MARKETING RESEARCH

Marketing Research



Marketing Research

Introduction to Assignment

This assignment seeks to identify and evaluate the marketing activities of an organization that led to certain ethical considerations for itself and the society. For this purpose we chose to discuss the ethical challenges and dilemmas faced by Nestle in marketing for its Instant Formula product as a replacement to breast-feeding in Third World countries. The reason why we chose to discuss Nestle is that it is one of the most controversial, commercial organizations that have created ripples in marketing research and promotions due to its objectionable or ethically-questionable marketing activities.

Nestle is one the largest food companies being also a Swiss conglomerate. The most controversial and questionable aspect of Nestlé's advertising and marketing promotional activities was its sale and distribution of the baby formula in Third World Countries during the 1970s (Campbell, 1985, pp. 33-37). this baby formula controversy created many issue for nestle in their marketing and reputation as a brand, raising concerns over whether the brand is following ethical principles and code of conducts while promotion the products. For such a hugely famous brand as Nestle, this issue could not be taken any non-seriously. The brand realized there are many long-term dilemmas and controversies attached to the brand if this ethical concern is not resolved. However, the brand is still facing repercussions of the issue and facing quite a number of arguments and threats to the promotion of the product over other conventional methods of feeding the baby.

The crux of the ethical challenge faced by Nestle is that the company faced ethical dilemmas as soon as they began promoting their baby formula as a viable breast-feeding alternative. This gave rise to a heated debate whether the brand is doing the right thing by substituting the naturally-nourishing and nutritionally-enriched breast milk with a preserved product in countries where there is less awareness of the consequences of such substitutions. In addition to this, the brand also faced accusations for being responsible about the deforesting of Indonesian forests. The two major ethical problems that we will discuss in this assignment, hence includes:

Marketing of infant formula in developing countries as a substitute for mother's milk, and

Clearing of rainforest for palm oil production for chocolate bars.

Outline of Company Background and Ethical Issue

Nestle is one of the largest food corporations in the world. The company was founded in 1867 by Nestlé Hernri and has over 130 years in Germany where it employs around 13,000 people (www.nestle.com). As a corporate logo, he used his family crest. His family name means a "little nest". The family coat of arms with the parental care was appropriate for its first product and is still a corporate emblem. Nestlé has been successful to recognize the different needs of people of different continents. This response to the local requirements and preferences has made them successful. The broad portfolio has definitely helped them to stay firm in their position of world's biggest food production giant ...