Gloria Sadetski

INDEX: • Introduction

• Bad reputation

• Questions

1. How does Kit Kat’s advertising target both the

consumer and the purchaser?

3. Special edition chocolate

4. How can it permit to achieve a more balanced

structure to the business?

5.Ansoff´s Matrix, Boston Matrix

6. Discuss the advantages and disadvantages of

corporate, generic and individual brand names.

7. The intangible assets a firm might own

• Our New Product

• Product placement

• Promotion

• Target

• competitors

• Product

• Price

Introduced in August 29 in 1935 by Rowntree’s as a confectionery

business based in York, United Kingdom…

The name Kit Kat came from the Kit Kat club which was named after

Christopher Catling

The 1950's saw the international expansion of the brand starting in

Commonwealth countries such as Australia, New Zealand, South

Africa, Rhodesia and Canada.

Kit Kat, now owned by Nestlé, is one of the world’s leading chocolate

brands.

Kit Kat's products are chocolate bars which composed of three layers of

waffle and covered with an inner and outer layer of chocolate,

conventionally called “fingers”

The classic line "Have a break, have a Kit Kat" by Donald Gillis from an

advertising agency JWT in London was first launched in 1958 with four TV

commercials and a press campaign

Today, Kit Kat is one of the most globally recognized

chocolate brands. With its perfect balance of delicious

chocolate and crispy wafer, it is the ideal treat.

KIT KAT GREEN PEACE

• Nestlé, maker of Kit Kat, uses palm oil from

companies that are trashing Indonesian rainforests,

• Threatening the livelihoods of local people and

pushing orangutans towards extinction.

Bad reputation

“Would you change your vision towards nestle

because of this ?”

1. How does Kit Kat’s advertising target both the consumer

and the purchaser?

• According to the text, it is quite important to

understand the difference between Brand

marketing strategies and product marketing

strategies

• directly in the final decisions of the consumer, in

this case the children, and the purchaser, the

mothers.

“ a mother trying to feed her son or daughter”

useful to understand the advertising strategies used

for Nestlé and for Kit Kat.

In the first case, any mother around the world wants the

best for her children, so she will look for quality and

healthy products to feed them. On the other hand there

is that child who doesn’t really know what is the best for

him but who is pretty sure about what he likes, so he

won’t take a long time to ask for it to her mother.

that the brand values of quality and good ingredients, as

well as the big size packaging offers that allows to save

some money, will be decisive for the mother to buy the

product

3. Special edition chocolateRitter's sport coffee and Hazelnut ( winter edition)

• releases seasonal variations

• limited edition for Christmas holiday cheer

• Success because of exact dates

• Price: 2.99 $, 50 cents more then normal bars

• chocolate bar: 4x4 grid of sections, each with the Ritter

Sport logo on top

Lay’s Wavy Milk Chocolate Potato Chips

• The new limited edition packages are sold only at Target until

the end of the year.

• The bag is pretty and it was easy to spot on the shelves

• all of the chips were coated with thick milk chocolate on one

side

• Lay’s $3.49 for 5 ounces

Questionnaire:

Questionnaire: for the consumers:

Demographic Questions

Age: What is your age?

Female/male?

Ethnicity origin (or Race): Please specify your ethnicity.

Education: What is the highest degree or level of school you have

completed what is your marital status?

Buying Pattern Questions

Do you ever purchase __________?

If so, who is responsible for the buying decision?

Where do you go when you are looking for __________?

How often do you purchase __________?

How long does it take you to make a buying decision?

What is your typical budget for __________?

Benefits Questions

What features do you look for when you purchase __________?

What benefits do you look for when you purchase __________?

What problems motivate you to purchase __________?

What needs are you trying to meet when you purchase

__________?

Questionnaire for the company to create the

product:

Customers

Who purchases the product or service?

Who are the primary influencers?

Is the purchaser different than the consumer

or user of the product or service?

Company:

Is your product design effective?

What promotions would help push the product?

Is the pricing in line with customers’

willingness to pay?

