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Marketing Plan For Nestle: Set up Kat Nuts

Nestle will launch Kit Kat Nut products which is extension to the existing Nestle Package Kat chocolate. System Kat Nuts will particularly aim for the young adult segment between the age of 22 to 40. System Kat Nuts has to contend with the more developed chocolate brand like Snickers and Cadbury Fruits and Nut, Cadbury whole Nut. The grade of the products provided by Nestle to its customers will help to drive the sales of the Package Kat Nuts.

Kit Kat Nuts has its goal to reduce the deficits in the first calendar year with increasing the product understanding by huge promotional and marketing activity as well. In the second year it projected to achieve at least chance even point and thereby kick start the expansion in the sales and profits.

(1)Specific Situation Analysis report

Nestle is world's highly successful nutrition, health and wellness provider. With hq in Vevey, Switzerland it was founded in 1866 by Henri Nestle. Nestle company as a whole made up of varied others brands which offers various products such as espresso, water, ice cream, chilled products, confectionary and chocolates, freezing foods, cereals etc. Nestle is delivering its product services to almost worldwide which is principally possible scheduled to complete knowledge and understanding of the domestic aspect of tastes, preferences and health of the people. Nestl's main source of income is food and beverages, in addition it produces pharmacy product as well like Alcon. The meals industry is very competitive field this means no enterprise can feel relaxation at any time, therefore Nestle has to consistently assess its performance and search for the new ways of satisfying the customer needs. Nestle needs to carry on with its online marketing strategy of segmenting the clients and producing the product remember the movements and demands of the merchandise.

(1. 1) Market summation:

Since Henri Nestle began its operation in 1867 as a milk food supplier, Children are one of the key targeted segments for the Nestle. In addition it spreads its market to adult and the elderly as well by concentrating on them their specific tastes and preferences. System Kat nuts will specifically concentrate on the adult people because children do not normally like the nuts but the adult people do prefer the chocolates with some nut products in it. The segmented market will be targeted for the next to term say first 2 yrs and then after analyzing its performance it will be disperse to other section accordingly.

Following stand 1. 1 summarizes needs and matching features/benefits of the System Kat nuts.


Customer need

Corresponding feature /benefits

Young students

Healthy chocolate

Kit kat nuts includes peanu which gives healthy options

Working class


Kit Kat nuts satisfies hunger needs by about 25% nuts in a single product

Old People

Milk delicious chocolate with some nuts

Kit Kat Nut products includes 50% dairy chocolate with option to buy dark chocolate as well.

The competition in the confectionary market is so enormous that Nestle must match its every step using its industry rivals for constant and permanent growth of the company.

(1. 2) Strength, Weaknesses, Opportunity, Hazard analysis

Nestle is a more developed company and acquired huge experience of about 150years of providing highly trained products. These facts provide great power for the functioning in the competitive market. Nestle got weakness as lack of success in the organic and natural food industry. Nestle got major opportunity to exploit their brand recognition on the market by starting new lines of products. The major threat includes competition form the in close proximity to rivals.

Strength: Nestle acquired following strengths.

High market talk about: Nestle is delivering its product to virtually all countries on the globe. Globally its share in the market is quite significant. The first quarter sales of the year 2010 for the group were 26. 3 billion with 4. 8% interior growth.

Branding: Nestle got ability to constantly keep the existing product in your brain of the consumer vis a vis increasing the product collection to repay additional market show. Nestle has prevailed in keeping major brands from sleeping by renovating existing product lines.

Recognizing local tastes: Nestle is undertaking its operations in depends upon. The main idea of understanding and producing the merchandise in line with the local mother nature of nutrition, health and fitness of the folks provides power to the business.


Insufficient progress in organic food: Nestl's progress in organic and natural food is not significant. Actually it was even in 2008, even though industry grew 8. 9%.

Health and safe practices issues The FDA have been constantly examining the breakfast time and cereals industry from quite a while. They are of an view that bogus claims like "heart healthy" and "lower cholesterol "should not exist on the packaging of the cereals.

Lack of presence in retail market: Nestle is without somewhat as a presence in the retailing market. The retailing section is very vital as the majority of the consumer feel the traditional shop for the day to day buying and when there is no life or less lifetime of the Nestle product the sales going to be endured.


