Background of the Nestle Case
The case “Infant Formula: Hawking Disaster in the Third World” basically discusses the issue where breast feeding has been the major source of food for new born babies. As the case states, breast milk has been the most complete and the most nutritious baby food. It is considered as the most important diet for a child until the age of six months.
The case further explains that breast feeding not only serves as a complete diet for babies, but in fact, it also stimulates contractions of the womb and it also helps in returning to the normal size. As per the research, a woman who does not breast feed her baby begins to actually ovulate after the first two months of the child’s birth (The Multinational Monitor, 1987).
Therefore, not only does breast feeding help the child, but it also helps the woman to actually extend the overall time of the first ovulation. For a long period of time, breast milk was considered as the only instant food for infants. In fact, there was no competition at all because none of the companies in the market producing milk had the capacity, the formula to actually become a substitute to breast feeding.
Henri Nestle:
In the 1800s, Henri Nestle finally developed a product for the infant formula that could be a substitute for the human milk. The major decision taken by Henri Nestle was to present the infant formula as an opportunity for mothers to serve the baby with the infant formula, which was portrayed as healthier, easy to use and aligned with the needs of the child.
Issue:
The major issue that was identified by Henri Nestle was that the demand for infant formula developed by Nestle did not have the market. Although it was the first company to launch infant formula, however it did not have customers to cater and did not have the knowledge about the target market (The Multinational Monitor, 1987).
The company had no demand for infant formula because human milk for centuries has been the only source of food for infants. The developing countries and the under developed markets, all were serving their babies with human milk.
This was the major issue because the replacement manufactured by Nestle was not up to the mark and it did not have the competency to actually compete in a market that has been dominated by natural product.
Overcome:
In order to overcome the issue of no potential market for the formula developed by Henri Nestle, the team working at Nestle decided to create market awareness through marketing and sales efforts. The ideal market opportunity capitalized by Henri Nestle and the team was to not only target the mothers who cannot breast feed for various reasons, but the company decided to pitch those potential customers also who have been percent capable of breast feeding their babies. Moreover, Nestle had to convince mothers around the world about the fact that breast feeding was not as good as the bottle feeding.
Global marketing plan:
The global marketing plan for Nestle, while promoting its bottle milk or the infant formula was to promote all the different markets where mothers could become potential customers. The company basically targeted the mothers who could be educated about using infant formula rather than breastfeeding.
The idea was to target the complete market of human milk. The global marketing plan which was presented to the mothers convinced the mothers that infant formula milk is much better than the human milk. This was the major marketing plan carried by the company.
Moreover, the company, through its effective global marketing plan, covered the overall 50% of the market. Today, Nestle stands as the number firm that offers infant milk. The overall impact of the plan increased the sales and awards of infant milk (The Multinational Monitor, 1987).
Marketing Mix – Infant Formula (Nestle)
Nestle has been one of the most successful brands in terms of providing customers with variety of goods and decent quality. The brands offered by the company have been considered quite successful with the marketing communication strategies that are involved by the firm to ensure long term relationships with the customers.
Product: The product that has been offered by the company is the infant formula, which has been produced as an alternative and a substitute for human milk or breast feeding.........
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