Nestle's Brand Management Strategies

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Case Details:

Case Code : MKTG039
Case Length : 10 Pages
Period : 1990 - 2002
Pub Date : 2002
Teaching Note : Available
Organization : Nestle SA (Nestle)
Industry : Chocolates and Confectionery
Countries : Switzerland

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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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.

Even though Kit Kat was a leading brand in UK, it was ignored outside the country. In the early 1980s, Rowntree established Rowntree Continental Europe, which handled business responsibilities outside the UK in Europe. However, this did not benefit Kit Kat, which was launched in Europe by Rowntree Continental Europe as a multi-local brand...

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