Evaluation of Nestle's Brand Management Strategies

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Brand management

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Task 1...............................................................................................................................................2
Brand and brand equity overview................................................................................................2
Building the successful brand stages...........................................................................................2
Marketing department role in brand management.......................................................................3
Successful strategy to strengthen the brand equity......................................................................3
Strategies of brand revitalization, reinforcement, an extension of a brand.................................4
Branding importance as a marketing tool....................................................................................6
Task 2...............................................................................................................................................7
Analyze the organization’s brand portfolio strategy...................................................................7
Provide an illustration of the hierarchy management of brands within organisations portfolio. 9
Analyse strategies used for managing the equity of the brands within the organisations'
portfolio.....................................................................................................................................10
Task 3.............................................................................................................................................11
Critically evaluate the brand strengths which can be leveraged................................................11
Weaknesses which need attention by providing some suggestions...........................................13
Task 4.............................................................................................................................................14
Using specific organisational example, provide an evaluation of various techniques used for
measuring and managing...........................................................................................................14
Market Share..............................................................................................................................14
Brand Awareness.......................................................................................................................15
Purchasing Intent.......................................................................................................................15
Consumer Attitudes...................................................................................................................15
Conclusion.....................................................................................................................................17

References......................................................................................................................................18

LIST OF FIGURES
Figure 1: Logo of Nestle..................................................................................................................2
Figure 2: Brand management criteria..............................................................................................3
Figure 3: Keller’s Brand Equity Model...........................................................................................5
Figure 4: Nestle Branded house.......................................................................................................7
Figure 5: Nestle House of Brand.....................................................................................................8
Figure 6: Managing and measuring the brand techniques.............................................................14

