Post on 08-Mar-2018
Changing Perspectives In Marketing Planning
Kit Kat’s distinctive and exclusive selling points are applied through the three global
producttactics: the first is the flavor, form, and shapes are of different varieties but are of
limited editions. Secondly, making it widely accessible and finally the well-recognized tagline:
‘Have a Break, Have a Kit Kat’. (Kit-Kat, 2013).The Kit Kat brand was struggling with declining
sales and share loss in a growing category. Considering the last few year period, the Kit Kat
product was losing core target consumer loyalty, purchase frequency, emotional connectivity
and brand relevance in the category.
The change in various areas are as follows:
The production concept: The Kit-Kat Company knows that consumers will prefer
products that are greatly available and with high quality and taste. Managers aiming on
this idea is focusing on achieving increased production efficiency and bulk distribution
maintaining the high quality of the product. This orientation leads the company to
successfully root their main productions in countries like UK, where consumers are more
attracted in obtaining good quality chocolate products than in its cost (Kit kat,2013).
The product concept: This perspective denotes that the consumers are preferring
chocolate products that offers good taste, best nutritional quality and health concepts.
Managers focusing, on this concept aims on producing best nutritional quality product
better than other market products and continuously making efforts in improving them
always(Smith,2012)
The selling concept: If the business and consumers are left alone, there will not be any
selling of the product. The company must therefore carry out an aggressive selling and
promotion effort, it can be achieved through appropriate selling strategy(Branford and
West,2010)
The societal marketing concept: Analyzing the needs and interest of the society, and to
provide the required fraction more effectively and efficiently than
competitors(Smith,2012).
The marketing concept: The targets of a company for a small period of time always
change, and to achieve those targets a well-planned marketing strategy is required
especially the digital marketing. It makes a more effective marketing than competitors
in delivering and communicating customer values(Schmitt,2011)
Task 1.2
Hamel and Prahalad’s ideas about approaching and managing the future
According to Hamel and Prahlad (2010) the developing of an self-determining point of
tomorrow's opportunities and building capabilities that exploit them is the KEY to future
company leadership. It is dangerous to manage and increase the competences in response to
changes in the future. In a competition to achieve cost cutting, quality and productivity, most
executives do not spend their time developing a corporate view of the future because this
exercise demands commitment and high intellectual energy. A core competency effects from a
specific set of skills or production techniques that distribute extra value to the
customer(Smitt,2011). Such competences allow an organization to access a wide variety of
markets. Prahalad and Hamel prove that core competencies lead to the development of core
products. Management must realize that stakeholders to core competences are a benefit which
can be used to incorporate and build the competencies. Competence building is an outcome of
strategic architecture which must be enforced by top management in order to exploit its full
capacity. Executives should develop a view on which core competencies can be built for the
future to rejuvenate the process of new business creation (Hamel and Prahlad,2010).
Task 1.3
Techniques Used for Organizational Auditing & For Analyzing External Factors That Affect
Marketing Planning
SWOT Analysis
A SWOT (strengths, weaknesses, opportunities and threats) analysis looks at internal and
external factors that can affect businesses.
For example, we can use a SWOT analysis to help us decide how to:
Take benefit from a new business opportunity.
Respond to new styles.
Implement new technology.
Pact with changes to the competitors' actions( Bamford and West,2010)
STRENGTH WEAKNESS
OPPORTUNITIES THREAT
SWOT ANALYSIS
SWOT analysis can also be used to address individual issues, such as:
Advertising.
Financial resources.
Staffing issues.
Business image and culture.
Structure of the organization.
Efficiency of operation (Fine,2009)
Porter’s 5 Force Analysis
According to Porter (2008) the following five forces can affect an organization’s behavior in a
competitive market.
1) The competition between remaining sellers in the market.
2) The influence of the customers in the market.
3) The influence of the suppliers on the sellers.
4) The risk of new sellers entering the market.
5) The risk of substitute products becoming available in the market(porter,2008)
The company can gain essential insights by analyzing the nature of these forces which may
enable them to frame an appropriate strategy to be successful in the market (Porter, 2008).
