1. KitKat is Nestle's top confectionery brand and was launched in the UK in 1949. The document discusses KitKat's strategic objectives to increase sales across Europe and adopt a penetration strategy to supply markets across the continent. It analyzes the strengths, weaknesses, opportunities, and threats facing the KitKat brand. 2. The document compares KitKat's 2-finger and 4-finger products, which are marketed differently based on target audiences. The 2-finger is targeted at children with buy-one-get-one-free promotions while the 4-finger is aimed at adults and given out as samples. 3. European integration presents barriers to standardizing KitKat's brand and packaging across markets

1. KITKAT : HAVE A BREAK

2. INTRODUCTION
“This KitKat is not
going to be like any
I have eaten
before”, Sonia said
this to David.
KitKat was Nestle’s
top confectionery
brand.
Nestle Rowntree
launched in 1949 as
the name KitKat.
CBCL market is very
large in United
Kingdom.

3. STRATEGIC OBJECTIVES
• Increase sales across European markets.
• To put in capital to supply across Europe Nestle had to adopt a
penetration strategy.
• There are long term aims of the company.

4. BUSINESS STRATEGY
• Company’s strategy is to pursue the company’s objectives rather
than to defend its position against competitors.
• It believes in offering the consumer value for money.

5. Year Kitkat 2 finger
multipack
Penguin
multipacks
Club
multipacks
CBCL
multipack
&mini
1990 91 50 40 449
1991 95 55 39 478
1992 101 58 39 508
1993 110 53 45 530
1994 112 48 47 535
MULTIPACKS MARKET

6. Independent Grocers
covered
Independent CTNs covered
Year Kitkat 2
finger
penguin Kitkat 4
fingers
Mars Bar
1991 50 50 99 99
1992 57 52 99 99
1993 64 64 99 99
1994 65 71 99 99
KITKAT VOLUME DISTRIBUTION

7. 2 Fingers 4 Fingers
Year Singles multipack
s
others singles multipacks other
s
1990 1150 20750 300 15550 3000 0
1991 1200 20800 200 16950 3700 50
1992 1200 21300 100 17150 3250 0
1993 800 21900 0 16300 3300 0
1994 700 23150 100 15850 3750 0
KITKAT SALES BY PACK AND SECTOR

8. 1. WHAT IS THE SITUATION FACING KITKAT: THE STRENGTHS
AND WEAKNESS OF THE BRAND AND THE OPPORTUNITIES
AND THREATS IT FACES?
Strengths
-Variety
-Strong brand portfolio
-Price
-International Brand
Weakness
-Competition
-Unhealthy
-“Annoying”Commercials
Opportunities
-New brand flavors
-Could create a hunger satisfying bar
-Become environmentally Friendly
-Premium chocolate
Threats
-Price of ingredients are rising
-New ideas and strategies by
competitors
-Increased costs in packaging and
distribution.

9. 2. WHY ARE THE KITKAT TWO –FINGER AND FOUR FINGER
MARKETED DIFFERENTLY?
HOW DO THE CUSTOMERS FOR THE KITKAT FOUR FINGER
DIFFER FROM THOSE FOR THE KITKAT TWO FINGER ?
WHAT ARE THE DIFFERENCES IN THE WAY THE COMPANY
ADDRESSES THE TWO TARGET MARKET?
2
FINGERS
CHILDREN
BUY ONE
GET ONE
FREE
4
FINGERS
ADULTS
GIVEN OUT
AS A
SAMPLES

10. 3. WHAT IS THE EFFECT OF EUROPEAN INTEGRATION ON THE
MARKETING OF KITKAT ?
WHAT ARE THE BARRIERS TO THE BRANDS STANDARDIZING
ITS BRAND AND PACKAGING ACROSS EUROPE?
• The comparison of products in an advertisement is legal in UK
but not in Germany and France and Belgium.
Advertisements laws
• Cultures, habits, traditions, mentalitiesCultural differences
• Standardization of pricing through out European nations is not
possible.Income levels

11. AGAIN A QUESTION HERE IS WHETHER NESTLE USE SINGLE
MARKET APPROACH OR DIFFERENT MARKET APPROACH
THROUGH OUT EUROPE?
Different advertising styles may not be followed. Nestle should try to build up
a pan European image of Kitkat produced with other ingredients than in UK.

12. 4. (A) HOW WOULD YOU DESCRIBE THE ORGANISATIONAL
STRUCTURE OF THE COMPANY & ITS MARKETING
DEPARTMENT ?
Matrix organisational structure

13. Organisational Structure
of Nestle in South Africa

14. MARKETING STRATEGY
Value for money
principle
To maintain its
position as UK’s No. 1
confectionary brand
objective

15. Product strategy :
- Single product with 2 variants
Pricing Strategy :
- Maintaining stable price over years

16. • Promotional Strategy :
- Free bars in the multi-bar family pack
- Instant deal with Burger King
- Promotional pack, featuring the
Simpsons

17. Include all age groups
Bridge the gap between a chocolate bar and snacks bar
4. (B) IN WHAT ALTERNATIVE WAYS COULD THE COMPANY
ORGANISE THE MANAGEMENT OF ITS WIDE RANGE OF
CONFECTIONARY?

18. It is recommended to have divisional organisation structure
along with matrix structure
4. (C) WHAT STRUCTURE WOULD YOU RECOMMEND ?

19. Mission Statement : Good Food, Good Life
Vision :To be a leading, competitive, Nutrition, Health andWellness
Company delivering improved shareholder value by being a preferred
corporate citizen, preferred employer, preferred supplier selling
preferred products.
5. BRAND PLAN – WHERE WE SHOULD BE

20. BRAND PLAN – STRATEGY
Establish in the Mind
About Kitkat
• Mind Share
• New News
Drive the Feet To
Action
• DriveAcquisition
• Drive Penetration
Tugs at the heart
to tighten the
Connection
• New Reasons to Love

22. Fight them on their
weakness
Outrun them
Consider ways to
neutralize their
strengths
6. HOW SHOULD KITKAT DEFEND ITSELF AGAINST TIME-OUT’S
ANTICIPATED LAUNCH IN THE REST OF EUROPE ?

23. Little advertising
Tough target market
towards to aim
Well established similar
products
Shadowed by more
popular Cadbury
products
No identified target
market
WEAKNESS ANALYSIS OF TIME-OUT

24. • Kitkat should use its strength to grab the opportunities and eliminate
threats by diminishing its weakness.
• Innovative marketing is the key to hire market share.
• Competitors should not be feared of.
SUMMING UP