final cadbury

Presented by

Muhammad HassanAlishba Khatri

Maria Iqbal Junaid Muneer

Tilal Hasan

GLOBAL OVERVIEW OF THE COMPANY

Global Introduction

• Cadbury Schweppes is the largest confectionery company in the world, employing more than 70,000 employees

• Nearly 200 years old and operates in over 60 countries

• Around 35,000 direct and indirect suppliers worldwide• Makes and sells three kinds of confectionery: chocolate,

gum and candy.• Kraft Foods have recently acquired Cadbury in worth about

$19 billion.

• Global Reach– Approximately $50 billion in revenues

– 25%+ of global revenue from emerging markets

– #1 in global confectionery

– #1 in global biscuits

– More than 50% of global revenue from snacks

and confectionery

• Brand Portfolio– 11 brands with more than $1 billion in revenue

– 70+ brands with more than $100 million in revenue

– 40+ brands over 100 years old – 80% revenue from #1 share positions

Global Introduction

1865 – Cadbury Cocoa Essence1875 – Cadbury Easter Eggs1897 – Cadbury Milk Chocolate1905 – Cadbury Dairy Milk1908 – Cadbury Bournville Chocolate1915 – Cadbury Milk Tray1920 – Cadbury Flake1923 – Cadbury Crème Eggs1929 – Cadbury Crunchie1938 – Cadbury Roses1948 – Cadbury Fudge1968 – Cadbury Picnic1960 – Cadbury Buttons1970 – Cadbury Curly Wurly1983 – Cadbury Wispa1985 – Cadbury Boost1987 – Cadbury Twirl1992 – Cadbury Timeout1996 – Cadbury Fuse2001 – Cadbury Brunchbar, Dream & SnowFlake

Product Timeline

COMPANY’S PRESCENCE IN PAKISTAN

• Cadbury’s head office is in Karachi

• Cadbury’s is the only foreign confectionary brand that

has production facility in Pakistan at HUB

• Cadbury’s enjoys remarkable confectionary brand

presence in Pakistan at all types of potential outlets

• The Company has started Door-to-Door Selling (DDS)

through branded tricycles• Distribution in all major cities of Pakistan.

Presence of Cadbury in Pakistan

S.No. Brands Retail Price(Rs.) / Bar1 US$=84PKR

1 Single Rs.1/-

2 Rs.5/- Rs.10/-Rs.25/- and above

3 Rs.5/-

4 Rs.10/-

5 Rs.205/-

Brands & Pricing

CASE OVERVIEW

• UK best known companies

• Formed in 1969

• Public limited company

• Awarded in Dec 2004 as “Britain’s Most Admired Company

Best loved Brands

Importance of Stake holders

• Increased employees moral results in raised productivity and improved efficiency

• Positioned organization as a good employer

• Increased product quality leads increase sales

• Highly positioned product

• Cooperative business partners for stake holders

Stake holder grouping

Interest in the company How to engage Stakeholders

Shareowners

•Sustainable, healthy dividend payments•Rising share price

•Attend Annual General meeting to ask questions•Discuss company’s performance •Vote on certain issues

Consumers

•Products providing quality, taste and value•Require favorite brands as well as exciting new products

•Daily basis consumer enquiries •Market research•Surveys •Market research panels

Customers •Good partnership which meets their own needs for appealing products generates increased sales and profits for their business

•Ongoing discussions • Partnership

Suppliers & business partners

•Providing business on terms which makes them successful.

• Appreciates supplier inputs•Partnership approach to satisfy their needs •Ensuring requirements for quality materials operating in a socially responsible •Standards for potential suppliers

Employees

•Offering good terms conditions of employment• Healthy and safe working environment•Opportunities for personal and professional development

•Encourages direct, two-way involvement and communication Individual and team meetings Surveys•Internal newsletters, group website and many local websites

Society

•Assisting and supporting communities•Respecting the environment•Trading ethically•Respecting human rights

•Regards itself as a citizen in the operating countries•Regular dialogue with national governments and international bodies

COMPANY’S CURRENT SITUATION W.R.T CASE TOPIC

• On February 2 2010, Cadbury became part of Kraft Foods

• World 2nd largest food company

• Code of conduct includes a set of employee policies

• Suppliers have their own standards of conduct align with

KF

•Creating Sustainable Difference in World

• Making a Delicious Difference in Communities

• Listening to Consumers; Creating More Better-for-You Choices

EXPLAIN THE ROLE OF PUBLIC RELATION IN ENGAGING STAKE HOLDERS

Role of Public Relations in Engaging Stakeholders

• Involve stake holders in the planning process• Assemble a stakeholders advisory board• Hold open forums or open houses• Giving presentations at public meetings• Performing community surveys• Invite stakeholders to contact you

• Developing Stake holders accountability board

DISCUSS NEGATIVE PUBLICITY AND ITS EFFECTS ON STAKEHOLDERS. GIVE FEW

EXAMPLES.

Role of Public Relations in Engaging Stakeholders

• Negative Publicity is the unfavorable publicity that a firm may incur due to a particular reason

• It may lead to potentially disastrous consequences.

• It results in the firm’s reputation among its customers and competitors being badly tarnished.

