Comprehensive Brand Management Report: Nestle's Portfolio

This report provides a comprehensive analysis of brand management strategies, focusing on Nestle as a case study. It begins with an introduction to brand management, defining key concepts like brand equity and its importance in marketing. The report then examines the application of brand man...Read More

BRAND MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Introduction..................................................................................................................................3
Main body....................................................................................................................................4
Conclusion...................................................................................................................................6
TASK 2............................................................................................................................................6
Strategies for managing equity of brands within Nestle' portfolio..............................................9
TASK 3..........................................................................................................................................10
Strengths of Kit Kat that can be leveraged................................................................................10
Weakness that need to attention.................................................................................................11
Partnership and collaborative agreements.................................................................................12
TASK 4..........................................................................................................................................13
Techniques for Managing and measuring brand value..............................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Brand Management is the marketing function in several marketing techniques are
used to increase the perceived value of product line or service line over a period of time.
Effective brand management includes management of intangible and tangible
characteristics of a brand which helps in attraction of customers (Hwang, Baloglu and
Tanford, 2019). Also, effective brand management enables a company to increase the
price of their products and services and also helps in building a loyal customers for the
organisation. Also, effective brand management includes building a positive brand
association, positive image and also results in a strong brand awareness. In this report
Nestke is taken as an organisation which is a multinational food and drink producing
company operating in UK. Present report discusses about the importance of the brand
and brand equity and the importance of marketing tools within the business. This report
also includes the how brands are organised within the brand portfolio and how brand
hierarchies are built as well as managed. Current report also includes how a company
should extend the brand domestically and internationally and also evaluates the various
techniques for managing and measuring the brand value and how these techniques are
applied in the organisation.
TASK 1
This task is based on scenario based on organization called Optimum Impression
Ltd which discuss new article of firm new marketing broacher with headline 'Brand
Power”
-Brand Power-
Introduction
Brand may be defined as a name design, symbol or a term or any other
characteristic which helps in identifying the company's goods and services which
distinct it from those of its competitors. Brand helps the customers to identify and
distinguish product or service of one company with another company which are quite
similar in nature. Also, it helps in providing the major competitive edge within the
competitive markets. On the other hand brand equity may be defined as a value
premium which a company generates from its products with a identifiable name when

compared with generic equivalent (Brunetti, Confente and Kaufmann, 2019).
Organisations can develop a brand equity for their products and services by making
their products and services easily recognisable, memorable with superior reliability and
high quality.
Optimum Impression can build a successful brand through different stages of brand
building which are as follows:
Stage 1-Determine target audience: In this stage company should determine its
target markets and they should keep in mind the target audience. Here company also
have to identify the type of communication which helps in delivering the best message.
Stage 2-Define brand and mission: In this stage firm has to create a mission
statement which will help in guiding brand process across channels.
Stage 3-Research competition: organization should be aware of its competitors
strategies and should try to build a brand which is unique and has capability to attract
customers.
Stage 4-Create value proposition: they should always focus on making its brand
unique and valuable and try to find the values proposition which sets the company's
business.
Step 5-Determine Brand Guidelines: Company should develop a brand guidelines
by setting a various patterns of visual elements of a brand like templates, logo, etc.
Step 6-Market the brand: In this stage company has to develop an effective marketing
strategy for marketing the brand.
Marketing department plays an essential role in building a brand equity like
building a marketing programs, choosing a medium of communication, setting a price
and choosing a communication channels.
Main body
Optimum Impression Ltd can should develop a proper strategy for strengthening
its brand equity and company can develop a strong brand equity by using a Aaker's
Brand Equity model which can be explained below:
Brand loyalty: company can build brand loyalty by reducing the cost of its products
and service, attracting new customers towards the products and also company should
respond to their competitive threats.

