This discussion is based on a typical marketing problem. Assume that you are the

Question

This discussion is based on a typical marketing problem. Assume that you are the product manager for the manufacturer of a well-known brand of corn-based snack products. Seasonal problems have resulted in the cost of your main raw material (corn) going up this year. Even without this problem, the margin for your product is only 4-5% and this product category is very competitive with several strong existing brands. Obviously, you want to maintain this margin so that your company does not start making a loss on this product What are your options here (as a product manager)? What are the pros and cons of each option and which option would youfinalily choose? Notes: This is a thought exercise and the topic of this discussion is "'ethics, and the subject is marketing" i.e. you need to approach this from the perspective of the 4 Ps. There may be various ethical implications associated with these options which you need to consider.

Explanation / Answer

Even there is tough competition existed in the market, if there are no profits, it is foolish decision to exist in the market. Of course, if the competitors are getting profits at the same level of price and in the same market, it means we are lacking at some point. First I do not prefer to lose my margin at this level. For this I may chose alternative sources of income. For example, on the pack I may print some advertisement of others, to promote the brand (which is not substitute to the snack). There is no need to compromising quality of the product, and quantity of the product. If it is the market condition, I prefers to increase the volume of sales, hence, the little margin on each sale help go get higher margins.

On repetitive sales, I may announce some additonal offers like, for the second sale, we will offer discount 10% if the purchase value is doble, etc.

But I do not prefer to breach of ethics and do not interest to lose the trust of customers. profits may change regularly, but if we lose the trust once, it is enough to the rest of life, we never run in the market.

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