A crisis (plural: crises) (from the Greek κρίσις) may occur on a personal or societal

level. It may be an unstable and dangerous social situation, in political, social,

economic, military affairs, or a large-scale environmental event, especially one
involving an impending abrupt change. More loosely, it is a term meaning 'a
testing time' or 'emergency event'.

Crisis has four defining characteristics. Seeger, Sellnow and Ulmer[1] explain that
crises are "specific, unexpected, and non-routine events or series of events that
[create] high levels of uncertainty and threat or perceived threat to an
organization's high priority goals." Thus the first three characteristics are that the
event is 1. unexpected (i.e., a surprise), 2. creates uncertainty, and 3. is seen as a
threat to important goals. Venette[2] argues that "crisis is a process of
transformation where the old system can no longer be maintained." Therefore the
fourth defining quality is the need for change. If change is not needed, the event
could more accurately be described as a failure.

DEFINATIONS OF CRISIS

Crisis management is the process by which an

organization deals with a major unpredictable

event that threatens to harm the organization

 A term that refers to a three-stage process

from the incubation of crisis potential,

through incident management to post

incident media management and brand

repositioning.

 A form of decision making that is a seat-of-

the-pants response to the issue of the

 moment with no consideration of longer-

term effects.

 A crisis can be described as a period of

potential or actual damage to the

perception and/or reputation of an

organisation, individual or concept caused

or started by an unexpected event. Forward

planning can prevent a crisis or minimise

the impact of one that is already happening.

The origins of chocolate can be

traced back to the ancient Maya
and Aztec civilisations in Central
America, who first enjoyed
'chocolatl'; a much-prized spicy drink made
from roasted cocoa beans.

Throughout its history, whether as cocoa or

drinking chocolate beverage or confectionery
treat, chocolate has been a much sought after
food. 

Because cocoa beans were valuable, they were

given as gifts on occasions such as a child
coming of age and at religious ceremonies.
Merchants often traded cocoa beans for other
commodities such as cloth, jade and
ceremonial feathers.
''Chocolate' (in the form of a
luxury drink) was consumed in
large quantities by the Aztecs: the
drink was described as 'finely
ground, soft, foamy, reddish, bitter with chilli
water, aromatic flowers, vanilla and wild bee
honey'.The dry climate meant the Aztecs were
unable to grow cocoa trees, and had to obtain
supplies of cocoa beans from 'tribute' or trade.

The Spanish invaded Mexico in

the 16th century, by this time the
Aztecs had created a powerful
empire, and the Spanish armies
conquered Mexico. Don Cortes was made
Captain General and Governor of Mexico.
When he returned to Spain in 1528 he loaded
his galleons with cocoa beans and equipment
for making the chocolate drink. Soon
'chocolate' became a fashionable drink
enjoyed by the rich in Spain..

The secret of chocolate was taken

to France in 1615, when Anne,
daughter of Philip II of Spain,
married King Louis XIII of
France.

The French court enthusiastically adopted this

new exotic drink, which was considered to
have medicinal benefits as well as being a
nourishing food.
Gradually the custom of drinking chocolate
spread across Europe, reaching England in the
1650s.

Up until this point all

chocolate recipes were based
on plain chocolate .

It was an English doctor, Sir

Hans Sloane, who - after
travelling in South America -
focused on cocoa and food
values, bringing a milk
chocolate recipe back to
England.

The original Cadbury Milk Chocolate was

prepared to his recipe.

 
 CAMPAIGN SUMMARY
On October 3, the Food and Drug Administration Commissioner received
complaints about infestation in two bars of Cadbury Dairy Milk, Cadbury India’s
flagship brand with over 70% market share. He ordered an enquiry and went
directly to the media with a statement. Over the following 3-week period, resultant
adverse media coverage touched close to 1000 clips in print and 120 on TV news
channels. In India, where Cadbury is synonymous with chocolate, the company’s
reputation and credibility was under intense scrutiny. Sales volumes came down
drastically in the first 10 weeks, which was the festival season; retailer stocking
anddisplay dropped employee morale - especially that of the sales team - was
shaken. The challenge was to restore confidence in the key stakeholders
(consumers, trade and employees, particularly the sales team) and build back
credibility for the corporate brand through the same channels (the media) that
had questioned it.
A focused and intense communications program was implemented over the next
six months to rebuild credibility and restore confidence among the key
stakeholders. The results:
- In media, the key message that infestation was a storage-linked problem, not
manufacturing related, found widespread acceptance. Across the board, media
carried Cadbury’s point-of-view on the issue.
- Sales volumes climbed back to almost to pre-crisis levels eight weeks after the
launch of new packaging – a concrete step taken by the company to minimize the
incidence of infestation. This reflected consumer confidence in the brand and the
company.
- There was significant upward movement in ratings amongst consumers on
parameters like company’s image, responsiveness of company and behavioral
parameters like intention to buy Cadbury chocolates.
The last two helped to restore faith in the corporate brand among the trade and
employees.

