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Assignment:

Marketing Planning & Implementation Resource Person: Group Members:


Mr. Khuram Shahzad

Awais Khursheed Umer Mehmood Irfan Sarwar Fatima M.Nawaz Mashal Mehmood Durr-e-Nayab

MBT-FA11-024 MBT-FA11-099 MBT-FA11-063 MBT-FA11-029 MBT-FA11-048 MBT-FA11-027

Submitted On:
April 20, 2012

COMSATS Institute of Information Technology, Lahore Department of Management Science

EXECUTIVE SUMMARY:
This report is about the kit Kat, a chocolate crisp which was initially launched in London and south east in 1935. The market has seen consistent growth during the 5-year review period, and market. Demand for food will always be consistent and, therefore, in times of economic instability the food market generally outperforms other sectors. However, the cost of ingredients for biscuits and cakes has increased dramatically since 2005, with valuable commodities, such as wheat, sugar and cocoa, soaring in price in late 2011and early 2012. Inevitably, these increases have gradually been passed down to the consumer. Kit Kat has a very good reputation among its competitors and has a great success rate. The ingredients of the product are of great quality and packing of the product is also very attractive having its unique identity. The positioning of the brand in the mind of the customer is as its a very delicious chocolaty biscuit rich in nutrients and high in calories. Its very successful brand outside and also inside Pakistan but in Pakistan it is facing the problem of a higher price as compared to its competitors which is basically due to have no manufacturing facility in the home country By installing manufacturing plant in Pakistan it can have a competitive advantage over its competitors in the shape of low price. Increased demand for healthier products has been the most capitalized on trend, with an explosion of healthy-eating products being introduced to the market in recent years and kit Kat can take the advantage in this regard.

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TABLE OF CONTENT:

EXECUTIVE SUMMARY: ......................................................................................................................... 2 TABLE OF CONTENT: .............................................................................................................................. 3 INTRODUCTION: ....................................................................................................................................... 4 PRODUCT ANALYSIS: ............................................................................................................................. 4 Product Life Cycle:- ............................................................................................................................... 4 Core Product .......................................................................................................................................... 4 Product Features............................................................................................................................. 4 Brand Name ..................................................................................................................................... 5 Packaging......................................................................................................................................... 5 Labeling ............................................................................................................................................ 5 Styling ............................................................................................................................................... 5 Quality ............................................................................................................................................... 5 Augmented Product ........................................................................................................................ 6 SEGMENTATION AND POSITIONING STRATEGRY ........................................................................ 6 Market Segment ..................................................................................................................................... 6 Positioning ............................................................................................................................................... 7 Main Competitor ..................................................................................................................................... 7 Market Share........................................................................................................................................... 8 Target Marketing .................................................................................................................................... 8 DISTRIBUTION STRATEGY .................................................................................................................... 8 PROMOTIONAL STRATEGY .................................................................................................................. 8 PRICING STRATEGY ............................................................................................................................... 9 SWOT ANALYSIS ...................................................................................................................................... 9 IMPROVEMENTS: ................................................................................................................................... 10 CONCLUSION: ......................................................................................................................................... 10 REFERENCES: ........................................................................................................................................ 11

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INTRODUCTION:
Kit Kat was developed as a four finger wafer crisp initially launched in London and south east in September 1935 as Row trees chocolate crisp. It was renamed 2 year later as Kit Kat chocolate crisp. It became Kit Kat after World War 2. Kit Kat was portrayed as a valuable was time food and the brand is advertised as what active people need.

PRODUCT ANALYSIS: Product Life Cycle: Growth stage-2005-present


Within weeks of taking over responsibilities by Mr. Grim wood axed out most of the flavors Kit Kat leaving only flavors like tiramisu and caramel. He later came up with a m marketing plan to spend over $24 million in 2007 which was triple the amount spent in 2005, to bring back Kit Kat brand. He also brought back the Have a break have a Kit KAT Slogan in all advertisements. Still lacking in alternatives Mr. Grim wood launched the Kit Kat chunky Peanut Butter. Company the sales from the year 2000, the sales of Kit Kats sale came up by 12 per cent.

Core Product:Our core product is chocolate.

Product Features: Product type: Type: Color: Additional Ingredient: Form: Shape: Certification: Chocolate Milk Chocolate Brown Biscuit Solid Bar ISO

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Brand Name: Nestle is the brand name of Kit Kat.

Packaging: There are three main steps of Kit Kat packaging: Aluminum foil cover (to prevent it from moisture, air, heat) Thick paper cover (to prevent heat absorption) Thin paper (for product logo & company name Precaution it also contains wheat/gluten which is allergic. Kit Kat of white color & wrapper of red

Labeling:Calories Fat Saturated Fat Carbohydrates Cholesterol Protein Dietary Fiber 210 11 g 7g 28 g 5 mg 3g 1g

Styling: Its a 4 finger chocolate wafer bar.

Quality: The quality of kit Kat is known all over the world, because they use high quality natural
COCOA, natural milk, butter cocoa, unsweetened cocoa & natural flavors.
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Augmented Product:Quality or pure coca is Kit Kat augmented product

SEGMENTATION AND POSITIONING STRATEGRY: Market Segment; Segmentation:


Nestle segmented the market for kit Kat in the market following ways:

Geographical:
Kit Kat caters the high urban needs by making products available that too with the help of which the rural crowd can be kept attracted. Rural needs are also kept in mind and there is nothing even required for kit Kat to make an effort to attract rural crowd because of the price. Kit Kat to make an effort to attract rural crowd because of the price is very reasonable that attracts rural crowd and gives them proper quantity of chocolate as well.

