Nestlé the infant formula controversy

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Milena Leguizamon

Health & Medicine Business

Nestlé: The Infant Formula
Controversy
Marketing International
Milena Leguizamón
Lorena Perilla
Caterine Ladino

IMPORTANT ASPECTS OF CASE
INTRODUCTION
 For over 20 years, Nestlé has been
directly or indirectly charged with
involvement in the death of Third World
infants.
 Accused Nestlé of unethical and
immoral behavior.
 According to UNICEF, every year 1.5
million babies die fed milk powder.
THE CHARGES
 Focus on the issue of whether
advertising and marketing of such
products have discouraged breast
feeding among Third World mothers
and have led to misuse of the products,
thus contributing to infant malnutrition
and death.
 Irresponsible Promotion milk powder
detriment of breast milk.

THE DEFENSE
 Nestlé argues that the company has never
advocated bottle feeding instead of breast
feeding.
 The real nutritional problem in the Third World
is not whether to give infants breast milk or
formula but how to supplement mothers’ milk
with nutritionally adequate foods when they
are needed.
NESTLÉ POLICIES
The most important are…
 No advertising to the general public.
 No sampling to mothers.
 No use of commission/bonus for sales.
 No use of infant pictures on labels.
 No point-of-sale advertising.
 No financial or material inducements to
promote products.
IMPORTANT ASPECTS OF CASE

THE NEW TWISTS
A new environmental
factor has made the entire
case more complex: As of
2001 it was believed that
some 3.8 million children
around the world had
contracted the human
immunodeficiency virus
(HIV) at their mothers’
breasts.
IMPORTANT ASPECTS OF CASE

QUESTIONS
Subtítulo de la diapositiva
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1 Key Concept –
The International Marketing Task
• Foreign
Environment
• Cultural
Forces
• Geography
and
Infrastructure
Aspects of
the foreign
environment

Unconscious reference to one’s own
cultural values, experiences, and
knowledge as a basis for decisions
2 Key Concept –
Self – Reference Criterion and Ethnocentrism

3 Key Concept –
Marketing Mix
Product Promotion
Place Price

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2 MARKETING PROPOSAL Nicola Werner Marketing Proposal: Nestle Nicola Werner Marketing Research March 2, 2020 MARKETING PROPOSAL Company Background The company that is selected for formulating the marketing proposal is Nestle. Nestle is a multinational corporation with its headquarters based in Switzerland. Nestle is the largest food company as per its revenue in the world. The origins of the company date back to the year 1860 when two Swiss companies merged to form Nestle. In the next decade, Nestle started to expand all over the United States and Europe (Mowbray, 2018). The company marked its expansion mainly during World War I and World War II by expanding is product categories from infant formulas and condensed milk to various other products. The products of the company include bottled water, breakfast products such as cereals, tea, medical food products and baby food, frozen products, animal food and dairy products. For the marketing proposal, the product category of baby food would be discussed. Nestlé’s mission statement is “Good Food, Good Life” which is a promissory statement that ensures the people for enhancing their lives through food beverages and food products. Nestle has 447 factories all around the world operational in 189 nations (Mowbray, 2018). Problem Statement The problem statement is, “Boycott of Nestle infant formula and other baby products around the world as the company involved itself in exaggerated marketing and failed to communicate the use of breast milk substitute product which led to the deaths of many infants.” Background: The company has been a target of various controversies, however, there is a rising question mark on the breast milk substitute formula of infant milk. The company has been accused by different customers for violating the ethical practices as they manipulated its customer regarding the baby milk formulas (Krasny, 2012). There are critics about the company's alternatives to breastfeeding and many countries boycotted from the product. Many leading organizations all around the globe boycotted from the products of Nestle because of its false marketing in developing countries. There are certain codes of practices that are described by the World Health Organization to be followed for marketing practices which were not followed by Nestle. It can be seen that the company was a victim of many controversies thus this marketing proposal will research further on the controversies to evaluate the problem in more depth. Up until the late 1970s, Nestlé started to draw worldwide controversy because of its advertising practices for baby milk, particularly those in developing nations. Public outcry culminated with the 1977 Nestle boycott that is still in place today. Following were the issues that resulted in the problem to be a controversy: · Labelled in developing nations with "Baby Killer ' in 1970. · Nestlé marketed yet still promotes the product as a risk-free supplement to breastmilk. · In po.

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