The National Beverage Company (see www.nationalbeverage.com) makes the popular S

Question

The National Beverage Company (see www.nationalbeverage.com) makes the popular Shasta and Faygo drinks. The company also produces water products, juices, and specialty drinks such as VooDoo Rain (similar to Mountain Dew). The company has provided low-cost alternatives to store brands and more heavily advertised national brands (such as Coca-Cola and Pepsi-Cola) for a number of years. The Shasta brand is especially popular with cost-conscious moms.

Assume that National Beverage is considering a product line expansion to include a wine cooler product. The product will be named Shasta Cooler—“Shasta with a punch!” The rationale behind the move is to capitalize on the popular Shasta name, expand into the rapidly growing wine cooler field, and to increase profits. Assume the company believes that this spin-off brand will also be popular with cost-conscious consumers. Evaluate the possibility of this line expansion from an ethical perspective. Considering what you have learned about groups and the family, make a decision for the company. Be sure to explain your position and describe any modifications that you might feel are necessary.

Explanation / Answer

Firms have particular ethical accountabilities when it comes to marketing, for positive public relations in the society , and for their sense of creating a positive influence. Effective methods of demonstrating corporate social responsibility is particularly essential for firms that produce controlled products as they automatically encounter several preconceived perceptions of contributing to the society in a negative manner.

Firms who manufacture alcoholic beverages definitely want to sell as much of the item as possible, & advertising is a good method to promote its consumption. As manufacturers of a controlled product, these firms have the accountability to community to restrain exposure of their commodity to particular groups

Few states in US have laws prohibiting false /misleading alcohol ads, forbidding alcohol ads that target /depict minors, disallowing statements that relate alcohol with athletic accomplishments , banning statements that promote / portray alcoholism , barring alcohol ads near schools , cathedrals , playgrounds.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.