EARLY HISTORY

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 1 !1 when John Cadbury first made cocoa products on a factory scale in an old malt house in Crooked "ane, Birmingham. In !"# the business mo$ed to larger premises in Bridge Street, which had its own pri#ate canal spur linking the factory #ia the Birmingham $a#igation Canal to the ma%or ports of Britain. %usiness continued at the %ridge Street site for !& years and by 1 ' the workforce had e(panded to &)), so more space was needed. *his heralded the mo#e to Bourn#ille and the building of what is now one of the largest chocolate factories in the world. &ohn Cadbury retired in !' handing o#er the business to his eldest sons +ichard and ,eorge. -t is to their leadership that the success of the enterprise is owed as the company prospered. *he origin of the group goes back o#er two centuries. Some of the most lo#ed international brands are from the stable of Cadbury Schweppes . Cadbury /airy 0ilk, /r 1epper, 2lake, *rebor Basset, Snapple, 0otts and
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with the ac3uisition of 4dams, brands like - 5alls, Clorets, *rident, /entyne and Bubbas bubble gum range will now be part of the ,roup6s portfolio. 77,))) people populate the humming offices of Cadbury Schweppes across the globe. Cadbury Schweppes is the $o.1 confectionery and third largest soft drinks company in the world. *hey manufacture, market and distribute branded chocolates, confectionery and be#erages that bring smiles to millions of consumers across 1 ) countries. *he Core purpose of Cadbury Schweppes is ()or*ing better together to create brands people lo$e+. *hey are respectful of the social and natural en#ironment in which theyoperate8 supporti#e of our consumers, customers and colleagues8 proud of our heritage, and passionate about success. *his passion for success led to the company e(panding its business o#erseas and thus briging the fla#our of chocolate to people and tickling their taste buds. Cadbury6s e(panded their business to many countries like 4ustralia, 4merica, Canada, -ndia etc. 9hen Cadbury /airy 0ilk chocolate was first introduced in the early 19))s it made an immediate impact 3uickly becoming the market leader. *he success story has continued. -t is still the top selling chocolate brand in the
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country and the Cadbury 0ega Brand:s broad family of products today has an international retail #alue approaching ;S<1billion. 4s an international brand Cadbury /airy 0ilk carries the same distincti#e image all o#er the world. 9here#er you buy a bar of Cadbury /airy 0ilk the pack design will be e(actly the same, only the language will be different. *he famous slogan =glass and a half of full cream milk in e#ery half pound= with the picture of milk pouring into the chocolate bar, is one of the all-time greats of British ad#ertising.

A%O,T CA-%,RY I.-IA LT-/

Cadbury -ndia began its operations as a trading concern in 19>'. Cadbury in the -ndian sub continent defined the first taste of chocolate. *he company today employs nearly &))) people across -ndia. 9ith brands like /airy 0ilk, ,ems, 7 Star, Bourn#ita, 1erk, Celebrations, Bytes, Chocki, /elite and *emptations, there is a Cadbury offering to suit all occasions and moods. *hey bring the sweetest of smiles to millions of consumers through their dearly lo#ed brands distributed through 7.7 lakhs outlets. Cadbury -ndia:s four factories in -ndia churn out close to ,))) tonnes of chocolate and the company sells a million bars e#ery day.?locations of factories.@

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0,R0OSE A.- 1AL,ES

Ob2ecti$e3 ,row shareholder #alueAo#er the long term. Strategy3 Create robust and sustainable regional positions in our core categories of confectionery and be#erages through organic growth, ac3uisition and disposal. 0rocess3 *hey achie#e this by 0anaging 2or Balue. 4anaging 5or 1alue 0rocess incorporates3 Setting stretched financial ob%ecti#es. 4dopting Balue Based 0anagement for ma%or strategic and operational decisions and business systems. Creating an outstanding leadership capability within our management. Sharpening our company culture to reflect accountability,

aggressi#eness and adaptability. 4ligning our management rewards structure with the interests of our shareowners across the country.
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4A.A6E4E.T TEA4 AT CA-%,RY

