Cadbury Worm Controversy

Cadbury issued a statement where it mentioned that problems was not at the time of manufacturing stage but the problems arose due to poor storage facility by retailers.

FDA denied the statement made by Cadbury and announced that it would prosecute Cadbury India Ltd.

After the test indicated “insect infestation” in the chocolate sample test.

FDA officials conducted raids at Telegaon plant of the company as well as stockist’s premises throughout Maharashtra.

Then there were many allegations and counter allegations between Cadbury and FDA. Due to this event reputation of the Cadbury was hampered Cadbury sales went down by 30% which they want to raise by 15% due to negativity publicity.

For the first time Cadbury’s advertisement went of air for one and a half months after Diwali due to this controversy.

The authorities have however decided not to shut down the plant or cancel the license of company to manufacture chocolates.

Recovery strategies:

Target market:

The problem started in one city, Mumbai. But after it is spread to other towns in the states of Maharashtra and Kerala. But it becomes a national wide crisis because national media covered it. So clearly the first target audience that needed to be addressed was the media both electronic and print media, national and local. Additionally, two other stake holder groups were identified. Trade partners, as their confidence was shaken. Finally, as intense media coverage continued. It became important and critical to include the employees especially sales as the third group.

Strategy:

It was decided to take whatever steps were necessary to restore the confidence. Having historically maintained a low profile with media and let its brands and its performance speaks for it. The company began to cultivate relationships with the media and rebuilt stake holder’s confidence.

Phase-1

·        Presenting Cadbury’s point of view.

·        The day which crisis broke the agency setup a media desk to ensure that no media query went unanswered from day 1 story carried Cadbury’s point of view.