Brand awareness: It can done by building a strong brand association and developing
a sustainability through customer reviews and high rate of purchases.
Perceived quality: It means the extent to which a particular brand is believed to
provide high quality products which can be measured through quality, brand position,
price, number of extension and availability.
Brand Association: It is referred to a degree by which a particular product or service
is recognised within the product or service category. So, company should develop a
strong brand association.
Proprietary assets: Here company should develop a strong proprietary asses which
includes trademarks, copyrights, patents etc. More the proprietary assets more the
brand's competency in the market.
Company can also go for brand extensions which can help the company in
increasing the brand value brand equity, it is the most powerful way of developing and
growing the organisation by unlocking the potentials of the businessAkrout, H. and
(Nagy, 2018). Company should try develop an effective brand extension strategies but
they are not always simple, within the brand extension Optimum Impression Ltd can
make use of its existing brand reputation in order to promote its new products and
service in order to appeal new audience by using an image which company already
has. Brand extension strategy of a company depends on how strong company's
consumer association are towards the brand's value and goal.
They should also reinforce its brand by getting those customers which have
already tried a company's brand to become their repeat purchase and attracting new
customers along with old customer. With the help of brand reinforcement company can
keep its brand alive along with its existing and new customers and company should
develop an effective plan in order to overcome the brand crisis (Ramadan, 2019).
Company can navigate its brand crisis by following steps:
 Plan- company should develop a pre-planned guidelines in order to deal with
brand crisis
 Business should acknowledge the issues and problems created and should
apologise for it.
 Company need to develop a plan in order to get out of the crisis and should

always try to seek help.
 They should inform about the crisis to their customers and for this it can make
use of social media where customers can ask questions.
 At the end firm must monitor response from its customers and should develop
an effective strategy based on the responses.
Conclusion
Branding is considered as an important tool for marketing as band helps in
adding company's product or service a reputation and also helps in creating a visibility
of a products or services. It is also an important tool that can help company in building
and refining the reputation and brand visibility. Branding in not only important for
building company's reputation but also acts as a marketing tool for the organisation, in
marketing the products and services as it help in recognising the products and making
a memorable impression on the consumers which helps in increasing the business
value. Also, branding helps in creating new customers, once a brand is well
established in the market, word of mouth can be company's most effective and the best
way of marketing of products and services. Brand also help in generating product
awareness among the customers which can help in attracting potential customers
towards the product. Branding also help in creating trust within the marketplace which
help in developing a customer loyalty and loyal customers can act a effective marketing
agents for marketing company products and services. Customers also help in
influencing other customer towards the company products and service, so brand act as
a special marketing to attract the customers.
TASK 2
Overview of organization-
Nestle is the Swiss international food and drink processing corporation, its
headquarter is based on Switzerland, Vaud and Vevey. It is one of the biggest food
organization in the world, their products include medical food, coffee and tea, dairy
products, frozen food, baby food, breakfast cereals, snacks, ice cream etc. Company
has 447 factories, successfully operate in 189 nations and employs around 340,000
workers. It is one of the shareholders of L'Oreal the world's biggest cosmetics firm.

Nestle is founded by Henri Nestle and founded in 1866 almost 153 years ago (Thomas,
2018). It has over 2000 brands with large range of goods across the number of
markets, including bottled water, beverages, coffee, infant foods, breakfast cereals,
seasoning, sauces and soups, chocolates, pet food and refrigerated foods.
Nestle brand portfolio strategy
Brand portfolio is merely collection of brands under the organization control,
multiple and large corporation have dozens of well-defined brands in its portfolios. In
some cases, the companies may present similar products or line under various brands
in different markets, each of these brands is the elements of firm brand portfolio.
Brand portfolio permits company to established strategy for every brand,
identifies need for repositioning and determine underperforming brands and obviate
exposure risks for firm related to individual brand strategy. Brand portfolio strategy is the
investment strategy that efforts to generate maximum value to the portfolio. Portfolio
strategies is very essential for Nestle as it contribute in developing optimal brand
structure and using components which include of brands its relationship with each other.
Organization used brand portfolio strategy in its hierarchy management of brands which
is beneficial and useful for overall business growth and market reputation (Tan and
Apisit-Isariyah, 2018). In order to build brand portfolio company face challenges which
effect on its brands. Brand portfolio strategy is the critical part of organization brand
equity, as it also influence by brand identity. There are different types of models of
brand portfolio strategies used by company:
Branded house-
It is also called mono brand portfolio, this strategy is used by several companies
that use its corporate brand names on all their goods. It is the term of brand architecture
under which sub brand or small brand is marketed under parent brand.
House of brand-
It is one of the second brand portfolio management strategies which is found to
be more general than mono brand strategy. Individual brands is created for various
markets or products, some companies which use individual brands may disclose its
parent firm identity on their packs, by either and small or address logo.

