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poweroint kit kat final (1)
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- 2. INDEX: • Introduction • Badreputation • 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
- 3. Introduced in August29 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.
- 4. Kit Kat, nowowned 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.
- 5. KIT KAT GREENPEACE • 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 ?”
- 6. 1. How doesKit 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.
- 7. In the firstcase, 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
- 8. 3. Special editionchocolate Ritter'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
- 9. Questionnaire: Questionnaire: for theconsumers: 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?
- 10. 4. How canit 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.
- 11. To extend itsmarket 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.
- 12. 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
- 13. Stars High Market Shareand 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
- 14. 6. Discuss theadvantages 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.
- 15. • 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.
- 16. • 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.
- 17. 7. The intangibleassets 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
- 18. Question 9: product life-cycle Theperiod 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
- 19. marketing strategy An organization'sstrategy 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.
- 20. imperfectly competitive markets Atype 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
- 21. Our NEW Product!! KITKAT BOTTLE
- 22. WITH A FRIEND1 Angle (profile) 2 Angle (front) Open/close The case KitKat Balls Case HANDLE Plastic Teat Screw Cap Open/Close Plastic Teat Open/Close Screw Cap Turn the bottle for have your Kit Kat KitKat Case The product we invented Outside
- 23. Kits kats Kit kat balls Hermeticsysthem to separate KitKats and berverage Opening for kitKat balls Turn to put out one KitKat Handle for kit kat Tank for Berverage The product we invented Inside
- 24. The product weinvented How 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
- 25. The product weinvented How 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.
- 26. The product weinvented 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
- 27. The product weinvented Advantage WITH A FRIEND Client: USEFUL FASHION COLLECTOR Nestle : Good comercial gift
- 28. Product Placement We havechosen 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.
- 29. Promotion • The productthat 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
- 30. Target We think thatour 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.
- 31. Competitors: We haven’t foundany 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.
- 32. Valor’s main productis 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.
- 33. Product We have chosento 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.
- 34. Price Content -> 2 xKitKat 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.
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- 36. KEY PARTNERS Bigsupermarkets 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
- 37. 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!
- 38. CUSTOMER 1. Wants. Whatare 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.