MARKETING CHALLENGE AND OBJECTIVES

On October 3, the Food and Drug Administration (FDA) Commissioner received
complaints about
infestation in 2 bars of chocolates. He ordered an enquiry and went directly to the
media with a statement.
Huge media attention and the graphic nature of the coverage resulted in the
consumer perception that every bar could be infested. The incident came close on
the heels of a cola controversy where a scientific laboratory declared colas unsafe
due to high levels of pesticide. The jury was still out on that issue and so this
incident acquired political overtones with parties decrying Cadbury as an
irresponsible MNC. Andrea Dawson-
Shepherd, Global Corporate Communication Counsel, Cadbury Schweppes called
it ‘the worst worm
infestation-related crisis anywhere in the world’.
The immediate objective was to get the following key messages across:
o Infestation could never occur at the manufacturing stage
o The problem was storage linked; this without alienating trade channels
o Cadbury Dairy Milk continued to be safe for consumption
The challenge was to restore confidence in the key stakeholders (trade and
employees, particularly salespersons) and build back credibility for the corporate
brand through the same channels (the media) that questioned it.

TARGET MARKETS
The problem started in one city, Mumbai, but later spread to other towns in the states of
Maharashtra and Kerala. But it became a nationwide crisis since 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 stakeholder 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 salespersons as the third group.

STRATEGY
It was decided from the start to address the issue head-on and take whatever steps were necessary
to restore confidence. Having historically maintained a low profile with the media and let its
brands and its performance speak for it, the company began to cultivate relationships with the
media and turn it into an ally and a credible, independent endorser to rebuild stakeholder
confidence.

CAMPAIGN RESULTS AND MEASUREMENT

Media Coverage: The media relationship effort clearly helped in making media accept that
the
infestation was genuinely caused by storage-linked problems. From the start, all media reports
carried the Cadbury’s point-of-view. Bad news automatically gets great coverage. However,
the agency helped Cadbury get a total of 378 clips in over 11 languages covering the new
packaging, and its benefits, in January 2004. The Business Today clip is a typical representation
of the changed media perception and a better understanding of the problem over a three month
period.
Sales: Sales volumes, which declined drastically between week 1 and week 10 of crisis,
climbed back almost to the pre-incident levels by week. within 8 weeks of introduction of new
packaging and
communication. This is a clear reflection of restoration of consumer and hence trade
confidence in the corporate brand.
Image: There was significant upward movement in ratings amongst consumers on parameters
like company image, responsiveness of company and behavioral parameters like intention to buy
Cadbury chocolates.
While the new product introduction and advertising had their role to play in the changing
consumer perceptions, the media’s positive coverage and the trade’s positive pre-disposition
played a huge part in helping Cadbury regain its reputation in the market.

CASE STUDY
Three years back, Cadbury's found itself in the eye of a storm, when a few
instances of worms in its Dairy Milk bars were reported in Maharashtra
In less than two weeks, the company launched a PR campaign for the trade. And
three months later, came an ad campaign featuring Big B and a revamped poly-
flow packaging.
Marketing and communications experts brought together by AICAR and the
Subhash Ghoshal Foundation say that Cadbury moved quickly to bear the cost of
damage.

