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Transcript of Nestlé
Bibiana Rincón Summary Nestlé is a globally recognized company, which was involved in a serious lack of clear communications.
She was charged with the deaths of babies in the world by evil approach and the misuse of its powdered-formula, which was intended as food for babies.
In third world countries the problem was influenced by poor hygiene in some mothers living because they had no drinking water or in some cases did not have sufficient resources to supplement formula.
Many women briefly but decided not to breastfeed their children and only fed this formula, why malnourished children died. Nestlé.
WHO: World Health Organization.
Interfaith Center on Corporate Responsability.
Third World Institute.
Infant Formula Action Coalition. Actors Problem Death of Third World infants
and lack of cultural education Hard-selling Nestlé’s products to people incapable of using them properly.
Physicians promoted the baby formula like a substitute for breast milk Causes In the jungles of Peru, people only had access to contaminated water that caused diarrhea in infants and vomiting.
Around the third world, many parents dilute the formula to stretch their supply, causing extreme malnutrition.
In rural Mexico, Philipines, Central America & whole Africa, there has been a dramatic decrease in the incidence of breast feeding. Analysis The huge majority of pregnant women in developing countries have no idea whether they are infected or not with HIV; one concern is that large numbers of healthy women will switch to the bottle just to be safe.
A group of consumer activist member, claimed that Nestlé and others continued to dump formula in hospitals and maternity wards Nestlé argues that they never advocated bottle feeding instead of breast feeding. The Defense Economically disadvantaged mothers give their babies only breast milk, turn to supplementary feeding that are harmful to children. Mothers in developing countries often have dietary deficiencies affecting the amount of breast milk production Many poor women in the Third World bottle feed because their work schedules in fields or factories will not permit breast feeding. The real problem is how to supplement mother's milk with nutritionally adequate foods when they are needed. The World Health Organization created a code in 1981 that urged a worldwide ban on promotion and advertising of baby formula and called for a halt to distribution of free product samples or gift to physicians. The resolution Nestlé were met with WHO and UNICEF to try to obtain the most accurate interpretation of the code. before code launch, Nestlé products were boycotted by the Third World Institute and later established the International Nestlé boycott Committee, who reached an agreement in January 1984 between them and Nestlé. New Problems As of 2001, 3,8 million children around the world have contracted HIV at their mothers' breast. Although breastfeeding is the best choice to feed a newborn, many women in Africa choose to feed their children a bottle just a precaution and not be certain if they are HIV positive, again causing high levels of child malnutrition The Issues Nestlé's marketing activities have had an impact on the behavior of many people. In other words, Nestlé is a cultural change agent.
The key issue in this case is, What responsibility does the Multi National Corporation have to the culture when, as a result of its marketing activities, it cause changes in that culture? QUESTIONS 1. What are the responsibilities of companies in this or similar situations? Companies should have a clear message in their communication product, since in many cases by the desire to sell, some companies fail to communicate information or misleading advertising. Every company must maintain ethical principles which must protect their customers. In addition to the extent that companies sell good quality products that benefit the consumer, good management will be reflected in sales.
• Clear communication with consumers
• Instructions or clear parameters that allow the proper use of breast milk in babies
• Companies must find all available information about the culture, customs, geography, infrastructure, education of consumers to make an assertive marketing strategy to penetrate the market and avoid long-term impact 2. what could Nestlé have done to have avoided yhe accusations of ¨killing third World babies¨ an still market this product? Nestlé should have been responsible with the advertising campaign conducted for milk powder, as hinted at third world breast milk substitute powder milk. They should have made a cultural and social study in each country was to introduce their product to evaluate the possible consequences of using their products.
Nestlé should strengthen market research that would penetrate, it was necessary to know about the culture, traditions and accessibility to resources necessary for the use of his formula in each country. Additionally the approach Nestlé gave his product was not adequate, as they focused on their formula was a milk supplement and complement, which is why many mothers but decided not to breastfeed their children and feed them bottle-fed basis, generating irreversible problems. 3. After Nestlé's experience, how do you suggest it, or any other company, can protect itself in the future? It would be best that companies undertake a major investigation which enable them to know the culture they take their product and thus can be adapted to each region advertising clearly conveying the message of the product and its proper use. Just need to know the level of health of the region to which they should have security from entering the product be used with good quality complementary products.
Important for companies in their possible contraindications labels specify that the product may have, because this way the consumer is being reported negative effects that misuse of the product can bring. 4. Assume you are the one who had to make the final decision on whether or not to promote and market Nestlé's baby formula in Third World countries. Read the section titled ¨ethically and responsible Decisions¨in chapter 5 as aguide to examine the social responsibility and ethical issues regarding the marketing approach and the promotion used. were the decisions socially responsible? were they ethical? Nestlé decisions were not socially responsible, it offered a product claiming to replace a necessary food for growing babies as breast milk, lent further communication to confusion among mothers and therefore decided not to breastfeed more their children. Nestlé initially did not take into account the necessary codes to distribute products and only aimed to product sales without looking at the consequences that were generating. 5. what advice would you give to Nestlé now in light of the new problem of HIV infection being spread via mothers' milk? Nestlé can take advantage, as their product promises to be more beneficial and safe if it is used correctly. Nestlé should focus its efforts on creating marketing strategies based on good research, which generate a product acceptance and proper use; mothers should see this product in a safe and reliable for their babies, as a food that will benefit the growth of their children. The picture should look Nestlé is a solid and reliable company that produces consumer safety and this will be reflected in sales.