Question

In: Operations Management

Cereal Inc. Overview You’re a product manager for Cereal Inc., in charge of the “Super-Bran Flakes”...

Cereal Inc.

Overview

You’re a product manager for Cereal Inc., in charge of the “Super-Bran Flakes” brand and are considering a new advertising campaign for the cereal. Previous campaigns emphasized a link between the cereal and consumer health by showing in print and media ads healthy active people eating the cereal after running, biking, rock climbing, etc. You have maintained your market share, though are always on the lookout for a breakthrough advertising campaign that would increase sales.

Your assistant has been reading recent medical research on the link between vitamin B12 and cancer which suggests that high B12 consumption is associated with lower incidences of some forms of cancer. Super-Bran flakes is fairly high in vitamin B12, which is added artificially in the manufacturing process. You know that advertisements linking your cereal to cancer reduction would have the potential to provide a significant increase in sales.

The Research

The research on the link between vitamin B12 and cancer is in the very early stages. A couple of recent studies on rats have identified a statistical correlation between consumption of B12 and a reduced risk of some cancers. But correlation doesn’t mean causation -- it isn’t clear yet to researchers that the B12caused the cancer reduction in the lab animals. Or if it did produce cancer reduction how much B12 the average human would have to consume, and in what form (e.g., an artificial additive vs. naturally occurring) to significantly lower cancer risk. And researchers do not know if negative health effects might result from too much B12 consumption.

Dilemma

Your assistant is suggesting that you produce a new line of advertisements that links vitamin B12 with cancer reduction, saying “research shows that vitamin B12 is associated with a reduced risk of cancer,” with the tag line that “Super-Bran flakes is a great source of vitamin B12!” He argues that the ad is not deceptive because it is technically true, plus if it turns out that B12 does not reduce cancer it probably won’t hurt consumers to eat more of your cereal.

You wonder whether “technically true” is the same as “not deceptive.” You are further concerned about research that shows that when consumers feel they are doing something healthy in one part of their diet they sometimes cut back on healthy alternatives in other parts of their diet. This challenges the assumption that eating more of your cereal will do no harm, as does the uncertainty about whether the overconsumption of B12 mightcause negative health effects.

1. Do you agree with your assistant’s recommendation? On what ethical basis(es) do you justify your answer (i.e., profit maximization, utilitarianism, universalism).

2. If you don’t agree with the recommendation, what decision would you recommend, and why?

Solutions

Expert Solution

Answer 1= I would not accept the suggestion provided by the assistant as although the claim related to B12 vitamin may be technically right, as per the law, although the statement may be technically correct, it will have a false impression to the customers that due to the presence of B12 vitamin, they are using a product that will help them to cure cancer and thus they will stop using the other health products that could actually help them to fight with cancer. As per research, this may also lead to the nonconsumption of some of the really helpful products to fight with cancer.

I would apply the utilitarianism theory of ethics while making this decision as this theory advocates those actions that promote the happiness and interest of the larger population and preventing any action that could harm their interests.

Answer 2= I would also use the presence of vitamin B12 in my product as an advertising tool but I would not claim as the element that can help the consumers to deal with cancer. In fact, I would have the combination of healthy product along with the benefits of Vitamin B12. So my ad campaign will focus on the combination of healthy products and the presence of B12 vitamin adding to the product and this addition of B12 is good for those consumers who are looking for some additional elements in their food to support their health.

This campaign will focus on both that is health and presence of Vitamin B12 but no claims will be made regarding cancer prevention through B1 vitamin in the product.


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