1.

1 Introduction:

Nestlé is the world’s largest consumer-packed-goods company with its

headquarters founded in Vevey, Switzerland. Nestlé was a company that was
formed after merging two companies i.e., Anglo-Swiss milk company which
was owned by brothers George Page and Charles Page and was formed in
1866 and Farine Lactée which was formed by Henri Nestlé in 1866. During
the First world war and the Second world war the company grew
significantly, eventually expanding its offers and products beyond condensed
milk products and infant/baby formula products. Today Nestlé has a large
variety of products to offer like infant food, ice creams, chocolates, and
beverages like coffee and bottled water. The product of Nestlé that has been
chosen to work on for this company project is Kit Kat. There are more
than 200 different flavours of kit Kat in japan. Kit Kat was launched in 1911
by the name of “Kit Cat” by a company named Rowntree a confectionary
company which was based in York, United Kingdom. It was discontinued
after 1930’s for a while as the company gave promotional importance to other
products. It eventually came back in the market in 1939. It picked a global
name by the 1950’sand was later acquired by Nestlé in June 1988 through the
purchase of Rowntree. This gave Nestlé a global control over the brand
except it had no control over the North American region as The Hershey
Company already acquired the license to produce KitKat all over North
America. In short, Kit Kat is a chocolate-covered wafer bar confection
created by Rowntree's of York, United Kingdom, and is now produced
globally by Nestlé, which acquired Rowntree in 1988, and closed it in 2006,
with the exception of the United States where it is made under license by
H.B. Original Kit Kat ingredients unless otherwise stated, listed by
decreasing weight: milk chocolate (sugar,
milkingredients, cocoabutter, cocoamass, wheypowder, lactose, soya lecithi
n, polyglycerol, polyricinoleate, natural flavour), wheat flour, sugar,
modified palm oil, cocoa, sodium bicarbonate, soya lecithin, yeast, and
natural flavour.

1.2 Objective Of The Study:

SWOT Analysis of Samsung company is instrumental in strategy

formulation and selection. It is a strong tool, but it involves a great subjective
element. It is best when used as a guide, and not as a prescription. Successful
businesses build on their strengths, correct their weakness and protect against
internal weaknesses and external threats. They also keep a watch on their
overall business environment and recognize and exploit new opportunities
faster than its competitors.

 To make a summary analysis of external and internal factors.

 To identify key items for the management of the organization, which
involves establishing priorities for action.
 It is through analysis that we can determine the diagnosis of the
company: strengthening the positive points, indicating which points should
be improved, chances of growth, increasing opportunities, etc.

1.3 Scope of The Study:

When you are conducting a SWOT analysis, you should keep in mind
that it is only one stage of the business planning process. For complex issues,
 you will usually need to conduct more in-depth research and analysis to make
decisions. Keep in mind that a SWOT analysis only covers issues that can
definitely be considered a strength, weakness, opportunity or threat. Because
of this, it's difficult to address uncertain or two-sided factors, such as factors
that could either be a strength or a weakness or both, with a SWOT analysis
(e.g. you might have a prominent location, but the lease may be expensive).

 Straightforward and only costs time to do.

 Produces new ideas to help take advantage of an organization’s strengths
and defends against threats.
 Awareness of political and environmental threats allows an organization to
have response plans prepared.

1.4 Research And Methodology:

This research is been conducted to survey the product performance and

buying behaviour of consumer in selection of chocolates. The relevance of
the study is to survey the product performance and buying behaviour of a
famous brand Kit Kat chocolate– Nestle, which are consumed by people of
all ages. During this research I have interacted with response of people of
India as regards to the Kit Kat chocolate than other and its big competitor in
the market Cadbury. This research is to know the performance and the
strength of the firm as well as the concept of the firm as regards to the
marketing strategy and also which particular brand of chocolate is most
preferred by people of different age groups.
 Secondary data are pre-published and research data’s collected from
different websites, journals, newspapers, company research papers.
 These documents and data are very useful for the theoretical, conceptual
and organizational background analysis.
 Detailed analysis of data’s is made by plotting different graphs and tables
which can be easily understandable.
 Then by observing these graphs we have made our conclusions and
recommendations.

1.5 Limitation Of The Study:

In attempt to make this project authentic and reliable, every possible
aspect of the topic was kept in mind. Nevertheless, despite of fact constraints
was at play during the formulation of this project. The main limitations are
as follows:

