Whole Foods Market, Inc.: Damage Control Over Product Mislabeling

Author
Koehler, D.
Region
North America
Topic
Strategy & General Management
Marketing & Sales
Length
19 pages
Keywords
Brand Management
brand
crisis management
Food and Beverage
retail
management
Copyright Holder
Notre Dame
Student Price
$4.00
Target Audience
Graduate Students
Undergraduate Students

On June 25, 2015, Whole Foods Market finds itself embroiled in controversy when the New York Department of Consumer Affairs releases a report alleging the company systematically overcharged on their store-packaged goods and inflated prices for the customer. This further damages the company’s reputation as a super-premium, overpriced retailer in the highly competitive organic food industry. 

Learning Outcomes
  1. To highlight the conflict that can arise when a company builds a reputation as being socially responsible and customer driven, but then gets caught overcharging customers when they come to the register.
  2. To demonstrate the importance of addressing customer affair allegations promptly and taking action not to repeat that problem at other locations.
  3. To encourage analysis of communication strategies to implement when public perception of a company is at an all-time low.
  4. To provide an example of how similar actions from different companies can have different effects on their brand image, depending on their value propositions.
  5. To facilitate a discussion regarding the level of responsibility businesses have to protect customers from mislabeled prices and keep shareholders informed.