CADBURY Case Study

April 2, 2018 | Author: prt_01 | Category: Chocolate, Food Industry, Marketing, Foods, Retail


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CADBURY: ANSWER TO COGNITIVE DISSONANCE IN THE MINDS OF CONSUMERS: CADBURY¶S INTERNATIONAL Cadbury is a very old trusted name. It all started in Birmingham in England when John Cadbury started his family grocery shop with side business of cocoa and chocolate products in around 1824. His two sons, Richard and George, expanded their family business of cocoa and chocolate. Bournville, a town near Birmingham, was build by them as a part of expansion of their business. Cadbury plc is the industry's second-largest globally after the combined Mars-Wrigley. Cadbury was acquired by Kraft Foods in February 2010. In 1906 Cadbury Brothers introduced a new recipe for milk chocolate, marketed under the name Cadbury Dairy Milk, which has remained a mainstay and the flagship brand of its product line ever since. Cadbury¶s India Limited Ever since the Cadbury is in India in 1947, Cadbury chocolates have ruled the hearts of Indians with their fabulous taste. The company today employs nearly 2000 people across India. Its one of the oldest and strongest players in the Indian confectionary industry with an estimated 68 per cent value share and 62 per cent volume share of the total chocolate market. Cadbury And The Worm Controversy In 2003,the discovery of worms in some samples of Cadbury¶s Chocolate created one of the biggest controversies in India against a Multi National reputed that had been a benchmark for QUALITY for decades. 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. The controversy created an deep adverse impact on the company with their sales not only drastically dipping down, but at the same time allowing the competitors to establish their foothold. Clearly, the worm controversy took a toll on Cadbury's bottom-line. For the year ended December 2003, its net profit fell 37 per cent to Rs 45.6 crore (Rs 456 million) as compared with a 21 per cent increase in the previous year. In October 2003, just a month before Diwali [ Images ], customers in Mumbai [ Images ] 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. a plan involving distribution and retail channels to ensure the quality of its products. For the first time. The Vishwas programme was intended to build awareness among retailers on storage requirements for chocolates. "It was presumed that worms got into it at the storage level. The metallic poly-flow. Cadbury's advertising went off air for a month and a half after Diwali. at a time when it sees a festive spike of 15 per cent. Due to the controversy people became dissatisfied with the brand and here comes in the COGNITIVE DISSONANCE . CABDBURY¶S FIGHT-BACK 'Project Vishwas' ³Steps to ensure quality & regain the confidence´ However. that it has remained synonymous with chocolates and have remained committed to high quality and consumer satisfaction.But the FDA didn't buy that.As a result unhappy customer were not ready to buy it even though it was there favorite chocolate and seemed to ignore their chocolate cravings. came an ad campaign featuring Big B and a revamped poly-flow packaging.000 retail outlets in Maharashtra and replaced all questionable stocks with immediate effect. along with around 300 sales staff. was costlier by 10-15 per cent. FDA commisioner. And three months later. but Cadbury didn't hike the pack price and launched a new 'purity-sealed' packaging. the company launched a PR campaign for the trade. The company's team of quality control managers." That was followed by allegations and counter-allegations between Cadbury and FDA. either ways it's a manufacturing defect with unhygienic conditions or improper packaging. Uttam Khobragade told CNBC-TV18. checked over 50. Cadbury's revamped the packaging of Dairy Milk. but then what about the packing . following the controversy. Cadbury India Ltd unveiled 'Project Vishwas'. The Big µB¶ FACTOR .packaging was not proper or airtight. Cadbury¶s reiterated that all through the 55 years of leadership in India. By 2004. provide assistance in improving storage conditions and strengthen packaging of the company's range of products. In less than two weeks. by investing up to Rs 15 crore (Rs 150 million) on imported machinery. Following the controversy over infestation in its chocolates. The heat of negative publicity melted Cadbury's sales by 30 per cent. Isliye jab Cadbury walon ne mujhe kaha ki unki baat main aap tak pahunchaoon. Cadbury spent nearly Rs 40 crore for the new ad campaign. uss kaam ko karne se usse sab kuch mil sakta hai. In early January. man ki shaanti nahin mil sakti... THE AD: Addressing his audience. Bachchan says.. It helped restore consumers' faith in the quality of the product.The big factor that has pushed up CDM sales is the Amitabh Bachchan campaign. Cadbury appointed Amitabh Bachchan as its brand ambassador for a period of two years." Walking into the Cadbury factory.. to jawaab mein voh mujhe apni factory le gaye. ... he takes a look at their complete . Mr.. The company believed that the reputation he has built up over the last three decades complements their own. jis kaam mein manushya ki antar aatma uske saath na ho. to pachpan saalon se Cadbury khaane wala main bhi thoda sa hitchkichaya. "Mujhe aapse kuch kehna hai.Maine unse ek sawaal poocha.ki kya iske baad main chain ki neend so paoonga ya nahin. which was built over a period of 50 years. dependable and trustworthy).. "Aaj kal mein badi chain ki neend so raha hoon. it does have a positive influence over the brand. Familiarity (target market is aware of him. so if the celebrity is favored. Taking the millennium superstar Amitabh Bachchan.. Differentiation (he is seen to be one among the masses.. Finally giving his personal assurance and approval he says. Hence. He is different). likeable. Cadbury pulled off a coup by using Amitabh Bachchan¶s image to restore the faith of its customers.. namely. and yet he towers above them. as an endorser. finds him friendly.apne kade quality controls aur double protection.manufacturing process and continues. This is supported by the fact that in May 2004 Cadbury's value share went up to 71 per cent and consumer confidence in the product was back." Saying which he takes a bite of the chocolate..." So what is important is the way the customer perceives a brand and the celebrity." "Ab aapki favourite Cadbury Dairy Milk naye purity seal pack mein. this case is an example of how Celebrity endorsements can positively help to alter the effects of Cognitive Dissonance and reduce the post buying behavior of its consumers.packaging dikhayi. By launching a massive ad campaign they were able to tackle the dissonance of customers head on. "Aur mujhe apni international technology. . .. he fulfills all the FRED objectives. Relevance (which says that there should be a link between the endorser and the product as well as between the endorser and the audience). Esteem (masses see him as a credible name-face-voice).
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