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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.
1. 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
2. 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.
3. · Nestlé marketed yet still promotes the product as a risk-free
supplement to breastmilk.
· In poor nations Milk has been polluted, contributing to illness
in vulnerable children.
· UNICEF reports that even an infant who is not breastfed living
in an unhygienic state is 6 to 25 fold has a higher likelihood to
suffer from malnutrition and four-fold more likely to end up of
pneumonia compared to an infant who is breastfed.
Nestle in Controversy
The debate to market the baby milk products as a
substitute for breastfeeding milk entered the markets of
developing nations somewhere around 1973. This debate started
because of the two nutritionists that raised question over the
aggressive marketing of the product. However, the debate did
not reach the heights until another publication was issued with
its title as "The Baby Killer". This publication was translated
into different languages across the world and distributed widely.
In the same year, a German man published another article which
was also translated in German with its version that was named
as Nestlé kills babies. But Nestle ended up suing the
organization for inappropriately labelling the company. Nestle
won the case but at the same time, the publication gained
publicity across the whole of United States.
Consequently, Nestlé decided to review its policies of
marketing, especially in developing countries. It worked on
making revisions in the content and words of advertising and
the way educational information was passed on through the
marketing techniques. Nestle focused on spreading awareness
that it is important to breastfeed children rather than
substituting the milk of infants with artificial mil products. By
1978, Nestle managed to withdraw the mass marketing of the
infant formula mainly in developing nations.
Research Questions
Following are the research questions for this proposal:
· What are the factors that contributed to the negative
4. controversies of Nestle?
· What is the actual impact of Nestlé's aggressive marketing and
claiming its formulas to be a substitute for breasted milk?
· How can Nestle rise above the controversies and improve its
mistakes?
· What are the implications for future use of the Nestle baby
products?
Target Audience
The target audience for the proposal would be the
following:
1. World Health Organization: The World Health Organization
is an organization that is focused on providing health benefits to
the users of various products. It ensures that the companies
operate with integrity so that the customers aren’t deceived by
false advertising of products. However, the controversy of
Nestle was against the marketing guidelines of the world health
organization. Thus, this research will aim to target the WHO so
that valuable information can be reached out to the
organization. Nestle is blamed to have broken the rules of
marketing and advertising its product as a substitute for
breastfeeding milk which led to deaths of many infants in poor
countries. Like that of the biggest producer of manufactured
baby milk, Nestlé has indeed been described as a major cause of
rising infant mortality rates internationally. The World Health
Organization reports about 1,5 million babies to die every year
from inadequate eating, provided which children who seem to
be susceptible to infection are provided synthetic milk
replacements
2. Developing nations: the developing nations have fewer means
of transferring information across the population. This is
because the population lacks resources to afford such
technologies or most of the population is uneducated to develop
more knowledge about the products. In such countries, the
brand name is enough to make its sales across various
consumers. Therefore, this research will target the population of
developing nations by publishing in it places where its
5. accessible by the people of rural areas as well.
3. Breastfeeding mothers: the mothers of developing nations
specifically must be educated about the use of baby-related
products especially those that are to be consumed by infants. It
was because of the lack of knowledge that the mothers ended up
using the infant milk formula in the wrong manner which led to
deaths of millions of infants in developing countries. Therefore,
this research will focus on targeting the mothers that are
unaware of such harmful products so that a careful step can be
taken to save children and their future.
4. 4. Media: the media plays an important role in educating the
population or spreading awareness. The most common source of
awareness in developing nations on television or news.
Therefore, this research paper will target the media publications
so that they can get the research outcomes across the developing
nations for their awareness.
5. Government: The government of the developing nations
especially is an important stakeholder. The government must
obtain all relevant information regarding infant products that
are found to be contaminated and killing children all around the
world. This research paper will provide valuable information to
the governments of different nations ensuring that government
can take necessary measures to prevent such products entering
the markets of the country.
