Most popular brands: Nestle, Ford Motor Company and McDonald's

Brand is the name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. Nestle's corporate business principles. History of Ford Motor Company. Products of McDonald's Corporation.

Рубрика Маркетинг, реклама и торговля
Вид реферат
Язык английский
Дата добавления 27.03.2013
Размер файла 21,6 K

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Introduction

Brand is the "name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers." Initially, Branding was adopted to differentiate one person's cattle from another's by means of a distinctive symbol burned into the animal's skin with a hot iron stamp, and was subsequently used in business, marketing and advertising. A modern example of a brand is Coca Cola which belongs to the Coca-Cola Company. A brand is the most valuable fixed asset of a Corporation.

The word "brand" is derived from the Old Norse brandr meaning "to burn." It refers to the practice of producers burning their mark (or brand) onto their products.

The oldest generic brand, which is in continuous use in India since the Vedic period (ca. 1100 B.C.E to 500 B.C.E), is known as 'Chyawanprash', an herbal paste consumed for its purported health benefits and attributed to a revered rishi (or seer) named Chyawan. This brand was developed at Dhosi Hill, an extinct volcano in northern India.

The Italians were among the first to use brands, in the form of watermarks on paper in the 1200s. Blind Stamps, hallmarks and silver maker's marks are all types of brand.

Although connected with the history of trademarks and including earlier examples which could be deemed "protobrands" (such as the marketing puns of the "Vesuvinum" wine jars found at Pompeii), brands in the field of mass-marketing originated in the 19th century with the advent of packaged goods. Industrialization moved the production of many household items, such as soap, from local communities to centralized factories. When shipping their items, the factories would literally brand their logo or insignia on the barrels used, extending the meaning of "brand" to that of trademark. Proper branding can result in higher sales of not only one product, but on other products associated with that brand. Brand is the personality that identifies a product, service or company (name, term, sign, symbol, or design, or combination of them) and how it relates to key constituencies: customers, staff, partners, investors etc.

Some people distinguish the psychological aspect, brand associations like thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so on that become linked to the brand, of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. The brand experience is a brand's action perceived by a person.

People engaged in branding seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. A brand is therefore one of the most valuable elements in an advertising theme, as it demonstrates what the brand owner is able to offer in the marketplace. The art of creating and maintaining a brand is called brand management. Orientation of the whole organization towards its brand is called brand orientation. The brand orientation is developed in responsiveness to market intelligence.

A brand which is widely known in the marketplace acquires brand recognition. When brand recognition builds up to a point where a brand enjoys a critical mass of positive sentiment in the marketplace, it is said to have achieved brand franchise. Brand recognition is most successful when people can state a brand without being explicitly exposed to the company's name, but rather through visual signifiers like logos, slogans, and colors.

In this paper we consider the three most popular brands: Nestle, Ford Motor Company, McDonald's

1.Nestle

Nestle's is the world leader in Nutrition, Health and Wellness, trusted by all its stakeholders, and to be the reference for financial performance in its industry.

Nestle believe that leadership is not just about size; it is also about behaviour. Trust, too, is about behaviour; trust is earned only over a long period of time by consistently delivering on our promises. These objectives and behaviours are encapsulated in the simple phrase, “Good Food, Good Life”.

The Nestle Roadmap is intended to create alignment for people behind a cohesive set of strategic priorities that will accelerate the achievement of objectives. These objectives demand from people a blend of long-term inspiration needed to build for the future and short-term entrepreneurial actions, delivering the necessary level of performance.

Nestle are seeking to achieve leadership and earn that trust by satisfying the expectations of consumers, whose daily choices company activity, of shareholders, of the communities in which it operate and of society as a whole. Nestle believe that it is only possible to create long- term sustainable value for shareholders if behaviour, strategies and operations are also creating value for the communities where company operate, for business partners and, of course, for consumers. Nestle call this “Creating Shared Value”.

