國(guó)際市場(chǎng)營(yíng)銷(xiāo)學(xué) （原書(shū)第18版）指導(dǎo)教案Part-II

Instructor’sNotesonTextCases

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PARTII

INSTRUCTOR’SNOTESONTEXTCASes

CASEGUIDE:Clickonatitlebelowtogodirectlytothatcase

CHAPTER

CASE

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1–1

HYPERLINK

Starbucks–GoingGlobalFast

X

X

X

X

X

X

1–2

HYPERLINK

Nestlé–TheInfantFormulaIncident

X

X

X

X

X

X

X

1–3

HYPERLINK

CokeandPepsiLearntoCompeteinIndia

X

X

X

X

X

X

1-4

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MarketingMicrowaveOvenstoaNewMarketSegment

X

X

X

X

X

X

1-5LivinginaBox...TheWayoftheFuture?

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X

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X

X

X

X

X

2–1

HYPERLINK

TheNot-So-WonderfulWorldofEuroDisney

X

X

X

X

X

X

X

2-2

HYPERLINK

CulturalNorms,FairandLovely,andAdvertising

X

X

X

X

X

X

2–3

HYPERLINK

Starnes-BrennerMachineToolCompany–ToBribeorNottoBribe

X

X

X

X

2-4

HYPERLINK

EthicsandAirbus*

X

X

X

X

X

X

2–5 CopingwithCorruption

X

X

X

X

2–6

HYPERLINK

WhenInternationalBuyersandSellersDisagree

X

X

X

2-7

HYPERLINK

McDonald’sandObesity

X

X

X

X

X

X

X

HYPERLINK

UltrasoundMachines,India,China,

AndaSkewedSexRation

X

X

X

X

CounterfeitMobilePhonesinSoutheastAsia

X

X

X

X

X

X

X

X

3-1

HYPERLINK

InternationalMarketingResearchatMayoClinic

X

3–2

HYPERLINK

Swifter,Higher,Stronger,Dearer

X

X

3-3

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MarketingtotheBottomofthePyramid

X

X

X

X

X

X

X

X

X

X

HYPERLINK

ContinuedGrowthforZaraandInditex

X

X

X

3-5

HYPERLINK

ASeaLaunchRecovery?

X

X

3-6

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Gillette:The11-CentRazor,India,andReverseInnovation

X

X

X

X

X

X

X

4-1

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Tambrands–OvercomingCulturalResistance

X

X

X

X

X

4–2 Futuram’sRiskManagementStrategy

X

X

X

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X

4–3

HYPERLINK

SalesNegotiationsAbroadforMRIs

X

X

X

4–4

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NationalOfficeMachines–MotivatingJapaneseSalespeople:StraightSalaryorCommission?

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X

X

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4–5

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AIDSandCondoms

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X

X

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X

X

X

4–6

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MakingSocialResponsibilityandEthicalmakingDecisions:SellingTobaccotoThird-World*

X

X

X

4-7

HYPERLINK

TheObstaclestoIntroducingaNewProducttoaNewMarket

X

X

4-8

HYPERLINK

MaryKayinIndia

X

X

X

X

4-9NolandStoresCleansUpitsAct

X

X

X

X

X

X

X

X

X

X

*Therearethreesuggestionsonusingcases2-4and4-7.(1)HavethestudentspreparethecaseinconjunctionwiththediscussionofethicsandsocialresponsibilityinChapter5;(2)Inatwo-stageapproach,havethestudentspreparethecaseearlyinthesemesterafterorduringdiscussionofculture(Chapter4)andbusinesscustoms(Chapter5)andthentowardtheendofthecourseafterChapter17.Havethemcompareearlyrecommendationswithlaterrecommendations.Discusshowattitudeshavechanged;(3)Havethestudentspreparethecasesattheendofthesemesterafteralltextchaptershavebeenreadanddiscussed.

Case1–AnOverview

1-1 Starbucks–GoingGlobalFast

1-2 Nestlé–TheInfantFormulaIncident

1-3 CokeandPepsiLearntoCompeteinIndia

MarketingMicrowaveOvenstoaNewMarketSegment

1-5LivinginaBox...TheWayoftheFuture?

