Consumer Consumption Nestle Boycott - Essay Example

NESTLE BOYCOTT Introduction Boycotting as an act and process has remained a sophisticated, proactive and coercive tool that has generated a point of argument among political, religious, social, scholars and business oriented activist and amateurs on its implication and consequences in the contemporary human way of life1. Thus, boycotting has subjectively been used in different ways to express outrage. Scholars define a boycott as a voluntarily and abstaining act provoke the users to refrain or stop from utilizing, dealing or buying product or service as an expression of protest or activism for their primary and secondary reasons2. For example, at a firm-level, the firm workers initiative advocacy boycotting campaign as a quick response to address the form policies from a corporate social responsibility approach to trigger organizational change. Conversely, boycott has increasingly been used by the NGO, companies, social workers and other corporate interest groups as a weapon of choice as a punish or non-punitive to change a specific organizational behavior that meet a particular global standards. For example, the recent consumer boycotts are the Nestlé’s breast milk substitutes marketing and KFC’ alleged mistreatment of chicken3. Analysis presented in this paper is helpful in understanding the voluntary and anti-consumption boycotting behavior for the 1977 Nestle’ boycotting campaign exposing out the impacts and consequences of the boycott against consumption marketing for the breast milk substitutes. Further analysis reveals out the Nestlé’s internationalization, competitiveness, and entry marketing strategies while examining the possible potential determinants of the boycott campaigns, as well as boycott participation. On a broad examination, the paper exposes out the role of media in impacting the causes and the effects of products boycotts in a specific market environment, as well as the political preference for particular product consumption 4. Different types of consumers, boycotts, and their definition are analyzed in details in the paper revealing out all the considerations on the effects and the impacts of the consumers boycotts in reference to the Nestle boycott evaluations. Lastly, the key strategic elements that may be have been influenced by the Nestle boycott are analyzed providing a reliable and sufficient recommendation of the factual evidence and key findings obtained in the research and discussions5. Nestle Boycott Descriptive Summary Boycott behavior in memories of Captain Boycott where workers had an ostracism campaigns against his approach on the Irish land corn harvesting and his postman refusing deliver emails to the workers has significantly changed over time since the name was derived. In most cases, boycotts are expressive and instrumental movements that are accompanied by moral acts with aims of changing the corporate target behavior as a weapon of the weak6. In reference to the Nestle boycott, the Nestle boycott campaign was launched in 1977 in the United States against aggressive, competitive marketing of the breast milk substitutes of a Swiss-based Nestle corporation. The Nestle boycott organizers claimed aggressive marketing of the breast milk substitute by the Nestle Corporation, which is also the maker of Nescafe of the babies’ foods throughout the globe portraying a greater health risks to the infants. The Nestle marketing promotion strategies that used the terms ‘’natural start’, ‘gentle start’ and ‘protects’ babies’’ was seen as an act of marketing aggressiveness that breached the international marketing standards 7. Conversely, the Nestle boycott organizers provoked the consumers’ activism and a boycott by significantly changing their marketing decision-making, internalization and the effects of media on marketing. For example, Nestle promotes babies milk substitute that has scientifically been opposed accompanied by health compared to the natural milk for the infants, as well as increasing family poverty levels 8. The Boycott Impacts on Nestle The Nestle boycott had a significant impact on the corporate market entry strategies, business competitiveness, internalization as well as the corporate reaction to the environmental and other determinants that promoted the Boycott progression. The Nestle boycotters used the consumers boycott as their primary weapon to create and instigate change while shaping or constraining their corporate targets with the aims of winning the concessions. In this regard, the boycotters used international marketing standards of the consumers’ quality standards and protection to challenge the Nestle corporation marketing strategies in relation to its 4Ps of competitive advantage. For this reason, the boycotters pulled media attention and consumers’ boycotts and activist to put the Nestle into transformative states while exhibiting reduced sales and declined public reputations.9 However, the Nestle boycott has a negative implication in the consumer’s consumption behavior. Based on the consumerism theory, the Nestle boycott generated a form of altered consumers’ behavior as unwelcome trait but had a greater implication in attracting media or public attention in which the Nestle corporate could market its products. For example, the Nestle boycott consumers’ behavioral management decisions were uncontrollable since the corporate reputation; vulnerability of the corporate brands, as well as the corporate social responsibility, was significantly affected by the public attentions 10. In this regard, the consumers’ choices and preferences or the Breast milk substitute purchasing power was significantly affected as most consumers value the risks than the benefits obtained. Motivation for the Nestle Boycott Participation The Nestle boycott was greatly accompanied by the variables or the determinants that influenced the breast milk substitutes individualized consumer’s boycotting and purchasing decisions. For instance, based on the consumer’ products consumption theory, the Nestle consumers boycott participation represented a greater but complex emotional expression of a form of individualized dissatisfaction. Self-realization and perception towards Nestle products consumption based on the individualized benefits and shared benefits after a successful Nestle boycott motivated the boycotters to participate rather than refraining from the products consumption 11. For example, the Nestle products consumer’s ethical concerns raised the eyebrow in relation to the Nestle corporation business practices forced the customers to change their purchasing and consumption behavior as a result of ethical and moral concerns. Comparatively, the Nestle boycott was affected by the international and political preference originating from the United States and spreading globally as a result of media influences. For example, the British Channel Four and the Mark Thomas Comedy products TV shows in 1999 and the Guardian 2007 Nestle marketing aggressiveness marketing influenced increased consumers and activist participation in the boycott.12 Similarly, the Nestle boycott was significantly accompanied by the consumers’ unwillingness