Marketing Management Project on KitKat Chocolate Bar

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NAME: ABBAS JAWED
CLASS: XII – N
GR. NO: 27578
TOPIC: MARKETING MANAGEMENT
SUBJECT: BUSINESS STUDIES
SCHOOL: IISR
DATE: 12/12/18

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INTERNATIONAL INDIAN SCHOOL RIYADH
Certificate of Merit
This is to certify that
Master Abbas Jawed
Grade: XII – N GR. No. 27578
Has successfully completed the project of Marketing Management for Business Studies as
per the requirement of the CBSE Board Examination for the academic year 2018 – 19.
Teacher in Charge: Mrs. Mary Jose
Signature:
Date: 12/12/18

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ACKNOWLEDGEMENT
I would like to express heartfelt gratitude to my teacher, Mrs. Mary Jose for her valuable
guidance and assistance in reviewing the project, our Headmistress of Section 11 and 12,
Mrs. Mymoona Abbas as well as our principal Mr. S M Shaukat Perwezwho have provided
me the opportunity to do this wonderful project on the topic ‘Marketing Management’.
This assignment has helped me in conducting a lot of research work and gaining insightful
information about the product life cycle.
I would also like to thank my parents and friends who have helped me in finalizing this
project within the limited time frame provided to me.

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MARKETING
Traditionally, marketing refers to the performance of business activities that direct the flow
of goods and services from producers to consumers. Thus, merchandising, selling and
distribution are all parts of a large number of activities undertaken by a firm, collectively
called marketing.
In the modern sense, marketing refers to a social process, whereby people exchange goods
and services for money or for something of value to them.
Marketing is defined as a social process by which individual groups obtain what they need
and want through creating offerings and freely exchanging products and services of value
with others.

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FEATURES OF MARKETING
1. Needs and wants
2. Creating a market offering
3. Customer value and experience
4. Exchange mechanism

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MARKET
Traditionally, it refers to the place where buyers and sellers gather to enter into a transaction
involving exchange of goods and services.
In modern marketing sense, it refers to the set of actual and potential buyers of a product or
service.

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MARKETER
Marketer refers to person who takes more active part in the process of exchange. Usually, it
is the seller who is more active in the exchange process, as he analyses the needs, develops a
product and persuades the buyer to buy the product. But sometimes, it is the buyer who puts
in more efforts in the marketing process. Thus, he may be considered as the marketer then,
example in defence deals, many a times a buyer (country) has to persuade a seller to sell a
product, by convincing the supplier that the products will not be used irresponsibly.

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MARKETING MANAGEMENT
Marketing management refers to planning, organising, directing, and control of the activities
which facilitate exchange of goods and services between producers and consumers of
products and services.
The focus of marketing management is the satisfaction of consumer’s needs and wants.

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PROCESS OF MARKETING MANAGEMENT
Choosing a
target market
To create
demand for a
product & keep
them satisfied
with the
products
Creating,
developing &
communicating
superior values
for the
customer's
satisfaction

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FUNCTIONSOF MARKETING MANAGEMENT
1. Analysing and planning the marketing activities.
2. Implementing marketing plans.
3. Setting control mechanism.

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OBJECTIVES OF MARKETING MANAGEMENT
1. Creation and management of demand.
2. Consumer Satisfaction.
3. Attainment of organisation’s objectives.

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SELLING V/S MARKETING
BASIS
• Scope
• Focus
• Aim
• Start and end
• Emphasis
• Strategies
SELLING
• Limited
• Transferring the title
and ownership of
goods from seller to
the buyer.
• Maximising the
profit by increasing
sales.
• Start after the
production of
products and end
with their sale.
• 'Bending the
customer according
to the product'.
• Promotion and
persuation.
MARKETING
• Wider
• Maximum satisfaction
of customer's needs and
wants.
• Increasing profit by
increasing profit by
satisfying the
consumers.
• Start much before
production of products
and continue even after
their sale.
• 'Developing the product
and other strategies
according to the need of
the customers'.
• Product, promotion,
pricing and physical
distribution.