Introducing more health products: As they are market innovator, it can bring in more health based mostly products for medical conscious culture. They will be successful since it has already been accepted by folks as a "health and wellbeing company" plus they received the successful history in it.

New acquisitions: Nestle is integrating in the producing economies by using new acquisitions of businesses which gives them chance to enlarge their show on the market.

Opportunity in the emerging economies: There is great amount of market in the new emerging current economic climate like china and India. Nestle received significant procedure in the appearing countries like India, china and Brazil.


Competition: Nestle is competing with some of the big market giant like Cadbury(Kraft foods), Kellogg's, Heinz, Starbucks, Hershey's etc. These industry rivals poses all time danger to the business to put up its alternative product on the market.

The FDA legislation In 2007 conclusions of the FDA suggests that certain pet meal were the cause of the fatality of the kitten and dogs. The outcome is the fact tougher norms and rules posed by the FDA for the transfer of the fresh material from a different country.

Increase in the chocolate ingredients: Raw delicious chocolate materials prices have increased substantially in last couple of years e. g in 2008 dairy products costs itself involves 50% by themselves. This menace often poses concern on the business to produce the same standard quality products keeping in mind the pricing factor as well.

1. 3 Competition

The confectionary industry is highly competitive in mother nature. It comprises of other world class chocolate maker like Cadbury (now Kraft), Mars, Kellogg's etc. Nestl's nearest rivals are Cadbury and mars. They often times unveiled new lines of products that are difficult to copied or produce the similar product.

Following are the nearest competitors of the Nestle.

Cadbury: Cadbury is one of the most powerful competitors which acquired great variety of products with significant market talk about. While using takeover of the Cadbury by Kraft which American platform company, it has been more robust than before. Cadbury received occurrence in almost each country on the globe with the various lines of products.

Mars: One more US established company which produces various lines like mars, snickers, galaxy, bounty etc. Mars is not that much better competition as compared to Cadbury, but nonetheless it is beginning to focus on the growing market like India and China. With our product of Package Kat Nut products the first rival is Snickers which is being produced by Mars. As they got successful background behind providing the nuts product, it will be challenging for the Nestle to enter into the marketplace with the new collection.

Kellogg's: Kellogg's is mainly competitive in the breakfast and cereal products and they're targeting the customers by variety of dietary products. Nestle has been contending with Kellogg's by its cereal collection like Cheerios, Minis, Choc Pic ets. Pursuing table suggest the various competitor of the current product under research and their charges.



Recommended price


Made up with nuts

1. 4 Product Offerings

Nestle system kat which is the prevailing product of the company and one of the highly offering chocolate on the planet. Extending it to add the nuts to the delicious chocolate provides great additional feature to the prevailing product. Pursuing are the primary features which will be provided by the System Kat Nuts.

New feature of nuts in the chocolate.

The nut products will be roasted and you will be fresh.

Presence of caramel among as well.

Extention of the both normal and dark chocolate.

Low amount of flavourings and maximum use of milk in the chocolate.

1. 5 Distribution Channel

Mostly merchants are the main channel of distribution for the Nestle. Nestle is using other varieties of syndication like Supermarket Tesco and Asda for covering large market at one time.

While it is worthwhile to think from the pack here that could it be not the good idea to start Nestl's own chain of stores around the marketplace that will give company direct interaction with the consumer, decrease the existence of the middleman and increase efficiency in delivering those products.

(2)Marketing Plan

(2. 1) Marketing Strategy:

The marketing strategy of the product under study details the objective of the product, what exactly are the target market segments and how the target market is going to be targeted? Positioning and rates strategy, the way the product is going to be allocated and advertising of the product.


As nestle is relatively known to the market and already got healthiest brand on the market, following aims has been set for the new products " System Kat Nuts".

First year purpose is to place maximum work towards familiarizing customers with the new range and try to cover at least 5% of the market included in the other rivals.

In the next year chances are to create with new lines like set Kat ginger. Chances are showing negligible earnings or even loss in the first 12 months, but in the second time equilibrium or significant profit may be performed.

(B)Goal Segments

*Market Segmentation is the process of dividing a market into subsections based on specific needs and needs. These folks will have similar reactions to products.

