Abstract
Creating and positioning a brand has become important as companies try to place their products within their targeted market segments. After some time of being in the market, a product could begin to decrease in sales, the segment in which it had located itself could start being unattractive or prices could be too high to prevent the product from performing competitively. When either of these happens, brand repositioning becomes the option to take. A positioning strategy will clarify the terms of the target market and will give the company a competitive advantage. The brand promises something that will be a plus to customers and then delivers on it thereby attracting more of the potential customers and increasing profits in the process. This paper deals with brand repositioning strategies for Nesquik. It explores the use of social media as a marketing tool to create brand awareness, enhance communication with the consumer, which then translates to increase in sales.
Brand repositioning
Ranked number 72 on the Fortune Global 500 in 2014, Nestle is also the largest company dealing with food products globally based on their revenues. A transnational food and beverage company has its headquarters in Vevey, Switzerland. The company produces cereals, dairy products, baby foods and snacks among many other products with 29 of their brands selling more than $ 1 billion in a year. Some of these brands include Nesquik, Smarties, Kit Kat, Nescafe, Felix, and Munchies. It is one of the shareholders in other reputable companies such as L’Oreal. Nestle has more than 447 factories, operating in more than 190 countries and providing employment for more than 330 000 people. Among the products from Nestle is its quick chocolate powder, Nesquik; this prime product is dealt with throughout the rest of this paper. The product was first introduced into the market in 1948. It has been sold particularly for its ability to help mothers to prepare chocolate milk fast.
Early in the 1950s, Nestle came up with a famous jingle worldwide that catapulted the product to the top for ten years that were to follow. A ventriloquist performed the jingle, which was, a sagacious move given the fact that the product is for children. Around the same time, a new flavor was developed, the strawberry flavor of Nesquik. As time went by, strategies for marketing had to be changed and in the 1990s, an animated version of a bunny appeared in the first commercial. Before ‘Quicky’, the Nesquik bunny, there was no other mascot in Spain. This is where he was first introduced. Around the same time, figures such as Donald Duck, Daffy Duck, Bugs Bunny and other animated characters were coming to the forefront in Disney world, which again meant that using a bunny was a well-calculated move. In the 1980s, the syrups were made in ready to drink bottles yet posing another new dynamic that was fresh in the market. All through this period, though, the products were known as Quik. They came to be known as Nesquik in the 1990s.
From 2000, the tactic was again changed to reach to people who were now becoming more aware regarding health. More and more people were interested in their health status and that of their children taking into account that which they ingested. Nestle put at the forefront of their advertisements the benefits that came with taking their product. They highlighted the nutritional value therein, the presence of seven essential vitamins and minerals. They linked these benefits with physical results that are desirable for every parent for their children, associating it with a boost that would help children to take on the day ahead of them. Since 2010, the product is now being sold for the flavors that it has and the fact that it has a reduced amount of sugar, by 45%. The product contains 23 grams of sugar when mixed with 1 cup of low-fat milk. The product has been in the market for more than 60 years, which means that their strategies have been working. It also means that the changes that have been so much part of the brand keep happening if it is to continue being on the shelves.
When a company is stuck in a rut or when sales are declining or even when for other reasons change is necessary, a company can take on different strategies to reposition itself in the marketplace. Brand repositioning refers to the company changing the status of a brand in the marketplace. This may include changing the market mix, for example, the price, promotion or even place. Usually, it has to be done with consideration to the needs and wants of the consumer. The company must be able to tell what position of the market segment they want to take based on this. It must be able to plant the unique benefits that its product has in the minds of the consumer (Kotler & Armstrong, 2001). An example of this was the strategy applied by Nestle in the 2000s that put at the forefront the nutritional benefits of the product that the consumer would be interested in. Kotler and Armstrong (2001) further explained that the company ought to be able to do so without overloading the user with information. They need to categorize their product.
Another important thing that needs to be understood during repositioning is the buying behaviors of the customer. This would help to add value to the consumer and to create a competitive advantage. If a company promises something, they must be able to deliver on it. For example, if during a promotion the consumers are promised to get something free on purchase, this must be honored to the time promised otherwise it backfires on the company. If marketing efforts raise high expectations, then those expectations must be met. Uggla (2002) argues that a company could start of positioning in an area where they are strongest. This is because, in marketing, perception is a reality. It has often been said that it is rarely about the product; rather, the knowledge of customers plays a crucial role. Additionally, the perception of the company or brand is also crucial to its performance in the market. Doyle (2002) defines a market position as a choice of market segments that are targeted, which will determine how they compete.
