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.