Cadbury case study PDF

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CASE STUDY CADBURY COMPANY

Presented to: Ma’am Rabia amin Submitted by: Tooba Siddiqui 13785 Sakina Kausar 16604 Amna Wahab 13766 Jawad Noor Khan 13762 Fayyaz Shah 13582

Date: 19/05/2021

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Contents 1.

INTRODUCTION........................................................................................................................2

2.

HISTORY....................................................................................................................................3

3.

SUCCESS/FAILURE STORY:.........................................................................................................4 The Worm Controversy.............................................................................................................4 Phase 1: Introducing the Cadbury View (October-December 2003).....................................6 Phase 2: Packing Change (January-March 2004)...................................................................7 Campaign Results:.....................................................................................................................8

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HOW THEY OVERCOME THEIR FAILURES..................................................................................8

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Recommendations:...................................................................................................................9

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1. INTRODUCTION Cadbury Dairy Milk is a brand of milk chocolate produced by Cadbury. It was presented in the United Kingdom in 1905 and now comprises of various items. Each item in the Dairy Milk line is made with entirely milk chocolate. In 2014, Dairy Milk was positioned the top-rated chocolate bar in the UK. The Hershey Company manufactures and distributes it in the United States under license from Cadbury. Cadbury Dairy Milk was initially introduced in the United Kingdom in 1905, and it currently includes a variety of items. Cadbury introduced its first Dairy Milk bar in June 1905 in England, with a larger amount of milk than prior chocolate bars, and it quickly became the company's most popular product by 1914. “All sorts of names were suggested: Highland Milk, Jersey, and Dairy Maid,” recalled George Cadbury Junior, who was in charge of the bar's creation. However, the name Dairy Milk stuck after a customer's daughter proposed it. In 1928, the Dairy Milk line included “Fruit and Nut,” which was quickly followed by Whole Nut in 1933. By this point, Cadbury's was the brand leader in the United Kingdom. Cadburys introduced the "glass and a half" slogan with the Dairy Milk bar in 1928 to promote the bar's increased milk content. Cadbury took the decision in September 2012 to modify the shape of the bar chunks to a more circular shape in order to minimize weight. The bar's shape hadn't changed that much since 1905. Cadbury had a trademark in the United Kingdom since 2007 for the unmistakable purple shade of their chocolate bar wrappers, which was first offered in 1914 as an honor to Queen Victoria. Regardless, in October 2013, a Nestlé subsidiary was successful in overturning that court's administration.

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Cadbury has long strived to maintain a strong relationship with milk, with slogans like "a glass and a half of full cream milk in every half pound" and advertising showing a glass of milk pouring out and making the bar. Cadbury began a series of television commercials in the United Kingdom and Ireland in 2004 that featured a human and an animal (representing the human's pleasure) contemplating whether to eat one of a variety of included chocolates. Dairy Milk was rated as the best chocolate bar in the United Kingdom in 2014. Ryan Ross is responsible for the "milk" component of the chocolate.

2. HISTORY Cadbury, a globally recognized and adored brand, has humble beginnings. Its history began in 1824, when John Cadbury started a grocer's shop on Birmingham's Ball Street. It expanded from there to become one of the world's most successful chocolate brand. John Cadbury's shop opens on Birmingham's Bull Street in 1824. As a youthful Quaker, he was opposed to alcohol, so he sold tea, coffee, cocoa, and drinking chocolate instead. He began producing a variety of cocoa and drinking chocolates in 1831, but due to the high expense of manufacture, he only marketed to the elite. Cadbury made press advertising that were distributed around the country in the 1900s. Cadbury Dairy Milk, the world's most recognised and adored confection, was created in 1905. Cadbury had become to the 24th largest manufacturing company in the United Kingdom by 1930. Cadbury and Schweppes combined in 1969 to establish Cadbury Schweppes. Schweppes was a well-known British soft drink and carbonated mineral water manufacturer. Hershey was given the rights to make Cadbury candy products, and Schweppes Beverages was formed. Cadbury and Schweppes separated their chocolate and beverage businesses in 2008.

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Cadburys makes three types of sweets: gum, candy, and, of course, chocolate. With a staff of over 50,000 individuals, the corporation presently works in over 60 countries. Directly and indirectly, the firm works with roughly 35,000 suppliers. Cadburys is enjoyed by millions of people every day. Cadburys has made a name for itself in every aspect of its major business, chocolate.

3. FAILURE STORY: The Worm Controversy In October 2003, just a month before Diwali, the Food and Drug Administration received complaints about infection in two barns in Cadbury Dairy Milk, a Cadbury India brand that owned more than 70% of the market share. He ordered an investigation and went straight to the media for a statement. Over the next 3 weeks, unsuccessful media broadcasts affected nearly 1000 printed and 120 episodes on TV news channels. In India, where Cadbury was like chocolate, the company's reputation and credibility were highly valued. Sales prices dropped dramatically in the first ten weeks, which was the time of the festival; store purchases and advertising declined, the morale of the staff - especially that of the sales team - was shaken. The challenge was to restore confidence in key stakeholders (consumers, businesses, and employees, especially the sales team) and to build the company's product credibility through the same channels (media) that questioned that. In defense, Cadbury has stated that the infection does not occur in the production phase and the poor retention of retailers is a major cause of reported worm cases. But the FDA did not buy that. FDA commissioner Uttam Khobragade told CNBCTV18, "It was thought that worms had invaded the warehouse, but what about packing -

