cadburry case study
View Point:
“While we're talking about a few bars of the 30 million we sell every month - we believe that to be a responsible company, consumers need to have complete faith in products. So even if it calls for substantial investment and change, one must not let the consumers’ confidence erode.”
Bharat Puri, Managing Director Cadbury India
Time Context: October 2003 (Maharashtra, India)
Short Historical Background: In 1824, John Cadbury began selling tea, coffee, and drinking chocolate, which he produced himself, at Bull Street in Birmingham, England. He later moved into the production of a variety of cocoa and drinking chocolates, made in a factory in Bridge Street. John Cadbury became a partner with his brother Benjamin and the company they formed was called ‘Cadbury Brothers of Birmingham‘. Cadbury started the process in the back room of his shop with cocoa which he hand ground with a mortar and pestle, which has progressed in the company it is today with the belief that “doing good is good for business”. Cadburys has three kinds of confectionary, gum, candy and more famously chocolate. The company now operates in over 60 countries with a workforce of over 50,000 people. Everyday millions of people enjoy the Cadburys brand. Cadburys has established itself in all sectors of its primary market – chocolate.
Statement of the Problem: How will the Cadbury gain back its customers after getting involved into reports that live worms were found in its Dairy Milk chocolate bars in Maharashtra, India?
Area of Consideration: (SWOT Analysis)
Strengths:
Cadbury is the largest global confectionery supplier, with 9.9% of global market share.
High financial strength (Sales turnover 1997, £7971.4 million and 9.4%)
Strong manufacturing competence, established brand name and leader in innovation.
Advantage that it is totally focused on chocolate, candy, chewing gum, unique understanding of consumer in these segments.
Successfully grown through its acquisition
“While we're talking about a few bars of the 30 million we sell every month - we believe that to be a responsible company, consumers need to have complete faith in products. So even if it calls for substantial investment and change, one must not let the consumers’ confidence erode.”
Bharat Puri, Managing Director Cadbury India
Time Context: October 2003 (Maharashtra, India)
Short Historical Background: In 1824, John Cadbury began selling tea, coffee, and drinking chocolate, which he produced himself, at Bull Street in Birmingham, England. He later moved into the production of a variety of cocoa and drinking chocolates, made in a factory in Bridge Street. John Cadbury became a partner with his brother Benjamin and the company they formed was called ‘Cadbury Brothers of Birmingham‘. Cadbury started the process in the back room of his shop with cocoa which he hand ground with a mortar and pestle, which has progressed in the company it is today with the belief that “doing good is good for business”. Cadburys has three kinds of confectionary, gum, candy and more famously chocolate. The company now operates in over 60 countries with a workforce of over 50,000 people. Everyday millions of people enjoy the Cadburys brand. Cadburys has established itself in all sectors of its primary market – chocolate.
Statement of the Problem: How will the Cadbury gain back its customers after getting involved into reports that live worms were found in its Dairy Milk chocolate bars in Maharashtra, India?
Area of Consideration: (SWOT Analysis)
Strengths:
Cadbury is the largest global confectionery supplier, with 9.9% of global market share.
High financial strength (Sales turnover 1997, £7971.4 million and 9.4%)
Strong manufacturing competence, established brand name and leader in innovation.
Advantage that it is totally focused on chocolate, candy, chewing gum, unique understanding of consumer in these segments.
Successfully grown through its acquisition