According to Jobber (2004), the success of brand, repositioning is hinged on the product and service having a memorable connotation to the buyer. He states some factors that are significant to the success of positioning efforts that will inform the repositioning of Nesquik in this paper. Among these factors is clarity. He explains that the target market must be transparent to the company before it begins its efforts. Another key aspect that he cites is consistency whereby the marketing efforts must be able to break through the noise and offer a consistent message to its clients. The product must also contain a differential advantage that is credible in the mind of the consumer so that they will be impressed by it. It must also have a competitive edge. In other words, it should be able to offer something that is valuable to the consumer that the competitors are unable to offer.
Uggla (2006) in agreement with Jobber states that the success of brand repositioning will depend on the ability of the company to differentiate its product from the rest and then to communicate in a unique way to the targeted segment. He maintains that segmenting, targeting and positioning work together. As a result, he is of the opinion that these three crucial aspects must not be separated if success is to be achieved. He describes this relationship as shown in figure 1. Kapferer (1997) agrees with these opinions and further states questions that need to be answered when creating a positioning strategy. They include, why, for whom, when and against whom. There is a lot that has been written concerning the subject and yet not all can be utilized in every situation. A strategy must be chosen that will determine the primary focus of the campaign. The plan can focus on the consumer, the general public or even competing businesses.
Fig 1: Relationship between segmenting, positioning and branding (Uggla, 2006)
Brand repositioning strategy for Nesquik
The position of a brand in the market is crucial to its success. Customer behavior and the macro and micro-factors in the external environment of a business are primary factors in business strategic and policy decisions. In positioning a brand, the market segmentation, targeting are important factors. The business needs to understand its core competencies and fuse these with the external environment to make a strategic positioning in the market.
Some techniques will be involved in repositioning for this product. First, the consumer will be engaged. People usually want to be involved with a brand. Kapferer (1997) argued that a brand is a relationship. This is because names are involved in transactions between people. People usually want to feel that they belong. To make this happen, products have to be tailored to meet specific needs, preferences and tastes of the consumer market. This is done by figuring out what people want. In today’s society, consumer behavior has been primarily influenced by their health. They are willing to change their eating habits if it means that they will have better results. There is also a rise in the number of people who are not able to work out as they live in cities or are unwilling. These are also among the targeted group for this product. Technological advancement moved more people online than were 20 years ago. In their spare time, people are resorting to reading blog posts, visiting websites or engaging each other in social media. Whenever in need of recommendations for something, the first place people will run to will be online.
This means that the online presence of a brand is of most importance. Nesquik already possesses qualities that would draw it to the attention of the target consumers. In it one gets 8 grams of protein when mixed with low-fat milk, it has 45 percent less sugar than the leading chocolate syrup brands and 7 essential minerals and vitamins. The fact that it has less sugar already gives it a competitive advantage over the other brands given that people are drawn to healthier options. It is even an option for people with diabetes. The remaining thing would be for the brand to be positioned in a way that it will be visible and memorable to the consumers. It is good that the brand has a Face book page for instance. The page Nesquik has over 3 million likes, which is already fertile ground for establishing the product. However, the last time the page was updated was on 21st of July 2014.
As stated earlier, a brand is about relationships. If Face book were properly utilized, it would create brand awareness. This translates to sales eventually. The page can be used for example to share articles concerning the benefits of the vitamins available in the syrup to the body of the child, the prices of products in different markets and possible combinations to eat with the product. Face book also provides an opportunity to communicate with consumers’ real time and to take into account the feedback that they give when editing the marketing strategy. On Twitter, @NesquikUSA has over 73 thousand followers. Like Face book, well-crafted tweets would go a long way into informing the public about the product. These tweets can be accompanied by funny memes and images that appeal to the love for humor. Additionally, the company can conduct twitter chats aimed at enhancing brand awareness when there is for example a promotion. The last tweet made on Twitter was on 1 April.
