By Chishma Marwaha
Brand marketers, now- a- days are increasingly looking for innovative ways to achieve and retain competitive advantage though logos, catchy slogans etc. Attracting new customers and getting higher sales volume requires the addition of new customers as well as the increase in the real purchase rate.
Branding is not just about a product, but it is also about the manufacturer. Branding is basically about selling a product with its brand name. A brand name can be promoted through the goodwill of the manufacturer. Brand is generally associated with product and services. Brand identifies the company behind the specific product- that’s not just a detergent, that’s “Surf Excel detergent”.
Once a manufacturer has made the brand name of its product, it induces customer’s loyalty. Brands also help to set premium prices for the products. The company can meet its multiple targets through branding. The other way round, branding also helps consumers identify company ownership. Brands, once has set up its reputation, strongly becomes consumer’s perception. They become influenced and reliable. Brands also make customer decision making easier.
NESTLE- STRONG BRANDING POWER!
Nestle is the biggest consumer packaged foods producer in the world. Overall, Nestle owns over 2,000 brands. Brands are categorized by their targeted markets. It targets all types of consumers; from rich to poor, infants to older people, men and women.
It has various product lines which include;
- Chocolates & confectionery
- Milk & nutritional products
- Infant products etc.
The main attraction of Nestlé’s corporate identity is its logo. The design of the logo is very innovative. The nest in the logo is a graphic translation of the founder’s, Henri Nestle, name. Henri Nestlé creates a visual link between his name and his company’s products though this logo. Along with that, he also uses such a catchy slogan “Good food, Good life” which represents ‘the promise they commit to everyday, everywhere- to enhance lives, throughout life, with good food and beverages’. It focuses on sustainable growth.
The company uses different tactics in order to promote its brand. Many big celebrities have been working with Nestlé, like Amitabh Bachchan, Madhuri Dixit & Rani Mukherjee, in order to promote their products. It also indulge in sponsoring various events like sports festivals etc. It has indulged in sponsorship with Salzburg Festival in Austria for 20 years. Nestlé supports the Australian Institute of Sport (AIS) on a number of nutrition and fitness fronts etc.
“Branding on the mug”
Nestlé, the largest consumer product brand, uses the ‘House of Brands’ strategy. That means, in this company, the product itself is the primary brand rather than the company. Take for example the following products: Nespresso and Uncle Toby’s. Most consumers would have trouble identifying these with company that actually own them i.e. Nestlé .
It incurs more advertising expense since it has to promote each of its brand individually.
Recently, Nestlé has launched the brand extension for Kitkat, in order to extend its confectionary offering, called KitKat Chunky Caramel Duo. Various brand extensions undertaken by Nestle are in order to provide;
- Variety to its customers
- To reach different customer segments
- For capacity utilization
- To take advantage of the brand image etc.
Apart from Kitkat, it has brand extensions in many of its products.
“Brand extension of coffee”
Maggi, two-minute noodles, which sell for a dozen rupees per single-serving packet, are hugely popular in India. The snack is frequently served to children and eaten at roadside shacks and “Maggi points” across the country.
Currently, a hit on Nestlé was being observed since Maggi, the flagship product of Nestlé, was recently bombed across various countries because of high lead content in it. So nestle had to dump tons of amount of magi noodles. Due to this, there was negativity against other individual products of the Nestlé as well up to a certain extent.
The loss was so huge that it could take three years for Nestlé to completely recover its India revenues following the impact of the Maggi. Nestlé India is being held answerable to millions of its loyal customers, food authorities, distributors, workers, stakeholders and others associated with the product. The company suffered the loss of money, resources, manpower and most importantly the trust of its customers which it has built since 100 years.
Maggi made its comeback!
Nestlé India has already started taking steps in what could be the beginning of their retention strategy. There was an advertisement given by Nestlé in the newspaper which specified that the brand puts their customers’ trust on priority. In the advertisement, the company approached its millions of customers who may still have Maggi noodles packets at their places and would wish to give them up.
Now, Nestlé’s Maggi has made a comeback in India, but this time it adopted a different strategy. The company will not sign up with the brand ambassadors Amitabh Bachchan and Madhuri Dixit to reconnect with the masses. Instead, they are using traditional media to reassure their consumers regarding the safety of the product. They are connecting digitally with their target group. Apart from this there are a lot of events for brand activation being undertaken.
Ausport.gov.au. (2016). Sponsorship : About : Australian Sports Commission. [online] Available at: http://www.ausport.gov.au/about/sponsorships
Brandmatters.com.au. (2016). Branded House or a House of Brands. [online] Available at: http://www.brandmatters.com.au/blog/branded-house-or-a-house-of-brands
Food.ndtv.com. (2016). [online] Available at: http://food.ndtv.com/food-drinks/nestle-india-takes-baby-steps-towards-damage-control-what-does-it-look-like-772929
Fortune.com. (2016). Nestlé’s Half-Billion-Dollar Noodle Debacle in India. [online] Available at: http://fortune.com/nestle-maggi-noodle-crisis/
Indianexpress.com. (2016). Maggi | The Indian Express. [online] Available at: http://indianexpress.com/tag/maggi/
Indianexpress.com. (2016). Amitabh Bachchan | The Indian Express. [online] Available at: http://indianexpress.com/tag/amitabh-bachchan/
Products and brands. (2000). 1st ed. [ebook] Available at: https://bib.kuleuven.be/files/ebib/jaarverslagen/Nestle_2000%282%29.pdf
Salzburgerfestspiele.at. (2016). Salzburg Festival / Global Sponsors. [online] Available at: http://www.salzburgerfestspiele.at/en/main-sponsors
South China Morning Post. (2016). Nestle issues India-wide recall of Maggie noodles amid safety scare. [online] Available at: http://www.scmp.com/business/companies/article/1817113/nestle-issues-india-wide-recall-maggie-noodles-amid-safety-scare
The Economic Times. (2016). Maggi ban impact: Nestle India may take 3 years to recover – The Economic Times. [online] Available at: http://economictimes.indiatimes.com/industry/cons-products/food/maggi-ban-impact-nestle-india-may-take-3-years-to-recover/articleshow/51114562.cms
The world of Nestlé. (2006). 1st ed. [ebook] Available at: http://www.nestle.it/asset-library/documents/pdf_nostri_report/12_theworldofnestle.pdf
World Finance. (2016). Nestle Brand Strategy. [online] Available at: http://finance.mapsofworld.com/brand/value/nestle.html