Market Potential of Nestle KitKat Ruby in Germany: A Business Project

Desklib provides past papers and solved assignments. This project analyzes Nestle KitKat Ruby's market potential in Germany.

MANAGING A SUCCESSFUL BUSINESS PROJECT
NESTLE KITKAT

Table of Contents
INTRODUCTION........................................................................................................................1
TITLE......................................................................................................................................... 2
A) PROJECT PROPOSAL.............................................................................................................2
PROJECT BACKGROUND.......................................................................................................2
PROJECT AIMS AND OBJECTIVES..........................................................................................2
B) PROJECT MANAGEMENT PLAN............................................................................................3
WORK-BREAKDOWN STRUCTURE AND GANTT CHART.........................................................5
C) SMALL SCALE MARKET RESEARCH........................................................................................7
QUALITATIVE RESEARCH...................................................................................................... 7
QUANTITATIVE RESEARCH....................................................................................................8
ACCURACY AND RELIABILITY OF APPLIED RESEARCH METHODS........................................10
CRITICAL EVALUATION OF PROJECT MANAGEMENT PROCESS AND APPROPRIATE
RESEARCH METHODOLOGIES.............................................................................................11
D) ANALYSIS OF FINDINGS AND CONCLUSIONS.....................................................................12
CONCLUSION...................................................................................................................... 17
E) RECOMMENDATIONS.........................................................................................................18
EVALUATION OF THE SELECTION OF APPROPRIATE TOOLS AND TECHNIQUES FOR
ACCURACY AND AUTHENTICITY TO JUSTIFY RECOMMENDATIONS....................................18
CRITICAL EVALUATION AND REFLECTION ON THE PROJECT OUTCOMES, DECISION-
MAKING PROCESS AND CHANGES OR DEVELOPMENTS OF THE INITIAL PROJECT
MANAGEMENT PLAN......................................................................................................... 19
F) REFLECTION ON RESEARCH AND OWN PERFORMANCE.....................................................20
M4 EVALUATION OF THE VALUE OF PROJECT MANAGEMENT PROCESS AND USE OF
QUALITY RESEARCH TO MEET THE STATED PROJECT OBJECTIVES.....................................21
REFERENCES........................................................................................................................... 22
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INTRODUCTION
Globalisation has changed the way businesses are operated and nurture. With increasing
globalisation, business organisations are facing an economic and financial shift and
increasing competition. This has led the companies to continuously innovate with its
products to remain competitive in the market. Thus, in the context of a multinational
organisation Nestle, The project will focus on launching an innovative product of a nestle
Kitkat "KitKat Ruby" in Germany after is a huge success in the UK market to maintain global
competitiveness of the company (Nestle, 2018). The project will involve all the essential
elements of a successful project to support the successful accomplishment of the aims and
objectives of the project.
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TITLE
“Identifying and determining the market potential for the new product of
Nestle KitKat, “KitKat Ruby” to successfully launch it in Germany”
A) PROJECT PROPOSAL
PROJECT BACKGROUND
Nestle is a food and beverage brand with the presence across all the five continents of the
world. The company is based in Vevey, Switzerland. It is one of the largest food companies
in the world. Its portfolio covers almost every food and beverage category involving baby
foods, chocolate, and confectionery, bottled water, cereals, coffee, dairy, drinks, ice-cream.
Petcare, healthcare, food services, Drinks, and frozen foods (Nestle, 2019). KitKat is one of
the most renowned brands of nestle. KitKat is offered in many flavours, including Dark
chocolate, milk, and white. Recently, the company has successfully introduced its new pink
KitKat made with ruby cocoa beans, “KitKat Ruby” in the UK market. With its huge success in
the UK market, the company has planned to launch the product in the other European
countries (Nestle, 2018. The next country that is selected to launch the product is Germany.
This project would enable the company to identify the potential for its new product in the
market of Germany.
PROJECT AIMS AND OBJECTIVES
This project is aimed at identifying and determining the market potential for the new
product of Nestle KitKat, “KitKat Ruby” in the market of Germany. Through this project, the
market demand and consumer's interest in the pink wafer bar made with ruby cocoa beans
will be determined to ensure the successful launch of the product into a new market.
 To analyse the customer demand for wafer bar in Germany
 To determine the current level of competition within the confectionary industry in
Germany
 To identify the market potential for ruby cocoa bean bar “KitKat Ruby”
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B) PROJECT MANAGEMENT PLAN
A project management plan is a formal document that contains all the essential elements of
a project to successfully execute, monitor and control project activities to meet the set aims
and objectives of the project (Burke, 2013). The key elements of this project are:
COST:
The total budget for launching a product in the new market would cost the company at
around £2-2.5 million. The cost structure is described below:
Table 1: Cost of the Project
ACTIVITY COST
Setting of Goals £1,000
Market Research planning £400,000
Conducting qualitative
research
£100,000
Conducting
primary/quantitative
research
£500,000
Accumulating research
data
£50,000
Analysing research data £200,000
Obtaining information and
conclusion
£50,000
Launching the product £700,000
Total £2,001,000
SCOPE:
This project would support the Nestle KitKat in obtaining relevant information about the
demand and trends in the market to successfully launch “KitKat Ruby” in Germany. It will
support the company in formulating an effective launching plan to achieve higher growth in
the market. However, there is a lack of time that may affect the quality of the project
outcomes.
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TIME:
This project is set to be completed within the time limit of 8 weeks from 15 th April to 1st June
2019. A milestone schedule is formulated to complete the project within the set time
(Kerzner, and Kerzner, 2017).
Table 2: Milestone Scheduling
Milestone Date Outcomes
Complete project plan 17Th April 2019 Preparation of complete project plan
Qualitative Data collection 4th May 2019 Collection of qualitative information
relating to project theme
Quantitative Data Collection 18th May 2019 Identification of market potential in
Germany
Analysis and conclusion 1st June 2019 Identification of related data and
information for making a further
decision
Launching of product 8th June 2019 Successfully launching the new product
in Germany
QUALITY: Project quality is maintained by applying the techniques of quality assurance and
quality control (Lock, 2017).
COMMUNICATION: the information and feedback during the project will be exchanged and
communicated through using E-mails, fax, instant messaging applications, and calls. Regular
meetings will be held to monitor the project progress.
RISK: this project is exposed to certain risks like lack of time, ineffective budget planning and
technical errors that will be mitigated with a proper risk management plan.
RESOURCES: the major resources required for this project are funds, manpower and other
essential equipment and materials (Kerzner, and Kerzner, 2017). A team of around 40-45
people will be required to complete the project effectively.
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WORK-BREAKDOWN STRUCTURE AND GANTT CHART
The below presented work-breakdown structure has classified the project activities into
different working groups for effectively controlling and monitoring the project activities
(Devi and Reddy, 2012).
Figure 1: Work-Break Down Structure
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Work-breakdown
structure
Project planning
Setting of project
objectives
Project
management
plan
Small-scale
research
Qualitative
research
Quantitative
research
Analysis and
conclusion
Deciding
promotional
strategy
Product
promotion
Launching of the
product

