Tag Archives: Free Lunches

ARE INFANT POWDER MANUFACTURER THE ONLY ONES THAT PRACTICE AGGRESSIVE MARKETING VIA HOSPITALS?

Infant formula manufacturers provide such sponsorships and/or payments to private hospitals for participation in their milk rotation systems, according to an inquiry report by the Competition Commission of Singapore (CCS) released on Wednesday (May 10). Milk formulas are provided to infants who need it in hospitals on a rotation basis. But the report found that milk formula manufacturers could ensure their products stayed on the rotation for longer periods if they provided better sponsorship support to the hospital or paid “rotation fees”. Formula companies have invested significant efforts and resources into hospital marketing activities to gain a “first-mover” advantage, given that the majority of parents who use formula milk in hospitals do not have a preferred brand and tend not to switch brands after leaving the hospital, the report said.” Perhaps the CCS could also look into what other types of businesses “provide such sponsorships and/or payments to private hospitals” and “have invested significant efforts and resources into hospital marketing activities”? Because at the end of the day, perhaps the moral of the story may be that there is no such thing as a free lunch (or free milk power), as it is apparently evident now that the consumer may end up paying more – kind of like having some of your future lunches stolen.

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