ICMR Case Studies and Management Resources

Asia's Largest Online Collection of Management Case Studies

Directory: Case Studies / Free Resources / Micro Case Studies / Marketing

PepsiCo's Deal with Indian Medical Association to Promote Tropicana & Quaker Oats Raises Ethical Concerns

<< Previous

Email Alerts | Invite a Friend


The company, said it emphasized a four-point health and wellness agenda:

• Focus on research and development (R&D) to make its existing offerings healthier. For instance, its products such as Lay's and Kurkure were fried in rice bran oil, which reduced the saturated fat in these brands by 40 percent. Its products also did not contain MSG or trans fats.

• Introduce healthier variants of existing products. For instance, the Lehar Lite range of snacks contained less oil.

• Expand the company's snacks offerings by including healthier products such as Quaker Oats.

• Make efforts to address the calorie problem by encouraging the adoption of active lifestyles especially for school-going children. For instance, the company had initiated the 'Get Active' program in around 120 schools located in Delhi and Mumbai by the end of 2007.9

As part of the deal, the IMA would also be involved in the 'Get Active' program. "We believe the endorsement from a third party will strengthen the overall messaging of both products and lend further credibility to them,"10 said Mallika Jankiraman, vice president (health and wellness) PepsiCo.

While IMA had, in the past, endorsed products such as Dettol and Dispirin (of Reckitt Benckiser11), Pampers diapers (of Procter & Gamble Company12), and Eureka Forbes's13 water purifiers, this was the first time it was endorsing any food product.

Former IMA president Ajay Kumar, who had inked the deal with the company, said that it had had second thoughts about endorsing products from a company that also sold colas, but the scientific research data produced by the company in support of the health benefits of Tropicana and Quaker Oats had helped clinch the deal.

However, he added that if the company changed any of the ingredients in these products, the deal would be nullified.

The IMA's decision to endorse commercial products raised ethical concerns. According to some sources, the IMA had received Rs. 5 million to endorse the brands. Critics including some doctors castigated the IMA for getting into a deal which, they felt, put it in a conflict of interest situation.14

"The moment a brand is being endorsed by the medical fraternity, for the common man it becomes a healthy food. So we should be a little more careful when we are getting it endorsed,"15 said Ritika Sammadar, a doctor.


Micro Case Studies Main Page Buy This Marketing Case Study

Continued...


9] Amitabh Baxi, "'It's Tough to Maintain the Priceline'," www.economictimes.indiatimes.com, November 22, 2007.

10] "PepsiCo and IMA Sign Non-Commercial Deal," www.medindia.net, May 7, 2008.

11] Reckitt Benckiser Plc, headquartered in Slough, UK, is one of the world's leading manufacturers of cleaning products.

12] Procter & Gamble Co. is a leading manufacturer and marketer of a wide range of consumer goods. It is one of the dominant players in the Indian FMCG arena.

13] Eureka Forbes is one of the largest direct selling networks in Asia focusing on water purifiers and vacuum cleaners.

14] "VIEW: It's a Conflict of Interest," www.timesofindia.indiatimes.com, May 8, 2008.

15] "IMA's Endorsement of Products Raises Ethical Concern," www.ibnlive.com, May 8, 2008.


Email Alerts | Invite a Friend

Google