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Discuss any THREE relevant environmental forces that were highlighted  in the case

Discuss any THREE relevant environmental forces that were highlighted  in the case

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Discuss any THREE relevant environmental forces that were highlighted 
in the case 

In August 2007, American Tobacco Company, one of the world's leading marketers of tobacco products including cigarettes began a promotion in the USA that included sending direct mails to teens and young adults on their birthdays. The campaign, titled "Drinks on Us," included a birthday greeting card as well as a set of drink coasters on which several recipes were printed for making many different concoctions of alcoholic beverages. The drink recipes were mixed drinks of fairly high alcoholic content and included many well-known brands such as Smirnoff, Jack Daniels, Grey Goose and Absolut Vodka. With the recipe on one side of the coaster, the flip side included a tag line switch phrases such as "Go 'till Daybreak," and Make Sure You're Sitting."
Transcribed Image Text:In August 2007, American Tobacco Company, one of the world's leading marketers of tobacco products including cigarettes began a promotion in the USA that included sending direct mails to teens and young adults on their birthdays. The campaign, titled "Drinks on Us," included a birthday greeting card as well as a set of drink coasters on which several recipes were printed for making many different concoctions of alcoholic beverages. The drink recipes were mixed drinks of fairly high alcoholic content and included many well-known brands such as Smirnoff, Jack Daniels, Grey Goose and Absolut Vodka. With the recipe on one side of the coaster, the flip side included a tag line switch phrases such as "Go 'till Daybreak," and Make Sure You're Sitting."
From the start the promotion was fraught with problems, coming under attack from a range of interest groups. Firstly, the promotion came under heavy scrutiny and started receiving legal challenges from the State Attorney Generals in several states, a host of public advocacy groups, parents and the even the alcohol distillers themselves, who were owners of the liquor brands which were featured in the recipes. The Attorney Generals, parents and advocacy groups said the promotion endorsed and promoted heavy drinking among vulnerable groups, especially teens, and many of the recipes could be considered deceptive and misleading. For their part, the distillers were angry, because their brands and products were being promoted without their permission and consent. In addition, the distillers argued that the promotion had nothing to do with alcohol, since American Tobacco only marketed cigarettes. Even then, they further argued, its actions violated the alcohol industry advertising code, which prohibits marketing practices that encourages excessive drinking particularly among underage groups. Even competitors to American Tobacco Company voiced their concerns about what they were termed the "under handed" method that was it was using to garner support for its products among customers. These competitors on hearing the mounting howls of public criticism and fearing possible legal actions, promptly cancelled the promotion and issued a series of public apologies for its actions. Eventually, the public criticism died down and no legal actions were taken against it, but the actions of American Tobacco brought into sharp focus, the judgment of its marketing department and their appreciation for the many environmental actors and forces that may be affected by its marketing programmes.
Transcribed Image Text:From the start the promotion was fraught with problems, coming under attack from a range of interest groups. Firstly, the promotion came under heavy scrutiny and started receiving legal challenges from the State Attorney Generals in several states, a host of public advocacy groups, parents and the even the alcohol distillers themselves, who were owners of the liquor brands which were featured in the recipes. The Attorney Generals, parents and advocacy groups said the promotion endorsed and promoted heavy drinking among vulnerable groups, especially teens, and many of the recipes could be considered deceptive and misleading. For their part, the distillers were angry, because their brands and products were being promoted without their permission and consent. In addition, the distillers argued that the promotion had nothing to do with alcohol, since American Tobacco only marketed cigarettes. Even then, they further argued, its actions violated the alcohol industry advertising code, which prohibits marketing practices that encourages excessive drinking particularly among underage groups. Even competitors to American Tobacco Company voiced their concerns about what they were termed the "under handed" method that was it was using to garner support for its products among customers. These competitors on hearing the mounting howls of public criticism and fearing possible legal actions, promptly cancelled the promotion and issued a series of public apologies for its actions. Eventually, the public criticism died down and no legal actions were taken against it, but the actions of American Tobacco brought into sharp focus, the judgment of its marketing department and their appreciation for the many environmental actors and forces that may be affected by its marketing programmes.
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