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