...Nestlé should find a way to become involved with the Baby-Friendly Hospital Initiative, like sending in donations or even working with the organization to help. - Nestlé should remain a member of Infant Food Manufactures (IFM). - Nestlé should keep its internal Nestlé instructions to Nestlé employees updated and up to standards to avoid any more problems. - Nestlé should continue their efforts on social responsibility by sponsoring events at international medical and nutrition conferences, and events like celebrating the Canadian Year of the Family, and funding research on infant feeding. - Nestlé should be careful with their pricing strategy and make sure they are selling their products in third world countries for reasonable and affordable prices for the people, and they should maybe consider selling the products for even less in these places. Nestlé also needs to learn from its mistakes and not be so neglectful and they should respond to issues in a reasonable amount of time, because when they don’t they look irresponsible and careless. - Nestlé needs to do what ever it can to reposition itself as a force of good. 2. What could Nestle have done to have avoided the accusations of “killing third world babies” and still markets its product? One thing that Nestlé could have done to have avoided the accusations of "killing Third World babies" and still market their product is to develop a (global) marketing campaign designed specific to the country, supporting...
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...Final project Marketing Mangement Submitted to: Sir Zeshan Shaukat Submitted By: Ghulam jilani Zeshan Naseem Zeshan Munir Zeshan javed UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE “Cerelac is a reliable and innovative product and a symbol of commitment. Cerelac is an ideal infant starter and excellent source of energy” TABLE OF CONTENTS 1. Executive summary ……..…………………………………….....4 2. Selection of Nestle cerelac……….……………………………....6 3. Nestle company intro…….………………………………………7 4. Nestle financial data……………………………………………..8 5. Nestle products………………..…………………………………9 6. Nestle Cerelac……………………………………………..….…10 7. Situation analysis………………………………..………………13 8. Market opportunities and issues…………………………………14 9. Objectives…… ……………………………………………….…15 10. Marketing strategy………………………………………………15 11. Target marketing…………………………………………………15 12. Positioning…… …………………………………………………16 13. Marketing Mix……....……………………………………………19 14. Product……… …………………………………………………..19 15. Price………………………………………………………………20 16. Promotion……………….……………………………………..…20 17. Place……………………….……………………………………..21 18. Conclusion………………………………………………….……20 EXECUTIVE SUMMARY Business is a never ending race and in the fast running world of business, there is variety...
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...Measurement and Decision Making Prof. Stanley Self Special Order Earth Baby Inc. (EBI) recently celebrated its tenth anniversary. The company produces organic baby products for health-conscious parents. These products include food, clothing, and toys. Earth Baby has recently introduced a new line of premium organic baby foods. Extensive research and scientific testing indicate that babies raised on the new line of foods will have substantial health benefits. EBI is able to sell its products at prices higher than competitors’ because of its excellent reputation for superior products. EBI distributes its products through high-end grocery stores, pharmacies, and specialty retail baby stores. Joan Alvarez, the founder and CEO of EBI recently received a proposal from an old business school classmate, Robert Bradley, the vice president of Great Deal Inc (GDI), a large discount retailer. Mr. Bradley proposes a joint venture between his company and EBI, citing the growing demand for organic products and the superior distribution channels of his organization. Under this venture EBI would make some minor modifications to the manufacturing process of some of its best-selling baby foods and the foods would then be packaged and sold by GDI. Under the agreement, EBI would receive $3.10 per jar of baby food and would provide GDI a limited right to advertise the product as manufactured for Great Deal by EBI. Joan Alvarez set up a...
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... Gerber is just as healthy and good for parents and baby if not better. There has been so much development with Gerber and they are doing not just over process food for baby and promote raising a healthy baby. Gerber is still healthy and nutritious for baby. Gerber is more than just an older brand that been around for a long time. The objective is for people to remember that Gerber is just as healthy and good for parents and baby if not better. Gerber is going to try and reach all types of parents and their families through out this campaign. Research has been conducted to find out average income and ages in households that we are targeting to help with price points. A thorough market analysis helped us learn whom we are going to get more involved with. Even though Gerber is already known for targeting parents and their young children we want this campaign to specifically include first time parents, parents that are expanding the family, stay at home parents, organic parents, parents on a budget, and parents who want to be as educated as possible about their children health and growth. We want to use many means of communication during this campaign to promote purchase motivation is that Gerber is more than just a familiar face they have a product that is right for every type of parent. We will mix the old and new with this campaign we want families to think “ Growing Up Gerber” for years to come along with the Gerber Baby original picture. All this will be accomplished with...
