Promotion & Personal Selling

KitKat Campaign

Android Kitkat

Have a break, Have a Kit Kat.

To : Dr. Walid Mohamed Eid

By : Suzie Saad Fayed

Mob: +0100637701

Introduction

Nestle is the world wide leader of nutrition, health and wellness (measured by revenues). Created in

1866 in Switzerland, the company is today implanted in all the continents and has production sites in

almost every country. Marketing has been relevant aspect of their global strategy as it is based on that

quote : « Think globally, act locally ». Kit Kat is one of their most popular brand and the most

consumed chocolate bar in the world. It has also became a fascinating cultural good in Japan.Indeed

the Kit Kat’ story in Japan can be seen as a « marketing fairy tale »

Brief history of Kitkat – Nestle

it Kat was launched in 1937. Since then, it has consistently been one of the best selling chocolate bars

on the market and has acquired an instantly recognisable brand name and identity. In 1997, British

sales of Kit Kat amounted to some £227 million, which made it easily the most popular confectionery

product on the market. Forty four Kit Kats are consumed every second in the UK!

The UK confectionery market is worth over £5 billion per annum and is highly competitive. It

continues to be dominated by large, well-established names - highlighting the importance to firms of

creating brand identities for their products. Once created, however, a brand name needs constant

maintenance. Kit Kat's ability to remain a brand leader over sixty years is no accident. The long term

maintenance of a brand name requires continuous monitoring and investment. Brand image must be

seen as a dynamic, not a static factor; the same consumer perceptions that create brand loyalty can

also turn against a product that fails to adjust and adapt to changing attitudes.

This case study focuses on Nestlé's Kit Kat and the long term brand name maintenance strategies

which have sustained Kit Kat's position as a market leader for over sixty years.

ending is the collection of attributes that the consumer has come to expect from a product, which will

strongly influence their buying patterns. Branding can be achieved using a company name - it can be

applied generically or, as in the case of Kit Kat, on an individual basis. The brand name promises the

consumer particular benefits, such as quality and value for money, with these expectations being built

up over many years. A brand name is often considered by a company to be its most important

intangible asset. In a market where repeat purchases are the key to profitability, a brand name

becomes paramount to a product's success.

A catchy name and distinctive packaging are vital ingredients in any brand image, but the true

essence of a brand identity lies in the consumer's mind i.e. the perceptions of the product. A company

must be constantly aware of these perceptions and try to preserve and build on them through

advertising and other promotions. Branding enables marketers to build extra value into products and

to differentiate them from their competitors.

The history of Kit Kat emphasises the importance of successfully managed brand names to the

company that owns them. Nestlé was prepared to pay a record price to acquire Rowntree in 1988

because of the prestigious brands in Rowntree's product portfolio. Kit Kat was an important part of

the portfolio. This acquisition prompted the City to look into the possibilities of including a financial

valuation of a brand as an asset on a company's balance sheet.

The Products :

This product was developed as a four-finger wafer crisp, initially launched in London and the South

East in September 1935 as 'Rowntree’s Chocolate Crisp' and re-named two years later as KitKat

Chocolate Crisp. It became KitKat after the Second World War. No one is sure where the name

KitKat came from but it’s thought the famous KitKat Club of the 1920s had some influence.

Within two years of launch, KitKat was established as Rowntree’s leading product, a position that it

has maintained ever since. During the war, KitKat was portrayed as a valuable wartime food and

advertising described the brand as “What active people need”.

KitKat 4 Finger

For most of its life, KitKat has appeared in a red and white wrapper. It did, however, change to a blue

wrapper in 1945, when it was produced with a plain chocolate covering due to shortages of milk after

the war. This blue livery was withdrawn in 1947 when the standard milk chocolate KitKat was

reintroduced.

KitKat was first advertised on TV back in 1957 and had its first colour advert in 1967. Famous

adverts include the ‘Dancing Panda’ in 1987 and the ‘Have a Break’ adverts in the 90’s. KitKat is

produced at the Nestlé Rowntree Factory and in 2004 a massive 39,000 tonnes of KitKat were sold -

that's 107 tonnes a day!

