Saurav Mukherjee Course –PGDM (Marketing) SECTION – C Roll No. -10DM149 Answers for the Nestle Case Study 1. ) Companies like Nestle who deliver products like baby food supplements have an inherent ethical responsibility towards the society. Since their products have a lot of potential for creating health hazards these companies have to make sure that they promote their product through the right distribution channels. They should ensure that all of their products should carry a hologram and WHO certification to avoid spurious products.
It becomes imperative for the company to try and spread more awareness amongst its target consumers so that they can use the product in an optimum way. The companies will have to also get cooperation from health care professionals to remove any kinds of ambiguity from the customers’ minds. 2. ) Steps Nestle could have taken to avoid the accusations of “The death of Third World babies” are as following:- * Nestle could have subsidized the prices of the infant food supplements in third world countries. They could have also included a proper dietary chart along with the ideal weights of babies of specific age groups. * They should have taken a prior certification or approval from bodies like WHO in order to avoid future controversies during promotional activities. * They could have specified a period during which their products have to be consumed. * They could have included a scoop and mention the particular amount required for preparing the food supplement. * They should have included a chart of common symptoms for malnutrition in babies in maternity wards 3. In the future, going by Nestle’s experience Nestle or other companies can follow the following steps- * They should go for prior certification or approval from WHO and promote their products as infant nutritional supplements rather than as a complementary products. * Rather than opting for push strategy, they should go for pull strategy. * They should promote their products by informing their consumers about the proper way for preparing it in order to reduce the chances of contamination. They should also provide a list of weaning foods which can be used as supplement for breast milk in case of the unavailability of their own formula. 4. ) Decisions taken by Nestle were not socially responsible while promoting the brand. The reasons for this are as given below which illustrates the fallacy of Nestle’s decisions. * Not educating customers before a new product launch. * Their promotional campaigns are over promised and hyped the product. * Local conditions were not taken care of. * The ads were not tailor made for local markets. * Pricing strategy was not correct for third world countries. . ) In light of new problem of HIV virus Nestle can take the following steps – * Awareness campaigns on HIV and Breastfeeding to be conducted with the support from WHO regarding sanitary facilities and about the retroviral drugs taken through the pregnancy and breastfeeding stages. * Nestle should try to increase their supply of powdered supplements in the most HIV infected nations. * Nestle could also conduct anonymous tests for mothers so that they don’t face social stigma. * Unaffected mothers should not be encouraged to shift to bottle feeding.