Decision faced by C Company Case summary: C Company- A soft drink manufacturing company faced a challenging situation when the consumer's attitude towards sugar-sweetened and diet drinks started to change. The US saw an increase in the number of cases of obesity, diabetes, and other weight-related cases. In the year 2014, Disease Control and Prevention got to know that 35% of US adults were dealing with obesity. Even children were also becoming obese and the main blame was given to soft drink manufacturer C Company. Because of the shift of people towards a healthy lifestyle, the company said a decrease in revenues by more than 25% since 1990. People started questioning the soft drink manufacturers about the usage of artificial sugar and many shifted themselves from regular soft drinks to diet sodas and even to water. Ironically, C Company was considered as a health and wellness drink during its initial phase because it shifted people from drinking alcohol to drink a non-alcoholic alternative. But because of CCompany increasing obesity among people, the politicians proposed ‘soda taxes” to reduce the amount of consumption of sugar. The soft drink manufacturers are winning the political battle but are losing everything on the same side because the obesity concerns may reduce the demand for some of their products. It has become a risk for their growth and sustained profitability.

Question

Want to see the full answer?

Answer 1

Question

Chapter 11, Problem 35C

Summary Introduction

To determine: Decision faced by C Company

Case summary: C Company- A soft drink manufacturing company faced a challenging situation when the consumer's attitude towards sugar-sweetened and diet drinks started to change. The US saw an increase in the number of cases of obesity, diabetes, and other weight-related cases. In the year 2014, Disease Control and Prevention got to know that 35% of US adults were dealing with obesity. Even children were also becoming obese and the main blame was given to soft drink manufacturer C Company. Because of the shift of people towards a healthy lifestyle, the company said a decrease in revenues by more than 25% since 1990.

People started questioning the soft drink manufacturers about the usage of artificial sugar and many shifted themselves from regular soft drinks to diet sodas and even to water.

Ironically, C Company was considered as a health and wellness drink during its initial phase because it shifted people from drinking alcohol to drink a non-alcoholic alternative.

But because of CCompany increasing obesity among people, the politicians proposed ‘soda taxes” to reduce the amount of consumption of sugar. The soft drink manufacturers are winning the political battle but are losing everything on the same side because the obesity concerns may reduce the demand for some of their products. It has become a risk for their growth and sustained profitability.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Tell me about San Diego Foundation. San Diego FOundation the target market. What are some of the aspects of this nonprofit organization marketing strategies?

Discuss how important is information research to marketers? What are some ways that researchers obtain this information? When you go to a store how do you make certain decision on your product selection?

HerbSkin Naturals HerbSkin Naturals is a skincare range that utilizes indigenous herbs such as rooibos, aloe ferox, and buchu. These ingredients are celebrated for their antioxidant, anti-inflammatory and moisturizing properties, making the products very popular among consumers who appreciate natural, eco-friendly skincare solutions. The current product range includes the following thoughtfully curated five-item line, designed to highlight the unique benefits of South Africa’s Indigenous herbs while addressing a variety of skincare needs. PRODUCT INGREDIENTS BENEFITS TARGET AUDIENCE Rooibos Glow Face Serum Rooibos extract, hyaluronic acid, vitamin C. Enhances skin radiance, reduces fine lines, and protects against environmental damage. The lightweight formula absorbs quickly, leaving the skin smooth and hydrated. Consumers seeking an everyday serum to combat dullness and early signs of aging. Aloe Ferox Deep Hydration Cream Aloe ferox gel, Shea butter,…