PEST Analysis
PEST analysis is a useful strategic tool for understanding market growth or decline, business
position, potential and direction for operations. To review a strategic direction PEST analysis is
useful in addition to SWOT and Porter’s Five Forces models. PEST is useful when a company
decides to enter its business operations into new markets and new countries. It helps to break
free of unconscious assumptions, and help to effectively adapt to the realities of the new
environment (Reddi , 2013).
Task 1.4
Organizational Audit & External Factors Analysis of Nestles’ Kit Kat product in China
Nestle can use SWOT analysis to analyze the Strengths, Weaknesses,Opportunities and
Threats. Analyzing the strength can be useful to help the company to identify the traits which
help them in achieving the objectives of the company.Whereas analyzing the weaknesses can
be helpful to provide them withinformation concerning attributes which are harmful in
achievingthe objectives.Opportunities are the external factors which can help the business
achieve its objectives.Threats are external factors which could do damage towards the
business.SWOT analysis can be used to identify the current situation of the businessand also
tells, how far or behind it is from its competitors. This would give Nestle to market their Kit-Kat
product effectively in China and also an encouragement to work further towards reaching their
objectives and goal(Kit-kat,2013).
STRENGTHS
Internal Factors
Clarity: Kit Kat’s brand plan is very clear on its values. The organization is very clear
on whom they target and how are they going to reach these target customers(Kit-
Kat,2013)
Commitment: Nestle, even with its large portfolio of brands, is strongly committed
to Kit Kat. Kit Kat is a profitable sector for the organization. Nestle provides
adequate investment.
Responsiveness: Kit Kat is very responsive to market changes. It has constantly
evolved the product while keeping the core essentials in place, introducing new
flavors constantly.
Protection: The brand is moderately protected in terms of ingredients and design
scale. (Kit-Kat,2013)
External Factors
Relevance: Kit Kat has a high level of relevance with its customers. It meets the needs of
chocolate lovers by providing a different type of wafer chocolate with a distinctive taste.
Authenticity:The heritage of Kit Kat is well-known and has clearly defined values. It has
always delivered on the expectations which customers have with Kit Kat.
Differentiation: The brand is clearly differentiated from its competitors.
Consistent: Kit Kat has a highly consistent product and image. The ‘Have a Break, have a
Kit Kat’ is a message which resonates throughout the world.
Understanding: Kit Kat is highly recognized by consumers across the globe about its
qualities and characteristics(Kit-kat,2013)
Weakness
Inability to provide consistent quality in food products.
Weak implementation of CSR(Kit-kat,2013)
Opportunities
Increasing demand for healthier food products in china.
Acquiring startups specializing in producing well-being products.
Establishing new joint ventures(Albert and Zeefer,2012)
Threats
Food contamination.
Trend towards healthy eating.
Growth of private labels.
Rising raw food prices(Smith,2012)
Task 2.1-2.2(Newsletter Format)
BARRIERS TO MARKETING PLANNING
IN UK
UK HEAD
OFFICE
GATWICK
Nestl
e
Malcom Mac Donald 10 barrier to marketing planning
Confusion between tactics and strategy
Isolating the marketing function from operations
Organizational barriers
Lack of in-depth analysis
Confusion between process and output
Confusion between marketing function and marketing
operation
Lack of knowledge and skills
Lack of a systematic approach
Failure to prioritize objectives
Hostile corporate cultures
Contact us:
International
Marketing
Manager
E-Mail:******
The major strategy in
business success is
marketing planning and
the barriers that are
arising on the
implementation of those
plan can be analyzed with
the help of the Malcom
Mac Donald 10 barrier to
marketing planning which
is stated above.
In order to overcome this
condition the executive
board have to re-analyze
the problems that are
faced by Nestle in UK, and
make out the exact
causes.
First of all clarify the
confusion existing
between the process and
output and like that go
through the tactics and
strategies several times
and on recognizing the
problem, it will not be
difficult to overcome that
situation.
Form an emergency
enquiry board and analyze
the problems in depth,
which will give clear idea
about the current crisis in
UK.And finally prioritize
the objectives Nestle will
be on the flourishing
stage in the coming
months in UK.
Task 3
A marketing plan for Kat-Kit
CATEGORY STRATEGY
Target Market Consumers between the ages of 15 and 35.