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MARKETING MANAGEMENT CONCEPTS
1. Production Concept –
Under this concept, the assumption was that profits could be maximised by producing at a
large scale, thereby, minimising the cost of production per unit. The focus was on improving
the efficiency of production and distribution. It was also assumed that consumers would
favour those products which were widely available at affordable prices.
2. Product Concept –
Under this concept, the focus shifted from quantity of production to quality of production.
With an increase in supply of products, customers started looking for superior quality
products. Therefore, the focus of business was on continuous improvement in the quality and
features of the product.
3. Selling Concept –
With increasing competition, product quality and availability could no longer ensure the
survival and growth of business. Therefore, firms began to undertake aggressive selling and
promotional efforts to attract and persuade customers to buy.
Thus, the focus of business firms shifted to pushing up sales through aggressive selling
techniques.
4. Marketing Concept –
This concept emphasises that in the long runs, profits can be maximised by identifying and
satisfying the needs of present and potential customers. Therefore, customer satisfaction
became the focal point of all business decisions.
5. Societal Marketing Concept –
The societal marketing concept is an extension of the marketing concept as customer
satisfaction is supplemented by social welfare. This concept pays attention to social,
ecological and ethical aspects of marketing for dealing with problems like environmental
pollution, deforestation, shortage of resources, population explosion etc.

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MARKETING MIX
Marketing Mix is a combination of 4 elements – product, price, promotion and place.
Marketing Mix refers to the tools or ingredients, which the marketer mixes in order to
interact with a particular market.

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ELEMENTS OF MARKETING MIX
1. Product –
Product means goods or services or ‘anything of value’ which is offered to the market for
sale. It is a mixture of tangible and intangible attributes, which are capable of being
exchanged for a value. It also includes after sales services, handling complaints, credit
services etc. It refers to important decisions related to the product such as quality of product,
design of product, packaging etc.
2. Price –
Price of a productrefers to the amount of money that the customer has to pay in the market to
obtain the product. The marketers have to take a number of decisions regarding price level,
pricing strategy, pricing objectives, discounts etc.
3. Place –
Place or physical distribution covers all the activities required to physically move the goods
from manufacturers to customers. It involves a number of decisions relating to inventory
control, intermediaries, negotiation, storage, warehousing, transportation etc.
4. Promotion –
Promotion refers to the process of informing the customers about the product and then
persuading them to buy it. Most marketing firms use a combination of advertisement, sales
promotion, personal selling and public relations to promote their products.

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PRODUCT – KITKAT
Kit Kat is a chocolate-covered wafer bar confection created by Rowntree's of York, United
Kingdom, and is now produced globally by Nestlé, which acquired Rowntree in 1988, and closed it
in 2006, with the exception of the United States where it is made under license by H.B.
Reese Candy Company, a division of The Hershey Company. The standard bars consist of two or
four pieces composed of three layers of wafer, separated and covered by an outer layer of
chocolate. Each finger can be snapped from the bar separately. There are many different flavours
of Kit Kat, including milk, white, and dark chocolate.

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CLASSIFICATION OF PRODUCTS

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COMPANY PROFILE OF KITKAT
Following its success in the United Kingdom, in the 1940s
Kit Kat was exported to Canada, South Africa, Ireland,
Australia, and New Zealand. In 1958, Donald Gilles, the
executive at JWT Orland, created the iconic advertising
line "Have a Break, Have a Kit Kat". The brand further
expanded in the 1970s when Rowntree created a new
distribution factory in Germany to meet European
demand, and established agreements to distribute the
brand in the US through the Hershey company, and in
Japan through Fujiya.
In June 1988, Swiss company Nestlé acquired Kit Kat
through the purchase of Rowntree's, giving Nestlé global
control over the brand, except in the US, and production
and distribution increased with new facilities in Japan and
additional manufacturing operations set up in
MaCADBURYia, India and China.
The Hershey Company has a licence to produce Kit Kat
bars in the United States which dates from 1970, when
Hershey executed a licensing agreement with Rowntree
which allowed Hershey to retain the Kit Kat licence so
long as Hershey was not sold. Nestlé, which has a
substantial presence in the US, had to honour the
licensing agreement when it bought Rowntree in 1988.
As Kit Kat is one of Hershey's top five brands in the US
market, the Kit Kat licence was a key factor in Hershey's
failed attempt to attract a serious buyer in 2002

