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

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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

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