6. Investors: The important stakeholders that would be
interested to know about the standings of Nestle on the issues of
infant products are the investors. The investors would be
concerned about the image of the company because that would
affect the share price of the company thus affecting the returns
of the firm. Therefore, the research paper must target investors
of Nestle as well that have currently invested or are potential
investors so that they can make the right decision with their
money. Furthermore, as Nestle controversy blames Nestle with
unethical practices of false marketing it may concern many
investors as they would not want to fund a company that of
involved in unethical activities.
6. 7. Suppliers: Suppliers include vendors who provide raw
materials to the company. The suppliers are the key
stakeholders for any organization as it is important to maintain
a proper relationship with the suppliers so that the cost can be
minimized. However, if the supplier gets to know that they are
providing raw materials to a company that is involved in
unethical practices it may cause them to stop supplying
resources to Nestle. This research, therefore, aims to target
suppliers of Nestle as well so that they can know the true
picture about the company and decide accordingly whether they
would want to continue supplying to Nestle.
Methodology
The research approach for this research would be qualitative.
This is because the research needs to focus on non-numerical
data and identify the elements that contribute to the
controversies of Nestle. Qualitative research will be followed
because the research questions do not require any empirical or
numerical research.
Moreover, the data would be mainly secondary data that would
be collected by already researched papers and journal articles
that are from a scholarly source. However, primary data will
also be collected by using various qualitative instruments such
as interviews of various people who have been a victim of the
infant milk formula or random parents to find out how many
people are aware or unaware of this formula. Furthermore, focus
groups will also be used which will include 4-5 parents that will
be asked a serious of questions. The questions will be both
closed-ended and open-ended.
Statement of Deliverables
Following are the outcomes that are expected to be
achieved from the research:
· The factors that contributed to the aggravated controversy
against Nestle baby products.
· The steps that the stakeholders should take to be aware and
careful of the harmful products that are being used by the
parents for their infants.
7. · The different ways in which Nestle can introduce solutions to
its poor reputation regarding baby products.
· How the future use of baby products will be impacted due to
the controversies surrounding the company.
Conclusion
It is evident from situation provided that a firm's image is
determined by following morals and ethics in its manufacturing,
promotion and selling not just in respect of its revenue or
benefit growth but because of the values it gains. The problem
of combined nutrition until 6 months must be studied and
avoided not just at the service level, by community-level
services. The campaign for feeding would sufficiently represent
the necessity for continued breastfeeding during the six months
as well as the prompt and effective implementation of
supplemental foods. from this market proposal, it can be seen
that it's important to keep the practices of the company within
the boundaries of ethics and morals. A company that uses
measures such as aggressive marketing or false advertising of
products would sooner or later gain negative publicity around
the globe as is the case with Nestle. The company tried
advertising the infant products as a substitute for the breast
milk of mothers and led to deaths of millions of infants. This
raised questions on the claims of the company about the product
being a substitute for the breast milk. Soon the company has
received bans on its products across the world. Therefore,
companies need to be wise while advertising but not try to beat
the world with false information. Also, there is a
requirement for healthcare professionals, especially nurses who
oversee medical facilities in rural locations, to consider the
situations in which baby formula may be used because
providing a synthetic formula for saving someone's life under
certain circumstances becomes quite important.
8. References
Krasny, J. (2012). Every Parent Should Know The Scandalous
History Of Infant Formula.
Mowbray, S. (2018). A brief history of the Nestle brand.
Mercantilism played a major role in the exploration and
discovery by European powers in the late 15th and 16th
centuries. It is important to note that it is a type of command
economy. In a command economy, it is based on state controls.
As such, the government decides what, how much, how to, and
who are the consumers. Contrary, to a market economy, a
command has a central authority while the market economy is
based on decisions made by individuals. Around the 1600s,
since most of Europe were monarchies, it mostly leaned on the
notion of a command economy. Mercantilism was in fact
incredibly popular throughout Europe during that time.