Case2–TheCulturalEnvironmentofGlobalMarketing

2-1 TheNot-So-WonderfulWorldofEuroDisney

2-2 CulturalNorms,FairandLovely,andAdvertising

2-3 Starnes-BrennerMachineToolCompany–ToBribeorNottoBribe

2-4 EthicsandAirbus

2-5 CopingwithCorruption

2-6 WhenInternationalBuyersandSellersDisagree

2-7McDonald’sandObesity

2-8UltrasoundMachinesIndia,China,andaSkewedSexRatio

2-9 CounterfeitMobilePhonesinSoutheastAsia

Case3–AssessingGlobalMarketOpportunities

3-1 InternationalMarketingResearchatMayoClinic

3-2 Swifter,Higher,Stronger,Dearer

3-3MarketingtotheBottomofthePyramid

3-4ContinuedGrowthforZaraandInditex

3-5ASeaLaunchRecovery?

3-6ClubMedandtheInternationalConsumer

3-7Gillette:The11-centRazor,India,andReverseInnovation

Case4–DevelopingglobalMarketingStrategies

4-1 Tambrands–OvercomingCulturalResistance

4-2 Futurama’sRiskManagementStrategy

4-3 SalesNegotiationsAbroadforMRIs

4-4 NationalOfficeMachines–MotivatingJapaneseSalespeople:StraightSalaryorCommission?

4-5 AIDSandCondoms

4-6 MakingSocialResponsibilityandEthicalmakingDecisions:SellingTobaccotoThird-World

4-7TheObstaclestoIntroducingaNewProductintoaNewMarket

4-8MaryKayinIndia

4-9 NolandStoresCleansUpitsAct

Case1

AnOverview

Case1–AnOverview

1-1 Starbucks–GoingGlobalFast

1-2 Nestlé–TheInfantFormulaIncident

1-3 CokeandPepsiLearntoCompeteinIndia

1-4MarketingMicrowaveOvenstoaNewMarketSegment

1-5LivinginaBox…theWayoftheFuture?

Case1-1Starbucks

TheStarbuckscaseisexcellentexamplesofhowWallStreetpushesretailerstoover-extendbydemandingfastgrowth.Maintaininghistorical20%growthrateswillbeimpossibleinthefutureforthefirm.Duringthelast10yearsithasbeenridingawaveofchangesinconsumerbehaviorandaboomingeconomythathasallowedforsuchfastgrowth.Both“uncontrollables”alwayschangeovertime.Goinginternationalwillhelpthecompany,butrushingintointernationalmarketswillhurtthecompany.SignsofproblemsarealreadymanifestingthemselvesindecliningsalesandprofitsinJapanandtheU.K.Asthecompanyhasrushedintonewmarketsithasseeninitialinterestandsaleseveninthetraditionalteadrinkingcountries(Japan,theU.K.,andChina),butbecauseofdifferencesinconsumertastesandbehaviorssamestoresaleshaveslowed.

Controllables–thepaceofentry(andgrowth),research,pricing,productline,placesandmethodsofdistribution,andpromotion(advertisingandpersonalselling).Indeed,mostrecentlyStarbucksisexpandingbothitsproductlineanddistributionchannelsinthetoughJapanesemarket.

Uncontrollabes–anti-Americanism,anti-globalism,terrorism,piratingandcopying,competitiongenerally(newcompetitioninJapanfromother“chillcup”producers),marketsaturation,consumerbehaviordifferencesandchanges,healthissuesrelatedtocoffeeconsumption,economiccyclesindemandandcoffeesupplies(prices),theattractivenessofit’sU.S.compensationplandependsonthedirectionofthestockmarket

Risks–alloftheabove.ParticularlytryingtomeetWallStreet’sexpectationsfor20%annualgrowth.Lowerprofitsoverseas–mustworkwithlocalpartners.Difficultyofmaintainingqualityofcustomerserviceinmostinternationalmarkets.Declineintheeconomy–inU.S.orglobally.BurningoutthebrandasdidIzodinthe1980s–withubiquitycomesalossofattractiveness.

3. OverallStrategy–thehyper-growthratesthecompanyistryingtomaintainwillresultinhugeblundersinnewmarkets.Whilewelaudgrowththroughinternationalexpansion,itmustbecarefulgrowthbasedonresearchandexperimentation(thatis,aprogramoftestmarketing)inproductsandoperations.Mostrecently,inacontinuationofriskygrowthStarbucksisplanningonenteringtheeconomicallyvolatileMexicanmarket.