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SWOTANALYSIS OF KITKAT
Strengths
1. Strong Nestle brand name
2.Excellent advertising and
visibility
3.Good productdistribution and
availability
Weaknesses Food productshave limited shelf life
Opportunities
1.Untapped rural markets
2.Betterproductpackaging and
preservation
3.Leverage Nestle's successful
brand
Threats 1.Other branded and local chocolate
2.Sweets as sub

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USP OF KITKAT
The USP of KITKAT is –
1. High Quality
2. Great Taste
3. Mess-free experience

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TAGLINE OF KITKAT
"Have a break...Have a Kit Kat!" (Worldwide)
"Gimme a break, Gimme a break,
Break me off a piece of that Kit Kat Bar!"
, "Break time, anytime" (US only)

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COMPETITOR BRANDSOF KITKAT EXISTING IN THE
MARKET
1) Cadbury.
2) Ferrero Rocher
.
3) Hershey's
4) Mars

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CADBURY
Cadbury, formerly Cadbury's and Cadbury Schweppes,
is a British multinational confectionery company wholly
owned by Mondelez International (originally Kraf Foods)
since 2010. It is the second-largest confectionery brand in
the world after Mars.[2]

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USP OF CADBURY
Biggest global brand name in the world of chocolates
TAGLINE OF CADBURY
TASTE LIKE THIS FEEL

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FERREROROCHER
The Ferrero Rocher was introduced in 1982 in Europe.
Shortly after release, production was halted due to a
problem with label printing. Michele Ferrero, the credited
inventor, named the chocolate after a grotto in the Roman
Catholic shrine of Lourdes. Rocher comes from the French
and means rock or boulder

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USP OF FERREROROCHER
Ferrero Rocher is whole roasted hazelnut encased in a thin
wafer shell filled with hazelnut cream and covered in
milk chocolate
TAGLINE OF FERREROROCHER
Share something special
.

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HESRSHEYS
The Hershey Company, (known until April 2005 as
the Hershey Foods Corporation) commonly
called Hershey's, is an American company and one
of the largest chocolate manufacturers in the world. It
also manufactures baked products, such as cookies,
cakes, milk shake, drinks and many more, which
increase its variety of range.Its headquarters are
in Hershey Pennsylvania, which is also home
to Hershey's Chocolate World.

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USP OF HESRSHEYS
Offers more than 100 types of different chocolatesand
chocolatebased products
TAGLINE OF HESRSHEYS
The Great American Chocolate Bar; The Sweetest Taste on Earth

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MARS
Mars is a variety of chocolate bar produced by Mars,
Incorporated. It was first manufactured in 1932 in Slough,
England by Forrest Mars, Sr. The bar was sold in two
different formulations. In its original British version the bar
consists of milk chocolate surrounding caramel and nougat,
developed to resemble the American candy bar known as
the Milky Way, which had been introduced a decade earlier.
Later, an American version of the Mars Bar was produced
which had nougat and toasted almonds covered in milk
chocolate

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USP OF MARS
MARS bar is one of the confectionery industry's greatest success
stories
.
TAGLINE OF MARS
Work, rest and play

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BRANDING
A brand is name, term, sign, symbol, design or some combination of them used to identify
the products and differentiate it from that of its competitors.
Thus, branding is not only done to identify the seller or producer but also to make your
product superior than competitor’s product.
Branding is much more than an iden0tification mark. It is a seller’s promise to deliver quality
and satisfaction of buyer’s expectations. When firms develop good reputation about quality,
then brand helps to enjoy greater control over the customers and to develop brand loyalty.
It is a general term covering various activities, such as giving a brand name to a product,
designing a brand mark and popularising it.

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BRAND
A brand is name, term, sign, symbol, design or some other combination of them for the
identification of a product.
Example – Nike, Reebok, LG etc.

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BRAND NAME
The part of brand which can be spoken is called brand name. In other words, we can say it, it
is the verbal part of a brand.
Example – Maggi, Lux, Ambuja Cement etc.
BRAND MARK
The part of brand which cannot be spoken, but can be recognised is known as brand mark.
Example – Maharaja sign of Air India, red and blue ball of Pepsi, apple sign of Apple Inc etc.

