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Introduction to Cadbury India

Explain Restoring Confidence in Brand Cadbury?

Cadbury started its working in India in 1948. At present, the name Cadbury has become equivalent to chocolate. Cadbury India (“Cadbury”) rules 70 percent share in the Indian chocolate market. More than thirty million Cadbury Dairy Milk chocolates are sold every month. The strong relationship Cadbury had with its customers looked unwavering. (Puri and Clark, 2012)

In October 2003, there was a news that worms are found in Cadbury Dairy Milk Chocolate Bars in Mumbai (India). CNBC was the first one to break the news. The complaint was filed with Maharashtra Food and Drug Administration (FDA). The FDA announced in the media that because of consumer complaints, the chocolate stocks are seized, sent them for investigation and Cadbury is being investigated. The next morning it was a front-page news. The message was clear that there are worms inside the chocolates from Cadbury. (Puri and Clark, 2012) The tone of the message was very derogatory. After few days, new cases of infestation were registered from other cities also. The FDA minister and authorities from FDA were regularly visiting the Cadbury factories to find some evidence for the case. This media coverage negatively affected the company and the sales volume crashed by 30 percent in less than a week. In peak season, it was an unimaginable incident that happened to Cadbury.

This problem with infestation can occur with any chocolate industry in the world if not properly stored. Although 700,000 shopkeepers selling Cadbury chocolates were given metal dispensers and coolers for proper storing, it was impossible to make sure all retail outlets were handling the chocolate properly. It was understood by the management but the news deteriorated the image of Cadbury that it was very difficult for others to understand. So, it was necessary to address the issue to everyone concerned with Cadbury Dairy Milk. The board decided to tell the truth by using different mediums. A ‘Project Vishwas’ was launched by Cadbury India announcing a three-step strategic programme involving its packaging, distribution chain and retail channels (The Economic Times, 2003). The company also reduced its bulk packaging from 60 bars to 22.  A team of trained quality control managers along with 300 sales persons thoroughly inspected over 50,000 retail outlets in Maharashtra that stock and sell Cadbury products. (Thehindu.com, 2003)

The three stakeholder groups opted in this case are public (they are the consumers), Government body FDA (they ensure that correct food material should reach the public) and employees (they are the backbone of company and needs motivation in this situation). The motivation to employees will be provided by a presentation where they will be told actual reason of infestation and the steps to follow to handle the current situation. A report will be sent to FDA regarding the actual cause of issue and the public will be addressed by a press release in daily newspaper.

The 2003 Infestation Incident

The aim of this media strategy is to tell the actual reason for infestation and to restore the confidence in brand. The press release can cover a large audience who are buyers and responsible for increase or decrease in sales. A report is sent to the authority, here in this case is FDA to clarify the issue. The best way to give a message to employees is in the form of presentation. As during training also presentations are an important medium.

This strategy may rebuild the confidence of all the stakeholders in Cadbury.

Cadbury India Ltd.

Cadbury House

19, B Desai Road

Mumbai 400 026

Maharashtra

India

Tel: +91 22 4007 3100

Fax: +91 22 2352

FOR IMMEDIATE RELEASE

17 May 2017

[Name of the Manager]                                                                                       

Manager

Email: [email protected]

Project VISHWAS - Steps to Ensure Quality and Regain the Confidence

Cadbury India would like to reassure consumers that we are extremely focused on resolving the issues related to infestation in few bars of Dairy Milk Chocolate in Mumbai, India.

 
On October 3,2003, there were complaints about infestation and worms in some dairy milk chocolates. We have taken a three step programme that involves distribution chain and retail channels. This programme makes sure that the consumer receives the highest quality product.

The team of quality managers and sales staff will check the placement on retail outlets and increase the awareness among retailers to correctly store Cadbury products. The company wants to clear the fact that this infestation and worm problem is not a problem from manufacturing. This occurs because of ill storage practices. This can happen anywhere in the world to any chocolate irrespective of brand if that is not properly stored.   

We have received feedback from retailers, consumers, distributors and FDA in the past two weeks and came with a three-step programme. The company is committed to give its consumers best quality products. The progress including the three-step programme is mentioned in following points:

  • A team of Quality managers and more than 300 sales persons have checked more than 50,000 retail outlets in Maharashtra only and have changed all suspected stock immediately.
  • The required steps are taken to spread awareness among retailers to safely and hygienically store the Cadbury products. The teams including officials from Cadbury will visually check the storage facilities and Cadbury-supplied chocolate dispensers. The talks with owners will be about educating them about proper handling and storage of chocolates. Till now around 190,000 retailers from different cities are covered in this awareness programme.
  • The company has decided to change the packaging of all the chocolates. The new packing will be safer and air-tight. There won’t be any chances of infestations.
  • For stockists and wholesalers, the company has decided to reduce the size of master packing. Earlier it used to have 60 bars and now it will have 22 bars. This step will also ensure the fast supply and proper hygiene of stock, although it will cost the company but for Cadbury its “Customers First”.

