Reference no: EM131419020
Nancy Reid is the marketing and new product director at Katona Beverages, a small niche player in the beverage industry. Among Katona's products are iced tea in a can, vitamin water, fruit drinks made from natural ingredients, and bottled water pumped from underground springs. Despite some success, sales and profits at Katona are barely enough for the 65-employee company to survive. Today Reid is meeting with the owner, Al Trout, and the sales director, Louise Garcia. "The bad news," said Nancy, "is that we are barely surviving. Even big players like Coca Cola, Pepsi, and Cadbury are invading our niches. But the good news is that I have a product in mind that should vastly improve our business outlook. "My new product idea will be called Lightening Bolt. It's a caffeinated alcoholic drink. As you know, this category is a small but fastgrowing beverage popular among people under age 30. Because of the caffeine, and a high dose of sugar, we can call it an energy drink. The alcohol will give the consumer the same good feeling as beer or wine, and we will capture a little of their spending on beer, wine, and liquor. "My tentative design for the can will pull no punches. We'll have a drawing of yellow lightening bolt and show young people having a great celebration." Scratching his head, Al commented, "I recently read scientific research reported in a trade journal that people who consume caffeine and alcohol at the same time increase their risk of alcohol-related injuries or other problems. Suppose a few of our customers downed a six pack of Lightening Bolt and then had a multiple-vehicular accident? Would we be liable? "I have also read that the Food and Drug Administration and the Federal Trade Commission might be cracking down on beverages that combine alcohol and caffeine." Louise said, "I kind of like the idea of Lightening Bolt. It will be years before the government agencies get around to placing any real restrictions on this product. We can post a warning on the label about the potential dangers, like they do with medicine. Consumers have to act responsibly with whatever product they use. Look, peanut butter is about 50% fat; that can do more harm to the body than an occasional drink of caffeine and alcohol." Nancy said, "I'm glad you two are at least listening." Al said, "Before we move forward, we should study the pros and cons more carefully. But by the way, Nancy, how long do you think it would take to launch Lightening Bolt?"
Discussion Questions
1. What is your evaluation of the ethics of introducing Lightening Bolt to the market?
2. How socially responsible would it be of Katona Beverages to launch Lightening Bolt?
3. From a management perspective, what do you see as the pros and cons of launching Lightening Bolt?
Compensation analysts for an insurance company
: As a compensation analysts for an insurance company in Hartford, Connecticut, define the relevant labor market for insurance claims adjusters and for data entry clerks. Please provide support for your answer.
|
Manage underperforming department of business
: Imagine that you are hired to manage an underperforming department of a business. Upon assessing day to day operations for a period of time, you observe that there appears to be a good deal of confusion in the department. The problems run the gamut f..
|
Case study-downsizing and appraisals at dbart
: Seminar Three Case Study: Downsizing and Appraisals at DBart (Submit to Assignment Link Day Six) Make sure that your solution is grounded in economic reality and is in compliance with Title VII.
|
Develop a program that will perform security authorisation
: You are required to develop a program that will perform security authorisation based on access codes. The access codes are 4 single-digit integer numbers between 0-9.
|
Pros and cons of launching lightening bolt
: From a management perspective, what do you see as the pros and cons of launching Lightening Bolt?
|
Article on diversity and promise fulfillment by organization
: After reading the Buttner, Lowe, and Billings-Harris (2010) article on diversity and promise fulfillment by organizations, discuss your thoughts on how organizations, and your organization in particular, can use this information to better understa..
|
What kinds of changes occur when emotional wounds
: Maya Lin said that the Memorial was meant to help people confront their pain. What kinds of changes occur when emotional wounds begin to heal - DISCUSS AND COMPARE Edgar Heap of Birds Most Serene Republic memorial and Wheel to Maya Lin's Vietnam..
|
Seniority versus merit pay
: Compare and contrast seniority (longevity) pay with merit pay. Determine the advantages and disadvantages of each, including specific examples to support your response.
|
Whether post treatment movement performance was different
: Five of Leung and colleagues' (2009) patients were male and three were female. We could ask whether post-treatment movement performance was different between men and women.
|