Nestle is food and drink producing conglomerate organization full of brands there
is different brand portfolio strategy which they adopt (Joe, Ham and Lee, 2018).
Branded house is one of the best brand portfolio strategy which adopt by Nestle in
order to manage equity of brands. It is one of the finest of brand structure which is used
by many organizations in the world. This strategy is beneficial for business associated
to incremental brand knowledge and brand awareness, reduced marketing and
promotional expenses due to cost amortization across its brand portfolio. Nestle is
admonitory model of this architecture in which they got sub brands which is been
operated as well as marked under single umbrella of parent brands which is NESTLE.
Branded house strategy provide several benefits for firm as it permits to offer multiple
products and services under the single branded corporation.
Hierarchy management of brands with in company portfolio
In simple term brand hierarchy is summarization of brand strategy by displaying
nature and number of distinctive and common brand components across organization
products, revealing explicit ordering of brand component. Brand hierarchy allows Nestle
to reveal number of its sub brands and brands which is existed under brand portfolio of
company.
From above illustration is has been shows that brand hierarchy of Nestle, where
different brands of company operate under single parent brand and its several sub
Illustration 1: Brand Hierarchy of Nestle
(Source: Nestle Brand portfolio, 2018)

brands operating under Nestle (Beverland, 2018). Under company there operates
different sub brands and brands such as:
Nescafe: it is the brand of nestle.
Nestle chocolates: there are several sub brands of nestle chocolates which includes:
 Milky bar
 Moca
 Munchies
 Kit Kat
 Nestle crunch pieces
 Nestle crunch with peanuts
 Butter finger peanuts butter cups
 Goobers
 Scorched almonds
 Rowntrees
 Walnut Whip
 Nestle milk chocolates
 Nestle Crunch
With the help of branded house strategy firm can be able to manage brand
portfolio and successfully generate brand awareness through effective marketing
strategies used for brands portfolio. In recent time, Nestle portfolio contains over 2,000
various brands including worldwide famous Nescafe, Kit Kat, Nesquik etc. with the
annual turnover of more than one billion. Strategy building of brands in brand
management, discipline and creativity is the key of success. Nestle architecture that
builds or develops strong brands is know as brand building Nestle way.
Strategies for managing equity of brands within Nestle' portfolio
It is very essential and challenging risk for Nestle to manage equity of its brands
in competitive business environment. Managing equity of brands is important as it
allows organization to more effectively and efficiently engage with consumers base in
such way that drives brand loyalty and permits business to grow and success further
(Portal, Abratt and Bendixen, 2018). Nestle will use different types of strategies for
managing equity of brands within its portfolio. It is one of the most notable brand of the

world, they need to manage equity of its various brands which is essential for business
growth and success. Different strategies which can be adopted or implemented by
Nestle:
Maintaining product quality- In order to manage equity of brands, Nestle
company must stick to their quality standards of its products. They need to focus on
each of their brands quality and process of processing food and drinks goods. Having
good quality within goods and services is one of the most essential strategy for
maintaining brand equity. Production management must create long term plan in
context of managing quality and break it into small steps which makes things easy to
achieve goals.
Building loyal consumers- Build loyal customers is very essential for Nestle for
managing equity of brands within their portfolio (Adıgüzel, De Angelis and Amatulli,
2018). Company need to look out for different ways in order to build army of loyal
clients. There is no doubt that Nestle is champion of having loyal consumer and there
are diehard fans of firm in marketplace. So, it is equally significant for them to maintain
loyalty of people across markets. Good promotional strategy is considered within
building loyal customers because it help to generate awareness and increase interest
for purchasing.
Consistency- Nestle must be capable to remain consistent in creating brand
position by promoting new goods in marketplace. Creating consistency within
organizational brand portfolio organization will be able to compete its competitors and
successfully maintain brand equity. Communicating consistent brand message and
creating consistent brand image is very beneficial and important for company to present
consumers that they is dedicated and serious about things which is needed by them.
TASK 3
Strengths of Kit Kat that can be leveraged
Brand leveraging is simple strategy use to power or strengthen existing brand, it
is very essential for Nestle to leverage their brands. In simple words, brand leveraging is
one of the strategy in which power of current brand name is used to help organization
entry into goods which is entirely new but related to goods category and which done by
communicating or providing precious information of the products to clients.

