Nestle Brand Equity Management

This assignment delves into the significance of branding as a marketing tool for Nestle, focusing on how it has emerged in business practice. It examines successful brand management strategies over time, highlighting key components like brand positioning, customer feedback, national brand recognition, and portfolio management. The analysis also covers brand hierarchy, equity management, collaborative brand management approaches at both domestic and global levels, techniques for leveraging and extending brands, and methods for measuring and managing brand value.

BRAND MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Importance of Branding as marketing tool and how has it emerged in practices of business
.....................................................................................................................................................1
P2 Analyse the key components of a successful brand strategy for building and managing
brand equity ................................................................................................................................3
P3 Analyse different strategies of portfolio management, brand hierarchy and brand equity
management. ..............................................................................................................................4
P4 How brands expands their business at domestic level and global levels...............................7
P5Difference type of techniques for measuring and managing brand value of Nestle...............8
Conclusion.....................................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Brand management can be defined as an application of different marketing techniques
towards a particular product, product line or brand. It also a process of creating the brand value
and sustaining the brand image in the market. Having a effective brand management it helps in
building a loyal and satisfied customers. Its also marketing the techniques in order to increase
the brand value of its products in a product line. In this report we take Nestle as an organisation,
Nestle is the Swiss multinational company of food and drinks. Nestle is ranked as one of the
worlds largest company in food section. There are various varieties of its product line like water
bottles, baby foods, chocolates, medical foods etc. in this report we will discuss about the
importance of branding and its components for successful branding. This report will also shed
the light on the strategies for brand equity and the brand hierarchy. This report also discuses
about the techniques for measuring the brand value of an organisation. And how brands are
successfully over time using application of theories models and concepts, portfolio management
brand hierarchies and brand equity , use of different techniques used to leverage and extend
brands.
P1 Importance of Branding as marketing tool and how has it emerged in practices of business
Nestle is the world famous brand. It was founded in 1866 by Henri Nestle , it was started
as a milk company 152 years ago and in 1879 it merged with milk chocolate company namely
Daniel Peter. Total number of employees working in Nestle is 323,000. Its brand name has great
importance all-over the world and has served as a marketing tool for Nestle. Branding has
increased the value of the company, its has given the employees a sense of direction as well as
motivation and has helped to carry out its business smoothly(Jugenheimer, Sheehan and Kelley,
2015). This company has produced many variety of products. And company is growing day by
day in developed and developing both the countries.
Branding can serve as marketing tool because of following reasons:
1) Creates Customers Preferences : Branding helps in creating the customers preferences
towards the particular product as there are variety of products already available in the market
will would create the confusion but branding will help in differentiating the products of Nestle
from other products available in the market. Preference of customer should be always priority for
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the company. Because company can not run without the modification in products and the
feedback of customers.
2) It Supports in Advertising: It helps in the advertising of a product. Its logos, packaging,
punch lines etc helps in the advertising of a product(Urde ., 2016). Branding can be helpful to
support advertisement of product because many channels are there which are coming ibn use for
the branding of big companies like Nestle.
3) Competitive Advantage: Branding helps in keep the new competition away from it. The
segment that it has target helps in keeping the competition away from its products within that
market segment.
4) Attracting New Customers: branding helps in attracting new customers due to word of
mouth marketing like the suggestions from the friends, family , colleagues etc. branding helps to
attract customers by the launch of new products so they can know about thye new products and
their specialities.
5) Recognition: Branding helps in recognition of its products and separates it products from
other substitutes available in the market, so it can serve as marketing tool as customers find it
easy to recall the product by its name, logo, and the brand value that exists in the market.
Branding help to product to become famous among people .
6) Emotions: Branding helps in making the purchases on the basis of emotions as compared to
the logic that they should use while purchasing a product. So this also plays a vital role in
marketing of a product. It is a basic human nature towards any brand .
Branding has emerged in the business practices in following ways:
 Branding helps in generating the future business and well established brand can help
increasing the business value.
 It has developed the sense of professionalism among the employees of Nestle and
employees also feel proud and satisfied while working in the organisation.
 A well established branding strategies has helped the company in building the trust with
its customers, clients and also with its consumers.
 Branding will have the impact on the long term growth and profitability of the
business(Elliott and et.al., 2015).
 Brand building helps a brand to become a global brand through excellent branding and
its implementation.
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 It will create and increase the sales of the products and generates the revenue form the
business.
 It will help in reaching the products to the wide range of customer all around the globe.