What is the best product placement option?

What services or sales support should you

offer?

Competitors:

What are your competitors doing in the

market with pricing, product development,

promotions, etc.?

What does this mean for your organization?

4. How can it permit to achieve a more balanced

structure to the business?

• Kit Kat has different business activities.

• It’s important to control the profitability of each business activities of the

company.

Depending on the objectives of Kit Kat and the expectations of shareholders,

the firm have to keep the activities more profitable and with the highest

growth opportunities.

With the same logic, activates which are not profitable or which can’t grow

any more have to be eliminated to preserver the company.

To extend its market and to increase its turnover, there are two

solutions:

1) Create a new business activity (with a new idea, a new product)

2) Buy a company which is already in the market. (a solution for huge groups

who can invest a lot)

This second solution need more investment but is safer than

creating a new activity because we already know if this

product or concept is working.

Acquisition and divestment are essentials for a balanced

structure in a company. A huge company like Nestle

which have a lot of business activities in a competitive

context can’t never divest ore invest because its growth

depend of the profitability of its business.

Market Penetration

- Advertisment

- New selling zone

- Sponsorship

- Daily life product

(facebbok)

Product development

- New product (co-

branding)

- Services development

- Increase quality product

Diversification

- New product with new

caracteritics

Market development

- Exportation

- New competences

- New segments

- New caracteristics

5.Ansoff´s Matrix

Stars

High Market Share and

High Market Grow

Dog

Low Market Share and

Low Market Grow

- Kit Kat Single

Cow

Hight Market Share and

Low Market Grow

- Kit Kat Classic

- Kit Kat mini

- Kit Kat ball

Question Market

Low Market Share and

High Market Grow

- Kit Kat Chunky

Boston Matrix

6. Discuss the advantages and disadvantages of

corporate, generic and individual brand names.

• Corporate brand names: also known as umbrella branding or family brand, is a brand

strategy used by big companies to create different product lines grouping them under a

unique brand name.

positive point :important savings it can generate in marketing, because satisfied customers

with one product line, will trust on the same brand to buy any other product, even if it’s not

from the same category.

The weakness : is the risk to damage the whole brand name image after a failure in the

advertisement of just one product, because the consumer will associate the bad product to

the main brand name.

• Generic brand : we use them everyday to ask for products such as Kleenex, Chupa-Chups or

Aspirin. Most of the companies have wish to be the top of mind brand of their product, but it’s

not as good as it looks at first sight. The advantage of generic brands it’s quite obvious in the

marketing and advertisement area because the need of showing the name of the product

disappears drastically once the consumers use your brand name to ask for the product.

Reduces the ability of the brand to develop innovations for the product and allows the

competitors to launch similar products to gain ground in the product area.

• Individual branding: is the strategy used by Nestlé for Kit Kat. Nestlé gives to a

product a unique brand name to operate by its own, apart from the main brand

name. The good point of this strategy is that all the products branded as individual

own their specific characteristics and identity, which makes much easier the market

positioning process.

the high budget needed to keep those individual brands competitive, shows

the negative side of this branding strategy.

7. The intangible assets a firm

might own

INTANGIBL

E ASSETS

Natural

asset

Technologi

c asset

Informatio

n systeme

asset

Shareholde

r

Asset

Brand

asset

Organization

al asset

Provider

/partner

asset

Human

asset

Societal

asset

Client

asset - Clients asset: Knowledge about the clients , fidelity …

- Natural Asset: the ecologic and sustainability use by a firm

- Provider/partner asset : have good relationships with partner

- Societal Asset: CSR ( RSE)

- Shareholder Asset: bring a personal and economic value in a firm

- Technologic Asset: patent , research development…

- Human asset: In a firm your people is your business

- Organizational asset: way how a Company solve problems

- Brand Asset: Brand has a value

- Information system: Companies communication ( inside the

Company)

Why are they important when we are valuing a firm ?

