Sales

                                                                SALES

"A marketing idea that is based only on on the selling of good or services, rather than on whether or not they are actually needed operating under the sales concept, a business will produce goods that it anticipated a profitable return from and then attempt to persuade consumers to purchase them by using advertising and other sales techniques" According to business dictionary .

                                                 SALES MANAGEMENT

 A technique implied by all the organisation in order to increase the sales of the company by strategically using sales techniques.

Objectives of sales:

1.  To achieve sales target
2. To achieve market share targets
3. To manage dealer network
4. To organise sales training
5. To handle customer complaints
6. To manage sales promotions campaign
7. To effectively cover market.

Holistic Marketing

                                 HOLISTIC MARKETING

Holistic marketing is defined as

           "A marketing strategy that is developed by thinking about the business as a whole, its place in the broader economy and society, and in the lives of its customers. It attempts to develop and maintain multiple perspectives on the company’s commercial activities" 

      holistic marketing has four basic things in it that is :

•  internal marketing: consisting of departments such as senior managers 
•  integrated marketing: includes products and services, communications and channels 
•  relationship marketing: maintaining relationship between channel, customers and partners
•  performance marketing: includes sales revenue, ethics, environment. 

SUSTAINABILITY:

                 Nestle uses various mediums to reach their customers and inform them about their products such as television, media etc. The company tries to maintain good performance and internal marketing policy. Nestle performs multiple CSR and sustainability projects.They believe that if a company wants to sustain for a longer period the company must work on its social ethics.

Nestle use integrated marketing to advertise its products and inform the customers . They have strong internal communication system and the various departments work with each other for growth of the company . They follow a strong set of ethics and principles .

            

   Nestle CSR strategy :

• Creating Shared Value :in this comes their motive is to work for the rural development, water and nutrition of the society as a whole.
• Sustainability: The company tries its level best to protect the future by working for the society in advance and working so that the future generations do not get affected because of the present condition.
• Compliance: nestle compiles with the laws under the acts and works for the welfare of the society. they follow laws, business principles, codes of conduct. 

                              

Analyzing Business Markets

Organizational Buying is often supposed to be more rational and less emotional than consumer purchasing behavior

Participants in the Business Buying Process:

1. Initiators: People from the Organisation who request or convince to buy; Salesmen, Marketers
2. Users: The Buyers
3. Influencers: People who influence the Buying Decision; Budget decision maker
4. Deciders: People who decide on product requirements; can be kids or elders who dirty their clothes, can be homemakers who keep a check on supplies
5. Approvers: People who agree or approve the buying
6. Buyers: buyers might include high-level managers
7. Gatekeepers: People who disrupt the buying.

Consumer Behavior 

 Factors affecting consumer behavior

1.       Cultural Factors :

Culture helps us in choosing what kind of product we want to buy.  Family, relatives all play an important role in deciding consumer behaviour. When it comes to kitkat cultural factors do to some extent affect the consumer behaviour.

2.       Social Factors:

Factors like reference groups, family and role models have direct or indirect impact on the consumer’s attitude and behaviour. There are aspirational groups and dissosative groups which too affect the buying behaviour of the consumers.

3.      Personal Factors :

Factors such as age and the stage o life in which you are , economic conditions do play an important role in the buying behaviour of the consumer. Personality of that person does affect his behaviour of choosing or selecting a product.

4.      Psychological Factors :

There are key five psychological factors that the buying decisions of the consumers. Those are as follows

·         Motivation:  This is explained by three theories: FRUED’S THEORY, MASLOW’S THEORY, and HERZBERG’S THEORY. These theories explain how needs become motive after a certain point of time. These carry different implications for consumer analysis and marketing strategy

.

·         Perception: consumers have different perceptions of the same product or an object. It is a process by which a consumer selects, interprets and organises information inputs to come to a conclusion or a decision

.

·         Learning: Learning is an internal process which comes by its own. by the process of learning one gains experience and by this span of time. There are two popular approaches to learning those are : classical conditioning and operant conditioning.

·         Memory: there is two types of memory that is short term memory (STM) and long term memory (LTM). Memory helps in making a consumer recollect a brand and how does the consumer associates the brand with itself.