 Branding helps in protecting the companies products from its copy cats and the
substitutes available in the market.
 A well established brand has to deliver 100% to its customers. It has to deliver its
performance as per the promises and what company claims about the products that they
serve to its customers.
 Branding has been used in managing the product and its associate brands.
 Branding will not only attract the customers but it will also attract the clients.
So we can summarise that the branding plays an integral part in business practices in
order to run its business nationally or internationally. Branding helps a company to remain
competitive and helps in standing against its competitors which is important in present
competitive market.
P2 Analyse the key components of a successful brand strategy for building and managing brand
equity
TARGET AUDIENCE : Target audience is the person who is the prospective buyer of
the product. Targeting the audience is important as it is basically dividing the market into
segments for whom the products and services are to be produced. when the audience so targeted
is successfully served ,it creates the maximum satisfaction for the end users who are eventually
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responsible for success of the nestle. It is an important thing for any company to target perticular
audience for the product. Because this strategy is helpful to survive in market.
BRAND PROMISE: A brand promise is a set of offerings made by the nestle to its
prospective buyers that what should be their expectations regarding its products , what benefits
should they expect from their products. The brand promise is the base for the buyers who
purchase the products on the belief that nestle had proposed. If the consumers do not get what
they expect from the Nestle it will hamper the Nestle's image and would not be able to retain the
brand equity. This is all about the faith for product. Company ensures the customers about the
loyalty of product.
BRAND PERCEPTION: Brand perception is nothing but what consumer thinks about
nestle products. It is totally in the hands of customers irrespective of the promise by the Nestle.
Whatever the target audience say about the product through their experience is the brand that the
Nestle will build. If products and services fails to create good perception towards the brand ,the
company would not be able to create the customer loyalty towards the Nestle(Powell., 2015).
This is the expectations of consumers towards their expected brand or products. Brand
perception can be coms out from the feedback also.
BRAND VALUES: Brand value in simper term means, sales the Nestle generates
through brand name. In other words, it is cash that is likely to be realised through brand's name.
If everybody wants the nestle products ,it means that the company have a tremendous brand
value and if nobody wants it ,it means no brand value of nestle. Brand value also indicates the
financial asset that the Nestle shows in its balance sheet. Brand value refers the all thing which
helps to promote the company, brand and product in market.
BRAND VOICE: A brand voice is the expression which are consistent through words
and styles. It is basically how nestle put out their message to their target audience. Proper
selection of words, value of nestle brand, their attitude has to be taken into consideration while
conveying the brand promise to the target audience. Brand voice is very important as people
recognise nestle by what it phrase during launching of the products. A good brand voice creates
positive perception in the prospective buyer's mind which makes them loyal towards the Nestle.
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BRAND POSITIONING: Positioning means what place has the nestle products
acquired in the minds of the consumers. Earlier it was just the place occupied in the minds of
customers but now has become an important marketing strategy. Brand positioning is simply
how differentiated the nestle products are from their competitors. What are the ingredients other
brand is using. This factors mainly helps to positioning of brand.
P3 Analyse different strategies of portfolio management, brand hierarchy and brand equity
management.
Portfolio management is optimum allocation of assets while diversifying the risk
involved in investing. This management is concerned with investing according to the
requirements of the investors/clients and matching the risks with the outcomes. Portfolio
management is all about making the investment policies where low investment and low risk for
the surety of return in maximum output(Robson., 2016).
Nestle having strong brand image employs different portfolio management strategies which are
described as below:-
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Active portfolio strategy : This strategy is concerned with outperforming against the set
benchmarks. Nestle can apply this strategy to out perform the task against the set standards.
Nestle can invests according to the market forces and tries to gain more through fluctuations of
prices in different markets. This would attract a highly skilled investment management team
which will provide Nestle an exceptional growth. It is strategy of invest the money according to
capacity or capabilities of the market. It depends on the potential of market strength that how
much money can invest behind the product.
Passive portfolio strategy: This strategy is concerned with holding of investments of a
specific index. Nestle can apply this strategy as it provide long term growth, however low
returns. The reason for Nestle for opting the passive strategy would mean low investment
management fees and stable returns over the years(Jugenheimer, Sheehan and Kelley, 2015).
Thus, Nestle could use mix of both strategy in order to reap benefits of beating the market
through active portfolio strategy and passive strategy in mature stage of market in order to earn
stable returns over the investments.
Brand hierarchy strategies
Brand hierarchy is representation of different brand elements used in firm's products.