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TRADMARK
The part of brand, which is given legal protection is called trade mark. No other firm can use
the name or sign, for which a company gets a legal protection.
Example – Maruti Suzuki sign on Maruti cars etc.

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FLAVOURS
Many varieties of Kit Kat have existed, either permanently
or as limited editions, such as those sold to
commemorate festivals such as St. Valentine's Day In
Japan, Nestlé has introduced over 200 different flavours
since 2000,including ginger ale, soy sauce, creme
brulee, green tea, sake, and banana. The flavours are
designed to appeal to younger buyers, and are often
bought as good-luck gifts as the brand name echoes the
Japanese phrase "Kitto Katsu", roughly translating as
"surely win
The Kit Kat Orange was the first flavour variant to be
introduced in the United Kingdom, in 1996 and 1998 in
Ireland. It was followed in 1997 by the Kit Kat Dark and
Kit Kat Mint. All three were available as permanent
editions of the two-finger multipack in the United
Kingdom, along with the Kit Kat Original, the Kit Kat
White, and from 2012 the Kit Kat Cookies & Cream.
A wide variety of promotional items exist, ranging from
traditional merchandise (such as mugs, pens, oven
gloves and tea-towels) to less common items such as
coats for small dogs. Recently in Japan,Kit Kats have
come packaged with CD singles, and a special limited
edition double pack of Kit Kat Crispy Monogatari came
bundled with a mini book featuring six short stories, one
of which was written by Koji Suzuki, author of the Ring
cycle series. In Japan, Kit Kats are also available in jars
that are dispensed from vending machines.

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PERMISSIONS AND LICENCESREQUIRED TO
MANUFACTURE THE PRODUCT
1. Food Safety License FSSAI – Having this license in the restaurant, identifies your
restaurant as one that meets the standards and guidelines under FSS act. Which means you
are providing food safety and nutrition with your serving. This license is mandatory.
2. Trade License – You must take this license from municipal Corporation or health
department of the state. This license provides you permission to trade the food products.
Situations of food delivery is a common example.
3. Environment Clearance – This one is acquired from State Pollution Control
Committee, this one is mandatory too. This is more like guaranteeing the government that
you are not doing anything that violates pollution norms.
4. NOC from Fire Department – You need to acquire this one from fire Department
this is mandatory.
5. Weights and Measures – This one is acquired from legal Metrology Department, this
one establishes standards of weights and measures, to regulate trade or commerce in
weights, measures and other goods which are sold or distributed by weight, measure or
number.
6. Lift License Concerned authority – This one can be acquired from Electrical
Inspector, Office of the Labour Commissioner, this one is mandatory If lift is to be
installed.
7. Employees State Insurance – You can get this one from Labour Commissioner
which is again mandatory. Employee’s State Insurance (ESI) is a social security and health
insurance for the employees of a firm. During his course of work, he along with his
employer contributes towards ESI which provides him with security by protecting the
employee during sickness, accidents, injury or disability.
8. Insurance – Insurance for Public Liability, Product Liability, Fire Policy Building &
Asset can be acquired from Any insurance company and yes this is again mandatory.
9. Shop and Establishment Registration – You need to do this registration with the
state government in labour department. This is to regulate conditions of work, and to
provide for regulation of the employers and rights of the employees in un-organized sector
of employment and other establishments.

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LABELLING
The term ‘labelling’ means designing a label to be put on the package. A label may be small
slip attached or placed to the product(example – on unbranded products like sugar,
namkeens etc.) to complex graphics that are part of package (example – Clinic Plus
shampoo, Aashirwad Atta etc.) which denotes its nature, contents ownership, destination etc.
A label describes the product, its usage and specifies its contents.
It is a medium through which the manufacturer gives necessary information to the user or
consumer. A label pCADBURY an important role in making the packaging and branding
meaningful.
FUNCTIONSOF LABELLING
1. Describe the Product and Specify its Contents
2. Identification of the Product or Brand
3. Grading of Products
4. Helps in Promotion of Products