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...What is your baby eating? Purpose: marketing research is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem. This research base on recording baby feeding information to help mother and farther choose the right baby food. What’s your name? _______________________________ Mother Farther Baby’s name __________________________________ Date _________________________________ What kind of milk you feeding your baby? breast milk cow’s milk: (Kind: whole, Vitamin D low-fat skim evaporated) formula goat’s milk Other ________________ If you feed your baby formula, check which type you use and tell us how you mix it. Concentrate: ________ ounces of water mixed with 1 can (13 oz) of formula. Powdered: ________ scoops of powder mixed with _____ ounces of water. Ready to feed: Do you add water? Yes No How old is your baby? ____________ How often do you feed your baby? Breastfeed: every _____ hours. How many minutes is total feeding? _____ Bottle feed: every _____ hours. How much does the baby drink each time? ______ ounces Does your baby drink water? Yes No If yes, how many ounces every day? _____ Do you feed your baby any puree or baby foods? Yes No If yes, how? in bottle by infant feeder by spoon Which flavour of puree you will choose for your baby? (You may choose...
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...Baby foods are basically depleted through all shopping places for example in supermarkets, grocery stores, mass merchandisers, and some of direct marketing. Opportunities: The demand in baby food industry in constant. Except United States, there are great opportunities in international markets like European, Asian, and South American. Especially in countries with a higher income and bigger population. Threats: The demanding birth rate in recent years and the declined consumption of baby food per capita grant to a decrease of domestic volume sales. The overall baby food industry decreased about 7% in 1997 fiscal year. Baby food industry is facing an increasing requirement for quality products and innovation. There are several ministry regulations for the standards of pesticide and other ingredients. Buyers tend to be very diplomatic to suitable feeding nutrition and other concepts such as sugar, salt, modified food starches, etc. Gerber’s extensive consumer research shows that a growing number of parents prefer baby foods without added starches and sugar. By competition being compared to other similar foods, baby foods higher priced. Pricing and promotion are very important methods employed by firms in this specific industry. For example, the companies Gerber and Beech – Nut all have an aggressive expenditure in promotion movement. Due to the aging of birth percentage and at the same time comprehensive international opportunities, the tournament in this industry is...
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...members about the issue to get better understanding and consult with his legal advisers for the solution of the problem. Beech-Nut Nutrition Corporation: Company was founded in 1891 as a purveyor of smoked meats. Then diversified the business and entered into the business of selling food concern such as Life Savers, Table Talk pies and Tetley Tea. It was taken over by Squibb a large pharmaceutical and health care products company in 1969. In 1973 baby food division was taken private under the name of Beech-Nut by a small group of Pennsylvania businessmen led by lawyer Frank Nicholas. Nicholas as CEO tried to build the company image as provider of natural foods under the name of “Mr. Natural” and removed added salt and sugar from the Beech-Nut products. Due to financial problems Nicholas decide to sell the company in late 1970s. In 1979, world largest food company Nestle, S.A purchased Beech-Nut for $35 million. After acquisition Nestle provided an additional $60 million to upgrade the 80-years old Canajoharie plant and increase the marketing budget. Nestle also renamed the company “Beech-Nut Nutrition Corporation” to reflect its commitment to nutrition. By 1981, Beech-Nut was primarily a baby food company with sale of $79 million on about 14 million cases of product. Its...
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...For more than 20 years, Nestle Alimentana of Vevey Switzerland, one of the world’s largest food-processing companies, has been the focus of an international boycott involving the death of Third World Infants as a result of their unethical advertising, marketing and sale of infant feeding formula to incapable mothers. In this case, Nestle was accused of hard-selling their products to mothers in Third World countries who were incapable of the proper use of the products, and encouraging them to use powdered milk formulas as a substitute for breastfeeding. As a result, the increased use of the product caused malnutrition and mass deaths of babies in developing countries. The controversy began to arise in the 1960’s when breastfeeding rates rapidly declined as infant food companies began to expand their markets into developed countries. Nestle was first charged with the allegations by the Pan American Health Organization, beginning the start of this ongoing, international boycott. Then in 1974, a 28-page report published by the Third World Working Group called “Nestle Kills Babies,” suggested that because of their unethical and immoral selling practices, Nestle was a major contributor to the death of Third World infants. Because of these allegations, the Infant Formula Coalition charged Nestle on multiple allegations. Many of the charges that Nestle faced revolved around the fact that their advertising and promotion tactics for infant formula discouraged breast feeding and encouraged...