Kit Kat is chocolate covered wafer bar created in UK by Rowntree's of York and
recently produced globally by Nestle as they acquired Rowntree's with exception in US
(Išoraitė, 2018). Number one strength of Kit Kat is their unique offering, its chocolate
covered wafer attract customers towards purchasing. This brand is differentiated
themselves well from dairy milk and other chocolates bars in marketplace. It has many
different flavours including milk, dark chocolate and white. Nestle is well known and
leading firm in production of food products across the world. It has introduced food
goods comprise of chocolate, when people have break, they must take kitkat to relax in
its spare time which enhance their energy. In order to grab the attention of customers
rather than now Nestle will provide additional and different types of flavours within Kit
kat as well known brand, which help to leverage strength and current position of brand
in marketplace. Kit kat is highly demanded in public because of its taste and flavour,
people like to eat and purchase good quality food which is provided in shape of kit kat
chocolate. It is one of the strongest Nestle brand and easily reachable as people found
in small grocery. Kit kat is the well established brand and positioned itself as snack that
customers must have during their break time. this brand has been the wide success in
confection sector credit to their marketing strategies and skills ( (Kasemsap, 2018)). Kit
kat is the first goods that comes up with the chocolate wafer combination and its still
more popular than Cadbury's. Price of this brand is too much lower associated with
good quality as compare to their competitors. All the features about kit kat make its
more popular and attract peoples towards them which help to increase profit margin.
Brand has the very good distribution channels to help wide demand of market and vast
sales quality of new chocolate bar. Nestle produce new products associated with Kit kat,
as they need to leverage it more and more which is beneficial and useful for success
and growth of business or brand.
Weakness that need to attention
Weakness of brand that need more attention along with recommendation-
One of the most popular brand of Nestle is Kit Kat series which is number one
selling chocolates in the world (SWOT Analysis of Kitkat, 2015). There are certain
weakness of this brand which need more attention for improvement.

 Kit Kat have limited shelf life, it cannot be stored for the longer time period.
Company need to focus on this area of brand and provide some more attention
which is beneficial for equity of brand.
 Youngsters as today's generation demand trendy and innovative products, Kit kat
have only few flavours that cannot be able to drive youngsters towards them.
 In recent time, people avoiding having chocolates and becoming more health
conscious. More over, Kit Kat do not have any health conscious chocolates bards
that garb the attention of health conscious crowd.
 Kit Kat have less expanded in some nations which need to more attention, they
need to expand and enlarge especially in villages and small towns.
 Due to less experimentation Kit Kat has lower its positioned within market place
which effect on its popularity and market share. Kit kat recommend to keep
experimenting with different and new flavours that help to keeps bringing out new
types or taste out in market where as consumers just demand to stick to its
original flavours.
Partnership and collaborative agreements
Collaborative agreement define the term of document entered between tow or
more parties in order to engaged with business profitability. It is legal document that
help to established the legal relationship between tow or more companies. Kit Kat is
brand comes under collaboration and partnership with different companies across the
world. It have signed an agreement with Fujiya co. Ltd by which Fujiya sell Nestle
products or brands in Japan. This collaborative agreements presents culmination of the
successful, very long and mutually beneficial collaboration between Nestle Japan and
Fujiya. Both organization will go along its co operation in other related area of business.
As outcomes of agreement, Brand up to the joint venture owned by two firms, will
become the entirely owned subsidiary of Nestle Japan. Collaborative agreements is
very beneficial for business growth as it help to moves brand more effectively towards
its goals, creates great flexibility and engages more customers with them for longer term
period. This agreements contribute to generate markets share and help to increase
profitability and productivity rather than before.

