Uptown, Dakota and Powermaster Case Study Essay Example for Free

upt take in, Dakota and Powermaster Case Study seeIn 1989, R.J. Reynolds announced to introduce a plan for uptown, the cigargonttes designed to target at black smoking carriages. However, Uptown never reached the shelves beca economic consumption the opposition of more or less evoke conclaves. In 1990, R.J. Reynolds begun to sell Dakota, which were a new cig artte grunge targeted primarily at 18 to 24 years old young-bearing(prenominal). In 1990, the alcohol producer Heileman brew guild launched a new full(prenominal)-alcohol drink PowerMaster, in order to targeted at black customers. R.J. Reynolds tobacco Co. and G. Heileman create from raw material Co. targeted the minority and ethnic congregations. The cleavage merchandise outline of the cigargontte and alcohol participation induced some list marketing problems (Smith, 1995).II. Ethical Issues of the partnershipThe ethical issue of R.J. Reynolds and G. Heileman brew was the same they targeted the consumer s egments viewed as threatened with the unhealthy products. Although marketing segmentation is an important marketing system for the political party, the introduction of Uptown, Dakota and PowerMaster affirm resulted in controversy and even criticized as wrong because the products targeted at those people who are in lower income and with fewer reproduction experience.2.1 Ethical Issues Related Uptown and Dakotasource http//www.naaapi.org/documents/uptown.aspWith sales amount declining, R.J. Reynolds announced to introduce Uptown to look for new customers. Uptown is designed according to the black customers capital punishment with lighter menthol and upside down filter. Uptown was aerated for its misleading advertisement message brought more disease to a group with steep fume illness and mortality (Richard J, 1998). Although the plan of Uptown was cancelled because of the sinewy against of the social interest groups, the companys segmentation dodge was implemented via othe r brands such as Dakota. Dakota targeted young female through the use of younger slim models and the advertisement slogan to mislead the young women smokers. Most of the targeted customers of Dakota were white female with high school degrees or blue-collar workers. They were so young to have good self-control awareness or the ability to judge true or false from the advertisement. And the company advocated Dakota as slim cigarettes and appealed the young female customers with misleading message.2.2 Ethical Issues Related to PowerMasterPowerMaster is a malt liquor that drawn criticism from health organizations, which charged the company promoted the products to poor blacks and inner-city neighborhoods. According to the investigation of these organizations, alcohol was connected to many serious social problems, such as suicide and family violence. And the black men had a 40 percentage higher death of liver cancer than the white people (Bureau of National Affairs, 1991).(Source http/ /www.google.com.au/search?q=powermasterhl) III. Relevant Interactions and Connections of the Stakeholders There are eleven stakeholders mired in this case study. In the following part, I willing use the stakeholder interaction model to appoint the specific stakeholders and the relevant interactions and connections among them. And find how they think and value the ethical issues and their decision.The stakeholder interaction model(Source Maignan, Ferrell and Ferrell, 2003)3.1 beau monde (Management) party R.J. Reynolds Tobacco Co. (RJR) G. Heileman Brewing Co. Senior administrator RJRs CEO RJRs Marketing VP Peter Hoult translator Marketing VP of Philip Morris Co. Both of the companies were under the heavy pressure to improve the marketing share of their products and create more profits to both the shareholders and employees. The business performance of the company will influence relationship with local politics, participation and suppliers. The senior administrators introduced the mew brand to customers, and explain the controversy from the perspective of the company. They provided and applied the segmentation marketing strategy and targeted at the unguarded customers. They believed that the targeted customers have right to buy the products that fit their preference, the introduction of new products wont change the whether they buy or non. Targeting at some special groups is just a tactic of marketing choice.3.2 CustomersThey want the products that better need their needs, and the products are available in the right places with the right prices. The choice of customers will decide the companys operating condition and employees welfare. And the employees produce the products and sell them to customers. Interest groups were feeling forward to nurtureing the health of them. Customers pay tax to brass therefore, the government should make efforts to protect their judicial interests. Customers have rights to buy alcohol and cigarettes, but some customer s may mislead by the unethical strategy of the company and bring bad