Slide

1.
- firstly, before marketing and distributing the product, the company must first be sure that
the population knows how to use it.
- Second, there is a responsibility to ensure that guidelines are written in the language of the
country or community they are marketing to.
- Finally, there should be a responsibility to reduce prices for those countries where the
product is needed but is difficult to obtain because of the price.

2.
- Prove the allegations do not occur because of the product but because of its improper use.
For example, the water used to make formula has been contaminated
- May promote its formula mainly to children over 6 months. More advertising of special
formulas for lactose-intolerant or low-birth-weight babies.
- Make sure their labels and instructions are up to date and written in the language of the
country in which the product is being distributed
- Encourage women to breastfeed their babies
- Offer ways for those women to make and use products as safely and correctly as possible.
3.
- Learn everything about the environment, tradition, economy and health before entering any
market.
- Research the social and medical impacts of their products and services
- Conduct more active research on where the product will be distributed => make the
necessary adjustments so that the product is used safely according to the instructions.
- Provide product information in the language of where the product is being distributed.
- Actively advocate in promoting healthy eating habits starting with the mother, when she is
pregnant and then with the baby.
4.
In this case, Nestlé's has some following problems:
• Sales people were not properly trained
• High price
• Distributed free samples without explaining the proper method
• Bad Explanation on Making the Product : Due to bad explanation on product making people
use wrong materials to make it and became sick .
• No Checking for Misinterpretation : Did not care to check whether people understood the
procedure to make the product or not .
• Wrong Information Providing : Often wrong information was conveyed to the people due to
its wrong marketing procedure .
• Excessive and Wrong Impression Providing Advertising : Too much advertising with
catchy lines and using cultural trend as a way to sell of product . So Nestlé's marketing
procedure was unethical and irresponsible . If it is not changed then Nestlé's product should
be banned .
5.
- Continue to show support towards breast feeding.
- Most women use the formula to avoid infection => Nestle can expand sales while making
people aware of this problem.
- Contribute towards programs that provide education and empowerment for women,
especially in Third World countries
- Nestlé can give away HIV tests to mothers, but mostly, they can make sure their products
are safe and healthy
- For the benefit of customers, the company can also develop a better engagement method
and can participate in the fight against the spread of HIV and AIDS.

Presentation
1. What are the responsibilities of the companies in these or similar situations?
When expanding into a new country, especially if it’s a third world country, the
multinationals should be aware of the impact their products could have on that specific
society which might not be prepared to use their products. Thus, before marketing and
distributing the product, the company must first be sure that the population knows how to use
it. For example, Nestle could have done some training to the new mothers in hospitals
regarding the health of their child and also regarding their product. This could happen before
the proper distribution of the product and might prevent also the malnutrition of the children.
Furthermore, the company should be aware about any single fact of that society which can
interact positively or negatively with their product.

Second, there is a responsibility to ensure that guidelines are written in the language of the
country or community they are marketing to. If the instructions are written in English and two
other generic languages, those in countries where illiteracy is a problem would not be able to
prepare the instant formula safely and correctly.
Lastly, Nestlé should take on the responsibility of providing a discount to those countries
where their product is extremely needed, yet hard to come by because of the price. Many
companies now-a-days are trying to better third world countries and provide people with
necessities; Nestlé should join the band wagon. Not only this, but I believe they should keep
their instructions and information handouts/pamphlets as up to date as possible and r-evaluate
pricing strategies yearly with the low income areas they are distributing to.

2. What could Nestle have done to have avoided the accusations of “killing Third World
babies” and still market its product?
Prove that the charges it was accused did not occurred because of the product but because of
the inadequate use of it. For example Nestle cannot be accused that its product caused
diarrhea and vomiting because the water used to make the formula was contaminated. Even if
those babies would not have drink Nestle formula they would have drunk other formulas or
concoctions prepared with water the result would have been the same. Nestle could promote
its formula mainly to children aged over 6 months. Promote more the specialty formula for
lactose intolerant or low birth-weight babies.

Nestlé could have avoided the accusations of ‘killing Third World babies’ and still marketed
their products by changing a few things about their original marketing strategy. They should
have made sure their labels and instructions were up-to-date and written in the languages of
that country that the product was being distributed; this would ensure that those families
wanting to use their product would be able to understand the instructions completely and
safely.
They should also encourage women to know that breastfeeding is the number one choice,
where possible, as explicitly as possible rather than comparing their product as 'the product
closest to breast milk'. I also believe they could have provided ways for those women to
properly make and use the product as safely as possible. With those few changes and some
research into the countries in which they plant to distribute, I feel as though Nestlé would
have had half as many issues as they did.