Japan–saleslaggeduntilmostrecently.Thefirmseemstohavesolveditsprofitabilityproblemswiththestores.Thecompanyhasbeenexperimentingwithavarietyofwaystobroadentheproductlinetoincludealcoholicbeverages(perhapscoffeebased)andhotfood.Indeed,thefirm

testmarketedalcoholicbeveragesatthreestoresinSeattlepreviously,butdecidedtoclosethem.But,thetestmarketingwillbethekeytofindingtherightproduct/servicemixforJapan.Also,distributionchannelsmaybeexperimentedwithaswell.Thecompanyhasrecentlyputanoperationinacardealership.And,theJapaneselovevendingmachines.Indeed,exploitingthebrandinJapanmayrequireacompletelydifferentoperatingphilosophygiventhesubstantialdifferencesinconsumerculturethere.Asoutlinedinthemostrecentpressthefirmnowwilltestthestrengthofitsbrandinanewway,vendingmachinesales.We’resurethey’vedoneextensivemarketingresearchtobackupthisnewstrategy.However,weliketheideaofexpansionviamorestoresandimprovedoperations.WewillenjoywatchinghowthingsgoforStarbucksinJapan.

SeethelinkedarticlesfortheinformationavailableaboutStarbucksinJapan:

/news/a-stylish-launch-for-starbucks-new-frappuccino-in-Japan

/article/2014/09/23/us-starbucks-japan-idUSKCN0HI2I820140923

Thecompany’smostrecentplan(2019andbeyondforthatcountry:

/articles/12849-starbucks-unveils-strategic-growth-plan-for-japan

Case1-2Nestlé–TheInfantFormulaIncident

SummaryofCaseandResults

Inresponsetoapamphletentitled“NestléKillsBabies,”publishedin1974bytheSwissconsumer/activistgroup,ArbeitsgruppeDritteWelt,NestléAlimentanafiledafour-countlibelsuitagainstmembersoftheorganization.Thepamphletwasareprintofanearlieroneentitled“BottledBabies,”publishedbyasimilarBritishgroup.BothallegedthatfalseadvertisinghadpromptedmothersinLDCstouseinfantformulainsteadofbreastfeeding,andconsequentlycausedthedeathsofthousandsofchildren.However,theoriginalpamphlethadnotmentionedNestléoranyoftheothercompaniesbyname,andthusdidnotraisetheissueoflibel.

Threeofthecharges,whichNestlésubsequentlywithdrew,relatedtoallegationsmadeinthepamphletaboutNestlé’spromotionalmethodsinLDCs.Thefourthcharge,whichledtoajudgmentagainstthirteenmembersofthegroupinJune1976,focusedonthedefamatorytitle“NestléKillsBabies.”

Inhisdecision,thejudgestatedthatthecausebehindtheinjuriesanddeathswasnotNestlé’sproducts;rather,itwastheunhygienicwaytheywerepreparedbyend-users.AlthoughNestléwonitscase,thefirm’svictorywasdilutedby(1)havingtopayonethirdofthecourtcostsand(2)beingtoldbythejudgetochangeitsmarketingmethodstopreventfurthermisuseofitsproducts.Thedefendantswereorderedtopay$120eachindamagestoNestléandtwothirdsofcourtcosts.

Suggestions

Companiessellingconsumableproducts(foods,beverages,pharmaceuticals)toLDCshavelongrecognizedtheneedtoadapttheirpromotionaltechniquestotheirconsumerswhoare,byandlarge,poorandilliterate.Inrecentyears,oneparticulargroupoffoodproducers—thosefirmsmakinginfantformulaandothermilkproducts—hascomeundersevereattackbyvariousreligious,consumerandgovernmentalorganizations.Criticismfocusesontwoissues:(1)thatcompaniesallegedlyusefalseadvertisingtoinducemotherstosubstituteformulafortheirownmilk,and(2)thatfirmsaredirectlyresponsiblewhenmisuseoftheirproductsresultsinillnessordeath.TheassaultwasdramatizedintherecentSwisscaseinvolvingNestléAlimentana.

