Brand management assignment | Nestle

BRAND MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1. Brand and Brand Equity........................................................................................................3
P2. Key components of a Successful Brand Strategy of Nestle..................................................5
LO 2.................................................................................................................................................8
P 3 Strategies of Portfolio Management, Brand Hierarchy and Brand Equity Management.....8
LO 3...............................................................................................................................................13
P4. Evaluation about how brands are managed collaboratively and in partnership both at a
domestic and global level..........................................................................................................13
LO 4...............................................................................................................................................16
P5. Evaluating various techniques used for measuring and managing brand value ................16
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21

Illustration Index
Illustration 1: Strategic Portfolio Management..............................................................................10
Illustration 2: Customer-Based Brand Equity (CBBE) Model......................................................13

INTRODUCTION
For any organization, it is very important to have a proper brand management so that it
can promote their products and services in the target industry. Brand management is a process
which is used to maintain and improve the activity of supervising the promotion of a particular
brand of goods of particular organization in the market. This process involves number of factors,
for example, in store presentation, customer satisfaction, price of the product, industry
competition, etc. It plays an important role in building the image of the organization. It mainly
focuses on the brand and how it can remain favorable to their customers. An effective brand
management can help them to increase their product sales and can earn a good revenue. This
report will focus on the Nestle which is the largest food and beverage company in world. It is a
Swiss international company, headquartered in Vevey, Vaud, Switzerland. It has more than
20000 brands serving its customers. It's total revenue in the year 2017 was calculated approx
89.791 billion. This report will include topics like, importance of branding as a marketing tool
and the key factors of brand strategy which can help Nestle in managing brand equity. It will also
analyze different strategies which can be useful for the management and brand hierarchy of
organization. Various types of techniques used to measure and manage the brand value of Nestle
like market share, consumer attitudes, brand awareness, etc. is also explained in this report.
LO 1
P1. Brand and Brand Equity
1. Introduction
For Nestle, it is very crucial to maintain their brand image in the market. For this they
have to focus on their brand and its brand equity in the organization. Brand equity is a process
which is used by the company to calculate the total value which is generated from their product
which is famous in the market. They can make brand equity for their products by implementing
some changes in them, for example, making them recognizable easily by their customers, or by
making them memorable and best in quality as well as in quantity for their consumers (Strategy,
2018). These processes helps Nestle to identify their the importance and worth of their products
and services to their customers. If company has a good brand equity, it can result into financial
benefit, which can help the organization to demand a premium price for its product. For example,
if Nestle has a strong brand equity, than the price or their products are both accepted and
expected by customers in the market.

To have a proper and effective brand equity, there are several steps which has to be
followed by the Nestle company to make it more powerful and strong. These steps are as
follows,
1. Target Audience : This is the main objective of this process which has to done carefully
by the company in order to make it effective. They have to keep in their mind about what
are the choices or preferences of their customers are and what they prefer most from their
company, etc. All these informations can be used by the company to target their audience
which can help them to accomplish their mission which is to meet their requirement in
the best way possible (Nestle’s Brand Identity: Packaging a Punch, 2014).
2. Brand Mission : In this process, Nestle has to identify their mission and vision from their
brand. This plays an important role in the organization as it will depict their overall
performance in the target industry. It has to be very specific in nature which can be
identified and understood by their employees easily. They have to analyze different
aspects, such as, what are their goals, how they will achieve them, who are their target
customers, etc.
3. Research Competition : Nestle has so many rivalry company which is operating in the
same industry, for example, Unilever, Danone, Proctor & Gamble, etc. They have to do
their branding more unique and different from their competitors to attract more
customers. For this they have to take care of several factors, such as, they have proper
knowledge of what their competitors are doing in the market, make improvement in their
products, etc (East and et.al., 2016).
4. Value Propositions : It is very important to know value preposition of your organization
as it will help the company to set their business in the target industry. It can be done by
communicating with your customers more to understand their needs and liking. It can
serve as the most important step in building an effective brand equity.
5. Brand Guidelines : This method will help the organization to prepare a guideline which
they can follow in the organization. It helps Nestle to maintain their consistency across
different channels and makes their business more recognizable in the market.
6. Marketing of Brand : Marketing is very important to enhance the brand equity of the
organization. They can implement any marketing strategy to achieve their target. For
example, they can directly communicate with their customers, displaying their