Nestle brand hierarchy shows the brand strategies it follows which displays the different brand
elements placed in the hierarchy. One of the brand hierarchy it follows is discussed below:
Branded House or Umbrella : Nestle employs this strategy and the crux of this model is
brand is firm. Nestle is present in all its products or linked to every products.
For example, Nestle produces coffee NesCafe , Maggie and tomato sauce where the consumers
will find the Nestle brand name on the package of the products. This strategy is known as Master
brand strategy.
The importance of this strategy is that consumer who are loyal to one Nestle product will
deliberately buy Nestle's new product because of the brand loyalty, satisfaction they derive from
the nestle brand. Nestle brand automatically develops market for its new products.
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Product or House of Brands: This strategy is a common one where parent company's
brand is not shown very in a very noticeable manner. However, this strategy is not proving very
beneficial for many of the big organisation whose subsidiary products are not capable of making
its own brand value in due to the cut throat competition. Nestle also to give tough competition to
its rivalry and sustain its large market share has adopted the Umbrella strategy. Nestle became
the house of production and famous among all over world(Drewniak and Karaszewski., 2016) .
All the consumers across the world are using the products of nestle.
Brand equity management:
Brand equity can be defined as measurement of brand value and responsiveness of
existing customer to a new product or different firm, in other words it measures the brand
loyalty.
Importance of brand management is that brand management helps in formulating
strategies to target perceived audience. It helps in managing the products and their associate
brands. It will help in expanding the customer base as it helps in connecting the people. An
effective brand management will bring consistency in competitive market and will help in
gaining the competitive advantage over its competitors.
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Nestle have a solid brand equity management system because of which nestle is such a trusted
brand in the world.
Some strategy Nestle is efficiently using are :
Identity- that means build awareness about the brand so brand should be identified and being
popular.
Communication about brand: No firm can grow without efficient communication system.
Nestle hit the right cords in India to increase the sales by introducing different Maggie flavours
like Punjabi, Chennai and others. It understood the taste of the consumers of India and
accordingly framed its products and innovatively communicated it to the people. proper
communication with customer is necessary to know about their experiences of product.
Relationships: Nestle enjoys a commendable relationships in the world regarding the quality of
the products it serves to its consumers. Any company's reputation can be destroyed in minutes
and the same thing happened with Nestle product Maggie when it got banned in India recently.
But Nestle used its long earned reputation factor to bounce back in the market which helped the
company to capture the market again. Nestle is recognised by one of the largest companies of
services across the world. It is a reputed company Maggie is one of the most using product of
nestle in worldwide. Because the demand of Maggie is huge his product famous among the
children's and young people .Nestle has produce different different kinds of Maggie.
P4 How brands expands their business at domestic level and global levels.
Nestle is the biggest food and beverages company I all over the world. And this company
keeps all the nutritional contains in their products this comm pay take care the health and
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wellness of its customers. Market of nestle is worldwide , it about 130 countries across the
world.
Nestle has recently collaborate with Starbucks both brand are expanding their business across
the world nestle has faced many challenges and in the market when company has started its
business. in starting nestle has decided to expand its business in home counties and developed
markets like America, Switzerland and the market of India and china . In starting nestle use the
different strategy to correlate the rate of t products according to income of consumer so they can
us e the products. Nestle is promoting its products through the various advertisement techniques
like online selling of products, marketing of products threw the marketers and channels which
can globally use by the users(Jugenheimer, Sheehan and Kelley, 2015).
Potential market and investments Differentiation of products is the main key of nestle to
expand the business globally. Nestle was tied up many companies in last year with the purpose
of expand its business globally. sales of products are reducing in the developed market nestle has
opportunity to expand its business in developing countries. Nestle is going to invest its money in
developing countries because these countries have enough potential to grow up so nestle is using
different strategy to expand its business in developing countries. This is why ? Because
company knows about the market of developing countries , population, economy and technology
all are growing. Potential market investment refers to market potential of nestle to invest behind
valuable things and products.
Marketing strategy of nestle is very unique in other countries because company knows about the
upcoming opportunity which can helps to expand business so nestle started invest the money in
developing countries.
Online selling of product is one of the main strategy of nestle to expand its business globally
because people would know about the products and they can also buy them online.
Tie up with other big companies can be beneficial for the nestle so other big company can also
promote nestle. So the marketing of nestle would be measure on huge level. Segmentation of
business so , business can run smoothly is an very important , target the customer by producing a
variety of products is the main thing(Jugenheimer, Sheehan and Kelley, 2015). The main
competitor of nestle in the market is Proctor and Gamble .
