A New Class of Asset

Prophet, May 20, 2009 — What is a brand and when does it become an asset? In this article, we discuss the history of brand valuation.

A Cup of Coffee, Enriched by Lifestyle

New York Times, February 19, 2009 — The current recession may be most serious since the 1930s, but these are boom times at Nespresso — the seemingly omnipresent brand of coffee and coffee makers owned by the Swiss food giant Nestlé.

Though it represents about 5 percent of overall Nestlé sales of 110 billion francs, Nespresso is now the fastest growing among the most important brands at a company that owns household names like Perrier water, Maggi sauce, Felix cat food and, of course, Nestlé chocolate.

McCann Offers Peek at Lives of Latin America's Poor†

Interpublic Unit Forms Bodega Division to Tutor Clients in Marketing to the Region's 'Emerging Consumers'

Wall Street Journal, December 8, 2008 — During presentations at McCann Worldgroup's office in Bogotá, Colombia, staffers have taken to letting a chicken loose to hunt and peck around clients' feet.

In Mexico City, the big advertising agency hired a local merchant to install racks of potato chips and otherwise transform its conference room into a bodega, or corner grocery store. Clients lunch on tacos served on a plastic table mat.

The point of these exercises: to give big marketers some insight into the lifestyles of Latin America's low-income consumer.

As Water Sales Dry Up, Nestlé Pans Soda†

Wall Street Journal, November 13, 2008 — Concerns that bottled water is a bad choice for the environment have cooled sales of the hot-selling product. But Nestlé, the world's biggest bottled-water producer, is trying to persuade consumers they should worry more about another drink: soda.

An Old Buzzword Is Back: Bargains

New York Times, October 24, 2008 — As the year began, consumers started to see a trickle of advertisements that played up brand value rather than attributes like status or prestige. As the economy worsened in the spring and summer, the trickle became a torrent.

Now, as the crisis in finance continues, a veritable tidal wave of ads devoted to saving money is washing over the country.

Marketing textbooks suggest, however, that a focus in the short term on pinching pennies could in the long run have a deleterious effect on the images of brands or products by cheapening them.

Nestlé Sales Buoyed by Price Increases†

Wall Street Journal, October 24, 2008 — The world's largest food company, Nestlé SA, raised its revenue outlook for the year as its strategy of increasing product prices continues to pay off.

By adding features and promoting its brands, Nestlé has been able to persuade consumers to pay more for its products. Following that strategy, it is introducing a new line of baby food, NaturNes, that boasts that it cooks the ingredients separately, an appeal to parents worried about sterilization.

"People go for value. It is not always a question of price," Chief Executive Paul Bulcke said in an interview.

Learning from the Olympics

From GE to Nestlé to watchmaker Omega, companies use the Games to test-drive new ideas—and strut their stuff

BusinessWeek, August 7, 2008 — When U.S. Women's soccer defender Heather Mitts hits the field for the Olympics, she'll rely on more than her gear, teammates, and fans for support. Mitts suffered a torn ligament last year and had to sit out the World Cup in September. But she's back for the Beijing Games. And her confidence will no doubt be boosted by the knowledge that doctors are nearby, ready to scan her knee at the first signs of stress. They'll be using a compact ultrasound machine, the LOGIQ i from General Electric Healthcare (GE). The 12-pound device can produce detailed images of even the tiniest tears in her ligament—every bit as sharp as those from the 800-pound machines found in hospitals.

It's part of GE's strategy of using the Olympics to show off its latest innovations.

After Buying Binge, Nestle Goes On a Diet†

Departing CEO Slashes Slow Sellers, Brands; 'No' to Low-Carb Rolo

Wall Street Journal, July 23, 2007 — Nestlé SA Chief Executive Peter Brabeck made two troubling discoveries last year: The food maker was churning out 130,000 variations of its brands, and 30% weren't making money. After 10 years running the world's largest food company, Mr. Brabeck worries that Nestlé has grown so big that it has become unwieldy and slow. Now, in the final months before he steps down as CEO next April, he is pushing an aggressive plan to jettison weaker brands and simplify the organization.

Nestle to buy Gerber for $5.5 billion

BusinessWeek, April 12, 2007 — The famous Gerber Baby will change parents, with Nestle SA announcing Thursday that it will buy Gerber Products Co. for $5.5 billion, giving the world's biggest food and drink company the largest share of the global baby food market.