Understanding the

Brand Equity of
Nestlé Crunch Bar:
A Market Research
Case

Group 4

Harsh Bathia; Shrey Agarwal; Rachana Budida; Shreeansh Mairal

Q1. Based on your own reading of the interview data what might the brand constructs be? How does the data
support your choices? Would these be similar to the research team identified constructs that emerged from
consumer interviews?
Constructs identified by our team must be similar to the constructs identified by the research team as they are in
line with the ZMET process and have been recorded based on the common aspects of every interview. The
relations that we were able to draw between the common constructs would resemble the findings of the
researchers in the case study. The mental-mapping of t he consumers we created based on the ZMET would be
very similar to the one that the research team must have arrived at. We can say that our findings are much
similar to those of the research team mentioned in the case study.
Brand Constructs:
 Relaxing, not serious: The candy bar is associated with feelings of destressing and loosening up. For
example, enjoying a bar of Nestlé Crunch after a tennis game disregarding who won or lost,

 Happy flashbacks: One of the vignettes depicted a rushed office life and particularly a bad day with angry
bosses and bad weather and cancelled vacations followed by eating the candy bar and enjoying the simple
pleasures of life. One vignette was about a young couple in a sports car on a vacation, while one picture
showed a snowman associating happy-casual-fun times.

 Nostalgia: This parameter would definitely be one of the constructs that the research team would have
identified using their selection of parameters since it is evident from multiple pieces of information in the
raw data collected. Woman in jeans, image of the clock, girl in box and image of old door are examples
where we can see nostalgia being highlighted as a prominent construct.

 Comfort and relaxation: This is yet another parameter the researchers would have identified and included
in their final constructs since it is seen repetitively in the responses. Digital Image 7 with heart and
chocolate, image 2 of Exhibit 5-the big chocolate heart, vignette 1 of the tennis game, etc. show how the
general perception of the candy bar is about having a good-relaxed vibe.

Q2. What are the common metaphors that consumers use to describe the Nestlé Crunch Bar? What do they
tell you about the brand’s meaning to consumers?

The common metaphors that we came across in the case study are:

 The comfort of having a chocolate bar that is somewhat like a feeling of sitting in a bed and having
your candy bar and then setting into your most comfortable moments.

 The satisfaction that you get after you have a Nestle Crunch Bar after a testing day at work, a tiring
day at school or as a truce after a competitive sports event with someone.

 It is a feeling of coming home or a reminder of a time when you were with your favorite people with
whom you shared this chocolate bar.

 It is associated with the feeling of nostalgia when it was a treat that children used to get at the movies
or on a few occasions. It also reminds of the simpler times in life when having a chocolate bar was a
moment where everything felt safe and secure.

 People associate it with the calmness of the forest and ocean and the how they feel at peace after
having a Nestle Crunch Bar.

 It brings in a fun element of the crunch and the exciting sound that it has that differentiates it from
rest of the “boring” candy bars.

 The fact that the chocolate has remained the same and is consistent with its flavors makes it a
timeless classic for the people and they even consider it as a true American chocolate bar.
These metaphors give the impression about the brand that Nestle Crunch Bar has etched its place inside
people’s minds as a traditional American candy bar that has been there since forever and is consistent with
its flavor. It has become an iconic brand that people associate with feelings of comfort, nostalgia, friendship,
calmness, and community. The people feel satisfaction, ecstasy, pleasure, a soothing sensation, and a sense
 of accomplishment after enjoying a Nestle Crunch Bar which shows how the bar has so many pleasant
associations with people. The rich, creamy, soft, and chocolaty flavor of the bar is the source of comfort,
while the crunchiness is the source of excitement for some. Hence, the image of the bar is an all-American
chocolate bar. The Nestle Crunch Bar is engraved in the minds of the people as a trustworthy and consistent
brand that is a source of happiness and memories.

Q3. Assess ZMET as a consumer research methodology. What are its strengths and weaknesses? Under which
conditions is it most/least useful to marketing managers? What insights did you learn about the methodology by
conducting your own ZMET?

Q4. How would you evaluate the health of the Nestlé Crunch Bar brand at the time of Professor Zaltman’s study?
What strengths and weaknesses in its brand equity do you uncover? What do you note about its pattern of brand
associations?

Brand Health Survey is predominantly a quantitative survey with a sample size of about two hundred. It is done
to assess the brand image of a particular SKU. It is a categorical survey, so participants would be asked whether
they consume and how frequently do they consume the offering. At the time of Professor Zaltman’s study, a
Brand Survey would reveal the Brand Health of Nestlé Crunch Bar brand. The evaluation would have been done
through assessing the purchase drivers of the brand through a relatively less time consuming and cheaper survey
method such as an in-mail delivery questionnaire, telephonic interview, etc. The survey would include questions
that would assess the respondent’s awareness, knowledge, feelings, and attitudes towards the Nestlé Crunch Bar
brand.

Consumer based brand equity is composed of the following four components: Brand Awareness, Brand
Knowledge, Brand Feelings and Brand Attitudes. Brand Equity would measure the value of relationship of the
consumer with the brand. It would show the following strengths and weaknesses:

Strengths-

 Nestlé is a timeless American confectionary company and has stayed consistent with its flavor and has
maintained a strong brand connection with American population through years of its operations in the
United States.

