Nestle is global company of milk products and nutrition, chocolates’, beverage, catering and many type of confectionary goods. It has its millions of customers worldwide. In the report we have brought a discussion about the brand and analysing is positioning and values. The way Nestle chooses its different core customers different needs with a better way and how it fulfilled satisfaction its consumers by making greater facilities by the aggregate of different products or marketing mixes is shown in market segmentation of Nestlé. Nestle is the biggest nutrition and foods company in the globe, established his headquarter in Vevey, Switzerland. The journey of Nestle begins with Henri Nestlé developed the first milk food for early in 1867, and saved the life of a neighbour's child. This man makes a food for the needy babies who are not able to take mothers feed can use food as an alternative food. Henri Nestle left his job in 1875 but the Nestle was going on a top speed. In the coming year the Nestlé company introduced condensed milk, so that the company became direct and strong rivals. After that the company was joined in 1905 with the a firm named Anglo-Swiss Milk company which was established by two brothers named George Page and Charles Page. The 1920s saw Nestlé's first enter into new products, with chocolate the Nestlé’s second big important activity. Nestlé felt the effects of World War II immediately. At this time the company operates in 86 countries around the world and hired manpower around 283,000.
“kitkat, aerio, Smarties, milky bar, quality street, after eight and rowntrees account for 70% of their UK sales. These brands have a symbolic, nostalgia brand knowledge to UK consumers”
Nestle have an extended range of brands in many markets. To optimise this, they use an intensive distribution for their food and confectionary goods.
Key characteristics include: • Maximum number of outlets covered to maximize availability • Target outlets in as many as geographical regions as possible • Consumer convenience products • High number of purchasers • High purchase frequency • Impulsive purchase • Low price
Keller claims that ‘attributes that were once differentiators can become minimum requirements’
Character associations are strong for brand recall. These characters are strongly recognisable on a global market, acting as a point of parity for Nestle.
For example, The Milky Bar Kid has used the Old West since 1955 to depict freedom and individuality, creating a strong brand salience.
Do we agree?
Nestlé’s Corporate Credibility is high in terms of expertise in its affiliated markets. However, trustworthiness and ethically they are perceived as low.
People and relationships: heavy focus on gender balance, diversity and youth employment builds a positive brand perception. Although, lower in the supply chain child ‘slave’ claims tarnish reputation.
The model suggests an approach to corporate branding that is organisationally integrated and cross‐functional, hence the thesis that it is important to bring the (whole) corporation into corporate branding.
Nestlé linked with various third party sources including Fair Trade and Epode (Obesity prevention) These associations act as positive Corporate Social Responsibility, creating a positive perception to the consumer. However, the legitimacy of Nestlé’s overall fair trade is under scrutiny, with recent claims of child labour and unfair pricing of raw commodity products in Africa. - To further bolster their CSR and perceptions, Nestlé must work with children’s charities to ensure they move away from negative associations, specifically related to baby milk crisis.
An emotional response that stems from another’s emotional state or condition and that is congruent with the other’s emotional state or situation” (Eisenberg et al, 1987
15 People asked to rank Nestle overall as a brand for these elements.
The characters of the brand such as the Milky Bar kid and Nesquik bunny had high brand resonance and were widely seen as a strength of Nestlé .
However, the brand name and overall branding of the corporate side was seen as a weakness. Especially amongst those who had English as a second language, with the three of our subjects struggling with pronunciation of the brand.
The ages of participants varied between 17-25 year olds, with 8 males and 7 females.
Implementing a Brand Mantra • Communicate: A good brand mantra should both define the category (or categories) of the business to set the brand boundaries and clarify what is unique about the brand. • Simplify: An effective brand mantra should be memorable. That means it should be short, crisp, and vivid. A three-word mantra is ideal because it is the most economical way to convey the brand positioning. • Inspire: Ideally, the brand mantra should also stake out ground that is personally meaningful and relevant to as many employees as possible. Brand mantras can do more than inform and guide; they can also inspire, if the brand values tap into higher-level meaning with employees as well as consumers.
When showing 18-45 year olds which adverts nestle have been most successful with, the most recognisable advert
Product Usage occasion:
Nestle have many instant coffee products that are more for the convenience for busy people. One example: Nescafé Original 3in1: what nestle say – “The perfect mix of coffee, milk and a little sugar – for easy, quick enjoyment!”
KitKat focus on the British value of taking a break – and this links with KitKat on having a KitKat during a lunch break for example that is way the smaller 2 – finger size was adopted by Nestle that is easy to take with your packed lunch and contains less calories.
That way Nestle say that it is a;
“perfect snack to enjoy as part of a balanced diet.”
