Nestle's Brand Management Strategies
| Case Code: MKTG039 Case Length: 10 Pages Period: 1990 - 2002 Pub Date: 2002 Teaching Note: Available |
Price: Rs.500 Organization : Nestle SA (Nestle) Industry :Chocolates and Confectionery Countries : Switzerland Themes: Brand Management |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Nestle's Branding Strategy
The Nestle brand itself had played a key role in the company's globalization efforts. In 1996, about 40% of the total revenues were generated from products covered by the Nestle corporate brand. Nestle's logo was an important part of the company's corporate identity. The 'nest' was a graphic translation of Henri Nestle's name, which meant "little nest."...
Internationalizing the "Kit Kat" Brand
When Nestle acquired Rowntree's brands in 1988, the major challenge before the company was managing them. Rowntree had a "one product, one brand" policy. The brands Kit Kat, After Eights, Smarties and Rolo were marketed with no mention of Rowntree. Rowntree's brands were not strongly managed European brands. Before the 1980s, 'country managers' outside the UK in several European countries managed Rowntree's business. They were free to run their units provided business objectives were met. The orientation at Rowntree was short-term just to meet annual business objectives and country managers added nothing to the overall organization...
Divesting Non-Strategic Brands
The success of the Kit Kat brand inspired Nestle to think and act 'glocally' i.e. establishing global as well as local brand identity. Nestle had taken a similar approach to several other acquired sub-brands.
Moreover, Nestle introduced the Kit Kat brand in several other countries across the globe. Nestle's brand management strategy included the divestment of non-strategic brands. In February 1999, Nestle negotiated the sale of its Findus brand of frozen food to EQT Scandinavia BV...
Exhibits
Exhibit I: Nestle's Main Brands
Exhibit II: Nestle's Major Mergers and Acquisitions
Exhibit III: Nestle's Financial Information
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