Nestle - The Infant Formula Controversy (case study)
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Transcript of Nestle - The Infant Formula Controversy (case study)
Nestlé: The Infant Formula Controversy Vannessa Yung Aris ChriseasAslan Maleki Aram Steenbergen
International Marketing – Fall 2014University of Oklahoma – Norman
3 September 2014
Page 2
International Diversity
Page 3
Who or What is Nestle
Page 4
1
Charges: Nestle (MNO) is marketing infant formula to developing countries in which misuse is leading to unhealthy results
Resolution: Nestle started educating consumers. WHO got involved and the INBC made their points of difference.
Nestle Supports WHO code: Nestle addressed global concern and kept consulting with UNICEF and WHO
New Policies: NO Sampling, NO mother craft workers, NO Point-of-sale advertising, & NO infant pictures on labels
Defense: Nestle is just simply offering an alternative for those mothers that can’t provide adequate nutrition
The New Twist
23456
SCENE
Summary & Highlights
ChallengesAnswers to
Case Questions
Conclusions
Summary and Highlights
Page 5
1
2
34
Attempting to change
culture
Hard MarketingBackfires
Health Risk Problems
Challenges Nestle experienced
1974 2008
Summary & Highlights
ChallengesAnswers to
Case Questions
Conclusions
Page 6
Question #2:
What could Nestlé have done to have avoided the accusations of “killing Third World babies” and still market
its product?
Summary & Highlights
ChallengesAnswers to
Case Questions
Conclusions
AnswerStarting a women educational based program rather than a hard sale tactic.
Give out free services to teach the new markets on how to use the product, instead of free samples
Specifically market the product, and not “down selling” the effects of generally breastfeeding
Page 7
Question #3:
After Nestlé’s experience, how do you suggest it, or anyother company, can protect itself in the future?
Summary & Highlights
ChallengesAnswers to
Case Questions
Conclusions
Answer
Companies that produce, market, and sell infant formula should be more proactive when it comes to researching where their products will be distributed and marketed
They should study the social and medical effects of their products and services
Companies should also provide education of the importance of proper infant feeding and the use of their products and services
Page 8
Question #5:
What advice would you give to Nestlé now in light of thenew problem of HIV infection being spread via mothers’
milk?
Summary & Highlights
ChallengesAnswers to
Case Questions
Conclusions
AnswerPromote breastfeeding as the healthy thing to do Encourage HIV testing
Try to get mothers to make sure there are no wounds in baby’s mouth and the mother’s breasts to cut down the transmission rate of HIV
Getting the other countries to do what Thailand is doing, showing that getting baby powder is the right and responsible thing to do if you have HIV
Page 9
Summary & Highlights
ChallengesAnswers to
Case Questions
Conclusions
An investment in knowledge pays
the best interest.
–
Benjamin Franklin