This will help marketers design their marketing blend (4 P's!) (Kate Notes)

Nestl's main targeted portion would be the working class adult because nuts provides for hunger needs with sufficient amount of calorie consumption in one chocolate. The secondary aim for will be older people as it can prove worthy of for the older people to involve some nut products with the chocolates. Other markets which may be targeted will be the young students studying in colleges and in universities. These sections then can be targeted for the advertising and promotional activity of the merchandise.

It is important to note here that the segment created should be targeted using appropriate route of advertisements often it can result in unexpected results for future years.

It is essential to develop different strategy for the different band of folks for success of the new product line.


Positioning means creating the position in your brain of the cusotomers. Placement may be achieved mainly in two ways.

(1)Differentiation: Differentiating current product with the other product on the bases of superior quality.

(2)Rates: Arranging competitive prices of the product so that creating position in the mind of the client e. g Reynar has generated themselves as a cheap air provider in the mind of customer.

For the product under review we use differentiation strategy because Nestle received the image in the market as nutrition, health and wellness provider so there is no need to be competitive on the bases of prices.


Product: Product strategy will particularly emphasized how many lines of product to be created, how the product should be packed?, what kind of warranty to be offered to the customer.

Kit Kat nuts will be packaged similar to the normal Set Kat but additional feature of picture of almond on the wrapper will be shown to pass the meaning to the clients that equipment kat got nut products. Furthermore on the back side of this you will see brief questionnaire to be complete so that gathering the views form the customers about the new products.

Each packet will contain returned information if customer is unhappy with the merchandise.

Particularly Nuts word on the presentation will be outlined in different colour to develop product consciousness and brand consciousness among the clients to easily identify the Nestle Package Kat brand.

For the first six months only System Kat 4 fingers will be extended to the new brand, after evaluating this short-term outcome it will be pass on to the other lines of Kit Kat.

Pricing :

Pricing strategy highlights the various pricing strategy at various time of the product in the close to term.

Kit Kat Nut products will be first sold to the wholesaler at the price of 13pound per field of 48 portions and predicted 50p price per device by the shop.

There will be promotional offers e. g get 48 for the price of 44 to be offered to the dealer to cause them to become buy and stock the Kit Kat Nuts so that to boost the availability of the merchandise for the clients.


Distribution strategy refers to determining the string by which the item is going to be delivered to the end user. We can choose from available two options (1) Direct circulation or (2) Indirect Distribution.

Indirect circulation is the sole better option here as it is possible to reach wider market with the use of merchants and Supermarket than having specialised stores at one location.

Most of the competitor is also using the indirect route of syndication for the better service and availability of the merchandise. Wholesalers and Supermarket may also be able to put the order online on the business's website.

Marketing Communications

The Communication with the targeted market is vital factor of the strategy part. By the correct communication with the targeted portion and with the distributing channels greater results and collaboration can be buildup with real estate agents or middle people.

The vendors and other middle people will be using push strategy by using personal sales through the specialists sales folks. Further sales advertising activity like camp gathering and stall activity to positively communicate with the customers directly and bring there views and advises.

By delivering emails through multimedia and available communications resources, differentiation will be made between Kit Kat Nut products and the competitors' product.

Advertisement: There will be huge investment on the advert by Nestle. e. g The merchandise is likely to be launched in the moth of july that can come across with the Sports World cup, so advert will be made showing Football superstars eating chocolates for craving for food needs when one of the footballer being eager form participating in long basketball.

(E)Marketing mixture:

Nestle Equipment Kat Nut products will be presented in July. Research results will be compiled and accordingly the next various activities at various times will be taken.

Initial set-up: It will be huge sales and promotional activities to be completed in the weeks of May and June. Personal distribution of the template showing intro of the System Kat Nut products will be introduced. Sample syndication will be undertaken to educate dealers and wholesalers to set-up the product start in the july

1st quarter (July-sept): We will immediately start advertising our new product mainly through Television set/ press. We use other print media as well e. g Big Hoardings on the main roads showing new System Kat Nut products.

2nd 1 / 4 (Oct-Dec): As customers get familiar with Kit Kat Nuts, more sales advertising activity will be achieved by putting prizes under the wrapper, in that way encouraging the customers to buy more of the product. Xmas offers will be made to improve sales and brand awareness among the clients.

3rd 1 / 4 (Jan-March): We will bring in New Year sales for quick creating of the sales turnover and increasing market show and brand understanding.

