KITKAT SENSES: Comprehensive Market Analysis and Marketing Mix Report

This report provides a detailed market analysis and marketing mix strategy for KITKAT SENSES, a new product from Nestle. It begins with a product description, highlighting its unique features like individually wrapped, bite-sized chocolates in various flavors. The report then delves into the UK confectionery market trends, competitive landscape, and consumer behaviors. It identifies key competitors like Cadbury, Ferrero Rocher, and Lindt, and analyzes their positioning strategies. The analysis includes segmentation based on psychographic, geographic, and behavioral factors, targeting consumers aged 10-50 in the UK market. The marketing mix is thoroughly examined, covering product, pricing, promotion, and distribution strategies. The product strategy focuses on the new flavors and packaging. Pricing includes competitive, market-oriented, and psychological approaches. Promotion strategies emphasize seasonal campaigns and social media. The report concludes by suggesting that the product's success depends on its ability to differentiate itself and capture a significant market share.

KITKAT
Market analysis and marketing mix for KIT KAT SENSES
KIT KAT
Khushbu Bhardwaj
University Name-

Table of Contents
Introduction...........................................................................................................................................1
Product Description...............................................................................................................................1
Market trends.........................................................................................................................................2
Key competitors and their positioning strategy?....................................................................................2
Current customer attitudes/behaviors in this market..............................................................................3
Main issues/opportunities......................................................................................................................3
Segmentation, Target Market and Positioning Analysis........................................................................3
Why the target market should buy the improved product. Benefits it now offers and problems it
solves?...................................................................................................................................................4
Marketing Mix.......................................................................................................................................5
Conclusion.............................................................................................................................................6
References.............................................................................................................................................7

Introduction
This report focuses on the market analysis and marketing mix for KIT KAT SENSES
– an innovative product from NESTLE. This marketing mix and market analysis of KIT Kat
Senses would assist in evaluating the possibility of the products sells and how well it will do
in market.
Product Description
In 2018, Nestlé has come up with a new product under the brand name Kitkat,
especially made for sharing with friends and family and loved ones. “KITKAT SENSES”
The new product from the brand has a different look in comparison to the earlier finger
shape, these are now individually wrapped and bite size three layered filled with flavors for
three different taste pallets. It is famous for its Breaking an image of wafer finger chocolate.
It has now come up as three flavors removing the tag of chocolate bar, and is also
available mix sharing box with all the three flavors, these flavors are, The Hazelnut Praline,
the Salted Caramel and Double Choc (Chantelle, 2018).
Hazelnut
Luxurious praline sprinkled with crunchy hazelnut pieces
Salted Caramel
Sumptuous caramel filling infused with indulgent salted flakes.

Double Choc
Rich chocolate ganaché with crunchy cocoa nibs.
Market Analysis
Market trends
The second largest market in Europe for confectionery and chocolates after Germany
is the U.K. Chocolate and confectionery market, it is estimated that an average consumption
of the UK chocolate market is between 4 KG to 10 KG per head. Since 2003, not only in
consumption, but the confectionery sale is also the highest. The chocolate market has an
increasing trend showing an annual growth rate reaching £4.83bn.
According to Mintel (2013) Britain is not partial when it comes to chocolate
consumption and buying pattern, alone in 2012, 94% consumers bought chocolates and 95%
ate the same. The buying behavioral pattern suggests that the filled bar chocolates and block
chocolates were amongst the major players.
Key competitors and their positioning strategy?
S.NO BRAND POSITIONING
1 Cadbury and
Kraft
Cadbury has positioned itself as a Symbol of festival and
occasions, a celebration treat, a carefree brand for special and
real life moments.
2 Ferrero Rocher Ferrero Rocher has positioned as a high and elite product, a
brand offering quality products, healthy and tasty, high in
nutrition.
3 Lindt Luxury chocolate brand from Swiss market for Affluent, rich
and high class of people. For whom money matters less than
taste and class.

