Dannon has been in a predicament for some time due to the unethical marketing approaches and, as a team, we must resolve the issue. Dannon’s national marketing campaigns stated that an everyday portion of its product Activia is supposed to treat temporary discomfort and aid in “slow intestinal transit time” (Federal Trade Commission, 2010, para.2). DanActive, according to the commercials, helped prevent the common cold and the flu (Federal Trade Commission, 2010). It was additionally claimed that there was medical evidence to support these claims in broadcast, Internet, newspaper, and packaging design advertisements (Federal Trade Commission, 2010). The FTC claimed that Dannon’s advertisements were misleading because they lacked evidence to support their assertions as part of its continuous efforts to ensure that advertisers do not exaggerate the health advantages of their goods (Federal Trade Commission, 2010). Consequently, Dannon lost its case in court and had to pay millions of dollars to the victims.
When it comes to the external marketing communication strategy for addressing the crisis at hand, we must first make a statement on social media platforms. When the scandal of the company permeates the entire nation, the reputation of the firm might be at risk, and it is vital to make a statement that would make the situation clear, bring apologies to those who suffered, and make promises that the company’s practices will be adjusted (Al-Zyoud, 2018). Additionally, as a team, we will need a crisis plan for such situations when the efforts of the marketing department are applied.
Finally, as for a strategy to facilitate internal change within the organization, we will need to ensure full transparency between the firm and the customers. The reason behind the scandal becoming among the biggest moments of defrauding is that the company was driven by the motive to increase its revenue and customer base. As a result, the product costs more than its market competitors, with little to no difference in the product quality, aside from marketing strategies that deceive the customers (Tamimi & Sebastianelli, 2017). If we choose to provide more transparency, Dannon will be susceptible to less risk and better respect and customer loyalty.
References
Al-Zyoud, M. F. (2018). Social media marketing, functional branding strategy and intentional branding. Problems and Perspectives in Management, 16(3), 102-116. Web.
Federal Trade Commission. (n.d.). Dannon agrees to drop exaggerated health claims for Activia yogurt and DanActive dairy drink. Web.
Tamimi, N., & Sebastianelli, R. (2017). Transparency among S&P 500 companies: An analysis of ESG disclosure scores. Management Decision, 55(8), 1660-1680. Web.