Cadbury experienced a worm contamination issue in some of its chocolate bars in 2003. This led to plummeting sales, reduced retailer cooperation, and damaged employee morale and company credibility. An investigation found the problem originated in distribution centers. Cadbury took responsibility and introduced a new double packaging and enlisted Amitabh Bachchan as brand ambassador to regain trust. Through integrated communication efforts across TV, print, and social media addressing consumer and retailer concerns, Cadbury was able to restore sales growth within two years.

1. Cadbury's worm issue-
Case study
Presented By,
Chaithanya Vijayan
Dhanya ushas

2. Introduction
• Birmingham dates back to the early part of the 19th century,
• John Cadbury trading as a coffee and tea dealer.
• Introduced - cocoa and drinking chocolate
• The founding of the Cadbury business dates back to 1831
• John Cadbury first made cocoa products on a factory scale in an old malt house in Crooked Lane,
Birmingham.
• In 1847 -larger premises in Bridge Street
• Navigation Canal to the major ports of Britain.

3. • Business continued at the Bridge Street site for 32 years
• They move to Bournville and the building –
one of the largest chocolate factories in the world.
• John Cadbury retired in 1861
• business to his eldest sons Richard and George
• Cadbury Schweppes is the No.1 confectionery &
• third largest soft drinks company in the world.
• bring smiles to millions of consumers across 180 countries.

4. • Cadbury India trading concern in 1947.
• Cadbury --- 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 -- close to 8,000 tonnes of chocolate and the
company sells a million bars every day

5. PURPOSE AND VALUES
• Objective:
• Grow shareholder value…over the long term.
• Strategy:
• Create long lasting 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- finance

6. Cadbury worm controversy
• In 8 outlets across Maharastra worms were found in some bars of Cadbury’s
bread and butter brand selling 1 millions bars a day and an icon of chocolate
in india.2003
• enquiry was instituted by the food and drug administration and negative
media publicity spread like wild fore. The extensively graphic media coverage
led people to believe that every bar could be contaminated.
• Consequently, sales volume plummeted, retailer cooperation lessened and
employee morale dwindled all in all the company’s credibility suffered
extensive damage.

7. Cadbury worm controversy (cont.)
• After a through 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
unpacked items 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.

8. Cadbury worm controversy (cont.)
• The company began its multi pronged campaign on key print, board cast and
electronic media to regain its lost credibility and almost reestablished the category.
• It decide to convey that the root of the problem was as the distribution end, that any food
item could face similar infestation
• Cadbury also roped in Amitabh bachhan as its brand ambassador -- reputed for his integrity
qualities that Cadbury needed to associate with the brand.
• A rationally and emotionally connecting television commercial, the star gave a first hand
account of his visit to the Cadbury factory assuring about the quality of the chocolate, in
another version of ad, he also emphasized the safety of the product for children.

9. Crisis Management & its characteristics
1) Fast and active communication
2) Ability to admit mistakes
3) Clear recovery stage

10. Challenge
 To restore confidence in the key stakeholders
 Build back credibility
 Make customer believe about safety
 To increase the sales

11. The actions taken by Cadbury to overcome this crisis are:
PHASE I
 In media conference new packaging was introduced
 The new Purity Sealed packaging was launched
 By investing up to Rs. 15 crore
 The metallic poly-flow was costlier by 15%
 Cadbury didn’t hike the pack price
 Double wrapping for maximum protection to reduce infestation possibility

12. PHASE II
 To communicate these changes
 Mr. Amitab bachchan was chosen as Brand ambassador to endorse Cadbury
 To reinforce the credibility of Cadbury
 Audio visuals with message from star was prepared
 To announcement of new pack was done through Testimonial Ad.

13. Safety communication
• Jan 2004 the company launched a new double packaging that wrapped
even the smallest 13gm chocolate in an aluminum foil, heat sealed for
complete protection from all sides and further encased in poly flow pack.
The over engineered pack.
• The first of its kind in india cost the company a fortune but fulfilled the company's promise to media and
consumers
• The new packing was launched amidst much fanfare in media conference. Amongst the material distributed
in the conference were a comparison kit allowing evaluation of old and new packs and videos new release
with packing and factory shots for television coverage.
• To reinstate confidence among sales people and to motivate them another audio visual with message from
the ambassador bachchan was shown in a string of sales conferences

14. Double
packing
changing

15. Campaign Target Shift over years Promo mechanism
1 Real taste of India Child in adult Shift just for kids to the kids to
the kids in every adult
TV , print, Hoardings
2 Khanewalon ko khane ka
bahana chahiye
Wider masses Appeal to wider mass based
on age gender etc
Tv print hoarding
3 Pappu pass ho gaya Youngsters Tv hoardings
4 Miss palampur Rural masses Shift to smaller packs Tv hoardings
5 Kuchmeetha ho jaaye Conversion of sweet
consumers to chocolate for
special occasion
This was innovative idea and
Cadbury went ahead with
celelebrations packs with
these ads
Tv print hoarding
social media
6 Subh aarambh Targeting the belief of that
anything begun y having
something sweet provides
good luck
Converting yet another
segment of set consumers..
Before the start of any work
Tv print hoarding
social media

16. Real taste of India

17. Kuch meetha ho jaaye

18. Pappu pass ho gaya

21. Outcome of the effort
• As a result of the integrated campaign Cadbury won over the invincible media and got
extensive media coverage that highlighted the company’s perspective instead of pointing a
finger at it.
• Surveys revelaed 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.

22. conclusion
• Through timely and consistent marketing communications Cadbury succeeded in solving a
daunting business crisis
• With a 360 degree communications approach that targeted various audiences, Cadbury could
quickly control and off set the negative word of mouth it had received.
• By integrating a variety of tool like press release and conference consumer advertising, trade
advertising, point of purchase communications, packing initiatives, email communications
and the like all focusing on the same problem, Cadbury could communicate a unified
message and get audiences to appreciate the efforts it had taken to minimize instances of
future occurrences.

23. Thank You