Over the years KitKat 4 Finger has appeared in Orange and Mint variants and in 2004 we released a

Lemon + Yogurt flavour, a Halloween variant, Blood Orange, and Lime flavoured KitKat. A

Caramel variant was launched in 2005 and has proved to be our most successful variant to date.

New KitKat 4 Finger Fine Dark

For the dark chocolate lovers, new KitKat 4 Finger Fine Dark uses the finest Cocoa beans to coat

each bar in an intensely rich bittersweet dark chocolate. KitKat Fine Dark will also feature the new

Foil Fresh packaging. This is a permanent edition to the KitKat range

The 2 Finger KitKat is the top selling biscuit in the UK

2 FINGER RANGE

2 Finger KitKat is the UK's number one biscuit. The 2 Finger KitKat was launched in the 1930s

alongside the 4 Finger variant, and has remained the best-selling biscuit brand ever since. In the

beginning, the 2 Finger KitKat was only produced as a milk variant, but is now available in Milk,

Mint, Orange and since 2004, premium variants of Dark and White chocolate.

In 2005 there were over 800 million 2 Finger KitKats sold in the UK. That's over 2 million EVERY

day!

KitKat Chunky Original and Peanut Butter

KITKAT CHUNKY

KitKat Chunky (The Big Finger) was first launched in 1999 and was that year's biggest success

story. In 2005, we sold 73 million KitKat Chunkys (on average 200,000 each day!).

KitKat Chunky also comes in Minis, Snacksize and a King-Size bar called Big Breaks!

If you laid out a year's production of KitKat Chunky, it would stretch from Land's End to John

O'Groats a total of five and a half times!

KitKat Chunky Peanut Butter - you'd be nuts not to try it!

The giant, single-finger version of KitKat was launched as a milk variant and has seen versions of

Orange and White chocolate.

In 2006, we launched a new Peanut Butter version of KitKat Chunky.

The main competitors

The market leader is Ferrero with 44,8% of market share (in value) thanks to the chocolate bars

category. Ferrero group has set up in France since 1960, and the Kinder brand was launched in 1975.

The main Ferrero confectionery brands are Kinder Chocolate, Kinder Bueno, Kinder Surprise and

Kinder Schoko-bons. France is the third market just after Italia and Germany. In 2011, the Kinder

Bueno brand celebrated its 20 years. For this occasion, Ferrero organized a big promotional operation

in different French hyper and supermarkets.

The second manufacturer is Mars with 28% of market share (in value). The American group is set up

in France since 1951. Mars produces both categories of the chocolate confectionery market:

chocolate bars with the brands Mars, Snickers or Bounty and chocolate balls with M&M’s and

Maltesers. Contrary to the other manufacturers, Mars doesn’t organize seasonal promotion during

Easter or Christmas, but it makes other kind of operations. At the beginning of 2012, Mars launches a

new product “M&M’s Peanuts Noir Intense” and the chocolate bar Mars celebrates its 80 years.

The third historic manufacturer is Nestlé with 14,2% of market share (in value). France is the second

global market just after the USA. Chocolate is the flagship product of the group, with different

brands like Kit Kat, Smarties or Lion. In 2011, Nestlé stretched the Kit Kat ball range, with a new

product “Kit Kat ball chocolate blanc”. Moreover, 2012 is the year where Kit Kat makes its come-

back on TV commercial.

Competitor Analysis:

Kit Kat is owned by Nestlé SA which also owns a range of other product brands, e.g. baby food,

bottled water, cereals, coffee, etc. In 2012, Nestlé’s company share in Singapore’s confectionary

market was 9.4%. This has remained fairly constant since 2009, following a drop from 10.1% in

2007 to 9.6% in 2008. This shows us that introduction of competitor brands, as well as increased in

market share in existing competitor brands such as Ferrero Group since 2009 has led to a drop in

brand share for Nestlé.

This is depicted by the bar chart showing company shares by global brand owner. As can be seen,

overall since 2007, Ferrero Group and Mars Inc.’s brand shares have increased whereas Nestlé SA’s

brand shares have reduced.

