The next round of activity will include the wafer-chocolate Perk and the Picnic bar,

which has faced problems with its taste, because of the peanut it contains. Milk treat has
also been launched in a module bar form, just in time of Diwali gifting market. Éclairs
has got potential for much wide distribution, in a small sweets that airlines, hostels, and
up market retail outlet offer to guest and customers.
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H
Cadbury India operates in
four categories:
1.Chocolate Confectionery
(Cadbury Dairy Milk, 5 Star,
Perk, Éclairs and Celebrations)
2.Milk Food Drinks
(Bournvita)
3.Candy (
alls)
4.Gum category (Bubbaloo)

 Market high quality & Superior value products

 Continuously improving and exceeding consumers
expectations.
 Commitment to quality and safeguard the reputation of
Cadbury.
 Maintain a right first time culture that consistently
embraces
quality and food safety.
Operate Audited quality management systems that
continually
improve the processes
 W ork with our supply chain and business partners to
assure
compliance with our quality policy and systems ensuring
quality
throughout our supply chain
‡ Worm
controversy hit Cadbury in Oct 2003
‡ Fungus layer on portions of its chocolates

‡A swarm of tiny white worms crawling out of the chocolate

nuggets
‡State FoodLaboratory at the PublicHealth Institute said the

chocolates were insect-infested and unfit for eating

‡Food and DrugsAdministration (FDA) began seizure of the

chocolate not only from all outlet across the state but also from
the Talegaon Plant
‡ FDA also ordered inspection of Stock at companys

Mumbai Plant
‡Peak Season Sale and outsourcing model affected due to

controversy

 The heat of negative publicity melted Cadbury's sales by 30

per
cent, at a time when it sees a festive spike of 15 percent.
 N et profit in 2003 dipped 37 per cent to Rs 45.6 crore as
compared to a 21 per cent increase the previous year.
 Retailer stocking and display dropped, employee morale
especially that of the sales team was shaken.
 The Company had to shelve its plans of becoming a major
sourcing hub for British Chocolates and beverages giant Cadbury
Schweppes.
 The largest impact on sales has been seen in Mumbai, Pune
and
Nagpur in Maharashtra, Cochin in Kerala, Bangalore and
Hyderabad.

Effects
Reasons
 A ggressive marketing by Company while
neglecting on
the Quality of Retailers
 Lack of efforts to Educate Retailers and ensure
adequate
hygienic storage conditions at retail outlets
 Poor quality in packaging of product
 Issues related to transportation of product
 No Norms in terms of Storage for Chocolates

Two Phase Strategy

Phase 1: Presenting Cadburys view
(October-December 2003)
 the agency set up a media desk to
ensure that no media query went
unanswered.
 the Cadburys Managing Director
addressed consumer concerns
 Project Vishwas (Trust)
 E ditorial Outreach Program with 31
media editors across affected cities

Cadbury Final Presentation

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