Abstract
The word brand is actually derived from an old Norse word brandr which meant “to burn”. The main purpose behind this was to help owners identify their animals from those of the competitors by marking them specifically. The basic idea behind brand still remains the same i.e. to help differentiate a product or service from that of the competition by creating a set of unique associations with the brand. For example- the Indian brand Tata is associated with reliability whereas the brand 3M is associated with innovations and new product developments. Every brand is identified by its unique design, logo or name. These are also known as brand elements. There are various brand name strategies. Some companies prefer to use their names for essentially all products, for example Samsung whereas the FMCG giant Proctor and Gamble has unique brand names for separate products like Tide or Pampers. (Keller, 2008). Designing a brand is a highly creative and a scientific process. A brand signifies a standard quality, and the purchase of a brand can also give immense psychological satisfaction to the customer. (Gupta, 2005). Brands become effective tools of achieving market differentiation. (Levitt,1980).
Keywords: Brand.
Brand Architecture or Brand strategy basically explores the fundamental principle of whether a firm should employ an umbrella branding strategy using a single brand name across all products or if it should stick to a collection of individual brands, all with different brand names. Each of these techniques has its own set of unique advantages and some disadvantages as well. The brand Maggi noodles was under severe scrutiny in India as it was supposed to have higher MSG contents than permitted (Mono Sodium Glutamate contents). The food and drug authorities hence banned the sale of this product in India pending further clearances. Although, Maggi did clear the tests and was re – launched, the brand Maggi had taken a beating. Finally, the actual strategy that will be implemented would depend upon the element of brand awareness amongst the general public and also the image of the brand. Nestle is a corporate brand where the logo of the brand is definitely seen endorsing all its products.
The brand portfolio of brand Nestle is also optimizing its brand equity in other words there are hardly any brands in the Nestle umbrella that corrode the brand name or compromise it. For example in India, the brand Nestle was associated with coffee primarily through its brand Nescafe. The extensions that followed were in different products like chocolates, although not very successful till the brand Kit Kat evolved, condensed milk brand Milkmaid, Maggi Noodles which were again is very successful with more than half the market share in the Indian markets.
Brands and products are closely interrelated. In order to understand the Brand Architecture for brand Nestle we also need to segregate the various products in to separate categories or also known as product lines. A product line will have closely related products as they function in the same way, and are sold to similar types of customers, have same prices and cater to similar customers. The second parameter that we need to understand is Brand Mix which is the total set of brand lines that a company makes available to the buyers.
Nestlé’s Brand Architecture planning of distinguishing the brands in to three categories i.e. international, local and regional is sound as there are certain products that have a strong regional or local presence whereas others like Nescafe have a more global presence. The second major attempt at Brand Architecture is dividing the offerings in to six major corporate brands- – Nestlé, Nescafé, Nestea, Maggi, Buitoni and Purina.
Brand Architecture depends on a strong customer focus and sound brand positioning. Together they add greater brand equity to the brand- Nestle. A confused brand portfolio can be detrimental to brand Nestle as it can either turn cannibalistic and affect other brands within the brand umbrella or facilitate competition.
Assesses the long term potential of any sub brand of Nestle
The brand Nescafe which is a flagship brand for Nestle was first launched in 1938. It has come a long way since then understanding the coffee drinking habits of its customers across the globe. It is a successful brand as it has penetrated several cultures and still maintained its unique identity. The second major feature of this brand is that it continuously renovates and maintains its relevance. Although an ‘old’ brand its associations are always with youth, connectivity and friendship.
As the brand associations with Nescafe are very pronounced and strong, it is not simply a coffee but an experience that helps you start your day. These associations’ sums up its long term brand potential to such an extent that having coffee indirectly meant having Nescafe. This is one of the few cases where the sub brand is almost as popular as the main parent brand, if not more.
These kind of a long term brand associations have been achieved by projecting ‘freshness’ and ‘the best way to start your day’ concepts across all communication channels and at the same time across all cultures. Hence, the appeal for the brand Nescafe is quite global. It will mostly feature as a top ten brand across various markets through out the world. The brand does not remain lethargic but has a good youth connect that in turn keeps it young although it is almost fifty year old. Hence, the appeal across all generations is also quite promising.
In its brand Nescafe, Nestle has a suitable platform to launch similar products and experiences. This has to be done very carefully without compromising the very hard earned Brand Equity. Another major point is that the brand Nescafe creates a successful differentiation platform that helps it to stand separate from competition( Kotler, Keller, Jha, Koshy, 2012).It successfully creates differences between similar products that ultimately give it a greater marketing edge. Branding helps create a mental association and Nescafe does that uniquely well in it’s positioning of starting a new day afresh. Nescafe has been more than successful in creating this unique identity and differentiation which helps it to stand out.
Traditional good brands are identified on the basis of what they stand for today and what they will be standing for in the future. Nescafe bridges that gap continuing to be relevant today and also reengineering itself in such a way that it remains relevant tomorrow with its main emphasis on defined customer focus. Hence, in terms of potential Nescafe is definitely an asset that the company can use for strategic leverages and further consolidation of its position.
References
Keller K.L. (2008). Strategic Brand Management. Building, Managing and Measuring Brand Equity. Pearson Education. New Delhi.
Gupta S.L.(2005).Brand Management. Text and Cases (An Indian Perspective).Himalaya Publishing House. Mumbai.
Levitt T. (1980). “Marketing Success through differentiation.”Harvard Business Review. January-February,83-91.
Kotler P., Keller K.L., Jha M, Koshy A. ( 2012). Marketing Management: A South Asian Perspective. Pearson. New Delhi.
