Sometimes in 2018, Nestlé publicized selling its candy-making division, along with twenty brands which includes the Nestle Crunch Bar. The sale to Ferrero SpA was worth $2.8 billion. This case study solution looks at Nestle Crunch Bar and its valuation proposition.
Jill Avery and Gerald Zaltman
Harvard Business Review (519061-PDF-ENG)
January 12, 2019
Case questions answered:
- What themes do you find in the data that help you understand what this brand means to consumers?
- Based on your analysis of the data, how would you evaluate the health of the Nestle Crunch Bar? What are the brand’s strengths and weaknesses?
- Based on your insights from reading the case and analyzing the data, what would you write as a value proposition for this brand?
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Case answers for Understanding the Brand Equity of Nestlé Crunch Bar: A Market Research Case
Understanding the Brand Equity of Nestle Crunch Bar: A Market Research Case
In this “Understanding the Brand Equity of Nestle Crunch Bar: A Market Research Case”, we have access to research that shows us the elements that go into consumer relationships with the Nestle Crunch brand. Many of these elements relate to emotions and feelings, attitudes, and intentions, in addition to product features.
It is probable that the emotional and other “soft” elements will be very powerful drivers of brand preference and loyalty. That is good because these will be strong attachments. However, they may be hard to change if we decide to do that.
The brand has many associations, both positive and negative. These associations are cognitive, emotional, and relational. There is shared cultural meaning with this brand, and the brand evokes strong associations of the consumer social interactions in the past.
The brand is challenged to grow and to adapt to a changing competitive environment. For example, consumers are looking for healthy choices, but chocolate bars are considered a guilty indulgence that is not healthy.
The Nestlé Crunch Bar cannot stay the same and hope that business will sustain itself. The value proposition should evolve to meet the emerging preferences of consumers while maintaining the best of the brand values.
1.What themes do you find in the data that help you understand what this brand means to consumers?
I found this study to use an innovative market research methodology developed by Professor Zaltman, the Zaltman Metaphorical Inspiration Technique (ZMET), which has proven useful to brand managers who want to evaluate better and understand their brands.
The novelty of ZMET is that it allows participants to control the selection of images that reflect their thoughts and feelings; The images were probed using a range of interview techniques (Hancock, C., & Foster, C. 2019).
ZMET’s technique is based on the theory that more than 80 percent of human communication is nonverbal. Therefore, traditional questionnaire surveys, group surveys, and personal interviews are difficult to get people’s real feelings from the bottom of their hearts.
Therefore, consumer surveys had better use non-verbal methods to express their thoughts, opinions, feelings, and feelings. This survey method can position the brand more accurately.
2.Based on your analysis of the data, how would you evaluate the health of the Nestle Crunch Bar? What are the brand’s strengths and weaknesses?
The ingredients of Nestle Crunch Bar are…