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...Federal Trade Commission seeks a preliminary injunction pursuant to Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b), to enjoin the proposed merger of the baby food divisions of H.J. Heinz Company and Milnot Holding Corporation ("Beech-Nut"). . . . I. BACKGROUND A. Market overview Four million infants in the United States consume 80 million cases of jarred baby food annually, representing a domestic market of $865 million to $1 billion. There are only three major manufacturers and distributors of jarred baby food in the United States: Heinz, Beech-Nut, and Gerber Products Company. Gerber is by far the largest domestic manufacturer. It enjoys, and has enjoyed for some 40 years, a dominant market share that has recently grown to between 65 and 70 percent. The Gerber market share is now 65 percent, the Heinz share 17.4 percent, and the Beech-Nut share 15.4 percent. . . . Heinz's domestic baby food products are manufactured at its Pittsburgh, Pennsylvania plant, which was recently updated at a cost of $120 million. The Pittsburgh plant now operates at 40 percent of its production capacity and produces 12 million cases of baby food annually. . . . Beech-Nut manufactures all of its baby food in Canajoharie, New York, at a manufacturing plant that was built in 1907 and began manufacturing baby food in 1931. The plant is not technologically current. Beech-Nut submitted proof that it would be prohibitively expensive to make further improvements in the Canajoharie plant;...
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...Id:0147217 MG660- Strategic Marketing Prepared for Professor Jorge Zavala-Vinces 1. If you had been an executive with Nestlé, would you have changed your marketing approach after the boycotts began? Nestlé’s marketing tactics in promoting the use of infant formula in Third World countries wasn’t moral. Nestlé was not acting within the boundaries of moral standards. Every corporation must understand and realize the corporate ethics and responsibilities they should have. The problem was that Nestlé used unqualified sales girls, the distribution of free samples, marketed to people who were incapable to fulfil the minimum requirements for giving formula safely to the baby, and the association of bottle-feeding with healthy babies to promote the use of infant formula to mothers who would have been better off breast-feeding their babies. The first Nestlé boycott in 1977 led by Infant Formula Action Coalition (INFACT) had a large impact on Nestlé’s revenues. Their products were boycotted in the U.S. to end the promotion of infant formula. This was a small part of the major problem which is to improve total infant nutrition throughout the Third World that must be resolved on a global basis if the health of babies in the developing nations is to be improved. If I had been an executive with Nestlé, I would have changed the marketing approach after the boycotts began. A possible solution to Nestlé’s unethical use of marketing is write the proper way to...
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...In 1981, when Las Hoyvald join Beech-Nut, the company was in financial trouble. In the competitive baby food industry, the company was a distant second behind Gerber, with 15 percent of the market. Although he was new to Beech-Nut, Hoyvald had wide experience in the food industry, and his aim, as stated on his resume, was “aggressively marketing top quality products.” In June 1982, Hoyvald was face with strong evidence that Beech-Nut apple juice for babies was made from concentrated that included no apples. The concentrated was bought from the supplier of the low-cost apple concentrated, Universal Juice Company since 1977. First investigation by two employees of Beech-Nut showed that there are presence of corn syrup, but the Vice President of Beech-Nut, Mr. Lavery dismissed the report. A turning point occurred when investigation by private investigator showed that Universal plant only produced sugared water and invited Beech-Nut to join a suit against Universal. Some of the executives have urged Hoyvald to switch the supplier and recall all the apple juice on the market, but he was hesitant because he claimed that even if the apple juice was bogus, no evidence that the juice was harmful. Switching supplier required Beech-Nut to pay additional cost of $750,000 for the juice and recalling all the apple juice on the market would cost about $3.5 million and means that they are admitting that the company has sold adulterated product. He also said that it tasted like...