And thanks to its equity with the consumers, Cadbury's won back consumer
confidence, with hit on sales notwithstanding.
In October 2003, just a month before Diwali, customers in Mumbai complained
about finding worms in Cadbury Dairy Milk chocolates. Quick to respond, the
Maharashtra Food and Drug Administration seized the chocolate stocks
manufactured at Cadbury's Pune plant.
In defense, Cadbury issued a statement that the infestation was not possible at the
manufacturing stage and poor storage at the retailers was the most likely cause of
the reported case of worms.
But the FDA didn't buy that. FDA commisioner, Uttam Khobragade told CNBC-
TV18, "It was presumed that worms got into it at the storage level, but then what
about the packing - packaging was not proper or airtight, either ways it's a
manufacturing defect with unhygienic conditions or improper packaging."
That was followed by allegations and counter-allegations between Cadbury and
FDA. The heat of negative publicity melted Cadbury's sales by 30 per cent, at a
time when it sees a festive spike of 15 per cent.
For the first time, Cadbury's advertising went off air for a month and a half after
Diwali, following the controversy. Consumers seemed to ignore their chocolate
cravings.
As a brand under fire, in October itself, Cadbury's launched project 'Vishwas' - a
education initiative covering 190,000 retailers in key states. But what the company
did in January 2004 is what really helped de-worm the brand.
By investing up to Rs 15 crore (Rs 150 million) on imported machinery, Cadbury's
revamped the packaging of Dairy Milk. The metallic poly-flow, was costlier by 10-
15 per cent, but Cadbury didn't hike the pack price.

Bharat Puri, managing director, Cadbury's India says, "While we're talking about
a few bars of the 30 million we sell every month - we believe that to be a
responsible company, consumers need to have complete faith in products. So even
if it calls for substantial investment and change, one must not let the consumers
confidence erode."
Simultaneously, Cadbury's roped in brand ambassador Amitabh Bachchan to do
some heavy duty endorsement putting his personal equity on the line for the brand.
The company upped ad spends for the Jan-March quarter by over 15 per cent. The
recovery began in May 2004, and by June, Cadbury's claimed that consumer
confidence was back.
These experts believe that the reason for Cadbury's success was that it took
crisis head-on. And the consumers were more forgiving, because the brand enjoyed
an emotional equity in India.
Santosh Desai, former president, McCann-Erickson says, "The nature of the
relationship that Cadbury's has built with the consumer is responsible for latitude
the consumers are giving it.
"They are seeing it as a lapse, not a breach of trust - this difference is key. What
Cadbury's set out to deliver, it goofed up once but it seemed to be very sincere in
its intent to get things right."
Even so, other experts felt Cadbury's was itself to blame for the worm crisis.
Mahnaz Curmally, PR counsel, explains, "Cadbury's had known for a long time
that packaging needed change, so in a sense, they waited for something to happen
before they made that change and perhaps in hindsight, they could have made that
change voluntarily."
Cadbury's could be case study of a sweet recovery from a crisis. It continues to
lead the Indian chocolate market with over 70 per cent marketshare. However, the
experts feel that today's constantly changing environment should keep the
company on guard.
 

Cadbury EGM Announcement

CADBURY INDIA LIMITED
Cadbury House, 19, Bhulabhai Desai Road
Mumbai 400 026
ANNOUNCEMENT
At the Extra-ordinary General Meeting of the
Company held on 16th November 2009 at
2.00 p.m at Sunville, Royal Room, 3rd floor,
9 Dr. Annie Besant Road, Worli, Mumbai
400018, a Poll was demanded on the Special
Resolution for reduction of Paid-up Capital of
the Company by paying off/returning to the
Equity Shareholders (other than the
Promoters viz. Cadbury Schweppes Overseas
Limited and Cadbury Mauritius Limited), a
sum of Rs. 1340/- per share. As per the
Report submitted by the Scrutineers
appointed at the Meeting, the Special
resolution was passed with requisite
majority. 

Date : 18th November 2009.

Mumbai
By
the
order
of the
Boar
d of
Direc
tors
 of
CAD
BUR
Y
INDI
A
LIMI
TED
 
Sd/-
MO
NAZ
NOB
LE
Com
pany
Secre
tary

 
Get ready to experience a tasty recharge of
energy
 
Cadbury launches 'Perk with Glucose Energy'
 
Chennai, November 09, 2009: Glucose
energy and the taste of Cadbury is an
irresistible combination. Cadbury India brings
this tempting recipe to consumers with their
latest offering ‘Perk with Glucose Energy’.  

