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Nestle Business Case Study

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Nestle Business Case Study
Kit Kat: Revitalising a Brand Leader
A Nestlé case study
Page 1: Introduction
All products have a life-cycle. It starts with preparations for the product 's launch, followed by the launch itself. Some products are an immediate success; they capture public imagination. Often this results from well targeted, exciting promotional and advertising activity and from careful market research that has identified a genuine gap in the market. Other products take longer to come to consumers ' attention, and longer still to become popular. Some new products flop, and soon disappear from sale.
The growth stage comes next. Growth can take weeks or months (e.g. the latest fashion clothes) or years (e.g. the typical packet or canned food and drinks found in supermarkets). Eventually the maturity stage is reached, where sales of the product and consumers ' level of product awareness are both high. At this stage, products risk going into decline, largely because they have become too familiar and are seen as less exciting than recently launched alternatives.

Page 2: The life-cycle of a product
Marketing departments are expected to ensure that products do not go into decline. Mature products need new life injected into them, to keep the buying public interested and aware of the product 's benefits. This case study provides a classic example of how to put new life into a favourite, leading brand: Kit Kat.
Page 3: Why Kit Kat needed revitalising
Kit Kat is the UK 's best-selling chocolate bar. However, in the competitive modern world consumers ' tastes continually change. As a result, even the most popular icons have to re-invent 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 favourites 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

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