CHAIR4A. C/ Y/ 0AL 1ICE CHAIR4A.
RA&I1 )AHI

4A.A6I.6 -IRECTOR %HARAT 0,RI .O. E7EC,TI1E -IRECTORS E7EC,TI1E -IRECTORS

- 5arsh 0ariwala - Jaithirth +ao - Suresh *alwar

- ,irish Bhat - +adhakrishnan 0enon

- Jaiboy 1hillips - Chandramouli B - Bidyut 4rte - San%ay 1urohit

Company Secretary 0s 0onaC $oble 6eneral 4anagers - Bi#ek 4ggarwal - 2inance - Sunil *aldar - Sales - Jimmy ,andhy - 0aterials - Sharad ,angal - 5uman +esources - 4%it *awde - Science D *echnology - Cedric BaC . Eperations - Shi#anand Sanadi - "egal

E.1IRO.4E.T A.- SOCIETY

4t Cadbury -ndia, it is belie#ed that good #alues and good business go hand in hand. .utrition8 Education8 Security and Lo$e Cadbury -ndia has a large factory in 0alanpur, one of the most under de#eloped districts in Central -ndia. -n 1999, theylaunched the Cadbury Community -nitiati#e 1rogramme under the bannerG $utrition, Hducation, Security and "o#e. -n setting up the programme, the local Corporate 4ffairs 0anager, $arender Iatoch, initiated a long-term dialogue with local stakeholders to engage them in helping the compnay identify what community support theyshould be pro#iding. 4s a result, theyfocused on healthcare and education in the nearby #illage of ,urikha. 4 nursery school was started and key impro#ements were made to the primary school. *he consultation and a bit of lateral thinking led to some real social impro#ementsG fresh drinking water from a new #illage pump, a doctor6s clinic, #et ser#ices for milk producing animals and fruit trees for each household to plant during the rainy season. *hey also helped increase school attendance le#els. "ast year, the education programme supported the -ndian ,o#ernment6s Jear of 9omen Hmpowerment. Special focus was gi#en to the rights and
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contribution of girls and to the counteraction of female infanticide through a #ariety of initiati#es, including awareness generation and gender sensitiCation programmes leading to formation of women self help groups. Reaching Out 0rogramme +eaching Eut 1rogramme is one small beginning in their endea#our to lend a helping hand to the needy. *hey collect from those who ha#e and gi#e it to those who need it the most. *hey ha#e recently completed the 0edicine Collection /ri#e in which they collected medicines and distributed it among those sections of society that needed it the most. *hey also ha#e a toy bo( programme. ;sed toys are collected and donated to needy children.

4ILESTO.ES O5 CA-%,RY
*he June &))! issue of Business *oday identified Cadbury -ndia as one of -ndia:s best-managed companies in &))!.

Cadbury -ndia was identified as one of -ndia6s Best 0anaged Companies in &))!. -ndia6s 2inance 0inister, 0r Jaswant Singh at Business *oday6s Best 0anaged Companies 4wards ceremony, felicitated 0r Bharat 1uri, 0anaging /irector of Cadbury -ndia. -t was the only 0ultinational Company featured in the list of Best 0anaged companies in -ndia. Cadbury -ndia was lauded for its #alue creation, for its strategy of focusing on power brands, and its aggressi#e foray into the low end market with Chocki as well as launches at the top end.

Cadbury succeeded in reducing the impact of the slow down in the -ndian 20C, industry D was also recogniCed for its inno#ation and consistent de#elopment of new products for consumers in -ndia.

.E) 0RO-,CT LA,.CHES

Cadbury launches Rich -ry 5ruit Collection for gifting this festi$e season/ Come /iwali and the gifting options for consumers %ust got better with the launch of Cadbury Celebrations +ich /ry 2ruit Collection a range of premium chocolate gift bo(es. 4#ailable in attracti#e packs, the Collection caters to a premium gifting consumer and is an ideal festi#e gift. -t is a uni3ue combination of the best Cadbury chocolate and premium dry fruits. *his combination will be a#ailable in select outlets in select cities across -ndia for the first time. *he +ich /ry 2ruit Collection comes in four different formats. Hach of these is a mi( of select premium dry fruits enrobed in rich Cadbury /airy 0ilk chocolate. *his launch will augment the e(isting /iwali 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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Cadbury9s

Creati$e

Launch

ne:

after

dinner9

segment

Cadbury -ndia "imited, in its endea#or to continuously pro#ide a chocolatee(perience, brings the magic of Cadbury /airy 0ilk ?C/0@ /esserts - with rich indulgent crKme center, in e(otic D traditional fla#ors of *iramisu and Ialakand. C/0 /esserts offer the perfect rounding off taste, after meal that adds special 0eetha6 moments to the family. *he rich tastes of C/0 combined with the uni3ue crKme center in e(otic fla#ors pro#ide a special chocolate e(perience. C/0 /esserts 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.

