This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
3/14/2005
Kraft CEO Is "Living Proof" That An All Kraft's Food Diet Works
Kraft Food's CEO Roger Deromedi came forward today stating that the South Beach Diet actually works and he is "living proof". Kraft has recently launched a new South Beach Diet brand of foods that focuses on eating the "right type of carbs" and eating lean protein; it is considered a modified version of the faddish Atkins Diet. Deromedi claims he has lost 12 pounds since Christmas and credits Kraft's new food line for his success. At first, I thought this was a rather shameless publicity stunt for their CEO to get the word out about the new product line, but I've changed my mind. If it works for him and he can personally show the diet's benefits, that's all the more reason for other dieter's out there to give it a shot.
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2 comments:
C'mon Jacques - even if it convinced you, it's still probably a "shameless publicity stunt". ;)>
But, it might be deeper than that too. Celebrity endorsements are a way for firms to overcome adverse selection - it sends a signal that the product is so good that the firm will pay extra to support it. It wouldn't seem like a CEO can make that pitch effectively, but that's exactly what Lee Iacocca and Victor Kiam did (although this sort of advertisement is a bit out of style currently - thus the old examples).
Im less interested in hearing about Deromedi's diet and more interested in hearing how he will address problems with international distribution.
Over the last year or so it has become a nightmare to get Kraft products overseas.
Just a view from over here ;-)
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