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FRONTSIDE OF THE KITKAT LABEL

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BACK SIDE OF THE KITKAT LABEL

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REASON WHY TAGLINES ARE USED FOR
PRODUCTS
1. Tells the Key Benefits
2. Brand Differentiation
3. Brand Recognition
4. Competitors Can’t Use
5. Strategic Importance

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REASON WHY LOGOS ARE USED FOR PRODUCTS
1. Grabs Attention
2. Makes a Strong First Impression
3. It’s the Foundation of Your Brand Identity
4. Visual = Memorable
5. Separates You from Competition
6. Fosters Brand Loyalty

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SOCIAL MESSAGE OF KITKAT
The social message of KITKAT is ‘Keep your city clean’.
KITKAT drafts a social message of contributing 10% of their profits to the poorpeople.

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PRICE
Pricing refers to the process ofdetermining the price of a product. Price of a productrefers to
the amount of money that the customer has to pay to obtain a product from the market.
Pricing is considered as a regulator of demand of a product, because, when the price of the
product is increased, demand falls and vice–versa.
Under perfect competition, most firms compete with each other on the basis of this factor.
Therefore, firms give great importance to the fixation of price for their goods and services.

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FACTORS CONSIDERED FOR SETTING SELLING
PRICE
1. Product cost
2. The utility and demand
3. Extent of competition in the market
4. Government and legal regulations
5. Pricing objectives
6. Marketing methods used

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KITKAT PACKAGING
KIT KAT 4 Fingers are packaged in a wrapper made from
a form of plastic (polypropylene) used in the packaging of
many food products.
Materials are selected for product safety, quality and
convenience, as well as to guard against food waste. We
are committed to optimising the volume and weight of
our packaging, while using recycled materials where
possible

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PACKAGING
Packaging refers to the act of designing and producing the container or wrapper of a product.
Various kinds of goods are placed or packed into appropriate containers for protection and
convenient handling.
Thus, packaging implies placing products in suitable packages for delivery of the product to
customer or for the purpose of storage and transport. Packaging is not limited to facilitating
use and protection of the product, but also helps in product identification and promotion of
the product.

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LEVELS OF PACKAGING
1. Primary Packaging –
It means the immediate container of a product. It may be kept till the customer is ready to use
the product.
Example – Plastic package for socks, toothpaste tube or bottle of perfume.
It provides protection and facilitates the use of the product.
2. Secondary Packaging –
It means additional layer of protection.
Example – A toothpaste tube is packed in a cardboard box. When the consumer begins to use
the product, the box is disposed off.
3. Transportation Packaging –
It means packaging done to protect the product and help in the process of transportation and
storage.
Example – Toothpaste boxes are sent to retailers in corrugated boxes each containing 50 or
100 units.

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GRADING
Grading means sorting of unlike lots of products into different lots according to quality
specification laid down. Each lot has substantially the same characteristic as far as quality is
concerned. Grading is an important function of standardisation. It implies the division of
products into classes made up of units possessing similar characteristics of size and quality.
Grading is mostly done in case of raw materials, mineral products and agricultural products.
There is no grading for industrial products as they are produced according pre-determined
standards. There may be difference in equality, size, shape or characteristics of the products.
The graded standards for commodities are laid down first and then the commodities are
sorted out according to accepted standards. Grading helps the producer to get proper prices
for these products because different price may be fixed for different lots.
Grading is categorizing the products into different lots, each containing similar
characteristics.

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STANDARDISATION
Standardization is the process of fixing certain norms for the product. These norms are
established by customs or tradition or by certain authority. It involves determination of basic
characteristic of a product on the basis of which the product can be divided into various
groups. It also means determining the standard of product to be produced with regard to size,
colour, form, weight, shape and quality. Standards are model products which form the basis
of comparison.
Without standardization, there may be confusion and unfairness. The term standardization is
used in a broader sense. Standardization means making the quality specification of the grade
uniform among buyers and sellers over space and time.
According to National Commission on Agriculture, standardization is defined as, “the
determination of basic limits or grades in the form of specification to which manufactured
goods must conform and the extra active industries may be sorted is known as
standardization.”

