CASE 9

THIRST FIRST BOTTLING COMPANY: S.O.S.

Competition in the soft drinks industry is very intense that every means to improve a company’s sales
position is explored. Advertising and promotional efforts are heavily relied upon by Thirst First Bottling
Company to drum up customers’ interest in the company’s products.

The company is engaged in the production and marketing of soft drinks. It operates plants, warehouses
and sales offices throughout the Philippines. The company has been serving the Philippine market for
more than 50 years.

The manager in charge of advertising and promotion is Mr. Rolando Calanday, a graduate of a marketing
course in the College of the Immaculate Conception in Cabanatuan City. The advertising and promotion
unit coordinates with advertising firms in the design and production of advertising materials like
billboards, posters, and streamers. The unit often produces t-shirts printed with advertising messages
which are used as promotional items. The company spends more than P20 million annually for the
purpose.

Periodically, the ad and promo unit sends the advertising and promotional materials to managers of the
various sales offices of the company.

The managers, in turn, hand over the materials to their respective sales teams for proper disposal. The
drivers of the delivery trucks with the assistance of helpers are directed to install the billboards and
streamers on appropriate places and paste the posters in conspicuous corners of retail establishments.

At the beginning, the drivers appropriate for themselves a small portion of the advertisement and
promotional materials. Some of the billboards are used as partitions in the houses of the drivers. The
posters are used to reinforce the walls. The t-shirts are not handed over to customers but to family
members and friends. The materials are clearly not used as intended but nobody in the sales offices
questions the practice or even care to know.

One day, the general manager of the company, Mr. Marcelino de Vega, received a letter from a concerned
employee reporting the unethical practice. Immediately the general manager called Mr. Calanday and
inquired on how he was getting about his responsibility of promoting the company’s products. Mr.
Calanday’s reply did not satisfy the general manager.

On the same day, Mr. Calanday received an order from the general manager to clear up the problem
regarding the unethical practice or he will be replaced as head of his unit.