International Marketing class project presenting our answers to the case study of the Nestle infant formula controversy.

1. Nestlé: The Infant Formula Controversy
Vannessa Yung Aris Chriseas
Aslan Maleki Aram Steenbergen
International Marketing – Fall 2014
University of Oklahoma – Norman
3 September 2014

2. Page  2
International Diversity

3. Page  3
Who or What is Nestle

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1
Charges: Nestle (MNO) is
marketing infant formula to
developing countries in which
misuse is leading to unhealthy
results
Defense: Nestle is just simply
offering an alternative for those
mothers that can’t provide
adequate nutrition
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
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3
4
5
6
The New Twist
SCENE
Summary &
Highlights
Challenges
Answers to
Case
Questions
Conclusions
Summary and Highlights

5. Page  5
1
2
3
4
Attempting
to change
culture
Hard
Marketing
Backfires
Health Risk
Problems
Challenges Nestle experienced
1974 2008
Summary &
Highlights
Challenges
Answers to
Case
Questions
Conclusions

6. Question #2:
What could Nestlé have done to have avoided the
accusations of “killing Third World babies” and still market
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its product?
Summary &
Highlights
Challenges
Answers to
Case
Questions
Conclusions
Answer
Starting 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

7. Summary &
Highlights
Question #3:
Challenges
Answers to
Case
Questions
Conclusions
After Nestlé’s experience, how do you suggest it, or any
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other company, can protect itself in the future?
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

8. Question #5:
What advice would you give to Nestlé now in light of the
new problem of HIV infection being spread via mothers’
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milk?
Summary &
Highlights
Challenges
Answers to
Case
Questions
Conclusions
Answer
Promote 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

9. Summary &
Highlights
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Challenges
Answers to
Case
Questions
Conclusions
An investment in
knowledge pays
the best interest.
– Benjamin
Franklin