Last quarter(April-June):

For the first ending year you will see special deals to be produced to wholesalers and cooperation will be produced with the Supermarket to kick start the new promotional activity for previous gasp increase in the sales for the first yr ending.

(F)Marketing Research:

By by using a well designed, well performed form of marketing research and data collection, decision designers will have the best quality information accessible and you will be in a position to make informed decisions for the merchandise and the business. (Kate Notes)

It is clear from the above stated affirmation that with the well organized research and development procedure, it is possible to be proactive to the future trends in the market. Marketing research helps to gain timely knowledge and knowledge of the changes in the consumer tastes and choices and take decision accordingly.

Nestl's marketing research is one of the main element factor behind its success in a variety of product development. Nestle acquired 29 research centre worldwide by which every attempts has been made to understand and deliver product matching to domestic diet level and health requirements.

With the help of various research techniques like research, answers to the questionnaire, getting supply back form the buyer by adding additional feature in the packaging for the consumer suggestions will be used to confirm any changes to be produced in the merchandise. Marketing research provides foundation for the new product development and invention in the new market opportunity.

(2. 2)Financial matters

Financial matters are the estimated forecast of the sales and costs of the business using suitable method of statistics.

In the starting yr of operation sales income is expected 30million pound, with an average low cost price of 40p and varying cost per product 20p for items sales of 7. 5million and with the predetermined cost of 20million pound. It is anticipated to show a net lack of 5million pound in the first calendar year. The Net damage in the first yr is mainly because of the higher materials cost and heavy advertisement expenditures for the promotion and distribution of the new product on the market. However the situation is expected to improve in the second 12 months because of fewer bills on the advertisements and upsurge in the sales revenue.

At the finish of the next time it is likely to achieve period of time even point or to achieve much better than expected result by showing Net profit. The believed sales for the next year is expected to 40million pound at the inexpensive price of 40p with the varying cost at18p and fixed cost similar to the previous time at 20 million pound by providing 100 million models so that to show net revenue of 2 million.

(2. 3) Handles:

There may be time when company does not achieve the required results in the next to term, but that's not the finish of the world. You see, the end result will be compared with the budgeted or expected results and the difference may be placed onward in the assembly of the mature professionals or marketing department.

Controls are being performed for the better implementation and corporation of the marketing activities.

Implementation: Control actions have been monitored to effectively understand any deviation from the planned action, to proficiently locate the complexities for the difference in the action and actual outcome and take corrective steps. These will ensure that customer satisfaction has been given due importance and this quality expectations have been preserved.

Marketing Company Marketing firm may be created for the effective implementation of the action plan. Marketing team may be prepared by function or by geography, product, and customer.

Individual critical reflection on learning outcome

"Creating distributed value is a simple part of Nestl's way of doing business that focuses on the specific regions of the company's center business activities specifically Water, Diet and rural development-where value can best be created both for the population and shareholders".

(http://www2. nestle. com/CSV/Pages/CSV. aspx)

One of the primary reasons to think that Nestle gives value to the clients is that every function and procedure has been performed remember the nutrition, health and wellness of the individuals. Nutrition, Health and wellness is Nestl's tactical direction.

Through science structured diet product and services, emphasis has been put to improve the quality of the lives by providing look after the consumers and healh supporting. With all the opearation in almost 100 countries around the world by over 20000 employees worldwide Nestle Diet operates in basic 4 key areas.

Infant Nutrition

Weight management

Healthcare Nutrition

Performance Nutrition

Achievements from study of the elements of the marketing combine and role of different factor in achieving marketing aims.

For any business group or entity, the idea of marketing used to be given greatest importance. To become more specific most of the decisions under the marketing management is around your choice of the 4 P's of marketing combine specifically Product, Price, Place, and Distribution.

Marketing Management component provided comprehensive knowledge which is remaining unattended by the prior understanding of the subject.

I used to believe Marketing is only a technology that follows set of methods and guidelines, but at the end of this module

I came to learn that marketing isn't just knowledge but it both art and science.

The Marketing mix of the merchandise assumes that the lerner have important perception of the marketing but not in depth knowledge.

I am more likely to change my views on program of varied marketing tools as a result of creative understanding brought ahead by the component.

In between your process of learning I felt that Marketing is absolutely a very extensive theory which requires in depth knowledge and experience for the given individual to gain success in the real world.

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