2- finger bar has 107 calories
One the other hand you could say this message been lost – (we can discuss how this has happened, one reason could be: lack of reinforcing the message maybe)
Positioning by product Benefits on Health:
breakfast cereals are made with whole grain which is an important part of having a balanced diet.
Nutrition labelling: Consumers can find clear facts and figures about the ingredients and nutritional profile of all Nestlé breakfast cereals on every pack.
Maggie: help bring out the best in every meal that contains very little fat and also have nutritional advantages also
Milo: Essential vitamins and minerals in Milo products include: calcium for strong teeth and bones iron to carry oxygen to the body’s cells vitamin A for healthy eye sight
Bottles water sourcing: Sourced from natural springs
Positioning by product Attribute:
Optifast meal replacer: The Optifast programme combines the expertise of physicians, registered dieticians and behavioural counsellors with a high-quality, calorie-controlled, nutritional formula.
extra energy for your active day supplemental nutrients for weight gain increase your protein intake great snack for people with diabetes
Resource formula, nestle say:
“Range of nutritional solutions uniquely formulated to provide adequate nutrients, energy and strength when the body needs it most, for instance during recovering periods after an illness, surgery, or injury, during cancer treatment, or in patients with wounds or pressure ulcers to promote healing.”
Deleting consumer comments, being sassy
This led to a viral outbreak of criticism on social media – Facebook users, for example, were irritated by its threats to remove posts on its fan page containing Kit Kat logos that had been altered to read “Killer”. Instead of trying to control social media conversations, Mr Lopez’s team had within two months adapted its approach. First, to deal with the short-term damage, Nestlé suspended sourcing from Sinar Mas, and the company held meetings with Greenpeace in which it provided details of its palm oil supply chains. – unaware of their suppliers
With a focus on the longer term, Nestlé sought a credible external partner to certify the sustainability of its palm oil suppliers. The company chose the Forest Trust, a non-profit organisation that helped the company when it came to liaising with Greenpeace as well as helping Nestlé to audit its suppliers. In May 2010, Nestlé also joined the Roundtable for Sustainable Palm Oil, a partnership of companies and other parties aimed at eliminating unsustainable production. A year later Nestlé had also changed its marketing and communications strategy by hiring Pete Blackshaw for the new post of global head of digital and social media. Mr Blackshaw, a newcomer to Nestlé, was recruited to help provide a fresh perspective.Showing leadership on sustainability is becoming a business imperative. A sustainability risk is potentially big when the whole world can find out about it overnight. Nestlé discovered that engaging with its critics and addressing some of their concerns was more effective than trying to shut down discussion on social media.
They am to improving water efficiency across their operations and have set themselves an ambitious target of reducing our absolute water usage by 50% by 2020 They are determined to play our part in reducing greenhouse gas (GHG) emissions by improving resource efficiency, switching to cleaner fuels and investing in renewable energy. In the UK and Ireland, 92% of the packaging used was already recyclable. They aim to achieve 95% recyclability of packaging by 2015. Set goal in the UK of achieving zero waste to landfill from each of their factories 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.
Nestle has had successful Event Marketing campaigns in the past, with the Perrier water event being a Key Success Factor of 2010.
Using the Obesity charity sponsorships previously mentioned, they could host more events similar to this to further boost their CSR.
Despite the success of this Nescafe campaign, this is the only UK based Nestle product which uses celebrity endorsements.
Nestle are looking towards premiumisation as one of their key growth drivers, so we think that using endorsements from celebrities who represent sophistication such as Clooney could lead to more luxury associations with certain Nestle brands.
Studies have found that ‘confirming cobranding as a viable strategy for partner brands’. With this considered, Nestle should look towards more co-branding ventures. (Singh et al, 2014)
Our Own Brand Association With Nestle
• Bad Baby
• Weak CSR
• 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.
• Nestle’s strongest affiliation in the UK is within the confectionary, coffee and
cereals market, with brands such as Shreddies, Cookie Crisp, Kitkat, Nescafe and
• High Brand Recall: Nestle is cognitively associated with the confectionary, cereals
and coffee markets, being an instantly recognisable brand for UK citizens.
• KitKat, 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
Enhancing 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 Nestle’s brand knowledge is essential to gauge public
• Nestle’s brand knowledge largely negative due to high profile crisis such as animal
testing scandals and child labour claims.
• Despite this, Nestle bolsters a 15.1% market share of the confectionary market, the
third highest in the UK.
Multiple Dimensions of Brand Knowledge
• 1- Awareness: Category Identification.
• 2- Attributes: Descriptive features of the brand.
• 3- Benefits: Personal values and meanings of the brand to an individual
(Nostalgic, symbolic, experiential consequences).
