Core customer value To find out exactly what consumers were looking for, Nestl carried out detailed

market research, including detailed qualitative research. Young people were invited to give their views on different formats for the new product eg whether they preferred one or two fingers, what flavors they preferred (caramel, peanut butter, orange jelly, chocolate layers etc.). Researchers also considered the most appropriate form of packaging to add further interest and attraction to the product. Other forms of market research included group discussions with young people who, typically, were regular consumers of chocolate bars. A survey group might consist of, for example, males and females who were:

17, 18, 19 or 20 years old of different ethnic origin A mix of students and non-students.

Using focus groups in this way, researchers were able to compile data on the views and feelings of representative samples of the targeted groups of consumers. The research provided clear evidence that the targeted population of 12-20 year olds were attracted to the idea of the single Chunky finger The research also identified the type of packaging with the greatest appeal - a mainly red and silver flow wrap. It also became clear that Kit Kat Chunky would inject new interest in Kit Kat across a broad range of consumers, including young children and older adults. Kit Kat is the best-selling chocolate bar. However, in the competitive modern world consumers' tastes continually change. As a result, even the most popular icons have to reinvent themselves from time to time in order to keep their appeal and stay 'on top'. For example, pop stars adjust their image, film animators amend their favourite cartoon characters, and car designers re-design old favourite such as the VW Beetle and the Mini. One secret of success is to retain enough of the old image to keep the loyalty of present enthusiasts for the product, whilst making sufficient innovations to attract a whole new group of consumers. In the world of popular chocolates and sweets, there has been in recent years an ongoing revolution in modifying products. In previous times, sweets and chocolate bars remained in more or less the same form for many years. Today, however, modern sophisticated consumers constantly seek novelty and change, and consumers have become the driving force behind product modification. Although Kit Kat continued to be the Number 1 confectionery brand, by the late 1990s its volume sales were falling. Faced with several increasingly attractive competitive offerings, consumers began to see Kit Kat in its traditional form as lacking in excitement and interest, with purchases being driven more by habit than positive choice. Although the four-finger Kit Kat continued to be highly popular with its core target market of 25-40 year olds, it was losing popular appeal with younger consumers.

In this important age group, while Kit Kat had been part of 'growing up' and may also have made regular appearances in lunch boxes, it was hardly relevant to their lifestyle. The traditional four-finger Kit Kat did not seem relevant to them. In 1999 therefore, Nestl felt it was time for some re-invention. The company decided to develop a new format of Kit Kat whilst still retaining the four-finger variety with which consumers are so familiar. Actual product For the last couple of years, Nestle has been producing numerous limited editions for Kit Kat, such as Kit Kat Chunky Peanut Butter and Kit Kat Green Tea Chocolate. Different variants in the traditional chocolate bar first appeared in 1996 when Kit Kat Orange was introduced in United Kingdom. Its success was followed by several varieties including caramel. In Japan, there are more than 40 different flavours available, including Wasabi, Strawberry Cheesecake, Lemon Vinegar, and Cucumber. In China, it is sold in plastic bag due to the humid weather in the region. Limited editions are used to attract consumers. Market research has shown that loyal consumers prefer special editions to be available for a limited time only. Consumers are likely to purchase the original Kit Kat at the same time or shortly after. The first use of tagline 'Have a Break, Have a Kit Kat', written by Donald Gilles' agency, can be traced back into May 1957. A year later, it was used on the very first television advertising by the brand and ever since has been a staple of the campaign for the chocolate bar. Today, the tagline is one of the most important communication tools for the brand. Its incorporated inside its product packaging and is featured in the media advertisements and marketing campaigns. For instance, in the Singapore's TV advertisement, it depicts a supermarket cashier taking a break with a Kit Kat. This tagline also incorporates the youthful and fun nature of the brand. Augmented product The KIT KAT Cross Your Fingers campaign is the fourth time Nestl has worked with Blippar and follows on from the success of previous interactive campaigns, including KIT KAT Choose a Chunky Champion, Shreddiess Nana's Daily Pearls of Wisdom and Rowntrees Red Ones. Nestl has always been about Good Food, Good Life. To celebrate this philosophy in South Africa, along with the announcement of Android Kit Kat, Nestl wanted to give the country 'a break' with an original idea. "The coming together of two very different worlds - chocolate and technology - inspired the idea of creating chocolate artwork made possible through the use of innovative technology," says Kevin Corlett, business executive manager of Chocolates at Nestl.