TheresponsesofmilkproductmanufacturershaverangedfromwritingcorporatepoliciesonLDCmarketingtoorganizingindustrycouncilsandholdingmeetingswithpressuregroups.Butmostsignificantly,companieshavealteredmarketingpracticesinwaysthatotherfirmsmakingconsumableitemsshouldfindinstructive.Thesechangesinclude

Tighteningupdirectsellingmethods.Acommonpracticeistohave“mother-craftnurses,”—localwomenwhomaybenurses,dietitiansormidwives—visitclinicsandhomestoencouragedoctorsandconsumerstouseinfantformula.Criticschargethatthesewomenareoftenunqualifiedtospeakonnutritionandthattheydistortfactstomakeformulafeedingmoreattractivethanbreastfeeding.Asaresult,manyfirmsnowforbidrepresentativesfromdiscouragingbreastfeedinganddemandthattheygotoclinicsandhomesonlyifinvitedorsentbyafamilydoctor.

Stressingnutritionaltraining.Firmsareimprovingthenutritionalinstructiongiventorepresentatives.Inaddition,promotersareprovidingconsumerswitheducationalpresentations,includingseminars,filmsandbrochures.

Suchtrainingnotonlycombatsmisuseofproducts,butalsobenefitsthemanufacturer.Forexample,onecorporationwhosesalesrepresentativesinIndonesiaconductedlocaldemonstrationonusesofacondensed-milkproductfoundthatthepresentationsaccomplishedseveralaims:(1)alertedtherepresentativetoproblemspeoplehadinpreparingandusingtheproduct,(2)servedasaroughtestmarketfortheproductand(3)helpedtobolsterthefirm’simage.

Controllingdistributors’promotionalactivities.Manufacturerssellingmilkproductsthroughdistributorshaveoftengiventhemfreereinoverlocaladvertising.Somecorporateexecutivesworryaboutbecomingtoocloselyassociatedwithdistributors’advertising,fearingpossibleliabilityforerroneousclaimsmadebydistributors.However,suchliabilitywouldbedifficulttoavoidinanysituationinvolvingacompany’strademarksandproducts.Afewfirms,recognizingthis,arecurrentlymonitoringallnewpromotionalcampaignsofdistributors.

Curtailingmassmediaadvertising.SeveralcorporationsthatformerlyadvertisedinfantformulaonTV,radio,billboardsandnewspapersarenowrelyingsolelyonsalesrepresentatives.

Improvinglabelinganddirectionsforuse.Somefirmshaverevisedpackageinstructionstoensuresafety.Forexample,WyethLaboratories’XS-26formulalabelsincludethefollowing:(1)comprehensive,easy-to-followdirectionsonpreparingandstoringtheproduct(vitalinareaslackingrefrigerationand/orcleanwater),(2)a“suggestedfeedingtable”givingtheamountofformulaandfrequencyoffeedingsaccordingtoaninfant’sweightandage,(3)astatementinboldtypestressingtheimportanceoffollowingdirectionscarefullyand(4)astatementonthepreferabilityofbreastfeedingnewbornbabiesandtheproperroleforpreparedformulainaninfant’sfeeding.

Developingpromotional/instructionalmaterialstohelplow-literacyusers.TheInternationalCouncilofInfantFoodIndustries,formedin1975,isstudyingwaystoimprovecommunicationmethodsforuseinareasofhighilliteracy.Possibilitiesincludecartoons,pictures,radioprogramsandevensoundtrucks.(Useofnewinformationalmaterialswouldbesubjecttoapprovaloflocalauthorities.)

PriceofSocialResponsibility

Forsomefirms,thecostofmaintainingethicalstandardsishigh.Onelargefoodcompanyactuallycloseddownitsmilk-processingplantinPakistanbecausepasteurizationlawswerenotbeingenforced,andlocalfirmssellingunpasteurizedmilkweregainingacompetitiveedge.Additionally,thequalityofthefirm’sproductwastarnishedbylocalconsumerswhofrequentlydilutedthemilkwithpollutedstreamwaterto“stretch”itfortheirownuseorforresale.