Offering to customers One free Kat-Kit with every two purchase
Price Strategy Price 3% above the closest competitor in Chines chocolate
market.
Distribution Through all wholesale and retail market stores.
Sales Strategy Expand by 10% for this product line.
Promotion Strategy Develop a new campaign that focuses on the better flavor,
appearance of the productand emphasize higher price.
Marketing Research Conduct customer audit and identify new market
opportunities.
Task 4.1
A memo to the International Marketing Manager, you are responsible for ensuring that the new
product, KatKit, stick to the code of ethics that govern the marketing industry
To,
The International Marketing Director.
From,
The International Marketing Manager.
Date :dd/mm/yy
Subject: The Role of Ethics in Marketing and Marketing Planning.
Dear Mr.Name,
Based on the outline of the Code of Ethics, which is briefly mentioned in this memo, ensure that
the product, Kat-Kit, obeys to the code of ethics that govern the marketing industry.
(Marketing ethics is the area of applied ethics which deals with the moral principles behind the
operation and regulation of marketing)
Strive to be truthful in all situations and at all times by offering products of value that we claim
in our communications and ads of Kat-kit. Confirm that the executive board is doing their
ethical responsibilities to accept the consequences of our marketing decisions and strategies.
Try to serve the needs of Kat-kit customers. Avoid using compulsion with all stakeholders.
Check for false, misleading and deceptive promotion of Kat kit and try to avoid it.
Treat everyone, including Nestles major competitors, as we would wish to be treated. Always
try to keep the ethical value of transparency by trying to create an essence of openness in
marketing operations always. Accept constructive criticism from our customers. Disclose price
list and terms of financing as well as available price deals and adjustments along with Kat-kit. To
this end, we should strive to protect the ecological environment in the execution of marketing
campaigns of Kat-kit. Return to the community through charitable donations (Collins,2009).
Sincerely,
--NAME--
Task 4.2-4.3
The imitation of something is termed as counterfeit. Counterfeit products are fake copies of the
original product. Counterfeit products are usually created with the intent to take advantage of
the higher value of the imitated product. Counterfeit products may have fake company logos
and brands. The consumer who unknowingly purchasing an imitated product will end up
dissatisfied. The firm whose goods are counterfeited will experience decreased revenue from
the same product .And at the same time the counterfeiter, earned with little financial or legal
risk and they achieved that with little marketing effort(Jessica,,2011).
PART B
Merit3 (Speech)
A speech on Piercy’s (2008) concept of “Going to Market”
Good evening ladies and gentleman and on behalf of the opening ceremony of our Nestles new
factory here in Beiging I welcome you all with all my heart….
Being an international marketing manager, I am very proud to stand before you in this great
occasion. Thank you to join us here this evening and I hope that in return….. for us providing
you with Kat-kit chocolate, you’ll take the time now…. to listen to me for ten minutes as I tell
you a little bit about the Piercy’s concept of going to market strategy. Many of you may be
familiar with that concept…actually the term Go-To-Market strategy.. refers to the channels a
company will use to connect with its customers/business and the organizational processes it
develops…such as high tech product development… in order to guide customer interactions
from initial contact through fulfillment(Piercy,2012)
A firm's Go-To-Market strategy is the mechanism by which they propose to deliver their unique
value proposition to their target market. That value proposition is based on the choices the
business has made to focus on and invest in markets and solutions that they believe will
respond positively to the increased attention (Piercy,2012). For understanding the concept and
to for the better grasping you all should keep in mind these questions…A Go-To-Market
strategy usually involves answering 5 key questions…they are…..WHOM will we actively target
within the market?...WHAT will be our product portfolio for target customers?....HOW MUCH
will we charge for our products for different customers?...HOW will we promote our products
to target customers?....WHERE will we promote and sell our products to target customers?...
I once again saying….in order to achieve a better success in this new event..we all should work
as a group and with a harmony…..thanks to all…
Merit 1 (e-mail format)
To: The Operations Manager, Beijing.
Ccc.:
Bcc..:
Subject: To manage the problems associated with implementing the marketing plans in China.
Dear Ms. ########,
Problems are common when implementing marketing plans in a large complex country like
China…let’s face it and solve it. Many marketing plans fail to get implemented in a timely
manner. May be the reimplementation itself can resolve the issues.