Nestle are investing for the future to ensure the financial and environmental sustainability of actions and operations: in capacity, in technologies, in capabilities, in people, in brands, in R&D. aim is to meet today's needs without compromising the ability of future generations to meet their needs, and to do so in a way which will ensure profitable growth year after year and a high level of returns for shareholders and society at large over the long-term.

1.1 History of Nestle

History begins back in 1866, when the first European condensed milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk Company.

In Vevey, Switzerland, founder Henri Nestle, a German pharmacist, launched his Farine lactee, a combination of cow's milk, wheat flour and sugar, saving the life of a neighbour's child. Nutrition has been the cornerstone of company ever since. The Anglo-Swiss Condensed Milk Company, founded by Americans Charles and George Page, merged with Nestle after a couple of decades as fierce competitors to form the Nestle and Anglo-Swiss Milk Company.

During World War II, Members of the Board and General Management were transferred to the U.S. where they coordinated Nestle activities in the Western Hemisphere, the British Empire and overseas.

Ironically, having slowed the initial launch of Nescafe, the war then helped to popularise it; with the United States entering the war, Nescafe coffee became a staple beverage of American servicemen serving in Europe and Asia.

Nesquik, the instant chocolate drink, was developed in the United States in 1948. Its original name of Quik was a direct allusion to the speed and simplicity of its preparation.

In 1981 the World Health Assembly adopted the International Code for the Marketing of Breast-milk Substitutes (“WHO Code”) and recommended that its Member States implement it. Nestle was the first company to develop policies based on the WHO Code and apply them across our entire operations in developing countries.

The Nespresso story began in 1986 with a simple idea: enable anyone to create the perfect cup of espresso coffee, just like a skilled barista.

The Italian brand Buitoni, in Sansepolcro, became part of Nestle portfolio in 1988. Nestled in the hills of Tuscany, Casa Buitoni is the symbol of the brand's ongoing commitment to quality, creativity, and tradition.

In 1988 the UK-based organisation, Baby Milk Action, launched a boycott against Nestle. While there are still boycott activities in the UK today, the following organisations have officially ended their support for it: the General Synod of the Church of England in July 1994, the Royal College of Midwives in July 1997, the Methodist Ethical Investment Committee in November 2005 and the United Reformed Churches in November 2011.

The first half of the 1990s were favourable for Nestle with the opening up of Central and Eastern Europe, as well as China - good news for a company with such far-flung and diverse interests.

Nestle launched the Nestle Cocoa Plan which will supply 38 million high quality, disease-resistant plantlets to farmers helping them rejuvenate their farms and increase productivity. The Nescafe Plan was also launched - investing CHF 500 million to address responsible farming, sourcing and consumption across our coffee supply chain.

Also awarded the first Nestle Prize in Creating Shared Value to IDE Cambodia for its Farm Business Advisors programme and announced partnership with the Forest Trust to work to combat deforestation.

1.2 Nestle's corporate business principles

The Nestle Corporate Business Principles are at the basis of our company's culture, which has developed over the span of 140 years.

The latest version of Corporate Business Principles, updated in June 2010, has been handed over to company's employees around the world and accompanied by basic learning and training tools.

Since 2011, a systematic and comprehensive modular training programme is being rolled out on the various components of the Corporate Business Principles. The depth and focus of the trainings is established in accordance with the materiality for the different functions within the company. For example, in 2011 the first step of the training on the human rights components focused on managers and employees in countries of higher human rights risks as a priority. In 2012, major efforts will be on training programs related to Management and Leadership, Conditions of Work and Employment and Compliance.

Nestle is committed to the following Business Principles in all countries, taking into account local legislation, cultural and religious practices:

1. Nutrition, Health and Wellness

core aim is to enhance the quality of consumers lives every day, everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle. Nestle express this via company's corporate proposition 'Good Food, Good Life'.

2. Quality Assurance and product safety

Everywhere in the world, the Nestle name represents a promise to the consumer that the product is safe and of high standard.

3. Consumer Communication

Nestle is committed to responsible, reliable consumer communication that empowers consumers to exercise their right to informed choice and promotes healthier diets. Respecting consumer privacy.

