Spyke and Wide-Eye were not bad products because they focused on fulfilling a consumer need. Through a new focus on caffeinated and fruity drinks, young adults could choose the drink over pure alcohol alternatives. Although it was in the market for a few months, it’ success shows that the product was able to communicate to a specific market target.
Do you think these products were marketed in objectionable or misleading ways? Explain your answer.
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The product was marketed in a misleading way which impacted the response against the brand. Marketing and advertisement strongly determine public perception of a product. In this case, the products seemed to be aimed at attracting the underage and at the same time, avoided mentioning the risks. For instance, the lack of age verification and language used was teen-friendly that could encourage website visits and consumption. The tactics used focused on a vulnerable population that needs all the facts about the dangers of what they consume.
If you were in charge of marketing Spyke and Wide-Eye, what approach would you have taken to promote the products, while mitigating the adverse publicity associated with them?
If I was in charge of marketing, I would have ensured that advertisements did not leave out information on the dangers of caffeine and alcohol. Responsible advertising focuses on providing the truths without trying to mislead people. As such, the products would have a larger disclaimer to indicate that it is a beverage that would have an adverse impact if consumed in large amounts.
Do you believe there is a need for government to place more restrictions on alcohol advertising? Why or why not? If so, what limits are needed and how would any restrictions that you propose meet the Central Hudson guidelines?
More government restrictions on advertisements are needed to promote industry compliance and protect the underage consumers. Through adherence to strict regulations, the number of complaints and fines would greatly reduce since the companies are obliging with what they are supposed to do. I would focus on truthful images and written statements on the products which would ensure compliance with the Central Hudson guidelines by advancing government interests in regulating the industry and protecting consumers. Indeed, I agree that more restrictions would minimize the ability for companies to take advantage of loopholes that can encourage untruthful promotions. Studies indicate that although companies comply with 70% of the guidelines, some companies are still seeking the youngest audiences (Steiner & Steiner, 2012). Through restrictions on ad placement, the government can ensure that the companies use channels where a large percentage of the audience is over the age of 21 years.
References
Steiner, J. F., & Steiner, G. A. (2012). Business, Government, and Society: A Managerial Perspective, Text, and Cases (13th ed.). New York, New York: McGraw Hill.
