Improvising And Enhancing Brand Name


  • Unit No: 41
  • Level: Undergraduate/College
  • Pages: 19 / Words 4654
  • Paper Type: Assignment
  • Course Code: F/508/0600
  • Downloads: 2257
Organization Selected : NESTLE


Brand management is a special process of maintaining, improvising and enhancing brand name so that individual or any company will get positive results. It is a planning and analysis of brand that is perceived in the target market. There is an essential thing that is use in maintain and develop a better relationship with the target customers (Bieger and Sonderegger, 2017). It is begun with the capability to know about the term “brand”. It includes creating, developing it and maintaining various promises. In this report, the creating and managing brand over time and brand portfolio with its hierarchy management will be discussed. Furthermore, it refers to the brand leverage and extension with strengths and weaknesses of brand leverage. Lastly, it covers various elements like brand value, awareness, its market share and purchasing intent.


1. Brand equity and various stages of building a successful brand.

Every company wants to increase its sales revenue through attracts more customers. This will only possible from the popularity of its brand in the target market area so that it can achieve desired objectives and aims.

Brand equity– The brand equity is refers as the value premium that an organisation can generates from sale of its products and services with a unique special name. The unique marketing term that use in get desired success is brand equity.

Various steps for build a brand – Every organisation's requirement is, its brand equity is increase more and more. To create a successful brand, the process is outshines play an essential role to make brand loyalty (Buil, Catalán and Martínez, 2016). In addition to this, in the process of build the perfect brand image, the marketing department play an essential role. In this context, there is a special process for building a brand that should be followed by every firm or organisation:

  • Understand the target audience– It is the first step to build a unique brand that should fix a place in minds of target customers. The marketing department must have a target market for communication. It will help to identify maximum target audience for selling company's products and services as well as create a brand. Every marketer must know about it and tailor organisation's mission to meet their needs in the right way.
  • Identify brand mission – In the process of building best brand, it is second step that is identifying the brand mission. In this context, each marketing department should define the values that is needed to incorporate with the target customers (Burmann and, 2017). There is the need of articulating the organisational mission across several channels so that this will be able to set a path for communication.
  • Research competition– The third element is research competition and it should analyse the brand competition and also find out more methods for offering to organisation's target clients. To build a right brand, it should be focus on revolve around to make the products and services much better.
  • Build value propositions– Marketing department always give their focus on the brand value and its uniqueness. They should know about the propositions to set their business apart the market competition (Dinnie, 2015). In present days, consumers are intersects with several brands so it is need to communicate them to stand in the target market.
  • Determine brand guidelines– The brand guide lines refers as setting the special rules for the business activities that interact with the target customers. It is utilised in maintaining consistency across various market segments and it also makes the organisation more recognisable.
  • Build a brand – This is the final step in this process. In this step, marketing department should create or make a definite marketing strategy to build a brand of that particular organisation.

2. Strategies for strengthen the brand equity and brand extension.

Brand image plays an essential role in the expansion of business and increased turnover. There is a company NESTLE, the company utilizes various strategies and techniques for creating and maintaining its brand name (Du Preez and Bendixen, 2015). There are some points come for making brand strategy, are discussed as below:

Successful strategy for strengthening brand equity –The concept of brand equity is an essential element for NESTLE and it considers this element carefully. There are many strategies to strengthen the brand equity and use into develop strong brand image. It will make sure by the marketing department of this company that they occupy a positive image in consumer's mind and it will help to the growth of business activities. In this context, firstly, the marketing department of this company makes quality products, analyses competition, listen to its customers and consistent the brand image for strengthen the brand equity.

Brand extension– It is a special term that use for established a special brand name for new products and service category (Ertimur and Coskuner-Balli, 2015). A successful brand name help to the company in launch a new product. It creates adaptability and feedback benefits.

Reinforcing and revitalizing brands or overcoming a brand crisis –Brand reinforcement refers to the maintaining brand equity in right way. In addition to this, customers have all knowledge about the brand structure it helps for famous the brand and it is also useful towards the increased turnover. In the NESTLE, there is a brand need to revive to their fortune by returning to their roots. The brand revitalising is process of adoption of situational technique when the company's product reaches at the high level of maturity stage in product life cycle.

3. The importance of branding as a marketing tool.

Branding is an essential tool for marketing in this organisation. It refers to the consumer experience and perception with the brand. A company can raise its brand equity by using various techniques like recognition, awareness, preferences, trial and many more things.

The importance of branding as a marketing tool– Branding is a special marketing method in which the target customer perceives the brand and products of company (Heding, Knudtzen and Bjerre, 2015). Major importance of branding is as follows:

Brand set the competition – In the present days, there are highly competitive market for every brand and it is difficult to stand as a strong brand equity. Most of the people adhere to familiarity with brand and it will encourage for making and developing new products.