4. Human rights in business activities

Nestle fully support the United Nations Global Compact's (UNGC) guiding principles on human rights and labour and aim to provide an example of good human rights' and labour practices throughout business activities.

5. Leadership and personal responsibility

Company's success is based on people. They treat each other with respect and dignity and expect everyone to promote a sense of personal responsibility. Nestle is protect their privacy and do not tolerate any form of harassment or discrimination.

6. Safety and health at work

nestle is committed to preventing accidents, injuries and illness related to work, and to protect employees, contractors and others involved along the value chain.

7. Supplier and customer relations

Nestle require suppliers, agents, subcontractors and their employees to demonstrate honesty, integrity and fairness, and to adhere to non-negotiable standards.

8. Water

Nestle is committed to the sustainable use of water and continuous improvement in water management. They recognise that the world faces a growing water challenge and that responsible management of the world's resources by all water users is an absolute necessity.

2. Ford Motor Company

Ford Motor Company (also known as simply Ford) is an American multinational automaker headquartered in Dearborn, Michigan, a suburb of Detroit. It was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobiles and commercial vehicles under the Ford brand and luxury cars under the Lincoln brand. In the past it has also produced heavy trucks, tractors and automotive components. Ford owns small stakes in Mazda of Japan and Aston Martin of the United Kingdom. It is listed on the New York Stock Exchange and is controlled by the Ford family, although they have minority ownership.

Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving assembly lines; by 1914 these methods were known around the world as Fordism. Ford's former UK subsidiaries Jaguar and Land Rover, acquired in 1989 and 2000 respectively, were sold to Tata Motors in March 2008. Ford owned the Swedish automaker Volvo from 1999 to 2010.

Ford is the second-largest U.S.-based automaker and the fifth-largest in the world based on 2010 vehicle sales.[4] At the end of 2010, Ford was the fifth largest automaker in Europe.[5] Ford is the eighth-ranked overall American-based company in the 2010 Fortune 500 list, based on global revenues in 2009 of $118.3 billion. In 2008, Ford produced 5.532 million automobiles and employed about 213,000 employees at around 90 plants and facilities worldwide.

2.1 History of Ford Motor Company

Henry Ford's first attempt at a car company under his own name was the Henry Ford Company on November 3, 1901, which became the Cadillac Motor Company on August 22, 1902, after Ford left with the rights to his name. The Ford Motor Company was launched in a converted factory in 1903 with $28,000 in cash from twelve investors, most notably John and Horace Dodge (who would later found their own car company). During its early years, the company produced just a few cars a day at its factory on Mack Avenue in Detroit, Michigan. Groups of two or three men worked on each car, assembling it from parts made mostly by supplier companies contracting for Ford. Within a decade the company would lead the world in the expansion and refinement of the assembly line concept; and Ford soon brought much of the part production in-house in a vertical integration that seemed a better path for the era.

Henry Ford was 39 years old when he founded the Ford Motor Company, which would go on to become one of the world's largest and most profitable companies, as well as being one to survive the Great Depression. As one of the largest family-controlled companies in the world, the Ford Motor Company has been in continuous family control for over 100 years.

In 1908 Ford introduced the first engine with a removable cylinder head, in the Model T. In 1930, Ford introduced the Model A, the first car with safety glass in the windshield. Ford launched the first low priced V8 engine powered car in 1932.

Ford offered the Lifeguard safety package from 1956, which included such innovations as a standard deep-dish steering wheel, optional front, and, for the first time in a car, rear seatbelts, and an optional padded dash.[9] Ford introduced child-proof door locks into its products in 1957, and in the same year offered the first retractable hardtop on a mass-produced six-seater car. The Ford Mustang was introduced in 1964. In 1965 Ford introduced the seat belt reminder light.

With the 1980s, Ford introduced several highly successful vehicles around the world. In 1990 and 1994 respectively, Ford also acquired Jaguar Cars and Aston Martin. During the mid- to late 1990s, Ford continued to sell large numbers of vehicles, in a booming American economy with a soaring stock market and low fuel prices.

