What is Brand

According to American Marketing Association a brand is a name term sign symbol or design or a
combination of them, indeed to identify the goods and service of one seller or group of seller and
to differentiate them from those of competition.

Brands verses product

A product is anything we can offer to a market for attention, acquisition, use, or consumption
that might satisfy a need or want.

A brand is therefore more than a product, because it can have dimensions that differentiate it in
some other way from other products designed to satisfy the same need.

Why do brand matters

Consumer

 Identification of source of brand

 Assignment of responsibilities
 Risk reducer
 Search cost reducer
 Promise, bond, or pact with maker of the product
 Symbolic device
 Signal of quality

Manufacturer

 Means of identification to simplify handling or tracing

 Means of legally protecting unique features
 Signal of quality level to satisfied customer
 Means of endowing products with unique associations
 Source of competitive advantage
 Source of financial returns
Neslte

Nestlé is the largest food and beverage company in the world. It is also well on its way to
becoming world leader in nutrition, health and wellness. It is a Swiss transnational food and
drink company headquartered in Vevey, Vaud, Switzerland. It has been the largest food company
in the world, measured by revenues and other metrics, for 2014, 2015 and 2016. It ranked No. 72
on the Fortune Global 500 in 2014 and No. 33 on the 2016 edition of the Forbes Global 2000 list
of largest public companies. Nestlé markets its products in 130 countries across the world.

Neslte began in Switzerland in mid 1860 by henri nestle. Mr nestle began his business in small
swiss lake inside the town of the vevey, using milk from local area. Its first produce is baby
product.

Customer based brand equity of nestle

Nestlé is more than just the largest food and beverage company in the world. Increasingly,
Nestlé is becoming the world’s leader in nutrition, health and wellness. From the start, nutrition
has been at the core of our business. However, today we place far greater emphasis on it – and on
health and wellness. Our Corporate Wellness Unit and the individual business units are driving
forces in bringing Good Food, Good Life to all our consumers. The whole company is dependent
on consumer choosing Nestlé products in preference to our competitors’ products. That’s why
we are wholeheartedly dedicated to the consumer and focused on meeting his or her needs.

Every day Nestlé sells over a billion products. These individual consumer transactions give the
Company total annual sales of more than CHF 90 billion*. For success and growth, we have to
build the greatest possible consumer trust in both the Company and its products. One way is to
get as close to the consumer as possible. This is quite a challenge. It means understanding people
of all ages… babies, toddlers, growing children, and adults from teenager to old people; and
being aware and appreciative of all their needs and motivations. Our aim is to achieve better
consumer understanding than our competitors. “The consumer at the heart of all we do “is
therefore a maxim that is followed with great determination throughout Nestlé. Our employees
work hard to put themselves in the shoes of the consumer at every step – from product concept to
the writing on the pack. Our executives spend days observing consumers in their homes and in
the shops. Often this type of hands-on research is more rewarding than huge quantitative studies.
Brand salience

The customer of nestle showed interest on product because of trust on quality of nestle as the
heart of which there are qualitative product and its long-term commitment to deliver better
products to customer. Brand awareness of customer about nestle is high because whenever they
think about baby food, the very first thing come to their mind is nestle.

Brand performance
Nestle’s product is highly satisfying to the customer at the basic ingredients level. It is satisfying
the customers in terms of quality, purity and taste. This brand is most preferred among the
friends colleagues and family of the consumer.

Brand imagery

This is a brand that brings satisfaction and comfort in terms of purity and quality in the
consumers as compared to other baby food products or coffee.

Brand judgements

Nestle is an trustworthy, innovative and likeable company because it regularly conducts

marketing research to keep consumers view in mind and always give consumer good value of
their money.

Brand feelings

Nestle makes the customer energized and enlightened and it makes consumer feel that they are
experiencing something new and special. People have very positive feelings about brand values
and name it communications to the people on general.

Brand resonance

Nestle brand loyalty is very strong in the consumers of the country. Consumers believes that
purity quality taste offered by this brand is supreme to other brands. People are using it since
many years and is the first choice of the people.

Sources of brand equity

Brand equity is defined as the differential effect that knowledge about the brand has on consumer
response to the marketing of the band.

Or, Brand equity is a set of brand assets & liabilities linked to a brand, its name & symbol, that
add to or substract from value provided by a product or service to a firm and/ or to that firms
customers.

