Scenario B: A vitamin company, Pro Health (PH), was preparing to launch a new product called "ProBio." It produced 20,000 units of ProBio at a cost of $5 per unit and packaged the product in bottles with labels that prominently displayed the ProBio name. At the last minute, PH learned that an established drug company was already selling a product named ProBio. FDA regulations prohibit drugs with identical names from being sold on the market, with the penalty for noncompliance being a full product recall. Rather than face product recall and all the attendant costs, PH decided to comply with the regulation voluntarily. As a result, the product had to be renamed and rebranded; the label had to be redesigned, remanufactured, and reapplied; and a new advertising campaign had to be formulated and launched.

1. How does this FDA regulation protect consumers?
2. Why did the company voluntarily change its product name?
3. What effect did this regulation have on the company and on consumers?

Question

Scenario B: A vitamin company, Pro Health (PH), was preparing to launch a new product called "ProBio." It produced 20,000 units of ProBio at a cost of $5 per unit and packaged the product in bottles with labels that prominently displayed the ProBio name. At the last minute, PH learned that an established drug company was already selling a product named ProBio. FDA regulations prohibit drugs with identical names from being sold on the market, with the penalty for noncompliance being a full product recall. Rather than face product recall and all the attendant costs, PH decided to comply with the regulation voluntarily. As a result, the product had to be renamed and rebranded; the label had to be redesigned, remanufactured, and reapplied; and a new advertising campaign had to be formulated and launched.

1. How does this FDA regulation protect consumers?
2. Why did the company voluntarily change its product name?
3. What effect did this regulation have on the company and on consumers?

zarkam21 · Answer

@Shadow

Vocaloid · Answer

1. "FDA regulations prohibit drugs with identical names from being sold on the market"

how might that protect customers?

zarkam21 · Answer

This protects consumers because they will not get confused and buy a product that they dont really need?

Vocaloid · Answer

perfect

zarkam21 · Answer

From the scenarion, we can see that the "FDA regulations prohibit drugs with identical names from being sold on the market." This will overall protect consumers because they will not get confused from the identical names of the products. If there are identical names, the consumer may buy something that can be dangerous to their health.

Vocaloid · Answer

well done

Vocaloid · Answer

any attempts on #2 yet? "Rather than face product recall and all the attendant costs, PH decided to comply with the regulation voluntarily" is the key for this one

zarkam21 · Answer

The company voluntarily changed its products name because if they didn't they might have been blessed to face product recall and all the attendant costs so it was best for them to comply with the regulation rules voluntarily versus being forced to. Another reason why the company might have voluntarily changed the product name was to promote their product individually. With a new name that has never been heard before, the promotion of the product would be greater versus if it has a similar name that somebody heard. It is a way to endorse.

Vocaloid · Answer

awesome

i'm not sure if "blessed to face product recall" is the right word, should it be "forced to face"

Vocaloid · Answer

any attempts on #3 yet? the effect on the company is explicitly stated, the effect on customers might require a bit of out of the box thinking

zarkam21 · Answer

This regulation had many affects on the company as well as on consumers. For the company, an entire redo had to take place regarding the product. Quoted from the scenario, "the product had to be renamed and rebranded; the label had to be redesigned, remanufactured, and reapplied; and a new advertising campaign had to be formulated and launched." In simpler terms, everything had to be redone and rethought out, even the simplest details such as the label. Consumers also were affected.

zarkam21 · Answer

im having trouble with the consumer part.

Vocaloid · Answer

positive effects on customers: they were protected against accidentally buying the wrong product
negative effects: they have to learn the new brand and get used to the new marketing/packaging, etc.

zarkam21 · Answer

This regulation had many affects on the company as well as on consumers. For the company, an entire redo had to take place regarding the product. Quoted from the scenario, "the product had to be renamed and rebranded; the label had to be redesigned, remanufactured, and reapplied; and a new advertising campaign had to be formulated and launched." In simpler terms, everything had to be redone and rethought out, even the simplest details such as the label. Consumers also were affected but in a positive and negative manner. Positively, as a result of this change, consumers were protected against accidentally buying the wrong product which is highly dangerous. However, because of this modification, consumers will have to get used to this product. They will have to learn the new brand and get used to the new marketing/packaging.

Vocaloid · Answer

awesome