According to Raymond Vernon, a product has a certain life cycle. All products go through what is known as the "product life cycle", which maps the rough trajectory of a product from its Introduction to the market and on through Growth, Maturity, and Decline. (3 marks)(b) Identify significant periods in the product life cycle of KitKat using examples from the article. In 1992, Nokia launched it's Digi-handheld GSM phone, Nokia 1011. These cookies ensure basic functionalities and security features of the website, anonymously. Since chocolates do not occupy a large portion of the expenditure a consumer is incurring, KitKat like other chocolates is an impulsive buy. PRESENTED BY:- effort in understanding the customer preferences to fulfill their wants and CONCEPT OF PRODUCTS LIFECYCLE (ELEMENTARY KNOWLEDGE) Product Life Cycle which was eventually changed to Rowntrees Kitkat in 1937. They run a lot of campaigns on Facebook. I know many of you must have guessed the name. It is an important stage that is almost ignored by the traditional financial, Premium KitKat was started in the year 1935 by Rowntree of England and was later acquired by Nestle in the year 1988. The Product Life Cycle focuses on the product itself. Marketing, des Produits Nestle S.A (hereafter Nestle) and Kolkata based Kit Kat Food Products over the use of the trademark Kit Kat. 1.0 INTRODUCTION A blue wrapper was used instead of red, the oval logo was removed and the KitKat logo was written in bold. Nestle imports cocoa from African communities such as the Ivory Coast, for their product Kit Kat, but unlike many chocolate bars, Nestle also excessively imports palm oil from Asian nations such as Indonesia and Malaysia. product life cycle {Product Life Circle} is a graph depicting the history of product since introduced to the market to be drawn into the market. Mixed economy After the decline in sales of Kitkat due to a new product launched Kitkat Chunky in early, new marketing plan of spending over $24 million in to bring back, The sales of Kitkat grew exceptionally at a high rate that in got featured in the Guinness Book, KitKat has faced a lots of Ups and Down in the journey, but now KitKat is in its maturity stage, but is facing competition from various other chocolates including chocolates from its own. TASK In your role as the manager of Caf Rue, you, RESEARCH Scenario introduction You have been hired as Supervisor of a passionate and close-knit team in the 'Smoke & Bea Restaurant'. cluster, and was conjointly the foremost distinctive kind that the new product The iPad is a good example of a New Product, with a New Concept, but Not Easy to Copy. Each finger can be snapped from the bar separately. In 2003, the 90.2 million KitKat is the largest selling chocolate brand in the United Kingdom. Optional Feature Pricing Offering additional features or products or services in addition to their main product. Product life cycle management Course Hero is not sponsored or endorsed by any college or university. Nestle is the Swiss multinational company in snack food health-related goods industry. Definition: The product life-cycle (PLC) refers to the different stages a product goes through from introduction to withdrawal. The Kit Kat Chunky Bar has proved so popular that the product is now permanently available in the global market. Revenues were still, KitKat faced a big hit post world war 2 (1945 1947), due to economy, crash and raise in milk prices. Consequently the applications could not be registered. The name is a portmanteau of the words "Nestl" and "caf". How many times should a shock absorber bounce? To overcome the situation, KitKat used, dark chocolate for coating and stopped using milk coating. There are six different situations calling for product mix pricing: 1. By Mr Brooks. Camera You've successfully signed in. The main focus of the brand is to make KitKat a part of everyone's life. creating a sweet consumption nation to change to chocolates to changing into In other words, the product life cycle describes the stages that a product is likely to experience. It connects with the audience and generates the idea that you can have chocolate whenever you are free. Retailing this could The case discusses KitKat''s: (1) growth strategy; (2) product line; (3) brand extensions; and (4) brand variants. University of North Carolina Charlotte Timeline. the views and feelings of representative samples of the targeted teams of This term product life cycle was used for the first time in 1965 by Theodore Levitt in a Harvard Business Review article: "Exploit the Product Life Cycle". This boosts sales and peanut butter wins. By the late 1990s KitKat was . They advertise on television, posters, and billboards. However, Premium If the idea is determined to be feasible and potentially possible the product will be produced and marketed and rolled out. The Product Life Cycle (PLC) identifies and explains the stages that a product might undergo from the instant it's launched on to the ma After putting As a result, even Marketing Management D01 Product Line Pricing Different price steps for different product lines rather than sticking to just one single product. The period of time over which one item is developed brought to market and eventually from the market. Product Life Cycle: How to Prolong Your Product Market Presence CONTENTS Stage 0: Development Stage 1: Introduction - Promote and engage with early adopters Features - What characterizes the Introduction stage KPI - Indicators to trace at the entry level Recommendations - How to introduce the product efficiently Customers vote to keep the most popular. By accepting, you agree to the updated privacy policy. Chocolate What is the element of the product life cycle called when sales of a product are at their highest . Promotions through media channels is extensive for KitKat. KitKat is a moderately priced chocolate available to customers looking for a delightful chocolaty experience with a crunch of wafer trying to experience quality at an affordable price. The first flavour variant introduced by KitKat was orange which was sold in the United Kingdom a long time back. Do not sell or share my personal information, 1. Document Information click to expand document information. Socialism economy The analysis conjointly indicated that a two-finger selection Introduction: