(Solved) Nestle : Brand Management

Brand Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Introduction............................................................................................................................1
Main body...............................................................................................................................2
Analysing strategies to strengthen brand equity, brand extension, reinforcing and revitalising
brands to overcome from crisis..............................................................................................2
Conclusion..............................................................................................................................2
TASK 2 ...........................................................................................................................................3
Analysing organisations brand portfolio plan of action.......................................................3
Providing an illustration of the hierarchy management of brands .......................................4
Analyzing plan of action utilized for managing the equity of the brands .............................6
TASK 3............................................................................................................................................7
Strengths of the brand that can be leveraged..........................................................................7
Weaknesses that may need attention providing some possible suggestions..........................8
Collaborative and partnership agreements.............................................................................9
TASK 4............................................................................................................................................9
Evaluating the tools and techniques adopted by Nestle ........................................................9
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Brand management is the function of marketing activities that take helps through
different techniques to increase the perceived value of a product line or brand over time.
Effective brand value of the company is useful to connect loyal customers as well. Present report
will be based on brand management of Nestle. Further, in the report will be explains about the
brand and brand equity and their role to achieve the level of standards of the company.
Therefore, report will have focus on identifying the strategies used by organisation for managing
equity of the brand within organisation portfolio.
TASK 1
“Brand is Power”
Introduction
Brand is the term which reflects company design, symbol or unique identify of product
or services. Brand is the important section of the company that affect the business growth. It
helps company to meet out the best selection process and make effective use of section and
growth. A brand can also be defined as an overall experience of a customer that distinguishes
an enterprise product from its competitors.
Brand equity is the another term that define the importance of brand value which assists
in creating value which can be analysed by analysing the perception of consumer about
company or brand (Kapferer, 2014). With having positive brand equity company can charge
more for a product with some great deals. Brand equity can also be defined as value premium
which an enterprise generates from a product with a recognizable name when compared to a
general equivalent.
Positive brand equity can help Nestle in adopting new line extensions that is profitable
for the firm in order to make more money. Good brand equity helps to motivate Nestle stock
price value that can help to enhance the quality of services.
Stages of building a flourishing brand
Phase 1: Determining target customer group
In the first step Nestle needs to set target customers which is the most required thing to
build effective brand image in the market. Further, company has to build well communicating
channel to connect with the audience through online campaign etc. besides that, organisation
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also required to filter their target audiences on the basis of interest level, demographic, age or
behaviour . It will help a lot to build a preferable image in front of the buyers.
Step 2: Define Brand Mission
Brand mission reflects what exactly company wants to achieve, it shows the value or
commitments of a brand promising to customers. Brand mission has to be enough approachable
to audience which depicts the purpose of the company (Heding, Knudtzen and Bjerre, 2018).
For example: company can show their mission value by donating some funds or a part to charity
for social welfare.
Step 3: Research Competition
Its is very crucial for brand to identify potential competitors in the market. . Company
should need to ensure that they are creating different unique product as compare with their
competitors. Brand has always represented different product or services to make buyers happy.
To make product different from competitors, Optimum Impression Ltd needs to adopt different
new services, product lien, innovation, research about their USPs. Etc.
Step 4: Create Value Propositions
Company should always need to look for some unique things that helps to make their
products more valuable and different. This is the best way to make successful brand such as
connect with clients on social media sites, take feedback and suggestions from clients, engage
company with some social welfare etc (Barrow and Mosley, 2019).
Phase 5: Determining guidelines for brand
Brand guidance specify the company key success or set of frameworks that company
adopts to promote their own brand. For that, Nestle needs to make the strategies for effective
management in order to meet out the company effective guidelines.
Phase 6: Marketing Brand of an organisation
This phase includes formulation of an appropriate selling or promotional strategy for
promoting brand. Apply branding in every piece of communication, from packaging to
stationary, website to marketing collateral. Brand has always needs to make itself self engaging
and demanding. Also it requires the, effective management effects.
Role of marketing department in creating brand equity
Marketing play a major role to build brand equity that relate with the company product
or services in an efficient manner. Marketing tools can clearly specify the values and messages
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that communicated by the Nestle . Marketing tool can easily communicate the need and create
flexibility for company as well as customers. Marketing strategies easily identified the customer
needs and communicate to the company. It helps to make further required changes to make
product as per the want of customers (Jugenheimer, Sheehan and Kelley, 2015). It easily fills
the gap between customers or brand that directly affect or maximize the brand equity.
