UNIVERSITY OF JAFFNA-SRI LANKA

FACULTY OF MANAGEMENT STUDIES & COMMERCE

DEPARTMENT OF MARKETING

BBAM 3233: BRAND MANAGEMENT

ASSIGNMENT-II

SUBMITTED BY
MR. J.S.S. KARUNATHILAKE 2014/BAD/300
MR. A. D. A. D. K. SUMATHIPALA 2014/BAD/286
MR. G. J. R. FERNANDO 2014/BAD/296
MR. D. M. L. A. DISSANAYAKE 2014/BAD/294

DATE OF SUBMISSION: 10h October, 2017

Nestlé
Like many other reliable companies nestle has established, reliable relationship
with customers around the world. Historically nestle was established by four
brothers, George page and Farine Lactée Henri Nestlé in 1866 at Switzerland.
Today Nestle is a topmost food company in the world which deals with baby food,
pure water, beverages and pure milk.
Nestle equity brand is categorized by target market, which mostly include cereals,
yogurt, coffee, water, beverages Nesduik, , Opt fast, kit Kat, ice crème, infant food,
chocolate, performance, nutrition, healthcare nutrition, frozen food, refrigerator
products, baking food, pet food pet care products, and eye care heat.
These brands are everywhere in the world and has strong connections in
competitive market. Universally nestle brands create multiple food products which
can be domestically used by people.
Why Brand Equity of Nestle is best.
We can see that today every market has large competition; companies are trying to
achieve customer satisfaction. Why nestle is so successful in achieving customer
satisfaction. The reason is its corporate brand performance. The Nestle brand
strategy is developing shared values in business through corporate brand. They
protect and enhance the business sustainability by delivering total quality
management in their food quality.
There is the core concept of nestle brand is good food must be for good life.
Therefore Nestle is shareholder friendly that depicts the welfare of society as a
whole.
It has proven researched that nestle has superb brands in the food and beverage
industry. That is why nestle develop the atmosphere that lead to honesty, purity
and integrity in all segments of food industry business.

The Nestle Brand Personality.

The Nestle management fully understands the role of brand equity in the
competitive market. They have given much more important for this element in the
last few decades. The ultimate market strategy of nestle is to design and maintain
his brand through proper use of advertisement by offering fast moving consumer
goods.
It has universal proven fact that nestle has potential customers all around the world
who trust nestle brand with loyalty, respect and willing to buy without any fear.
This success happens by offering total quality management services in nestle
brands and achieving customer satisfaction. Nestle always has topmost branding
strategy that

Nestle Brands Meet Customer Satisfaction

Nestle believes that the role of its brands has always met customer satisfaction in
all the way. Without customer trust and integrity they cannot acquire long term
relationship. Nestle brands always interact with the sensory emotions and feeling
of the people where it serves as an additional advantage by its simplicity and
secure prices. Customer satisfaction has been the core concept of nestle brands,
nestle has successfully achieved their brands on the target market.
Brand Equity.
‘Brand equity includes not only the value of the brand, but also implicitly the value
of proprietary technologies, patents, trademarks and other intangibles such as
manufacturing know-how’ (Reponen, 2000)

Features of Nestle Brand Equity.

Nestle has multiple brand categories such as kit Kat, health care nutrition, frozen
food. Also, it has a single brand identity like crunch, gold flake, ski, coffee, and
Buxton. In addition, Nestle brands influence the mind of consumers and there are
the experienced based associations behind them. Nestle brands have corporate value
because consumers are always willing to buy them with full consent.

Brand Association With Nestle

Brand Knowledge
 Nestle purchased well known and loved brand Kit-Kat in 1988
 The purpose was not so much to help Kit-Kat as to enhance Nestle's image in
the UK By associating it with quality and leadership in chocolate’ (Aaker Et
Al, 2000).
 Brand familiarity and brand likability are two separate entities.
 Understanding the elements of Nestlé’s brand knowledge is essential to gaug
e public Perception.
 Nestlé’s brand knowledge largely negative due to high profile crisis such as a
nimal
 Testing scandals and child labor claims.
 Despite this, Nestle bolsters a 15.1% market share of the confectionary mark
et, the Third highest in the UK.

