CADBURY: ANSWER TO COGNITIVE DISSONANCE IN THE MINDS OF CONSUMERS:

CADBURY’S INTERNATIONAL
Cadbury is a very old trusted name. It all started in Birmingham in England when John
Cadbury started his family grocery shop with side business of cocoa and chocolate products in
around 1824. His two sons, Richard and George, expanded their family business of cocoa and
chocolate. Bournville, a town near Birmingham, was build by them as a part of expansion of
their business.
Cadbury plc is the industry's second-largest globally after the combined Mars-Wrigley. Cadbury was
acquired by Kraft Foods in February 2010.
In 1906 Cadbury Brothers introduced a new recipe for milk chocolate, marketed under the name
Cadbury Dairy Milk, which has remained a mainstay and the flagship brand of its product line ever since.

Cadbury’s India Limited

Ever since the Cadbury is in India in 1947, Cadbury chocolates have ruled the hearts of
Indians with their fabulous taste. The company today employs nearly 2000 people across India.
Its one of the oldest and strongest players in the Indian confectionary industry with an
estimated 68 per cent value share and 62 per cent volume share of the total chocolate market.

Cadbury And The Worm Controversy

In 2003,the discovery of worms in some samples of Cadbury’s Chocolate created one of the
biggest controversies in India against a Multi National reputed that had been a
benchmark for QUALITY for decades. Cadbury's found itself in the eye of a storm, when a few
instances of worms in its Dairy Milk bars were reported in Maharashtra.
The controversy created an deep adverse impact on the company with their sales not only
drastically dipping down, but at the same time allowing the competitors to establish their
foothold.
Clearly, the worm controversy took a toll on Cadbury's bottom-line. For the year ended
December 2003, its net profit fell 37 per cent to Rs 45.6 crore (Rs 456 million) as compared
with a 21 per cent increase in the previous year.
In October 2003, just a month before Diwali [ Images ], customers in Mumbai [ Images ] complained
about finding worms in Cadbury Dairy Milk chocolates. Quick to respond, the Maharashtra Food and
Drug Administration seized the chocolate stocks manufactured at Cadbury's Pune plant.

In defense, Cadbury issued a statement that the infestation was not possible at the manufacturing stage
and poor storage at the retailers was the most likely cause of the reported case of worms.
But the FDA didn't buy that. FDA commisioner, Uttam Khobragade told CNBC-TV18, "It was presumed
that worms got into it at the storage level, but then what about the packing - packaging was not proper
or airtight, either ways it's a manufacturing defect with unhygienic conditions or improper packaging."

That was followed by allegations and counter-allegations between Cadbury and FDA. The heat of
negative publicity melted Cadbury's sales by 30 per cent, at a time when it sees a festive spike of 15 per
cent. For the first time, Cadbury's advertising went off air for a month and a half after Diwali, following
the controversy.
CABDBURY’S FIGHT-BACK
'Project Vishwas'
“Steps to ensure quality & regain the confidence”
However, Cadbury’s reiterated that all through the 55 years of leadership in India, that it has
remained synonymous with chocolates and have remained committed to high quality and
consumer
satisfaction.
In less than two weeks, the company launched a PR campaign for the trade. And three months later,
came an ad campaign featuring Big B and a revamped poly-flow packaging.
Following the controversy over infestation in its chocolates, Cadbury India Ltd unveiled
'Project Vishwas', a plan involving distribution and retail channels to ensure the quality of its
products.
The company's team of quality control managers, along with around 300 sales staff, checked
over 50,000 retail outlets in Maharashtra and replaced all questionable stocks with immediate
effect.
The Vishwas programme was intended to build awareness among retailers on storage
requirements for chocolates, provide assistance in improving storage conditions and strengthen
packaging of the company's range of products.
By 2004, by investing up to Rs 15 crore (Rs 150 million) on imported machinery, Cadbury's revamped the
packaging of Dairy Milk. The metallic poly-flow, was costlier by 10-15 per cent, but Cadbury didn't hike
the pack price and launched a new 'purity-sealed' packaging.

Due to the controversy people became dissatisfied with the brand and here comes in the “COGNITIVE
DISSONANCE”.As a result unhappy customer were not ready to buy it even though it was there favorite
chocolate and seemed to ignore their chocolate cravings.

The Big ‘B’ FACTOR

The big factor that has pushed up CDM sales is the Amitabh Bachchan campaign. It helped
restore consumers' faith in the quality of the product. In early January, Cadbury appointed
Amitabh Bachchan as its brand ambassador for a period of two years.
The company believed that the reputation he has built up over the last three decades
complements their own, which was built over a period of 50 years.
Cadbury spent nearly Rs 40 crore for the new ad campaign.

THE AD:
Addressing his audience, Mr. Bachchan says, "Mujhe aapse kuch kehna hai, jis kaam
mein manushya ki antar aatma uske saath na ho, uss kaam ko karne se usse sab kuch
mil sakta hai... man ki shaanti nahin mil sakti. Isliye jab Cadbury walon ne mujhe kaha
ki unki baat main aap tak pahunchaoon, to pachpan saalon se Cadbury khaane wala
main bhi thoda sa hitchkichaya.... ...Maine unse ek sawaal poocha,ki kya iske baad main
chain ki neend so paoonga ya nahin, to jawaab mein voh mujhe apni factory le gaye."
Walking into the Cadbury factory,
he takes a look at their complete
manufacturing process and continues,
"Aur mujhe apni international
technology....apne kade quality controls
aur double protection... ...packaging
dikhayi."
Saying which he takes a bite of the
chocolate.
Finally giving his personal assurance and
approval he says,
"Aaj kal mein badi
chain ki neend so raha hoon."
"Ab aapki favourite Cadbury Dairy Milk
naye purity seal pack mein."

So what is important is the way the customer perceives a brand and

the celebrity, so if the celebrity is favored, it does have a positive
influence over the brand. Taking the millennium superstar Amitabh
Bachchan, as an endorser, he fulfills all the FRED objectives, namely,
Familiarity (target market is aware of him, finds him friendly, likeable,
dependable and trustworthy); Relevance (which says that there should
be a link between the endorser and the product as well as between the
endorser and the audience); Esteem (masses see him as a credible
name-face-voice); Differentiation (he is seen to be one among the
masses, and yet he towers above them. He is different).
Cadbury pulled off a coup by using Amitabh Bachchan’s image to
restore the faith of its customers. By launching a massive ad campaign
they were able to tackle the dissonance of customers head on. This is
supported by the fact that in May 2004 Cadbury's value share went up to 71 per
cent and consumer confidence in the product was back.
Hence, this case is an example of how Celebrity endorsements can
positively help to alter the effects of Cognitive Dissonance and reduce
the post buying behavior of its consumers.