Crisis Management Case Study Philippines

The crisis: Two Cadbury chocolate bars were found infested with worms in Mumbai, India. The Maharashtra FDA quickly seized the chocolate stock at Cadbury's closest manufacturing plant in Pune.

How Cadbury responded: The company was slow out of the gates. It released a statement claiming that the infestation was not possible at the manufacturing stage, while the FDA disagreed, prompting a tussle between the two. The media jumped on Cadbury, and the brand was under widespread assault.

Cadbury took its advertising off the air and launched an educational PR project that targeted retailers. It kept the media updated through press releases on the specific measures it was taking to correct its manufacturing and storage processes. The company also imported new machinery and changed the packaging of its Dairy Milk bars.

Four months later, Cadbury began advertising more aggressively. By then, the company's relationship with the media had improved greatly.

The result: Cadbury's sales in India plunged 30% in the wake of all the negative media coverage, and this was during a season when its sales usually increase by 15%. But over time, Cadbury began to recover.

Within eight weeks of the introduction of its new packaging and advertising campaign, sales had almost reached pre-crisis levels. The company announced eight months after the incident that its consumer confidence was back to to normal. Cadbury has maintained its position at the top of the Indian chocolate industry ever since.

But Cadbury suffered three years later when a salmonella outbreak wasn't handled nearly as well.

Sources: Rediff, Public Relations Consultants Association of India

In a digitally connected world where hearsay can easily obfuscate pertinent information about your company, one random event might suddenly send your business into a tailspin. M2.0 Communications provides in-depth, real-time assistance for businesses experiencing an unexpected crisis.

Crisis Situations

No matter how prepared your company is, there is very little you can do to predict a crisis. Unlike issues that can be anticipated based on trends, a crisis often appears unexpectedly, causing many businesses to panic and pursue actions that only worsen the situation. Crisis management helps your company create an effective response in the following and similar scenarios:

  • Restaurants encountering a viral photo that depicts their meals as unhygienic
  • Companies facing a major industrial accident that caused loss of limb or life
  • Government agencies tormented by a sensational scandal

Active Solutions

PR expertise combined with industry insight is critical in turning the tables successfully for the benefit of the company under siege. Our PR agency assists you in keeping things under control—even when executives must face the barrage of the press—while creating a measured, nuanced response that can assuage the media and the public.

M2.0 can work with you in addressing problem areas through:

  • Content development
  • Media relations
  • Media training

Proactive Team

M2.0 professionals specialize in a range of industries, practices, and situations. Our PR firm forms a team of carefully chosen experts to provide agile and responsive solutions to your specific situation.

  • Account management specialists keep you up-to-date with the rapidly changing situation while ensuring all your KPIs are met
  • Media relations experts help you build relationships with friendly media channels
  • Content professionals craft messages that can help address or redirect the crisis
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