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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
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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?
The Cadbury- O&M Success Story