However, mercantilism was not just popular due to the notions
and system it provides to its states alone.
Historically, mercantilism was known as an economic theory in
which expresses the notion that trade generates wealth. It
asserts that it is stimulated by the accumulation of profitable
9. balance. This is something in which a state’s government was
encouraged to secure. Many European powers from the late 15th
and 16th centuries used protectionism, a practice of utilizing
trade policies that allows the government or head of state to
promote domestic producers. This way, through imposing tariffs
or limiting foreign products and services in the marketplace, it
would consequently boost the country’s domestic production of
goods and services. Though in practice this seems reasonable,
mercantilism was actually often used as a logical excuse for
expansionism. Great powers like England, Spain, and France
would manipulate and use its concept as a way to justify their
need to imperialistically expand their borders and gain more
territory through conquest and colonization.
As a system of both political and economic policy, mercantilism
now essentially seeks to secure a state’s political and economic
supremacy in its rivalry with other states. The goal of each state
was to accumulate important natural resources and metals
through the exportation of the largest quantity of products and
conversely importing as little as possible. Only then would a
“favorable balance of trade” be established. National wealth is
measured in the amount of precious metals or resources like
gold and silver. For mercantilists, they believe that wealth is
finite, that there is a limit to how much silver or gold one can
obtain. Hence the reason why there was once such a race and
urgency to colonize new land. With more land, there are more
resources, a greater chance to expand one’s wealth. In this
context, it is similar to the notion of a zero-sum game. Since
resources are finite, there is only so much available. If a state
wants more resources to generate more wealth and power they
would either have to colonize more land or take some by force.
Also explain how African slavery became vital to the New
World.
10. BBA221 Market Research MAY FINAL project Task brief &
rubrics
Task
BBA221 MARKETING RESEARCH
TASK BRIEF
Marketing Research Proposal
1) Select a company within a specific market, and a product
category in a certain context (socioeconomic, cultural, political,
etc.). You can use the same
company you used for TASK number 1
2) The task now consists in deliver the result of the market
research, according to the market research project presented in
the previous task
3) The task has to describe
• The methodology or methodologies used,
• The demographics of the methodology, including their profile,
the reason why they were selected, etc.
• The results of the market research, including as much
11. information as possible (chart, tables, figures, etc)
• Among the results, you can insert a SWOT analysis derived
from the results attained
• The recommendations to be given to your customer.
• A possible action plan coming from the recommendations
4) The data delivered can be obtained from bibliography, real
market research, or invented, but they have to be coherent with
the problem analyzed
This is an Individual assignment.
This task is worth 40% of your overall grade for this subject.
The required word length is 2000 words.
The Report is required to be submitted in PDF format on
Turnitin.
Deadline for Turnitin submission: 2th MAY 23:59pm.
13. Example descriptor:
Student is able to deliver
data on the methodology
used, reasons for having
chosen that methodology,
the results of the market
research and the
corresponding
recommendations,
Example descriptor:
Student is able to deliver
some data on the
methodology used, reasons
for having chosen that
methodology, the results of
the market research.
Example descriptor:
Student is unable to deliver
neither the methodology, the
results or recommencations
for the customer.
Research
(20%)
The results of the study are
clearly displayed and are
rich in learnings. The
recommendations are
relevant for the customer.
14. The results of the study are
reasonably displayed and
may give some orientation
to the customer. The
recommendations are
somehow relevant for the
customer
The results of the study are
displayed without details
and some orientationis
provided to the customer.
The recommendations are
not relevant for the
customer
The student does not present
the methodology, the results
neither the
recommendations-
Communication
(40%)
Student communicates
their ideas extremely
clearly and concisely.
Student communicates
their ideas clearly and
concisely.
Student communicates
their ideas with some
clarity and concision.
15. Student fail to communicate
their ideas clearly and
concisely.