety protocols to prevent similar incidents in the future. Continuously learning and adapting based on the crisis experience is vital.
Preparedness through crisis simulations: Conducting crisis simulations and drills in advance can help organizations prepare for potential crises. These simulations allow teams to practice their response strategies, identify gaps, and refine their crisis management plans.
Monitor and respond to social media : Social media plays a significant role in crisis communication. Monitor social media platforms to gauge public sentiment, address customer concerns, and promptly respond to queries or complaints.
Maintain brand consistency: During a crisis, it is essential to maintain consistency in messaging and actions across all communication channels. This consistency helps in building trust and avoiding confusion among stakeholders.
Rebuild trust through actions: Regaining consumer trust takes time. Implement measures to enhance product safety, quality control, and quality assurance processes. Launch consumer-centric initiatives and communicate these actions to demonstrate the brand’s commitment to customer satisfaction and safety.

Final Words

Cadbury’s crisis management approach serves as an excellent example of effective strategies and best practices in the food industry. By swiftly addressing the crisis, prioritizing consumer safety, and embracing transparency, Cadbury demonstrated their commitment to their customers and their brand integrity.

The lessons learned from Cadbury’s crisis management are applicable to any organization in the food industry. Prioritizing consumer safety should always be the guiding principle, followed by open communication with stakeholders and a proactive approach to resolving the issue.

Remember, a crisis can be an opportunity to showcase a company’s resilience and commitment to its customers. By implementing these best practices and being prepared, organizations can navigate crises with greater confidence, protect their brand reputation, and rebuild trust even in the face of adversity.

About The Author

Tahir Abbas

People Centric Organizational Change – Examples, Challenges and Future

How to Write a Business Case for Training? – Explained

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Cadbury's worm issue case study by chaithanya & dhanya

Cadbury's worm issue-Case study

Presented By,Chaithanya Vijayan

Dhanya ushas

Page 2: Cadbury's worm issue case study by chaithanya & dhanya

Introduction• Birmingham dates back to the early part of the 19th century,

• John Cadbury trading as a coffee and tea dealer.

• Introduced - cocoa and drinking chocolate

• The founding of the Cadbury business dates back to 1831

• John Cadbury first made cocoa products on a factory scale in an old malt house in Crooked Lane, Birmingham.

• In 1847 -larger premises in Bridge Street

• Navigation Canal to the major ports of Britain.

Page 3: Cadbury's worm issue case study by chaithanya & dhanya

• Business continued at the Bridge Street site for 32 years

• They move to Bournville and the building –

one of the largest chocolate factories in the world.

• John Cadbury retired in 1861

• business to his eldest sons Richard and George

• Cadbury Schweppes is the No.1 confectionery &

• third largest soft drinks company in the world.

• bring smiles to millions of consumers across 180 countries.

Page 4: Cadbury's worm issue case study by chaithanya & dhanya

• Cadbury India trading concern in 1947.

• Cadbury --- 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 -- close to 8,000 tonnes of chocolate and the company sells a million bars every day

Page 5: Cadbury's worm issue case study by chaithanya & dhanya

PURPOSE AND VALUES• Objective:• Grow shareholder value…over the long term.

• Strategy:• Create long lasting 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- finance

Page 6: Cadbury's worm issue case study by chaithanya & dhanya

Cadbury worm controversy • In 8 outlets across Maharastra worms were found in some bars of Cadbury’s bread

and butter brand selling 1 millions bars a day and an icon of chocolate in india.2003

• enquiry was instituted by the food and drug administration and negative media publicity spread like wild fore. 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.

Page 7: Cadbury's worm issue case study by chaithanya & dhanya

Cadbury worm controversy (cont.)

• After a through 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.

Page 8: Cadbury's worm issue case study by chaithanya & dhanya

• The company began its multi pronged campaign on key print, board cast and electronic media to regain its lost credibility and almost reestablished the category.

• It decide to convey that the root of the problem was as the distribution end, that any food item could face similar infestation

• Cadbury also roped in Amitabh bachhan as its brand ambassador -- reputed for his integrity qualities that Cadbury needed to associate with the brand.

• A rationally and emotionally connecting television commercial, the star gave a first hand account of his visit to the Cadbury factory assuring about the quality of the chocolate, in another version of ad, he also emphasized the safety of the product for children.