Failure to get and uphold the essential commitment to the plan can be a barrier. There is no
uncertainty that commitment is a crucial issue in implementation that is “Executive
commitment”( Smith,2012).
Even with solid commitment, plans can fail. This may be because the key implementation
programs were badly managed. It may be that a senior executive may have a favorite idea in
the plan. It can make the plan to diverge from the main and may implement their own version
of it. So you have to first of all go through the attempted plan and confirm whether that is the
original approved plan or not.
Unexpected external events like exchange rate movements, unexpected moves of other
competing chocolate companies in China, customers altering their purchasing behavior, new
disruptive technologies and unexpected internal events like missed new product development
deadlines or the loss of key staff can make the original plan more difficult or impossible to
implement(Smith,2012)
However, here you need to distinguish between unexpected events and unforeseeable events,
then it will be easier to pass over the barriers.
Sincerely,
--NAME--
(International Marketing Manager)
Address
Cell no: **********
Email:*********@*****
Merit 2 (memo format)
To,
The Operations Manager.
From,
The International Marketing Manager.
Date: dd /mm/year
Subject: To design a product recall policy for the KatKit product.
The principal aim of katkit product recall is to protect the public health by taking away the
products from commerce that have been determined to be insecure to the health of the
public(BRC,2003)
The recall procedure outlines the activities that our company will take to manage the recall of
our product which when determined to be unsafe or subject to regulatory action. The
procedure involves the major recall steps mentioned below.
Step 1. Assigning the roles and responsibilities.
In the recall plan the roles and responsibilities of each individual in the recall committee should
be well mentioned. Authority should be given to the recall coordinator to execute the activities
of the recall. The responsibilities of the recall coordinator include the documentation of all the
actions and decisions of recall in a master recall file(BRC,2003).
Step 2. Evaluation of the Complaint or Condition
Provide the complaint to the appropriate staffs for initial evaluation. Then determine the safety
concerns and then determine the product removal strategy(BRC,2003).
Step 3.Identification of Implicated Products
Identify the quantity of products implicated and the batch(BRC,2003)
Step 4.Notification of Affected Parties
Notification should be done at right time to the appropriate regulatory agencies through recall
notices. If necessary notify it to the consumers(BRC,2003)
Step 5. Removal of Affected Products
This involves the removal, control, and disposition of affected product, recall effectiveness, and
recall termination (Annachino, 2011)
sincerely
Sd/
PART C
Distinction 1
The UK economy is presently improving from the economic chaos arising from the financial
crisis of 2007-2008, and GDP remains 3.3% below its pre-recession peak as of 2013. The UK
economy will continue to grow throughout this year, with GDP growth estimated to pick up in
2014. Quarter-on-quarter economic growth is expected to gather pace gradually. The CBI is
forecasting a growth of 0.3% in the second quarter, 0.4% in the third and 0.4% in the final
quarter of 2013.In 2014, the CBI is expecting growth of 2%, with quarter-on-quarter growth to
range between 0.5% and 0.6 % (CBI, 2013).
Considering the present economic climate in UK, company have to face a very great problems if
Piercy’s(2012)market led strategy is applied. The problems like high investment into customer
care sector in order to satisfy their needs can arise. Another important problem is the high cost
for the application of marketing strategy due to the changes made to the plan in accordance
with the needs of the market. So by changing the approved plan in accordance with the
changes in the market and to satisfy the customers, can severely affect the company’s profit in
such an economic climate(Bramford and West,2010).
Distinction 3
Definition of product failure: A product that does not meet management expectations in the
marketplace.
The main reasons why a product fails: Timing of the product entry into the market. Failure can
occur if the product is ahead of its time and the market for it does not exist also if the product is
out of time. Prohibitively Strong Branding: A strong brand can be a blessing and a curse. Fixing
what is Broken Companies that are already successful sometimes try to improve themselves but
end up worrying off their already loyal consumers. Cross Contamination - Mixing two successful
products into one big failure. It seems counterintuitive that combining two successful products
or companies can somehow bring about disaster, but it happens. Not Making the Right Business
Partners(Bramford and West,2010).
