PepsiCo's Product Communication: Is It Ethical?*

Abstract:

In March 2012, PepsiCo, the America-based Food and Beverages company, quietly removed the ‘SnackSmart’ labels from its food products and changed its cooking medium back to low cost palmolein from rice bran oil. Health activists opposed this move, which raised health concerns among consumers. The case also shows how the company promoted its products and why it changed the product ingredients. It raised ethical concerns about product communication and the promotion of the product.

Issues: » Discuss how PepsiCo promoted its snack products to increase market share » Understand and discuss the ethical issues in product communication Introduction In March 2012, Frito-Lay , a food division of PepsiCo India Ltd (PIL), quietly removed the ‘SnackSmart’ (Refer to Exhibit I for SnackSmart Label) label from its snack packs. PIL switched its cooking medium from the healthier rice bran oil to low cost palmolein oil to reduce costs. Health activists in India accused PepsiCo of failing to inform consumers about the change in its product ingredients. However, PepsiCo denied the charge...

Key words:
PepsiCo, Frito-lay, Cost, Ethics, Product communication, Label, Snacks, Healthy, Food and Beverage, Market Share, Promotion, Advertisement, Ethical advertisement, Strategy

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