Probably should be, “Nestle, regarding its Crunch bar, thought the word, “Crunch”, in the snack’s name, would cause confusion.”
I always put commas before and after quotation marks, when they appear in the middle of a sentence. I also tend to put them in spots where, if I were speaking, I would pause. An editor would probably blue pencil me all over the place. Oh well, tough; I love commas.
Commas can be great.