Cadburry and Ogilvy

8/11/2019 Cadburry and Ogilvy

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The Cadbury- O&MSuccess StoryANALYZING ADVERTISING STRATEGY AND EXECUTION FOR REVIVING THESTAGNATED CADBURY BRAND


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Introduction

Cadbury IndiaStarted in 1948- Imported chocolates

Popular products include CadburyDairy Milk, Bournvita, Eclairs etc

70% market share- the most forCadbury in any country

Managing Director- Anand Kripalu

Ogilvy & MatherIncorporated in India in August 1under the name of DJ Keymer &Co. LtdOgilvy & Mather was launched inNew York in 19481 st Advertising agency in IndiaExecutive Chairman and CreativDirector for India and South AsPiyush Pandey

The Cadbury- O&M Success Story


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October 3, 2003



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The Problem

In eight outlets across Maharashtra, worms were found in some bars ofCadbury Dairy Milk

Inquiry was instituted by the Food and Drug Administration and negativemedia publicity spread like wildfire

Consequently, sales volume plummeted, retailer cooperation lessenedand employee morale dwindled. All in all, the company's credibilitysuffered extensive damage.



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The Crisis

Reputation and credibility was under intense scrutiny

Sales volumes came down drastically in the first 10 weeks

Employee morale especially that of the sales team was shaken

Due to which media coverage touched close to 1000 clips in print and 120on TV news channels

Assumption that every chocolate could be contaminated waswidespread

The Maharashtra Food and Drugs Administration (FDA) had announcedthat it would prosecute Cadbury India Ltd. after tests indicated "insectinfestations" in the chocolate samples tested.



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Effect

There was a 30% drop in sales

Continuous negative publicity



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Challenges

To Restore confidence in the key stakeholders

Build back credibility

Make customer believe about safety

To increase the sales



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Objectives

In response to the crisis, Cadbury therefore developed three keymessages:-

Infestation was a storage problem

It was safe to eat Cadbury chocolates

Consumers must exercise the same care in purchasing a chocolate as theywould when buying any food item



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Response

They did not deny the fact of worms being present in the chocolates

Project Vishwas

Advertisement featuring Amitabh Bachchan

Revamping of packaging of Dairy Milk



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IMC Techniques Adopted

Advertising

The company began its multi-pronged campaign on key print, broadcastand electronic media, to regain its lost credibility and almost reestablishedthe category

Message strategy

It decided to convey that the root of the problem was at the distributionend, that any food item could face similar infestation, and yet Cadburywould take initiatives to check the problem



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The Situation

Identification of four stakeholders the consumers, its employees, themedia, and the government authorities (i.e. the FDA)

Situation with FDA would improve as the company was strictly adhering tofood safety laws

Attention from media would fade as media would lose interest and findother stories to cover



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Implementation of Actions

Internal ActionsLetters from MD to the employees

Employees were asked to go to themarkets and check for themselves

Series of town hall meetings were held

Regular email updates

External ActionsPackaging

Project Vishwas

Two advertisements featuring Amitabh

BachchanMedia conferences

Platform of BQC

Retail monitoring and education progra

Toll free numbers and emails to the reta



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Project Vishwas

Through project Vishwas Cadbury released advertisement of Facts aboutCadbury in 55 publications in 11 languages

Advertisement presented facts about Cadburys Manufacturing andstorage facilities



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Appointment of Amitabh Bachchan

Appointed as brand ambassador for a period of two years

The company believed that the reputation he has built up over the lastthree decades complements their own, which was built over a period of50 years

Amitabh Bachchan played a pivotal role in all communication relating toCadbury's products and brands

Aimed at rational and emotional appeal



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Result

Infestation was effectively communicated as a Storage-linked problem,not manufacturing related

Sales volumes climbed back

Significant upward movement in ratings

Within eight weeks of the introduction of its new packaging andadvertising campaign, sales had almost reached pre-crisis levels

Cadbury has maintained its position at the top of the Indian chocolateindustry ever since



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Evaluation Metrics

TIME AFTER THE CRISIS

4 weeks 24 weeks +/- changePerception of Cadbury': Trusted company 39% 49% +10% Sells products of highest quality 47% 56% +9% Related to the infestation: There is an issue with chocolates 83% 74% -9%

Will stop consuming chocolates altogether 17% 12% -5% On steps taken by the company:

Awareness of the steps taken by the company 31% 46% +15% Awareness of packaging change 32% 58% +26% Appropriateness of steps taken -- 86% -- Behavioral change parameters: Willing to buy Cadbury Dairy Milk for their children 42% 78% +36%

Intention to purchase Cadbury Dairy Milk among those aware of the problem -- 80% --

Ref. TNS track of consumer confidence on Cadbury in Mumbai, Delhi, Chennai, Lucknow and Kochi



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Conclusion

Through timely and consistent marketing communications Cadburysucceeded in solving a daunting business crisis

With a 360-degree communications approach that targeted variousaudiences, Cadbury could quickly control and off-set the negative wordof mouth it had received

By integrating a variety of tools like press release and conferences,consumer advertising, trade advertising, point-of-purchasecommunications, packaging initiatives, email communications and thelike, all focusing on the same problem, Cadbury could communicate aunified message and get audiences to appreciate the efforts it had takento minimize instances of future occurrences



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Thank You!

Kuch Meetha Ho Jaaye?


Cadburry and Ogilvy

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