Dairy Dairy Company: Case Study: Crisis Management Of Cadbury

In March of 2012 Steve Parkland was hired as the new president at Charles Chocolates. He was immediately faced with numerous decisions about the future of the company. The board of directors had tasked Parkland with doubling or tripling the size of the company over the next decade, but the board and the senior management team had different opinions about the strategy that would accomplish this goal. The main issues that Parkland faced were how to increase the company’s operations while maintaining the traditional culture and support of the board.

Its value is that they will be caring and considerate of their employees, customers, suppliers, shareholders, the community and the environment by showing respect to each other and valuing diversity, working together to achieve a safe, friendly and positive working environment, setting clear expectations, recognising contribution and developing their people, leading by example and taking responsibility for their actions, communicating clearly, inclusively, honestly and in a timely manner, having pride in their product and passion for the business, its heritage and its future and contributing to the community through corporate benevolence and environmentally sustainable practices (Haigh's Chocolates).

While Europe and the United States account for most chocolate consumption, the confection is growing in popularity in Asia and market forecasts are optimistic about the prospects in China and India (Nieburg, 2013, para 9). According to the CNN Freedom Project, the chocolate industry rakes in $83 billion a year, surpassing the Gross Domestic Product of over a hundred nations (“Who consumes the most chocolate,” 2012, para 3).

The company does not have a sure mission and is engaged in the wrong type of marketing philosophy. The company need develop a mission.

products (Morin, 1990). In 1979, 6.9 million kilolitres of milk were sold in Canada. Thirty-

The film mentioned that Group Danone bought Stonyfiels, Colgate bought Tom’s of main etc.... Big companies can do anything that give them more money and less costs; and buying their new youth concurrent is undoubtly profitable. In one hand their getting ride of a new concurrent in the market. In the other hand they are ….. of their part in market, their consumers and even their workers and their new innovations. Companies like Danone,Kellog, and Clorox wants to attract the kind of consumer that is able to pay more money to buy healthier and cleaner products. I think that is to still putting the name of the small companies in products made by new companies. In addition I think if the consumer knows about that, they will probably change to other brand because big companies are not trustable in consumers’ minds. The consumer knows very well that big companies will not think twice about cheating in the product quality to make more profit.

Cadbury is a British multinational confectionery company wholly owned by Mondelez International since 2010. It is the second-largest confectionery brand in the world after Wrigley's. Cadbury is internationally headquartered in Uxbridge, West London, and operates in more than 50 countries worldwide. It is famous for its Dairy Milk chocolate, the Creme Egg and Roses selection box, and many other confectionery products. Cadbury was established in Birmingham, England in 1824, by John Cadbury who sold tea, coffee and drinking chocolate. Cadbury developed the business with his brother Benjamin, followed by his sons Richard and George. George developed the Bournville estate, a model village designed to give the company's workers improved living conditions. Dairy Milk chocolate, introduced in 1905, used a higher proportion of milk within the recipe compared with rival products. By 1914, the chocolate was the company's best-selling product. Cadbury, alongside Rowntree's and Fry, were the big three British confectionery manufacturers throughout much of the nineteenth and twentieth centuries.

This push strategy came at a devastating cost. Many customers lost faith in the company. In 2015 the company was ranked as number 7 “the world’s 100 Most Respected Companies” (3: page 4). In 2016 the company had dropped to number 60 (32). Such a huge drop on the list confirms customers had lost faith in the company. In order to combat the negative press and the decline in consumer opinion the company’s public relations department released an announcement on March 1, 2017 apologizing for the corrupt sales practices and discussed the actions they have taken to correct the mistake and insure that it will not happen again (30). By releasing the article, “Highlights of Board and Company Actions in Response to Sales Practices”, the company hopes to restore customer’s faith in the company. However, only time will tell if they company will be able to regain the trust customer once had in the

Cadbury uses market penetration strategies to keep people aware of their brand. They do this all in their current market. They do this by selling more to existing customers, like selling their products in multi-packs. This means that the customers can buy their products in larger quantities and it will encourage them to do so as they can have more of the product instead of buying it individually. They also use product development strategies such as selling new products in an existing market.

National Farm And Garden, INC., Marketing problem Losing the leading position as a number one supplier of farming equipment, National Farm and Garden, Inc. or NFG is currently facing problem with the company reputation and trust. The company had launched design defect products (Turbo Tiller), which caused consumer’s injury and ended up in a scandal. The causes of design defect came from various reasons such as, the declining sales, which led to the planning of unrealistic product launch and schedule, Organization ethical issues, and lack of communication within the organization. (See appendix 1 for summary) Immediate Action/ Short term plan First of all, company have to think about the company image from the ruined situation happening to

One thing that I noticed in my reading of the case is the lack of advertisement. Even though the company has a great reputation, they need to advertise in papers and other media channels. This will let future customers

Moreover, consumers and employees are also demanding chocolate companies to follow good corporate social responsibility practices in addressing the environmental concerns in terms of how to design its packaging, procurement and operational decisions. Human rights concerns are also high in terms of consumer expectations of chocolate companies with respect of forced child labour in West Africa. All of these driving forces - societal concerns, attitudes and change in lifestyles, are strong enough to shape up the competition and impose the constraint on chocolate industry profitability and competitive survival.

Also, although they should have hired external crisis management team pretty early, but still hiring them is a great move on the part of Nestle. They should co-work with the crisis team to develop a fool proof strategy to recover the brand image of Maggi in the minds of the Indian consumers so that as soon as the test results are out and ban on maggi circulation is completely removed, consumers should be as willing to buy maggi, as they were before the incident happened.

Industry Analysis: Cadbury Schweppes (CS) is comprised of a global confectionery and beverage company. For the purpose of this case we will maintain our focus on the confectionery business and the assessment of adding to their sugar confectionery portfolio. CS is number three in the beverage business but see the opportunity to become the largest confectionery in the world. The categories are chocolates, sugar and chewing gum. At this time Adams is the number two sized in the gum business. This industry operates on “bigger is better in confectionery”. Their strategic discussions and ambitions appear to stay true, in mentality, to this mantra. This mantra could be potentially dangerous to the business. CS had a presence in over 70

Company had to face problems with it past image which was displeasing in the minds of its customers.