5ence C/0 /esserts positions itself as the perfect after meal, with the idea (;haane ;e baad ;uch 4eetha Ho &aye+.

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THE )OR4Y CO.TRO1ERSY

RISE O5 THE CO.TRO1ERSY State 2/4 Commissioner ;ttam Ihobragade said a group of people approached him with chocolates that had worms in them. Sebastian 2ernandeC had purchased Cadbury /airy 0ilk chocolate from a shop at 1ick and 1ay, Bile 1arle. 2ernandes disco#ered that the chocolate ?Batch $o & 2!-1)')!@ had worms in it. 2ernandes complained to the shopkeeper Jitendra Shah who later informed 1ra#in 0ar#e, #ice-president, 4ndheri Byapar 0anch.

0ar#e then contacted the 2/4 and ga#e them the sample. 2/4 Joint Commissioner 5indurao Salunkhe said Cadbury:s *alegaon plant will also be inspected. Bharat 1uri, managing director of Cadbury -ndia will ne#er forget the batch of /airy 0ilk chocolates numbered <!5= company:s plant in *hane, near 0umbai. *hat was the worm-infested batch that triggered a crisis for the company that had always prided itself on its s3ueaky clean image. manufactured last year at the

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E55ECTS O5 THE CO.TRO1ERSY O. CA-%,RY *he state 2ood and /rug 4dministration has ordered seiCure of Cadbury:s /airy 0ilk chocolates from all o#er 0aharashtra after worms were found in two of them in 0umbai. Cadbury -ndia, whose chocolates had ridden into contro#ersy late last year during the festi#al season because worms were disco#ered in some stocks of its /airy 0ilk chocolates is probably hoping the association with Bachchan will help consumers forget the bad press the company got on account of the disco#ery. *he 2ood and /rug 4dministration had then seiCed the company:s stocks and the Cadbury -ndia management had e(plained it was bad storage practices by retailers and distributors that had led to the worms. Cadbury -ndia:s sales fell following the disco#ery. 4nd e#en the go#ernment got into the act with the central health ministry asking for a report on the contro#ersy. *he timing of the contro#ersy couldn:t ha#e been worse. 2esti#al season sales ?Cadbury sells almost 1,))) tonnes of chocolates during /iwali@ plummeted !) per cent. ;ntil then, in the country:s 20C, sector plagued by slow, low single digit topline and bottomline growth, Cadbury was a sweet e(ception. But its net profit in &))! dipped !' per cent to +s >7.F crore ?+s >7F million@ as compared to a &1 per cent increase the pre#ious year.
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ROLE O5 THE 0,%LIC RELATIO.S

1+ concerns the total communications of your total organiCationLgroup of organiCations. -t is unlike ad#ertising, where you are sharing skills of planning, creati#e and media buying teams with an out-sourced agency. 1+ calls for a #ery intimate understanding of the total inner workings of your organisation at all le#els - workers to Board le#els. -t re3uires the integration of knowledge and communications. -t is not a part time %ob for a 0arketing Ser#ices 0anager. -f it is to work and ser#e the larger ob%ecti#e, the 1+ department should be independent, ser#icing others like production, personnel, marketing, finance, corporate agendas. *herefore, the 1+ 5ead should be part of the top management team - reporting directly to the CHE. 5e also needs to share e#eryone:s confidences. *he 1+ department of Cadbury6s played a #ery effecti#e role in managing the reputation and keeping up the goodwill of the company. 4fter being struck with the 9orm Contro#ersy it was not possible to create a #ery good impact on consumers who trusted the company the most. But through the efforts and a good 1+ team Cadbury6s managed to wriggle its self out of the contro#ersy with a clean chit.

