Question

Prepare arguments for the behaviour.

You work in the marketing department of a large dairy products company. The company has launched a “revolutionary” yogurt product with ingredients that promote healthy digestion. As a promotion to launch the new product, the company is offering to donate 10 cents to the American Heart Association (AHA) for every foil top from the yogurt pots that is returned to the manufacturer. To support this campaign, the company has invested millions of dollars in a broad “media spend” on television, radio, web, and print outlets, as well as the product packaging itself. In very small print on the packaging and advertising is a clarification sentence that specifies that the maximum donation for the campaign will be $10,000. Your marketing analyst colleagues have forecast that first-year sales of this new product will reach 10 million units, with an anticipated participation of 2 million units in the pot-top return campaign (a potential donation of $200,000 without the $10,000 limit). Focus groups that were tested about the new product indicated clearly that participants in the pot-top return campaign attach positive feelings about their purchase to the added bonus of the donation to the AHA.

Answer 1

The motive of the campaign for the company is very generous and it creates a positive social imprint of the company in the society. Through this campaign the promotion of the company is also increasing.When there will be capping on the amount of donation to $10,000, it will not be ethical and will left a wrong impact on the company. The marginal revenue due to this campaign in quite higher and it will increasing according to time also. Company will try to get more and more positive feelings about the company and the goodwill of the company can also be increased.