Completely and thoughtfully identifies all relevant and important stakeholders in a given problem/case.

MINICASE: MKTG - 25 BUSINESS ETHICS PROGRAM

To Spray or Not to Spray

Topic: Product (Harmful Ecological Impact)

Characters: Marcus, product manager at Crocodile Cleansers

Crocodile Cleansers, a small company in the southeast US, markets a variety of cleaning products. Although the company competes with major national brands, it has had a strong local following, especially among the working class. One of its principal products is Ab-Stain, a fabric stain remover available only in liquid form. The new product manager for Ab-Stain is Marcus, who has worked at Crocodile Cleansers for four years. He began his career at Crocodile as assistant product manager for Ab-Stain. When his old boss, the product manager, left the company, Marcus was very pleased to be offered the job.

Marcus faces a serious problem in his new position. Although Ab-Stain is superior to national brands as a stain remover for most types of stains, sales have been declining. After doing some market research, Marcus finds that customers are switching to national brands. They are switching not because of the superior cleaning ability of the national brands but because these brands are available in aerosol sprays. Consumers find the aerosol sprays much easier to apply and less messy than Ab-Stain, which tends to spill into areas of the fabric other than the stained area.

Marcus realizes that an option is an aerosol spray version of Ab-Stain. After a short discussion with Research and Development, Marcus finds that the propellant necessary to make an aerosol spray for Ab-Stain would contribute to the creation of ozone in the lower levels of the earth’s atmosphere. During periods of extreme heat and stagnant air, ozone levels rise. Ozone irritates the respiratory system and can cause respiratory diseases. During periods of high ozone, ozone alerts are issued. At these times, people in the area are asked to avoid heavy exertion outdoors--especially the young, the elderly, and those with respiratory problems such as asthma.

Because of these concerns, Marcus decides to do a study testing consumer attitudes about two new dispensers--an aerosol, and a pump which does not contain the propellant--and compare consumer reactions to their attitudes towards the original liquid. He hopes that the pump is as acceptable as the aerosol. To his disappointment, consumers rate the pump significantly better than the liquid, but not as favorably as the aerosol.

Han is faced with the difficult task of deciding whether to offer the environmentally damaging aerosol version of Ab-Stain, or to switch to the pump. His projections shows that while the aerosol will be more profitable than the pump, a pump version of Ab-Stain would nevertheless be profitable for the company. He knows he cannot appeal to consumers’ concern for the environment or health. If his target market were really concerned, they would not be switching to aerosol products offered by competitors.

Author: Judy Cohen, Assistant Professor of Marketing, Rider College

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