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...Creativity and innovativeness of an entrepreneur pushes the business to the next level. These are the scenarios that Petite Palate Company had to deal in the with U.S baby food industry when it established its operations in the year 2006. The company was set up in Long Island City, New York. Petite Palate specialized in producing baby food, and targeted Northeast and Midwest markets of the United States. At the time the company started its operations, the market had become significantly competitive due to the number of players that had already established operations in prior years. On the same note, the enterprise was essentially a gourmet baby food company that only pursued this line of production, unlike other players who had mixed lines of production for diversity purposes (Lawrence, Lyons & Wallington, 2012). The dedication by the enterprise to gourmet baby food constrained its operational strategies in terms of diversity. The baby food industry and the markets in this industry were experiencing an ever growing trend in terms of operational business enterprises and baby food and baby formula varieties before and during the time Petite Palate started its operations. As a result, competition in the targeted markets was relatively stiff. Petite Palate had to compete against Gerber Baby Food, Beech-Nut Baby Food, Enfamil, and Carnation Formula among others. Most importantly, capturing Gerber customers was a significant operational challenge for Petite Palate. This was due to...
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...Company A. Background of the Company: Gerber was founded in 1927 in Fremont, Michigan by Daniel Frank Gerber, owner of the Fremont Canning Company, which produced canned fruit and vegetables. At the suggestion of a pediatrician, Gerber's wife Dorothy Gerber began making hand-strained food for their seven-month-old daughter, Sally. Recognising a business opportunity, Gerber began making baby food. By 1928 he had developed five products for the market and six months later, Gerber's baby foods were distributed nationwide. The brand eventually became a major company in the baby food industry, offering more than 190 products in 80 countries, with labeling in 16 languages and controls eighty-three percent (83%) of the baby food market in the United States. In 1994 Gerber merged with Sandoz Laboratories. Two years later, Sandoz merged with CIBA-Geigy to form Novartis, one of the largest pharmaceutical companies in the world. In 2007 Gerber was sold to Nestle for $5.5 billion. In 1960 Gerber started selling its baby food in glass jars, which often found new life as household storage, especially in home workshops. Soon after, other items such as pacifiers, , baby bottles, and small baby toys were introduced. Source: https://en.wikipedia.org/wiki/Gerber_Products_Company B. Problem Encountered and Quamet Solution Used or Applied Gerber used decision tree analysis in deciding whether to continue using the plastic known as poly-vinyl chloride or, more commonly, PVC...
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...Andersen In April 1981, Andersen was installed as the new president and CEO of Beech-Nuts. It was Andersen’s job to make Beech-Nut profitable. Nestle management had assumed Andersen that he would always have another job at Nestle even if he didn’t succeed in turning Beech-Nut around. Oct 1981, Andersen forwarded the full set of Nestle quality guidelines to Storer and others at the Canajoharie plant. He followed up with a letter asking whether Beech-Nut was in compliance and received a memo assuring him that Beech-Nut’s operations were consistent with the Nestle guidelines. Andersen had done a lot to improve the company and its products. The first was to emphasize the nutritional value of Beech-Nut’s baby food. The second approach was to segment the baby food market. After Friday Incident Andersen called McIntosh first to get a better feel for the incident before reaching Storer. Although Andersen and Storer were cordial with each other, Andersen sensed that Storer liked to run the plant without interference. He had a number of questions, since he knew little about apple concentrate, other than that it went into the company’s apple juice. He had no sense of the supplier. He did not know very much about methods of testing for apple juice adulteration. After he finished talking with McIntosh, he was feeling better about the situation and reassured that concentrate supply had been regularly tested. He trusted McIntosh to handle these matters and...
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...develop efficiency ? Supporting Argument #2 G -100% Heinz -40% Beech-Nut – 45% Lacks a sufficient shelf presence or All Commodity Volume (ACV). Heinz and Beech-Nut claim new product launches are cost-effective only when a firm's ACV is 70% or greater 6/16/2012 EMT 606 - Heinz - Beech-Nut Merger Case 4 Is the Merger necessary to develop efficiency ? Flaws in argument All that the chart plotted was revenue against ACV ,Because the graph did not plot the profitability , does not prove that 70% ACV is required for a launch to be "successful" in an economic sense. The number of data points on the chart was few; they were limited to launches in a single year. They involved launches of all new grocery products rather than of baby food alone. 6/16/2012 EMT 606 - Heinz - Beech-Nut Merger Case 5 Arguments Supporting AntiCompetitiveness of Merger Pre-Merger Company Gerber Heinz Beech-Nut Other Total Market Share 65% 17.4% 15.4% 2.2% 100% HHI 4225 303 237 5 4772 Post-Merger Company Gerber Heinz & Beach-Nut Other Market Share 65% 32.8% 2.2% HHI 4225 1075 2 Total 100% 5302 Increase in HHI = 535 6/16/2012 EMT 606 - Heinz -...
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