 Strong Brand Awareness due to prolonged successful presence in the market

 Perceived as a traditional and loved American brand

 Perception of smooth-comforting essence

 Strong sentimental perception of the brand and an emotional connect in the minds of consumers

Weakness-

 Shift in customer preferences towards healthier and more premium chocolate products

 Market share of competitors in the confectionery segment is much higher

 Customer preferences for competitors would be higher

Pattern of Brand Association-

Comfort

Consistent

Crunch (noise) Calm/ Soothing

All-American
Memories

Smooth taste Nostalgia

For everyone

The pattern of brand associations show that it is perceived as a home-brand for Americans. It is perceived as a
calm-soothing product that is to be relished with friends and family. It brings joy and comfort in a busy and
hassled lives. What we notice from the association patterns is that the brand has a peculiar positioning

Q5. If you were hired as a marketing consultant to Ferrero SpA, what advice would you provide to their brand
managers about Nestlé Crunch Bar? What insights would you suggest developing brand loyalty and customer
attraction strategies - Discuss brand strength related insights?

Brand Image Analysis of Nestlé Crunch Bar based on the images brought by participants and their stories about
them shows the following:

Advice and Insights for developing brand

loyalty and customer attraction strategies:

The images brought in by participants depicted

that the chocolate bar is perceived as more
female oriented than male oriented (Girl in box,
woman in jeans, Dreamlike woman, etc.). The
company can have their segmentation,
targeting, and positioning in a way that
emphasizes and celebrates womanhood and
feminism. Secondary research also showed that
Nestlé bar teamed up with girl scouts to roll out
limited edition Crunch candy bars.[ CITATION
Con17 \l 1033 ] It should continue with its
marketing strategy of targeting women and
girls. Approaching influencers such as Greta
Thunberg and Lily Singh for advertising
campaigns would be a good step in that
direction.
Brand Association and perception study showed that the participants associate Nestlé Crunch Bar with nostalgia
and consistency. Nestlé Crunch was rolled out in 1938 in NYC [ CITATION Nes13 \l 1033 ] and has remained
mostly consistent in taste and texture over the decades. Thus, it is advisable to keep the taste and texture of the
bar unchanged. Minor tweaks in the wrapping and taste could be made only after ensuring that the essence of
consistency remains. Marketing campaigns can revolve around the theme of timeless sturdiness of the chocolate
bar. Another element that ZMET study revealed is the perception of getting zoned out of the reality and reaching
a place of happiness and/or nostalgia. Accordingly, a good advertisement would show a clip of a woman in her
late forties stopping by a shop near a bus stop to grab a Nestlé Crunch. As she takes a bite, she is taken back to
(flashback of) her childhood when her mother bought her a Nestlé Crunch while waiting for a bus on the same
road.

Usage and Attitude studies need to be undertaken every 2-3 years in order to comprehend and act on changes in
customer perception towards the Nestlé Crunch bar brand. The qualitative-quantitative combo study would be
done to better understand the motivators for the product using Likert scale questions.

As for brand loyalty, QR codes can be printed on the candy bar wrappers which people can scan to meet Greta
Thunberg, Lily Singh, or other celebrities and influencers. Contests can be held wherein consumers are
encouraged to share their favorite memories associated with Nestlé Crunch and the best few could be rewarded
with prizes and Nestlé products/ merchandise.

Brand Strengths and Related Insights

Ferrero wanted to enter the rich US market of confectioneries. However, the market was already saturated with
players such as Hershey’s, Snickers, Reese’s, etc. who possessed prominent market share of loyal customers.
Nestlé was a growing brand in the US with a portfolio of confectionery items including Butterfinger, Baby Ruth,
Raisinets, Nips, Skinny Cow and Laffy Taffy. Being the world’s largest food company in 2017 as per 2017 Forbes
Global 2000, [ CITATION Zla18 \l 1033 ] Nestlé wanted to focus on its cereals and SBUs other than
confectionery. Ferrero (Italy) leveraged this opportunity to takeover Nestlé ’s candy bar SBU (excluding Toll
House and Kit Kat) to make an impactful entry into the US market for a deal of USD 2.8 billion.

Nestlé’s strong brand equity, brand awareness, and brand value is significant to attract such partnerships and
conglomerates.

Current sales and figures need to be looked into to decide whether Nestlé Crunch bar needs revamping. The
reason is that Coca Cola tried to make its product better than its competitor in its Pepsi v/s Coke taste battle but
faced harsh criticism from Coke loyalists who disliked the new Coke. Keeping that in mind, it is necessary to
evaluate the current standing of the chocolate bar in the market so as to not offend an existing loyal customer
base. Instead, efforts could be made to strengthen that sense of loyalty towards the brand.

References
Confectionery News. (2017, March 16). Nestlé Crunch Bar . Retrieved from Confectionery News:
https://www.confectionerynews.com/Article/2012/05/10/Nestle-teams-with-Girl-Scouts-for-
limited-edition-Crunch-bars#:~:text=Nestl%C3%A9%20has%20teamed%2Dup%20with,through
%20to%20September%20this%20year.

Meyer, Z. (2018, January 16). Nestle is selling its U.S. candy business to Ferrero for about $2.8 billion.
Retrieved from USA Today: https://www.usatoday.com/story/money/2018/01/16/nestle-
selling-its-u-s-candy-business-ferrero-2-9-b/1036675001/