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