Inlightoftheseproblems,andothers—suchasthehighcostofmarketingandtraining,andtherelativelylowsalesvolume—somecompanieshavecontemplatedwithdrawingtheseproductsfromLDCmarkets.

However,themarketpotentialformilkproductsinthesecountriesisstrongbecauseofincreasingpopulationsandrisingstandardsofliving.Inaddition,thegrowingroleofwomeninthelaborforceiscreatingagreaterneedforinfantformulas.Thus,itappearsthatfirmswillremaininthesemarkets.

NotestoInstructors

Thefollowingconsiderationsshouldbeexaminedbythecasediscussants

Theinfantformulafoodwassuccessfulincertaincountriesandverydetrimentalinothers.(Basically,theanswerisinthecontrolledusebyeducatedmissionaries.)Thismayalsoindicatethatreasonableuseoftheformulafoodandfullusebymedicalandreligiousgroupsmightbeananswer,withmonitoredintroductiontootherareas.Educationisamust.

Theboycottgroupsarewellorganizedandusemodernpoliticalpressure.Inaddition,theyaregettingstrongmediacoverage.

Nestléisbeingisolatedasthemajorcontributortothisproblem.

Nestléisconsideredanon-Americancompany,andtherefore,U.S.governmentloyaltymaybegintowane.

Thelongerthecontroversycarrieson,themorecostlythesettlementwillbe.

Thecrossculturalaspectsofproductintroductionandcommunicationactivitiesmustbebetterplannedandmonitored.

Corporateresponsibilityisnotonlywhatisdefinedbyindustry,butwhatisperceivedbyconsumers.

Strongexternalaffair(outsidepublicrelationsactivities)programsmustbecloselycoordinatedandmonitoredbytheNestléheadquarters.

Update

TheNestléinfantformulacontroversycontinuesaftermorethanfortyyears.Ina1984agreementwiththeInternationalNestléBoycottCommittee,Nestléagreedtoceasedistributionoffreeandlow-costformulaindevelopingcountries,exceptinneed.

However,oneNestléInfantFormulaAuditCommission(NIFAC)allegesthatastudyconductedin1989inMexicorevealedthatInstitutionscanhaveasmuchformulaastheywantandinmanycasesit[formula]isgivento100percentofthechildrenindevelopingcountries.

Nestléclaimsitprovidesonlysmallamountsoffreeandlowcostformula.Further,theirsalesofinfantformulaindevelopingcountriesislessthan1%of$46.3billion1990sales.TheproblemaccordingtoNestlé,isthatwhenNestléstoppedgivingoutfreeformularivalinfant-formulamakersincreasedtheirfreedistribution.Forexample,whenNestléstoppedfreeformulainThailandin1988,rivalcompaniesfilledthevoid.

In1991,Nestléannounceditwouldstopallfreeandlow-costgiveawaysindevelopingcountriesexceptforthelimitednumberofinfantswhoneedit.AlixM.Freedman,toCurtailInfantFormulaInThirdWorld,TheWallStreetJournal,January30,1991,A1.

JustafterNestlé’scommitmenttostopformulagiveawaysindevelopingcountries,AmericanHomeProducts,thesecondlargestinfantformulamarketer,unveiledaplantostopprovidingfreeandlow-costinfantformulatodevelopingcountriesaswell.

NestléandAmericanHomehavebeenundermountingpressurefordefyingtheWorldHealthOrganization(WHO)guidelinesbydumpinglargequantitiesoffreeandlow-costformula.In1988,aMinneapolis-basedadversarygrouplaunchedaworldwideboycottagainstbothcompanies.ThecompaniessaytheyhavebeeninfullcompliancewiththeWHOcodebutthathospitaladministratorsinterpretinneedbroadlyandprovidefreeandlow-costformulaonrequest.Theboycotthasnowspreadto16countries.

Thisstepbythetwocompaniesisseenbysomeasanindustrytrendwhileothersaremoreskeptical.InDecember1991,AdvertisingAgereportedthatNestlébeganaseriesofadvertisementsadvisingwomentobreast-feed.Targetedatpoorwomenwhogetfreeformulafromthegovernment,Nestléhasnothingtolosesincetheyhavenogovernmentcontracts.ThedirectorofpublicaffairsforNestlé,saidthenewcampaignismeanttopromotebreast-feedingtoanundereducatedaudience.BradleyJohnson,AdsPitchBreast-Feeding,AdvertisingAge,December2,1991,p.40andVitalSigns:AMedicalRenegadeStandstheSystemonItsHead;TheBoycottIsBack,Health/PacBulletin,Fall1990,V.20,No.3p.42.