Brand awareness
Brand awareness is the ability of a potential buyer to recognize or recall that a brand is a member
of a certain product category. As research conducted or asked people to recall the mineral water
than most of them said its Nestle pure life. So it’s proven that Nestle has a strong recognition
among customers.

Brand image

From few decades through their different advertisement for different product, they almost target
all types of audience but their motto is same to deliver the same message to maintain their brand
equity and their moto was to maintain an image of trust love fun joy good health and reflection
of quality.

Brand association

Brand association can be defined as image in consumers mind for a particular brand. It is the
consumer perception about brand. Nestle S.A. is worldwide largest food company. It has its
fame in 86 countries and employs a large amount of individuals. Nescafe is a coffee brand made
by Nestle and is today world famous in almost all the households. When consumer think about
Nescafe they remember that it is world famous brand, it is tasty and low price.

Value of brand equity

Brand equity is the intangible added value that a brand provides to a company beyond its
physical net assets.

For nestle, mother brand of Nescafe, which is established for 131 years, to create and maintain
brand equity is not matter. It has seen as one of the most professional global brand. Nescafe,
especially in Thailand, is perceived to be higher price coffee relative to its competitors due to its
high image of TVC that intend to inspire C/D people by use B/C look. Target of Nescafe RTD are
those C/D people. Nescafe wants to maintain its image of cool and trendy.

Brand positioning

The brand`s positioning is the place in the consumers mind that you want your brand to own. A
strong brand position means that the brand has a unique, credible and sustainable position in
the mind of the consumer.
Nestle communicates itself as ‘Good food, good life’. Cerelac is a name of quality and best food
for babies and the positioning statement of Cerelac also tells the same as ‘best start to a
healthier future’.

Nestle does positioning on several bases:

1) On product attributes
2) On needs or benefits
3) On usage occasion
4) For classes of users
5) Against competition.

Points-of-parity and points-of-difference

Points-of-parity is the point to reach to the market and stand in the line of competitors. Similar
menu choice, similar in store facilities, similar pricing, good quality product, chocolate
manufacturing legacy in Kit-kat are common strategy of Nestle in POP.

Points-of-difference are defined as attributes or benefits that consumers strongly associate with
a brand, positively evaluate. And believe that they could not find to the same extent with a
competitive brand. High quality, discount offer, product flexibility, emotional connect with
consumers, excellent distribution system, excellent channel members, attractive packaging, low
price than other product are common strategy of Nestle in POD.

Brand mantra

Brand mantra is a short, three to- to five- word phrase that captures the irrefutable essence or
spirit of the brand positioning. It’s similar to “brand essence” or “core brand promise”. For
Nestle brand mantra is

Emotional modifier Descriptive modifier Brand function

Nescafe Bringing Great tasting coffee Well being
people together
Nestle pure life Creating shared value Guaranteed quality Staying hydrated
 KitKat Love, affection and Wafer Chocolate Chocolate
sharing hunger snack

Brand elements

The brand name, logo, slogan, jingle, and packaging style are all examples of Brand Elements.

Nestle brand elements are

Brand name:

Brand name is a word(s) that identify not only a product but also its manufacturer or producer.
A brand name is the name of the distinctive product, service, or concept. Branding is the
process of creating and disseminating the brand name. Nestle brand name is Nestle S.A. that is
well known for every consumers. When consumers hear about Nestle they can recall or
recognize this brand in just a few second.

URLs

URLs (uniform resource locators) specify locations of pages on the web and are also commonly
referred to as domain names. Nestle domain name is nestle.com and its register in 1994-10-25.
It was register by NOM IQ LTD (DBA COM LAUDE).

Logo

Logo is a symbol or other design adopted by an organization to identify its products, uniform,
vehicles, etc. The Nestle logo is often considered as one of the world’s most iconic and instantly
recognizable logos. It has undergone several modifications over the years.

Different logo of nestle

1868 the logo changed when new owners took over the company. 1875 the next design
became combined with “nestle”. 1938 the design was simplified. 1966 in the design, they
removed the worm from the bird’s mouth since the company wasn’t just about nutrition any
more. Also, instead of four birds, there were now three. This was to illustrate the modern
family of two children. 1988 the “nestle” part of the logo use continuation because your eye
follows the direction the line goes.

