Nestlé's role as cultural agent in HIV/AIDS prevention efforts

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 / AIDS infections. The company could also provide clinics and training to mothers to ensure that they understood the proper usage of their products. Finally, the company could work with governments and NGOs to subsidize the costs to at-risk mothers for the products to ensure that HIV / AIDS is not transmitted to infants.