Segmentation based marketing company understand the demand , needs and wants of people
according to there area where they are living.
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Rural area segmentation based marketing , in the big cities there are many big shops which are
selling Maggie, but in rural are hardly consumers knows about the products.
Demographical segmentation that means nestle is producing and marketing then products
according to age, income, family etc.
psychological segmentation marketing according to life style of people , country and market.
nestle has very different different marketing strategies which can help to expand the business.
company is providing various kind of products according to different different place of demand.
Company is using different different channels for the marketing of its products in both the region
, domestic and globally. Nestle is using online product selling on the internet which can help to
promote their business globally.
P5Difference type of techniques for measuring and managing brand value of Nestle.
Brand is a different thing from products. The thing what consumer buy , comes in brand brand
promises about the loyalty of product and ensure the customer about the products. There are
different different definitions for brand like it is source of products, it is a symbolic device it is a
quality symbol. A strong brand does not hide anything from its customers like Nestle. Branding
is some how a marketing strategy to promote the brand in market among all competitors. The
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strategy to invest money in the brand of any company is build a reputation. Branding is called by
strategy which is managed by the CEO of the company. It is also known by Brnd equity. 6Here
are 6 ways to measure the brand equity. Brand equity is shows the brand experience of
customers.
Six ways to measure brand equity-
Brand awareness- this is all about the knowledge of products to your customers. So it is an
important thing to keep talking with the customers and take their feedbacks through the
providing services to them. Band awareness ca be measure threw the techniques. There are many
ways to to measure brand awareness ,
survey and focus group through the this process company can find out the brand awareness
about their product among people from the survey methods. Online survey is also a technique to
measure the brand awareness through the feedback of their experience. There is another way is
social reviews that means take the feed back through the society.
preference metrics- consumer preference is a main factor to know about that hat matters in
precedence money of the quality of products? Brand relevance amens customer is satisfy with
your products because it is unique and different from the competitors.
Accessibility means to provide services and products to the customers according to their
expectations.
Emotional connectivity means the popularity of product and it expectations with customers.
Brand value refers to how much consumer can able to pay for the services and products of the
NESTLE.
Financial metrics- and brand equity both are inter relates to each other and increase in revenue
is move toward same directions. There are some points to find out financial metrics.
11 overall transect value11 value of customer life time11 rate of sustained growth11 price premium over competition.
Output metrics- this about what is brand investing like- time or money. Output comes
in the from of how many times assets get released to the public. There are three ways to know
about outputs-
11 sales on promoted products
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11 adoption of loyalty program by customers.11 Campaign of lock marketers and utilisation of assets.
Local marketer perception metrics- in this local outlets will responsible t for the
experience of customers. To observe the emotional attachments of local marketers. There are
many ways to know about brand equity is increasing or decreasing- software adoption rates give
the accurate rate of brand equity which can help to marketers to know the ration of product and
market. Survey method can help to understand the brand equity increasing or decreasing.
Campaign deployment rate and focus group who works for only this purpose(Jugenheimer,
Sheehan and Kelley, 2015).
Competitive matrices- competitor of nestle are affecting the business of company by
various sources. It is a place where the competitor is not providing the quality or brand value of
the products like poor customer experience. Adoption rate of product can differentiation both the
company, as well as market shares of the company, third thing is which brand have many
channels of distributions because these are the sources to differentiate the two companies on
these parameters. Sales lift means ups and downs in sales of nestle and the discounts , offers can
also differentiate the brand equity. Way to build brand value is -
Build your brand ion national level- brand should be build for the purpose of national level . It
should be recognised on the national level. Every consumer should trust on brand blindly. By
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improving the brand positioning. And by using the feedback of customers. Company can build
brand on national scale.
Conclusion
From the above study it has been summarised about importance of branding as a marketing tool
and why and how it has emerged in business practice how brands are managed successfully over
time using application of appropriative theories and concept, key components of successful
brand strategy for building and managing brand equity, different strategies of portfolio
management , brand hierarchy and brand equity management, how brands are managed
collaboratively and in partnership both at a domestic and global level use of different techniques
used to leverage and extend brands , different types of techniques for measuring and managing
brand value inn relation to developing a strong and enduring brand.
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REFERENCES
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brand management approach. Routledge.
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Solomon and et.al., 2014. Consumer behavior: Buying, having, and being(Vol. 10).
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at SME brand orientation and brand management in the New Zealand food and beverage
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