Brand Management Report: Nestle's Marketing Strategies Analysis

This report delves into the multifaceted world of brand management, focusing on the strategies employed by Nestle. It begins by highlighting the importance of branding as a marketing tool, emphasizing its role in market growth, brand recognition, and customer loyalty. The report then analyzes the key components of a successful brand strategy, particularly focusing on Keller's customer-based brand equity model, examining brand identity, meaning, response, and resonance. Furthermore, it explores various strategies for portfolio management, brand hierarchy, and brand equity management, including active and passive branding. The report also touches on the role of collaboration and partnerships in brand building and concludes by evaluating techniques for measuring and managing brand value. Overall, the report provides a comprehensive overview of brand management principles and their practical application within a global business context.

BRAND
MANAGEMENT

Table of Contents
INTRODUCTION.......................................................................................................................3
LO 1 ............................................................................................................................................3
P 1 Importance of branding as a tool of marketing............................................................3
P 2 key components of a successful brand strategy for building and managing brand equity
............................................................................................................................................5
LO 2 ............................................................................................................................................7
P 3 Strategies of portfolio management, brand hierarchy and brand equity management.7
LO 3 ............................................................................................................................................9
P 4 Collaboration and partnership of brand........................................................................9
LO 4...........................................................................................................................................11
P 5 Techniques for measuring and managing brand value...............................................11
CONCLUSION..........................................................................................................................13
REFERENCES..........................................................................................................................14

INTRODUCTION
Brand management is based on the planning and analysis on how a brand
perceived in global marketplace. It will perform the function of marketing that uses
method or technique to increase perceived value of product line. An effective brand
management enables to maintain product price and go up with build a loyal or strong
consumer through brand association. In context of marketing, brand management is
an essential process of planning the tangible and intangible products. It is developing
the strategic plan that will maintain the brand value and equality which requires for
understanding overall brand, its target market.
Nestle is based on the multinational organization that provide food and drink
services to customer. It is the largest food business in world that measured by
revenue and their metrics. The organization was established in 1866 by Charles page
and George. Nestle’s produce various type of products such as bottle water, coffee,
tea and dairy items. The company operates in 189 nations, 447 industries and
339,000 employees working within organization.
The report will discuss about the importance of branding as a marketing tool
and determine that how it will emerge in business practices. It will analyse key
components of successful brand strategy for managing and building the brand equity.
Furthermore, the documentation will evaluate the different strategies of portfolio
management, brand hierarchy and other type of brand equality management. At last,
it will evaluate the various type of techniques which help for managing brand value
and identifying specific needs of business.

LO 1
P 1 Importance of branding as a tool of marketing
Branding is considered as a critical aspect for the company because it helps
the company to grow in market and leave a positive presence. It helps the company
to position their brand in the eyes of customers with a better perceived value. Apart
from this it also helps the company to increase their awareness so that they can be
more popular in market (Melewar and Skinner, 2018).
It helps to get recognition-
Branding is considered as important by every company in the market as it
helps them to get recognition which increases the reach to their consumers. Most
important element of branding is the logo of the brand, specially when the company
wants to increase their awareness. Logo is presented as the face of the company. It
is suggested that companies dealing in the market must work on the logo and present
it in such a way that it is easily remembered by the people and leave the first
impression in a positive manner (Nguyen, Melewar and Hemsley-Brown, 2019).
It helps in increasing the value of the brand-
Branding is important if the company is looking to expand their operations and
prepare for the opportunities that may arise in future. Brands such as Kitkat is a
established brand in the market which states that they have more value as compared
to companies which are struggling in the market. It helps them to gain competitive
advantage in the market. They have the advantage of expanding their operations into
new countries as they already have value and awareness in the market which will
increase the possibility of achieving success (King, 2017).
It helps to generate new customers-
Companies such as Nestle have a sense of strong branding which has helped
them to leave positive influence in the minds of customers. Strong branding helps the
company to gain the level of trust in market which is the reason why companies get
repeated sales from them. Kitkat is a established brand and any variety of product
they bring into the market is promoted with the benefit of word of mouth which is
considered as one of the most effective techniques of advertising (Wider, von
Wallpach and Mühlbacher, 2018).

Improves the level of pride and offers satisfaction of employees-
Employees who work for the brand which has a strong presence in the market
are more satisfied and carry a sense of pride with them as they are the part of the
company. Employees of Nestle feel fulfilled because they believe that they have it all
such as office, sense of belongingness etc. Employees feel this because the
company has established themselves in such a way which has helped them to gain
recognition and gives employees a sense of pride (Kavaratzis and Hatch, 2019).
It helps to create and spread trust in the market-
Nestle has presented their brand Kitkat in a very professional manner with the
use of effective strategies so that they can work on to create trust in the market with
their clients, customers and consumers. Consumers prefers those brand who has
portrayed themselves in the market in a professional manner. It leaves the impression
that the company is the expert in that area which creates trust in the mind of their
target audience (Liu and et.al., 2018.).
It supports Advertising-
Advertising is considered as a component of branding and the way Kitkat uses
the strategies of advertising in the market it will reflect the changes in growth of the
brand. These strategies helps the brand to achieve their goals and increase the
awareness in the market as the reach of advertising is far bigger which covers a
whole lot of public. Established companies use this strategy of promotion and it is
termed as outstanding branding. It is a easy and cohesive way to make a appeal in
the market for their goals.
P 2 key components of a successful brand strategy for building and managing brand
equity
Keller's brand model of equity is also known as the customer based brand equity
model. After the evolution of marketing main area of focus of companies such as
Nestle is customers. They knew that till they satisfy their customers they will remain
profitable. They make the connection by building the brand of the company strong.
The model of keller helps the company to build their brand and facilitates them to
serve more no of customers in market (Buil, Martínez and Matute, 2016).
Level 1 Brand Identity (Who you are)

