Lastly, the stores that carry this company’s products are also affected. The ethical issues at hand involve false advertising, negatively impacting the health of children, and receiving bonuses based on harming others. Childhood obesity is currently a major issue. By gaining the attention and trust from parents who are looking for healthier breakfast choices for their children, this company is deliberately taking advantage of them. In the end, it is the children and their wellbeing that will be hurt the most.
Indeed, the CSD consumption have strated to decline, the industry have to face the emergence of non-carbonated drinks and also the awareness of the public about health. The stakes are changing for the market leaders, Pepsi and Coke. In order to understand the reasons why the CSD industry has been massively profitable and also the keys to success and the future of this so-called war, we will analyse it using different tools : the value chain, a SWOT analysis of the two companies and the Porter’s five forces. 1) The value chain - Blending raw materials and package the mixture are made by concentrate producers. - Adding carbonate and bottle and can actions are made by the bottlers.
Starbucks Statement of the Problem In late 2002, Starbucks finds themselves at a crossroads. The current challenges consist of how to improve customer service, no cohesive strategic marketing department, a widening customer demographic, and an unclear brand perception. Recommended Course of Action One of their major problems, improving customer service, can be resolved by increasing their labor hours by 20 hours per week at a cost of $40M annually. Secondly, Starbucks should form a centralized strategic marketing department in order to more effectively create brand equity. Thirdly, to resolve the issues of a widening customer demographic and unclear brand perception, Starbucks could engage in a promotion to encourage their most loyal customers as well as new business through promotions such as a free cup after “X” visits or a “club card” that encourages repeat business.
A strong brand influences the choices made and products bought by customers. Once a company has built a strong brand, it must maintain a positive reputation. Premium Price Companies with strong brands can charge more for their products and services because the brand is valuable in the eyes of consumers. Some customers won't even consider purchasing alternative products because they do not believe they will receive the same value. For example, a customer may choose to buy a premium cup of coffee from a national coffee chain instead of buying coffee at a local corner store.
These “easy and cheap ways” instead of shaping your body can instead be a cause of damage to your health. Some drug companies promote products that promise you everything you’ve ever wished for without the hassle of being hungry. They advertise “lose weight without the hassle of dieting” or “lose 10 pounds in 1 week guaranteed or your money back”. In addition other so called “dietitians” encourage special miracle diets that assure fast and effective weight loss in very little time and with little effort. How safe are these products and how valid are the claims made by these companies?
The study did however find that consumption of the organic foods may help reduce exposure to antibiotic resistant bacteria as well as pesticide residuals. I was shocked by the results of this study. I believe the majority of people have always believed that organic foods are far healthier than conventional foods. Organic foods generally cost 20% more than the nonorganic varieties. A good question to ask yourself is whether or not it is worth it to pay the extra money for organic foods.
Several studies made by universities, independent organizations, and the government blame the high fructose corn syrup for the condition. I do not agree 100 percent with that position. I think HFCS is necessary in our food chain, and will benefit us (the consumers) if we control the daily intake of food with high concentrations of fructose derivate from corn. Less soda, chips, alcoholic beverages and increasing the intake of water, fruits, vegetables, and exercise to stimulate the chemical process of the body will help the pancreas to increase the segregation of insulin, which is in charge of processing any type of fructose, or sugar. Making small adjustments to our daily habits could significantly improve overall human health, and reduce diabetes cases.
So why is organic food getting ever more popular? By just putting a label on food saying it’s healthier and safer than regular food would be enough to get people to buy it. Also with all the more and more places opening like Whole Foods Market, Central Market and Fresh Market attract people from everywhere. If consumers believe its better for them and it makes them healthier and maybe even live longer, people would buy it no matter if its more expensive than lets say Wal-Mart or Sam’s Club. Others buy organic foods over conventional because they believe it’s helping the environment or they don’t want to support the practices of agribusiness (Jackson).
With less food going through the intestine, the digestive system has an easier time of processing the food you take in. This prevents over stimulation of the colon and eases some of the discomfort that is common with IBS, such as bloating and gas. Smaller meals also keep your blood sugar even to avoid feeling tired and lethargic during the day. This gives you a sustained amount of energy and allows you to get through the day without feeling as though you need a nap. Smaller more frequent meals throughout the day also prevent overeating at meals which can also aid in weight loss.
Coca cola announces that they are fighting against the obesity rate. However, changes in the formula to lower calories in their sugary drinks would cause cancer to consumers. In addition, new marketing campaigns are criticized of giving the public mixed message of false intents. Opportunities: Changing consumer lifestyle, by becoming health conscious and preferring substitute products. Coca cola is now offering health conscious products.