• 4- Images: Visual Information
• 5- Thoughts: Cognitive responses to brand (Usually negative with Nestle)
• 6- Feelings: Personal affective responses to brand related info
• 7- Attitudes: Overall judgements of the brand.
• 8- Experiences: Purchase and consumption behaviours of a brand.
Points of Parity + Points of Difference (POP +
• Despite being the market leader, POP + POD are still essential for Nestlé to
• Nestlé held initial POD in the luxury ice cream market with Haagen Dasz.
• Cadbury and Mars soon entered the segment, making this a point of parity to
• However, this gave Nestlé first mover advantage.
• Nestlé’s aggressive branding strategy leads to purchases of established brands,
limiting start-up costs and risks of launching new products, which also
minimises POP as they are acquiring competition.
Nestle has no overall character, however…
‘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)
• Nestlé must use their branding
effectively to counteract negative
• Having a clear brand image will also
allow the company to be competitive
in low involvement markets such as
coffee, confectionary, drinks and
• Having a strong branding strategy is
key here to enter the evoked list of
• Brand Quality: Nestlé has maintained a strong brand image due to effective
communications and strong performances of it’s core products.
• Brand Consideration: When asked if Nestlé products were appealing over
competitor brands, 8/12 said ‘Yes’, with two others ‘Indifferent’.
• When asked why they prefer Nestle products, 5/12 said taste, 3/12 said better
advertising and 4/12 said personal preference.
• Brand Superiority is also an important aspect, with Nestle in a battle with
Cadbury Kraft and Mars in many low involvement markets.
• Brand Credibility: Nestlé is a high integrity brand, which regularly innovates and
conducts market research, ensuring it appeals to it’s key audiences.
• The majority of Nestlé’s products are low involvement, low risk products.
• This makes their brand feelings mild, as they do not invoke a huge reaction from
their consumers. Nostalgia is a feeling created by most confectionary and cereal
• However, brands such as Nescafé aim to make consumers feel energised and
• Within these low involvement markets, it is key to sell the advantages of
choosing their products over a competitors. Nestlé’s focus on competitive prices,
recognisable brands and innovative product launches spark a reaction from
• 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
• However, with their mineral water brand ‘Pure Life’, their key performance
indicator (KPI) is ‘purity’.
• It is essential for products to perform to these basic levels to ensure the
• 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 based
cereals, it is essential that they maintain a strong image with regards to
Coporate Social Responsibility (CSR)
• Their image has already been impacted with previous poor CSR, which has impacted
• Overall, Nestlé is perceived as an innovative food market player, which in recent
years has improved it’s global image through strong branding and marketing
• Red logo prominent on all products, with individual branding strategies for each
• When asked, 10/10 people associated Nescafe with Nestle.
• However, when asked who owns Rowntree's, 3/10 were able to identify Nestlé.
• Despite this resonance, Rowntree’s still remains a successful product, being of
the highest selling confectionary brands.
• Nestlé operates with high salience, ensuring it’s branding is seen by the mass
and niche markets their array of products appeal to in a congruent manner.
• Integrity coupled with a strong
• The desire to do quality work
• Friendly, open and honest
• A spirit of co-operation and
openness to other ideas and
• A realistic approach to business
• An openness to future trends and
new business opportunities
• A passion for our products and
Customer Lifetime Value
• Nestlé aims to have a product line for each stage of a typical
consumers life cycle, from their infancy to their retirement stage.
• Nestlé operates in the baby food market, breakfast cereal targeting
toddlers/ children, coffee markets for teens/ adults and other
products to target all ages.
• Covering each facet allows brand loyalty to be developed, with
attitudinal behaviours deciding on a certain product.
• ‘The proportion of customers you retain can result in a
disproportionately high rise in profits – 5% retention rate can
result in a 25-100% increase in profits’ (Reichheld et al, 2000)
• Trust is key to determine this, Nestlé must communicate in an
appealing way to each specific market
• Corporate branding is a major concern for Nestlé, with the company being a
• Having multiple sub-brands in different segments creates more oppurtunities for
• Ensuring the brand has core values which remain congruent throughout is essential
to create corporate brand equity.
• Corporate branding requires ‘paying greater attention to the role of employees
in the brand building process’ (Harris, 2001).
• 330,000 employees require training to meet this congruent brand image.
• ’The rise in corporate brands may be ascribed to their perceived value and
greater influence among stakeholders and consumers’ (Laforet, 2014)
Corporate Brand Awareness
Thoughts: Cognitive responses to brand (Usually negative with Nestle)
• Nestle Nutrition and other sister companies look to build on negative publicity
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
ethical standpoint of the overall market.
Gap Analysis (Schultz, 2003)
Essential Elements in
place to build upon
What we need to stop/ change Essential next steps
- Partnership with
- Fair Trade
- Good Food, Good Life
- Improve Fair Trade linkage.