effect to themselves.3.3 GovernmentSenate National CoalitionThe government should be credideucerthy for the citizens health, when the company introduce the harmful products to the customers and bring bad social impacts, the government can act upon and administrate the company through tax or laws.3.4 CommunityIn this case, the community leaders charged the promotion of alcoholic products of G. Heileman Brewing Company which are targeted at the black and Latino neighborhoods resulted in a series of social problems (Folt,1991). The Community provides the company with physical and social infrastructure that allows the company to do business.3.5 SuppliersThe suppliers are business partners of the companies, they want to maintain long-term and trusted relationships with the company.3.6 ShareholdersIn this case, the shareholders were the people who bought the stocks of the R.J. Reynolds Company and G. Heileman Brewing C ompany. They were grant to get the profits of the enterprises in the form of dividends and they valued to maximum their return on the investment. Shareholders also wanted the company to behavior ethically and gain good reputation, however in some instance the stockholders strong desire to get profits may push the company conduct unethical marketing strategy in order to meet the commitments to the shareholders.3.7 EmployeesThe employees and shareholders mutually influenced each other, employees wanted to get reward consistent with their performance in the company. They brought economic profits to the stockholders, and they hoped their welfare could be improved as a return. Although employees of R.J. Reynolds and G. Heileman Brewing were not the direct business decision makers, they produced and sold the unethical cigarettes and alcohol to the vulnerable customers. And as a particle of company, their welfare is related to whether the customers choose their products or not. When the y loss the trust of customers they will also lose their own interests.3.8 Special Interest GroupsPublic Health OrganizationsHealth and Human Services Secretary The Womens lawn tennis Association Center for Science in the Public Interest (CSPI). Public Health officials (Louis W. Sullivan Reed Tuckson operating surgeon General Koop) They have activities against the company and give information to the customers via the mess media. They criticized the Tabaco and alcohol company giving misleading information to the venerable customers and exploited profit from the poor, young, black and Hispanics groups. The special interest groups try to stop the unethical business strategies of the companies through boycotts and giving macrocosm censure to the government agency in order to protect he customers from unhealthy habits and behavior.3.9 Trade AssociationsThe Beer Institute Bureau of Alcohol, Tobacco and Firearms (BATF) The trade organization is an organization in the same trade formed to further their collative interests. The relative Trade Associations has the power of giving approval of apply the label and also has the rights to use the related policies and regulations within their industry to control the behavior of the enterprises. In this case, BATF pushed G. Heileman Brewing Company to drop the word power.3.10 CompetitorsPhilip Morris Co. BAT Industries Black Sunday Crazy Horse St Ides. The marketing shortage of the companys competitors may give the decision maker some enlightenment. And the company may imitate competitors profitable products and transfer its attention to the new area, do research on the new products in order to compete with others. In the case, Philip Morris is the leading cigarette company provides young female smokers with the brand Marlboro. The strategy of Phillip Morris pushed R.J. Reynolds into targeting at young female customers.3.11 Mess MediaThe black oriented newspapers and magazines such as Jet and jet black Other media Commenta tor of the media New York Times Beverage World Fortune. The target marketing oriented media produce alcoholic drinks and Tabaco advertisements to the customers, which may induce the prevalence of smoking. Other media reported on the protest against targeting at vulnerable customers. The Commentator of the media offered the customers with insightful analysis of the target marketing products and give suggestions to officials in the health organizations.IV range the StakeholderIt is necessary to understand the relationships of all the stakeholders involved in the activity of the company or the interest groups. Having a good management of the relationships with each kind of stakeholder will be beneficial to the performance of that organization. The following two lists showing a rank of the stakeholders involved in the business activities of R.J. Reynolds Tobacco Company and G. Heileman Brewing Company from the perspectives of the two companies and interest groups respectively.The shar eholders hold the stocks of the company, in other words they can decide the companys fate, and its the companys obligation to maximize the stakeholders benefits, So