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



Case Code : CLCB060
Publication date : 2008
Subject : Consumer Behavior
Industry : -
Length : 04 Pages
Price : Rs. 100

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Key words:

celebrity endorsement, advertisement, legal, ethics, competition, health and wellness, competition, Fritolay, India, PepsiCo, Indian Medical Association, IMA, Tropicana, Quaker Oats, Hindustan Unilever Ltd., Kellogg's, Nestlé, Dabur Real, Dabur, Get Active program, Dettol, Dispirin, Reckitt Benckiser, Pampers, Procter & Gamble, Eureka Forbes


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In 2008, Fritolay India, the snack foods division of PepsiCo, entered into a deal with the Indian Medical Association (IMA) whereby the IMA would endorse the two brands Tropicana and Quaker Oats. Analysts felt that PepsiCo had entered into the deal with the objective of warding off stiff competition from competing brands, gaining a foothold in the growing health and wellness market in India, and silencing critics who charged it with promoted unhealthy products such as sugary drinks and salt-laden snacks. However, the company's decision to use the IMA's endorsement raised ethical concerns and fueled a hot debate in the media.


 » Influencing consumer behavior
 » Reference groups
 » Consumer behavior and product and promotional strategy
 » Sales promotion
 » Ethics


In 2008, Fritolay India, the snack foods division of PepsiCo Inc. (PepsiCo) signed a memorandum of understanding (MoU) with the Indian Medical Association (IMA) to promote its brands Tropicana (fruit juice) and Quaker Oats (breakfast cereal)...

Questions for Discussion:

1. Would making changes in the products such as snacks (potato chips, oatmeal, etc.) to make it healthier lead to increased demand for these products? Would consumers be ready to pay a premium?

2. Does endorsement of products such as Quaker Oats and Tropicana by a medical association influence consumer behavior? Would it lead to increased demand for these products?

3. Discuss the ethical implications of the case.

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