Rain City Crunch Case Analysis Essay
This memo is in response to the recent discovery that one of Rain City Crunch’s key ingredients contains gluten. The team finds this discovery alarming because the integrity of the product’s ingredients is one of the company’s main competitive advantages. On the company website, multiple pages assure consumers that the ingredients used in Rain City Crunch are gluten-free and that Sisters Baking Company’s entire production facility is gluten-free. Customers that suffer from Celiac Disease, a disease that makes someone unable to digest gluten, are at high-risk of damaging the brand’s reputation because of this discovery. Consumers strongly associate Rain City Crunch as a great tasting snack that is also all-natural. The premium that consumers pay for Rain City Crunch over other snacks rests on the natural-appeal of the product. If the product suddenly contains gluten, then sales will be negatively impacted because consumers will lose trust in the company. The team came up with the following recommendations since this issue goes …show more content…
After getting the product back up to standard, the company needs to produce third-party tests to verify that the product is gluten-free. Issuing a public statement with these results will control the narrative and let consumers know that Rain City Crunch cares deeply about quality control. The public statement will also keep consumers’ trust. The message needs to center on how this is a cross-contamination accident rather than an intentional lie. Using platforms like the company Facebook and Instagram accounts in tandem with YouTube videos will let SBC achieve this in a cost-effective way. The public statements can also provide methods of restitution for affected customers (e.g. “Customers affected by any bags containing gluten can email a proof of purchase to orders@sistersbaking.com and get fully reimbursed”). Requiring effort on the consumers’ end will help mitigate the amount of restitution SBC will
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