GANTT CHART
This Gantt chart has graphically represented the entire project activities against the time
schedule so that the members can efficiently complete the project activities at the right
time (Lock, 2017).
Table 3: Gantt Chart
Activity/weeks 1st 2nd 3rd 4th 5th 6th 7th 8th
Project Initiation
Market Research planning
Conducting qualitative
research
Conducting
primary/quantitative
research
Accumulating research data
Analysing research data
Obtaining information and
conclusion
Launching the product
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C) SMALL SCALE MARKET RESEARCH
Small-Scale market research is set to perform for identifying and analysing the market
trends and potential for successfully launching “KitKat Ruby” in Germany. The methods of
qualitative and quantitative research are applied to obtain an in-depth understanding and
knowledge to successfully aims the set aims and objectives of the project (Collis and Hussey,
2013).
QUALITATIVE RESEARCH
It is exploratory in nature and is used in getting an opinion, views about the underlying
subject of the topic in an appropriate manner. The main motive of this type of research as
defined by Saunders, et al. (2012) is to collect information about any given topic without
focusing on its measurement part. As it is less structured in nature, it is difficult to provide
an accurate result for the researcher. A method of the literature review is applied for
obtaining quantitative data.
As per the reports of Blair (2017), Nestle is utilizing various procedures to collect the data
for providing good research about its market value before launching of its new product. The
study has shown that with the help of globalization, the company has been utilizing various
research methods so as to create awareness among its customers about its products in an
effective and appropriate manner. From the research of Panigrahi and Chaudhury (2015), it
was revealed that Nestle is trying to enter in the confectionery market of Germany and in
this process; it has conducted a wide variety of research to identify whether its product
would be able to sustain in the competitive market of the Germany or not.
Miah et al. (2015) have found that some form of the interview was conducted with the
management of the Nestle as well as from its employees so as to get relevant information
about the market potential of its new product in an effective and efficient manner.
Raperport, (2016) has stated that KitKat is the favorite brand of the nation. After this Twix is
the most definitely best brand in Germany. Sainsbury polar bars and Penguin are some
other well-known Wafer Bar in Germany that could create competition to KitKat. The
Germany Confectionary market is the Third Largest confectionary industry in the world that
is driven by strong demand from middle-class consumers. The confectionery market is
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annually expected to grow by .2% within next five Years. There is great competition in the
industry with the presence of so many local and global brands.
QUANTITATIVE RESEARCH
The quantitative research is done by applying the method of a questionnaire survey to
identify the customer’s interest and potential market towards the product made with Ruby
Cocoa Bean. The questionnaire survey will be performed among the population size of 50
with a set of 5-6 closed-ended questions. The survey will be conducted among random
customers at the mall in Germany. A sample survey is presented below;
 Did you like the wafer bar?
o Yes
o No
o Sometimes
 Which wafer bar brand you prefer the most?
o Knoppers
o Twix
o KitKat
o Others
 Would you like to try some new colours and taste in wafer brand?
o Yes
o No
o Maybe
 Would you give a try to KitKat made with Ruby cocoa bean?
o Yes
o No
o Maybe
 Is there any wafer brand in your country that provides Chocolate made with Ruby
Cocoa Bean?
o Yes
o No
o No idea
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ACCURACY AND RELIABILITY OF APPLIED RESEARCH METHODS
The combination of qualitative and quantitative research method is applied in this research.
The qualitative research is carried through applying the method of literature review and the
quantitative research is carried through applying the method survey questionnaire
(Neuman, 2013). The literature review has provided a significant understanding of the
current level of competition in the confectionary industry of Germany. Through this, the
competitiveness of KitKat in Germany is clearly analysed and identified through accessing
relevant sources like industry magazines, organisational reports, and news. On the other
hand, the method of questionnaire survey has been conducted among the real customers
that have provided accurate knowledge about the customer's interest in the Kitkat's new
product in Germany. Thus, the collected data from the literature review and questionnaire
survey has provided reliable and accurate information for formulating further decisions for
launching the product in Germany.
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