Cadbury India Case

1592 Words 7 Pages
Cadbury began its operations in India in 1948, where it commands a 70% share in the Indian chocolate market, and is a significant player in the chocolate category and was the only multinational to be identified as one of India’s Best Managed Companies by Business Today and Business World ranked Cadbury among the Best Workplaces in India. However, on 3rd October 2003, just before India was getting ready for one of their largest festival, “Diwali”, Cadbury’s reputation was blemished because of an unexpected event– a worm infestation problem in its chocolates. Cadbury only found out about the incident after a CNBC correspondent, contacted Cadbury, asking for clarification and statement about worm infestation complaints that had been lodged with …show more content…
However, just when Cadbury thought that the crisis was over, suddenly, new cases of worm infestation were reported from the city of Nagpur in Maharashtra. After that incident, the FDA Minister had changed his stance, saying that Cadbury should not only be accountable for manufacturing, but also for the storage of its products at retail level as well. FDA blamed Cadbury that defective packaging was the reason for which worms made it into the Cadbury chocolates. Thus, manufacturing was …show more content…
This was done to reduce dependency on proper storage conditions as much as possible. A“purity-sealed” packaging was introduced, consisting of an inner layer of foil with an outer metallic “flow wrap” for small packs of chocolate; and a reinforced heat-sealed polyfoil with an outer “band wrap” for the large packs. A purity-sealed logo was created and displayed on all wrappers and advertisements. In relation to crisis communication, Cadbury held media conferences in Mumbai to launch the new packaging, followed by two more in Pune and Nagpur in Maharashtra and Cochin in Kerala. These conferences gave a chance to media persons to compare the old with new packs see and experience for themselves the significant changes in packaging first hand. A video news release with packaging and factory shots were also to television

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