This aspect is concerned with how the customers of the brand looks up to
them and how do they differentiate it from other alternatives available in the market.
This stage is the initial stage of the model it takes place when the customers in the
market are unaware of the presence of the company. This aspect helps the company
to build a place for themselves in the market in order to attract people into making a
purchase of their product. If this stage is not strongly form then the rest of the stages
won't be able to leave an impact in the market. This way Nestle has build the identity
for Kitkat (Lu, 2019).
Level 2 Brand meaning (What are you?)
When brand leaves a presence in market it creates curiosity among
consumers to know more about the brand. For instance are the products offered buy
the company is of good quality, if or not the product is reliable, is it safe to consume it
for a long period of time if they facilitates better experience to consumers. Customers
tries to understand the meaning of the brand. Thus aspect is divided into 2 partes-
Brand Performance-
This aspect states that the brand gains recognition or reaches success when
they perform better. There are many companies which are physical and those who
provides services have achieved success because of their performance. There are
five factors which are considered most by the people. Reliability of product, features
of product, facilities for customer service, style and design of the product and pricing
of the product (Beck, 2016).
Brand Imagery-
This aspect is concerned with the image of the brand in the eyes of people.
Appearance of the brand is what concerns the people that if the brand is rugged or
soft. For instance Kitkat appears as a soft brand as it is a sweet confectionery item.
There are two ways in which the company can create the image in the market and
that is the word of mouth and target marketing (Ramírez, Veloutsou and Morgan-
Thomas, 2019).
Level 3 Brand Response (what are the feelings towards the brand?)

After buying the brand, expectations of customers rises. If the level of their
expectations matches with the product then they will be happy and satisfied from the
brand. If it broke the bar of expectations and goes beyond it then they will have the
benefit of word of mouth in the market. Consumers will turn as the advocate for the
brand. If customers goes from a bad experience then they will judge the brand. There
is a difference between both for example
Judgement- The brand did not match the expectations of the consumer.
Feeling- the service provided by the brand was excellent so which helps to create
advocates for the brand (Brooks and Anumudu, 2016).
Level 4 Brand Resonance-
Brand advocate is the one who reaches the last stage of the model. There are
not many companies which has reached on to this level. This level states that brand
has connected with the consumer on the basis of psychological and social level. For
instance person who prefers Kitkat won't buy any other chocolate. This aspect helps
the marketers of the company to capitalize the brand by understanding their needs
and wants. This model helps to clear the requirements of consumers.
Kitkat has achieved brand equity in the market. They have achieved that place
by giving value. For instance Nestle has many brands under it such as Milky bar,
Mars, Heaven, Drifter. Apart from that the company range of flavours in their brand
Kitkat such as lemon posset, marmalade, blackberry etc. so that they can serve more
and more people in the market. This is the reason why the company is the biggest in
this sector (DiMartino and Jessen, 2016).
LO 2
P 3 Strategies of portfolio management, brand hierarchy and brand equity
management
There are different types of portfolio management strategies within brand management.
Active Branding-
This aspect states that the company must have action in their part. It requires
data such as networking of the brand with their competitors engaging with clients and
providing the products which ensure promotion of the brand. This aspect demands
effort to reach success. It requires patience and skill so that the brand can achieve

attention of people (Liu and et.al., 2018). This type of branding allows the company to
gain control over the communication between industry and consumers. Brand can
host a event to increase sales such as campaign etc.
Passive branding-
This aspect also requires effort but it is different as compared to active
branding. In order to make this aspect successful brand needs to anticipate the needs
and wants of consumers. This type of strategy is used for implementing within
organization in a practical manner. By positioning the product in a smart way it helps
the company to reach their goals.
It is important that the company maintains balance between both the aspects. Still
passive branding is suitable when the company wants to establish in the market
whereas Active branding is suitable when the company wants to expand their share in
market (Paul, 2019).
Strategic Asset Allocation:
this type of strategy is based on the asset allocation of portfolio mix according
to the investor’s profile. It would be considered as a possive management for
identifying tactical assets to manage the risk through portfolio rebalancing (Liu and
et.al., 2018).
Branded House-
It is considered as the most common form of architecture for building or
forming up a brand. Major companies such as Cadbury and Nestle uses it. They have
many brands which are working using their name. When it comes to promotion of the
brand name of parent company is also highlighted so that they can leave an
impression in the mind of people because the parent company is established in the
market. For instance Nestle has many sub brands dealing under it such as Kitkat
chunky, dark Kitkat etc. They are competition with the products of other companies
not with each other. The reason behind that is they don't have the authority to work as
an independent brand. These are used by the companies who has many sub brands
under their name (Liu and et.al., 2018).
Benefits-