Demographic:
Kit Kat also segmented the market for children, adults and aged people. Kit Kat is a type of a chocolate that is a type of a chocolate that is light and be consumed by every age group.

Income groups:
Most of customer is of middle class or upper middle class. Butt income groups have never been a concern for kit Kat , as mentioned earlier the prices of kit Kat have been stable for decades and the prices are such a that any income group can afford it.

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Targeting:
Kit Kat has implemented a strategy of offering itself to its segments in the market. The following are the target customers of kit Kat.

Women and children


Women and children are the two targets that every chocolate company values most. They are those to segments of the crowd that are highly into chocolates for women chocolates can be given as a gift for example the new kit Kat senses 8 finger box which is usually mean t for gifting it to someone, whereas for kinds chocolates are just another reason to avoid boring home food.

Rural population:
Kit Kat has price stability and has a minor change in its price, it can still target the rural crowd by making them aware that compared to their competitors Cadbury their product is cheaper and much affordable.

Positioning:
BRAND POSITIONING HAVE A BREAK HAVE A KIT KAT A good refreshing chocolate snack The Customerization of the brand To increase width of consumption by entering the Customers mind-space Make KIT KAT part of customs and mores For Infrequent users Position KIT KAT as the snacks meant for everyone Creative Idea You dont need any special reason to eat KIT KAT

Main Competitor:
Who Are The Main Competitors : Kit Kat is a brand that has been in the market from the past 75 years, but still is not a monopoly. It has some serious competition with companies like Cadburys and The Hershey Company. The main competitors of Kit Kat are as follows: Dairy Milk Mars Snickers Perk

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Market Share:
Kit Kats market share is at a hike in UK recently as it completed 75 years which add to the name of the brand and has increased its market share by 4.1 per cent. Comparing this with the market share of Kit Kat in India its good enough as the market share in India is dominated by Cadburys with 70 per cent market share.

Target Marketing:
Kit Kat, Cadbury, Hersheys whatever the company is the main thing is all the companies are targeted children and women in the recent past, but these days chocolates are targeting men, women and children as it something that is meant for both sexes and all age groups.

DISTRIBUTION STRATEGY
Effective distribution : Available at all school, collages and departmental stores Distribution channels: Presence in Pakistan Nestl Pakistan Ltd is a subsidiary of Nestl SA, headquartered in Vesey, 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.---the GLOBE initiative. A vast network of dealers and distributorsthe cold chain

PROMOTIONAL STRATEGY
Well target advertisement which follow the know have a break tradition. TV channels (ARY Music, AAG TV, GEO TV) Radio (92.7fm ,101fm, 103fm) Internet (Facebook , Twitter, Kit Kat official site) Promotional campaign Public relation activates Radio and press Point and sale campaign Paint images at school and collages Bill boards Attractive dump bins Promotion placement Acquiring self space at super store

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PRICING STRATEGY
The degree of flexibility in the pricing strategy is a key advantage if maintaining a strong brand image in market that is competitive. It is a common characteristic of an imperfect competitive market. Looking at kit Kat pricing strategy ,it has been almost stable from a very long, it has always made sure that pricing is not an issue for sales .agreed that there has been some vulnerability in price but not that much leading to the customers also being loyal to the band. Currently price Rs.75 - 4 finger kit Kat bar.

SWOT ANALYSIS Opportunities:


Revitalizing of consumers in the kit Kat live. Target consumers of 12-20 age growth. Innovation product was required to retain the old market share and attract new customers. Young consumers were looking for interest and excitement when they buy a chocolate.

Threats:
Increasing competition in the confectionary market. Kit Kat has almost crossed his maturity stage. Purchase was driven more by habit then attitude. Rival products were constantly making innovations.

Strengths:
Kit Kat was the market leader in confectionary. It was highly popular among 25-40 years old and high brand equity. Well established market research development. As kit Kat been in the market for several decades therefore its brand image was familiars.

Weakness:
Lake of innovation in marketers, they were reactive rather than proactive. Kit Kat was losing its market share although being a market reader. Kit Kat in its traditional form was lacking excitement as compared to competitors

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IMPROVEMENTS: Problem 1:
There is No manufacturing unit in Pakistan. Its Price is relatively high as compared to other brands.

Solution:
By installing manufacturing unit in Pakistan, price will become low. Because Kit Kat is importing from China, So the import duty is imposed on it. By establishing its unit in Pakistan, Different flavours can also be introduced which will capture more potential customer, which will also increase its market share.

Problem 2:
Available only at Super Stores Kit Kat in its traditional form is lacking excitement

Solution:
If Kit Kat can be available at all stores, like Cadburys Dairy Milk, its market share will rise, because Cadburys are using this strategy which has been successful for them. Kit Kat in its traditional form is lacking excitement because there are no flavours.

CONCLUSION:
Kit Kat is very good brand having chocolate, biscuits manufactured by nestle. it is known worldwide to superb quality the market strategy which includes product positioning, packaging, segmentation ,promotional activities etc. By having its manufactured plant in Pakistan and can make it more successful it term of growth and market share in Pakistan.

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REFERENCES:
http://www.scribd.com/doc/23978015/Kit-Kat-Project http://www.kitkat.com/ http://en.wikipedia.org/wiki/Kit_Kat http://www.hersheys.com/kitkat.aspx http://www.slideshare.net/wadekar/kit-kat-presentation http://www.slideshare.net/Charliban/have-a-break-have-a-kitkat-history http://www.nestle.ca/en/products/brands/KitKat/index.htm http://www.nestle.com/Brands/Pages/BrandsDetail.aspx?brandguid=470CB573-F555-4CFE-BBF23A1B05374821

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