Week 7 discussion response and student response. Nestle’s Creating a Shared Value Strategy.

Week 7 Case Discussion
5 Sources including the case are required
https://www(dot)nestle(dot)com
https://www(dot)ohchr(dot)org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf
http://www(dot)oecd(dot)org/corporate/mne/48004323.pdf
https://www(dot)iso(dot)org/iso-26000-social-responsibility.html
https://www(dot)socialhotspot(dot)org
http://www(dot)triplepundit(dot)com/story/2016/3p-weekend-impact-companies-thriving-under-fortune-500s/24791#
PLEASE USE THE ATTACHED CASE
Please add APA references after EACH question
PART 1
Questions for this Week:
1. What advantages does branding itself as a “Nutrition, Health and Wellness” company offer? Should all companies package their strategies under a catchy title?
Remember to support your answers by citing your source in APA style citations.
PART 2
Please respond to the following discussion post, talk about what you agree with what you disagree with BACK UP YOUR RESPONSE WITH SOURCES FROM THE ATTACHED CASE STUDY OR OUTSIDE SOURCES
MUST FOLLOW APA.
Rutherford Johnson
In the case of Nestlé, branding itself as a nutritious, healthy, and wellness-oriented company is likely a good strategy since it is a food company that is in two key areas that have faced criticism in the past decades, viz., candy/snacks and baby food. As consumers began to demand an increase in health factors in food (especially in advanced/developed countries), Nestlé needed to shift its orientation to match (Porter, Kramer, Herman, and McAra, 2017). That was coupled with studies that linked health problems with specific foods, including candy, further spurring a need for Nestlé to change its model (Porter, Kramer, Herman, and McAra, 2017).

While the opposition to sugary foods began in earnest in the 1990s, opposition to Nestlé’s infant formula began in the 1970s (Porter, Kramer, Herman, and McAra, 2017). Nestlé was accused of discouraging breast-feeding by various activist groups, who even blamed them for infant deaths, particularly in the developing world since many mothers were illiterate (Porter, Kramer, Herman, and McAra, 2017). That hardly helps a corporate image, particularly with regard to being a “healthy choice.” Nestlé did change their model to market their infant formula specifically to healthcare professionals (Porter, Kramer, Herman, and McAra, 2017). Although that was a reasonable operational change, from the public relations/branding standpoint, a marketing campaign that positions the company as a healthy option is likely to be helpful (Delormier, Frohlich, and Potvin, 2009).

Another particular advantage in the case of Nestlé to positioning themselves as a healthy option is that there is apparently a correlation with increased calories and life expectancy (Porter, Kramer, Herman, and McAra, 2017). Greater degrees of development in a country would result in more calories, as well as increased and improved hygiene (Porter, Kramer, Herman, and McAra, 2017). That is true, however, only to a point. After a certain amount of calories, life expectancy appears to be harmed (Porter, Kramer, Herman, and McAra, 2017). Thus perhaps Nestlé’s old model works in developing countries, where increased calories may be beneficial, but not in advanced countries (Porter, Kramer, Herman, and McAra, 2017). Applying multiple models in different markets according to circumstances could seem inconsistent to consumers, shareholders, and government regulators, and thus a good public relations campaign to position that approach as a wise and well-thought-out global health-oriented strategy would seem to me to be a very logical and good idea.

As to whether or not other companies should position themselves this way, it seems to me that it entirely depends. I would say that those companies that were especially major food companies focused on food products that have come under fire for potentially being unhealthy would be well advised to consider a public relations and positioning campaign that would orient them in the public mind as a healthy option – and that logically would have to be backed up by operational changes. McDonald’s, for example, has continuously been reformulating its menu and ingredients apparently to be more healthy and to position itself as a healthy option in light of continuous attacks on the fast food industry (Schröder and McEachern, 2005; Deng, 2009; Bleich, Wolfson, and Jarlenski, 2016). Of course, that’s purely in reference to a health-related slogan. As to slogans in general, I’m not so sure that a catchy slogan is always needed. In my opinion, I think those companies that are well-established, but whose operating model is similarly coming under fire as Nestlé and some of the others in the food industry might find catchy slogans to be beneficial to help reposition themselves in the minds of the public (Mathur and Mathur, 1995). On the other hand, if such slogans are not backed up by actual action, they are logically meaningless and would even perhaps turn the public more against the company and trust what they say even less. If the company does not need to solve a positioning problem or deal with increasing competition (or new forms of competition), then perhaps a catchy slogan is not necessary. I do not particularly think that they are harmful if done right, even if they may not be necessary, but then we are all constantly blasted with so many catchy slogans, vision statements, mission statements, and so on, that sometimes they get lost in the mix, and I think they might lose effectiveness.

REFERENCES
Bleich, S.N., Wolfson, J.A., and Jarlenski, M.P. (2016). Calorie Changes in Large Chain Restaurants: Declines in New Menu Items but Room for Improvement. American Journal of Preventive Medicine, 50(1).
Delormier, T., Frohlich, K.L., and Potvin, L. (2009). Food and eating as social practice – understanding eating patterns as social phenomena and implications for public health. Sociology of Health and Illness, 31(2).
Deng, T. (2009). McDonald’s New Communication Strategy on Changing Attitudes and Lifestyle. International Journal of Marketing Studies, 1(1).
Mathur, L.K. and Mathur, I. (1995). The Effect of Advertising Slogan Changes on the Market Values of Firms. Journal of Advertising Research, 35(1).
Porter, M.E., Kramer, M.R., Herman, K., and McAra, S. (2017). Nestle’s Creating Shared Value Strategy. Harvard Business School Case 716-422, November 2015. (Revised October 2017.)
Schröder, M.J.A. and McEachern, M.G. (2005). Fast foods and ethical consumer value: a focus on McDonald's and KFC. British Food Journal, 107(4).