Brand Analysis

As can be seen via the brand shares table below, despite the decrease in Nestlé’s company shares in

Singapore’s confectionary market since 2007, the brand share of Kit Kat has increased from 2007,

from 3.2% to 3.7%. However, it still lags behind competitors such as Ferrero Rocher, Ricola,

Fisherman’s Friend and Mentos in the confectionary market. However, through filtering out of

products such as Ricola, Fisherman’s Friend and Mentos, which are not chocolate brands, it can be

seen that Kit Kat is second behind Ferrero Rocher.

The comparison of change in brand shares between Ferrero Rocher and Kit Kat can further be seen in

the chart below. Our team chose M&Ms as the second brand competitor as Cadbury had insufficient

data based on the brand shares table. Furthermore, in the Company Shares by Global Brand Owner

table, it can be seen that Mars Inc. is Nestlé’s second competitor. Applying this to the brand shares

table, we chose to compare Kit Kat to M&M’s, which is owned by Mars Inc.

Kit Kat vs. Ferrero Rocher vs. M&M’s

How Kit Kat Differentiates Itself?

Points of Parity (POP):

1. Wafer: Kit Kat’s use of wafer is a POP as though it may not be unique to the brand as M&M’s

also has a version which uses wafers, it is one of the key features which is associated with Kit Kat.

On the other hand, M&M’s key feature is its small, round and colorful look, and Ferrero Rocher is

known for its spherical

2. Milk / Dark / White Chocolate: Kit Kat’s use of milk, dark and white chocolate variances in its

products is a POP for the brand as it is one of the features which helps Kit Kat target a range of

different consumers. This feature is also seen in Ferrero Rocher, which provides milk and dark

chocolate variations. On the other hand, M&Ms provides a range of flavors through its difference in

fillings: plain chocolate, peanut, and wafer.

3. Packaging size varies: Kit Kat’s two-stick and four-stick versions come in varying package sizes

and types. Boxes of twelve and twenty-four are common for both the two-stick and four-stick

versions, as are long packets containing six to nine of the two-stick version of Kit Kat.

We feel that this is something which differentiates Kit Kat as the normal size M&M’s come in three

packet sizes, one newly released box format and the mini sized M&M’s come in a single column. On

the other hand, Ferrero Rocher comes in either large boxes, or its newly released three-in-a-box size.

Bringing the KitKat personality to life

“This was the first time two brands were interacting online and we started to think – what other

brands would we like to talk to? Who would KitKat like to hang out with?” says Stewart.

The team decided to use ‘moment marketing’ and interacting with other brands online as a new way

of bringing the KitKat brand personality – which Stewart describes as fun, empathetic and playful - to

life.

The next opportunity came in early 2013 when chocolate lover Laura Ellen tweeted at her two

favourite brands: “Can tell I like chocolate a bit too much when I’m following KitKat and Oreo.”

KitKat immediately challenged Oreo to a public game of noughts and crosses, made up

of KitKatfingers and Oreo cookies, in a bid to win Laura’s affections.

The next morning saw a good natured response from the cookie brand, showing the KitKat fingers

‘cross’ half eaten, with the tweet “sorry KitKat, we couldn’t resist…#GiveOreoABreak.”

The playful online banter between the two big confectionery brands received a huge amount of social

media attention - gaining more than 25 millions impressions - and is still used as a case study across

the world on how to bring brand personalities to life.

“Going digital has helped KitKat engage with its consumers in a more intimate way than ever before”

Stewart.

“We’re going to give people more reasons to have a break with Kit Kat.”

“These two big online successes with Red Bull and Oreo helped prepare us for our biggest

collaboration to date - our tie-up with Google for Android KitKat.”

For the love of KitKat

Google shocked the world of technology in late 2013 when, after months of online speculation, it

named version 4.4 of its mobile operating system Android KitKat.

Campaign Android Kit Kat

JWT has created a series of campaigns around the world to support ‘Android KitKat’, the latest

version of the Android mobile operating system which was unveiled this week.

As KitKat’s global creative partner, the agency has created all work across social and mobile, with a

dedicated website serving as the campaign’s digital hub. JWT offices have also created local

campaigns across TV, Outdoor, ambient, retail activation and experiential to run in 19 markets,

including Australia, Brazil, Germany, India, Japan, Middle East, Russia and the United Kingdom.