  • Branding set expectations– A consistent and strong brand will allow the clients to understand more about the business activities and the organisation set its expectations.
  • Promoting recognition– In every business if there are branding is effective than it promotes recognition. It is easy to recognise because brand consistency is done in the market.
  • Branding generates referrals – Branding is an essential tool, use in branding and it creates viral traffic and referrals. People use the brands by various ways like listening, watching the brand in TV or other medium and they promote themselves.
  • A strong brand adds value – A successful and big brand will add value of business. It is helpful for the growth of business.


1. NESTLE's brand portfolio strategy.

The brand portfolio strategy refers as the one of most complicated and difficult challenge that are faces in present days by the marketers of the NESTLE company. A brand portfolio should be considered in the decision of brand strategy (Jugenheimer, Sheehan and Kelley, 2015). Although different organisation introduce more and more brands to sustain with changing customer preferences and it is important also in order to achieve competitive advantages in the target market. In this context, the NESTLE company operates its business from last 150 years and have built a successful brand portfolio. It anticipating and understand the consumer needs and further adapt to succeed in the target market. There are many strategies that should follow by this organisation for brand portfolio, these are as follows :

  • Increasing efficiency – The management team of NESTLE is committed for set the margin expansion. They set the trading gross profit margin target of 16 % in 2016. This will increase by the company up to 18.5% in 2020. They are optimising their manufacturing footprints with increasing efficiency in whole operations.
  • Take consumer perceptive – Decisions taken by the management should not include the review of information of financial and board room opinions. It is achieves by the conduction of consumer and market research (Jugenheimer, Sheehan and Kelley, 2015). In this process qualitative and quantitative methods are use in building brand portfolio strategy.
  • Build own nutrition, wellness and health strategy – In this strategy, NESTLE built its own nutritions, health and wellness techniques. The founder of this company believes that good nutrition is a key of success of healthy life.

2. Illustration of hierarchy management of NESTLE within organizational portfolio.

NESTLE is a Swiss international and health-related consumer goods organization. Its headquarter is situated at Heavey, Switzerland. The organizational chart of a company is typically demonstrating a technique that is dealings in between the organization and its customers (Bieger and Sonderegger, 2017). In these dealings, it includes various directors, management team, managers, employees and many more. The organization chart of hierarchy management grows excessively big it can be divided into smaller graph for separate departments within the organization.

3. Different strategies used in managing the brand equity.This is a decentralized organization that is organised harmonizing to the hierarchy construction. The NESTLE is a decentralized organization that licenses to its subordinate separate to bask a proportionally huge level of in dependency (Buil, Catalán and Martínez, 2016). It is the responsibility for operating determinations is force down to local products. In the NESTLES's organisation construction, it is a Complex system comprises a big figure of entities that display a top level of degree of non linear interactivity. There are many departments in this company and all units and division, share Nestle's vision so that every employee of this organisation work around the world understands the direction to take and use common tools, common values and strategies.

Brand equity is demonstrates the image and goodwill of company. In the brand equity, there are two components, quantitative and qualitative. Both elements have been interest for academicians source (Burmann and, 2017). Brand equity is a special value of tangible and intangible value of brand driven by its perception. A brand with have low recognition levels, it does not necessarily lower brand equity. The rule of successful brand equity administration start with a perfect sense of understanding of the brand’s standings in the minds and hearts of the consumer. In this context, there are some strategies that is used for management of brand equity are as follows :

  • Awareness – In the specific organisational market, the brand may offer a technique for gaining competitive advantages and it addresses to the unmet requirements. It is a situation where unless marketing research shows strong sales projections (Dinnie, 2015). In the traditional means of promotion and advertising, the brand managers should concludes content marketing and social media.
  • Communication– It is a special strategy for achieving brand equity in the right manner. A company makes sure about its professional communication and accurate services with the help of proper market communication. It attracts to the financiers, cross functional groups, resolve legal issue and attract more customers.
  • Reputation – It is a common strategy that is followed by every organisation. In present days, whole economy is based on the internet and the reputation can built or finish in minutes on internet (Du Preez and Bendixen, 2015). There are many factors that can influence organisation's goodwill and image. So for this reason a company should create and maintain its reputation for making brand equity.
  • Value– Brand become a successful by managing relationship with the profitable customers. This relationship is maintains by serving better satisfaction. Brands with more highly perceived value by better margins, command premium pricing and wider distribution.
  • Collaboration – a strong brand equity relies on the teamwork strategies and productive collaboration. The online collaboration techniques make it possible to create brand equity for people across the world to come together effectively and quickly in real time to create marketing collateral, develop products, resolve technical questions, conduct financial activities and resolve legal problems.
  • Ethical and legal decision making– In every company, there is some ethical and legal decisions take by their management team in order to make better brand equity. This is also a useful technique (Ertimur and Coskuner-Balli, 2015). Clients and other stake holders may call for law makers to regulate and legislate the unethical behaviour so for this reason it is a fundamental aspect for brand equity.