3. After Nestle's experience, how do you suggest it, or any other company, can protect
itself in the future?
The third-world countries have a different culture and lifestyle than in U.S. and Western
Europe. Before entering any of these markets any company need to understand everything
about the environment, traditions, economy and health of that specific area. This kind of
companies should also study the social and medical effects of their products and services.
The companies that produce market and sell infant formula, including Nestle, should conduct
a more aggressive research about the places where their product will be distributed and
marketed. If companies know their product will be distributed directly into the hands of
people who do not have adequate conditions to use their product safely, the company should
make the necessary adjustments in order for product to be used safely according to the
instructions of the product. To put it simply, in order to sell infant formula, you either need
milk or water, if milk is out of the question, make sure the water is safe to be used with the
product

A marketing approach that could be used and that would be a success is that they should
provide information about the products in the language of the places where the product is
being distributed.
These companies should be active advocates in promoting healthy eating habits starting with
the mother, during her pregnancy and then the baby.
4. Assume you are the one who had to make the final decision on whether or not to
promote and market Nestle’s baby formula in Third World countries. Were the
decisions socially responsible? Were they ethical? Related to the corporate social
responsibility matter Nestle was evading it’s responsibility to the public.

The marketing approach and the promotion used were unclear, which led the consumers to
the misconception that formula was a good way to replace breast milk and other forms of
nutrition vital to child development. The company should have played an important role in
educating the public in relation to the product and the product’s characteristics and proper
use. Also, Nestle did not take into consideration the differences in living conditions, culture,
literacy, fact that led to a number of problems, such as the misuse of the formula. From an
ethical point of view, Nestle took advantage of the lack of clarity in the marketing practices.
Since this issue is a sensitive one, children and their development, the company should have
been a lot more involved in the impact their product has on all types of consumers, not only
on producing, promoting and selling the formula.

In this case, Nestlé's has some following problems:

• Sales people were not properly trained
• High price
• Distributed free samples without explaining the proper method
• Bad Explanation on Making the Product : Due to bad explanation on product making people
use wrong materials to make it and became sick .
• No Checking for Misinterpretation : Did not care to check whether people understood the
procedure to make the product or not .
• Wrong Information Providing : Often wrong information was conveyed to the people due to
its wrong marketing procedure .
• Excessive and Wrong Impression Providing Advertising : Too much advertising with
catchy lines and using cultural trend as a way to sell of product . So Nestlé's marketing
procedure was unethical and irresponsible . If it is not changed then Nestlé's product should
be banned .

5. What advice would you give to Nestle now in the light of new problem of HIV
infection being spread via mother’s milk?
Now that this problem has occurred in the third world country, it is in order a better
understanding of the phenomenon. Most of the women in both developing and developed
countries will use the formula just to avoid any bad outcome. Nestle could take advantage of
it and expand its sales in the same time with making the population aware of this problem.
The company could also find their own new customers, especially new mothers that are
infected with the HIV virus. Nestle should train properly these women about how to deal with
this problem and in the same time buy the company’s products. In the interest of customers
the company could also develop a better method of involvement as they are a cultural agent
and can have an important participation in the battle against the spread of HIV and AIDS.

I feel as though since Nestlé is marketing and distributing in those countries where there is an
HIV problem being spread via mothers’ milk, I truly believe they should help out in any way
possible. Just as in the water issue, Nestlé could donate HIV tests to those mothers from those
countries, but mainly, they could make sure their product is safe and sound to be able to help
those in need. Nestlé knows their product could help those women who are in need
throughout this HIV epidemic, I truly believe they should do everything they can. For a
multibillion dollar company, Nestlé has the power to do so.
In light of the new issue of HIV transmission through breast milk, Nestlé should continue to
show support for breastfeeding.
Most of the women in both developing and developed countries will use the formula just to
avoid any bad outcome. Nestle could take advantage of it and expand its sales in the same
time with making the population aware of this problem.
Beside that, contribute towards programs that provide education and employment for women,
especially in Third World countries. In the interest of customers the company could also
develop a better method of involvement as they are a cultural agent and can have an
important participation in the battle against the spread of HIV.
Nestlé is marketing and distributing in those countries where there is an HIV problem being
spread via mothers’ milk, I truly believe they should help out in any way possible. Nestlé
could donate HIV tests to those mothers from those countries, but mainly, they could make
sure their product is safe and sound to be able to help those in need.
In the interest of customers the company could also develop a better method of involvement
as they are a cultural agent and can have an important participation in the battle against the
spread of HIV.
This is the end of my presentation. Thanks you for listening. Do you have any question?