cad bury manages a crisis withintegratedmarketing communication

7/27/2019 cad bury manages a crisis withintegratedmarketing communication

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Cadbury Manages a crisis with

Integrated MarketingCommunication (IMC)


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The Crisis is all about..

In eight outlets across Maharashtra, worms were foundin some bars of Cadbury Dairy Milk, Cadbury's bread-and-butter brand selling 1 million bars a day and anicon of 'chocolate' in India.

Inquiry was instituted by the Food and DrugAdministration and negative media publicity spread likewildfire. The extensively graphic media coverage ledpeople to believe that every bar could becontaminated. Consequently, sales volume

plummeted, retailer cooperation lessened andemployee morale dwindled. All in all, the company'scredibility suffered extensive damage.


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Reason behind this crisis..

After a thorough investigation of the entire supply

chain, it was found that the problem originated at

the distribution end. Apparently, at the retail outlets

the infested bars were placed next to open unpackeditems susceptible to worms.

However, although the problem was not of its own

making, Cadbury did take responsibility for the lack in

educating retailers on storage and hygiene.


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Using IMC elements to overcome from

this problem

Advertising

The company began its multi-pronged campaign on key

print, broadcast and electronic media, to regain its lost

credibility and almost reestablished the category.

Message strategy

It decided to convey that the root of the problem was as

the distribution end, that any food item could face

similar infestation, and yet Cadbury would take initiatives

to check the problem.


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Public Relationship Campaign

The company launched Project Vishwas, a three-pronged program thataddressed the trade, consumers, media and employees. The project

incorporated the following measures:

For Trade

A retail monitoring and education program was launched that performed

quality checks at over 50,000 retail outlets and educated 190,000 wholesalers

and retailers regarding storage requirements.

A press ad regarding 'Facts about Cadbury' was also published nationally in 55

trade publications informing channel members about remedial measures being

taken by the company.

Posters and leaflets on the issue were also distributed to retailers,

encouraging them to share them with consumers.

Cadbury also linked the trade with response cell through a toll-free number

and an email id to let them contact the company directly.


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For Media

The media was also explained the company's point-of-view, given updates aboutactions initiated by the company, and encouraged to share them with consumers.

The company instituted a media desk and diligently answered every media query,

friendly or not. The company's managing director urged media to assureconsumers that Cadbury was safe to eat, but that consumers exercise the usual

care in purchasing a chocolate that they exercise in purchasing a food item.

Furthermore, it also promised to implement packaging changes within two

months to ensure against poor storage. Cadbury's MD and key spokespersons had

one-to-one sessions with 31 media editors as part of an 'Outreach' programinitiated in November 2003.

For Employees

Employees were also briefed about actions taken through meetings with seniormanagers and email updates from the MD.


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Product Safety Communication

January 2004, the company launched a new double packaging thatwrapped even the smallest 13 gm chocolate in an aluminium foil, heat-sealed for complete protection from all sides and further encased in apolyflow pack. The over-engineered pack, the first of its kind in India, costthe company a fortune, but fulfilled the company's promise to media and

consumers.

The new packaging was launched amidst much fanfare in a mediaconference. Amongst the material distributed in the conference were acomparison kit allowing evaluation of old and new packs and a video new

release with packaging and factory shots for television coverage. Toreinstate confidence among sales people and to motivate them, anotheraudio-visual with a message from the ambassador Bachchan was shown ina string of sales conferences.


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Outcome of Companys IMC Effort

As a result of the integrated campaign, Cadbury won over the

invincible media andgot extensive media coverage that

highlighted the company's perspective instead of pointing a

finger at it.

Surveys revealed a positive change in consumer perceptions

and an increase in their likelihood to buy. Further, not only did

Cadbury's sales recover from the crisis plunge, but also grew

by 20% in 2005.


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THANK YOU

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cad bury manages a crisis withintegratedmarketing communication