Nestlé brand strategy / positioning case study

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Nestlé Brand Strategy Analysis
Nestlé
ABOUT

Category:
FMCG Foodbaby food, cereals, dairy, confectionery and chocolate, desserts & ice creams; FMCG Non-alcoholic beveragessoft drinks, coffee, water

Owner of the brand:
Nestlé S.A.

Key competitors:
Kellogg’s, Danone, FerreroCadbury, Hershey’s, Snickers, Milka, Jacobs, Tchibo, Lipton, Aquafina, Dasani, Evian

Brand essence

Enhancing quality of life and contributing to a healthier future.

Brand values

Care, health, family, taste.

Brand character

Caring, trustworthy, familiar, friendly, for everybody, positive.

Dominating archetype
EVIDENCE
Comments
1

In the last decade, Nestlé has come a long way from a company associated mostly with chocolate products to an omni-product umbrella brand with common underlying values. The overall Nestlé brand strategy centres around nutrition, health and wellness and is executed not only in the brand’s communication activities based on the “Good Food, Good Life” platform (e.g. “Start Healthy Stay Healthy”[1], “Nestlé for Healthier Kids[2]) but, above all, in the improved formulas of the Nestlé products. Reducing the amount of salt, sugar and saturated fats, eliminating trans fats and artificial colours and flavours, as well as using only cage-free eggs by 2020 are the company’s primary objectives.

2

As important as it is to Nestlé to be a responsible food and drink manufacturer, taste still plays a significant role in the Nestlé brand strategy and the company believes it can also contribute to people’s well-being. Taste is the justifying factor for a big part of the company’s product portfolio, mainly not so healthy desserts, chocolates and candies. Nestlé explains: “In a balanced diet, these enjoyable and sometimes indulgent products definitely have a role to play. We should all make sure we have plenty of healthy exercise, but then a modest amount of “mainly-for-pleasure” foods can also be part of Good Food, Good Life.”[3]

3

Nestlé’s overarching brand strategy is strongly related to the Caregiver archetype as its main focus is on building trust by being responsible, helping people live healthier lifestyles and caring about their well-being. Family values are also quite apparent in the brand’s communication with a powerful, recurring theme of a mum giving a Nestlé product to her kids, further strengthening the brand’s trustworthiness.

4

Nestlé is both a corporate and a consumer brand. As a consumer brand it is present in the form of sub-brands (e.g. Nestlé Pure Life water or Nestlé ice cream) and endorsed brands – Chocapic, Areo or famous linked name brands such as Nescafé, Nesquick or Nestea. Under the corporate Nestlé brand there are also multiple consumer brands, which don’t use Nestlé branding (e.g. Purina pet care products or Mövenpick ice cream). In this respect, Nestlé brand architecture resembles the L’Oréal framework.

5

Nestlé sub-brands and endorsed brands derive big part of their identities from the Nestlé mother brand. However, their brand strategies have also distinct elements and are based on own communication platforms. For example, Nescafé is about new connections, friendships, relationships or ideas, which start with coffee (“It all starts with a Nescafé”[4]), while Nestlé Pure Life water is more about family wellness (“Drink Better.Live Better.”[5]).

Tagline
Most important campaigns

1. “Creating Shared Value 2020 Report : A Decade of Progress” (2021)

2. “Nestlé For Healthier Kids – How Big Is That?” (2018)

3. “Pure Life Begins Now” (2017)

4. “Superbabies: This Is Our Breastfeeding Song!” (2016)

5. “Nestlé Milky Bar” (2014, UK)

Official brand statement:

Enhancing quality of life and contributing to a healthier future[6]

Interesting facts:

Nestlé was formed in 1905, when two Swiss companies merged: Anglo-Swiss Condensed Milk Company and Farine Lactée Henri Nestlé, a milk-based baby food company.[7]

Nestlé is the world’s largest food company by revenue[8] and owns 23% of L’Oréal[9].

Must-reads

1. Food Business News on Nestlé’s business strategy
J. Sosland, “Pulling The Right Levers At Nestle”, Aug 2018,
https://www.foodbusinessnews.net/articles/12353-pulling-the-right-levers-at-nestle

2. Interview with Steve Presley, CEO of Nestlé USA
C. Dewey, “Grain Bowls, Cold Brew And ‘Hustle’: Nestlé Has A Plan To Bring Customers Back To Big Food”, The Washington Post, Aug 2018,
https://www.washingtonpost.com/business/2018/08/02/grain-bowls-cold-brew-hustle-nestl-has-plan-bring-customers-back-big-food/?noredirect=on&utm_term=.4aad142b135e

3. Adweek on Nestlé’s corporate culture
C. Heine, “The 3 Ingredients That Helped Nestlé Infuse Innovation Into Its Corporate Culture”, Adweek, Jul 2017,
https://www.adweek.com/digital/the-ingredients-that-helped-nestle-infuse-innovation-into-its-corporate-culture/

Sources:
SIMILAR BRANDS

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