waqas mtrl kitkat

8/2/2019 waqas mtrl kitkat

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KIT KATKIT KAT IntroductionIntroduction

y Kit Kat, the worlds most renowned confection, was first created byRow tree Limited of York, England, and now produced worldwideby Nestl, which acquired Row tree in 1988.

y The original four-finger version bar was developed after a worker atthe Row tree's factory in York put a suggestion in the suggestionbox for a snack that a 'man could have in his lunch box for work'. Itwas launched in September 1935 in the UK as Row tree's ChocolateCrisp.

y It was named Kit Kat after World War II. The name is believed tohave come from the Kit-Cat Club, a seventeenth century politicalclub for artists.


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GLOBALGLOBALOverviewOverview

y The Kit Kat has been manufactured by Nestl for Canada,Germany, Japan, and Australia. Kit Kat bars available in the UnitedStates are manufactured under license by The Hershey Company, aNestl competitor, due to a prior licensing agreement with Rowtree.

y Kit Kat bars are manufactured in 15 countries: UK, USA, Canada,Australia, New Zealand, Algeria, South Africa,Germany, Japan,China, Malaysia, India, Turkey, Venezuela and Bulgaria.

y Sold in over 70 countries (through licensing arrangements).

y In the UK, Kit Kat is the number one brand both as a confectioneryitem and as a biscuit. In both the US and Canada, the Kit Kat is also

extremely popular and is one of the top ten candy bar brands.y In recent years, Kit Kats have also become very popular in Japan, a

phenomenon attributed to the coincidental similarity between thebar's name and the Japanese phrase kitto katsu, which roughlytranslates to "You will surely win!"


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Strategies to keep the brand aliveStrategies to keep the brand alive

y Kit Kat has in recent years seen a variety of different flavorsemerge.

y Nestl created a music label in 2005 and bundled Kit Kats with CDs

which has propelled the Kit Kat to become the #1 selling biscuit inJapan.

y Various SKUs

yKit Kat Chunky


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CurrentCurrent MARKET SITUATIONMARKET SITUATION

y The popularity of low carb diets and the push to healthier eating stifledsales growth in many parts of the world have influenced the growth ofthe brand.

y .

y Fierce competition from Cadbury's Dairy Milk super brand alsocontributed to sales of the Kit Kat decreasing considerably in its homemarket of the UK and threatened to depose it from its #1 position.

y In late 2005 Chris White, the managing director of Nestl Row treeabruptly left his job amid controversy.

y

Also, in September 2006 Nestl announced they were eliminating 25%of their workforce in York and moving production of Smarty's toGermany. One of the reasons given for the cuts and moves was so thatthe York factory could be modernized for Kit Kat production tocontinue.

y However, Kit Kat going strong and looking into the future.


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Presence inPakistanPresence inPakistan

Nestl Pakistan Ltd is a subsidiary of

Nestl SA, headquartered in Vevey,

Switzerland

All Nestl Pakistan sites, including the

head office, factories, distribution

centers and zonal sales offices,migrated to SAP, a state-of-the-art

information technology system.---theGLOBE initiative.

A vast network of dealers and

distributorsthe cold chain.

Two state-of-the-art multipurpose

factories are located in the agriculturalheartland of the Punjab, and the

remaining three are dedicated to

producing bottled water.

Completion from local brands such as

Candy land, Hilal and Cadbury

Pakistan.


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Revitalization of WellRevitalization of Well--Established BrandEstablished Brand

y A strong, mature brand isnt astatic asset.

y Challenges:

y

Consumers demand change: Tokeep up with the times andkeep pace with changing

consumer needs

y Competitors: rival firms areconstantly re-inventing

themselves and their productsy Innovations. keep an

organization flexible and able to

respond to further change


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RevitalizingRevitalizing KIT KATKIT KAT

y 1999 was a watershed year for Kit Kat as it dropped to its lowest

share ranking in decades, at #8 in the highly competitive

confectionery category.

y Competitive Offerings:

y Hershey's and Cadbury.

y Challenge: involved taking decisions around their flagship product:

y The Kit Kat 4 finger chocolate bar.

y Core Market:

y 25-40 Years Olds.

y Kit Kat Chunky.


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ProjectProject TYSONTYSON

y Project Tyson

y Kit Kat Chunky

y Built on the youngster's pursuit of novelty

y Market Researchy Interviews

y FocusGroup discussions

y Provided cues regarding the candy bar style, flavors and the packaging


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Why Target TheWhy Target The 1212--2020Year oldsYear olds

y The regular 4 finger Kit Kat was not relevant to their lifestyles

y It was lacking in excitement and interest

y

Research helped Nestle package the product to attract them morey It also helped choose the most favored packaging for the Kit Kat

Chunky

y 1 finger Kit Kat Chunky was least likely to cannibalize the regular 4finger Kit Kat


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Objectives for the LaunchObjectives for the Launch

y A wise company will seek to justify its every new venture in strictbusiness terms.

y Set tough performance targets;yProduction targets,

y cost estimates, and;

y revenue projections.


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NESTLENESTLE ObjectivesObjectives

y Achieve 90% distribution in allsectors of the confectionarymarket within first four weeksafter the launch.

y Sell 50 million units in the year ofthe launch.

y Increase sales in subsequent years.

y Broaden the number of occasionson which people consume Kit Kat,with the vision that Kit Kat wouldbe the natural choice for all breaks.

y Increase Kit Kats marketpenetration by enticing newconsumers to the brand and bypersuading lapsed users to return

to the product, with particularemphasis on 12-20 years oldsegment.

y Create real innovation in the coremarket

Quantitative Objectives Qualitative Objectives


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What Kit Kat did What Kit Kat did

y Kit Kat Chunky advertising had little to no impact on Kit KatOriginal sales because:

y The big eat message is not relevant to the controlled eat consumer.

y it was in teen language.

y the media plan was teen directed.

y Even though they are to be advertised individually, find a common

Have A Break platform for Chunky and Original.


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MEDIAMEDIA LaunchLaunch

y Chunky was supported by two dedicated television advertscomplemented by a phone site campaign.

y Ran the Ad during the Super Bowl, and continued on teen-richprogramming for 15 weeks.

y The advertising was a big departure from previous campaigns inthat it focused on the targeted age group.

y It concentrated on 17-18 year olds in order to capitalize onaspiration identification from the younger groups, withoutalienating older consumers.

y In addition, Nestl invested in a range ofpublic relations activitiesthrough radio and the national press.

y A detailed point-of-sale campaign supported the launch withattractive dump-bins in stores, and posters for shop windows.

y Field sales staff was involved in a detailed communication exerciseto raise awareness in all forms of distribution channels.


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LaunchLaunch ROAD SIDEROAD SIDE

Billboards

Posters

Kit Kat rotated four outdoorbillboards where teens hang

outfor 17 weeks in 17 Englishand 6 French Markets.


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OthersOthers

The campaign, created byagencies RMG Connect and JWT,aims to put content in as manydigital channels as possible,including MySpace andFacebook profiles, YouTube,

blogs, online and mobilebanners, search advertising and amobile website, to allow peopleto discover and share it

Social Networking Website Word of Mouth

Teenagers are spending onaverage 13 hours a week onlineplaying games, so designing anew game for them really getsinto their world

Shock and Awe

waqas mtrl kitkat

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