 the positive effects the product has. All the publics have potential impact or interest in the end objective to improve the malnutrition of school child in poor countries,
Question 2 (20 marks)
Identify four criticisms of marketing’s impact on individual consumers. Describe how GAIN and the Vitango case might or might not be subject to these criticisms. Support your answers with examples from the Vitango case.
Divide your answer into four sections, one for each criticism.
Section #1 – High Prices As seen in the case, the price has been placed higher than other none fortified drinks. Although the high cost of development and lead times do play a big determinate of price, the Gain and Local Government should assist where possible to price the drink mix a price level the target market can afford and choose for the right reasons. Gain should be enlisted to provide funds that allow the drink mix deliver to the very poor that would not be able to make the choice to buy Vitango. This may include providing the drinks free through school and other nutritional programs the Local Government may have. This market is a market that does not have many funds available to purchase the necessities of life, therefore since this a necessity the price should be set with that in mind.
Section #2 – Deceptive Practices Deceptive Practices are seen here because Coke-Cola is a for profit company. Even the pricing model has been placed at a higher cost than other mix with water drinks. This is why it is important for Coke-Cola to use organization like Gain to be trusted by the publics of the market they are working. Although, the mission of the Vitango product to provide a fortified supplement to the diet of malnutrition school children, Coke-Cola will still be seen to be looking for profit in some from.
Section #3 – High-Pressure Selling Vitango fortified supplement as a high pressure selling practice, I don’t really see. The High Pressure Selling aspect will be how to educate the families on the benefits of the product. One way this can occur is to use Marketing Partner like P&G did to match their product up with an option for the Happy Meal at McDonalds. High Pressure Selling would have benefits of getting the product to the target market to over come some of the educating needs for the consumers.
Section #4 – Shoddy or Unsafe Products Vitango product development so far has had a long lead time. Studies on how the product has improved the attentiveness of the children have been done in a control environment. Other issues have also been consider such as the availability for clean fresh water. This has also caused another delay to getting the product to market. A need now to develop the Vitango fortified beverage in liquid form must now occur to meet the objective to provide a safe and consistence product. With the time that Coke-Cola has invested, this company is not going to turn out a product that does not meet the standards.
Question 3 (15 marks)
Identify three criticisms of marketing’s impact on society. Describe how GAIN and the Vitango case might be subject to these criticisms. Support your answers with examples from the Vitango case. Divide your answer into three sections, one for each criticism.
Section #1 – Consumerism Gain mandate to assist companies in lobbying for favourable tariffs and tax rate and along with speedier regulatory reviews of new products in targeted countries. They also give money to Local Governments to increase the demand for fortified foods. This includes large scale Public relation campaigns or a Government “Seal of Approval”. In Vitango case, Gain is there to assist with $70 million over a 5 year period starting in 2002. Consumerism here is driven by Gain and how it assists companies like Coke-Cola develop and deliver to market in developing countries fortified foods to the target markets. Here Gain will also help deliver the Vitango Product to the children that most need it. This will be done through programs like available in schools for free and other nutritional programs. Gain will also encourage the basic p