Over 50 million specially branded KitKat bars – for which JWT designed the packaging – will also

be available in the 19 markets. The packs will lead consumers to the website android.com/kitkat

where they will have the opportunity to win prizes, including a limited number of Google Nexus 7

tablets, and credits to spend in Google Play, Google’s online store for apps, games, music, movies,

books and more.

Android has been developed by the company’s engineers under sweet-themed names ever since the

release of Android Cupcake in 2009 and continued in alphabetical order until the most recent version,

Android Jelly Bean. The news that the letter ‘K’ will be dedicated to Nestlé’s KitKat surprised most

technology commentators, who had widely thought the latest version would be ‘Android Key Lime

Pie’. The move marks the first time the operating system has taken its name from a brand.

Nestlé’s branding partnership with Google is the company’s latest move in its ambition to leverage

digital technology and online content to get closer to its consumers to better understand and cater to

their preferences. The launch film that we made can be viewed below.

Stewart Says :

“We were looking for the next brand to ‘play’ with when Google contacted us with their proposal”

“We knew Google was looking for a sweet-themed name under the letter ‘K’ for their next Android

system, but because all the previous ones were generic – such as cupcake and doughnut – no one

expected it to be a brand.”

With a speed that had now become characteristic for KitKat, the tie-up was approved within 30

minutes of discussion by the Nestlé team. “It just goes to show that big companies can move fast too”

The collaboration has proved to be KitKat’s most successful digital and creative branding campaign

to date, but what the team prizes the most is why KitKat was chosen in the first place.

“One reason why Google invited us to share our name with their Android system – making us the

first brand in the world to do so – was simply because their engineers were huge KitKat fans. It was

pure love for the brand”

“No money ever exchanged hands. If that’s not a mark of how loved and relevant KitKat continues to

be, I don’t know what is.”

Staying ahead

KitKat continued to dominate social media in 2014 when it jumped into chatter around what became

known as Apple's "#bendgate" with the tweet ‘We don’t bend, we #break”. The hashtag #bendgate

had begun trending on Twitter after people started complaining that the Apple iPhone 6 was bending

in their pockets.

The post was retweeted more than 28,000 times, gaining KitKat thousands more followers and more

than 10,000 ‘favorites'’.

“The last five years have brought us unprecedented success as a digital brand and we’ve been quite

good at keeping the momentum going every year. Now we’re looking at what we can do to break

new ground and stay ahead” says Stewart.

“We’re going to give people more reasons to have a break with Kit Kat.”

Promotional Mix of KitKat

Advertising : Newspaper Advertising: KitKat Published various creative newspaper ads in different

times All those ads represent KitKat’s glorious past and successful present market .Different

Transport ads: KitKat also made some creative and attractive Transport ads.Which ads are printed

on the body of vehicles.

Electronic Media Ads: KitKat have made TVC also but it is very few in number.

SALES PROMOTION

KitKat offers various sales promotion in different time all through the year in different countries of

the world. Such as: Christmas offer, summer sale,winter sale ,eid celebration sale, Puja offer , bulk

offer etc. Sometimes they provide free chocolate to taste the people to increase their sale and also to

introduce their new products.

PUBLIC RELATION

Use in this campaign

Since KitKat is an old and famous brand so it’s one of the major target is to keep a good relation with

the existing customers .kitKat also arrange various events, cultural programs .They also host their

programs by celebrity to create an extra appeal .They also provide various offers to maintain the

existing relation and to create new more.

INTERACTIVE MARKETING

Use in this campaign

Now a days KitKat prefer interactive ads more than other media of advertising .Because now internet

is very popular and easy , people are using Facebook ,twitter and other social networking site ,online

marketing is very much popular .And posting ad through this mediums cost less than other medium

and more traffic can get the information.

PERSONAL SELLING

Use in this campaign

KitKat started personal selling from the beginning of their business .Their personal selling store is

not a lot but in the big cities of the world they have at least one Personal selling store .Building

customer relationship is their main target to establish these personal selling outlets.

DIRECT SELLING

Use in this campaign

Direct selling campaign runs by KitKat when they want to introduce a new product or want to expand

their market into a new area. Except these two reason KitKat also promote direct selling In different

region of the world to increase their selling. But as KitKat is a very popular brand so they don’t

prefer direct selling.