Causes of Negative Publicity

• Disillusioned (ex) employee

• Angry customers

• Misleading interpretations of blogs/forum posts/interview excerpts

• Mischief mongers spreading unsubstantiated rumors.

Effects of Negative Publicity on Stake Holders

• Business does not flourish under negative publicity

• Firms may have to call back all their products

• Shares of the firm may take a frightening dip

• All of the above may even lead to the firm having to shell out millions as compensation, and the venture might even go bust

Examples of Negative Publicity

• Seizure of Cadbury's Dairy Milk chocolates from all over Maharashtra after worms were found in two of them in Mumbai.

• Seizure of the company's stocks • Cadbury India's sales fell following

the discovery. • Since the festival season was on it

resulted in further decrease of sales to 300 tonnes which was previously 1000tonnes

Examples of Negative Publicity

• The controversy of Lays Chips in Pakistan resulted in the decrease of sales of Lays chips

• The company then have to contact different Ullemas who gave fatwa related to Halal and Haram issue

Examples of Negative Publicity

• Norway's Telenor unexpected involvement in the ongoing controversy over the "Islamic Cartoons“.

• Their Pakistan subsidiary was attacked in protest over the publication of the cartoons.

• The company was forced to close down its offices in Karachi and significantly step up security at their Islamabad head office.

• The company also withdrew advertising hoardings to prevent them being damaged.

DISCUSS CADBURY ATTEMPT’S TO BALANCE DIFFERENT STAKEHOLDER

VIEWS

Balancing Stakeholders

• Shareowners

• Ultimate interest for a shareholder is to increase dividend per share

• DividendInformation[1].pdf

Consumers• Consumers are at the heart of the business.

The Marketing Code of Practice ensures that Cadbury continue to meet its responsibilities to its consumers.

1. Accurate and truthful  

2. Attentive to local sensitivities 

3. Supporting sensible consumption and balanced life style 

4. Protecting children

Customers• They talk to their customers - the people who sell their

products to the people who consume them - to better understand consumer trends.

Suppliers & Business PartnersCadbury Cocoa Partnership

This ground-breaking partnership aims

to secure the economic, social and

environmental sustainability of around a million cocoa farmers and their communities in Ghana, India, Indonesia and the Caribbean. 

Employees

• Cadbury’s success relies on its people. Cadbury has a strong heritage in the way it respects its people and its social responsibilities.

• Learning and development

• Equal Employment Opportunities and Diversity

• Remuneration and Reward

• Health & Safety

Society

• Growing value in the community is part of Cadbury’s heritage and integral to achieving its core purpose of working together to create brands people love.

• • Contribute 1% pre-tax profit for Community Investment year-on-year

• • Encourage at least 25% of employees to volunteer in the community

• • Encourage the inclusion of community objectives in the development of

• people, brands and reputation• • Build on partnerships to help address social,

economic and environmental• concerns

WHAT IS CORPORATE RESPONSIBILITY

Corporate responsibility1. Also known as CSR, CC, RB, SRB, CSP2. A form of corporate self-regulation integrated into a

business model.3. Business would embrace responsibility for the impact of

its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere

Cadbury’s Approach to CSR“Our Approach to Human Rights reinforces the key areas

where our business activities impact on human rights and how we address this through our CSR and wider

business agenda”

2008 2007 2006 2005 2004

Cash supports

507,391 679,744 110,822 194,414 491,572

Gifts in Kind 65,881 69,386 119,522 243,430 167,463

Employee time

482,243 412,585 442,977 348,025 347,622

Management Costs

169,894 127,235 159,905 153,391 131,000

Total Community Investment

Euro1,224,409

Euro1,288,951

Euro 833,226

Euro 939,260

Euro 1,137,657

Facts related to CSR

• Ghana teacher trainingColleges & schools

• Communities library& free newspaper

PAKISTANI PARALLEL

PAKISTANI PARALLEL

• Pakistani Parallel should be: Engages shareowners

Understand consumer behavior

Has satisfied customers

Involves business partners

Encourages employees

Holds responsibility towards society

Engro EXIMP

PAKISTANI PARALLEL

Engages shareowners– Share owners are issued quarterly reports and are a vital part of annual general

meetings. – Major share holders are its employee, IFC , Dawood group & general public.

Understand consumer behavior– Engro has time again proven the importance of market research. – With diversified product line from Chemicals to FMCGs the need to understand

consumer and the changing trends is critical to its business.

Has satisfied customers– Engro supports its customer and works in partnership with them. – It strengthens this relationship through customer development and by helping

them in their own growth .

PAKISTANI PARALLEL

Involves business partners– Engro relies heavily on its business partners which include distributors and

consultants. – This partnership creates a bond, encouraging both parties and leading them to

achieve goals collectively.

Encourages Employees– Engro regards its employee as its biggest asset and supports an open culture.– It adheres to the core values of Ethics and safety as its principle guidelines of

business operation.

Social Responsibility– Communities are supported through various projects which are aimed in

improving their lifestyle and helps in playing their part in the betterment of the country.

– 1% of its profit is reserved for social development programmes.

PAKISTANI PARALLEL

CONCLUSION & LEARNINGS FROM THE CASE

Engaging stakeholders in a business leads to……..

• Ensure long term success

• Win Win situation

• Sustain goodwill & co-operation

• Competitive and successful