Companies which offers many products under their name has many benefits-
Efficiency- Company can use one strategy of marketing for all of their brands.
Ease- It helps them to work with ease as the level of confusion and competition is
reduced because they are all dealing under the same brand.
Evolution- They have a benefit of introducing a new brand and take it to success
because they have already build trust in the market.
Limitations-
Reputation- If the reputation of parent company is not good then it will affect the
growth of new brand.
Limitations- If the performance of the company is not good then they affect the brand
to become successful even if it offers a great product.
Ambiguity- It offers many products which confuses the consumers that in which areas
they operate.
House of Brands-
This aspect is exactly the opposite of branded house. Branded house is
concerned with dealing of brands with the focus on one single brand which is
consistent for the company. On the other hand house of brand is concerned with
many brands and each of them works as an independent body, each of them has
different people to target, they use different tool of marketing and each of them is
offered in a new and different look. For instance companies such as P & G and
Unilever uses this approach. For instance P & G promotes Tide not P & G'S Tide. It is
not suitable for every company (Balmer and Chen, 2017).
Benefits-
Reach- This strategy helps the company to reach widely on the basis of demography
and target new people.
Safety- Companies who are operating under this approach they have the scope to
take risk for their newly launched product because they know that they have strong
brands working under their name which will preserve their name and profits in the
market.
Shield- If the brand gets criticized for reputation then they will be able to preserve the
name of the company by taking all the damage in their name (So and et.al., 2017).

Limitations-
Overwhelming- Company has to incur a lot of money on the advertising and
promotion as they implement different strategy for different product.
Isolation- Company cannot rely on the reputation of the brand.
Image- It can lead to confusion on the discussion of parent company of the products.

Brand Hierarchy:
Nestle has summarized the branding strategy while displaying the nature of
common, number and other distinctive brand element across the global world (Liu
and et.al., 2018). Nestle is mainly focused to provide the milk product which always
inspire or motivate the potential customers.
Figure 1
In order to categories into different into different ways such as corporate brand,
individual brand, modifiers and family brands.
Equity management:
In Nestle, The primary objective of equity management is to attract members
while keeping existing members. In order to satisfy their specific need and
requirement. Equity management is basically performed the daunting task which help
for maintaining overall corporate profitability (Anagnostopoulos and et.al., 2018). It
allows for nestle to grow business in global marketplace. Afterwards, they can easily
maintain or manage corporate principles.
LO 3
P 4 Collaboration and partnership of brand
Line extension takes place when company offers or add some new items in the
existing category which is working under the same name of the company. For
example adding new flavors, forms, colors, size of package, ingredients. It is the
opposite form of brand extension which is concerned with bringing new product into
new category.
Strength of Nestle-

Kitkat is considered as a unique chocolate which is covered in wafer. In this
manner the company has changed the way that the chocolate must taste. It is
different from their competitors such as Dairy Milk. Kitkat has a unique way of
opening as it makes a catchy sound at the time of opening and no other chocolate in
the market has a opening like that. This helped the company to retain their
consumers which helped the brand to grow in the market. The production unit for the
chocolate is established in 16 countries and the sector of FMCG requires a strong
and high level of distribution channel as they have to make deliver in over 100
countries (Balmer and Chen, 2017). Brand has an advantage that it works under
Nestle because of which they have the benefit of strong channel of distribution. They
deliver many brands to many countries. The tagline of Kitkat is catchy and influential
which is have a break, have a kitkat which became very famous among people and
attracted many people into making a purchase. To revolve around their tagline brand
has put the images of people chilling out. By this brand wants to states that breaks
can be regular and one can have Kitkat at that time. There has been no case in the
market among the quality of the product. Dairy Milk has been through this case which
affected their sales in market. The reason behind the quality of the product that every
operation is managed with expertise by the company and without adding anything
harmful they deliver it to the respective places. Nestle generates a huge amount of
revenue which is because they offer so many brands and some of the brands they
offer have the highest sales in the market such as Nescafe and Milo which will help
the brand to grow in this segment (Borkovsky and et.al., 2017).
Weakness of Kitkat-
In the economy which is not developed people copy the chocolate and present
it into the market. Apart from this there are some of the players or dealers who offers
the same concept in a different way that is wafer biscuit and more flavors in it. In
order to maintain the level they need to work on addressing these factors so that they
can remove these issues and does not loose those consumers who are loyal to them
in any case of quality measure. Kitkat faces a lot of breakage and waste at the time of
packaging because it is a wafer and it cracks easily which is a loss for the company.