Necessity Is the Mother of Invention

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Nestlé: The Infant Formula Controversy Global Marketing (MKT 690) Professor Godwin Ariguzo Presented by: Jillian DeSousa Kerri Levesque Aziza Akilah Williams August 6th, 2008 Background Nestlé Company started off from a single man’s idea, and developed into a giant corporation. Nestlé’s headquarters are located in Switzerland, but the company maintains factories and operations in almost ever country in the world. The company has also been increasing in size each year. In addition to this increase, Nestlé is also increasing its variety of product offerings. Nestlé’s business strategy encourages product growth through innovation and renovation. This strategy has allowed the company to develop different products in various fields including baby food, dairy products, prepared foods and beverages to name a few. The company has created Nestlé Nutrition, a global business organization designed to strengthen the focus on their core nutrition business. Strengthening their leadership in this market is the key element of the company’s corporate strategy. Further, Nestlé Nutrition aims to deliver superior business performance by offering consumers trusted science based nutrition products and services. Nestlé’s goal is to maintain, preferably to increase its market share and sales volume in order to have stability in the market. (Nestlé adopts a sales oriented pricing scheme). If Nestlé has an increase in sales volume they will have an increase in market share. When Nestlé maintains or increases its market share, their products will be more widely used by consumers. This will then increase share prices and stock, as Nestlé will be seen as having a stable position when compared to competitors in the same market. Problems and Issues Problems with Marketing Techniques Nestlé’s marketing tactics in promoting the use of infant formula in
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