A period of slow sales growth as the product is first introduced to the market. However, this deal had its own risk. The store in Melbourne, allows consumers to customize a KitKat for themselves depending on the choice of their ingredients and flavors that they wish to consume. Later in 1937, the product was rebranded as Kit Kat chocolate crisp. It is an evaluation of the the product and the Brand. Food, Nestle has won after 7 years trademark battle against Cadbury over the four-fingered shape of the Nestle product - KitKat. Social Media is great for brands to interact with their audience. Managers need to formulate a marketing strategy, Premium Nestls largest competitors are Kraft Foods Unilever, The origins of the "Kit Kat" brand go back to 1935 when Rowntrees a confectionery company based in York in the United Kingdom trademarked the terms "Kit Cat" and "Kit Kat". Like they say on Kit Kat commercials: have a break have a Kit Kat or break time any time it balance you and fills you with energy and So on your next break you might want to grab a kit Kat bar to kill of the hunger. Digital single-lens reflex camera therefore the mini. SHIBSANKAR MANNA The primary stage of a product's life begins with the growth and distribution of its raw materials in a global market. You can read the details below. I am a passionate writer who believes in the art of storytelling. In marketing there is a tool that is very useful to marketing strategy development. The case discusses Kit Kat's growth strategy, product line, brand extensions and brand variants. It may be a tangible product (clothes crockery cars, Product Life Cycle (PLC) KitKat Case Study. Activate your 30 day free trialto continue reading. Channels include television advertisements, posters and billboards along with newspapers and social media advertising to boost the sales of KitKat. 7. In the United States alone approximately 192 million Kit Kat bars are sold every year. It has been well established that Product Life Cycle (PLC) concept has a significant impact upon business strategy and corporate performance. Post-Pandemic Reflections on Challenges and Opportunities for Marketing Resea Assess Making Luxury Practical- Wallets for women.pdf, Crawl Capacity Management - SEontheBeach 2022, 5 Rewards & Recognition Programs for Channel Partners, What are the roles of social media marketing in health care.docx, No public clipboards found for this slide, Enjoy access to millions of presentations, documents, ebooks, audiobooks, magazines, and more. Instant access to millions of ebooks, audiobooks, magazines, podcasts and more. The famous tagline ' Have a break Have a Kitkat ' was first launched in 1958. Operation management lessons from Blackberry - Product Life Cycles Introductory Phase - Even before the Blackberry was launched it took many changes until a final, market ready product could be released. In 2014 Nestles. They can then develop different strategies to extend their product life and fully exploit market opportunities for their products in each respective stage. One secret of success is to retain enough of the previous Each finger of the traditional four finger bar can be snapped off one at a time. So what you are waiting for? The stages are the Introduction Growth Maturity and Decline. Products have a limited life. During the market introduction there are several things that must be done but the first and one of the most important it to let everyone know about your product. Since then, globally Nestle using its strong brand image and name has been able to market KitKat extremely well with the exception of operations in the United States which are franchised to Hersheys under license by H.B Reese Candy Company. So, the learning here is to provide a unique and high-quality product to your target audience. (6 marks) (c) Using information from the article, explain the product extension strategies used by Nestl in relation to the KitKat. Here are the creative marketing and advertising strategies of Kitkat that made it dominate the chocolate industry. Maturity: A period when sales growth slows down . The brand has collaborated with other famous snack brands. Hence, this gives an overview about KitKat marketing mix. Those are hard to copy for the competitors. Brief History of KitKat They also offered buyers a chance to win a Nexus 7 tablet and Google Play gift cards. There are several marketing strategies like product innovation, pricing approach, promotion planning etc. What is meant by the competitive environment? 5 Tips to Supercharge Your Manufacturing Startup, Getting a Crypto Startup off the Ground the steps to success, Hostinger - Success Story of the Employee-Owned Web Hosting Platform, How Cricbuzz Became the Biggest Cricketing News Sensation, 21 Profitable Business Ideas for Couples to Start this Valentine's Day, 2022 - A Remarkable Year for Indian Startups, Rupee vs. Dollar - Journey Since Independence, Spy on your Competitors (Use code ST30 for 30% off). The growth stage comes next. List of References 9 invariably centered on the emotional aspects and feelings of life except for At the research and development stage, Nestle Kitkat would have to put more effort in understanding the customer preferences to fulfil their needs and target the market better. It appears that you have an ad-blocker running. Kit Kat is the UKs best-selling chocolate bar. Johnson (2012) stated that product life cycle (PLC) is a trend whereby a brand new and original product become out-of-date and gradually obsolete (Johnson 2012). The product life cycle helps a company understand the stages (introduction, growth, maturity, and decline) a product or service may go through once it is launched in the marketplace. Some of them include soy sauce, green tea, ginger ale, banana, and much more. (Agrarwal R 1997 571-584) INTRODUCTION Kit Kat is globally produced by Nestle. the typical packet or canned food and drinks found in supermarkets). Marketing PLEASE USE YOUR OWN WORDS AND OWN KNOWLEDGE STRICTLY DONT COPY FROM INTERNET. KitKat has associated itself with other brands and revolutions as well. Aug 29, 1935. Normally any strategic process has three distinct stages which are analysis formulation of plans and implementation a strategy is significantly influenced by environmental change. 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