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SALAM SEHATI SEJIWA

GM Foods : Supermarkets versus the Regulators

In 1999 there was yet another food scare,

but this time with implications for retailers,

producers, consumers and regulators.

Strains of soya, tomatoes and even tobacco had

been genetically modified to exaggerate their

proliferation and ability to ward off diseases and

pests.

This further instance of natural farming techniques

being artificially aided caused great concern.

Despite government assurances, a NOP

opinion poll claimed:

a) Half of the general public was concerned

about eating genetically modified food

b) 88% was aware of GM foods

c) 60% worried about eating them

SUPERMARKETS

Promised to seek assurances from suppliers

about the content of GM ingredients in

products delivered to them.

The supermarkets‘ initial responses were varied:o Iceland : “We are unsure of the long-term effects of GM foods“.

o Somerfield : “Until the EU addresses the issue there is not a lot we

can do“.

o Sainsbury‘s : “We are looking hard to find alternatives but have to

look at the long term“.

o Tesco : “Customer calls peak every time there is media interest“.

o Asda : “The food has been passed as safe by the government...we are

taking a responsible approach“.

RETAILERS

Intended to provide better labeling to enable their

customers to make their own choice about whether to buy

GM-modified foods.

REGULATORS

Those with political control had deemed GM food safe to

consume.

Many MP’s calling for a moratorium on the sale of GM foods

pending further safety tasting.

Prime Minister Tony Blair stated he was happy to eat GM foods,

and the government did promise additional research funding.

The difficulty for the supermarkets was that

government passed the GM products as safe

for consumption despite growing consumer

fears.

Actions taken by the supermarket groups:o Tesco and Safeway had already clearly labelled GM modified

lines.

o Sainsbury’s set up a dedicated hotline to help address

consumers’ queries and fears.

o Iceland immediately banned GM ingredients from its own

label lines, but still stocking manufacturer brands containing

GM ingredients, notably soya-based lines.

The remaining supermarkets in conjunction with the British

Retail Consortium put pressure on the government to

make decisions about GM foods.

Somerfield had lobbied the US government since 1997 and

in 1999 switched to pressurizing the British government

and EU regulators.

Ultimately, most supermarket managements were forced,

by consumer pressure, to remove GM-modified ingredients

from their own label lines and de-stock manufacturer

proprietary brands which failed to remove GM-modified

ingredients.

QUESTION 1 : What would an ethical marketing policy have been under these circumstances?

Here comes your footer

There should be rules for the transparent sharing of relevant information and the communication of associated risk regarding GM foods.

This is to make sure the consumers know what the consuming and are able to make informed decisions.


The foundation of consumers concern about GM foods is food safety.

Because of the recent health scare in beef production, consumers become wary of the safety of foods produced with new technologies.

Therefore the regulators should give consumer opportunities in the debate concerning GM food related decisions.


QUESTION 2 : How could supermarketers have behaved in a socially responsible manner?

Produce good products and services by utilizing scares resources to satisfy customers needs.

To become successful, they should contributed positively to the societies welfare objective.

Companies should be sensitive's for the expectation of costumers with respect to the social issued and to the environment. ( P. Kolter, 2003:8 )

This might result, from costumers royalty, better employee morale and motivation, or public policy favoring ethical conduct.

Product at high quality and reasonable prices.


Boxman on the Internet

Marketers all over the world are turning to the Internet.

According to American investment bank Morgan Stanley, in

the next 5 years or so, approximately 5% of world retail

trade and 11% of business-to-business transaction will be

conducted online.

The best Internet selling opportunities areas:

a) Financial services

b) Travel

c) Books and software

d) Video and music products

Music retail company which plans to capitalize on Internet selling properties

Aim : to sell more music to more people, faster, cheaper and more conveniently through the Internet.

Sees the internet as means for reaching a mass market, through mass communications to sell mass products.

Hopes to be able to satisfy the needs of consumers with a diverse mix of musical tastes.

Simplicity Easy to navigate and simple to use.

Speed Use of the site and receipt of the music is high speed.

Ease of use Easily accessible and communicates effectively even for inexperienced Internet user.

Value Saves money because of no distribution cost.

Security • Security in the sophisticated payment system.• Short time delivery.

Real added value Offers access to a diverse mix of music at competitive prices.

QUESTION 1 : What is direct marketing? How can it be used to sell products such as those supplied by Boxman?

QUESTION 2 : How is the Internet altering the sales and marketing approaches of many businesses?

McDonald‘s Controls

Established in 1940 by Dick and Mac McDonald in San

Bernadino, California.

Ray Kroc then bought the right to develop the brand in 1955

and created McDonald‘s Corporation and the famous golden

arches.

Serves over 38 million people, including in UK where the

company enjoys 75% share of the hamburger market.

Nearest rival Burger King, can only manage 15%.

There are 23 000 McDonald‘s restaurants in 110 countries

producing sales of close to £23billion.

Ranked by leading brand consultancy Interbrand as the

most recognized brand in the world.

The menus change slightly to reflect local tastes, but there

is consistency in the product the world over.

Internal marketing programmes still ensure staff grasp the

fundamentals of the McDonald‘s trading concept and

ideals.

Controls are central to the trading practices of the

company because 70% of McDonald‘s restaurant are

franchised to independently owned companies and

operators.

McDonald‘s promotes the whole restaurant experience and

establishes performance standards to maintain a

consistent customer offer.

QUESTION 1 : Why is it important for McDonald’s to have tight operational and marketing controls?

Manage 38 million daily customer

Maintain 23,000 McD Restaurant – 110 Countries, sales Pound 25 billion

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

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Marketing is an organizational function and a set of processes for creating,

communicating, and delivering value to customers and for managing

customer relationships in ways that benefit the organization and its

stakeholders.

Consumer markets Business markets Global markets


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Demographic

Economic

Socio-cultural

NaturalTechnologic

al


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Production

Product

Selling

Marketing

QUESTION 2 : Why is internal marketing so important to McDonald’s?

Internal marketing is the task of hiring, training, and motivating able

employees who want to serve customers well.


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Processes

People

Programs

Performance

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Documents

gmmodified foods

gm products

gmmodified ingredients

sale of gm foods

gm food safe

content of gm ingredients

labelled gm modified

longterm effects of