American Apparel
G. Heileman Brewing Company (A): Power Failure at PowerMaster
It is difficult for companies in these regulated markets to boost revenues by differentiating their products and marketing efforts since the public and external governing bodies constantly monitor them. This is why it’s important for companies to maximize transparency and comply with industry standards when making efforts to differentiate.
For example, Canandaigua Wine Company received major scrutiny for packaging their product “Cisco”, which was a 20% alcohol fortified wine, as though it was a 5% cooler. After many activist groups attacked CWC for their use of deceptive packaging, they were forced to redesign their bottles and add large warning labels to increase transparency of their product offering.
It is very difficult for companies in highly regulated industries to market their products ethically, but as proven in the case, it is ethical companies that get ahead. For example, companies like Olde English and Schiltz Red Bull both released malt liquor beer with a slogan implying high alcohol percentage (“It’s the Power” and “The real power”) and weren’t investigated, while Heilman Brewing Co. utilized the same strategy but was forced to cancel distribution of their product. Why was this? Heileman drew great attention to themselves by initially targeting vulnerable consumers. It was because of this initial negative attention that many agencies began investigation on their brand and they received the negative results that they did.
It is important that companies that sell “unhealthy” products be as transparent as possible to avoid deceiving or lying to consumers. This includes providing warning labels, side effects etc. in their advertisement. Additionally, companies should only target capable and knowledgeable consumers- avoiding targeting children, tweens, teens, older consumers or market illiterates. In most regulated industries, the products that companies offer are inherently bad for
It is difficult for companies in these regulated markets to boost revenues by differentiating their products and marketing efforts since the public and external governing bodies constantly monitor them. This is why it’s important for companies to maximize transparency and comply with industry standards when making efforts to differentiate.
For example, Canandaigua Wine Company received major scrutiny for packaging their product “Cisco”, which was a 20% alcohol fortified wine, as though it was a 5% cooler. After many activist groups attacked CWC for their use of deceptive packaging, they were forced to redesign their bottles and add large warning labels to increase transparency of their product offering.
It is very difficult for companies in highly regulated industries to market their products ethically, but as proven in the case, it is ethical companies that get ahead. For example, companies like Olde English and Schiltz Red Bull both released malt liquor beer with a slogan implying high alcohol percentage (“It’s the Power” and “The real power”) and weren’t investigated, while Heilman Brewing Co. utilized the same strategy but was forced to cancel distribution of their product. Why was this? Heileman drew great attention to themselves by initially targeting vulnerable consumers. It was because of this initial negative attention that many agencies began investigation on their brand and they received the negative results that they did.
It is important that companies that sell “unhealthy” products be as transparent as possible to avoid deceiving or lying to consumers. This includes providing warning labels, side effects etc. in their advertisement. Additionally, companies should only target capable and knowledgeable consumers- avoiding targeting children, tweens, teens, older consumers or market illiterates. In most regulated industries, the products that companies offer are inherently bad for