R.J. Reynolds Tobacco Company and G. Heileman Brewing Company ranked their own shareholders in the most important place. Employees can provide research, manufacturing and sales services to the customers, their blessedness of working conditions and welfares will influence their performance during the working period and then directly influence the companys operating performance. Customers are usually regarded as the most important stakeholders. No company will operate well if it cannot persuade customers to buy its products. Therefore, both R.J. Reynolds and G. Heileman designed new brand products to the customers in order to increase their marketing share and get more profits. But they used wrong marketing segmentation strategies, and brought bad effects to the vulnerable groups that they are targeted at.4.2 From the int erest groups perspective 1 Customers2 Community3 Mass Media4 Employees5 Government6 Trade Association7 Shareholders8 Suppliers9 Company10 CompetitorsIn this case, all the interest groups involved in are the noneconomic public health organizations such as Health and Human Services Secretary The Womens tennis Association Center for Science in the Public Interest (CSPI) and so on. These noneconomic interest groups seek the solutions of the public concerns and issues. They against the tobacco and alcohol companies targeted at some vulnerable customers, and sold harmful products to these customers with unethical ways. Therefore, from the interest groups perspective, the interests of the customers should be ranked in the fist place.The basic meaning of Community is a group of people living in the same locality and the same government (Wikipedia). The ultimate objective of the interest groups is solving the social issues that they concerned and about and then improve the total living stan dards of the community. And the Community provides the company with physical and social infrastructure that allows the company to do business. Therefore, when a company was failed to exercise its obligations, the Community has the concern to interdict its unethical behavior (Patrick 2004). In the case, the boycott and other against activities of the interest groups are under the detain and assistance of the mess media. The media not only gave the pressure to the unethical companies, but also showed right steerage of public opinion.V Alternative Courses of Action and Recommendation5.1 Alternative Courses of Action Recommendations for Company For R.J. Reynolds Tobacco Company and G. Heileman Brewing Company, they should rank the customers in the first order rather than their own interests. Although marketing segmentation is an usable strategy in some conditions, the marketers of the alcoholic and tobacco industry should not target at the groups who are vulnerable due to their dis advantages in income, knowledge, age, life circumstance and so on. The alcoholic makers should provide the obvious mark with the information of the content, serving size the macronutrients, and the hazard of over drinking. The companies should participate more in the charitable activities, process and sponsor the people who suffer from the bad disease may caused by their products in order to have a better implementation of social responsibility.5.2 Alternative Courses of Action Recommendations for Interest Groups For the interest groups, they should help and didactics these vulnerable citizens directly with informative knowledge and cooperate with government rather than only criticizing the cigarettes and alcohol company. Cooperating with the government in order to better restrict unethical business strategies in alcoholic and tobacco industry. The government could use more methods to regulate and administrate the enterprise behavior through tax and law. Providing tobacco-use pr evention courses in the school. The general awareness of the smoking harms health should be introduced since the primary school and reinforced in the high school in order to increase the successful rate of preventing tobacco for the young people. Encouraging the family members of the smoker or alcoholic drinker to persuade them giving up the unhealthy products or reduce the measuring of consumption.ReferenceSmith, N 1995, Case Study Uptown, Dakota, and PowerMaster, Communication in moving in Internal and External, P54-58. Patrick, E, Gene, R, Norman, E Thomas, A 2004, Ethical marketing, Pearson Education, New Jersey. Grace, D Coken, S 2005, Business ethics problems and cases, Oxford, New York. Fisher, C Lovell, A 2006, Business ethics and values individual, corporate and international perspective ,Pearson Education, Harlow. Warner, K, Goldenhar, L1992, Targeting of cigarette advertising in US markets, Tobacco Control, vol.25, P30. http//www.naaapi.org/documents/uptown.asphttp// www.google.com.au/search?q=powermasterhlRichard, J 1998, Life in a Business oriented society, Allyn and Bacon, Boston. Smith, C Martin, E 1997, morality and target marketing the role of product harm and consumer vulnerability, Journal of Marketing,vol.61, P1-20.