Nestlé Waters North America Branding Strategy
Nestle's strategic reasons for maintaining multiple water brands in North America are the following: account for the varying tastes of the water due to several factors, meet the specific needs of each global region, and provide the means to compete in several segments.
- The differences in water types depend on their origin, consistency, composition, type of protection, and treatment. Due to these factors, there are differences in the taste of these varying water types.
- In order to account for these taste variations, Nestlé Waters offers three water categories with 51 unique brands under them.
- The company's multiple offerings that consist of spring water, prepared water, and natural mineral water enable Nestle Waters to address the specific tastes of the global consumers.
- Nestlé’s multiple water varieties provide them several channels where they can face other brands head-on.
- Due to the mounting competition in the beverage arena, Nestle's leadership team was tasked with the goal of pushing through with their plan to continuously adjust their strategy in order to drive commercial success. They balance this mission with their effort to deal with sensitive political and environmental concerns.
- As consumers become more concerned on the sources and the production techniques of bottled water products, this offers an opportunity for Nestle to reiterate the company's environment-friendly consciousness.
- US consumers are starting to become more concerned about where their products are sourced.
- More US consumers are now exploring never-before-tried sources. This is being seen as beneficial for the category and for the spring water brands since a more discerning consumer can integrate brand attributes into their buying decisions.
- Nestle is looking for ways to promote an inspirational message that highlights the company's changing views of environmental concerns.
- Beginning last August, all the company's bottled water products will now feature a standardized How2Recycle instruction label in order to better drive their message on how the bottles can be recycled.
- Nestlé Pure Life, considered as the world's top bottled water brand, has produced a 700-mL bottle that was sourced from "100 percent food grade recycled plastic" (rPET).
- Long-term environmental benefit has become a central part of Nestle's purpose and legacy.
- The new rPET bottle that will contain their namesake brand is the most recent endeavor that the company has launched in order to meet their consumer's demand for healthy and ready-to-go drinks and at the same time, inspire them to recycle.
- Currently, 100% of the company's single-serve bottles of their brands such as Mountain Spring Water, Arrowhead, and Nestlé Pure Life that were being processed in California are all produced with around 50% of recycled plastic materials.
- Origin: Acqua Panna's birthplace, the Panna estate in Tuscany, originates from the olden Renaissance period during the history-filled times of The Medici family. The family used to spend their vacation days at the estate where they can sample the local dishes and drink the local water that was sourced from the area. The brand is available in Europe and in the US.
- Brand success: Acqua Panna is being seen as a premium product due to its vintage origin and its image that represents the Italian way of life.
- Origin: This water brand got its name from a mountain with a natural arrowhead mark etched on its slopes. The Arrowhead Mountain Spring Water was first sourced from a spring near the mountain. The brand is available in the Western area of the US.
- Brand success: The brand's success can be perceived by its popularity in the area where it is being sold in a variety of bottle formats. Nestle has promoted this brand by highlighting that the water quality is equitable to the source that was once considered as holy by the Native Americans due to the water's healing powers.
- Origin: The Deer Park brand came about from a 100-year old tale. The story is that the Deer Park Hotel has started bottling the water from the Boiling Spring water source near the Appalachian Mountains in 1873. They then served these bottled water to the visitors that are traveling to the mountains. In 1905, the B&O Railroad also started to offer the Deer Park Brand Natural Spring Water in their dining cars. (S8) The brand is being sold in the eastern section of the US.
- Brand success: Based on a consumer report, people in the eastern area have since been enjoying the crisp taste of the Deer Park bottled water.
- Origin: Ice Mountain got its name from the climate condition in the Northern US over a thousand years ago. At that time, the area was blanketed with ice. As the glaciers start to melt over a period, gravel aquifers and thick sand were deposited near the groundwater source. These deposits then acted as natural filters to the groundwater as these flow above the ground to produce natural springs when the northern US was covered in ice, as glaciers melted over time, they deposited thick sand and gravel aquifers, which naturally filter the groundwater which flowed to the surface to create natural springs. The brand is being sold locally in the Midwestern section of the US.
- Brand success: Ice Mountain is being considered as the leading branded bottled water in the Midwest sector.
NESTLE PURE LIFE
- Origin: Nestlé Pure Life has its origin in Pakistan in 1998. The brand then spread into the European region around 2000 and in the United States in 2002. The name denotes the brand's commitment to their consumers who are concerned about the quality and the safety level of their water. The brand is being sold worldwide.
- Brand success: With around $1 billion in sales in the year 2017, Nestle's Pure Lifeline has been pegged as the company’s flagship bottled water product in all the markets where these are sold.
- Origin: The Ozarka Spring Water Company was established in Eureka Springs, Arkansas in 1905. The spring is near the Ozark Mountains which gave the brand its name. The brand is available in Texas, US.
- Brand success: The brand is being seen as evoking a natural and authentic feeling.
- Origin: Before Poland Spring became known as a spring water brand, the name belongs to a renowned inn that the Ricker family owned in the year 1797. It was Hiram Ricker, the grandson of the first Ricker settlers, who found out about the fresh taste of the spring water at the natural source. (Source 15) The brand was being sold in the northeastern sector of the US.(Source 16)
- Brand success: Poland Spring has been in the market since 1845 and the brand has a very solid link with its fans.
- Origin: Zephyrhills was named after a famous little town between Orlando and Tampa. There is a spring in the area where clear water flows. Zephyrhills is available in the Florida and Georgia area.
- Brand success: Zephyrhills has been considered as the number one bottled water brand in the state of Florida.
YOUR RESEARCH TEAM APPLIED THE FOLLOWING STRATEGY:
- In order to address the request, we have searched for directly available information on Nestle Water's branding strategy with regard to their multiple water brands. We have looked for this information in Nestle official brand sites, various advertising sites such as in the Effie database, WARC Case Finder, Creative Brief, and other similar sources; media outlets such as CIO, PRNews Wire, The New York Times, and other related sources; business and financial sites such as Forbes, Refinery29, Business Insider, and similar sites; consulting sites such as Deloitte, PWC, and other related sources. Based on this search approach, we were able to find most of the requested information on the origin and where the brands are being sold. However, we were not able to find the reason why these brands kept their individual names. We then tried to look for the status of these brands with regard to their popularity and sales success. As per the sources that we found, either the brands have been leading in the area in terms of sales or the people have considered the brands to be popular. Based on this information, we then hypothesized that the reason why the brand names were not changed could be due to the fact that these brands were established already or has been enjoying huge amounts of sales from their devoted consumers.