COMPARATIVE ANALYSIS

ON PR ACTIVITIES BY
CADBURY & COCA-
COLA .
Objectives:
1>To analysis on the crises faced
by Cadbury and Coca-Cola .
2>To do a comparative analysis on
the PR activity by Cadbury and
Coca-Cola .
INTRODUCTION

Cadbury is the largest confectionary

company in the world and has its presence in
Beverages in Australia and Americas.
Cadbury's employs about 60,000 people in
200 countries - Cadbury is the no. 1
confectionary company in the world -
Cadbury is the no. 2 gum company - Cadbury
is the no. 3 beverages company .

In India, Cadbury began its operations in

1948 by importing chocolates. After 60
years of existence, it today has five
company-owned manufacturing facilities
their core purpose "creating brands people
love"
WORMS FOUND IN CADBURY :
The worms in the chocolate bars
controversy has hit Cadbury India where it
hurts most in its sales. The company today
faces tough times ahead as the business
environment for its chocolates becomes
increasingly negative with rising raw material
prices and low consumer sentiments, post the
worms controversy in October this year.

While the sales of chocolates fell by 3 to 4

% last month and are predicted to be down
by 10 per cent in November by the trade.

The largest impact on sales has been in

Maharashtra, and specifically in Mumbai,
which is where the whole controversy arose
as worms were found in Cadbury chocolates
in allegedly eight outlets across the state.
Controversy blew up at the festival season
when the chocolates sales are at their peak,
Initially the company blamed retailers for
not storing the products properly but is now
engaged in putting in place a regular
monitoring and checking system of the
storage of the chocolates.

It has initiated Project Vishwas, a three-

step programme involving wholesalers and
retailers in which the company partners with
the traders on a war-footing to build
awareness about storage requirements for
Cadbury products.

In Maharashtra where the maximum damage

has been done the company has involved a
team of quality-control managers along with
300 salespeople to carry out checks of over
50,000 retail outlets which retail Cadbury
products. The products in upgraded
packaging are expected to hit retail stores
early next year.

Cadbury chocolates are now available at any

paan and cigarette shop in every nook and
cranny of India. From 400,000 outlets about
four years ago the company now has over
650,000 retail outlets spread across the
country.

There are no government norms for

chocolates storage with the result that
companies.

As soon as salmonella was found, Cadbury

should have recalled the product, held its
hands up and apologised. This open and
honest approach might even have enhanced
the chocolate manufacturer’s reputation. But
Cadbury did not do so .
PR DONE BY CADBURY:

AMITABH BACHCHAN
was announced as the
new brand ambassador
for Cadbury .He would
promote and endorse
Cadbury chocolates.

He was to play a key role

in brand and product
communication on
television, in print and
outdoor media.

Commenting on Amitabh Bachchan as brand

ambassador for Cadbury chocolates,
 Puri said, "There is a perfect fit between
Amitabh Bachchan and Cadbury chocolates -
their timelessness, and the love and trust
they both share with the people across
India, makes this an ideal partnership.
Moreover, Mr Bachchan has a universal
appeal that extends to everyone from 6 to
60, just as our chocolates do.

This was one of the PR technique adopted by

Cadbury in order to bring back its lost
reputation and trust in the minds of the
consumers.

Next two weeks after the incident of worm

infection was detected ,Cadbury announced
significant steps to restore the lost trusts
of the consumers .They started with a
project called project VISHWAS.

The consumers were nationally reached

through a press AD “facts of Cadbury”,
released in 11 languages. It represented all
the details on manufacturing, operations,
storage etc of Cadbury .

This was public statement of corporate issue.

Later on they made posters ,leaflets to
share their point of view with the customers.

There was also a response cell with a toll

free number and an e-mail ID were given to
send the views and quieres of the consumers.

There were press conferences conducted in

places like Kerala, Pune and Nagpur in
Maharashtra the changes in the packing were
shown .

The advertisement of the new pack was done

through

Testimonial advertisement on TV called

“sincerity”, this addressed the problem head-
on, and the superstar talking straight into
the camera about how before doing the AD
he convinced himself about the quality of
the Cadbury chocolates by visiting the
factory .Consumers respected about not
skirting the issue but acknowledging it and
giving a solution to this problem .

Cadbury was successful in making people

aware that improper storage conditions by
the retailers and dealers have led to this
problem.

This was PR using TV commercials to get

key messages across .

HISTORY :
The first Coca-Cola recipe was invented
in a drugstore in Columbus, Georgia by
John Pemberton originally as a Coca-Cola
wine called Pemberton’s French wine cola
in 1885 Pemberton ran the first
advertisement for the beverage on May
29 of the same year in the Atlanta
journal.

On April 23, 1985, Coca-Cola, amid much

publicity, attempted to change the
formula of the drink with "New Coke".
The company gave in to protests and
returned to a variation of the old
formula, with high-fructose replacing
cane sugar, under the name Coca-Cola
Classic on July 10, 1985.
21st Century:
The for the year 2002 was regarded as
the company having highest brand
value. The brand value was measured
at 69,376,000,000 in terms of $.

Coca –cola in INDIA:

This company got the approval from the
government of India in July 1996.

The company has stepped forward for

reaching 300 millions soft-drink consumers
through 700,000 retail outlets in India.

Coca-Cola has given direct employment to

about 7000 people. Over the year the
company has invested around US $827
millions in India .The company has also taken
different incentives in India for social
sector development in the recent years
sponsorship programme.

Crises faced by Coca-cola :

The main crises that the company had to
face was the pesticide traces discovered in
the carbonated drinks.
On Aug. 9, India's southwestern state of
Kerala, home to about 30 million people,
banned the Indian subsidiaries of both
companies from making or selling their
beverages ,in the month of August their was
a national ban on this company and many
other poitical leaders came forward in
protest towards this company.
And there was another crises that the area
near these Coca-Cola plants the atmosphere
and water have got polluted .
The Belgian crisis broke out on June 08,
1999. Thirty-three children aged between 11
and 13 of St. Mary School in Bornem,
Brussels, complained of headaches,
discomfort, dizziness and nausea. A few
vomited and were sent home. The school
management then made efforts to find out
why so many students had fallen ill.

The enquiry revealed that students had

drunk Coke shortly before they began
complaining of their illness. The Coke had
arrived at the school packed in cases of 20-
centiliter glass bottles
There were special experts for this
purposes, they conducted tests and the
tests showed that there were no presence of
any toxic substances. But after this
incidence there were loss in their sales.
They also had to face criticism over obesity.
PR DONE BY COCA-COLA:
The zero movement is an astroturf campaign
by Coke to sell a new sugar-free drink called
"coca cola zero" in Australia. The campaign
has involved viral marketing strategies,
including buying billboards and the backs of
magazines for ads apparently by "The Zero
Movement", as well as putting up posters in
public places.

Barclay T Resler Vice President Government

Relations for Coca-Cola, have raised at least
$200,000 for Bush in the 2004 presidential
election.

Coca-Cola political action committees gave

$415,150 to federal candidates in the 05/06
election cycle - 37% to democrates 61% to
republicans , and 2% to third party
candidates.
This includes in one of its PR activity.

The company spent $1,060,000 for lobbying

in 2006.

They bring about total welfare of its

employees by rewarding them incentives
according to the work done by them.

They also brought about various news release

relating to the issues it is facing or on
undertaking of any social responsibilities.

Coca-Cola are constantly analysing their

audience and segmenting it in order to come
up with the best mix of products to cater
for their tastes and make the maximum
amount of cash in the process.

There was a new news release on the new

technology adopted ,this new technology was
adopted to prevent or out short the
emmisions by 99%.