A first for India, Cadbury Perk with Glucose

Energy is a new innovation that is aimed to
appeal to consumers’ taste buds. Targeted at
14-18 year olds, it is a fun treat which
combines energy giving glucose with great
chocolate taste.

Since its launch in 1996, Cadbury Perk has

been one of Cadbury’s leading brands and a
preferred choice for casual snacking with its
light chocolate and wafer construct. Over the
years, Perk has successfully built a distinct
and iconic status for the brand among the
youth of India.

Commenting on the launch, Mr. Anand

Kripalu, MD, Cadbury India said,“This is the
first chocolate in India to contain Glucose. 
The recipe breakthrough has been made
possible by the Cadbury India Science &
Technology team.”  

The announcer advertisements will be on air

from mid-November. Created by Ogilvy &
Mather Advertising, it will be centered
around the theme of “Naya Perk with Glucose
Energy.” 

Mr. V. Chandramouli, Executive Director,

Strategy, Cadbury India added, “One of the
key objectives for the launch is to expand the
chocolate category by providing superior
value to consumers in the form of taste and
price. The added benefit of Glucose, gives
 consumers more reasons to consume Cadbury
Perk. We also want chocolate consumption
occasions to be regular amongst non users
and thus expand the category.” 

With the launch of Perk, Cadbury aims to

accelerate market growth by an additional 5%
annually. An integrated marketing campaign
will be launched in the second week of
November to create awareness around the
product. The 360-degree marketing
communication will encompass TV, Outdoor,
tie-ups and sampling activities. 

Perk with Glucose Energy consists of crispy

wafer enrobed with Cadbury with two pieces
in each pack affordably priced at Rs. 2/- for
7.5 gms & Rs.5/- for 21 gms. It will be
available at all retail outlets across cities in
the country.
 

 
Asian Marketing Effectiveness Awards 08
Asian Marketing
Effectiveness Awards
2008 for Bournvita
Folk/Fusion campaign - GOLD award for the
"Best Insights and Strategic Thinking" and
SILVER award for the 'Most Effective Use of
Advertising'.
The Asian Marketing Effectiveness Awards
are the region's most prestigious awards that
celebrate resourceful Asian marketing. They
are designed to set the standard for effective
marketing within the region, and aim to
uncover the campaigns that show results
through innovative spirit and combining
creativity with effectiveness to build world
class brands.
 

 
Cadbury India ranked 7th Great Place to Work
in India
No. 1 FMCG Company
Cadbury India has been ranked
as the 7th Great Place to Work
and the No. 1 FMCG company
in India in 2008, by the Great Place to Work
Institute. 

This study, in its fifth year in India , has a

presence in 30 countries and is the oldest,
most comprehensive and respected workplace
study worldwide. Over two hundred
companies throughout India participated in
the survey, which measured the degree of
satisfaction of employees with their place of
work and picked out the best working
environments. This is the fourth time we have
featured amongst the Great Places to Work in
India . We were ranked 10th in 2003, and
were among the top 25 in 2004 and 2005.
 

 
Great Place to Work 2007
'Cadbury India' has been
awarded the "Bronze Award
for Excellence in People
 

 
ABBY Award wins for India.
The prestigious ABBY
awards, held in March,
recognise creative excellence
in the Indian Advertising
Industry. The Ulta Perk
campaign won four Silver
Awards in total and the
Cadbury Dairy Milk
Campaign, Miss Palampur,
also won a Silver Award. This year Cadbury
also sponsored the new 'Young ABBY'
Award.
 

 
Bournvita won the Emmvie Gold for the 
Best Media Innovation - TV.

Cadbury won the Emmvie Gold for the Best

Media Innovation - TV, for brand Bournvita,
for the entry Physical symbol of Confidence.
 

 
Cadbury Dairy Milk & Bournvita crowned as
Consumer Superbrands
 Cadbury Dairy Milk & Bournvita have done
it again. For the 
second time running, Cadbury Dairy Milk &
Bournvita have been declared a `Consumer
Superbrand' for 2006-7 by Superbrands India.
 

 
Cadbury- Ranked among India's most
respected companies
Cadbury India has been ranked 5th in the
FMCG sector, in a survey on India's most
respected companies by sector conducted by
Business World magazine in 2007.