Cadbury revives India interest with revamp

8/2/2019 Cadbury revives India interest with revamp

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TOPIC

Cadbury revives India interest with

revamp


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Companys proFilE


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VISION

Life Full Of Cadbury Cadbury is an organization which impacts and

interacts with the consumers. Cadbury is present in most happy occasions in

the life of our consumer. The brands excite the consumer. Cadbury is an

expression of a consumer's life. Cadbury Full Of Life Cadbury as a company

is vibrant. Cadbury is a fun and energizing workplace. Cadbury is robust and

alive.


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Popular Brands in INDIA

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Beverages

CanDys

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PRODUCT BASKET- Category Brand

Variants

Bars Dairy Milk Plain

Fruit n Nuts

Double Decker

Roasted Almond

Chunky 5-Star

5 Star Count Lines 5 Star Chrunchie

Milk Treat Chocolate

Orange

Wafer Chocolate Perk Perk

Perk XL Other Chocki Mint, Strawberry & Chocolate

Premium/ Gift Chocolates Temptation Rum, Cashew, Almond & Orange

Celebrations Various Gift Packs


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WEIGHT (gm) PRICE

10.5 5

22 10

40 20

42 CRACKLE 25

95 5080 FRUIT & NUT 55

165 90


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CADBURY AND THE WORM CONTROVERSY

The discovery of worms in some samples ofCadburys 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

controversy created an deep adverse impact on the company with their

sales not only drastically dipping down, but at the same time allowing thecompetitors to establish their foothold and taking maximum advantage of

Cadburys misfortune.


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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. Clearly, the worm controversy took a toll onCadbury'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.


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CABDBURYS FIGHT-BACK

Project Vishwas'

Steps to ensure quality & regain the confidence

Following the controversy over worms in its chocolates, Cadbury India Ltd unveiled

'Project Vishwas', a plan involving distribution and retail channels to ensure the quality of its

products. 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 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.


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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,

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. Yet, the

entire credit of recovery could not be attributed to the brand mascot.


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Incisive action taken by the company also helped.

Some of which were:

1. Responded to consumers concern over the issue rapidly. Also, thecommunication campaign worked effectively in giving out the centralmessage.

2. The packaging was changed to include a sealed plastic wrapper inside theoutside foil. Cadburys launched a new 'purity-sealed' packaging for itsflagship product, Cadbury Dairy Milk. The packaging is in response toforeign bodies, notably worms, being found in its products. Over the nextfew weeks Cadbury will work towards introducing either a heatsealed or aflow-pack packaging that offers a high level of resistance to infestationfrom improper storage.

3. New advertising & promotion campaigns were in place which accounted for

an Ad spend of nearly Rs 40 crore (Rs 400 million) Cadbury investednearly Rs 25 crore (Rs 250 million) this year on new machinery for theimproved packaging.


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CADBURYS SINGING SWEETLY AGAIN

All is well that ends well. And for Cadburys 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 likeOperaion Vishwas, adopting new packaging & massive advertising with Mr. Amitabh

Bachchan as their brand ambassador, Cadburys regained its market share.

Cadbury India appointed management consultancy firm AT Kearney to draw up a strategy to

control costs in several areas, including sourcing of raw materials and packaging. This was

partly an outcome of the worms controversy more than a year ago. Among other things, it

changed the wrappers for its Cadbury Dairy Milk brand and introduced better coolers.


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COMPETITORS


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Cadbury revives India interest with revamp

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