Nestle -- Infant Formula Controversy Nestle Has

Nestle -- Infant Formula Controversy Nestle has been accused of providing products to third world mother's that seriously violate the health of their children. It is not the products themselves that harm the health of the children. In fact, if they are used correctly, the Nestle formulas can serve as a nutritious supplement to an infant's diet. However, many of the third world mothers are unable to use the products correctly for a variety of reasons. One reason is the cost of the products.

Another is the access to clean water in which the mix the formulas with. The case study highlights the responsibility of Nestle in regard to the proper use of their products in these environments. It was argued that the marketing of infant formula in third world markets was unethical. Furthermore, even after Nestle stopped actively marketing their products in these markets, the still provided free samples as a promotional tactic.

This situation became even more complex when it was found that many mothers were transmitting HIV / AIDS to their infants in third world nations through their breast milk. Thus an infant formula that is given to the infant in a bottle is part of the solution to preventing the spread of the disease in high risk countries. Therefore, Nestle not only has a financial incentive for being part of this solution, but also an ethical obligation.

The corporation must try to get their products to those who really need them while at the same time trying to ensure that they are used properly. Problem/Opportunity The problem and the opportunity for Nestle is how to get their products into the hands of the mothers' that need them and can use them properly. They must also ensure that the potential customers know the risks and benefits of infant formula. The decision that needs to be made is how best to promote their products in an ethical manner.

Alternatives Actively market their products in third world countries through advertisements to mothers or soon-to-be mothers. Passively market their products by providing free samples to hospitals and nurseries. Create an outreach program that can educate mothers' on the risks, benefits, and proper usage of their products.

Pros and Cons Active Marketing Pros Maximizes Revenues Increases market size Can help with HIV / AIDS issues Cons Increases risks of improper use Could perpetuate negative publicity Potential boycotts/WHO problems Passive Marketing Pros Promotes products More subtle marketing Can help with HIV / AIDS issues Cons Could also lead to improper use Still risking negative publicity Potential boycotts/WHO problems Education and Outreach Pros Ethically responsible Positive publicity Could find subsidies and partners Cons Expensive Time consuming Could restrict revenue development Recommendation Nestle has a financial and ethical obligation to promote the proper use of their products.

The most sustainable position for Nestle is likely to passively market their products while also supplementing this strategy with a strong educational and outreach program. The company could ensure that free samples were available especially to women who are at high risk for HIV /.