                                                                                                                                                                                          

Branding and Brand Positioning

                           BRANDING

 BRAND  is a " term, Name, symbol, Design or other features that identifies the distinction between the product of one seller and the other." It refers to a symbol such as a logo, name, slogan and design scheme. Brand can also be referred to the overall perception of the consumer towards an offering.

                  A name becomes a brand when people associate it with a set of tangible and intangible benefits that they obtain from the product or the service. a strength of a brand is with its target groups. companies should create a sense of advocacy that is when you think that you own that brand.

BRAND EQUITY: "Measuring the strength of the brand in the market is brand equity."

          Definition:" The marketing practice of creating a name, symbol or design that identifies and differentiates a product from other products"  ("http://www.entrepreneur.com/encyclopedia/branding")

kit kat has a strong brand positioning in the market of confectioneries. 

The name itself is a brand which helps in identification of the product and distinguishing it from other products. Name of my product being “kitkat”.

The logo, a copyright of a company helps in differentiating one brand from the other.

Packaging helps in getting the brand identification in the store among other brands of the same category. Its colour, logo etc in packaging helps in distinguishing.


Tagline helps in retaining brand in the minds of the consumers, making them recollect the brand whenever the tagline appears. My brand has a tagline “have a break....have a kitkat.”

Segmentation, Targeting, Positioning

                                        SEGMENTATION 

AMA defines market segmentation as "The process of subdividing a market into distinct subsets of customers that behave in the same way or have similar needs. Each subset may conceivably be chosen as a market target to be reached with a distinct marketing strategy."

       
 Marketing segmentation means subdividing a market based on similarity, commonality. segmentation basically is done to segment the target market and thus focus on the targets depending on their needs and requirements and also to get advantage over the competitors of that segment. 

Researchers try to define segments on the basis of four factors:

·         Demographic  

·         Geographic

·        Psychographic

·         Behavioral 

      Segmentation can lead to changes in the organisation such as: supply chain is changed, new techniques have to be applied to different segments,it changes how the industry works. all of this in turn leads to a greater market share.

                            TARGETING

   

      Market segmentation shows the firm’s market opportunities. Then the firm sort market targeting by evaluating various market segments and deciding how many segments and which it will target.

Kit kat target group:

·        Across all ages mainly from 5-25,

·        Mainly focusing on teens, and college going students.


              POSITIONING

   Creating an image in the minds of the customer. Its not only important to create awareness but to generate brand recall within the target groups. The customer should be able to connect with the brand in future.

    

Distribution

Kit Kat is widely distributed in India and so is easily available in local stores. Consumers don't have to go to various places just to buy the product. high competition being prevalent in chocolate and confectioneries kit kat has to  make its product available to its customers as they may switch to different product of same type and same price. 

DISTRIBUTION MODEL :

This MODEL shows that how nestle distributes its product in Delhi NCR region from Godown to carry and forwarding agents to distributors as per the territories and from retailers and wholesalers reaching to the end consumer.
    

                 The final consumer finds it easy to access the product anywhere because of the distribution model that nestle follows for its products which makes the product available to its customers.

Promotion

Kit Kat Tagline :   HAVE A BREAK...... HAVE A KIT KAT.

Integrated Marketing Communications (IMC)

        IMC is an approach to brand communications where the different modes work together to create a seamless experience for the customer and the communication is presented in such a way that the brand's core message is reinforced.
All aspects of marketing communications advertising, PR, digital, sales promotions work as a unified force towards the goal of a stronger brand and better sales.

Kit Kat  uses IMC which majorly integrates different elements from ATL and BTL to communicate the core message of Glucon-D and project it as a Trusted brandwhich offers Value-for-Money. 

Above The Line (ATL)

Above The Line promotions are impersonal communications  ,where mass media is used to promote the product and reach to the target customers using conventional mediums such as TV, radio, OOH, print and cinema to communicate to the masses. 

                                                      Kit Kat Bench AD 

                                                                                              

Below The Line (BTL):

  BTL uses unconventional methods to target individual and specific group and thus is a personal communication method. It is aimed at driving an immediate or a little delayed incentive to purchase.

Sales promotions, direct mails, point of purchase, roadshows,telemarketing, in-store promotions and activations for the various activities in BTL.

kit kat mainly relies on the ATL promotions in India. In various other countries it uses other forms of promotion techniques such as kit kat human ventding machine .

     a form of BTL promotions being used by kit kat to create interest in the product in customers and attract them towards kit kat which was an innovative way to promote and sell kit kat.

