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Nestlé’s corporate objective is to be the and strategy, Nestlé can set marketing
DECLINE
which direction it wishes to head. For world’s largest and best branded food objectives for each of its product lines
example, a company planning to manufacturer, whilst ensuring that the and profit centres. The primary
consolidate its position within a Nestlé name is synonymous with objective for Kit Kat is to maintain its
national market might set very products of the highest quality. In position as the UK’s number one selling
different objectives for the marketing recent years, the company has pursued confectionery brand. In order to
The product life-cycle TIME of its products to a company wishing to a policy of expansion and achieve this, Nestlé has to develop a
Distribution strategy
consistency in its marketing, whilst
allowing for minor changes to maintain 5 Draw up a Boston Matrix and
Ansoff’s Matrix. With reference to
these and using SWOT analysis,
●
●
marketing strategy
control
a modern image. Above all, the brand
the original established brand name. 1958 5.5 old pence Nestlé has developed distribution explain Kit Kat’s marketing strategy.
has enjoyed continuous backing with ● promotion
1962 6 old pence channels which ensure the availability investment in marketing to both the
Special editions are used primarily as
promotional tools. Market research 1973 3.5p of Kit Kat to buy wherever and trade and consumer sectors, enabling it ● imperfectly competitive markets
has shown that consumers prefer whenever the consumer wishes to to compete successfully with both
1983 15p ● unique selling points
special editions to be available for purchase it. Sales of confectionery established and new products.
1993 24p depend heavily on its availability, with Continuous reinforcement of the brand
limited periods only and that consumers ● distribution channels
are likely to purchase the original Kit 1995 25p market research showing that well over message through advertising and
Kat at the same time or shortly after. 1998 27p 60% of all purchases are made on promotions has enabled Kit Kat to ● product portfolio.
impulse. Consequently, Nestlé tries to sustain its popularity over a long period
Marketing tactics - (They are, therefore, a good way of
Promotional strategy supply as many outlets as possible - of time in the face of rapidly changing
injecting new life into the Kit Kat
the marketing mix product life-cycle). Depending on their Nestlé has used a wide range of
both wholesaler and retailer channels. consumer attitudes and tastes and
popularity, some special editions are consumption patterns.
Product strategy promotional tactics with Kit Kat. Point of sale merchandising is also
Promotion offers have included free important when consumers are making
No matter how effective the promotion bars in the multi-bar family packs and instant, snap decisions from a wide
and packaging, a firm will find it very an instant win deal with Burger King in range of products on view. Instantly
difficult to market a product which fails 1996. This promotion, where over 75 recognisable packaging also helps to
to satisfy a consumer need. Kit Kat million free burgers were on offer, tempt customers. Shoe shops, for
owes much of its success to a unique example, have recently been identified
increased sales of Kit Kat by an
dual appeal - as a four-finger chocolate as having potential for confectionery
estimated 30%. In 1998, an on-pack
bar, (known in the confectionery trade sales owing to the large number of
promotion featuring ‘The Simpsons,’
as a countline), sold at corner shops and families that visit them. It is also
newsagents, but also as a two-finger predicted that confectionery, along with
biscuit sold in supermarkets. It is a all foodstuffs, will become available
product that has endured because of its through cable and interactive television,
wide appeal across the age ranges and videophones and the Internet.
to both sexes.
Internationally, Kit Kat is now also
Altering the actual product is manufactured in Canada, Germany,
potentially a very hazardous act for an India, Malaysia, China, Japan,
established brand name as it risks Australia, South Africa and the United http://www.nestle.com
altering the consumer perceptions of States. It is available in more than 100
The Times Newspaper Limited and ©MBA Publishing Ltd 1998.
quality built up over decades. countries throughout the World. Whilst every effort has been made to ensure accuracy of information, neither the publisher
nor the clients can be held responsible for errors of omission or commission.