- They don't have a PHYSICAL format but They have an

ECONOMIC value

- They are important in the company development

- They are highly profitable

- They are using every day

Question 9:

product life-cycle

The period of time over which an item is developed,

brought to market and eventually removed from the

market

brand image

The impression in the consumers minds of

a brand's total personality (real and

imaginary qualities and shortcomings). Brand image

is developed over time through advertising

campaigns with a consistent theme

corporate objectives

A well-defined and realistic goal set by a company that

often influences its internal strategic decisions

marketing strategy

An organization's strategy that combines all of

its marketing goals into one comprehensive plan. A good

marketing strategy should be drawn from market research

and focus on the right product mix in order to achieve the

maximum profit potential and sustain the business

control

How can we judge whether we are being successful in

achieving our objectives? How do we measure our

success or failure?

promotion

An action taken by a company's marketing staff with

the intention of encouraging the sale of a good

or service to their target market.

imperfectly competitive markets

A type of market that does not operate under the rigid

rules of perfect competition. Forms of imperfect

competition include monopoly, oligopoly, monopolistic

competition, monopsony and oligopoly.

unique selling points chocolate fingers

l foil and band wrapping, unique in the count lines market

and seen as an important feature which Encourages

involvement and sharing by consumers

l well-known strapline - Have a Break, Have a Kit Kat.

distribution channels

The path through which goods and services travel from

the vendor to the consumer or payments for

those products travel from the consumer to the vendor.

product portfolio.

The collection of different items a company sells. Within

the product portfolio, each item typically makes different

contributions to the company’s bottom line

Our NEW Product!!

KIT KAT BOTTLE

WITH

A FRIEND1

Angle

(profile)

2

Angle

(front)

Open/close

The case

Kit Kat

Balls

Case

HANDLE

Plastic TeatScrew Cap

Open/Close

Plastic Teat

Open/Close

Screw Cap

Turn the

bottle for

have your

Kit Kat

KitKat Case

The product we inventedOutside

Kits kats

Kit kat

balls

Hermetic systhem to

separate KitKats and

berverage

Opening for

kitKat balls

Turn to

put out

one

KitKat

Handle for

kit katTank for Berverage

The product we inventedInside

The product we inventedHow it works

How do you use ?

The Kit Kat is going one when

you turn the bottle at the same

time, than a plastic bar infront

and behind from it, this plastic

bar is used as a elevator to rise

the kit kat. When the plastic bar

is not anymore on the elevatore

the chocolate bar is eject outsid

The product we inventedHow it works

How to fill the

bottle?

Use the second hole

and put inside the

chocolate bars , you

have to put one by

one the chocolate

bars and turn the

bottle until the bar

rises, do it as much

as need but every

turn makes a bar go

up.

The product we invented How it works

WITH

A

FRIEND

WITH

A

FRIEND

Open the bottle

Turn the screw cap

Inside your beverage

Beverag

e

WITH

A

FRIEND

Close the bottle

The product we inventedAdvantage

WITH

A

FRIEND

Client:

USEFUL

FASHION

COLLECTOR

Nestle :

Good comercial gift

Product Placement We have chosen for sell our product:

- Supermarket: this is the most commen place where a family

does there shopping

- Gas station: a Place where a lot families go during holidays,

a break from there drive

- internet : Important place for selling and promoting

- Candy shop: specialized place

- Airport We have chosen these places because of the family, mother or

group of people are often in this place and are looking to eat,

the produced should be put in a visible area.

We think that this package will create a reaction of

compulsive buying of kit Kat products, if is put in the right

place, eye vision height.

Promotion• The product that we have created is the Kit Kat bottle, for

selling this concept we have chosen to create a family pack

and give the bottle as a promotion gift. The family pack

should be really attractive with an innovate design with the

slogan “have a break have a Kit Kat”.

We would like make the promotion of our product 2 times

during 2 months for winter and summer holidays. At this

moment groups of friends, families are going on holidays and

they are more opened to buying these kind of product for

traveling or simply for there children.