Brand Awareness.
Thoughts: Cognitive responses to brand (Usually negative with Nestle)
(Keller, 2003)
 Nestle Nutrition and other sister companies look to build on negative publici
ty through CSR campaigns.

 As the #1 food brand in the world, Nestlé already has high brand recognition
.
 Partnerships with charities also look to influence opinions and change the E
thical standpoint of the overall market.

Brand Imagery.

 In the UK market, Nestle aim for ‘Innovation, Health and Sustainability’

This resonates through their branding, offering fair trade coffees, healthy
cereals and pure mineral water.

 With operations in ‘unhealthy’ markets such as chocolate bars and sugar base
d cereals, it is essential that they maintain a strong image with regards to Cor
porate Social Responsibility (CSR)
Their image has already been impacted with previous poor CSR, which h
as impacted their image.
Overall, Nestlé is perceived as an innovative food market player, which in recent ye
ars has improved its global image through strong branding and marketing practice.

Multiple Dimensions of Brand Knowledge.

 Awareness: Category Identification.
 Attributes: Descriptive features of the brand.
 Benefits: Personal values and meanings of the brand to an individual
(Nostalgic, symbolic, experiential consequences).
 Images: Visual Information
 Thoughts: Cognitive responses to brand (Usually negative with Nestle)
 Feelings: Personal affective responses to brand related info
 Attitudes: Overall judgments of the brand.

3Experiences: Purchase and consumption behaviors of a brand.

(Keller, 2003)

Brand resonance.

 Having a clear brand image will a

lso allow the company to be comp
etitive in low involvement market
s such as coffee, confectionary, dr
inks and cereals markets.

 Nestlé must use their branding eff

ectively to counteract negative pu
blicity.

 Having a strong branding strategy is key here to enter the evoked list of the c
onsumer.
Brand Architecture
Nestle is the world’s largest food group, with over 2,000 brands in a multitude of
Markets, each with their own individual brand knowledge structure.

• Nestlé’s strongest affiliation in the UK is within the confectionary, coffee and

Cereals market, with brands such as Shreddies, Cookie Crisp, Kitkat, Nescafe and
Aero.

• High Brand Recall: Nestle is cognitively associated with the confectionary,

cereals and coffee markets, being an instantly recognisable brand for UK citizens.

• Kit Kat, Aero, Smarties, Milky Bar, Quality Street, After Eight and Rowntree's
account for 70% of their UK sales. These brands have a symbolic, nostalgic brand
knowledge to UK consumers
 Brand Values.
 Integrity coupled with a str
ong work ethic
 The desire to do quality wo
rk.
 Friendly, open and honest c
ommunication.
 A spirit of co-operation and
openness to other ideas and
opinions.
 A realistic approach to busi
ness.
 An openness to future trend
s and new business opportu
nities.
 A passion for our products a
nd brands.

Brand Elements.

Brand Elements Nestle

Brand Performance.

 The Nestle brand aims to satisfy the performance needs of their consumers.
 In the confectionary, coffee cereals markets, they aim to perform in taste and
quality.
 However, with their mineral water brand ‘Pure Life’, their key performance i
ndicator (KPI) is ‘purity’.
 It is essential for products to perform to these basic levels to ensure the custo
mer satisfaction.

Corporate Societal Marketing.

 They aim to improve water efficiency across their reduce absolute water usag
e by 50% by 2020
 Determined to play our part in reducing greenhouse gas (GHG) emissions by
improving resource efficiency, switching to cleaner fuels and investing in ren
ewable energy.
 In the UK and Ireland, 92% of the packaging used was already recyclable. T
hey aim to achieve 95% recyclability of packaging by 2015.
 Set goal in the UK of achieving zero waste to landfill from each of their facto
ries by 2015, with full recovery of unavoidable by-products.
 They have signed up to the Freight Transport Association’s Logistics Carbon
Reduction Scheme which aims to reduce CO2 emissions by 8% by 2015.