Inthelongrun,theymaygainifthisadvertisingcampaignhelpspolishtheirtarnishedimage.

However,inanothercontroversy,NestléhasbeenaccusedofraisingthespecterofAIDSasajustificationforbottle-feedingwhentheheadofpublicrelationsatNestléUKtoldschoolchildrenthatthespreadofAIDSinmanyAfricancountriesmeantthatmotherswhoareHIVpositive“can’tthenbreast-feedbecausethebabywillthenruntheriskofgettingAIDS.”Afewdayslater,themediareportsweredescribedasmisleadingand,further,NestléwasnotseekingtogivetheimpressionthatHIV-infectedmothersshouldnotbreast-feed.

InresponsetoaneditorialcriticalofNestlé’sallegedpositiononHIVandbreast-feedingthatappearedinanissueofanewsletterproducedbyaNestléshareholders’association,aNestlévicepresidentsaidthattheassociationrepresentedonlyabout100outofthe100,000shareholdersandhasnoclaimwhatevertospeakforNestlé.HesaidthecompanyisinfullagreementwiththeofficialWHOrecommendationswhichnotethatthelargemajorityofbabiesbreast-fedbyHIV-infectedmothersdonotbecomeinfectedthroughbreastmilkandwhichemphasizesthatwheretheprimarycausesofinfantdeathsareinfectiousdiseasesandmalnutrition,breast-feedingshouldremainstandardadvice.

Regardingquestion5inthetext,itwillbequiteimportantforNestlétocooperatewiththelocalhealthandgovernmentofficialsINEACHCOUNTRYSEPARATELYinordertodeterminethebestapproachtohandlingtheAIDS/infantformulaproblem.Eachcountryhasitsownsetofproblemsandcircumstancesandanypromotional/advertisingprogramsshouldbedevelopedwithmuchcare.LOCALIZATIONwillbekey.

FilmsAvailable

ThemostcompletediscussionoftheNestléinfantformulacontroversyisnowavailableinaCD-ROMformatfromtheCouncilforEthicsinEconomics,125E.BroadStreet,Columbus,OH43215–3605,(614)221-8661,FAX(614)221-8707,

.

IntotheMouthsofBabes(CBSNews,color,35mm)isavailablethroughtheNationalCouncilofChurches,Room860,475RiversideDrive,NewYork,NewYork10015.ItislikelythatalocalchapterofINFACT,oralocalthirdWorldResourcesCenter,willhaveacopy.

BottleBabies(Dir.PeterKing,TeldokFilms,1975color,26min.)isthefilmmentionedinthecase,whichheightenedawarenessoftheissue.Itisobviouslyoriented“against”thecompanies.

SomecurrentarticlesonthiscontroversialsubjectthattheProfessormaywanttohavestudentsreadinpreparationforthiscasediscussionare:

“TailorsMarketingofInfantFormulatoMeetWHOCodeDemands,”BusinessInternational,April30,1982.

JamesC.Baker,“TheInternationalInfantFormulaControversy:ADilemmainCorporateSocialResponsibility,”JournalofBusinessEthics,#4,1985,pp.181–190.

ThomasV.Greer,“TheFutureoftheInternationalCodeofMarketingofBreast-milkSubstitutes:TheSocio-LegalContext,”InternationalMarketingReview,Spring/Summer1984,pp.33–41.

Twopublicationsavailablefromthecompanyareexcellent.Theyare:“TheDilemmaofThirdWorldNutrition,”updated,1985and“TheRoleofInfantFormulainDevelopingCountries:TheResolutionofaConflict,”1985.Bothoftheseareavailablefrom:CoordinationCenterforNutrition,Inc.1025ConnecticutAvenueNW,Suite707,Washington,DC20036–(212)775-0180.

AlixM.Freedman,ToCurtailInfantFormulaInThirdWorld,TheWallStreetJournal,January30,1991,A1.

