Long term maintenance of a classic brand name
A Nestlé case study

Page 1: Introduction

Kit 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...
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Page 2: What is a brand?

randing 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...
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Page 3: Product life-cycle

Business theory suggests that products follow a life cycle, going through phases of development as follows: the conception of an idea/product research and development introduction to the market. A period of growth then follows as consumers become increasingly aware of the product and, if successful, it becomes profitable. Eventually, the growth of sales will level off - this is the mature...
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Page 4: Objectives

It is vital to any firm that its marketing objectives are compatible with the overall corporate objectives. In selecting corporate objectives and strategy, a firm might wish to refer to the Boston Matrix, Ansoff's Matrix or use a simple SWOT analysis to establish where the company is and in which direction it wishes to head. For example, a company planning to consolidate its position within a...
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Page 5: The marketing mix

Product strategy No matter how effective the promotion and packaging, a firm will find it very difficult to market a product which fails to satisfy a consumer need. Kit Kat owes much of its success to a unique dual appeal - as a four-finger chocolate bar, (known in the confectionery trade as a countline), sold at corner shops and newsagents, but also as a two-finger biscuit sold in supermarkets...
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Page 6: 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...
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Related: Nestlé
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