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Nestl is a Swiss transnational food and drink company headquartered in Vevey, Vaud,
Switzerland. It has been the largest food company in the world, measured by revenues
and other metrics, for 2014, 2015, and 2016. Nestl. (2017, April 18) Nestl was the
victim of the lack of education of mothers regarding the use of infant formula milk and
bottle feeding for which the company ultimately earned a bad name. Most of the poor
women in the Third World often have dietary deficiency and being dependent on Nestle
prominently played an important role in the decline of breast feeding in Third World.
Hence, Nestle used native weaning of foods on babies causin g an inevitable damage to the
In this situation, companies like Nestl can take many necessary steps to manage their
brand. First of all, they can provide adequate education towards Third World consumer.
The education will focus on the essence of breast feeding and the way Nestl can
supplement the diet of a children at young age. Also, they can stand against giving up
breast feeding in all their promotion and advertisement. Secondly, Nestl can suspend its
consumers advertising and direct sampling for mothers throughout the World. Thirdly,
Nestl can find a way to become involved with organization to help the baby in various
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Nestle: The Infant Formula Controversy
ways or can send donations as a PR activity. Fourthly, they should be cautious about their
pricing strategy and make sure they are selling their products in third world countries for
reasonable and affordable prices for the people and they should consider selling the
products for even less in these places. Fifthly, Nestl also needs to learn from its mistakes
and not be neglected and they should respond to issues in a reasonable amount of time,
because when they do not, they look irresponsible and careless. Overall, they should
consider about their brand image and reposition itself as a force of good.
These situations can be very critical for a company and for which the internal Nestl
instructions should be kept to the Nestl employees only. Finally, companies should put
all their efforts on social responsibility by sponsoring events at international medical and
nutrition conferences, and events like celebrating the Vietnam year of the Family and
2. What could Nestl have done to have avoided the accusations of killing Third
In third world countries, mothers deem Nestl more 'fashionable' or healthier than breast
milk due to the intense advertisement of Nestl. After taking the formula, babies growth
rates began to drop and malnourishment and sickness started to occur. As a result, Nestl
Nestle could tackle this problem by finding out the causes of the problem. First of all,
they could ban all their media advertising in all the channels including radio and
television. Then, they could develop health education programs promoting breast feeding.
Thirdly, they could support the WHO code and use media to show their integrity. In
addition, they could distribute free formula in hospital and maternity wards. Overall, the
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Nestle: The Infant Formula Controversy
problem with Nestl was misunderstanding the culture of a country. To avoid the
accusation, they should learn about the countries culture they market. As for instance,
women in the Third World in comparison with the First World have a different body
structure and when it comes to breast feeding, the nutrient content of the breast milk vary.
Thats why the advertisement in the Third World could focus more on the benefits of
breastfeeding or Nestle could encourage using formula for special situation. However,
Nestl could stick to the WHO codes and develop new marketing techniques. Also,
women should get tested for free HIV to prevent the spread to the infants.
3. After Nestls experience, how do you suggest it, or any other company, can
Before nestle or any enterprise enter to the new market, they have to analyze and
understand well about the tradition, life style, economic status and natural condition of
the new area. Marketing will not be universal for all the places as the target market in
different area comes from different culture and may not react the same way. For instance,
if the company operates in the Third World, they should focus on promoting healthy
eating habits for mothers during the pregnancy and then baby. Hence, marketing the
product with different approach in different society is the key to success. It is important
for the company to produce, market and sell products in a complete different way when it
comes to baby products- they need to be more proactive towards product research and
development. They should conduct study to know more about the social and medical
effects of their products. Also, they should do more study about medical effects of their
product and services. Company should make sure that the product is compliance with
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Nestle: The Infant Formula Controversy
The company should make sure the consumer knows about the product well and avoid
misuse. Its all about educating the customers as the product is dealing with infants.
Hence company have to provide enough information of how to avoid misuse of the
products. Ultimately making profit should not be the first priority when doing business
4. Assume you are the one who had to make the final decision on whether or not to
promote and market Nestls baby formula in Third World countries. Read the
examine the social responsibility and ethical issues regarding the marketing
approach and the promotion used. Were the decisions socially responsible? Were
they ethical?
There are difficulties arise in making decisions, establishing policies and engaging in
In my opinion, the decision made were not socially responsible. First of all, the company
distribute free samples to the public that influenced lot of women to opt in using the
formula. Distributing free samples without explaining the proper method of use is
improper. Secondly, Nestl was marketed in a wrong way to the target market in their
global operation especially in the Third World country. To elaborate, Nestl infant
formula products were marketed to people who were incapable to fulfill the minimum
requirement for giving formula safely to the baby. As a result, the infant suffered from
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Nestle: The Infant Formula Controversy
improper nutrition resulted in malnutrition and weight-loss. Thirdly, the price of the milk
powder was too high in the market where they should keep their profit margin lower. In a
Third World county if a family spend 1/3 of their money of Nestl and still the little kid
suffers from malnutrition, then its an unethical pricing. Last but not the least, the
advertisement and posters of Nestl used idealistic imagery showing white children rather
than ethnicity of the country they were marketing their product, implying that using milk
5. What advice would you give to Nestl now in light of the new problem of HIV
The newest problem to arise is the 3.8 million children around the world that have
contracted HIV from breast milk. 90 percent of the child infections occur in developing
countries (Murray, n.d.). Since mothers have no idea if they are infected or not, some
strictly use formula as a precaution even though breast milk is the superior option. Nestl
this HIV issue. For the high cost, they can subsidize or donate free packs to needy
mothers. Nestl can promote breast feeding. In addition, Nestl can contribute towards
research on how to reduce the risk of mother-to-child transmission and provide education
and empowerment for women, especially in third world countries. The education
programs especially for mothers may help to use formula for only special situation and
reinforce the concept that breastfeeding is the best option. Also, Nestl should recognize
that consumer must use clean water while they use the formula for which Nestl can
avoid the problem of unclean water by providing clean water with their milk powder.
Lastly, to overcome the new issue of HIV being transmitted to children through breast
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Nestle: The Infant Formula Controversy
milk, Nestl can begin to offer free testing to mothers. The problem is that the mothers
are unsure about their HIV which can be transmitted to their baby through breast feeding.
If Third World mothers have easy, affordable access to finding out if they are positive or
not, then many infants can be saved from the disease. Furthermore, if they are positive,
Nestl should provide free or discounted formula since they will need to supplement
breast milk throughout their childs infancy. If the mothers know that they are infected,
then they would not spread it and HIV will not be transmitted to the infant.
Conclusion
It is all about global marketing going wrong when a company like Nestle do not research
on their target market. A false unethical advertising can cause a lot of death and be an
References:
"Nestl: The Infant Formula Controversy." McGraw Hill Education. N.p., n.d. Web. 15
https://en.wikipedia.org/wiki/Nestl%C3%A9