of the boycotters to pay for the boycotted products increased the Nestle boycott participation levels. The role of media in creating a public attention while inflicting the Nestle corporation reputation as well as reducing the business sales increased the Nestle Company’s products boycott participation. The key Strategic Elements Impacted by the Nestle Boycott Based on the corporate social responsibility and performance theories, the Nestle Corporation had to build capacity and accountability in which operates its business. Therefore, the Nestle Company was expected to remain obligated and accountable beyond the legal requirements to maximize long-term benefits to their products consumers while minimizing the potential harms 13. Hence, the conflicts between the Nestle legitimate goal to maximize its market entry and sale promotion while undermining the ethical and social responsiveness of the potential consumers changed the corporation reputation. From a corporate perspective, the Nestle marketing strategies as unethical and malpractice conduct increased the Nestle corporation into a reduced marketplace sanctions immunity rather than rewarding the corporation’s business.14 Conversely, the Nestle Company’s customer’s reflective attitude towards the company’s products branding and purchasing intentions changed promoting customers’ activism. For example, the Nestle Corporation initial market target was to increase or gain the market competitive advantage through imposing unethical conducts to reliable and potential consumers. The buildup of pressure for the Nestle Corporation to practice corporate social and responsibility (CSR) provoked public attention and boycott media coverage demanded high standards of ethical practices as a central component of the firm business competitive advantage.15 In reference to the Nestle boycott, the pressure for the corporation to implement the CSR and accountability for its business practice from the public interest groups and individual activists translated to the Nestle economic consequences. In this regard, the choice of the Nestle Corporation to enter a new market entry by unethical product promotion with the aims of profit maximization, the boycott conducted was to hurt the firm’s profits.16 As a result, the consumers’ preferences on the Milk products substitute affecting the entire market demand structure. Nestles Market Entry Strategy and Internalization Impacts Successful Nestle market environmental implication emerged as the market structure, or market environmental characteristics could create a form of the consumers environmental preferences, where the products consumed, could only of beneficial values rather than causing harm. For example, with a crossed market entry the Nestle Corporation employed unfavorable competitive advantage to exploit the available market. Nevertheless, the second corporation could not easily entire the entire market and guarantee the customers with differentiate and clean products17. However, for the Nestle Corporation boycott case, market structure explication could not be used in that scenario because only the Nestle Corporation was boycotted while the rest of the corporations had imperfect substitute existence with clean products but with low utility. Despites Nestle balancing its economic advantage with an inhibition of free entry to other organization in the international market, Nestle maintains a family branding name where all its products had to carry its branding name. As a resolution for the effects of the boycott, the Nestle company was able to determine its strength and weakness where the Nestle products branding and marketing had maintained within the corporate regulations.18 In this regard, the Nestle Corporation applies diversification mechanisms by moving away from the existing market and product strategically when launching nutrition businesses with aims of reaching different markets rather than sharing the existing demand.19 Boycott Avoidance and Management Nestle entry mode and internalization based on different modes of the foreign market entry, Nestle Corporation, would be characterized as a multi-domestic with a weak global integration but with pronounced local responses. The corporation employs a centralized management structure as well as multi-domestic strategies through a restructuring around the common and major business lines for survival. In this regard, the Nestle Corporation seeks to reap global leverage business.20 Therefore, the Nestle corporation employs direct products exporting entry mode to reach the oversee market environments. Similarly, the company will intend to focus mainly on the internal growth while trying to initiate a significant volume of new products innovations as well as renovating the company’s preexisting breast milk products. Conversely, for the Nestle Corporation to encounter boycotts avoidance and its related management, the Nestle Company must have to invest more in its products and preferences by renovating the existing food products as well as continuously renovating the new one. However, the company has to join in alliances and a joint venture that assists the corporate in building a diverse portfolio that satisfies global leadership and management.21 The corporations have to comply with the international standards through the international value network. In addition, the company has to incorporate government drivers and its unique capabilities to avoid disadvantageous risks from the local companies. However, though the Nestle Corporation strategy does not satisfy the BOS sequence, global consumers forces the Nestle Corporation for internalization22. Therefore, in order for Nestle to control and manage future boycott, it should understand the role of media, understand the issue on the ground as well as maintaining both ethical and CSR requirements and legal requirements. Conclusion Consumer consumption boycott is a complex act and process that can only be achieved through collective bargains. However, although boycotts are used as responsive tool against any form outrage or oppressions, in some cases, boycotts can be used as punitive protest for individualized gain rather than beneficial reasons. Nevertheless, boycotts change the institutions or organizational behavior or policies towards a specific act that may not be present in the users. In reference to the Nestle Boycotts, the boycott had a significant implication in the customer behavior, Nestle corporation economic growth as well as the role of media. Further research should be done to uncover all impacts, limitations and determinants of consumers boycott in relation to Nestle Corporation. References Argenti, Paul A. Corporate Communication. Boston: McGraw-Hill Irwin, 2013. Boga, Semra, and I E. Efeoğlu. "A Case Study on Cross-Cultural Differences." (2015). Holzer, Boris. Moralizing the Corporation: Transnational Activism and Corporate Accountability. Cheltenham, UK: Edward Elgar, 2010. Schmelzer, Matthias. "Marketing Morals, Moralizing Markets: Assessing the Effectiveness of Fair Trade As a Form of Boycott." Management & Organizational History. 5.2 (2010): 221-250. Print. 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