Product levels

When a product is to be sold product level has to be kept in consideration in order to retain the market share and increase the customer base .

There are five product levels which help a company pitch their product :

Core benefit :    

            It is the benefit that any customer or a consumer receives after using the product. For a product like kit Kat core benefit for any customer will be taste .

Basic product : 

                  The basic product is that in which the core benefits of the customer are fulfilled. Kit Kat provides taste and quality to the consumer which is the core benefit they require.

Expected product :

                  What customers expect from the company which can be more than what is in basic product or may have variations depending on the choice and taste of the customer. Customers expect nuts or different flavor in the kit Kat product .

Augmented product : 

                        It is when company does more than what a customer expects from the product .In case of kitkat, they have already come up with a line of new products which was beyond the expectation of the consumer.

Potential product: 

                       When the product starts a new life cycle that is at this stage the company is an innovator .

                  

PRICING

PRICING is valuation of a product for a customer depending on what the customer is willing to pay for that product or depending on the cost incurred in the production of that goods. it is one of the elements of marketing mix which helps producer determine the revenue he gets from the sales.

                  kit kat caters mostly to a price-sensitive segment and operates in a highly competitive environment. its pricing strategy cannot be different from other sellers when it comes to small packets of kit kat products but when it comes to large products kit kat tries to woo customers by giving or offering different type of packages to its customers with different prices depending on the quantity and products inside it .

Product Mix

Product mix is the number of products offered by a company for sale.  To see product mix for a product we need to look through the parent company of that product . the parent company of kit kat is nestle, its product mix is the range of products it sells to its customers.

  

The 4 dimensions of Product Mix: 

    

WIDTH : 

                    The different number of product lines that a company offers to its customers is the width of the company for example in case of nestle it provides from chocolates to refreshing drinks like Nestea to coffee like Nescafe. So there are a number of product lines. 

LENGTH: 

                  The number of products in a particular line will be its length, for example one of the product line of nestle is beverages so its length will be the no. of products in the list of the beverages that is Nescafe, Milo etc.

         

DEPTH:

                  when the length of the product provides different variation in its same type of products then it is said to be depth. there can be variations like different flavor of different chocolates of nestle or the sizes of chocolates may vary or the shapes of different chocolates may vary.

CONSISTENCY:

                 Consistency  refers to how closely are the products of the product line related to each other in terms of taste ,price, production, distribution etc. which distinguishes one product of that company from the another product of the same line or category. for example: kit kat being different from munch and bar one, they have different production and distribution compared to kit kat. 

                                 

                       

Product life cycle

PRODUCT LIFE CYCLE

                It depicts the life cycle of a product , the stages through which a product goes and then is selected by the consumer. it helps the company in narrowing down its its options before the launch of the product for new 2 world products. 

    INTRODUCTION :

                        It is the stage where a product is introduced to the customer as a new to world product. a company fixes on one market and then launches that product. here it is decided which market with which product and which competitor to take it from.

     GROWTH:

                        It is the second stage of product life cycle where the customers and consumers of the product start increasing  that is the customers start accepting the product in the market. the profit during this time is high as customer requirement is fulfilled by a new product.

     MATURITY:

                        Then comes the maturity stage which is quite long period. here is the time when competitors come in, there may be a potential threat from the new entrants if the company does not keep on innovating the product line or else the last stage of the life cycle will start. kit kat is in its maturity stage but is facing competition from various other chocolates including chocolates from its own brand nestle.

    DECLINE:

                       The last stage of the product life cycle wherein you are left with less no. of customers as the product could not compete with the new entrants who bring new and innovative things.kit kat was in a declining stage when it had decided to only less at less selected stores later on they changed the strategy but still kit kat faces a lot of competition  

                        

Marketing Mix

Marketing Mix is the mixture of four p's which has been said to be essential for a business or a company when branding and promoting their product. the four P's are : Product, Place, Price, Promotion. 

 PRODUCT :  Product is the goods that is being sold and promoted by the company. kit kat being the nestle product is widely produced and consumed . they promoted the product by making the product in a different way that is four finger , which led to its promotion.

PLACE:  place plays a major role when promoting a product as it has to be decided where the product should be sold depending on the target group of the company. kit kat at first thought of not selling at various outlets so that people demand for more, the strategy worked for some time but later on they had to make it available at different places as sales was being affected.

