marketing case

Project Description:

ali is the product manager of shamas brand of potato chips. recent shortage of potatoes in the region has caused the price of potatoes to rise. consequently shamas’s profit margins are falling and therefore ali is thinking about increasing the price of potato chips packs. however consumers in the snack industry are price sensitive and any increase in the price will be detected by the consumers and could result in lower sales for the company. ali’s colleague, rami, suggests that they should slightly reduce the amount of potato chips in a pack. rami mentions that most customers do not check the exact weight of the pack and therefore this change will not be detected by the consumers. for example a pack of 200 grams would be reduced to 180 grams. rami goes on to say that the pack will be labeled as containing 180 grams and therefore they will not be cheating the customers. rami also stated that such a practice is not illegal. rami mentions that this way company will not lose money and the workers get to keep their jobs. rami also adds that this action does not compromise the quality of the product. ali is not sure what to do?
please help ali in making a decision by giving your views about:
1.  what ethical dilemma (or problems) is ali facing?
2.  what issues does ali have to deal with in this dilemma?
3.  which alternative(s) or solutions should ali select?
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Project Stats:

Price Type: Negotiable

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