In: Finance
Enjoy Cola is a new product produced by ABC Beverage and marketed with the slogan “Relax with Enjoy”. Unlike other colas on the market, Enjoy does not contain caffeine and therefore is positioned as the perfect beverage to end the day or for a slow-paced weekend, and as a means to help consumers relax and unwind. The market response has been tremendous, and sales of Enjoy have been growing rapidly, especially among women.
ABC Beverage decided not to list on the ingredients label that Enjoy contains a small amount of alcohol because it is not required to do so by the government unless the alcohol content is more than 1 percent. It is perfectly legal not to disclose the alcohol content on the label.
Assignment:
1. List all the possible actions Mia Rodriquez should consider taking. What are her alternatives?
2. List the pros and cons of each alternative.
3. Select the alternative you would recommend to Mia as being the best course of action for her personally and professionally. Explain why.
4. How do you anticipate ABC Beverage will react to Mia’s action? Why?
5. Is there a win-win scenario in this situation? Why or why not? Explain your answer.
Mia Rodriquez, the marketing director for Enjoy, only recently learned that Enjoy contains small amounts of alcohol and is troubled about ABC’s failure to disclose this information on the ingredients list. She worries about the impact of this omission on consumers who have alcohol sensitivities or those who shouldn’t be consuming alcohol, such as pregnant women, minors, recovering alcoholics and people with religious restrictions against using alcohol. However, Mia is uncertain about how to proceed.