- Focus on CSR strategies and
Social Media training
- Stop unethical behaviour
through supply chains.
- Increase awareness of
- Emphasise Nestlé
- 44.2% of group sales
came from outside
the developed world.
- Latin growth up by
11% in 2014
- Change marketing strategies
in African markets.
- Reputation management and
restoration in the UK and
- Launching new
products in existing
markets to increase
- Developing brand in
Premiumisation - "30% of our sales
last year were linked
with innovations in
the last two to three
- Identifying nutritional and
- Change premium strategy in
- Premium products
linked to existing
- Target ‘emerging
“Brand mantras typically are designed to capture the brand’s points-of-difference,
that is, What is unique about the brand.
Other aspects of the brand positioning—especially the Brand’s points-of-parity—
may also be important and may need to be reinforced in other ways.” (Kevin Keller
“Good Food, Good Life is a great summary of Nestlé’s mission to balance great
taste and nutrition, and to help consumers make healthier choices.”
• Sums up corporate ambition
• Commitment to nutrition, health and wellness
Slogan: Do you love anyone enough to give
them your last rolo?
1980’s Rolo advert (axed in 2003) voted most romantic due to slogan “do you
love anyone enough to give them your last Rolo?”
Beat John Lewis’ Christmas adverts.
“Rolo’s slogan is so ingrained in the public psyche
that you could ask someone on the street today
and they would find it just as current as it was in
the 1990s.” Marketing editor Rachel Barnes.
Slogan: Yorkie – “Not For Girls”
Created and branded in 2002
Banned in 2012, replacing the slogan with the word “original” relating to the
Andrew Harrison, the marketing director at Nestle. "Most men these days feel
as if the world is changing around them and it has become less and less
politically correct to have anything that is only for males
• Product Usage occasion: Nescafe and KitKat
• Positioning by product Benefits on Health: Cereals, Maggie seasoning, Milo
and bottled water.
• Positioning by product Attribute: Optifast meal replacer, Boost: energy drink
and Resource formula.
2010 Social Media Crisis
Early 2010 Greenpeace launched a campaign
highlighting Nestlé's palm oil sourcing practices.
Take a Break viral ad campaign featuring an office
worker gnawing on an Orang-utan's finger
of a Kit Kat Bar. The tag line was Kit Kat Killer.
Nestlé's Facebook page was overrun with people
begging Nestle to stop using palm oil and killing
Nestle deleted many of them and
posted the following message.
“To repeat: we welcome your comments, but
don’t post using an altered version of any of
our logos as your profile pic—they will be
What They Did
• Force the video’s withdrawal from
YouTube, citing copyright.
• Deleted negative social media
comments but replied to a few
• Suspended sourcing from Sinar
• Held meetings with Greenpeace,
which gave them details of their
palm oil suppliers
• Partnered with trusts that would
• Made sustainability a brand value.
• Apologise Immediately
• Respond to both positive and negative
consumer queries in a professional
• Social media guidelines regarding what
can and cant be discussed with
• Research suppliers before working
with them, better understanding of the
• Keep consumers up to date using
social media, to inform them they have
partnered with charities.
What They Should
Corporate Social Responsibility Goals (CSR)
They aim to improve water efficiency across their reduce absolute water usage 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
In the UK and Ireland, 92% of the packaging used was already recyclable. They
aim to achieve 95% recyclability of packaging by 2015.
Set goal in the UK of achieving zero waste to landfill from each of their factories 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.
• Through qualitative and quantitative research, we’ve found 3 key areas of
branding which Nestlé need to focus on. EXPAND ON FRIDAY
Possible CSR Venture- Event Marketing
• June 2010 Nestle waters brand Perrier completed 33 years as a
prominent sponsor at the French championship Roland Garros.
• Huge sales opportunity – 57,000 bottles sold
to public during tournament.
• Nestlé should host more events
such as this to further boost it’s
• - Necafé’s George Clooney endorse was one of the most successful
celebrity endorsements in recent history, with a 30% increase in
sales from 2007-2008.
• This endorsement was primarily targeted at women, lowering the product
sales percentage of men.
• - However, despite the success of this
endorsement, none of their other popular
confectionary products feature any
• This could be an altered aspect of their
marketing programs which improve overall
• Popular Milo Marathon in Philippines –
Continues to have strong brand
• Promotional efforts are shared by
the Milo marathon and Nestle to bring
greater attention to the branded event.
• Sales at Nestle Philippines have grown
at 4% for the last 10 years.
Scale Measures for Smarties
Levels of Brand Hierarchy
Nestle Pet Care
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University Press, Cambridge.
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