Marketing-Shasta Wine Cooler
The company’s decision to expand is primarily motivated by thedesire to increase profitability and tap into an expanded market.Furthermore, the product will propagate the corporation’s traditionof providing low-cost alternatives to consumers. From an ethicalperspective, the product line expansion appears to be insensitive.For example, the organization attempts to leverage its excellentreputation and hence increase profits (Eagle & Dahl, 2015). Inthis regard, consumers would be duped into making purchases as thebusiness capitalizes on the Shasta name. Moreover, the enterprisewould be taking advantage of the cost-conscious characteristics ofits clients. The firm also undercuts competitors such as Pepsi-Colaand Coca-Cola by offering products that are below the market’sprices. In addition, the National Beverage Corp. has disregarded thesafety implications of drinking the wine cooler product. The lack ofquality checks subjects the clients to health hazards. Consequently,the company would be committing several ethical violations byattempting to expand its production line.
Due to the stated factors, the company should postpone its productlaunch until some changes are implemented. For example, the spin-offbrand needs to be subjected to health checks to determine whether itis safe for consumption. Offering products at lower prices than thosequoted by competitors raises suspicions about quality (Eagle &Dahl, 2015). Therefore, the organization needs to address any safetyconcerns before proceeding to advertise the product. Notably, thecorporation has customarily provided low-cost drinks for many years.Consequently, it has gained an excellent reputation withprice-sensitive customers. In particular, parents have favored thecompany`s beverages in comparison to those produced by bigger brands.In this respect, it is essential to ensure the new product`s safetybefore supplying the market. The desire to offer low-cost beveragesshould not be satisfied at the expense of quality.
Eagle, L. & Dahl, S. (2015). Marketing ethics & society.Los Angeles, Calif.: SAGE.