Main body
Analysing strategies to strengthen brand equity, brand extension, reinforcing and revitalising
brands to overcome from crisis.
Model to strengthen brand equity
Brand Equity consist five categories that builds brand assets and liabilities. That makes
brand value more effective and prominent in order to meet out the customer needs and wants.
Line extension is the strategy which can be adopted by Nestle in ordserr to strengthen bvrand
equity. In addition to this, brand architecture strategy can be implemented by firm , as this will
assist them in determining which types of goods or services that are required to be introduce.
brand architecture strategy will assist an organisation in strengthening brand equity.
Aaker’s Brand Equity model
Brand Loyalty:
According to the Aaker's theory brand loyalty is brand currency of brand equity. That
can help companies to reduce their marketing costs from the operational functions. Brand
loyalty has never been copied by any other competitors or companies. It is the own and separate
term used by only single entity (Aaker's Model-Defining brand identity, 2018). Nestle needs to
concentrate on quality of products or services, as this will assist business entity in gaining
customer loyalty.
Brand Awareness
As per the Aaker's model brand Awareness is the initial stage of brand equity. That is
highly affected to the company brand image. Brand awareness is the best tool to communicate
direct to the clients and customers and convey regular messages. High brand awareness reflect
high attraction of clients or buyers.
Perceived Quality
It is the another way or term that upgrade brand equity and level of effective
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performance of Nestle Perception reflects the company image in the market that helps to
promote better brand value in within the competitive market.
Brand Associations
Brand association is the kind of limit which a brand name is liable for retrieving from
the consumer's brain. For example: Consumer get easily find out the company name by its logo
or symbol by watching T.V. As per the Aaker's model Company makes its brand differentiate
with other brand. For that, Nestle can promote or advertisement their brand with the help of
some promotional activities, such as through promote brand by celebrities, marketinbg
campaign. etc (Lee, O’Cass and Sok, 2017).
Proprietary Assets
Proprietary assets is the most significant tool to promote positive brand equity. In order
to that, Nestle needs to assure the safety of their proprietary assests.
Brand Extension
Brand Extension is a marketing term through company promotes their product or
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Illustration 1: Aaker's Model of Brand equity
(Source: Aaker's Model-Defining brand identity. 2018)

services with the help of some strong strategies. Nestle can implement brand extension
strategies in order to leverage brand equity. For example, Nestle can launch juices.
Brand Reinforcing & Revitalising
Brand Reinforcement is the concept where company rebuild their brand image again in
the market with some new product extension or some new concepts to keep the brand image
alive. For that, Nestle can adopt the strategies such as advertising new product, exhibitions,
event or sponsorship, promotion, etc (Lee, O’Cass and Sok, 2017). Nestle has been provided
with suggestion top communicate continuously with customers, ass it will provide firm an ease
in brand reinforcement. It has also been recommended to Nestle that it should maintain brand
consistency as this stratergy will help enterprise in maintaining the favour ability of brand.
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Illustration 2: Brand Extension

Conclusion
As per the above described terms such as brand awareness and brand equity level helps
to make the best growing results to break the best developing growth for the company existence.
It described that, branding is the tool of marketing that can reinforce the company brand equity
and value in the market as long. Branding as a marketing tool has great significance as it helps
an organisation in developing positive impression on customers that is very much crucial in
context of organisation growth.
TASK 2
Analysing organisations brand portfolio plan of action
Brand Portfolio strategy of Nestle
Brand Portfolio strategy is the most helpful element to create existing level of the
company into long term market and growth. It helps to create value and long term effectiveness
for the company growth. Nestle having a strong brand image in the market that helps to keep the
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Illustration 3: Brand Reinforcement
(Source: Brand Reinforcement. 2018)

company top in the industry. Nestle has a unique global footprint through it creates high value
and profit from the market (Tatoglu, Sahadev and Demirbag, 2018).
Nestle is the famous company which is based on Health and wellness who believes in
human health strategies. Founder of Nestle, Product Differentiation is the brand portfolio
strategy adopted by Nestle. Apart from that, brand portfolio is the bundle of same brands which
handling under the same company. Such as Nestle having different brand portfolio such as
Nestle deals with baby foods, bottled water, cereals, chocolate & confectionery, coffee (Zenker
and Braun, 2017). Nestle having more than 2000 brands across the global context to local
customers. In order to that, Brand portfolio is the main strength of the company which promotes
positive attitude and growth for the company manner.
