Less Suger Campaign

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CASE ANALYSIS #1: THE “LESS SUGAR” MARKETING CAMPAIGN You are the brand manager for the children’s division of a large cereal manufacturer. The marketing team presents you with a new advertising campaign for three of your less successful cereal brands. Your Division Chief has set a performance goal for you for the coming year to increase sales of these products by 20% in order to earn a substantial bonus. The marketing team will also receive bonuses based on the success of the campaign. Large print and dynamic graphics on the new cereal packages exclaiming “75% LESS SUGAR” are designed to catch the parent’s eye and increase sales. Concerned about the problem of childhood obesity and their children’s weight gain, parents will be more likely to purchase the cereals. The research and development team has reformulated the products using a sugar substitute – a synthetic carbohydrate. However, the actual carbohydrate content of the “less sugar” product is virtually the same as the high sugar version - at best, resulting in only 10 fewer calories per bowl, so it offers no significant weight loss advantage. The reduction in calories is calculated on a smaller portion size. The marketing team has based its campaign on the fact that there is less sugar in the cereal compared to previous formulations and compared to similar competitive children’s cereals. Your immediate reaction is, “This marketing campaign is unethical.” • Is there an ethical issue here? False advertising: Advertising on cereal packages 75% less sugar. • How can you be sure of your judgment? • How can you convince the marketers? • Who are the stakeholders? • How should you act in this situation? Using the utilitarian approach, ask: “Are we maximizing good and minimizing harm for all those affected?” Identify alternative actions and those who are affected by each

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