Public Relation In Cadbury

Prepared By :
Priti Kulakarni (8122)
Vijay Kursija (8123)
Sandeep Laturkar (8124)
Public relation
• "management function which tabulates public
attitudes, defines the policies, procedures and
interests of an organization... followed by
executing a program of action to earn public
understanding and acceptance"
Edward Louis Bernays
Why PR?
• To Compete Effectively
• Better Coordination between stakeholders
• Higher Customer satisfaction
• Creating Brand Image
• Stimulating Demand
• Creating Interest
Tools of Public Relations
• Press Releases
• Company newsletters
• Press Conferences
• Sponsored Events
• Media Relations
• Media Tours
• Special Events
• Speaking Engagements
• Employee Relations
• Community Relations and Philanthropy
 PR Dept Functions

Keep
Keep the
the Public
Public
Serve
Serve AsAs the
the Aware
Aware of of
Official
Official Channel
Channel Organization’s
Organization’s
of
of Information
Information Activities
Activities

Coordinate
Coordinate
Coordinate
Coordinate Relationships
Relationships
With
With Other
Other PR
PR With
With
Departments
Departments Stakeholders
Stakeholders

Plan
Plan and
and Collect
Collect and
and
Administer
Administer Analyze
Analyze
Information
Information Stakeholder
Stakeholder
Programs
Programs Attitudes
Attitudes
 PR Activities

Brand
Brand Publicity
Publicity Media
Media Relations
Relations

Crisis
Crisis PR
PR Corporate
Corporate
Management
Management Activities
Activities Communications
Communications

Financial/
Financial/
Financial
Financial Employee
Employee
Investor
Investor
Relations
Relations Relations
Relations
Relations
Relations
Corporate Advertising
• Advertising that is more public relations than
sales promotion .
• Its objective is to build a firm's corporate
image, reputation and name-awareness among
the general public or within an industry.
Three Corporate Advertising Objectives

Establish
Establish Corporate
Corporate Identity
Identity

Objectives
Objectives Advocacy
Advocacy

Demonstrating
Demonstrating Social
Social
Responsibility
Responsibility
• Create a good citizen image through
2. Convey the organizations commitment to the concerned publics
as well as general publics
3. Boost both employee management relation & employee morale
enabling all members of the internal public to discover a new
vitality.
4. Raise money from the public which gives rise to demand for
resplendent images like financial reliability, leadership, strength &
competence.

5. On the marketing front it is easier & cheaper to sell product or

services with less marketing budget.
Crisis Management
• On October,2003 Cadbury's Dairy Milk Chocolate (Batch No 28F3I10703) had
worms in it
• Manufacturing Plant at Thane near Mumbai
• The state Food and Drug Administration has ordered to seizure of Cadbury's Dairy
Milk chocolates from all over Maharashtra
• Two of them were found in Mumbai
• Cadbury explain that bad storage by retailers and distributors that led to the
worms
• Cadbury sales 1000 tones (30%) were fall during Diwali festival
• FMCG sector plagued by slow, low single digit topline
and bottomline growth
• Cadbury was a sweet exception
• Net profit in 2003 fall 37% to Rs 45.6 crore (Rs 456
million) as compared to a 21% increase the previous year
Responding to Crisis
• The Maharashtra Food and Drug Administration had given a clean chit to
the company's two plants in the state
• Cadbury went into overdrive to tell consumers that improper storage of
what is essentially a perishable commodity might lead to worm infection
• Cadbury accepted their problem
• Cadbury improved the packaging and paid more attention to the way
Steps Taken
• After the controversary cadbury launched Project Vishwas, a retail education
programme under which 190,000 retailers were covered

• The programme entailed generating awareness and providing assistance in

improving storage quality

• The new double packaging like13 gm Rs 5 Cadbury Dairy Milk, had the bar
wrapped in aluminium foil and enclosed in a polyflow pack, which was sealed
on all sides

• Cadbury invest nearly 25 crores for improved packaging

• Cadbury given quality checking facilties to warehouses,retailers and

distributors
Gaining Back Trust
• With the help of its Public Relations Dept. and advertising agency O&M, it created a
campaign which aimed for both rational and emotional appeal
• One of the ads showed Bachchan visiting a Cadbury plant, inspecting the systems and
processes and finally consuming a bar of chocolate to be convinced that there's nothing
wrong with the brand
• Cadbury invest 40 crores for advertising
• Cadbury has 73% market share
• Between October 2003-January2004 Cadbury's value share melt from 73 per cent in
to 69.4 per cent
• Recovery began in May2004 and cadbury market share went to71%
THANK YOU