BCG matrix of Nestle
Boston consultancy matrix is also recognised as the growth share matrix that is utilised
by organisation for classifying business units or good into various categories that are stars,
dogs, cash cows and question mark. This matrix level helps company to measure the personal
growth and the current situation of the market performance.
Question Marks : This sign reflect that company have low chance to cover the market
share of a high growth market (Nestle and BCG matrix strategy, 2014). For example, Nestle 2
min Maggie required lost of capital investment in order to capitalise the cookery segment of the
company. Due to some past bad reviews of Maggie has not offered high rate on investment in
Nestle brand portfolio (Ertimur and Coskuner-Balli, 2015).
Stars : This sign reflect a high share growth market. Nestle's has huge growth and wide
market share. Nestle wide range of product or services gives healthy life or health to the
customers that helps to meet out the company standards. Star is the positive situation of market
for which company required large investment in order to make their own product different from
other brands.
Dogs : This sign is the negative sign for the companies which reflect low market share in
low growth market situation. In such situation, company new emerging market growth and make
effective working environmental growth. Sometimes, new product fails to perform in the market
due to number of competitors already existed in the market.
Cash Cows : This market situation requires low investment in order to make high profit
in the market. It helps to make or create large amount of profit.
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Providing an illustration of the hierarchy management of brands
Brand portfolio can be defined as collection of different brands under the control of
single organisation. Brand hierarchy is the function which describe the brand strategy of the
company by showing different brand elements across the business (Du Preez and Bendixen,
2015). Brand hierarchy is also known as brand architecture which is the most important and
crucial factor in the company brand development. Nestle having number of products such as ice
creams, chocolate etc. brand hierarchy is the best way to manage or organise different brands for
the company.
There are two approaches of brand architecture that is
House of brand
House of brand is the approach which mostly adopted by those companies which deals
with consumer product brands. In other words, house of brand is the strategy or way where
company sell their products with different and unique way as per the product line. Some products
does not required any awareness or marketing. Such as Nestle has kitkat which itself is popular
with its own name and Maggie itself is big product name which differentiate with other noodles.
Therefore, Nestle has largely popular by its chocolate beverages brand especially known for
Nesquik and Milo (Riley, Singh and Blankson, 2016). Such as House of brands of Nestle is
chocolate, Baby products, milk products, Pet care products etc.
Major advantages are : House of brand is the free standing brand. In other words it is not
contagious to their other sub brands. House brand products target number of audiences to make
profit revenue. Major drawback is that this will not give success to their parent brand. It requires
high range of investment on particular brand products.
Branded house
Branded house strategy generally suites to those companies who become the dominant
source of a particular product or services. It become more easy for the customers to grab from
the market at anywhere or anytime. In order to Nestle consist so many other products under one
product line such as in chocolates it consists KitKat, Princessa, Milky bar choo, after Eight
Biscuits etc.
The biggest advantage of brand house is that It removes confusion among all the other brands to
reduce the possibilities of disorder. Major drawback is that In branded house loss of one product
impact on the profit of other products.
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Hierarchy management of brands within organization's portfolio.
Brand architecture is referring the branding plan of action which displays the nature as
well as number of distinctive number of process that achieve new and emerging market growth
for generating desired result and goals (Lane and Andersen, 2015). Brand hierarchy is also
classified into different levels such as corporate brand, range brand, individual brand, modifier
brand etc. it affect the overall job or affect the overall brand value and ineffective leading
performance.
Family brand is the another level of brand hierarchy and ineffective level of work in
order to meet out the best and effective management task and another most appropriate manner
of growth and developing areas. Nestle having a family brands which generate high profit for the
company such as Kit Kat, Purina, are the products of (Nestle), family brand is most important
and useful as compare to corporate brand.
Keller brand equity model also recognised as customer based brand equity model. This
hypothesis highlights the four key levels that will help an organisation in creating successful
brand. In context of Nestle an organisation is using emotional branding strategy.
Brand identity:Nestlé, packaging has a key role to play in brand recognition. An organisation is
among the one of the six strategic corporate brands.