We again want to tell the truth to customers that Infestation was a storage problem and it is always risk-free to eat Cadbury Chocolates. Consumers must exercise same care while purchasing the chocolate as any other food item.

For more information, the management from the company will always be there. As long as there's a need, regardless of how substantial or little, we will answer the call for help in every way possible.

Project Vishwas - Steps to Ensure Quality and Regain the Confidence

Cadbury India Ltd, is a subsidiary of Cadbury Schweppes Overseas Ltd operating in more than 50 countries worldwide.  Cadbury is operating in India since 1948, and at present has five manufacturing units.

FDA MAHARASHTRA

MUMBAI

INDIA

Ref. No. ____________________________                                                       Date: ___________

From:

[Name of the Manager]

Manager

Cadbury India Ltd.

To:

Mr. [Name of the Commissioner]

Commissioner

Food and Drug's Administration & Food Safety Commissioner,

Maharashtra State

Toll Free: 1800 222 365

Fax No.: 022-26591959

e-mail: [email protected]

Sub: Steps to ensure quality and safety.

Sir,

There was a complaint on October 3, 2003 about infestation and worms in some chocolate bars of Dairy Milk. Food and Drug Administration took some important decisions such as seizing the chocolate stock and sending the samples for test. We completely support Maharashtra Food and Drug Administration’s decision because our first concern is also the health of consumers.

This is to inform you that we have taken complete responsibility of this matter and have taken steps to solve the issue. At Cadbury, we believe that doing good is good for us. The company has launched “Project Vishwas” which is aimed to ensure the quality and regain the confidence of consumers. This is a three-step strategic programme that covers packaging, distribution chain and retail channels.

We did our own research and found that this infestation has nothing to do with manufacturing. It is clearly a storage problem. The stock of chocolates was not properly stored as the chocolates should be and resulted in infestation. Based on the feedback received from retailers, consumers, distributors and FDA in the past two weeks, the company has come with a three-step programme called as “Project Vishwas”. The outlines from this project are as follows:

  • The packaging of individual bars will be changed. Also, the bulk packaging that contains 60 bars at present will be reduced to 22 bars. This will ensure fast supply and proper hygiene of the stock.
  • A team of Quality managers along with 300 sales persons from Cadbury have already visited 50,000 retailers in Maharashtra to inspect the stock and have replaced any questionable stock immediately.
  • The retailers and distributers will be made aware about safely and hygienically storing Cadbury products. This work is already started and the teams have covered around 190,000 retailers from different cities.

For any type of clarification regarding this issue or any other, the management of the company will always be there. We will keep you updated with every step taken in the direction to resolve this problem.

Thank You!

Yours Faithfully,

[Signature]

[Name of the Manager]

Manager, Cadbury India Ltd.

References

Levick, R. (2016). Cadbury’s Crisis Case Study: A Lost Classic - Public Relations & Strategic Communication. [online] Public Relations & Strategic Communication. Available at: https://levick.com/blog/crisis/cadburys-crisis-case-study-lost-classic/ [Accessed 17 May 2017].

Malhotra, J. (2009). Official or Govt. Correspondence. [online] India Study Channel. Available at: https://www.indiastudychannel.com/resources/69286-Official-or-Govt-Correspondence.aspx [Accessed 17 May 2017].

Puri, B. and Clark, S. (2012). How to Transform Consumer Opinion when Disaster Strikes / The 2003 Cadbury India Worm Infestation. 1st ed. [ebook] Massachusetts: The Fletcher School, Tufts University. Available at: https://www.google.co.in/url?sa=t&rct=j&q=&edata-src=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwidtYzk7vjTAhUOSI8KHbW6DS8QFggmMAA&url=http%3A%2F%2Ffletcher.tufts.edu%2F~%2Fmedia%2FFletcher%2FMicrosites%2FCEME%2Fpubs%2Freflections%2FCadbury%2520Case%2520Final%25202012.pdf&usg=AFQjCNFRf1NpHrTL3w6SLXD5n4YoCU28JA&sig2=9_fA_XqNSKxhtHVZDMqPdQ [Accessed 15 May 2017].

Thehindu.com. (2003). The Hindu: Cadbury announces strategy for ensuring quality. [online] Available at: https://www.thehindu.com/2003/10/16/stories/2003101603751200.htm [Accessed 17 May 2017].

The Economic Times. (2003). Cadbury unveils 'Project Vishwas' - The Economic Times. [online] Available at: https://economictimes.indiatimes.com/magazines/rtf1ansiansicpg1252deff0deflang1033fonttblf0fnilfcharset0-arialf1fnil-arialcolortbl-red0green0blue0viewkind4uc1pardcf1bfs16-brand-equityb0f1fs20par/cadbury-unveils-project-vishwas/articleshow/235678.cms?intenttarget=no [Accessed 17 May 2017].

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