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PR Case Study

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by

Ansley Ponder

on 6 May 2015

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Transcript of PR Case Study

History
Cadbury was founded in 1824 by John Cadbury.
Mission
: "to provide customers with a tempting and exquisite taste"
1905
- 'Dairy Milk Bar'- "a chocolate bar made with fresh liquid milk, a glass and half for every pound of chocolate". It became the market leader in the UK when it launched in 1900.
Crisis
October 3, 2003- infested candy bar
FDA Action
Opinion- "It was presumed that the worms got in at the storage level, but then what about the packaging-packaging was not proper or air tight, either way it's a manufacturing defect with unhygienic conditions or improper packaging" (Vaid, 2006).
Goals & Objectives
Project Vishwas (Project Trust)
An Editorial Outreach program was coordinated by the agency to get senior Cadbury spokespeople to share their versions of event one-on-one.
"Facts about Cadbury"
Ad that showed manufacturing and storage of the bars
"Infestation could never occur at the manufacturing stage, the problem was storage linked."
To restore confidence in the key stakeholders
Build back credibility through the same channels that questioned it
Strategies & Tactics
Strategies & Tactics
Cadbury completely reconstructed the packaging of Dairy Milk
Double wrapping of for maximum protection
Media conference that compared the old and new packing
Cadbury hired Amitabah Bachchan, a legendary Indian film star, to be a spokesperson
Research
Kraft Food Vice President Bharat Puri:
How to Transform Consumer Opinion when Disaster Strikes/ The 2003 Cadbury India Worm Infestation
"[Cadbury's] reaction offers valuable insight regarding how to quickly and effectively gain consumer trust"
Research
The consequence of the constant media coverage was immediate: Sales crashed by 30%

Cadbury surveyed 200 consumers in 7 cities.

69% did not want their children to buy Cadbury

58% would not buy it
Research
Three clear messages
1. Infestation was a storage problem
2. It was safe to eat Cadbury chocolate
3. Consumers must exercise the same care in purchasing Cadbury chocolates as they would with any other food

Cadbury monitored consumer opinion by identifying four kinds of customers: loyalists, fence sitters, pseudo-rejectors and rabid rejectors

The actions that the organization carried out resulted in a major upward movement

Consumer confidence in the brand was back!
Evaluation
Results:
Success due to strategic internal/external actions
Internal- employee letters, meetings, visiting markets
External- Packaging, Project Vishwas, retail monitoring and education program, continuing investments
Took responsibility even though issue was in packaging not manufacturing
Success also due to media coverage
1000 clips in print and 120 aired on TV news channels
Sales dropped 30% during incident, but were almost back to normal only 8 weeks later

Analysis
Key Takeaways:
Denial is not effective when trying to win back customer trust
Developed proper PR strategy promptly and took responsibility
Focused on the problem at hand and went to great efforts to correct it and ensure future product quality.

Analysis
Strengths
Effective internal/external strategy, involved and updated the media
Weaknesses
Initial denial of responsibility
Good example of effective re-branding and regaining customer confidence after a very controversial issue
Proposed an honorable solution by accepting fault, taking responsibility, and going to great lengths to prevent a future problem from occuring

Bejoria, J. (2003, October 4). Cadbury denies Dairy Milk infestation. BBC News. Retrieved from http://news.bbc.co.uk/2/hi/business/3164364.stm
Bhasin, K. (2011, May 26). 9 PR Fiascos That Were Handled Brilliantly By Management. Retrieved from http://www.businessinsider.com/pr-disasters-crisis-management-2011-5?op=1#ixzz3YilJtMkg
Cadbury Dairy Milk. (n.d.). Retrieved from http://in.mondelezinternational.com/brand-family
Case Study: Cadbury Crisis Management (Worm Controversy). (n.d.). Retrieved fromhttp://www.mbaknol.com/management-case-studies/case-study-cadbury-crisis-management-worm-controversy/
Prasad, M. (2011). Product Profile/Cadbury Dairy Milk [PDF document]. Retrieved from http://www.slideshare.net/manoharprasad/cadbury-product-profile
Puri, B., & Clark, S. (2012, April 1). How to Transform Consumer Opinion when Disaster Strikes / The 2003 Cadbury India Worm Infestation. Retrieved April 30, 2015, from http://fletcher.tufts.edu/~/media/Fletcher/Microsites/CEME/pubs/reflections/Cadbury Case Final 2012.pdf
The Story. (n.d.). Retrieved from https://www.cadbury.co.uk/the-story
Vaid, M. (2006, December 24). How Cadbury’s won the battle of worms. Retrieved fromhttp://www.rediff.com/money/2006/dec/24cad.htm
Worms found in Cadbury Cashew Magic. (2003, October 31). The Times of India. Retrieved from http://timesofindia.indiatimes.com/city/bengaluru/Worms-found-in-Cadbury-Cashew-Magic/articleshow/259825.cms
Worm Infestation: India
Grace Huggins, Brittany Wilson, Sarah Eisele, Ansley Ponder
Full transcript