With the dawn of the new century, legacy healthcare costs, higher fuel prices, and a faltering economy led to falling market shares, declining sales, and diminished profit margins. Most of the corporate profits came from financing consumer automobile loans through Ford Motor Credit Company.

2.2 Products

Automobile. As of 2012 Ford Motor Company sells a broad range of automobiles under the Ford marque worldwide, and an additional range of luxury automobiles under the Lincoln marque in the United States. The company has sold vehicles under a number of other marques during its history. The Mercury brand was introduced by Ford in 1939, continuing in production until 2011 when poor sales led to its discontinuation. In 1958, Ford introduced the Edsel brand, but poor sales led to its discontinuation in 1960. In 1985, the Merkur brand was introduced in the United States to market products produced by Ford of Europe; it was discontinued in 1989.

Ford acquired the British sports car maker Aston Martin in 1989, later selling it on March 12, 2007, although retaining a 15% stake, and bought Volvo Cars of Sweden in 1999, selling it to Zhejiang Geely Holding Group in 2010. In November 2008, it reduced its 33.4% controlling interest in Mazda of Japan to a 13.4% non-controlling interest. On November 18, 2010, Ford reduced their stake further to just 3%, citing the reduction of ownership would allow greater flexibility to pursue growth in emerging markets. Ford and Mazda remain strategic partners through exchanges of technological information and joint ventures, including an American joint venture plant in Flat Rock, Michigan called Auto Alliance. Ford sold the United Kingdom-based Jaguar and Land Rover companies and brands to Tata Motors of India in March 2008.

In 2011, J.D. Power ranked Ford 23rd in initial quality, a drop from fifth in 2010. Consumer Reports magazine likewise decided not to recommend several new Ford SUVs, blaming the Sync entertainment and phone system used.

Trucks. Ford has produced trucks since 1908. Countries where Ford commercial vehicles are or were made include Argentina, Australia, Brazil, Canada (badged Mercury too), France, Germany, India, Netherlands, Philippines, Spain (badged Ebro too), Turkey, UK (badged also Fordson and Thames) and USA.

From the 1940s to late 1970s Ford's Ford F-Series were used as the base for light trucks for the North American market.

Most of these ventures are now extinct. The European one that lasted longest was the lorries arm of Ford of Britain, which was eventually sold to Iveco group in 1986, and whose last significant models were the Transcontinental and the Cargo.

In the United States, Ford's heavy trucks division (Classes 7 and 8) was sold in 1997 to Freightliner Trucks, which rebranded the lineup as Sterling. Freightliner is in the process of discontinuing this line.

Buses. A Ford B700 bus chassis, with a body by Thomas Built

Ford manufactured complete buses in the company's early history, but today the role of the company has changed to that of a second stage manufacturer. In North America, the E-Series is still used as a chassis for small school buses and the F-650 is used in commercial bus markets. In the 1980s and 1990s, the medium-duty B700 was a popular chassis used by school bus body manufacturers including Thomas Built, Ward and Blue Bird, but Ford lost its market share due to industry contraction and agreements between body manufacturers.

Tractors. The "Henry Ford and Son Company" began making Fordson tractors in Henry's hometown of Springwells (later part of Dearborn), Michigan from 1907 to 1928, from 1919 to 1932, at Cork, Ireland, and 1933-1964 at Dagenham, England, later transferred to Basildon. They were also produced in Leningrad beginning in 1924.

In 1986, Ford expanded its tractor business when it purchased the Sperry-New Holland skid-steer loader and hay baler, hay tools and implement company from Sperry Corporation and formed Ford-New Holland which bought out Versatile tractors in 1988. This company was bought by Fiat in 1993 and the name changed from Ford New Holland to New Holland. New Holland is now part of CNH Global.

3. McDonald's

McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. brand nestle ford mcdonald

A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27 percent over the three years ending in 2007 to $22.8 billion, and 9 percent growth in operating income to $3.9 billion.

McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, milkshakes and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies and fruit.

