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Nestle : The Infant Formula Controversy
Company Details
• For over 20 years, Nestlé has been directly or indirectly charged with
involvement in the death of Third World infants.
• “Nestlé Kills Babies,” and accused of unethical and immoral behavior.
The Charges:
Charge against infant formulas is whether advertising and marketing of
such products have discouraged breast feeding among Third World
mothers, thus contributing to infant malnutrition and death.
• The only way of water comes from a highly contaminated river in Peru.
• Throughout the Third World, many parents believe the bottle itself has
nutrient qualities and they dilute the formula to stretch their supply.
• In rural area, children had never been breast fed, and since birth their
diets were basically bottle feeding.
• There has been a dramatic decrease in the incidence of breast feeding
because of intensive advertising and promotion of infant formula.
The Defense:
• Nestle believes that breast milk is the best food for infants and
encourages breast feeding around the world as it has done for decades.
• Infant formula should be used as a supplementary not primary food.
• Third World Mothers feed bottle because their work schedules in
fields do not permit breast feeding.
• Weaning foods formula is not qualitifull.
The Resolution:
• Nestle undertook to carry out more comprehensive health education
programs.
• Nestle fully supports the World Health Organization (WHO) United
Nations Children’s Fund (UNICEF) code.
New Nestle policies:
• No advertising to the general public
• No sampling to mothers
• No mother craft workers
New Twist:
• Human immune deficiency virus (HIV) infected among children by
consuming mothers’ breasts.
Q1. Responsibilities of the company
Remain in the business and try to improve product quality.
Try to educate the consumer about hygienic and sanitation problems.
Contribute in social events as sponsorship to conduct medical and
nutrition conferences.
Setting up their pricing strategies which will be reasonable and
affordable for the target audiences.
And most of all, repositioning their brand to regain the goodwill.
Q2. Avoiding the accusations