The marketing of infant formula

1. The marketing of infant formula in less developed countries Presented by PRASHANT JAIN International Business

2. What is infant formula? Infant formula is an artificial substitute for human breast milk, intended for infantconsumption. Today, most infant formulas are based on either cow milkor soy milk. Some formulas, for infants with special dietary needs, are highly modified and may contain neither cow milk nor soy.

3. Case facts 1920 –infant food formula was developed. 1950- after world war II the infant formula sales increased rapidly. 1974- Decline of sales infant food formula. Multi national company got benefits from LDC by, The lack of informationor necessary skills to evaluate the multitude of new products that are introduce by the MNC’s. There is no competitor in the market. There is no comparative information in the countries. Deficient institutional mechanism for inspection and regulation for MNC’s product and service.

4. Producer of infant formula in world wide Ross laboratories Mead Johnson Nestle Abbot

5. Business strategy USA birth rate Declined in 1960 so they penetrate the market of Canada and Europe. The MNC target those countries where Export market is easy .These are Puerto Rico, Jamaica, Bahamas etc. In this way they enter to LDC markets

6. Reason behind the growth of sales of Infant formula in LDC. (1) Social cultural changes in LDC : a) Influence due to urbanization. b) Need to mobility in employment. c) High disposable income of people. d) Breast is considered as a sex symbol. e)Restriction in work place.

7. 2.Health professional doctors, nurses & clinic workers endorse the use of infant formula. 3. Promotional activities of infant formula manufactures. Hospital & clinics receive free samples of infant milk bottles. Distribution of “Vaccination Cards” which advertise infant formula and baby care booklets , which recommend bottle feeding.

8. Illegal practices of MNC’s in LDC to promote their infant formula They target illiterate or semi-illiterate women by using pictures. Manufactures are only describe about bottle feeding without mentioning breast feeding They recommend “ Mixed Feeding” where bottle feeding used as a supplement Breast feeding should be diminished to included solid food in to the baby’s diet after three months

9. They uses free gift & samples in country’s like Ibadan,Nigeria etc. Supply feeding bottles to poor women. Promotion through medical profession. Half or lack of information to mother.

10. Breastfeeding is linked to a lower risk of these health problems Stomach viruses Diarrhoea Respiratory infections Atopic dermatitis Asthma Obesity Diabetes Childhood leukemia Sudden infant death syndrome or SIDS Necrotizing enter colitis, a disease that affects the gastrointestinal tract in pre-term infants

11. How does manufacturer address the issue after controversy? International council of infant food industries(ICIFI) instruct member to adopt a code of marketing ethics. Provide product information & labeling about the product. Elimination of hospital promotion. Adoption of own code of ethics by the MNC’s (like-Abbott)

14. Contamination of infant formula Main three firms has tested positive for melamine contamination. These three main firms are responsible for 90% of infant formula in the US, Abbott Laboratories Nestle Mead Johnson This contamination leads to illnesses and kidney failure.

15. Summaries of total process how does the game starts by the MNC’s to exploit LDC’s market Nestle, Mead Johnson, Abbott laboratories provide to free milk to maternity hospitals in the third world. Ensuring that babies are routinely bottle fed when new borns are given bottles they are less able to suckle well.

16. This makes breast feeding failure likely. The baby is then dependent of artificial milk When the mother & baby leave the hospital the milk is no longer free. Once home, parents are forced to buy more milk because the milk is so expensive the baby is not fed enough.Which is 50% of family’s food cost.

17. This leads to malnutrition The water used to mix the formula is often contaminated. Every 30 seconds a baby dies from unsafe bottle feeding in the third world. Every day some 3000 to 4000 babies die.

18. 1.5 million babies die every year unsafe bottle feeding But companies are know that unless they get babies on the bottle, they don’t do business.