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Brand Management Strategies: Presented by

This document provides an overview of Nestle's brand management strategies. It discusses how Nestle acquired Rowntree Mackintosh PLC in 1988, making it the world's largest chocolate manufacturer. It then covers Nestle's branding strategy of using corporate brands to support product brands. As an example, it describes how Nestle internationalized the Kit Kat brand by adopting a double branding strategy with Nestle and customizing the brand for different countries. Finally, it discusses Nestle's brand positioning and marketing of the Kit Kat brand.

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1K views

Brand Management Strategies: Presented by

This document provides an overview of Nestle's brand management strategies. It discusses how Nestle acquired Rowntree Mackintosh PLC in 1988, making it the world's largest chocolate manufacturer. It then covers Nestle's branding strategy of using corporate brands to support product brands. As an example, it describes how Nestle internationalized the Kit Kat brand by adopting a double branding strategy with Nestle and customizing the brand for different countries. Finally, it discusses Nestle's brand positioning and marketing of the Kit Kat brand.

Uploaded by

amandeep02861054
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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BRAND MANAGEMENT

STRATEGIES
Presented By:
Abhishek Raj
Amandeep Kaur
Anuj Khare
Naveen Kumar
Parul Chugh
Rohin Mathur
Shweta Bharti
Introduction
• Nestle - World’s largest consumer packaged food
company.
• Acquired Rowntree Mackintosh PLC in 1988 for £2.5
billion.
• Rowntree - World’s 4th largest manufacturer of
chocolates and confectionary products (Kit Kat, After
eight, Smarties and Rolo).
• After acquisition nestle become worlds largest
chocolate manufacturer.
• Rowntree follow one product one brand policy.
Company Background
• Mid 1860’s henry nestle innovated a product which
was meant for infant nutrition.Later in that year
production of formulae named Farine Lactee Nestle
began in Vevey and Nestle Company was formed.
• In world War 1, nestle Contracted with military of
various countries.
• In 1938 nestle discovered a soluble powder named
Nescafe that revolutionalized coffee drinking around
the world.
• Nestle Acquired
– Alimentana (1947)
– Crosse & Blackwell (1950)
– Findus (1963)
– Vittel (1969)
– Libby (1971)
– Stouffers (1973)
– L’oreal (1974)
• In Mid 1970’s financial position deteriorated.
• Between 1980-84 Nestle divested many non strategic
and unprofitable businesses for SFr 8 Billion.
• In first half of 1990’s was favorable for Nestle as
several countries dismantled their trade barriers.
• By late 1990’s Nestle has emerged as world largest
consumer packaged food company.
• World leader in various product categories (Coffee,
mineral water, beverages and chocolates)
Branding Strategy
• In 1996 - 40% of total revenue came from Product covered by
nestle Corporate Brand.
• Logo was an important part of corporate identity.
• Logo convey - Security, maternity and affection.
• Each worldwide corporate strategic brand was managed by
senior executive called - brand Champion.
• Each product was supported by one of its corporate brands - eg
– Nestle - Corporate brand
– Milo - Product Brand
– Hence the name Nestle Milo.

Each worldwide product brand was managed by concerned SBU. Eg


POLO was managed by Chocolate and confectionery SBU.
• Some product brands were independent of their corporate
brands,
• Maggi - Carries a guarantee seal of Nestle.
• Maggi and Buitoni have separate brand identity.
• No seal on products consumed by animals and mineral
water.
• Development of brand positioning and communication
system to communicate long term vision of brand
personality.
• Development of positioning documents for worldwide
brands and key regional brands.
• Establishment of minimum labeling standards.
Internationalizing the KIT KAT Brand
• Before 1980’s KIT KAT (Rowntree) was leading brand in UK,
but ignored outside the country.
• Market research suggested that every aspect of KIT KAT UK
brand mix needs customization.
• Every country manager created his own brand design of KIT
KAT.
• “Have a break have a kit kat” meant nothing to Europians.
Double branding strategy
• In 1990’s Nestle support KIT KAT with Nestle - one of its
corporate strategic brand, hence now KIT KAT is Nestle KIT
KAT.
• After this Nestle again emphasized on its ad slogan.
• In mid 1990’s kit kat sale in Europe was more than double.
Divesting Non-Strategic brands

• Nestle tried to make glocal brands.


• Diversification into new food segments like
frozen foods.
• Concentrated on high value added sector
including pizza, dishes and snacks.
• Many brands are stronger in some regional
areas like maggi in Germany due to strong
branding.
Mental map
Chocolate Love

Layered Tasty

Smooth Wafer

Crispy
Break Snack Sharing
CBBE Model
• Resonance - Highly loyal taste loving
customers.
• Judgment - Best in class, thick chocolate
covered crispy wafer.
• Feelings - Love, warmth and sharing.
• Imagery - Trust and affection.
• Performance - Availability and tasty
chocolate.
• Salience - synonymous with having a 'break'
POP and POD’s
• POP
– Well packed
– Crispy wafer
– Milk chocolate
– Tasty
– Quantity
• POD
– Crème filled wafer
– Smooth milk chocolate
– Four finger bar
– synonymous with having a 'break’
– represent much more than just the physical
'snap' of the wafer fingers!
Brand mantra
• Emotional modifier - Love, affection and
sharing.
• Descriptive modifier - Wafer chocolate.
• Brand function - Chocolate hunger
snack (Break time snack)
Thank you

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