In essence, Chocnology is an exhibition of 3D-printed chocolate sculptures created by talented South African artists, using Android Kit Kat as inspiration. Although the project culminates in a real-world exhibition, the entire process and the story behind Chocnology began with digital consideration. All designs were created using the Android operating system and freely available online 3D modelling tools. To produce the artwork, a 3D printer that traditionally uses a plastic-based filament was manipulated to use chocolate as its raw material, allowing the creation of intricate, three-dimensional sculptures. The entire process is being seeded online through Kit Kat SA on Facebook and Twitter

Consumer Product Kit Kat brand is consider under the Convenience product as consumer always buy without having much consideration about it and the price is also cheaper than the other chocolate brand. Kit Kat can also be found in many different stores like 7-eleven, NTUC, Cheers, Mama Store, etc. Kit Kat introduced lots of advertisement on television like, Kit Kat 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 90s. For today, the TV advertisement, it depicts a supermarket cashier taking a break with a Kit Kat. This tagline incorporates the youthful and fun nature of the brand. In the past, Kit Kat only produced as a milk variant, but is now available in Milk, Mint, Orange, Dark and Cookies and Cream. It is also widespread across different countries like Japan, United Kingdom, Canada, South Africa, Ireland, Australia, New Zealand, Russia, Turkey and Malaysia, Germany and India. The most success things is that Kit Kat brand is very popular across all this 12 countries. Moving on to the Marketing mix which is the 4Ps- Product, Price, Promotion, Place. Firstly, for the first Ps, product. For the product Kit Kat, it owns much of it success to its unique appeal- as a four-finger chocolate bar sold at corner shops, but also as two finger biscuits sold at the supermarket. Consumers choose Kit Kat is because there is a wide range of flavours for them to choose and it is wide appeal across all age range and both sexes. The main selling points that appeal to consumers are

chocolate fingers foil and band wrapping, unique in the countlines market and seen as an important feature which encourages involvement and sharing by consumers well-known strapline - Have a Break, Have a Kit Kat.

In spite of the risks of alternating the product, two finger bar was introduced to meet the increase needs of supermarket shopping, Orange, Mint and Dark Chocolate Kit Kat have been available for limited periods. In just three weeks, the sales of Kit Kat increased its sales. This shows that consumer likes the new Kit Kat flavors. Special editions was also introduced after that and the market research found that consumer prefer the special edition to be limited for a period and that they are likely to purchase the orange Kit Kat that was introduced earlier.

Secondly, is the second Ps, pricing. A key advantage of maintaining a strong brand image in a competitive market is a degree of flexibility in the pricing strategy. In terms of pricing, Kit Kat has performed outstandingly well, having not raised the Real price of a finger for over 100 years. By keeping its price constant over the past 100 years, it has managed to be perceived as an affordable, for everyone brand. Kit Kat is a well-loved brand with consumers judging it to deliver good quality at affordable prices. Its youthful vibes and strong associations with taking a break, make it relevant to consumers living fast-lives in a constantly changing world. Its rich history and long lasting legacy have helped it become perceived as a superior brand than its immediate competitors. For the more health conscious, Kit Kat is one of the least calorie heavy chocolates. The recommended serving size of two fingers has a calorie count of only 90 kcal. As a brand, Kit Kat strongly resonates with consumers. Consumers grow up eating Kit Kat, associating many of their cherished childhood memories with the brand. Repeat Purchases of Kit Kat helps them re-visit these memories and evokes strong feeling of warmth, youthfulness and comfort in them. This is what makes people wants to purchase Kit Kat instead of other chocolate brand. Thirdly, is the third Ps, promotion. Nestl has used a wide range of promotional tactics with Kit
Kat. Promotion offers have included free bars in the multi-bar family packs and an instant win deal with Burger King in 1996. This promotion, where over 75 million free burgers were on offer, increased sales of Kit Kat by an estimated 30 In 1998. People love promotion. When they knew that there is promotion going on, they will automatically went for it and that is how Kit Kat increase its sales by having these promotions.

For example, the iconic panda advertisements in the 1980s were a great tool that reinforced the brands quirky image back then. However, in todays context, it bears absolutely no relevance to the brand in the minds of the consumers. It lack of compatibility with associated memories. So they started to provide a solution by developing and customizing marketing campaigns for the brand so that it is aimed at the junior colleges, polytechnics, and tertiary institutions in Singapore. By running promotions and fun activities on campus, Kit Kat would be able to convey to its target customers the intended associations for Kit Kat. This is how young people gets to know about Kit Kat. Lastly is the fourth Ps, place. Nestl has developed distribution channels which ensure the
availability of Kit Kat to buy wherever and whenever the consumer wishes to purchase it. With this it is easy for consumers to buy Kit Kat when they wish to and with Kit Kat available everywhere, consumers will feel more convenient and it will also increase the chance of more Kit Kat being purchased. Not only that, internationally, Kit Kat is now also manufactured in Canada, Germany, India, Malaysia, China, Japan, Australia, South Africa and the United States. It is available in more than 100 countries throughout the World.

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