MEMO

To: Corporate Social Responsibility Director

From: Abdulrahman AlMulhim

Date:

Subject: Increasing Sales of Dietary Drinks in Atlanta, GA

Obesity rates

The rate of obesity in the society is increasing at an alarming rate. About one-third of the American population has been found to be obese(Hales, 2014). It is then clear that the obesity has reached calamitous levels. Much has been said and written of the responsibility of the business and corporate world in amplifying the rate of obesity in the country(Ferrell & Fraedrich, 2012). Rigorous marketing campaigns have resulted in transforming the American society into an eating nation. The damage has already been done. There is then need to find solutions to this problem. At the current moment, campaigns for healthier lifestyles are gaining ground and support from a large percentage of the public. The increased demands for healthy food alternatives are a testament of increased awareness for healthy lifestyles.

In Atlanta, GA, the national trend is still visible. About 12% of people in this area have been found to be obese. Such figures speak of the necessity for change in the consumer market. The corporate world has a role to play in the reduction of obesity rates in the country. With this need in mind, increasing the sales of dietary drinks can address this problem. As such, this is the program that has been proposed with the intent of addressing the escalating rates of obesity in the country. Such a program is in line with the tenets of corporate social responsibility that have guided policies in the company.

Sales of dietary sodas is decreasing

Current market figures show that there is a decline in the sales of dietary sodas. There is no immediate explanation for this eventuality aside from the verity that there has been mediocre marketing of dietary sodas. By implementing flawed marketing campaigns of dietary sodas, it cannot be succesfully projected that the market will react favorably to the products. It then translates to mean that there has been an under-exploitation of the market for dietary sodas. In turn, the under-exploitation of this market might be culminated from an under-appreciation of the potency of this market in realizing sales and subsequently profit improvement.

The most potent approach for this scenario is to look at the situation in a positive light. Given that there is an under-exploitation of the market, it translates to mean that there is a void in the market that needs to be filled. In addition to this, Coca-cola can become the market leader in this segment. As has been mentioned herein, there is a trend towards much healthier lifestyles. Such a move also includes a shift from the traditional sodas to the dietary sodas. The shift towards healthier lifestyles is increasingly gaining support as the public begins to appreciate the need for healthier foods(Watson, 2014). As such, it is significantly probable that the market for dietary sodas. In line with this prediction, it is critical for a company to begin exploiting the market as soon as possible.

Increasing sales of the company

There is a gap in the market for dietary sodas. One of the rationales that might be postulated in a bid to explain this is the under-appreciation of the potency of this market. The competitors in the market have yet to appreciate the impact of the trend towards much healthier lifestyles. Coca-cola is one among the most powerful brands in the world. It can attract consumers of all ages. As such, it is highly probable that this power over the consumers will be present in the market segment. There has been increased competition in the soda market. As the supremacy of coca-cola continues to be threatened, there is aneed for diversification of the company’s interests. Exploiting the market for dietary sodas is a move that is in line with the goal of diversification.

The trend for healthier living is expected to gain momentum up to the foreseeable future(Hales, 2014). As such, this market is expected to grow up into the foreseeable future. As such, the potential for growth will continue to grow up into the foreseeable future. It has to be understood that this market has exponential potential. By meeting the demands of this market, the overall sales volumes of the company will increase by a substantial margin.

Psychological factors at play

The market for dietary sodas is dependent on some psychological factors(Finkelstein & Zuckerman, 2010). As such, the success of this market is dependent on the potency of these factors.  Consumers have to believe that consumption of a particular brand of dietary sodas can aid in realizing the goal of healthier living(Dawes, 2014). As such, by exploiting such psychological factors, the company will enhance its potential for being leader in this market. Unlike in other market segments, this market segment is motivated purely by the healthy nature of the product they are consuming. It has to be pointed out that coca-cola has been cited as being among the companies responsible for the ever expanding waistline of its consumers. As such, there is aneed to give additional focus to the healthy nature of its products.

Increasing Sales of Dietary Drinks

By increasing the sales of dietary drinks, the company will be playing a critical role in addressing the problem of obesity in the market. As such, this goal will be in line with the tenets of corporate social responsibility. It is the obligation of the corporate world to ensure that they have the best interests of their consumers at heart. As such, this duty ought to guide policy creating and implementation. Aside from the potential of increased sales, increasing the sales of dietary drinks, also aids in the promotion of healthier lifestyle alternatives by the consumers. In availing this opportunity for ahealthier lifestyle, the company will be catering for the needs of the consumers who wish to switch to much healthier lifestyles.

Cost of the proposed program

The proposed program entails increasing the sales of dietary drinks. As such, the program will necessitate the need for expansion of the company’s product line. The dietary products will be marketed and distributed alongside the other products. In using the same distribution lines that are used for the other products, the company will be able to reduce the overall costs of distributing the dietary drinks. At the current moment, coca-cola already has a line of dietary drinks. However, the company is yet to exploit the potential of this market fully. As such, there will be no cost associated with product development. Simply put, the proposed program calls for additional focus on the market of dietary drinks. With this being said, the cost of the program has been set at low.

References

Dawes, L. (2014). Childhood Obesity in America. New York: Harvard University Press.

Ferrell, O. C., & Fraedrich, J. (2012). Business Ethics: Ethical Decision Making & Cases. Boston: Cengage Learning.

Finkelstein, E. A., & Zuckerman, L. (2010). The Fattening of America: How The Economy Makes Us Fat, If It Matters, and What To Do About It. New Jersey: John Wiley & Sons.

Hales, D. (2014). An Invitation to Health. Boston: Cengage Learning.

Watson, R. R. (2014). Nutrition in the Prevention and Treatment of Abdominal Obesity. New York: Elsevier.

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