New product development (NPD) is the complete procedure of bringing a new product to
market. There are two analogous routes involved in the NPD process: one involves the idea
generation, product design and detail engineering; the other involves market research and
marketing analysis. In a company’s point of view NPD is the first stage in generating and
commercializing new product within the overall strategic process of product life cycle
management ( Barclay.et.al,2009)
Distinction 2
Nestle Kat-Kit Recall Policy
In the event that a food safety issue arises with our product Nestle will protect public health
by facilitating the efficient, rapid identification and removal of unsafe food from the
distribution chain and, by informing consumers (where necessary) of the presence in the
market of a potentially hazardous food.
Recall Procedure
Recall Flowchart
IDEA GENERATION
IDEA SCREENING
CONCEPT DEVELOPMENT AND TESTING
MARKETING STRATEGY
BUSINESS ANALYSIS
PRODUCT DEVELOPMENT
TEST MARKETING
COMMERCIALISATION
References
1. Albert and Zeefer, 2012, China market report, Zeefer Consulting publishers
2.Annacchino, Marc, 2011, The Pursuit of New Product Development: The Business
Development Process, Butterworth-Heinemann, Publisher
3.Bamford and West. 2010, Strategic Management ,Cengage Learning Publisher
4..Barclay,Dann and Holoroyd,2012,New Product development, Routledge publishers.
Recall initiated by recall
committe
Identify and locate all products
Product remaining under
company control
Product not under company
control
Implement recall strategy
Provide distribution list to appropriate
regulatory agency
Prepare distribution list
Prepare or distribute
Notice of Recall
REMOVE PRODUCTS FROM
COMMERCE
Determine what to do with
the recalled products.
Recall effective Recall not effective Request
termination of
recall
Quarantine
and
disposition
Verify recall effectiveness
5.BRC,2003,Product Recall Guidelines: A Good Practice Guide for Product Recall,The stationary
office publishers.
6.CNN Money, 2011, Nestlé's Brabeck: We have a "huge advantage" over big pharma in
creating medical foods.[online] available at
:www.money.cnn.com/2011/04/01/news/companies/nestle_brabeck accessed on 6th October
2013
7..CNNMoney,2012,Global500[online],availableat,money.cnn.com/magazines/fortune/global50
0/2011/snapshots .
8. CBI, 2013, ” UK economy moving from flat to growth”*online+available at
http://www.cbi.org.uk/media-centre/press-releases/2013/05/uk-economy-moving-from-flat-
to-growth accessed on 8th august 2013.
9.Collins, Denis 2009,Essentials of Business Ethics: Creating an Organization of High Integrity
and Superior Performance, John Wiley & Sons Publisher.
10.Donald, Malcom, 2007, Malcolm McDonald on Marketing Planning: Understanding
Marketing Plans and Strateg ,Kogan Page publishers.
11.Fine,Lawrence, 2009, The SWOT Analysis: Using Your Strength to Overcome Weaknesses,
Using Opportunities to Overcome Threats, Create Space Publisher
12.Hamel and Prahlad,2010, Strategic IntentHarvard business review classics, Harvard Business
Press.
13. Hamel and Prahlad,2002,Competing For The Future, Tata McGraw-Hill Education.
14Jessica ,Yi-Chieh Li, 2011,Fake Stuff: China and the Rise of Counterfeit Goods
Routledge Series for Creative Teaching and Learning in Anthropology ,Taylor & Francis,
Publisher.
15.KitKat, 2013,[online] available at http://www.kitkat.com/about.aspx accessed on 2013
16.Monczka,Robert,2000,New Product Development: Strategies for Supplier Integration,ASQ
Quality Press Publisher,
17.Nestle good food good life, 2012, [online] available at www.nestle.com.
18.Porter, E, Michael, 2008, Competitive Strategy: Techniques for Analyzing Industries and
Competitors, Simon and Schuster publications.
19.Piercy, Nigel,2012, Market-Led Strategic Change,3rd Ed, Routledge publishers.
20 Reddi, 2013, Effective Public Relations and Media Strategy, PHI Learning publishers.
21. Schmitt Bernd, 2011, Experience Marketing: Concepts, Frameworks and Consumer Insights,
Volume 5,Now Publishers.
22.Smith,Brian, 2012,Making Marketing Happen,Routledge Publisher.