POST THE PAST PR DISASTERS FOR COCA COLA & CADBURY – WHICH THEY ENDED UP MANAGING WELL – THE CURRENT TIMES CHURN UP NEWER ISSUES, THE WATER ISSUE AT PALAKKAD BEING ONE OF THEM FOR COKE
Similar to Coca Cola’s earlier pesticide controversy, Cadbury’s worms’ issue will be a commonly cited case in consumer activism in India. The batch of Dairy Milk chocolates numbered 28F311 was special, one that Bharat Puri, then Director, Sales & Marketing, Cadbury India, would never forget all his life. Flashback to 2003 – from the four factories in India that churn out approximately 8,000 tonnes of chocolate every day, came those ill fated chocolates with batch number 28F311.
We are talking about the worm-infested batch that triggered a crisis for the company that had enjoyed a lengthy romance with Indian customers. Moreover, the timing of the controversy couldn’t have been worse as it was during Diwali (when Cadbury sells almost 1,000 tonnes of chocolates). The net profit for the year ended December 31 dipped by 37% to Rs.456 million compared to a 21% increase the previous year. John Bradley, author of ‘Cadbury’s Purple Reign’ and then head of marketing for Cadbury in Canada affirms, “The affected consumers were very upset, and we compensated them well, but their usual reaction was to shop for their chocolate elsewhere rather than organise Cadbury boycotts.”
Damage control wasn’t easy and the challenge in front of Cadbury was to be seen as a responsible and pro-active company to win back the lost sheen. And the company left no stone unturned. The company got a clean chit for its two plants from Maharashtra Food and Drug Administration and also started paying heed to logistical support. “My Indian colleagues persuaded the bean counters to not spare one rupee in the packaging solution,” adds Bradely. The team starting rolling out 360 degree advertisements by roping in Amitabh Bacchan because of the high level of trust he had with the Indian public. Bharat Puri even went personally to media offices across the country; meeting journalist and answering hostile queries with patiently explaining the issue. Apparently, this worked! Lesson learnt, honesty pays...
We are talking about the worm-infested batch that triggered a crisis for the company that had enjoyed a lengthy romance with Indian customers. Moreover, the timing of the controversy couldn’t have been worse as it was during Diwali (when Cadbury sells almost 1,000 tonnes of chocolates). The net profit for the year ended December 31 dipped by 37% to Rs.456 million compared to a 21% increase the previous year. John Bradley, author of ‘Cadbury’s Purple Reign’ and then head of marketing for Cadbury in Canada affirms, “The affected consumers were very upset, and we compensated them well, but their usual reaction was to shop for their chocolate elsewhere rather than organise Cadbury boycotts.”
Damage control wasn’t easy and the challenge in front of Cadbury was to be seen as a responsible and pro-active company to win back the lost sheen. And the company left no stone unturned. The company got a clean chit for its two plants from Maharashtra Food and Drug Administration and also started paying heed to logistical support. “My Indian colleagues persuaded the bean counters to not spare one rupee in the packaging solution,” adds Bradely. The team starting rolling out 360 degree advertisements by roping in Amitabh Bacchan because of the high level of trust he had with the Indian public. Bharat Puri even went personally to media offices across the country; meeting journalist and answering hostile queries with patiently explaining the issue. Apparently, this worked! Lesson learnt, honesty pays...
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
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IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
