Sweet on Nestlé

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Thu, 26/08/2010 - 14:45

Swiss company Nestlé has announced that it expects a five percent growth in sales for this half of 2010 despite its competitors reporting a decline in sales. The brand has also been in the news due to its purchase of two smaller food providers: British based Vitaflo and Guatemalan company Mahler. Vitaflo produces food for people with genetic-metabolic problems, whilst Mahler is a food and powdered drink producer. Both purchases are part of Nestlé's plan to spend roughly $1.9 billion on 'bolt-on' acquisitions each year.

As a result Nestlé has registered its highest BrandIndex 'Buzz' score so far this year, reaching a high of 5.7 on 10th August. 'Buzz' measures whether respondents have seen or heard anything positive or negative about a brand in the last two weeks and as the graph below shows, Nestlé's score has shot up in recent days, from a low of -1.5 on 21st July.

Another contributing factor to Nestlé's uplift is a new marketing campaign by Milkybar, a brand that Nestlé owns. Milkybar is currently searching for an adult to play the Milkybar kid to help celebrate the launch of a new chocolate bar aimed at adults, which will contain biscuits and raisins. Potential candidates are asked to send videos of themselves impersonating the timeless character to Milkybar, with the five best having the opportunity to appear in an poster advertising campaign this October.

The 'Ungrow up' campaign broke on TV on 2nd August, highlighting the opportunity adult fans of the chocolate bar had, and was described by Marketing Week on the same day as Nestlé's biggest ever marketing campaign.

Although the 'Buzz' around Nestlé has dropped recently, the 'Buzz' around Milkybar has increased dramatically. On 1st August the 'Buzz rating for Milkybar stood at 5.2pts and rose to a peak of 13.8pts on 18th August, showing the campaign has generated significant positive sentiment amongst the public.

Nestlé and Milkybar 'Buzz' scores
Chart Image
People Illustration