PRICE: What should be the price of the product depending on the cost of the product . my product being kit kat starts from 5 rupee and then goes on increasing depending on the size of the product as kit kat product size is increased, they provide more quantity and charge according to that.

PROMOTION:  Product in order to remain in the market requires promotion 

Competition

Competition is the rivalry among the players of the market to overcome the other player. In other words one seller tries to go ahead of the other seller who may be a threat to his business. In a market of chocolates the competition is very high as there are n number of producers providing variety of taste and choices to a customer. kit kat has created place for itself in the market by providing quality chocolate in a good price range. 

There are two types of competitors :

    Direct competitors :

            These are the competitors who produce the same type of goods as their rivals and try to compete with them on the basis of price, quality, availability etc. which may affect the choice of the consumer. direct competitors of kit kat would be perk, munch.

    Indirect competitors:

                  These are the competitors who offer those goods and services to customers that can be used as a substitute thus cutting down the sales of other products.for a product like kit kat its indirect competitors will be dairy milk etc. as they satisfy the same needs of the consumers but the category of the product is not same.

Key Points :

• competitors compete on the basis of what customers want.
• competition can come from other categories depending on consumers choice.
• competition is somewhere linked to the minds of the customers.
• choices give rise to competing offers.
• potential threat from a new entrant.  

Buying process

                                CONSUMER BEHAVIOR

When a consumer thinks of purchasing  a product he covers a lot of stages which eventually help the costumer in deciding what to buy and what not to buy.

The  factors that influence the buying behavior of a customer are : 

A. Personal

B. Social 

C. Psychological 

     

           Personal : There are personal choices of customers who prefer one taste or the other or may be other choices depending on them. Some may prefer dairy milk over kit kat. 

  

           Social : At times a customers decision are influenced by the society he /she lives in. Family , friends, society influence consumers choices. 

           Psychological :  These are the factors such as motivation, perception, learning, beliefs and attitudes which tend to influence the minds of the consumer. kitkat as a product is not affected by these factors as it being  FMCG product.

                                    CONSUMER BUYING PROCESS

Customer Value

Customer Value is what customers desire in a product or service and what they perceive after having purchased that product. For any business organisation understanding customer value is of utmost importance. Customer value is the benefit that a customer will get from a product or service in comparison with its cost.

                           

                                                                                                                                                                                        

  There are two aspects to customer value:

Customer Perceived Value : it is  how a customer  anticipates the benefit of a product or a service and the cost incurred for receiving those benefits.

 Customer Desired Value : it refers to what customers desire in a product or service.  their desired value is their satisfaction  example: quality, taste, brand etc. whatever satisfies their desire depending on the product.

 Kit Kat customer value :

                               Nestlé successfully delivers customer value through the following : 

    Quality : kit Kat is a chocolate of quality which has always tried to maintain its position in market without compromising with its quality .It ois very low in cholesterol and in not unhealthy for children to consume , its quality is maintained at every level of production.

    Availability: kit Kat is available at maximum stores in India it is trying to reach more customers with its new range of kit Kat chocolate wafers which is not yet available at all places in India. it is trying to bring in a variety of kit kat products in the Indian market, as of now in India the widely used kit kat product contains only chocolate 

   Affordability: Kit Kat even after keeping its quality intact is affordable and can be purchased at a price as low as 5 rupees and thereafter its price  range increases depending on the quantity and quality.

An Introduction to Kit Kat

Kit Kat, a slender crisp wafer fingers covered with chocolate was created by Rowtree's of York, England which was later acquired by nestle in 1988 , and is produced in 15 countries except in United States.                                           

                                         Kit Kat when introduced in 1935 was called as chocolate crisp which in 1937 was finally named as kit kat. According to the Guinness book of world records every second 540 kit kat chocolates are consumed around the globe.

                                          The product was developed as a four finger water crisp which has a breaking ritual attached to it. Kit kat was first advertised on TV back in 1957 and its first color advert in 1967 in 2004 a massive 39000 tons of kit kat were sold , that's 107 tons a day.
                                              In 1990 manufacturing operations were set up in India. around the world there are around 35 varieties of Kit kat. Have a break, have a Kit Kat is the tagline of nestle Kit Kat.

Kit Kat squirrels ad