Introduction
Brand management is planning and analysing of how a brand will be perceived in a market. To
develop strong relations with a target market, this is important for managing the brand. The
brand management tangible elements include a product look, packaging and price etc. The brand
management process involves basically by establishing and determining the brand positioning in
a market which will be shown in the report. In the report, the Nestle case study will be chosen as
a large multinational organization of Optimum Impression Ltd advertising organization. Nestle
main objectives are to provide the variety and high-quality products to its consumer, which helps
in attracting them, and this will be beneficial for them to grow more rapidly in a market. Nestle is
a well-recognized brand, and a strong brand is essential for every business as it enhances the
organizational value which provides its employees with the right direction and also motivates
them to make the new consumer easier.
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Task 1
Introduction
Brand and brand equity overview
Like many of the other organization, the Nestle has been established a strong relationship with
their consumer all around the world. Nestle today is the leading food organization in a world that
deals with pure milk, beverages, purified water and baby food. The brand equity of the Nestle is
being categorized by the target market that includes mostly drinks, kit Kat, coffee, ice-cream,
frozen food etc ((Lilleker, 2015). Such brands are everywhere in a world who has a high
connection in a market of competition. Nestle brands universally create multiple products of food
that is used domestically by the people.
Figure 1: Logo of Nestle
(Source: http://polandball.wikia.com, 2019)
Building the successful brand stages
Successful branding process will enhance the sales of the organization services and the products.
To develop a successful brand, it is necessary to create the various brand element like slogans
and logo, in which the branding process will represent the true organizational spirit. The, most
famous model which is used is Keller’s brand equity model that is basically focusing on the
preferences and desires of the consumers as well as also launch the various strategies.
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Marketing department role in brand management
The marketing department is a vital part of any activity of the business. This is what actually
creates the consumers as well as also generates the income, and guide appropriate towards the
specific brand. A marketing department is a key success of Nestle for enhancing sales. As this
established and promotes the Nestle in their niche that is particularly based on the business
services and the products which they are offering to the consumer (Schroeder, 2017). This
department will help the business for building the relationship with the consumer; generate the
income and involving the consumer too.
Main body
Successful strategy to strengthen the brand equity
To become a successful brand for the organization, it is necessary to keep an eye on the
competitor's activities and organization trend. The most effective way for the brand in terms of
building brand equity is basically to meet with the particular needs and desires, which currently
no one is satisfying. The appropriate quality of services and products is the main backbone of the
whole brand which Nestle has to establish in their business. Also, the competitive analyses,
consistent of the brand image as well as listen to the consumer are the essential strategies using
for successful of the brand equity.
Figure 2: Brand management criteria
(Source: Brand Management, 2019)
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Strategies of brand revitalization, reinforcement, an extension of a brand
Brand reinforcement: It is referred to those activities which are associated of getting to those
customers who are trying of having the specific brand in order to become the repeat purchaser as
well as also used to attract at the new consumer (Cornwell and Lee, 2016). The main objective of
the brand reinforcement of nestle is effective growth in the life cycle of the product. The Nestle
marketing department will adopt such a strategy to remind their consumer towards their specific
brand and their benefits too.
Brand revitalization: This is also a successful strategy of marketing, which is adopted when
goods are reaches to their product life cycle maturity stage and profits will automatically fall.
This is one of the main attempts in terms of bringing the goods back in a market as well as also
secure equity sources that are consumers. For example, Pepsi products such as Mountain Dew
were launched in the year 1969 along with Yahoo Mountain Dew tagline, which flourished in a
market till the year 1990.
Brand extension: It is another marketing strategy under which innovative goods is implemented
in an actual name of the brand. The product under which category it is launched is unrelated or
related to the current category of the brand. Under this, the customer can relate the innovative
product easily based on their previous experiences with a specific brand. An expense in this is
incurred mainly by the branding, packaging and labelling etc (Wheeler, 2017).
Keller’s brand equity model
This model will highlight the four major steps which are followed in Nestle in terms of managing
and building the brand, which will further be supported by the consumer.
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Figure 3: Keller’s Brand Equity Model
(Source: Hitesh Bhasin, 2019).
Brand identity: It is the main way in which consumer look towards the brand and easily
distinguishes to the other firm’s brand. This will how defines the brand itself towards the
consumer. The brand identity is mainly built when the consumer is aware of the specific brand
products. The brand work here is to create a strong identity of brand for attracting the consumer
and organizational benefits too.
Brand meaning: The brand meaning is the most effective stage which is used mainly for
designing the appropriate information of the products and services and also gives the inflation of
the reliability as well as utilization of the products. Under this brand, performances are also
explained by considering the various firms’ examples that have high performance in the market
such as Apple, Cadbury etc.
Brand response: Under this stage, the buying experiences of the consumer are stated. The
positive consumer feedbacks’ will helps the Nestle to build new products and grow more rapidly
in a market (Cho et.al, 2015). Nestle has also gained a positive sign from the consumer in terms
of providing them with high-quality products.
Brand resonance: Nestle should use its branding effectively in terms to counteract the negative
publicity. By having the clear image of the brand, this will allow an organization to become more
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competitive in a market of low involvement such as cereals markets, drinks, confectionery and
coffee market.
Conclusion
Branding importance as a marketing tool
The branding is important as for not only of what this makes the best impressions onto the
customers, but also this is allowing the customers of what they have to expect from the
organization. Many areas are there which is used mainly for developing the brand by including
the logo, reputation, promotional merchandise, consumer services and advertising. The effective
branding will help actually an organization to attract the customer of their products. This can be
a tool which sets its products in an appropriate manner and variety of the options is also available
which the customer is having at its disposal. Good branding will add the value of the perceived
product actually (Heding et.al.2015). The main branding importance purpose is to protect its
products from any kind of damage mainly.
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Task 2
Analyze the organization’s brand portfolio strategy
Brand portfolio management
The management of the brand portfolio is essential for managing the numerous brands in terms
of fulfilling the needs of the consumer at a single time. Under this single brand, sun brands are
included in this by having various trademarks. Also, it plays a vital role in making suitable
decisions in terms of introducing the various sub-brands, extenuation as well as positioning of
the brand too. Nestle successfully utilize the brand portfolio strategy in terms of increasing
overall equity of brand, which is explained below:
Branded House: Under this structure, which is mainly characterized by brand along with a good
reputation in a market as well as also this is effective mainly for aligning the goods or services
incorporate brand positioning. Like for example, under Nestle, tea, chocolates and the coffee
powder are available in a market (Cooper et al., 2017). It is one of the most effective structures
for enhancing the brand awareness in the consumer as well as also this supports Nestle to
minimize the overall cost of the marketing and advertisement activities.
Figure 4: Nestle Branded house
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(Source: Mihai Andrei, 2017)
House of brands: That type of the products which is in this brand is being considered as the
primary brand rather than of the organization. It is also one of the effective strategies for the
multinational organization such as Nestle that is able to manage its huge variety of the goods
under an organizational brand. Like for instance, Kit Kat is most famous as well as well known
chocolate brand name that is liked by the most of the customers and kids too.
Figure 5: Nestle House of Brand
(Source: www.nestle.com, 2019)
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