Before 1 April, the last tweet had been on 8 March, and 16 October 2015. Whereas the brand already has many followers, it is not at the best it can be given that it operates in more than 190 countries. As observed by Jobber (2004), the strategy needs to be consistent a factor which the brand has been lacking on Twitter and other social media sites. If the company works at ensuring that the twitter followers are engaged, they feel valued enough to participate with the brand. This means that they can retweet to their followers and share material about the brand, which translates to sales. Additionally, the tweets and Face book updates have to be tailored in a way that they appeal to technology-savvy people who have no tolerance for long posts. Catchphrases can be used alongside them that will help the products to be memorable. On Instagram, the last image put up by Nesquikusa was put up on 17 December 2015. Again, like on twitter and face book, this is a disservice to the 1630 followers and a slow attempt to capture the broad potential therein. The story is the same on Pinterest and on the brands, YouTube channel. If there is no enough material to be put up, networking and collaborating with other brands, for instance, those that work with children and baby products can help to build brand awareness.
Since Nesquik is an already established brand, the trick will be to give it a fun technological side that will give it a hint of freshness. This will mean the proper use of the logo, a color scheme that will be appealing, and a working slogan and may even need new employees. Everything about the brand will need to be tied together to offer an identity that the consumer can understand. The company may need to hire people who are conversant with social media to create content that will be relevant. If hiring new personnel is not an option, the already existing members of staff in charge of marketing could be trained on the same to ensure effectiveness. An example of an advertising message to use on different media would be one in the website, ‘Helps your kid’s immune system stay healthy. Rich in Vitamin C, it offers a stellar defense’. Alongside this is a child around whom gear that would be worn to the moon, for instance, is drawn. Whereas this has been used on the website, people will hardly visit the site. Versions on this on social media will increase its visibility and thereby its effect.
People are more impressed with socially responsible businesses. Social responsibility has a lot to do with the obligation of a company to better the society. Collaborating with charities will not only be meeting the social responsibility but also serving to market the brand. An example where this can be done would be working with a children organization then offering Nesquik to the children involved in a program free of charge. The brand would be able to follow through the events of the program and update on social media thereby serving to help the children while at the same time creating social currency. In another example, mothers who are considered outstanding in some areas that are valued by society could be gifted with the product. This would not just encourage them but benefit the brand eventually. Alternatively, prices could be lowered in an area where the consumers targeted are not well to do. This would mean that they are affordable. If this is done alongside good publicity, the reduction in price could be covered by an increase in the number of customers thereby benefiting the brand.
In the website, the only information concerning where to buy any of the products that can be obtained is that within the United States. Whereas this might have worked before, it would need an overhaul. For a company serving more than 190 countries, one would expect better regarding this. Besides, like social media, campaigns start to take over and put the brand in a visible place, new clients will want to know where they can get the product. This means for Nestle then that they will have to provide that information if their services are to be satisfactory. The thing with social media though is that it can be risky. When a customer is not satisfied, they could rant online and depend on the influence, they have, the efforts of the brand could be nullified. Therefore, when social media strategies begin to be applied, they have to be well thought out and efficiently done. In addition, since there is already an online store stocking the product, Walmart.com, the brand can build from there to offer the product in other online stores that will serve people in geographical locations outside the United States.
Conclusion
Social media remains an untapped potential marketing agent for Nesquik. More than 80 percent of people spend their free time online in social media sites. This means that the use of billboards may no longer be the way to go, as they may not be as attractive as they once were. A company whose product appeals to the people, promising to meet their specific need while at the same time presenting itself in a way that it becomes etched in the minds of the public, is bound to see its sales plummet. Another advantage with social media is its ability to maintain brand relationships. Since people run a lot to online resources for answers or recommendations, making sure that the brand is online is one-step closer to them. It enables receipt of feedback and communication with consumers. Nesquik ought to utilize its Face book page, Instagram and Twitter handle if it is to talk to the new generations of technology savvy people they target for their product.
Brand repositioning requires that the target market segment be known. In this strategy, the public is targeted, and the aim is to have people who have never heard about the product or those who have heard but know only little to hear about it well enough that they are compelled to try it. The strategy seeks to involve the consumer and have them feel important to the brand. At the core of all marketing techniques applied will be values argued by Jobber (2004) to bring success that include consistency, clarity, credibility and competitive advantage.
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