Brand meaning:
Brand responses: Innovative Packaging strategy adopted by organisation has helped them in
getting high as well as positive response from customers.
Brand relationship:Nestlé Nespresso is creating long lasting relationship with customers. It has
helped an organisation in earning high profit.
In context of Nestlé Nespresso, an organisation an advertisement strategy for managing
the brand. An organisation has utilises social media for making positive impression on
customers. In addition to this customer engagement as well as differentiation strategy is adopted
by enterprise for managing brand.
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Analyzing plan of action utilized for managing the equity of the brands
Brand equity is the most powerful and crucial element for the company who matches the
company needs with the customer needs. It helps to build the company goodwill in the more
efficient manner and goals. Nestle has earned very good market position and growth in the
market over time.
Nestle is the most popular brand which is commonly recognized by everyone over the
global level. In terms of Nestle brand equity is best stories, value, association, memories and
human connection. There is different manner through company can easily managed their brand
equity.
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Illustration 4: Brand hierarchy of Nestle
(Source: Brand hierarchy of Nestle, 2018 )

According to customer based brand equity model, it states that the power of brand resides
in the minds of people. As per the CBBE model it refers four steps these are given below:
Brand Identity : In order to increases the brand Awareness Nestle can adopt the use of
market segmentation and different selling technique to attract number of buyers (Iglesias, Ind
and Alfaro, 2017).
Brand Meaning : Nestle need to present their values to the customer by presenting a
good thought or a message to build customer faith or express good meaning.
Brand Response : in order to keep customer interest Nestle needs to adopt unique
product or services to get customer response.
Brand Resonance : In terms of Nestle company needs to do something to gain customer
loyalty and faith by providing healthy and quality goods and services.
Brand Recall and maintaining brand image
in order to sustained in the long period of time, Nestle needs to manage brand equity and
recall customers again and again to make good brand response. For that, they need to maintained
brand promise with the clients as well as their interest with the existing company products.
Continuous Expansion
it is the another way to retain company image within the market to offer new product or
services for their buyers (Balmer and Chen, 2017). For that Nestle either adopt new product
extension or expand company to some another country. This process allows company to get
more customer attraction process and make good profit or revenue.
TASK 3
Strengths of the brand that can be leveraged
It is the responsibility of the company to leverage the brand equity in order to use new
technology, thought process or new ideas. The meaning of brand leverage is to adopt the use of
existing brand into the some new thought process. Existing brand power or value is the asset of
the company which they can use to another place as well. It is very tough to build new brand
image as compare to those who already has been existed with good position. Kitkat utilises
different process for communicating their brand value or for sharing information about products
to consumer. There are two ways through which Nestle can leverage their brand are given
below:
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Line extension : Line extension is the process when organisation launches new product for
different target segment (Nufer, Bühler, and Jürgens, 2017). It means that company offer some
new features or innovation in within the existing same product line. Suggestion is that Nestle is
required to launch new KitKat version which could be Kit Kat Chunky Caramel Duo.
Brand Extension : Brand extension is the process where company entered into the different
product category or line. In other words it says that, brand totally expand its brand into the
different new product line. In context of Nestle, suggestion to organisation is that Nestle can
enter into new product line such as drink.
There are different techniques in order to leverage and extend the brand which can be used by
Nestle :
 Co -branding
 Brand extension strategy
 line extension strategy
 Stretching the extension brand horizontally or vertically
Strength of Kitkat
 Kitkat is the well known brand who also a reliable supplier.
 Kitkat company is having high skilled employees or workforce for them, company also
organise well training and development session as well.
 Kitkat have some most popular brands owned like, Haagen Dazs, KitKat, Nescafe etc.
 Brand loyalty and brand recall is the best high for the brand.
Weaknesses that may need attention providing some possible suggestions
Weaknesses of Kitkat
 Kitkat required to invest huge funds on new innovative technologies. So that, it can better
for brand to expand its business into different geographic areas (Zarantonello and
Pauwels-Delassus, 2015).
 Kitkat have a issue regarding high attrition rate in workforce as compare to other
organisations.
 Limited success apart from the core business even though it is the most competitive brand
in the market and faced challenges to expand or grow more.
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Collaborative and partnership agreements
Collaborative and partnership are the act of agreements that is made by the brand
willingly to share resources with the other firm in order to provide customer with more services.