Page 9: Cadbury's worm issue case study by chaithanya & dhanya

Crisis Management & its characteristics1) Fast and active communication

2) Ability to admit mistakes

3) Clear recovery stage

Page 10: Cadbury's worm issue case study by chaithanya & dhanya

Challenge To restore confidence in the key stakeholders

Build back credibility

Make customer believe about safety

To increase the sales

Page 11: Cadbury's worm issue case study by chaithanya & dhanya

The actions taken by Cadbury to overcome this crisis are:

In media conference new packaging was introducedThe new Purity Sealed packaging was launchedBy investing up to Rs. 15 croreThe metallic poly-flow was costlier by 15%Cadbury didn’t hike the pack priceDouble wrapping for maximum protection to reduce infestation possibility

Page 12: Cadbury's worm issue case study by chaithanya & dhanya

To communicate these changes

Mr. Amitab bachchan was chosen as Brand ambassador to endorse Cadbury

To reinforce the credibility of Cadbury

Audio visuals with message from star was prepared

To announcement of new pack was done through Testimonial Ad.

Page 13: Cadbury's worm issue case study by chaithanya & dhanya

Safety communication• Jan 2004 the company launched a new double packaging that wrapped

even the smallest 13gm chocolate in an aluminum foil, heat sealed for complete protection from all sides and further encased in poly flow 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 packing was launched amidst much fanfare in media conference. Amongst the material distributed in the conference were a comparison kit allowing evaluation of old and new packs and videos new release with packing and factory shots for television coverage.

• To reinstate confidence among sales people and to motivate them another audio visual with message from the ambassador bachchan was shown in a string of sales conferences

Page 14: Cadbury's worm issue case study by chaithanya & dhanya

Double packing changing

Page 15: Cadbury's worm issue case study by chaithanya & dhanya

Campaign Target Shift over years Promo mechanism

1 Real taste of India Child in adult Shift just for kids to the kids to the kids in every adult

TV , print, Hoardings

2 Khanewalon ko khane ka bahana chahiye

Wider masses Appeal to wider mass based on age gender etc

Tv print hoarding

3 Pappu pass ho gaya Youngsters Tv hoardings

4 Miss palampur Rural masses Shift to smaller packs

Tv hoardings

5 Kuch meetha ho jaaye Conversion of sweet consumers to chocolate for special occasion

This was innovative idea and Cadbury went ahead with celelebrations packs with these ads

Tv print hoarding social media

6 Subh aarambh Targeting the belief of that anything begun y having something sweet provides good luck

Converting yet another segment of set consumers.. Before the start of any work

Page 16: Cadbury's worm issue case study by chaithanya & dhanya

Real taste of India

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Kuch meetha ho jaaye

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Pappu pass ho gaya

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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 company’s perspective instead of pointing a finger at it.

• Surveys revelaed a positive change in consumer perceptions and an increase in their likelihood to buy. Further.not only did Cadbury’s sales recover from the crisis plunge, but also grew by 20%in 2005.

Page 22: Cadbury's worm issue case study by chaithanya & dhanya

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 to appreciate the efforts it had taken to minimize instances of future occurrences.

Page 23: Cadbury's worm issue case study by chaithanya & dhanya

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Health & Medicine

Chilumula Chaithanya

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Crisis communication. Case study: Cadbury worm controversy

11th International Conference on Information Science and Information Literacy

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Social Communication

Dariusz Tworzydło

The way of conducting communication during the image crisis is a special type of challenge for the company. Lack of preparation of the company for proper communication management may be crucial in averting and/or reducing the effects of crises. The paper presents the results of research conducted among experts from the PR industry and representatives of the largest Polish enterprises from the 500 List compiled by “Rzeczpospolita” daily newspaper. The vast majority of Polish enterprises show an open-minded approach to crisis communication. Companies from oppressive industries, where crises occur more often, are better prepared for crisis communication. The determinants of effective communication in the situation of image threats are, according to the leaders of public relations agencies, anti-crisis preparation, presence of procedures, openness and honesty in communication processes as well as quick response time.

