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Cadbury Case
Cadbury Case
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
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with the acquisition of Adams, brands like - Halls, Clorets, Trident, Dentyne and Bubbas bubble gum range will now be part of the Groups 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. 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 briging the flavour of chocolate to people and tickling their taste buds. Cadburys 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
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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.
aggressiveness and adaptability. Aligning our management rewards structure with the interests of our shareowners across the country.
Company Secretary Ms Monaz Noble General Managers - Vivek Aggarwal - Finance - Sunil Taldar - Sales - Jimmy Gandhy - Materials - Sharad Gangal - Human Resources - Ajit Tawde - Science & Technology - Cedric Vaz Operations - Shivanand Sanadi - Legal
contribution of girls and to the counteraction of female infanticide through a variety of initiatives, including awareness generation and gender sensitization programmes leading to formation of women self help groups. Reaching Out Programme Reaching Out Programme is one small beginning in their endeavour to lend a helping hand to the needy. They collect from those who have and give it to those who need it the most. They have recently completed the Medicine Collection Drive in which they collected medicines and distributed it among those sections of society that needed it the most. They also have a toy box programme. Used toys are collected and donated to needy children.
MILESTONES OF CADBURY
The June 2003 issue of Business Today identified Cadbury India as one of India's best-managed companies in 2003.
Cadbury India was identified as one of Indias Best Managed Companies in 2003. Indias Finance Minister, Mr Jaswant Singh at Business Todays Best Managed Companies Awards ceremony, felicitated Mr Bharat Puri, Managing Director of Cadbury India. It was the only Multinational Company featured in the list of Best Managed companies in India. Cadbury India was lauded for its value creation, for its strategy of focusing on power brands, and its aggressive 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 Indian FMCG industry & was also recognized for its innovation and consistent development of new products for consumers in India.
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Cadbury's
Creative
Launch
new
after
dinner'
segment
Cadbury India Limited, in its endeavor to continuously provide a chocolateexperience, brings the magic of Cadbury Dairy Milk (CDM) Desserts - with rich indulgent crme 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 crme 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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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 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 timing of the controversy couldn't have been worse. Festival season sales (Cadbury sells almost 1,000 tonnes of chocolates during Diwali) plummeted 30 per cent. Until then, in the country's FMCG sector plagued by slow, low single digit topline and bottomline growth, Cadbury was a sweet exception. But its net profit in 2003 dipped 37 per cent to Rs 45.6 crore (Rs 456 million) as compared to a 21 per cent increase the previous year.
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TAKING PRECAUTIONS In the aftermath of the controversy, the company launched Project Vishwas, a retail education programme under which 190,000 retailers in key states were covered. The programme entailed generating awareness and providing assistance in improving storage quality. "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 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.
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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. 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. The other ad featured Bachhan and his granddaughter to emphasize that the product was absolutely safe for children.
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Cadbury stepped up its advertising spend significantly this 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 CAMPAIGN 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. 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 last three years with a compound annual growth rate of 12.5 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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CONCLUSION
PR is a very vital tool for management, but the top leaders and policymakers must also be involved in the strategy.
Theymust be knowledgeable and be up-to-date on what key audiences or publics know (or think they know) about our organization, if theyexpect to communicate effectively with them.
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.
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