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Business Nightmares - Cadburys schoolboy error

Cadburys corporate calamities were once triggered by strategic


errors and ended up costing billions. The company fell into its own trap
caused by their scheme in order to make children more fit. Instead of
being praised for sports inspiration, Cadbury was suspected of pushing
Britains kids to please themselves with more sweets. The bitter backlash
of this promotion got both Cadburys heads and government ministers in a
very sticky situation.
The last ones actually launched this idea of taking action on obesity.
Such suggestion seemed promising since the consumers were more likely
to engage with healthy products. Cadburys specialization appeared to be
their own snare. Instead of reformulating their product, Cadbury found
another way of helping the nations health drive.
Cadbury offered the schools to exchange their confectionary
wrappers for the sports equipment and the government gave its
endorsement. Such decision was no-brainer since the chocolate empire
wished both for the sales improvement and for the corporate responsibility
of association with obesity fight.
The company prided itself on its long-standing reputation for lookingbeyond profits and expected a lot from their new campaign. However, the
simple sums of the number of vouchers required for participation wrecked
the Cadburys plans. This calculation revealed that in reality the promotion
was leading to huge overindulge and this gimmick set the news agenda.
Though the company tried to defend their position, the lack of clarity
in it provoked the impression of naked self-interest. Unfortunately, the
Cadbury team was so wrapped up in their assumed great idea, they
hadnt fully considered the worst case scenario.

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