Cadbury manages a crisis with IMC Submitted to, Prof. Jacob Alexander Submittted by, G.Praneetha (08PG301), Marketing B Brief Introduction Cadbury manages a crisis with Integrated Marketing Communications This case study gives us an insight on the importance of integrated marketing communications. This case study is about Cadbury, the crisis it went through during October 2003, its consequences and role of IMC in handling the situation Cadbury India Ltd is the market leader in Indian confectionary segment. Its major product is Dairy Milk which has sales of close to one million bars per day. During October 2003, worms were found in Cadbury bars at eight outlets in Mahrashtra. The consequences were terrible and led to dip in sales volume, less co-operation from retailers and morale of employee dwindled. The media publicity spread like wild fire and the common perception of consumers was that every Cadbury bar could have worms in it, which tarnished the brand image of the company. With through investigation, Cadbury identified that the cause for this was lenience by the retailers who placed the chocolate beside items which were susceptible to worms. Corrective actions taken by Cadbury Cadbury took the responsibility for the slack in educating retailers It launched a three pronged program – Project Vishwas that addressed trade, consumers and media and employees A retail monitoring and education program was launched that performed quality checks at over 50,000 outlets and educated 190000 wholesalers and retailers regarding storage requirements. Cadbury’s MD urged the media to assure the consumers that Cadbury was safe to eat. He also emphasized on the care a consumer needs to take before buying a chocolate. Employees were briefed about actions taken through meetings with senior managers. With the help of the proper mix of IMC tools they regained their ‘Brand Identity and Equity’ and their market share. Answers 1. Role of IMC in worm crisis management by Cadbury The ‘Relationship Marketing’ which involves creating, maintaining and enhancing long-term relationship with customers as well as other stake holders for benefits. This strategy along with a 360o communication has helped ‘Cadbury’ in managing the crisis of worm in the chocolate. An ‘Informative Advertisement’ was developed regarding the facts of Cadbury was published annually nationally in 55 trade publications informing channel members about remedial measures. This ‘National Advertising’ was on a nation-wide basis covering the mass. Posters and leaflets were distributed to retailers to share with consumers the initiatives taken by Cadbury. ‘Brand Strength’ was built by setting up a toll free number and an email id was created for consumers to contact the company directly. ‘Brand identity’ was created through by changing the package design, which covered the bar in multiple layers and from all sides. This fulfilled the promise made by Cadbury to media and consumers. Cadbury roped in Amitabh Bachan as their Brand ambassador to reinstate public confidence. The ‘Project Vishwas’ has shown their social responsibility on educating the retailers and dealers regarding the storage condition of the product. It is proven that the survey has revealed a positive change in consumer perceptions and an increase in their likelihood to buy. Also the sales grew by 20% in 2 years after the implementation of IMC. Objective of the Campaign The main objective of ‘Integrated Communication Marketing’ is to build the brand in all perspective with all the stakeholders. The main objectives of the campaign were to re-built the reputation, trust and loyalty among the consumers, media and employees and regain their market position. Also to development of private assurance standards working at both organizational and supply chain levels and the protection of the corporate and product brand. 2. IMC tools used in the campaign Publicity The main objective of the campaign through publicity is to communicate the customers regarding the fact that has happened and assure them on their safety. Press Release - IMC played a major role in the process of developing and sustaining their ‘Brand Identity and Equity’. The extensive media coverage that highlights the company’s perspective instead of pointing out them is one of the important points. Media Coverage – Company instituted a media desk and diligently answered every media query. Also Company’s Managing Director aired in media to assure consumers that Cadbury are safe to eat. Sales Promotion The objective here is to regain the sales by differentiating the product when compared before with additional value added features. Packaging Initiatives - The change in their packaging design with an aluminium foil, heat-sealed for complete protection from all sides and further encased in a poly-flow pack supported them in regaining their Brand Identity. Advertisement with Brand Ambassador – Brand ambassador ‘Amithabh Bachchan, was aired in the televeision commercial and assured people about the quality of chocolate. This has developed trust among the people on the brand. Different types of Advertising The objective here is to strengthen their Brand identity and equity and regaining people’s trust and loyalty through deliver of proper branding message. Trade Advertising – Launching of retail monitoring program that monitored quality checks at 50,000 retail outlets and educated 190,000 wholesalers and retailers regarding store requirements. Informative Advertising – An ad regarding ‘Facts about Cadbury’ was published in 55 trade publications about remedial measures taken by the company. Consumer Advertising – A response cell through toll free number and an email id to let the consumers contact directly to the company was started. Posters and pamphlets reached the consumers through the retailers. Posters & Brochures – These were distributed to the customers motioned the facts regarding the product in the retail outlets. Important Tool I feel that the important tool that played a major role in mitigating the crisis are, the launch of the ‘Project Vishwas’ and the ‘Advertisement with Brand Ambassador’. This is because when the organization found that the fault is on the retailers; instead of blaming them they took the responsibility and assured the customers regarding the safety of the product. Also in country like India when a star like “Amithabh Bachchan’ tells something their interest level on that matter will be high. The recover from this crisis Cadbury used IMC in a well organized manner. The information being displayed through all the tools were consistent and transparent. The IMC was designed to cover all the categories of the target segment with the same message. 3. Marketing Initiative other than Communication The other important initiatives taken by the organization were packaging, training and transparency. Packaging - The change in their packaging design with an aluminium foil, heat-sealed for complete protection from all sides and further encased in a poly-flow pack supported them in regaining their Brand Identity. Training – Launch of the ‘Project Vishwas’ a three pronged programme that addressed the trade, consumers, employees and media. Transparency – The media coverage revealing the reason for the worm and the responsibility taken by the organization for the safety of the product and the launch of support centre through toll free number, etc reveals the corrective measures taken the organization. This is being clearly shown through their newly designed advertisement to recover from the crisis. The advertisement is shown below.