Presented By: Muhammad Saadullah Khan Muhammad Bilal Ahmad Muhammad Akbar Iqbal Muhammad Imran Nauman Khan

Yasir Shafi

KIT KAT Introduction

Kit Kat, the worlds most renowned confection, was first created by

Rowntree Limited of York, England, and now produced worldwide by Nestl, which acquired Rowntree in 1988.
The original four-finger version bar was developed after a worker at

the Rowntree's factory in York put a suggestion in the suggestion box for a snack that a 'man could have in his lunch box for work'. It was launched in September 1935 in the UK as Rowntree's Chocolate Crisp.
It was named Kit Kat after World War II. The name is believed to

have come from the Kit-Cat Club, a seventeenth century political club for artists.

GLOBAL Overview
The Kit Kat has been manufactured by Nestl for Canada,

Germany, Japan, and Australia. Kit Kat bars available in the United States are manufactured under licence by The Hershey Company, a Nestl competitor, due to a prior licensing agreement with Rowntree. Kit Kat bars are manufactured in 15 countries: UK, USA, Canada, Australia, New Zealand, Algeria, South Africa, Germany, Japan, China, Malaysia, India, Turkey, Venezuela and Bulgaria. Sold in over 70 countries (through licensing arrangements). In the UK, Kit Kat is the number one brand both as a confectionery item and as a biscuit. In both the US and Canada, the Kit Kat is also extremely popular and is one of the top ten candy bar brands. In recent years, Kit Kats have also become very popular in Japan, a phenomenon attributed to the coincidental similarity between the bar's name and the Japanese phrase kitto katsu, which roughly translates to "You will surely win!"

Strategies to keep the brand alive

Kit Kat has in recent years seen a variety of different flavours

emerge.
Nestl created a music label in 2005 and bundled Kit Kats with CDs

which has propelled the Kit Kat to become the #1 selling biscuit in Japan.
Various SKUs Kit Kat Chunky

Current MARKET SITUATION

The popularity of low carb diets and the push to healthier eating stifled

sales growth in many parts of the world have influenced the growth of the brand.

Fierce competition from Cadbury's Dairy Milk superbrand also

contributed to sales of the Kit Kat decreasing considerably in its home market of the UK and threatened to depose it from its #1 position.
In late 2005 Chris White, the managing director of Nestl Rowntree

abruptly left his job amid controversy.

Also, in September 2006 Nestl announced they were eliminating 25%

of their workforce in York and moving production of Smarties to Germany. One of the reasons given for the cuts and moves was so that the York factory could be modernised for Kit Kat production to continue.
However, KIt Kat going strong and looking into the future.

Presence in Pakistan

Nestl Pakistan Ltd is a subsidiary of Nestl SA, headquartered in Vevey, Switzerland All Nestl Pakistan sites, including the head office, factories, distribution centers and zonal sales offices, migrated to SAP, a state-of-the-art information technology system.---the GLOBE initiative. A vast network of dealers and distributorsthe cold chain. Two state-of-the-art multipurpose factories are located in the agricultural heartland of the Punjab, and the remaining three are dedicated to producing bottled water. Completion from local brands such as Candyland, Hilal and Cadbury Pakistan.

Revitalization of Well-Established Brand

A strong, mature brand isnt a

static asset.
Challenges: Consumers demand change: To keep up with the times and keep pace with changing consumer needs Competitors: rival firms are constantly re-inventing themselves and their products Innovations. keep an organization flexible and able to respond to further change

Revitalizing KIT KAT

1999 was a watershed year for Kit Kat as it dropped to its lowest

share ranking in decades, at #8 in the highly competitive confectionery category.

Competitive Offerings: Hersheys and Cadbury. Challenge: involved taking decisions around their flagship product: The KitKat 4 finger chocolate bar. Core Market: 25-40 Years Olds.

Kit Kat Chunky.

Project TYSON
Project Tyson
Kit Kat Chunky

Built on the youngster's pursuit of novelty

Market Research
Interviews Focus Group discussions Provided cues regarding the candy bar style, flavors and the packaging

Why Target The 12-20Year olds

The regular 4 finger Kit Kat was not relevant to their lifestyles It was lacking in excitement and interest Research helped Nestle package the product to attract them more It also helped choose the most favored packaging for the Kit Kat

Chunky
1 finger Kit Kat Chunky was least likely to cannibalize the regular 4

finger Kit Kat

Objectives for the Launch

A wise company will seek to justify its every new venture in strict

business terms.
Set tough performance targets;
Production targets, cost estimates, and; revenue projections.

NESTLE Objectives
Quantitative Objectives
Achieve 90% distribution in all

Qualitative Objectives
Broaden the number of occasions

sectors of the confectionary market within first four weeks after the launch.
Sell 50 million units in the year of

on which people consume Kit Kat, with the vision that Kit Kat would be the natural choice for all breaks.
Increase Kit Kats market

the launch.
Increase sales in subsequent years.

penetration by enticing new consumers to the brand and by persuading lapsed users to return to the product, with particular emphasis on 12-20 years old segment.
Create real innovation in the core

market

What Kit Kat did

Kit Kat Chunky advertising had little to no impact on Kit Kat

Original sales because:

The big eat message is not relevant to the controlled eat consumer.

it was in teen language.

the media plan was teen directed.

Even though they are to be advertised individually, find a common

Have A Break platform for Chunky and Original.

MEDIA Launch
ChunKy was supported by two dedicated television adverts

complemented by a phone site campaign. Ran the Ad during the Super Bowl, and continued on teen-rich programming for 15 weeks. The advertising was a big departure from previous campaigns in that it focused on the targeted age group. It concentrated on 17-18 year olds in order to capitalize on aspiration identification from the younger groups, without alienating older consumers. In addition, Nestl invested in a range of public relations activities through radio and the national press. A detailed point-of-sale campaign supported the launch with attractive dump-bins in stores, and posters for shop windows. Field sales staff was involved in a detailed communication exercise to raise awareness in all forms of distribution channels.

Launch ROAD SIDE

Billboards Posters Kit Kat rotated four outdoor billboards where teens hang outfor 17 weeks in 17 English and 6 French Markets.

Others
The campaign, created by

agencies RMG Connect and JWT, aims to put content in as many digital channels as possible, including MySpace and Facebook profiles, YouTube, blogs, online and mobile banners, search advertising and a mobile website, to allow people to discover and share it Social Networking Website Word of Mouth
Teenagers are spending on average 13 hours a week online playing games, so designing a new game for them really gets into their world
Shock and Awe

PAKISTANI Parallel
Telenors Launach of Djiuce and TalkShawk

Telenor Pakistan
Telenor ASA 100% ownership Launched its operations in March 2005 Presence
Network of 23 company-owned sales and service centers; More than 200 franchisees; Some 100,000 retail outlets, and; Subscriber 19.38m.

Product Packages
Prepaid Djuice Talkshawk Postpaid Persona

Telenor Prepaid Target Segment

Success and Issue

Telenor was the fastest growing cellular network in term of new subscriber in 2005-07 Company average growth rate was 213% Industry growth rate was 126%

Low penetration in two segments which were: Man on the Street First Time Subscribers

What did TELENOR do

Dejiuce
Target Segment
Pakistani Youth

TalkShawk
Target SegmentA
Man on the Street

SMS oriented package Djiuce Package consist of

Low cost SMS, Low call rate to Friends and

Voice oriented package

TalkShawk Package consist of

Low calling rates within and

Family, Late night per hour base calling charges to friends and family numbers. While, high calling rates within and outside Telenor networkC

outside Telenor Network High SMS rates No night options

Positioning