Source: https://www.statista.com/chart/5940/top-five-uk-confectionery-manufacturers
Current customer attitudes/behaviors in this market
It has been seen, that in U.K. market sharing bags and small bite chocolates have
more sales than others, and offering on the bite to bite basis would be more preferred. In
2016-2017 more sharing products came up with just a bite size chocolate, a newer chocolate
version to candies and toffee, it also became a success.
Such as Mars came up with snicker bites, known as mars bites, Twix another
chocolate came up as Twix bites, Cadbury Launched its Dinky Deckers and Nestle apart from
Nestle Senses earlier came up with Nestle Bites, which was also a success and was in line
with the trend Mintel (2018). However, the consumers are moving towards healthier choices,
therefore, they are moving to opt for healthy and energy bars, in this market, launching bite
size chocolate will give them a feel of chocolate to satisfy their sweet tooth with a small
calorie intake. It will be easier to avoid eating a whole bar of chocolate having more than
double calories (Mohd, Idris, and Momani, 2013).

Main issues/opportunities
The future market growth and consumer pattern will depend on the changing pattern
of consumer buying behavior and how the chocolates are prepared, their impact on the
environment and health. Due to this lobby being created by health conscious consumers and
healthy eating community the chocolate and confectionery market is struggling to stay with
innovation and opportunity to survive by reducing the calorie count, reducing the size and
making filling with nuts and nutrition. Therefore the Organic Chocolate Market is coming as
a recent trend which is again an issue for a non-organic chocolate brand (Rashid, and Ghose,
2015).
Segmentation, Target Market and Positioning Analysis
Segmentation: The entire market can be divided on the basis of Psychographic, geographic
and behavioral segmentation.
Psychographic Segmentation: Kitkat Senses is segmented on the basis of size, the product
will enter in the market with small bite size chocolate in order to maintain the calorie count
along with satisfying the sweet craving.
Geographic Segmentation: The product is made and distributed in the UK market looking at
the number of consumers and booming confectionery markets. Initially the product will
however be launched in Tesco (Rashid, and Ghose, 2015).
Behavioral Segmentation: It has a tag line which the company is using nationwide, “Make
the most of your break”, this time the positioning is to have a break with friends and family
with the assortment pack of 20 bite size KitKat.
Target Market
The target market is aimed at people living in U.K. The test market will be Tesco and
further moving to the U.K. and entire nation and other countries. Target customers will be
above 10 years of age and till approximately 50. Children below the age of 10 must be eating
more healthy treats and fruits, similarly, people above 50. For people above the age of 50
suffer from diabetes and heart diseases, therefore would require less sweetened choices
(Fernandes, Ferreira, and Moura, 2016).

The college and school students and working class people will be targeted; therefore
the pricing will be kept according to the market avoiding the pricing to go too high.
Positioning
Source: https://www.statista.com/chart/5940/top-five-uk-confectionery-manufacturers/
“KitKat Senses” is launched as a premium confectionery product in the U.K. market,
providing people the same product in a new packaging, removing the old concept of the
finger chocolate bar.
As it can be seen from the data above, the market for chocolate sharing bags and chocolate
Multipacks is small and has a scope to be explored further and tap the non users. Therefore,
the product is launched in the form of sharing bags, However, the Chocolate block market is
large but, KitKat original with finger sticks is already tapping the stated block market.
Therefore, the positioning will be done on the basis of
1. For sharing with friends and loved ones

2. Launched in the market during the holiday season to give the consumers a reason to buy and
increase the use of a new and innovative product by the same old established brand in a new
flavor.
3. The box makes it a perfect gift, on special occasions to fight against the Cadbury gift
products (Foodprocessing, 2018).
4. Small munching items post dinner
Why the target market should buy the improved product. Benefits it now offers and
problems it solves?
1. The small size will provide the satisfaction in low calorie
2. The assortment pack of 20 in a box will be a great gift for the loved ones
3. The new kitkat senses is introduced to share it while enjoying the most special moments
(Schmidt, Spann, and Zeithammer, 2014).
4. The price is also affordable being in a premium segment, 3.99 Euro per 100g.
Marketing Mix
Product
Kitkat senses have dropped all the expectations and tried moving beyond the
expectations by making changes in the older version. The product now will be available in
three different variants away the original chocolate wafer flavor. The product will new
packaging altogether from bars to box packaging, which will open in an easy and convenient
sharing plate. The consumers will find a different taste and look from their favorite finger
shape chocolate wafer brand, however, the tag line remains the same as make the most your
break, but this time, it must add along with your friends. A chocolate wafer has now turned
into a snack.
Pricing
There will be 20 small bite size chocolates in a box for £3.99 starting from Tesco to
move nationwide (IMOGEN, 2018).

