PEPSI-COLA PRODUCTS PHILIPPINES INC.

1. PEPSI-COLA PRODUCTS PHILIPPINES INC. Kel 2 : Agung MS Reine Deborah E Hanibal Purwanto Dwi Yulianto

2. CASE – Background Sales have been running a distant 2nd to Coke

3. CASE – Pepsi 349 • Pepsi launched ‘Number Fever’ campaign in Feb.92. Numbers printed on the underside of cap and winning numbers announced each day • Prizes : 100 pesos – 1 M pesos • Ads in newspapers, radio, TV, saying ‘today you could be a millionaire’

4. CASE – VICTIMS Victoria Angelo, unemployed mother of 5, lives w/family in tin-roofed shack in Manila Husband: Juanito, earns US$4/ day began drinking pepsi, every meal, snack each day prayed to get winning number gather around small TV w/neighbors to see May25, #349 flashed winner

5. CASE • ‘WE ARE A MILLIONAIRE’ • to children ‘you can finish school and go to college’ • to husband ‘you can buy passenger jeep’ • to self ‘we can buy a real house’ … a dream come true … • unfortunately, Pepsi realized mistake, thousands of people were demanding payment • realizing the mistake could cost Billions of $ • Pepsi refused to pay

6. CASE – Pepsi 349 Riots broke out, Pepsi delivery trucks were stoned, torched, overturned homemade bombs were thrown at Pepsi plants and offices in one case, fragmentation grenade tossed at a parked Pepsi truck bounced off truck killed 5 year old girl, schoolteacher and wounded others

7. CASE – Pepsi 349 • The violence frightened the company officials and they offered then 500 pesos to the winners • More than 480,000 winners claimed the prize • The original promotion budget : $ 2 million for prizes • Pepsi had paid over $ 10 million in prizes • Violence resulted in 30 burned trucks, 6000 people filed civil suit for damages • 5000 criminal suits charging fraud (false advertising) • Pepsi claimed it was started by a ‘computer error’

8. Who are the stakeholders in the case? Stakeholders’ are generally the different people or groups of people who are affected by the situation or case. • The Customer • The Investor of Pepsi Co • The Government • The Supplier • The Employees • The Creditors • The Society

9. What priority rank do you give to each stakeholder? • The Customers • The Employees • The Creditors and Investors • The Supplier • The Society • The Government

10. Were any ethical norms or priciples violated? .Y.E.S. TRUST !!!! Likely the ethical principles violated have to do with trust that they would keep their word, (pay for winners) even if it weren’t profitable… Pepsi was making money by making these people believe that they might win a lot of money.

11. If ethical norms or principles were violated, who violated them? …PEPSI-COLA PHILIPPINES INC. who violated them…

12. Was Pepsi justified in not paying the full 1-million-pesos-prize? YES, PEPSI WAS • Pepsi delivery trucks were stoned, torched, or overturned. • Molotov cocktails and homemade bombs were thrown at Pepsi Plants and Offices. • Pepsi executives received many death threats.

13. What should Pepsi have done differently? When? • They needed to try to maintain the goodwill of their customers. The projected $ loss from loss in reputation may be worse than paying the prizes . • Simply from a business and ethical perspective, they should have done something very quickly to maintain the good will of their customers once they knew of their mistake.

14. Would the response of the people have been different in Europe? South America? Asia? Africa? • In Mind/Heart : will be same • In Action : will be different, subject to their background. www.pepsi349.com

15. Norma dan Etika

16. Norma dan Etika Bidang Pemasaran • Etika pemasaran dalam konteks produk: • Produk yang dibuat berguna dan dibutuhkan masyarakat. • Produk yang dibuat berpotensi ekonomi atau benefit • Produk yang dibuat bernilai tambah tinggi • Produk yang dapat memuaskan masyarakat • Etika pemasaran dalam konteks harga: • Harga diukur dengan kemampuan daya beli masyarakat. • Perusahaan mencari margin laba yang layak. • Harga dibebani cost produksi yang layak.

17. Etika pemasaran dalam konteks tempat / distribusi: • Barang dijamin keamanan dan keutuhannya. • Konsumen mendapat pelayanan cepat dan tepat. • Etika Pemasaran dalam konteks promosi : • Sebagai sarana menyampaikan informasi yang benar dan obyektif. • Sabagai sarana untuk membangun image positif. • Tidak ada unsur memanipulasi atau memberdaya konsumen. • Selalu berpedoman pada prinsip2 kejujuran. • Tidak mengecewakan konsumen.

18. Iklan dan Dimensi Etis • Iklan ialah bentuk komunikasi tidak langsung yg didasari pada informasi tentang keunggulan suatu produk sehingga mengubah pikiran konsumen untuk melakukan pembelian. • Fungsi Iklan: • Iklan sebagai pemberi informasi tentang produk yang ditawarkan di pasar. • Iklan sebagai pembentuk pendapat umum tentang sebuah produk.

19. Persoalan Etis Dalam Iklan • Iklan merongrong otonomi dan kebebasan manusia. • Iklan yang manipulatif dan persuasif non-rasional menjadikan manusia yang konsumtif. • Iklan merongrong rasa keadilan sosial dan memicu kesejanggan sosial.

20. Prinsip – prinsip Etis DalamIklan • Iklan tidak boleh menyampaikan informasi yang palsu dengan maksud memperdaya konsumen. • Iklan wajib menyampaikan semua informasi tentang produk yang diiklankan. • Iklan tidak boleh mengarah pada pemaksaan. • Iklan tidak boleh mengarah pada tindakan yang bertentangan dengan moralitas.

21. ..THANKS..