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packaging was inappropriate or airtight, in any case, a production defect with improper or improper packaging conditions. . " That was followed by allegations and controversial allegations between Cadbury and the FDA. Negative advertising heat melted Cadbury's sales by 30 percent, at a time when it saw the festival's rise by 15 percent. For the first time, Cadbury's advertising aired a month and a half after Diwali, following the controversy. Consumers seem to be ignoring their chocolate cravings. Strategy It was initially decided to deal directly with the matter and to take any necessary steps to regain confidence. Having historically maintained a low profile with the media and allowing its genres and functionality to speak for itself, the company began building relationships with the media and transformed it into a partner and trustworthy, authorizing the private sector to build stakeholder confidence.

Phase 1: Introducing the Cadbury View (October-December 2003)

On the day the crisis broke out, the agency set up a media desk to ensure that no media questions could be answered. From day 1 all news carries the Cadbury vision. At the first press conference hosted by the agency, Cadbury's Executive Director addressed consumer concerns with these important messages:

 Login is a problem connected to storage.  It is safe to eat Cadbury chocolates.

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 Consumers should use the same care in buying chocolate as they would when buying any food.

At a second press conference about two weeks after the first incident was reported, Cadbury announced a major initiative to restore consumer confidence called Project Vishwas (Trust), which includes:

 The monitoring and education program has taken drastic military action to address the latter issues.

 Significant packaging changes to 'reduce dependence on storage conditions as much as possible - starting at two months.

The Editorial Outreach program with 31 news editors from all 5 most affected cities was organized by the agency to get senior Cadbury spokespersons to share their type of events at individual meetings. The trade, along with consumers, reached nationally with a media ad 'Facts about Cadbury', published in 55 books in 11 languages. It presented facts about the production and maintenance of Cadbury and highlighted the remedial measures taken by the company. This was a public statement of the company's position on the matter. The trade was supported by posters and brochures to help them share Cadbury's vision with their customers. A toll-free response cell and email id were provided to give traders a way to contact the company directly for any issues they face - to strengthen the company's commitment to quality. From the beginning, a series of meetings were held in the town hall with senior officials talking to staff to ensure that they are kept informed of the actions taken by Cadbury to manage the media, to

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facilitate trade, and to ensure that future incidents of such incidents are kept to a minimum. Regular email updates from MD were also used to communicate the company's vision and ensure the consistency of the messages since employees are the company's ambassadors.

Phase 2: Packing Change (January-March 2004)

A new 'purity token' pack was introduced in January 2004. By investing up to Rs 15 crore (Rs 150 million) on imported equipment, Cadbury's has revived the introduction of Milk. Metallic polyflow costs about 10-15 percent, but Cadbury did not raise the price of the package. This includes double folding high protection to reduce the chances of infection. This was a major step that involved investing millions of dollars and getting a production process in eight weeks, which usually took six months. In response to these major changes the company was making, Cadbury brought in a brand ambassador to strengthen the credibility shown by the company through its actions. Amitabh Bachchan, a well-known Indian film star, was selected, as he incorporated Cadbury standards as a product and connected to all Indians - mothers, youth, children, the media, and trade partners.

Success

Media Discovery: The media relationship effort has helped to make the media accept that the infection is caused by problems connected to the storage. From the beginning, all media reports carried Cadbury's point of view. Bad news automatically gets good installs. However, the agency helped Cadbury acquire 378 clips in more than 11 languages covering new entries, and their

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benefits, in January 2004. The Business Today clip is a typical sign of a changed media perspective and a better understanding of the problem over three months.

Sales: Sales prices, which are very low between week 1 and week 10 of the crisis, return to approximately pre-event levels per week. within eight weeks new packaging and communication are introduced. This clearly shows consumer returns and that is why business confidence in the company type.

Image: There has been a high upward movement in ratings between consumers with parameters such as company image, company response, and behavioral parameters as a result of purchasing Cadbury chocolate. While new product introduction and advertising play their part in changing consumer perceptions, good media coverage and a positive business attitude have played a major role in helping Cadbury restore its reputation in the market.

4. HOW THEY OVERCOME THEIR FAILURES To overcome failure  Cadbury trained and educated their salesperson, so they can effectively deliver their products with the help of effective communication.  Cadbury introduced new packaging with new flavours.  They imported new machinery so to show consumers that they are taking extra care of workplace hygiene.

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 They positioned their products in the minds of the consumer through effective advertisement.  Their purple packaging showed the signs of love, this played a major role in their comeback.

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Recommendations:

 Maintain supremacy in chocolate and confectionary, as well as market supremacy in brown beverages.  Do strong advertising in media such as the internet or tv which allow a great volume of low-cost advertising. The internet is a great location to sell items, even if they are sweet. Provides Cadbury to reach a new consumer group and allows for increased sales owing to a wider total consumer group.  The primary growth drivers will be new channels such as gifting, kid connections, and value for money offerings.  Over the next few years, increase sales volume by at least 20% every year.  Achieve the aim of having the greatest production site in the world for Dairy Milk and Éclairs at Cadbury Schweppes.  Every year, a big new product should be introduced, such as additional Dairy Milk flavors.

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