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Cadbury Worm Crisis
Table of contents
What the company did
Right?
02
What the crisis
was?
01
Learnings
04
What the company
could have done
better ?
03
What the crisis was?
01.
Date: October 2003
The Crisis: Cadbury Worm Contamination Incident
Background: Reports emerged claiming that a
consumer had found a worm in a Cadbury chocolate
bar.
Impact: Widespread consumer panic, negative
media coverage, and declining sales.
Resulted in: Loss of consumer trust, reputational
damage, and potential legal implications.
What the company did
Right?
02.
What the company did Right?
0.1 One of the key elements of Cadbury’s crisis
management strategy was consumer education
0.4 The company proactively underscored
Cadbury’s health conscious identity, and
invited people to come and see its
factories
0.3
Under Project Vishwas, it engaged with over
1,90,000 retailers that sold its products
0.2
New Packaging: At a cost of over ₹15 crores,
Cadbury imported machines that could heat seal
the foil and achieve high standards of improvised
packaging.
What the company could have
done better ?
03.
What the company could have done better ?
Proactive
Communication
Social Media
Engagement
Crisis
Preparedness
Supplier Audits
Learnings
04.
Learnings
Proactively addressed
much ahead of time
02
The consumers gave
Cadbury another
chance.
01
Total value chain should
be mapped, Reputation
Preservation
04
Product quality and
safety does not end
with the product
leaving its factory
03
A picture is worth a thousand words
Thank you

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Cadbury Worm Crisis

  • 2. Table of contents What the company did Right? 02 What the crisis was? 01 Learnings 04 What the company could have done better ? 03
  • 3. What the crisis was? 01.
  • 4. Date: October 2003 The Crisis: Cadbury Worm Contamination Incident Background: Reports emerged claiming that a consumer had found a worm in a Cadbury chocolate bar. Impact: Widespread consumer panic, negative media coverage, and declining sales. Resulted in: Loss of consumer trust, reputational damage, and potential legal implications.
  • 5. What the company did Right? 02.
  • 6. What the company did Right? 0.1 One of the key elements of Cadbury’s crisis management strategy was consumer education 0.4 The company proactively underscored Cadbury’s health conscious identity, and invited people to come and see its factories 0.3 Under Project Vishwas, it engaged with over 1,90,000 retailers that sold its products 0.2 New Packaging: At a cost of over ₹15 crores, Cadbury imported machines that could heat seal the foil and achieve high standards of improvised packaging.
  • 7. What the company could have done better ? 03.
  • 8. What the company could have done better ? Proactive Communication Social Media Engagement Crisis Preparedness Supplier Audits
  • 10. Learnings Proactively addressed much ahead of time 02 The consumers gave Cadbury another chance. 01 Total value chain should be mapped, Reputation Preservation 04 Product quality and safety does not end with the product leaving its factory 03
  • 11. A picture is worth a thousand words