Harvard Case - Demarketing Soda in New York City
"Demarketing Soda in New York City" Harvard business case study is written by John A. Quelch, Margaret Rodriguez, Carin-Isabel Knoop, Christine Snively. It deals with the challenges in the field of Marketing. The case study is 23 page(s) long and it was first published on : Oct 17, 2013
At Fern Fort University, we recommend a strategic approach to 'demarketing' soda in New York City, focusing on a multi-pronged strategy that combines education, incentivization, and alternative product promotion. This strategy aims to reduce soda consumption while fostering a healthier lifestyle for New Yorkers.
2. Background
The case study focuses on the New York City Department of Health and Mental Hygiene's (DOHMH) efforts to curb soda consumption. The city's obesity rate, particularly among children, is a pressing concern, and soda consumption is a significant contributor. The DOHMH's proposed solution is a ban on the sale of sugary drinks larger than 16 ounces, a move that has generated considerable controversy.
The main protagonists are the DOHMH, who are trying to implement a public health policy, and the beverage industry, who are resisting the ban due to potential economic losses.
3. Analysis of the Case Study
To analyze this case, we can use a combination of frameworks:
a) PESTEL Analysis:
- Political: The ban is a politically charged issue, with strong opinions on both sides.
- Economic: The ban could have significant economic implications for the beverage industry, particularly for small businesses.
- Social: Public opinion is divided, with some supporting the ban for health reasons and others opposing it for individual choice and economic concerns.
- Technological: The ban is not technologically driven, but technology could play a role in promoting healthier alternatives and tracking consumption patterns.
- Environmental: While not directly related, the ban could indirectly impact the environment by reducing the production and disposal of sugary drinks.
- Legal: The legality of the ban is a key issue, with legal challenges likely to arise.
b) SWOT Analysis:
- Strengths: The DOHMH has a strong public health mandate and a dedicated team.
- Weaknesses: The ban is controversial and faces legal challenges.
- Opportunities: The ban can be a catalyst for promoting healthier alternatives and educating the public about sugar consumption.
- Threats: The beverage industry's lobbying efforts and potential legal challenges pose significant threats.
c) Marketing Analysis:
- Consumer Behavior: The case highlights the need to understand consumer behavior and the factors driving soda consumption.
- Target Markets: The DOHMH needs to identify specific target markets, such as children, low-income families, and communities with high obesity rates.
- Marketing Channels: The DOHMH needs to utilize multiple marketing channels to reach target audiences, including traditional media, social media, and community outreach.
- Marketing Communications: The DOHMH needs to develop effective marketing communications that are persuasive, informative, and engaging.
4. Recommendations
1. Education and Awareness Campaign:
- Target: The campaign should target all New Yorkers, with a specific focus on children and families.
- Content: The campaign should provide factual information about the health risks associated with excessive sugar consumption, highlighting the link between soda and obesity, diabetes, and other health problems.
- Channels: Utilize traditional media (TV, radio, print), social media, and community outreach programs to reach the target audience.
- Messaging: The messaging should be positive and empowering, focusing on making healthy choices and promoting alternative beverages.
2. Incentivize Healthy Choices:
- Offer discounts and promotions: Partner with retailers to offer discounts on healthier alternatives like water, unsweetened tea, and fruit juices.
- Promote healthy food options: Encourage restaurants and food vendors to offer healthier menu options and reduce the availability of sugary drinks.
- Reward healthy behavior: Implement programs that reward individuals for choosing healthier options, such as points systems or discounts.
3. Promote Alternative Products:
- Highlight the benefits of alternative beverages: Emphasize the taste, health benefits, and affordability of water, unsweetened tea, and fruit juices.
- Partner with beverage companies: Collaborate with companies that produce and market healthier alternatives to promote their products.
- Develop new healthy beverage options: Encourage innovation in the beverage industry to develop new, delicious, and healthy alternatives.
4. Utilize Digital Marketing Strategies:
- Social Media Campaigns: Engage with the public on social media platforms, using interactive content, influencer marketing, and targeted advertising to promote healthy choices.
- Mobile App Development: Create a mobile app that provides information on healthy beverage options, calorie trackers, and personalized recommendations.
- Data-Driven Marketing: Utilize data analytics to track the effectiveness of the campaign, identify target audiences, and optimize marketing efforts.
5. Engage with the Beverage Industry:
- Open dialogue: Engage in open communication with the beverage industry to explore potential solutions and address their concerns.
- Incentivize reformulation: Offer incentives to beverage companies to reduce sugar content in their products or develop healthier alternatives.
- Promote responsible marketing: Encourage the beverage industry to adopt responsible marketing practices that do not target children or promote unhealthy consumption.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies: The DOHMH's core competency is public health, and these recommendations align with this mission.
- External Customers: The recommendations address the needs of New Yorkers by promoting healthier choices and reducing the risks associated with excessive sugar consumption.
- Internal Clients: The recommendations provide the DOHMH with a framework for implementing a successful de-marketing strategy.
- Competitors: The recommendations acknowledge the role of the beverage industry and aim to engage them in a collaborative approach.
- Attractiveness: The recommendations are attractive because they offer a multi-pronged approach that is likely to be more effective than a simple ban.
6. Conclusion
By implementing a comprehensive de-marketing strategy that combines education, incentivization, and alternative product promotion, the DOHMH can effectively reduce soda consumption in New York City, promoting a healthier lifestyle for its residents. This approach is more likely to be successful than a simple ban, which faces legal challenges and public resistance.
7. Discussion
Other alternatives not selected include:
- A complete ban on soda sales: While this would effectively reduce consumption, it is likely to face legal challenges and public resistance.
- A tax on sugary drinks: This could discourage consumption but may disproportionately impact low-income communities.
Key assumptions of the recommendations include:
- Public willingness to change behavior: The success of the recommendations depends on the public's willingness to make healthier choices.
- Industry collaboration: The recommendations rely on the beverage industry's willingness to engage in a collaborative approach.
- Government support: The recommendations require government support to implement and enforce policies.
8. Next Steps
The DOHMH should:
- Develop a comprehensive de-marketing plan: This plan should outline the specific objectives, strategies, and tactics for each recommendation.
- Secure funding: The DOHMH needs to secure sufficient funding to implement the plan effectively.
- Engage with stakeholders: The DOHMH should engage with stakeholders, including the beverage industry, public health organizations, and community groups, to build consensus and support for the plan.
- Monitor and evaluate progress: The DOHMH should regularly monitor and evaluate the effectiveness of the plan, making adjustments as needed.
By taking these steps, the DOHMH can successfully implement a de-marketing strategy that reduces soda consumption and improves the health of New Yorkers.
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Case Description
In 2013, New York City Mayor Michael Bloomberg tried and failed to institute a ban on serving sizes of large sugary beverages. Obesity posed a large public health risk to the city. Mayor Bloomberg's proposed ban was one of many attempts to combat the rising threat of obesity. The case discusses the efficacy of the proposed ban on large soda serving sizes in the context of the other anti-obesity initiatives crafted by Bloomberg's administration.
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