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STE0S TA;E. TO SOL1E THE CO.TRO1ERSY

.OT -E.YI.6 THE 5ACT -t helped that the 0aharashtra 2ood and /rug 4dministration had gi#en a clean chit to the company:s two plants in the state. Cadbury went into o#erdri#e to tell consumers that improper storage of what is essentially a perishable commodity might lead to worm infestation. "ast $o#ember Bharat 1uri, Cadbury:s mild-mannered 0/, went to media offices around the country meeting reporters, answering mostly hostile 3ueries and patiently e(plaining the company:s stand on the issue. =;nlike the cola companies which were caught in a contro#ersy %ust a month earlier and displayed an ostrich-like attitude, Cadbury did not go into denial mode. -t accepted that there was a problem, which may not ha#e been of its own making, and made a commitment to the consumer that it would plug all possible safety loopholes,= says a 0umbai-based brand consultant. 4s a result Cadbury impro#ed the packaging and paid more attention to the way its chocolates were stored by nearly F7),))) retailers across the country.

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 TA;I.6 0RECA,TIO.S -n the aftermath of the contro#ersy, the company launched 1ro%ect Bishwas, a retail education programme under which 19),))) retailers in key states were co#ered. *he programme entailed generating awareness and pro#iding assistance in impro#ing storage 3uality. =9hat you see now is the most o#er-engineered packaging for a /airy 0ilk chocolate anywhere in the world. H#en our festi#al packs come with a tamper-proof outer sealing and impro#ed packaging inside,= e(plains 1urohit. *he new double packaging e#en for the smallest offering, the 1! gm +s 7 Cadbury /airy 0ilk, had the bar wrapped in aluminium foil and enclosed in a polyflow pack, which was sealed on all sides. *he larger Cadbury /airy 0ilk packs came in poly-coated aluminium foil, which was heat-sealed and then wrapped in the branded outer package. Both these initiati#es are country specific and Cadbury in#ested nearly +s &7 crore ?+s &7) million@ this year on new machinery for the impro#ed packaging. *he company also carried out 3uality checks at its facilities as well as its carrying and forwarding warehouses and distributor warehouses and found products free of infestation.

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 6AI.I.6 %AC; TR,ST *he Big B promoted the Big C in the chocolate business - Cadbury in -ndia. -ndian cine superstar 4mitabh Bachchan has signed on to become the brand ambassador of the chocolate ma%or for two years. 4B played a pi#otal role in all communication relating to Cadbury:s products and brands, be it in print, on tele#ision or the great outdoors, the company:s managing director Bharat 1uri has been 3uoted as saying in media reports.

9ith the help of its 1ublic +elations /ept. and ad#ertising agency ED0, it created a campaign which aimed for both rational and emotional appeal. Ene of the ads showed Bachhan #isiting a Cadbury plant, inspecting the systems and processes and finally consuming a bar of chocolate to be con#inced that there:s nothing wrong with the brand. *he other ad featured Bachhan and his granddaughter to emphasiCe that the product was absolutely safe for children.

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Cadbury stepped up it6s ad#ertising spend significantly this year to nearly +s >) crore ?+s >)) million@. 9ith a turno#er of +s '&9 crore ?+s '.&9 billion@ in &))!, Cadbury has a ') per cent market share in chocolates and /airy 0ilk chocolate has !) per cent market share, despite competitors like $estle and 4mul.

 %E.E5ITS O5 A 6OO- CA40AI6. *he company bounced back soon after the campaign hit the screens. Between Ectober &))! and January &))>, Cadbury:s #alue share melted from '! per cent in to F9.> per cent. *he reco#ery began in 0ay &))> when Cadbury:s #alue share went up to '1 per cent. Cadbury:s -ndian operations are not %ust the largest in 4sia but also the cheapest. -n -ndia, Cadbury has the largest market share anywhere in the world and has been the fastest growing 20C, Company in the last three years with a compound annual growth rate of 1&.7 per cent. So, despite the bitter moments of the last year, the company is hoping that the future will be much sweeter.

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CO.CL,SIO.

1+ needs research, planning, implementation and e#aluation.

1+ needs to be based upon a strategy, including the budget.

1+ is a #ery #ital tool for management, but the top leaders and policymakers must also be in#ol#ed in the strategy.

*heymust be knowledgeable and be up-to-date on what key audiences or MpublicsN know ?or think they know@ about our organiCation, if theye(pect to communicate effecti#ely with them.

1;B"-C +H"4*-E$S 2E+0 4$ -$/-S1H$S4B"H 14+* E2 4$J E+,4$-S*-E$. 1ublic relations include ongoing acti#ities to ensure the company has a strong public image. 1ublic relations acti#ities include helping the public to understand the company and its products. Eften, public relations are conducted through the media that is, newspapers, tele#ision, magaCines, etc.

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