Out of multiple pricing strategies in the market, the company will use the following
strategies.
1. Competitive pricing
2. Market oriented pricing
3. Psychological pricing
A combination of strategies will work best for the brand,
The Competitive based marketing strategy will be used, keeping the current kitkat
pricing in mind, Market oriented pricing will have to be followed as well, because this is a
new and innovative product to break an old image, the switching cost is low therefore, a high
price could be a danger. Adding psychological pricing on the above strategies can be
advantageous, as it has been seen that psychology pricing affects consumer buying behavior
(Siguaw, and Simpson, 2015).
Promotion
The chocolate industry is considered to be highly seasonal despite its sales throughout
the year, but the boost in sales comes during the holiday season during December and
January. Therefore, most of the promotional activities will be before Easter and Christmas
Eve to seek a sharp increase in sales.
1. The promotional tools will include
2. The advertisements during prime time
3. The company has been using the celebrities for promotions, the same will be continued.
4. The social media tools such as direct purchase from Instagram and Facebook will be made
available.
Distribution Strategy
The sales of confectionery product is highly dependent on the availability and stock in the
market, therefore, the product will be available in all the retail stores, and other distribution
channels such as online selling platforms to promote impulse purchase.

Conclusion
After assessing all the details and the marketing mix of the newly introduced Kit Kat
product, it could be inferred that company by following the customized products and product
differentiation strategy could easily win over the market. This will help company grab more
market share and increase the attraction of its newly offered chocolate in the market.

References
Chantelle. S., (2018). Nestlé launch Kit Kat Senses sharing chocolate box and you can buy
them from these major supermarkets [Online]. Retrieved from
https://www.mirror.co.uk/money/shopping-deals/nestle-launch-kit-kat-senses-
12075410
Fernandes, C., Ferreira, M. and Moura, F., (2016). PPPs—True Financial Costs and Hidden
Returns. Transport Reviews, 36(2), pp.207-227.
Foodprocessing., (2018). Nestlé launches KitKat Senses box in UK and Ireland [Online].
Retrieved from https://www.foodprocessing-technology.com/news/nestle-launches-
kitkat-senses-box-uk-ireland/
Imogen. B., (2018). KitKats go posh! Nestlé is to launch a new luxury version of the famous
wafer treat (and it looks like a deluxe Chunky bar) [Online]. Retrieved from
https://www.dailymail.co.uk/femail/food/article-5426393/Nestl-launches-posh-
luxury-KitKat-Senses-bars.html
Martin. A. (2016). Top Five Confectionery Manufacturers [Online]. Retrieved from
https://www.statista.com/chart/5940/top-five-uk-confectionery-manufacturers/
Mintel., (2018). chocolate-confectionery-uk-april-2013 [Online]. Retrieved from
https://store.mintel.com/chocolate-confectionery-uk-april-2013
Mintel., (2018). Mintel Chocolate Confectionery Overview [Online]. Retrieved from
https://store.mintel.com/us-chocolate-confectionery-market-report.
Mohd, W., Idris, S. and Momani, R.A., (2013). Impact of environmental dynamism on
marketing strategy comprehensiveness and organizational performance. International
Journal of Business and Management, 8(9), p.40.
Rashid, S. and Ghose, K., (2015). Organisational culture and the creation of brand identity:
retail food branding in new markets. Marketing Intelligence & Planning, 33(1), pp.2-
19.
Schmidt, K.M., Spann, M. and Zeithammer, R., (2014). Pay what you want as a marketing
strategy in monopolistic and competitive markets. Management Science, 61(6),
pp.1217-1236.

Siguaw, J.A. and Simpson, P.M., (2015). A marketing plan for marketing instruction: A
satirical look at student comments. In Creating and Delivering Value in
Marketing (pp. 129-133). Springer International Publishing.