Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Loading…
Transcript

Q&A

STRENGTHS

WEAKNESSES

  • lack of foresight/planning
  • smeared image
  • Market leadership
  • Strong brand
  • Financial stability
  • R&D capability

ECONOMIC

purchasing power in the developing countries

vs.

purchasing power in the developed countries

  • Nestle boycott
  • WHO Code

Education Level

  • Consultations with WHO and UNICEF

SOCIAL

  • Audit commission to ensure the company’s compliance with the code

HIV Concerns

SWOT Analysis

POLITICAL

and LEGAL

Point of

View

THREATS

OPPORTUNITIES

PESTLE Analysis

  • Rivals/Competitors
  • Continuous negative attacks and accusations from various groups

Problem

President/CEO of Nestlé

  • Valid need for a nutritional substitute to breastfeeding
  • Growing population
  • Findings on HIV transmission via breast milk

product features

scientific findings on breast milk superiority

TECHNOLOGICAL

ENVIRONMENTAL

Access to clean water

Assumptions

1. All developing countries have the same characteristics in terms of resources, information dissemination, etc.

2. HIV/AIDS- affected mothers may transfer the virus to their babies through breastfeeding.

Rural vs Urban communities

A. How should Nestle respond to the following:

1. bad publicity or issues of different organization

2. HIV/AIDS issues

B. What could Nestle have done in marketing their infant formula to 3rd world countries/LDCs? What should other companies do to protect themselves in the future?

Flow of Discussion

INFANT FORMULA

PRODUCT

PRICE

  • Case context
  • Company Background
  • Development of Nestle
  • Market expansion
  • Issues
  • Assumptions
  • Problem Statement
  • POV

expensive for third world market causing them to stretch supply

  • Strong association with country of origin, making it “aspirational”
  • As a supplement for infant nutrition v breast milk substitute
  • Still not as nutritious as breast milk
  • Powder form, must be mixed with water

4Ps

Marketing Mix

  • Analysis
  • 4Ps
  • PESTLE
  • SWOT analysis
  • Recommendations
  • Company Updates

hospitals and clinics

widespread distribution

sales representatives

  • free samples given out to nursing moms
  • mainstream ads
  • promotion to doctors and nurses
  • promoted infant formula as “substitute” for breast milk
  • lack of product education efforts

PLACE

PROMOTION

Case Context

Issues

Case Context

Company Background

Nestlé SA

Recommendations

4. How other companies can prevent a similar concern and to protect itself in the future

A. Death of Third World Infants

  • 1974 - British journalist Mike Muller published a report -Death of Third World Infants
  • Third World Working Group - “Nestle Kills Babies”
  • a Multinational Manufacturing Corp. (MNC) headquartered in Vevey, Switzerland
  • factories in more than 80 countries

Case Context

  • Understand the local culture of the nation/geography
  • Practice ethical and social responsibility
  • Work with local government and any national health organization
  • Market products with different approaches in different societies
  • Educate the local with adequate information about their product to avoid misuse
  • One size doesn't fit all

Issues

  • objective: "Good Food, Good Life.
  • Leader in Nutrition, Health, & Wellness.
  • Trusted company by consistently delivering their promises

B. HIV-infected mothers

  • “Creating Shared Value”
  • 2001 - 3.8M worldwide had contracted HIV at their mother’s breast, 90% from developing countries

Some Products

Baby foods

Bottled water

Cereals

Chocolate & Confectionery

Coffee

Culinary, chilled and frozen food

Dairy

Drinks

Food service

Healthcare nutrition

Ice cream, Extreme

Petcare

Case Context

Development of Nestlé

1866 - foundation of Anglo Swiss Condensed Milk Co. by the Page Brothers of the United States

1867 - Henri Nestle infant cereal was developed

1905 - Nestlé and Anglo Swiss Condensed Milk Co. (new name after merger)

20th century - diversification (chocolate, cheese, coffee, bottled water, petcare, ice cream

1929 - Merger with Peter, Cailler, Kohler Chocolats Suisses S.A. (Milo and Nescafe)

1947 - Nestlé Alimentana S.A. (new name after merger with Maggi)

1977- Nestlé S.A. (new company name)

concerns

  • switch to the bottle just to be safe
  • or continue to breastfeed to avoid being stigmatized

