Imagine you're the CEO of a renowned chocolate company. You are savoring your recent market achievements when you receive dismaying news – a complaint has been lodged against your brand about an insect found in one of your flagship products. Public sentiment is turning against you, and the brand reputation is at stake. This scenario is not imaginary but a situation faced by Cadbury Dairy Milk, calling for an effective crisis management strategy.
Crisis Management is a designed protocol to deal with a sudden or unexpected disruptive event that threatens an organization's operation, reputation, or stakeholders. It involves identifying potential threats and implementing a set of measures to minimize both the harm and recovery time.
In 2003, Cadbury faced a significant setback when two of their most popular products – Dairy Milk and Gems – were reported to have insects. The accusation came from the Indian state of Maharashtra, and the news quickly spread, impacting Cadbury's image and sales nationwide.
Cadbury adopted a series of steps to manage the crisis and rebuild their public image:
Investigation: Cadbury enlisted specialists to trace the issue and discovered the infestation likely happened at the retailers' end due to improper storage.
Addressing the Issue: Cadbury temporarily halted the supply of Dairy Milk chocolates in India to revamp their packaging process.
Packaging Innovation: Cadbury introduced the 'purity sealed’ packaging to ensure product safety, a first in the chocolate industry. This wrap kept the chocolate safe from different surrounding factors, including high temperatures and seepage.
Communicating Transparency: They launched a media campaign featuring Bollywood icon Amitabh Bachchan, emphasizing their upgraded storage and packaging protocols.
Education: Cadbury also collaborated with their retailers, providing education on proper storage processes to prevent similar situations from recurring.
Actions taken by Cadbury through the crisis management process are invaluable for any company facing a reputation threat:
The insect infestation was a significant crisis for Cadbury, who responded with a well-rounded crisis management approach, prioritizing consumer safety, transparency, and long-term commitment. This course allowed Cadbury to regain not only their market but also to further solidify their brand. Being prepared for such unexpected hiccups makes a significant difference in public perception and eventual recovery.