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%.