MY OPINION

KitKat success in this campaign as it the most successful chocolate for long time. But they have to

interested more by TV ADV and to be in a wide area .

they became successful to keep up their quality and taste .But day by day obesity, diabetes, High

blood pressure patients are increasing. Now it is the high time for kitkat to introduce sugarless

kitkat and low calorie kitkat.Another correction of kitkat is to label the price of kitkat in different

countries. More and more TV commercial should be made to keep place with the other competitor of

the chocolate market

Pros and Cons of Android’s Kit kat unveiled

Owning an Android phone does have some exciting surprises. iOS owners might blind you with the

superiority of the iOS, namely its routine security and framework upgrades, but Android OS does

have its own features that might evoke the envy of iOS users. Its customization is something that iOS

doesn’t really allow, for fear of infecting the whole system of a nasty virus, something the Android

OS is prone to. There is also the Android OS’ openly available code, which, as available as they are

to hackers, is also available to ‘good’ hackers who dish out stunning graphics and HD themes that

makes your Android OS look even more sophisticated than an iPhone of the latest version and

upgrade, even if it’s just a low-end phone.

ADVERTISEMENT

Here we have a new upgrade for the Android OS. From its last, candy coated treat, the Jellybean OS,

Android is rolling out from its factory the Kit Kat, a chocolate OS full of surprising goodness. As

with any new technological breakthrough, though, this current incarnation of the Android OS is by no

means perfect, what with a lot of testing yet to be done and bugs still waiting to be found. Let’s break

down the Pros and the cons, and see if the Android Kit Kat OS is worthy enough to sink your teeth

into.

PROS:

Responsiveness: A lot of users have staked their claim that the current Android incarnation is faster

than the other versions. Owing to its minimalist design, the interface is made more simpler. Another

reason for the faster responsiveness might be because of the 300MB of RAM it gains on a clean

boot.

Major improvements: After trying to find a unique identity it can call its own for quite some time,

Android finally came out with little tweaks to the design that can separate them distinctively. These

includes the removal of the black background from the notifica tion bar and the battery and wifi’s

color scheme (blue) is changed to white. It has also integrated Google Hangouts as a default

messaging app in response to different apps like WhatsApp and Skype.

Easier calls: The phone app might seem the same, but there are changes here that might make

searching for contacts easier. The new menu system is sensitive to the three most-contacted people

on your list, complete with their pictures for quicker reference. It also integrates online records with

your phone to tell you who is calling you.

CONS:

Battery life: This is where the discussion gets confusing. While some complains that the battery life

drains faster than it did in Jellybean, some claims that KitKat exponentially improved their battery

usage. The fault is attributed to a software glitch which, hopefully, is covered by the next update

within the Kit Kat line.

SD Card problems: A lot of people love using SD cards with their smartphones as a means of

expanding the space even further. However, with the KitKat update, the SD card seems to have been

alienated as 3rd party programs aren’t available to be written in the SD card, not unless you update it.

There are available apps to solve this problem, though.

Availability: As of the rollout, people who own phones running the Android OS have yet to receive

it. There have been reports that some high-end phones, even the Sony Xperia Z and the Samsung

Galaxy S4, have yet to receive an upgrade. These phones are completely capable of running the said

OS.

Conclusion

An important ingredient in the pursuit of any objective is control. It would be irresponsible of a firm

to commit itself to objectives and strategies without also setting in place the means to monitor and

evaluate its success. In the short run, Kit Kat's sales figures are a key indicator of success, enabling

Nestlé to assess growth and market share performance and compare its progress with that of its

competitors.

However, in the longer term, it is also necessary to gain market research information on consumer

perceptions. Consumer attitudes constantly change over time. If Kit Kat is going to maintain its brand

leadership, it must be aware of and adapt to these changes. The market never forgives complacency.

Kit Kat's success can be attributed to consistency in its marketing, whilst allowing for minor changes

to maintain a modern image. Above all, the brand has enjoyed continuous backing with investment in

marketing to both the trade and consumer sectors, enabling it to compete successfully with both

established and new products. Continuous reinforcement of the brand message through advertising

and promotions has enabled Kit Kat to sustain its popularity over a long period of time in the face of

rapidly changing consumer attitudes and tastes and consumption patterns.

Thank You