2004 - demand for infant formula in South

Africa outstripped supply as HIV-infected

mothers made the switch to formula

THE CHARGES

  • formula found its way to Amazon tribes - jungles of Peru
  • highly contaminated river as water supply
  • formula diluted to stretch their supply
  • decrease in the incidence of breast feeding
  • radio jingles - “white man’s powder that will make baby grow and glow”
  • “milk nurses” - providing samples to moms in hospitals

Recommendations

2. To address issues with HIV

  • Prevention of HIV-infection during breastfeeding by recommending that if a patient has HIV, formula should be used
  • Partnership with government to sell milk at discounted prices to HIV positive mothers
  • Provide education on HIV
  • Tie-up with medical providers/health authorities
  • Partner with government health agencies to promote awareness

The Defense

  • “Breastfeeding is still best for babies”
  • vital role in proper infant nutrition as a supplement & as a substitute when a mother cannot breastfeed.
  • mothers in developing nations - dietary deficiencies
  • work schedules that will not permit breastfeeding
  • weaning foods as either native cereal (with two basic dangers) or commercial manufactured milk formula.
  • real nutritional problem in the Third World - how to supplement mother’s milk with nutritionally adequate foods when they are needed

Resolutions

More Charges

1974 - Nestle reviewed its marketing practices

on a region-by-region basis

1977 - Third World Institute launched a boycott

against many Nestle products

1978 - Nestle banned mass media advertising

worldwide

1981 - 118 member nations of WHO endorsed a

voluntary code

1982 - Nestle formed the Nestle Infant Formula

Audit Commission (NIFAC)

1988 - Action for Corporate Accountability - call to resume Nestle boycott

1997 - Interagency Group on Breastfeeding Monitoring (IGBM) - claimed that Nestle continues to systematically violate the WHO code

2008 - International Baby Food Action Network (IBFAN) - accused Nestle and other manufacturers of violating the code or stretching the restrictions

1984 - INBC suspended boycott activities;

- Nestle pledged continued support of

the WHO code

Expanding into new market with existing products . It may be:

New geographical market

New market segments

New users for products

market

development

strategy

Market Expansion

One of Nestlé’s oldest products.

Principal product until the early 1900s.

The ANSOFF Matrix

Nestle sought entry into NEW MARKETS with their EXISTING PRODUCTS

Safe in developed countries where:

1. high quality drinking water is available

2. bottles & preparation equipment can be effectively sterilized

3. increased risk of illness can be treated

Recommendations

Western Europe maternity leave legislation empowers women who wish to stay at home and breastfeed their babies in first 6 months

1. Address bad publicity

Powerful regulatory agencies such as FDA in the develop countries

Enabled nursing mothers to maintain employment outside the home; helpful, if not essential, in combating poverty.

  • Fund research on infant feeding
  • Continue strict compliance to the WHO Code
  • Suspend consumer advertising & direct sampling for moms
  • Continue efforts on social responsibility by sponsoring events for healthy pregnancy, int'l medical & nutrition conferences, and events like celebrating Family Day
  • Become involved w/the Baby-Friendly Hospital Initiative
  • Keep its internal Nestlé instructions to Nestlé employees updated and up to standards to avoid any more problems.
  • Provide sufficient education towards Third World consumers about healthy pregnancy
  • Continue Nestlé’s stand against giving up breastfeeding and that breast milk is still best for babies

Recommendations

Nestlé, Infant Formula, & Developed Countries

3. What could Nestle have done to avoid the accusations?

  • Used global market model, adapt strategies that are cost effective and culturally appropriate
  • Conducted more intensive research prior to entering a new market
  • Made advertisements more informative for the local market
  • Developed health education programs
  • Promoted breastfeeding and been more clear that infant formula is only supplementary
  • Did not distribute samples to hospitals
  • Tied-up with medical experts on properly informing the nursing moms
  • Segmented & Targeted the new markets and Positioned their products properly

  • Nestle has now promised to drop its “natural start” claim in accordance with International Code Article 9.2 which states that “Neither the container nor the label should have pictures or text which may idealize the use of infant formula.
  • In the Philippines, statutory warnings are required on labels in English and Filipino and prohibit claims.

Nestle recommends that breast milk is the optimal feeding choice

Nestlé

The Infant Formula Controversy

BA 236

Alcantara. Flores. Ramirez. Salazar. Sia. Taguinod.

Company Updates

Learn more about creating dynamic, engaging presentations with Prezi