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.

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.

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.

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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.

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