Wholesome Snacks, Inc., the maker of a variety of cookies and crackers, has just
ID: 379950 • Letter: W
Question
Wholesome Snacks, Inc., the maker of a variety of cookies and crackers, has just created a new vitamin-packed cookie. The new cookie has the potential to combat many of the health problems caused by malnutrition in children throughout poverty-stricken areas of the world. To date, however, many of the larger developing markets have resisted opening distribution channels to Wholesome’s products. Wholesome realizes that its new cookie could also help open the door for the company to sell its less nutritious products in these markets. Therefore, the company is offering the new cookie at a low cost to government relief programs in exchange for the long-sought distribution channels. The company feels the deal is good for business, but the countries feel it is corporate bullying.
1. What do you think about Wholesome’s idea for opening a new distribution channel?
2. Does the AMA Statement of Ethics address this issue? Go to www.marketingpower.com and review the statement. Then, write a brief paragraph on what the AMA Statement of Ethics contains that relates to distribution channels in developing nations.
Explanation / Answer
1. There are two issues with respect to the new distribution channel. To begin with, opening the channel to appropriate the vitamin-enriched product is moral and commendable. As the situation demonstrates, the cookie would be beneficial to the overall health of the country. BUt as Wholesome would also like to sell its less nutritious cookie with the same channel which creates a situation of the suspect. If Wholesome opens the channel, appropriates the vitamin-enriched cookie, and presently starts showcasing undesirable snacks in nations where ailing health in common, at that point the organization would act flippantly and unscrupulously. Assuming, be that as it may, the organization either focuses on showcasing just the vitamin-enriched cookie in creating nations until the point when the level of unhealthiness is practically identical to industrialized countries, at that point Wholesome would have the capacity to act both morally and in a socially capable way.
2. The AMA proclamation of Ethics has a particular segment that is related to distribution. One point in this area prevents "controlling the accessibility of an item with the end goal of misuse." The point tends to Wholesome's circumstance more intently than the others, apart from the condition of behaving sincerely and not intentionally doing hurt. Note that the AMA does not view its Statement of Ethics as exhaustive, so advertisers may go up against moral issues that are not particularly tended to by the announcement.
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