Partnership agreements is the contract between partners in partnership which
based out conditions and terms of business relationship between partners including
distribution of losses and profits and percentages of ownerships. In order to improve
brand equity and increase profitability, Nestle should used partnership agreements
which make them able to serve better than now. Strategic alliance is one of the best
term of partnership agreements in which tow or more parties signs agreements based
on set of agreed objectives required while remaining independent companies. Nestle
recently work closely to Starbucks, as they wants to deal for perpetual global license of
Starbucks customers packaged products and food services goods.
TASK 4
Techniques for Managing and measuring brand value
Brand value-
Brand value is called as value of firm in market or in eye of consumer, there are
several ways by which Nestle can measure brad value such as Net promoter scores
and Brand valuation. In brand valuation techniques organization used financial data
easily available to them in annual report and used by management to compare similar
on fixed timely basis. Net promoter is one of the second way which used by company, it
is method in which survey has been done and clients is asked to rate firm (Xi and
Hamari, 2019). They used to change score into percentage and find out the brand value
by interoperating data on average basis. For example, at time of launch of new products
in market Nestle used to conduct market research few month ago and ask question
about excitement level of people which support them in finding brand value within
market.
Brand Awareness: Brand awareness is word used to find out how familiar is
clients with the companies product in marketplace. Awareness include information or
data regarding organizations offering and product. Their are many ways to measure
brand awareness such as technological search volume data and survey. Search
volume data is technique in which firm uses help of the search engine portal and try to
find out number of consumer has searched about organization product some of tools
for this purpose are Google AdWords Keyword Planner and Google Trends. Survey is
suitable and best way in which company find about brand awareness and used to take

suggestion of them about the product and on basis of that evaluate brand awareness in
market. For example: Nestle used to take help of safari search engine to find out brand
awareness in market.
Market Share: The proportion or area which is covered by Nestle is known as a
companies market share, Their are many ways to find out market but almost all the
firms uses the Mathematical tool in which sell of the business and sell of all industry
determine for specific period of time and relationship in between them is find out.
Generally, relationship which is find out is in percentage to have a better idea (van der
Westhuizen, 2018). Most organization also take help of the outsourced company for
finding out market share in particular location but it generally increase cost of company.
Nestle used to take help of the outsource company in finding out market share of
business as data or information which is collected from that source is most reliable as
compare to other. Nestle has variety of office all across world doing analysis for them in
their location or area.
Consumer attitudes: It can be defined as feelings towards, beliefs towards as
well as behavioural intentions of consumers towards services or product. Customer's
attitude towards product plays significant role negative or positive behaviour of goods.
It is very crucial for organisation to shape positive attitudes towards products or services
and can prove beneficial for products and support in developing loyal customers.
Customer's attitudes towards the brand can be measured by several ways like checking
reviews of the customers, what people believes and think about goods. It can be
illustrated with a specific example of Kit Kat like customers all across the world believe
that Nestle has always adding features in this new products which has allowed
customer to get connected emotionally with goods. This is the reason customers are
waiting for the launch of new chocolates products every year. So, this is attitude of
customers towards the products and service of Nestle.
Purchasing Intent: It can be referred as the probability of clients to purchase
particular product, in simple terms it is a willingness of people to buy product or service
of company (Santana and Gil, 2018). Purchasing intentions of customers dependent
variable which depends on different internal and external factors like perceived values,
recommendations, expectations, product associations, etc. it is essential for the

company to measure purchase intention of market and consumer of Nestle can make
use of predictive modelling methods in order to identify possible future results which is
based on historical data. Nestle can measure purchase intentions of consumer by
categorising and tracking the consumers actions. They can also take a look of Google
trends data for example they can check the direct click of the customers which may be
an indicator of customer purchase intention. Another ways of measuring the purchase
intentions of the customer is analysing social conversations for example Nestle can
combine the powerful insights from any marketing campaign organised by company
which can help the them in measuring purchase intentions of customers.
CONCLUSION
It can be concluded from the above report that brand management is the
marketing concept of marketing which can help the company in increasing the sale of
products and can achieve high profitability in the markets. Also, it is vital for the
organisation to build a strong portfolio strategy and should be able manage the
hierarchy of the brand. It can also be concluded that company should be able to
effectively leverage the brand and each and every brand has some strengths and
weaknesses. It is important for the company to minimise the weaknesses of brand in
order to survive in the market. Current reports also concludes that organization can also
measure as well as manage the brand value by using various tools and techniques and
can be helpful for the organisation in achieving the competitive advantage in the market.

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