2. Crisis- A critical or decisive point at which an
Organization’s response to an issue,accident or
emergency threatens the reputation and or future
standing of the organization.
Goal- Prevent issues,accidents and emergencies from
becoming crises.
3. Cadbury Crisis:Initial Story
On October 2003, just a month before Diwali, the
Food and Drug Administration Commissioner
received complaints about infestation in two bars of
Cadbury Dairy Milk, Cadbury India’s flagship brand
with over 70% market share. He ordered an enquiry
and went directly to the media with a statement.
Over the following 3-week period, resultant adverse
media coverage touched close to 1000 clips in print
and 120 on TV news channels. In India, where
Cadbury is synonymous with chocolate, the
company’s reputation and credibility was under
intense scrutiny.
4. Challenges
Sales Volume dropped down drastically
Retailer stocking & display dropped
Employee morale(sales team) was shaken
Restore confidence in the key stakeholders
Build back credibility via the same channels(Media)
Incident came close on the heels of cola
controversy
5. Objectives
Form a team to acknowledge each question
Convey: Perception is reality we don’t like it either,
so we will change it.
Regain the reputation
6. Strategies
Admitting infestation is a storage link problem
It is safe to eat Cadbury chocolates
Consumers must exercise an extra care
Retail monitoring & education program undertaken
Significant packaging change to reduce
dependency
on storage conditions as much as possible
Amitabh Bachchan was signed as Brand
Ambassador
7. Analysis
Three Cs of Success
Control
-Took Appropriate action & explained it
Concern
-Demonstrated concern, compassion
Credibility
-Knew the facts
-Became first with the news
-Built trust
Role of PR: Modification required