Completing our promotion we would like to use the website

and make an advertisement that we will present to you later on

in our presentation

WITH

A

FRIEND

TargetWe think that our product is directly created for people in

groups like families or friend groups. In fact our product is a big

pack so it is thought of being a sharing package.

goal: children, chocolate addict, compulsive buyer or Kit Kat

fans just for have chocolate reserves.

We are not looking for one target but a big social group, this

means that a lot of people could bye this product.

Competitors:

We haven’t found any brand offering a promotional gift or selling any

item in the market at the moment, so we could say we are the only

company promoting this type of product campaign.

In the sweet and chocolate product area there’s a huge variety of

flavours and packaging sizes, so we’ve been focused on the most

similar products to kit Kat, waffle and chocolate products.

We classified the products in different categories according to their main

producer brand,

the most important ones Valor, Mars and Ferrero.

Valor’s main product is Huesitos, sell in two different

packaging sizes: 6 and 12 units of their chocolate covered

waffle. It’s the most similar product to Kit Kat.

Mars is the brand with more different chocolate products,

with Mars, Mars mini, Malteesers and Snickers. Mars has

different packaging sizes for their products, but the most

special product is a mix of a mini version of all the

products said before.

Ferrero, has 2 different products: Kinder delice, in 6 units

pack, and Kinder Bueno, in 3 and 6 units pack.

Product

We have chosen to sell a family KitKat pack including a mix of

different KitKat products: 2 kit kat Balls,

2 Mini KitKat

10 kit kat classic

A big red box with all the kit kat products inside attached to the

promotional gift or sell separately, with a total weight of 1.050

kilogram.

Price

Content

-> 2 x KitKat Balls 100gr 2’50 Euro in

the market

-> 10 x KitKat Classic 3’60 Euro in

the market

-> 2 x Mini KitKat 200gr 3’40 Euros in

the market

The real price of all those products bought separately

would be 9’5 euros, but we’ll reduce it until 8’90 to buy it

as a `` Kilo Kit Kat Pack´´, with a 1’050 kilograms weight.

The offer of this pack with the promotional gift will be

priced in 9’90 euros in the market.

Poster

9;90€

KEY PARTNERS

Big supermarkets

Fuel station

Airport

Train stations

VALUE PROPOSITION

New packaging size with a revolutionary

gadget to take the product anywhere.

KEY ACTIVITIES

Active promotion

Distribution

Sales

KEY RESOURCES

Portable KitKat bottle

Useful everywhere

Easy to use

CUSTOMER RELATIONSHIP

Official Nestlé website

CHANNELS

Souvenir shops

Grocery stores

Big retailers

Airport duty free stores

COST STRUCTURE

Production costs

Promotional costs

Distribution costs

REVENUE STREAMS

Easy and funny way to enjoy you favourite

snack!

CUSTOMER SEGMENTS

Europe and Japan

Families with 3 to 12 years old

children

Young travelers

BUSINESS MODEL CANVAS

VALUE PROPOSITION CANVAS

PRODUCT

1. Benefits. What your product do?

New packaging size with a revolutionary gadget to take the product

anywhere.

2. Experience. What does it feel like to use your product?

It’s a very easy to use and funny gadget that allows the customers enjoy

their favourite kitkat products anywhere and at any time.

3. Features. How does your product work?

Turn the screw cap and open the bottle, pour the beverage inside and

close the screw cap. Now you can drink it from the bottle . Now, to fill it

up with KitKat bars, use the second hole and put inside the chocolate

bars, you have to put them one by one and turning the bottle Rank per

Rank. If you want to try the complete experience, fill up the handle with

KitKat Balls. You already have your favourite drink and chocolate snack!

CUSTOMER

1. Wants. What are the emotional drivers of purchasing?

The need of fun for children and the need of a useful and

practical packaging to bring them something to eat and

drink.

1. Fears. Risks of switching to your product?

The people could not understand at first sight the easy

mechanism or see their practical use.

1. Need. What are the hidden needs?

To promote the sales of the KitKat products in big families,

helping them to sabe some money.