JASH MATHEW

This research is an analytical review of the Crisis management strategies and plans implemented by the Fonterra Sri Lanka during its 2013 crisis of the contamination of toxic chemicals in its dairy products. It suggests that ample comprehension of joint operations and usage of diverse media capabilities to provide swiftly accurate communications help organizations in crisis to restore the consumer confidence and their market values. On 2013 Fonterra Sri Lanka had remove its products from the market due to a toxic chemical contamination incident. The incident wen media viral on overnight and threatened the business in to a devastating level. However, as the crisis grew Fonterra Sri Lanka responded successfully with quick and accurate facts & adjustments. They also implemented management plans that helped the company in damage control and retrieving consumer confidence. Using the theories of Mass Communication this research paper examines the effect of cross-field crisis management communication strategies implemented by the Fonterra Sri Lanka. The research was conducted using the Interviews as its primary methodology of data gathering. It also analyzed the news articles made by the national newspapers and the press release of the organization about the incident and its stakeholders. Crisis communication strategies adopted by the Fonterra Sri Lanka are then analyzed according to the Theory of image restoration, and Situational Crisis Communication Theory. The purpose of this paper is to provide a theoretical basis for techniques and strategies that will prepare commercial organizations for damage control in future crisis.

Jacek Barlik

Çelebi, E. (2018) "Measuring the Effectiveness of Organizational Public Relations: An Experimental Research on Crisis Response Strategies", Journal of Communication Theory & Research 46, p. 275-290

Engin Çelebi

In this study, the effects of organization-public relationship and crisis communication strategies on audience perception and attitudes during a crisis have been investigated experimentally. In the context of the research, an university in Turkey was selected as the organization and students were selected as target groups, and Coombs’ situational crisis communication theories have been tested an experimental study carried out with 97 students. Students were divided into 8 groups according to different corporate reputation and relational satisfaction perceptions; a crisis situation was created, and a different crisis communication strategy was applied to each group. According to the research results, no matter what the thoughts were before the crisis, crisis communication strategy doesn’t reduce the responsibility of the organization in crisis, and it doesn’t affect the minds of the audience, but the perception of corporate reputation and sense of relational satisfaction affect the credibility and confidence of the organization’s words and actions. Regardless of the corporate reputation and relational satisfaction, the strategy of denying the crisis gave the highest accusation score, and the messages given to reduce the negative consequences of the crisis were found effective within each group. The reason for this is that participants weren’t concerned about the cause of the crisis; they were concerned only with the messages to reduce the harmful effects of the crisis.

Psychology and Education

Traditionally the research on crisis communication was targeted to public and private organizations' but there is a limited awareness on crisis communication from the perspective of Indian brands.It is considered as a powerful strategic approach to reach the existing and prospective target audience during troublesome situations. Whenever a crisis occurs, there is a need of proactive, swift and comprehensive communication. In India, now days every brand has started thinking about an emergency communication plan that they may use whenever needed. Since it's all about a brand's repute when a crisis occurs, it becomes crucial to communicate with the masses addressing their immediate concerns and counter false information, ensuring that the communication language remains consistent throughout. Advertising is the key focus here since it plays a fundamental role at the junction of mass interaction. In present scenario, Social media platforms has turned out to be expedient tool for crisis communicating. But along with it, identifying the facts about the crisis and its significance is equally essential. This paper thus aims to bring forth tools and tactics of communication being used by brands before and after crisis. To better understand how this issue may affect the decisionmaking outcomes, Qualitative research approach will be taken to investigate judgement by observing & interviewing domain experts. Primary & Secondary data will help to evaluate the crisis response strategies taken by some power brands of India. Case study approach will yield the desired level of detail & understanding. Conclusions point out the glaring fact that all the brands that are involved in crisis communication have been successful in retaining their social identity and acceptance with high ethical standards in regard to social responsibility. Recommendations for how crisis communication can be further improvised in practice are discussed as well as suggestions for future research are provided.

Public Relations Review

Ruthann Lariscy

Acta Oeconomica

Chich-jen shieh

The enhancement of economic development and living standard in last years has the people stress more on recreational life that tourism becomes prevalent in Taiwan. County and city governments positively promote tourism and hold cultural festivals to enhance the boom of accommodation and catering industries and further fire national tourism market and catering industry. Through online questionnaire survey, the customers of Wang Steak, TASTy, Tokiya, and ikki, which are the subsidiaries of Wowprime and burst out the oil scandal recently, are distributed 800 copies of questionnaires. Total 388 effective copies are retrieved with the effective rate 49%. The research results are concluded as follows. 1. Crisis Communication Strategies would affect Media Report. 2. Crisis Communication Strategies would influence Corporate Image. 3. Media Report has significantly positive effects on Managerial Capacity in Corporate Image. 4. Media Report presents remarkably positive effects on Corporate Re...

zamfir mihaela

The 2003 Cadbury India Worm Infestation

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cadbury's worm issue case study by chaithanya & dhanya

Cadbury's worm issue case study by chaithanya & dhanya

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