1.Strength of brand.

In the NESTLE company, there are many brands and different products for attracting new customers. Some brands are cookie dough, Maggie noodles, baby food and milk products etc. In this context, there is a brand Maggie noodles. It is too much usable by its consumers and this is very much like by the people across the world (Heding, Knudtzen and Bjerre, 2015). It is iconic brand on a mission to champion the goodness of home cooking and familiar with more people. It is an instant noodles food make in some minutes and eaten in whole world. The major strengths of this brand Maggie is as under :

  • Maggie is a leader in noodles market with high brand loyalty.
  • It is a good product and liked by many people.
  • It provides several varieties and flavours.
  • It is offers multi purpose products for the cooking method to engaged women’s such as Maggie oyster sauce, Maggie cubes, Maggie liquid for chicken shares, chilli sauce all such products are popular in each market (Jugenheimer, Sheehan and Kelley, 2015).
  • Its advertising technique is excellent that makes it towards mind of many persons.
  • It is easy to cook in some minutes and ready to eat noodles.
  • Maggie is extremely popular in young age, students and among those people who lives outside home.
  • It has vast distribution channel that help in making product availability in different market segments.
  • This type of noodles have its own range, which is easily available in every area.
  • Maggie has created itself a pioneer in change the eating habits of several people.
  • It has strong parent brand of NESTLE advertisement as a strong product of this company.

2. Weaknesses that may require to pay attention.

Maggie is the recognizable and strong brand of NESTLE and its popularity is its biggest strength that are more effective and unique. It is a well known bran in whole world and available easily in everywhere (Klopper, Lubbe and Prins, 2016). Furthermore, the actual growing popularity of this brand has been related to many products and it leads to the rise of the brand Maggie.From the research house of NESTLE, it is one of the most known brands and the clear leader in the pre packed food market segment. It survives worldwide through its tag line “2 minutes noodles” is true still. It is possible because many person love its taste and eat it.

Its presence in the rural market is lower than urban market segments. Although it is a popular product of NESTLE company but there are some weaknesses in this brand that should be acknowledged by the management of this company. Some of these weaknesses are as under :

  • In its flavor, there are many typed and artificial flavors that are not good for children and aged people (Lane and Andersen, 2015).
  • Many health issues are generated by media that cause a decrease its popularity.
  • It has its own variety of noodles, have local taste, for outsiders and foreigners.
  • The general taste of Maggie is not easily available.
  • There are many controversies related to its products that Maggie in being unsafe to eat and it caused too much damage to its brand image in its target market (Pappu and Christodoulides, 2017).
  • There is an intense competition that refers to limited market share and effect to growth.
  • Its products are dependent on each other.

3.Partnership and collaborative agreements.

In the NESTLE company, there are many brands in which Maggie is also the best brand for revenue generation and increase the growth. Maggie has many collaborations agreements with several companies as well as brands. NESTLE company has been collaborated with the Paytm Mall and Google to make new promotional schemes for the launch of several new variants of Maggie noodles (Rauschnabel and, 2016). It is inspired by the local cookery and the Maggie Masalas will provide to distinctive level local taste with spices and signature herbs. The main aim to built this collaboration is to create excitement and anticipation all around the new products and flavours. This new idea to association with Google, allows to users to key in 'MERI MAGGI' in the search bar, and be given with eight different options.

NESTLE also signed a partnership agreement and taking 60% share in the Yinlu Foods Group a Chinese food and beverages company. The chairman of this Chinese company will continue to lead this organisation with the new partnership. This agreement based on an existing and successful partnership contract between two companies (Renton and, 2015). This is run thoroughly and make growth. So for this reason it is a better agreement and profitable for this company in its target market. This partnership agreement shows a very essential landmark in Yinlu’s long-standing ambition to be a relevant and popular brand for clients. Yinlu’s products are refers to Chinese public health habits and tastes, and full complement to NESTLE's Maggie existing product portfolio in China, that concludes cookery products, confectionery, bottled water, coffee, milk powder and other products for the food and service industry.