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CHANNELS OF DISTRIBUTION
Channels of distribution are set of individuals and firms that take title or assist in transferring
title, of particulars goods and services as they move from producers to consumers. It refers to
team of merchants, agents and business institutions that combine physical movement and
title movement of products. A large number of middlemen not only result in economy of
effort, but also helps to cover a large geographical area and bring efficiency in distribution,
including transportation, storage and negotiation.

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FUNCTIONS OF CHANNELS OF DISTRIBUTION

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TYPES OF CHANNELS OF DISTRIBUTION
1. Direct Channel (Zero Level Channel) –
The simplest mode of distribution is direct distribution, where the goods are directly made
available to consumers from the manufacturers, without use of any intermediary.
For example, Bata selling through its retail outlets, similarly, mail order selling, internet
selling and selling through its own sales force (Amway) are examples of direct selling.

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2. Indirect Channels –
When 1 or more intermediaries are involved in the distribution network, then it is referred to
as indirect channels. The various indirect channels are –
a. One Level Channel –
In this method, an intermediary is used. Here, manufacturer sells the goods directly to the
retailer instead of selling it to agents or wholesalers. This method is used for expensive
products. This method is also useful for selling Fast Moving Consumer Goods (FMCG).
Example – Maruti Udyog sells its cars through company approved retailers.

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b.Two Level Channel –
In this method, manufacturersells the material to the wholesaler, wholesaler to the retailer
and then retailer to the consumer. Here, wholesaler after purchasing material in large quantity
from the manufacturer, sells in small quantity to the retailer.
Then retailers make the products available to consumers. This medium is mainly used to sell
consumer non-durable goods like soap, tea, salt, sugar, ghee etc.

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c.Three Level Channel –
In this case, manufacturers use their own agents or brokers who connect them to wholesalers
and then to the retailer. This is done when the line of product is limited and wide coverage is
required.

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PHYSICAL DISTRIBUTION
The physical handling and movement of goods from place of production to the place of
distribution is called physical distribution. It covers all the activities required to physically
move the goods from the manufacturers to the customers.

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WAREHOUSING
It refers to the act of storing and assorting products in order to create ‘time utility’. It helps in
properplacement of goods and providing facilities to store them, so that they can be made
available as and when demanded by the market.

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IMPORTANCEOF WAREHOUSING

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TRANSPORTATION
It means carrying raw materials and finished goods from one place to another. It helps in
creating ‘place utility’, by making available the goods where they are required.

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PROMOTION
Promotion refers to the use of communication with the twin objectives of informing potential
customers about a productand persuading them to buy it. In the absence of communication,
consumers will not be able to know about the productand would not be convinced about the
utility of the product.

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WAYS OF PROMOTION
1. Advertising –
It includes activities concerned with providing productinformation to customers through
newspapers, radio, television, and other media. It is a non-personal form of communication.

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2. Personal Selling –
It refers to the face-to-face communication between a seller or his representative and the
buyer. Sales persons of an enterprise assist and persuade the prospective buyers to buy the
product.

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3. Sales Promotion –
It means increasing immediate sales through short-term incentives such as samples, special
discount, offers, prize contests, couponsetc. These are aimed at supporting advertising and
personal selling and are of non-recurring nature.

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4. Public Relations –
It involves a variety of programmes designed to promote or protect a company’s image and
individual products in the eyes of the public.

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BRAND AMBASSADOR OF KITKAT
Dangal girls new brand ambassador of KitKat. New Delhi, Sep 3
(UNI) Fatima Sana Shaikh and Sanya Malhotra, who were last seen in
the blockbuster film 'Dangal', have been signed as the brand ambassadors
for a famous chocolate brand 'Kitkat'ambassadors for a famous
.

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CONCLUSION
I found my marketing project very interesting during my survey. I found that KITKAT
enjoys dominant market share for its product. Their stringent quality control ensuring
consistent quality has earned them goodwill and trust over so many years. Their innovation
in packaging, marketing and productpromotion has steered them ahead of competitors.
After doing the project, I understood the importance of marketing as an important element of
management.

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TEACHER’S OBSERVATION

Marketing Management Project on KitKat Chocolate Bar

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