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.
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 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.
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.
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 .
This case study examines a problem that Nestle faced in 1974, when a British journalist wrote and published a report alleging that infant powder milk formula had contributed to infant deaths and malnutrition in third-world countries. The charges centered on the product's marketing, which allegedly led to product misuse, discouraged breast feeding, and product misuse. According to the article, "the report accused the industry of encouraging mothers to give up breast feeding and use powdered milk formulas," where the product was abused, resulting in unhealthy outcomes and infant death and malnutrition.
Throughout history, women have successfully breastfed their children. It has only been a century since modern technology enabled women to feed manufactured infant formula to their babies. Formula feeding began in developed countries and quickly spread to the Third World. When formula feeding is used incorrectly, it directly increases infant mortality and morbidity rates in developing countries.
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