The NESTLE also make collaboration force with the Amazon to expand its reach of services and products and starting a new range of Maggie noodles. The members of Amazon prime will receive 33% trade discount on the new range of Maggie and they are also a part of the agreement when the customers pay through Amazon pay bill and get 25 % cash back offer (Renton and, 2017). Maggie Nutritious are in line with our merely Great initiative to render tastier and better choices to their clients. Customers also have the chance to take part in an Amazon app only Maggie quiz contest where they can triumph many cash prizes.


1. Evaluation of several techniques used for managing and measuring.

  • Brand Value – In recent decades, the branding has been emerged with the corporate technique used by the marketers for expansion their business activities. All businesses and organisations have emerged their individuality through its branding (Rosenbaum-Elliott, Percy and Pervan, 2015). So for this reason, branding is also a special marketing strategy. Brand value is the financial worth of the company. In an organisation, for determining the brand value first identify the requirement of company's market worth in the market. There are many techniques use in the managing and measuring in the NESTLE. Its marketers have realized that the increasing quality of brand value have begun to the nurture to cultivate value and brand goodwill through various brand spoke persons. Most of the people use luxury brands in their living standards. These brands are locally and globally well known by the sports and actors as brand ambassadors. Existent the brand power also use for the continuous modification and products qualities. All the decisions and techniques, as well as routine organisation's decisions at all departments are directed towards promotion of and transformation of the NESTLE brand (Solomon and, 2014). The entire business believes in the brand and all business system are driven to create the brand value and deliver superior clients experience through the brand.
  • Brand Awareness – It refers as the profitability of the organisation because the customers are more familiar with the availability and life of the product. It is a level on which the customers are precisely associated with the brand and the specific product. It is measured as the real ratio of small market that has detailed knowledge of brand (Zhang, 2015). It expressed as fix percentage of its target market segment and its primary objective of promotion in the previous month of product and service introduction. Brand awareness is use for promote the organisational products and it can build the business goodwill and reputation. In the market, if there are higher awareness of a special brand than it leads to the better sales revenue and expand the business activities (Klopper, Lubbe and Prins, 2016). Awareness creates a favourable impression and it will encourage the customers to purchase more products of that particular organisation. The major advantages of the awareness of brand is the retailer has been capable to connect more new customers and it will increase the organisational profit.
  • Market Share – The market share refers as, percentage of purchase of different products and services by the customers out of the total purchases. Market share can be defines as volume or value. Value states to the market share, that it is based on the total share of an organisation out of target market segment sales and volumes refer to the real numbers of units that a business entity sells out of total products sold in the market (Lane and Andersen, 2015). In this context, the researcher and investors monitor the process of increase and decrease the market share carefully and use such data with the competitiveness. To find out market share of a particular company, there is a formula :

Market share= organisational profit in particular time / relevant market's sales revenue in that particular time.

The market share is measures the relevant customer's preferences for a particular service or products. A company's higher market share usually describes to the huge sales revenue, lesser effort to sell more and a strong obstacle to entry for other competitors. Increases market share can allows to the organisation to reach big scale with its productions and operations to improve profitability.

  • Consumer Attitudes – This is refers as better feeling by use of various products and services. It is a special feeling about, believes about the object or products. In this context, there are three elements affective, cognitive and concerning information (Pappu and Christodoulides, 2017). In other side, the attitudes consists of the feelings, beliefs, intentions and behaviours for a particular thing, usually, this thing denotes to the services and products. It is more defines as the behaviour of customer's in order to choosing their favourite product of a company or brand. In this context, Consumers are single person with having likes and dislikes in their attitude. When the power of people in a separate group, feel one way or another about a service, entity, place, product, person, or thing, it can say that a generalized consumer attitude that may affect the marketing of that group, product or entity in positive or negative methods.
  • Purchasing Intent – It is a simple measurement to understand likelihood of a particular person's purchasing capabilities. This is an incredibly powerful statistic, as it allows to the marketers to target those people who are already in the market for selling their products and services (Rauschnabel and, 2016). It is a complicated statistic to formulate the working ability with minimum data. Using various research methodologies the marketers finds more suitable data about purchase intent. There is one of the most powerful methods of determining purchasing intent is digital marketing. There is a good example for this topic that is when customers adds the word ‘best’ as the main keyword in their choice. This is an important time to display an organisational advertisement because it will make brand recognition with a soon-to-be buyer.

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Every company wants that its brand name become famous and well known in order to achieve competitive advantages in the target market. The marketers make and follow different type of strategies and techniques to make more sales revenue and maintaining the goodwill of that particular organization. In this report, branding, brand equity and various strategies described in the context of NESTLE company. Further, the organisational structure and hierarchy management of this organisation discussed. Lastly, it covered various terms that are brand awareness, value, market share, consumer attitudes and purchasi

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