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Critical situation in a organization and managerial solution
1. Critical situation in an Organization and its
managerial solutions
NAME : JAGATH KIRAN
REGISTER NUMBER : RA1952001020115
SUBJECT : MANAGERIAL SKILLS
COURSE : MBA
SECTION : B
2. Topic
Worms in cadbury
There was a crisis at in Cadbury that “ Worms ” were
found Dairy Milk which hit the spotlights vigorously as children
were the main consumers of Dairy Milk
3. ABOUT THE COMPANY
Cadbury THE COMPANY , formerly British Cadbury's
multinational and Cadbury Schweppes confectionery by Mondelez
International Mars . (originally second largest confectionery brand
in the world after , is a company wholly owned Kraft Foods )
since 2010. It is the Cadbury is internationally headquartered in
Uxbridge west London, and operates in more than 50 countries
worldwide.
4. Crisis
month before Diwali, the Food and Drug Administration
Commissioner received complaints about infestation in two bars
of Cadbury Dairy Milk
Over the following 3week period, resultant adverse media
coverage touched close to 1000 clips in print and 120 on TV
news channels.
Sales volumes came down drastically in the first 10 weeks,
which was the festival season; retailer stocking and display
dropped, employee morale was shaken. especially that of the
sales team
5. Challenge
To restore confidence in the key stakeholders and employees,
particularly the sales team , consumers, trade and build back
credibility for the corporate brand through the same channels
(the media) that had questioned it.
6. Strategy
In media, the key message that infestation was a storage
problem, not manufacturing relatedlinked , found widespread
acceptance. Across the board, media carried Cadbury’s point
view on the issue.
Sales volumes climbed back to almost to pre-- crisis levels
eight weeks after the launch of new packaging
There was significant upward movement in ratings amongst
consumers on parameters like company’s image, responsiveness
of company and behavioral parameters like intention to buy
Cadbury chocolates.
7. Current situation
Cadbury situation is the undisputed market leader and has a
market share of 68% and Nestle being its immediate
competition has a market share of 22%. Cadbury based products
is 35% with 30% India's market share in cocoa Dairy milk
solely accounting for 30%