AlexM.Freedman,AmericanHomeInfant-FormulaGiveawaytoEnd,TheWallStreetJournal,February4,1991,p.B4.g

BradleyJohnson,AdsPitchBreast-Feeding,AdvertisingAge,December2,1991,p.40andVitalSigns:AMedicalRenegadeStandstheSystemonItsHead;TheBoycottisBack,Health/PacBulletin,Fall1990,V.20,No.3,p42.

PrakashSethi,MultinationalCorporationsandtheImpactofPublicAdvocacyonCorporateStrategy;NestléandtheInfantFormulaControversy(Norwell,MA:KluwerAcademicPublications,1994)

IfyouareabletoshowoneofthevideosaboveanexcellentcontemporaryarticlearguinginfavorofNestléandtheotherinfantformulamakersis“TheCorporationHaters,”byHermanNickel,Fortune,April17,1980.Thecombinationofreadingthisarticlethenviewingthevideomakesfortheliveliestclassdiscussions.

WealsorecommendaseriesofarticlesonthetopicintheJournalofMacromarketing,SpringandFall1988andSpring1988.TheacademicargumentsintheFall1988areperhapsthemostinteresting:MaryC.GillyandJohnL.Graham,“AMacroeconomicStudyoftheEffectsofPromotionontheConsumptionofInfantFormulainDevelopingCountries”(Spring1988);JeanJ.Boddewyn,“CommentsonGillyandGraham’sStudy”(Fall1988);BillMeade,“CommentsonGillyandGraham’sStudy,”(Fall1988);andGrahamandGilly’s“Rejoinder”(Spring1989).ThesearticlesarealsopartofMeloanandGraham’sInternational&GlobalMarketingConceptsandCases,Irwin-McGraw-Hill(1998and1995).

BarryMeier,“AnglicansMullNewSteponBabyFormula,”NewYorkTimes,3/3/97,page8,column4.

“Mother’sDilemma:ASpecialReport,”NewYorkTimes,6/8/97,business/financialdesk.ThisarticleprovidesmoreinformationontheHIVaspectoftheinfantformulaproblem.

Nestlehasnotbeenabletoescapeinfantformulacontroversy,asrecentlyas2018:

/business/2018/feb/01/nestle-under-fire-for-marketing-claims-on-baby-milk-formulas

Backtothebottle?

NAIROBI

MULTINATIONALfoodcompanieshavelongbeenunderattackforpushingmilkpowderatmotherswhodonotneeditandcannotaffordit.Buttheanti-bottle-feedinglobbyisnowinaquandary.Evidenceisgrowingthataroundhalfthe3.8millionchildreninfectedwithHIVcontractedtheinfectionattheirmothers’breast.

Inrichcountries,HIV-infectedwomencanbetoldtobottle-feedtheirbabies.Buttheproblemismorecomplicatedinthedevelopingworld,whereover90%ofchildinfectionsoccur.Therisksofbottle-feedingremain—breast-milkprotectsinfantsfromallmannerofotherinfections—andsodoesthecost.

Moreover,ineventhemostheavilyinfectedareas,70%ofmothersdonotcarrythevirusand,forthem,breast-feedingisstillbyfarthebestoption.Thedifficultyisthatthevastmajorityofpregnantwomeninthedevelopingworldhavenoideawhetherornottheyareinfected.Promotersofbreastfeedingworrythatlargenumbersofhealthywomenwillswitchtobottle-feedingjustincase.Othersfearthatifbottle-feedingbecomesabadgeofinfection,evenwomenwhoknowtheyareinfectedwillcontinuetobreastfeedtoavoidbeingstigmatized.

Manyofthemhavenoalternative.Evenwheremothershaveaccesstocleanwatertoprepareartificialmilk,ayear’ssupplyofpowderedmilkcancostover$700,morethantheGNPperheadinsomeheavilyinfectedcountries.Ironically,thecostispushedupbyhightaxes,imposedtodiscouragebottle-feeding.

Afewcountries,suchasThailand,offertestingtoallpregnantwomen,andgivethosewhoareHIV-infectedfreemilkpowder.ButinAfrica,whereawomanislikelytobepregnantthreetimesasoftenasinThailandandwhereHIVinfectionrangesupto25%ofthepopulationagainstThailand’s2%,