(Som and Blanckaert, 2015).
Kitkat collaborate with many firms as a partnership in the form of co-branding. Co-
branding is the formal practice under which two brands or more than two brands come together
to deliver services or products with same level of decision making process.
In terms of challenges company is facing high range of challenges and issues. Such as
Kitkat has announced their agreement with Starbucks that company perpetual rights to market
Starbucks consumer and self-service product globally (Lin, 2015). Brand collaboration is the
effective practice or process to allow company to deal with new market products or in the new
city. This process of partnership can also increases the company market share and growth.
TASK 4
Evaluating the tools and techniques adopted by Nestle
Brand Value : It can be defined as net present value if the cash flows which are attribute
to the brand name. Brand value is the best tool for the company to make effective and most
challenging task for the organisation to make good customer appearance. Brand value is the first
and foremost element for the company to build new marketing goals and easily customer get
attracted from that, Brand value define the company commitments and their loyalty with
customers. Branded Tweet Tracking. Website Traffic Differential Tracking are the two
techniques which can be utilised by management in an organisation for measuring brand value.
Cost as well as market based approach can be utilised by Kitkat for measuring brand value.
Brand Awareness : Brand awareness is the indicator that reflects the user cognizance of
a brand and products offered by specific organisation .Nestle should adopt the different mode of
promotional activity goals in order to target market customers in order to gain positive results
and good feedbacks. Brand popularity also help company to rebuild the new product line and
new brand extension (Lin, 2015). It affect all over other task in order to perform the best
productive activity. This process built the new marketing goals and effective learning outcomes
and better developing result growth. Brand awareness is the best spread through both inbound
and outbound marketing efforts. Business with strong branding are viewed as accepted by the
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market. In other words due to low quality or degradation in company services will directly affect
the company goodwill. Nestle should aware about the new trend and consumer wants in order to
meet out the company brand objectives and goals. Market research is the technique which can be
used for measuring the brand awareness.
Market Share : Market share represents the percentage of an industry and its ratio
depends upon the ratio that reflects the company profit ratio that affect the company profitability
goals. It is the process of total share or the share of total sales of the company. Management in an
organisation is required to identify market share for computing which they can divide
organisation total sales by the industry's total sales during particular financial year.
Consumer Attitude : Consumer technique is the most important and necessary elements
for the company to be focused in order to meet out the best developing result growth (Attitudes,
2018). The main purpose or goal of the company is to explore their target customers by
providing the best effective and productive services or goals. So for that, Nestle focus on the
consumers choices and make sure their expectations with the company. Scaling techniques can
be used for measuring different psychological aspects such as attitude, perception and
preferences of the people with the help of certain pre-defined set of stimuli and instructions
Overall consumer attitude depends upon the three factors first is on beliefs and second on
feelings and third one is behavioural intentions towards the company products. Consumer
attitude is the dynamic in nature which always has been changed as per the market trend. Beliefs
are the faith that customer do on the company (Lin, 2015). It involves quality, consumer health,
some times due to company negative beliefs they loose potential customers and buyers. There
are different types of beliefs, such as positive beliefs are e.g. Nescafe Has a good coffee taste.
Negative beliefs e.g. Coffee is easily spilled. In addition to that, neutral beliefs refers e.g. coffee
is black in colour.
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Purchasing Intent : Purchase intent is the choice of buyer to buy a particular product or
services which is known as purchase purpose of the customers. Consumer relies on many factors
on that basis they make decision to purchase the particular product or services. Such factors are
stimulus trigger, Outcomes expectations and aspirational value. Online survey is the best
technique utilised by management in nestle for measuring purchase intention. Net promoter score
can be utilised by Kitkat for measuring purchase intention of customers.
CONCLUSION
As per the above section or a report it has been cleared out that, brand management is the
crucial way to promote product or services that makes company brand equity more stable and
productive in the overall market. Study discussed the role of brand equity and stages to build a
successful brand value for the company. Therefore, it explained the ways or method to revitalise
brand and reinforce bran of the company. Study concluded the overall importance of branding in
marketing tool that helps to build the better customer attraction and make the best outcome
results. Report explained the model of Aaker's Brand equity model to make good brand equity.
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Illustration 5: Consumer Attitude
(Source : Attitudes, 2018)

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