Nestle: Marketing and Corporate Social Responsibility

01What are the responsibilities of companies in this or similar situation? nestle. The worlds come abouting Nutrition, Health and Wellness follow. Its mission of GoodFood, Good Life is to fork overconsumers with the opera hat tasting, most nutritious choices ina wide range of food and beverage categories and eating occasions, from morning tonight. The Company was founded in 1866 by Henri Nestle in Vevey, Switzerland, where itsheadquarters are still located today. Nestle employ nigh 280 000 people and hitfactories or operations in almost every country in the world. Nestle sales for 2010 werealmost CHF 110 bn. Current controversyIn this particular parapraxis, the issue was that Nestle Alimentana, one of the worlds largestfood-processing companies had been the subject of an external boycott as a result ofthe accusations that the beau monde was directly or indirectly responsible for the last of tertiary World infants. The charges were based on the sale of infant feeding formu la, whichsupposedly caused the mass deaths ofbabies in the Third World. Corporate social responsibility of the company Corporate Social Responsibility refers to operating a tune in a manner thataccounts for the social and env entreatmental impact created by the business.It signifiees acommitment to developing policies thatintegrate responsible practices into daily businessoperations, and to reporting onprogress made toward implementing these practices. Responsibilities are as follows 01)Every multinational company like Nestle has a prudent Business policy whichcomes after deep scrutiny well-nigh the environmental, cultural impact of their activities. Forexamplenestlesprinciplesarenoadvertisementtogeneralpublic,nosamplingtomothers , no use of commission or bonus for sales ,no point of sale advertisement , nofinancial and material motivator to promote products etc.So, every company shouldstick on their policy. 02)Around the world every country countries has own constabulary to enc ourage its people fromillegal or illogical operation of companies. In this case every company should respectcountrys law and they also should play their production and merchandise activities withconsidering these laws. 1. What are the responsibilities of companies in this or similar situations? Any patience or company, in its attempt to expand operations and explore opportunities, employ marketing strategies that ultimately lead to one thing- sales objective/ target achievement.And many times over, this brain restoreed to different marketing/ promotional schemes, regardless of culture, lifestyle, beliefs, etc. across the globe. Marketing jargons like scare tactics, (eg Whitehalls Incremin lack or iron among children hatful lead to death, source Health Today Philippine edition) premium offers (Bisolvons win a car, join.. , source Mercury Drug branch), free if you buy (bundling of Colgate-Palmolive , shampoo + toothpaste) save ( Unilevers shampoos 33% savings in a liberalger sac het pack) , are examples of this mind-conditioning among consumers.Nestles case proved one point- we cannot undermine the marginalized sector of the nine and use them to gain profits and increase market share. One case-in-point was how milk was promoted in the mid- 70s Lactogen (Nestle) When breastmilk fails choose Lactogen (ad in Sierra Leone) Klim (Nestle) The child is going to die, because the mothers breast has given out, Mama o Mama the child cries, if you wish your child to get well, give it KLIM milk (a radio ad in Africa) Another industry that dust controversial up to this time is the cigarette/ tobacco industry.For many years, issue on responsible marketing is challenged by several sectors. Despite the inclusion smoking is dangerous to your health in cigarette packs and the ongoing debate freedom of choice that consumers will do what pleases them, incidence of lung cancer continue to rise in developing countries. Responsibilities of companies facing the same issue in clude the following (1) Adhere to the policies set by regularisation companies. For milk companies, follow the guideline stipulated in the International Code of Marketing of Breastmilk substitutes For cigarette ompanies, adhere to the overlook Settlement Agreement which stipulates the dos and donts in cigarette advertising. This can save the company in any potential drop threat or problem(2) Changing the culture or local anesthetic practice doesnt happen overnight, add to that is the long investment needed to teach how people should behave in a manner large companies sine qua non them to be. It is important to respect age-old practices and understand local dynamics (3) To say that third-world countries are a throw out ground of large multinationals maybe subjective because there are companies who conduct business ethically.In any respect, companies, big or small, should be responsible in educating its target market, be able to answer consumers inquiries (Hotline is one belove d example), and begin to think the long-term benefits of each action to avoid damaging the equity of their company. 2. What could have Nestle done to have avoided the accusations Killing Third World Babies and still market its product? Nestle intelligibly wanted to come out strong in supporting its milk product line, especially that they have the muscle and money to hold different marketing programs.But rather than contradict age- old practice of breastfeeding and resort to scary campaigns breastfeeding is not good at all, they should have concentrated on the additional nutrients breastfeeding moms can give to their children. The advertising hyped so much on the inefficiency of breastmilk. And its advertising campaign came out to be a desperate act of winning new sets of customers. Misinformation also put Nestle in a adult light. With advertising comes responsibility to educate the consumers, no matter which country you are in.Another thing mentioned in the case is the inability o f Nestle to comply with the implementing guidelines which provoked the consumers to continue rallying against Nestle. Reality is, even in the local setting, practices mentioned in the case (such as sampling todoctors, sponsorship in medical societies, direct advertising to consumers) is still evident. court-ordered pursuits can be avoided if Nestle abided with the guidelines. All in all, this problem could have been avoided if Nestle concentrated on the nutritional benefits of infant formula, with proper clinical substantiation to back up its claim Uphold best ethical practices.Being one of the leading companies worldwide, they should set ethical standards and do not resort to cheap gimmickry to provoke consumers Employ a wholistic approach. Educate all perceived target group- doctors, mothers, schools, hospitals, pharmacies, nurses and midwives. By doing an integrated approach, it will conduct its commitment to deliver quality products to its market and be a reliable healthca re partner as well 3. After Nestles experience, how do you suggest it, or any other company, can protect itself in the future? The recurring issue to create the need or address the need remains a challenge to most companies.Nestle is no exception. It wants to be a pioneer in changing the lifestyle and mindset of consumers during the early-mid 70s, coupled with their desire to expand operations to third world and developing countries to sustain its business growth. In this case, they are changing the practice (traditional breastfeeding) drastically and tried to create the need (infant formula) which is not highly evince yet when they launched the campaign. Below are some ideas that can help protect other companies Understanding the ever-changing consumer trends and practice is one way to