3.1 History of McDonald's

The business began in 1940, with a restaurant opened by brothers Richard and Maurice McDonald at 1398 North E Street at West 14th Street in San Bernardino, California . Their introduction of the "Speedee Service System" in 1948 furthered the principles of the modern fast-food restaurant that the White Castle hamburger chain had already put into practice more than two decades earlier. The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was "Speedee". Speedee was eventually replaced with Ronald McDonald by 1967 when the company first filed a USA trademark on a clown shaped man having puffed out costume legs.

McDonald's first filed for a USA trademark on the name "McDonald's" on May 4, 1961, with the description "Drive-In Restaurant Services", which continues to be renewed through the end of December 2009. In the same year, on September 13, 1961, the company filed a logo trademark on an overlapping, double arched "M" symbol.

The overlapping double arched "M" symbol logo was temporarily disfavored by September 6, 1962, when a trademark was filed for a single arch, shaped over many of the early McDonald's restaurants in the early years. Although the "Golden Arches" appeared in various forms, the present form as a letter "M" did not appear until November 18, 1968, when the company applied for a U.S. trademark. The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois, on April 15, 1955, the ninth McDonald's restaurant overall. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion, and the company became listed on the public stock markets in 1965. Kroc was also noted for aggressive business practices, compelling the McDonald brothers to leave the fast food industry. The McDonald brothers and Kroc feuded over control of the business, as documented in both Kroc's autobiography and in the McDonald brothers' autobiography. The San Bernardino store was demolished in 1976 (or 1971, according to Juan Pollo) and the site was sold to the Juan Pollo restaurant chain. It now serves as headquarters for the Juan Pollo chain, as well as a McDonald's and Route 66 museum. With the expansion of McDonald's into many international markets, the company has become a symbol of globalization and the spread of the American way of life. Its prominence has also made it a frequent topic of public debates about obesity, corporate ethics and consumer responsibility.

3.2 Products

A McDonald's McArabia meal, served with French fries. The McArabia is a popular pita bread sandwich sold in the Middle East and central Asia.

McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare. On a seasonal basis, McDonald's offers the McRib sandwich. Some speculate the seasonality of the McRib adds to its appeal. Various countries, especially in Asia, are currently serving soup. This local deviation from the standard menu is a characteristic for which the chain is particularly known, and one which is employed either to abide by regional food taboos (such as the religious prohibition of beef consumption in India) or to make available foods with which the regional market is more familiar (such as the sale of McRice in Indonesia). In Germany, McDonald's sells beer.

Conclusion

The outward expression of a brand - including its name, trademark, communications, and visual appearance - is brand identity. Because the identity is assembled by the brand owner, it reflects how the owner wants the consumer to perceive the brand - and by extension the branded company, organization, product or service. This is in contrast to the brand image, which is a customer's mental picture of a brand. The brand owner will seek to bridge the gap between the brand image and the brand identity.

Effective brand names build a connection between the brand personality as it is perceived by the target audience and the actual product/service. The brand name should be conceptually on target with the product/service (what the company stands for). Furthermore, the brand name should be on target with the brand demographic. Typically, sustainable brand names are easy to remember, transcend trends and have positive connotations. Brand identity is fundamental to consumer recognition and symbolizes the brand's differentiation from competitors.

Brand identity is what the owner wants to communicate to its potential consumers. However, over time, a product's brand identity may acquire (evolve), gaining new attributes from consumer perspective but not necessarily from the marketing communications an owner percolates to targeted consumers. Therefore, brand associations become handy to check the consumer's perception of the brand.

Brand identity needs to focus on authentic qualities - real characteristics of the value and brand promise being provided and sustained by organizational and/or production characteristics.

References

1.Martins,Jose Souza (2000) The Emotional Nature of a Brand: Creating images to become world leaders.

2.Gregory,James (2003). Best of Branding.

3. Olins,Wally (2003). On Brand, London: Thames and Hudson.

4.Fan,Y. (2002). “The National of Global Brands”, Journal of Brands Management.

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