Current logo of nestle looks like this. It represents a modern family, health and family well
being.

Slogan

Slogan are short phrases that communicate descriptive or persuasive information about the
brand. They often appear in advertising, but can play an important role on packaging and in
other aspects of the marketing program. Nestle slogan is “ Good Food, Good Life”.
Marketing Communication Options

Marketing communications are the means by which firms attempt to inform, persuade, and
remind consumers- directly or indirectly- about the brands they sell.

Media advertising

Advertising is any paid form of non-personal presentation and promotion of ideas, goods or
services by an identified sponsor. In media advertising Nestle use these communication tools:

 Television commercial
 Radio
 Newspaper
 Magazines

Direct response advertising

Promotional method in which a prospective customer is urged to respond immediately and

directly to the advertiser, through the use of a 'device' provided in the advertisement. Nestle
use these following tools:

 Print media
 Broadcast media
 Computer related

Trade promotions

Nestle use trade promotion to persuade its retailers to carry its brands, give it shelf space,
promote it in advertising and push it to consumers/.retailers encouraged to purchase more and
more products and push them to the ultimate shoppers or consumers. Following techniques they
most frequently use as trade promotion:

Cash discount
In this method retailers are encouraged to purchase a large volume of product at a discounted
price. Nestlé set the conditions to get the discount. When a retailer purchase a fixed amount of
product then he becomes eligible for the discount. For example, Normal price of per case
MAGGI noodles is TK. 600. They may ask retailers to buy 5 cases at a time at TK.550 per case.

Free products

By following this technique Nestlé offers retailers free product on a fixed amount purchase.
Retailers are asked to purchase a fixed amount of product to get the free product.
For instance, they may asked to the retailers to purchase five cases of MAGGI noodles to
get two packets extra with each case.

 Special Drive

In this technique Nestle encourage the retailers to sell more and more product throughout the
season. In return, they provide attractive benefits to them. They offer special trip, and other
attractive prices.

Consumer promotions

Consumer promotion are design to change the choices, quantity, or timing of consumers
product purchases. To differentiate their product and increase their sell Nestle use following
tools for consumer promotion:

1.Premium

Sometimes Nestlé offers special gifts to the purchasers to encourage prompt purchase.
This gifts may be related to the product or may not be related to the product. For example,
sometimes they offer ‘Coffee Mug’ with NESCAFE or small bowl with MAGGI soup.

2. Contests

In this method Nestlé calls for consumers to submit an entry – essays, drawings, or other
creative activities to be judged by a panel that will select the best entries. Often the condition is
that an empty pack of that particular product have to be attached with the entry.
3. Cash discount

In consumer sales promotion Nestlé also offers cash discount for the consumers. In
this technique they reduce the price of the product to get the higher sales volume or new
customers for the product. For example sometimes reduce the price of MAGGI noodles
for a particular period of time.

Online Marketing Communication

To spread their brand and increase market share Nestle use following tools as a online
marketing:

 Website
 E-mails
 Facebook
 Twitter
 Youtube

Sponsorship

Animation

In 1993, plans were made to update and modernise the overall tone of Walt Disney's EPCOT
Center, including a major refurbishment of The Land pavilion. Kraft Foods withdrew its
sponsorship on 26 September 1993, with Nestlé taking its place. Co-financed by Nestlé and the
Walt Disney World Resort, a gradual refurbishment of the pavilion began on 27 September
1993.[74] In 2003, Nestlé renewed its sponsorship of The Land; however, it was under
agreement that Nestlé would oversee its own refurbishment to both the interior and exterior of
the pavilion. Between 2004 and 2005, the pavilion underwent its second major refurbishment.
Nestlé's withdrawal from the Land dates back from 2009.

Music festivals
On 5 August 2010, Nestlé and the Beijing Music Festival signed an agreement to extend by
three years Nestlé's sponsorship of this international music festival. Nestlé has been an
extended sponsor of the Beijing Music Festival for 11 years since 2000. The new agreement will
continue the partnership through 2013.

Nestlé has partnered the prestigious Salzburg Festival in Austria for 20 years. In 2011, Nestlé
renewed its sponsorship of the Salzburg Festival until 2015.

Together, they have created the "Nestlé and Salzburg Festival Young Conductors Award," an
initiative that aims to discover young conductors globally and to contribute to the development
of their careers