 Can not obtain sufficient data

 Can generate too many ideas but not help you choose which one is best
 Can produce a lot of information, but not all of it is useful
 Does not consider the product weight
 Does not provide urgent issues that the firm is presently facing
 Problems may be created at ground level for the planning made on the
basis of strength/threats
 Attiya Kanwal (2011) on his study “Consumer preference of
International brands over local brands” aimed at determining consumer
preference of international brands instead if national or local brands.
Consumer evaluates products based on information cues, which are intrinsic
and extrinsic. If a consumer is satisfied with a product, he will buy it again,
become loyal and over time develop a relationship with the brand. There are
various factors which influence consumer purchase decision. The price of a
brand plays a fundamental role in the consumer’s choice of brand. If a brand
is priced too high then a consumer will avoid it. The price of a brand is an
indication of the quality of the brand as well. The country of origin of
products is another cue used as a sign of quality of a product. Products from
developed countries are perceived to be of better quality. Other factors
include fashion, family and friends, brand name, availability, advertising
campaigns etc. The sample for this research is taken from Islamabad and
Rawalpindi. Simple random sampling was the technique used and the sample
size was 100. Data collected for research was through a questionnaire, which
was distributed among both males and females of various age groups and
income levels. Calculations were then analysed and interpreted using
percentage of respondents and frequency distribution. Consumers are seen to
give preference to international brands if asked to choose between an
international brand and a national brand. Consumers regard international
brands to be of better quality, more durable and reliable. Furthermore, they
are more price and quality conscious and not very brand loyal. Local
companies need to emphasize on the quality of their products in
advertisements and their advertisements need to be more targeted and up-beat
to attract the younger market segment.

 Prof. R.C.S. Rajpurohit and Dr. M.L. Vasita (2011) on their study
“Consumer Preferences and Satisfaction towards Various Mobile Phone
Service Providers an Exploratory Study in Jodhpur City, Rajasthan”
conducted that on 250 mobile phone users of various mobile phone service
providers such as Vodafone, Airtel, BSNL, Reliance, Idea, Tata Indicom and
few other players. The results derived from the study indicate that the factor
that induces the consumers to buy a particular mobile phone operator is call
tariffs followed by network coverage and brand image. The study also
highlights that majority of respondents are satisfied with the value-added
services offered by their mobile phone service providers. The findings
derived from the study will be helpful for mobile phone service providers in
deciding and implementing their sales strategy for the promotion of mobile
phone services.

 U. Thiripurasundari and P. Natarajan (2011) on their study

“Determinants of Brand Equity in Indian Car Manufacturing Firms”
stated that brands have become increasingly important components of culture
and the economy, now being described as “cultural accessories and personal
philosophies”. Brand Building process is a value addition technique which
projects the image of the product, the company and the country at large. To
study the problem effectively, car industry is chosen taking into the account
the emergence of many new brands of the car product in the recent past. The
objective of the study is to describe the measuring Models of Brand Equity
applicable to Car Industry. The results of the study show that brand
preference and brand loyalty play an important role in creating brand equity.
These components of brand equity must be coherent in their actions so that
consistent image of the firm is realized and value by customers. This paper
gives an empirical outcome of the determinants of brand Equity with special
reference to Indian Car Industry.

 Dr. Ramesh Sardar (2012) on his article “Brand Preference of

Passenger Cars in Aurangabad District” detailed that the analysis of
marketing, a consumer behaviour and brand preference of passenger car is
carried out in Aurangabad district of Maharashtra state. As a result, focusing
on an industry where brands, marketing knowledge and distribution networks
have been important determinants in the growth and survival of firms. It
reaches distinct conclusions. The article illustrates the analysis and
interpretation of data. Finally it concludes with findings and
recommendations of the study which may be useful for general public as even
the manufacturers and dealers can understand the dimensions reflecting brand
preference of passenger cars and impact of all these factors on customer
satisfaction.
 Dr. Shendge (2012) on his study “A Comparative Study of Consumer
Preference towards Cadbury and Nestle Chocolates with Special
Reference to Navi Peth Area in Solapur City” viewed that Chocolate is
liked and eaten by all age group of people, it is the most popular and most
favourable and a demanded product structure among other Nestle product.
 Kaberi Bhattacharyya (2011) in his study “The Role of Media in
Influencing Customers’ Brand Choice: Some Observations” told that a
brand has arrived in the market, is alive and kicking or simply pulling on.
Similarly, generations of customers are made known that a brand has still
remained relevant in the changing context of time and space. Leveraging on
the charm of audio and video, brands engulf our senses and succeed in
becoming an intrinsic part of our lives. While the trust earned by them is
directly proportional to their attributes and 24 functionalities, the buzz
created around the brands by the media helps them break the clutter of
competition and stay vibrant in the consumers’ minds. Creative juices give
birth to myriad themes, processes, colours and themes and familiar and not-
so-familiar faces take them forward. Although advertisements traditionally
remain the sheet anchor, brands use other above-the-line and below-the-line
techniques to gain an edge or grab eyeballs. All these definitely has fuelled
consumerism and the responsibility for developing the consumerist culture
that have taken a vice like grip over our lives and its catastrophic impact on
the natural environment can be ascribed to a large extent on the burgeoning
media. But the irony is that it is the media again which has declared these
wrong-doings to the public and implicated the corporate or the brands into
the muddle. This has again thrust upon these brands or their mentors to
engage in clean or green activities that would resuscitate their image
wholeheartedly.
 G. Vani, M. Ganesh Babu and N. Panchanatham (2010) in his article
“Toothpaste Brands –A Study of Consumer Behavior in Bangalore City”
focused that the external factors like demographic, social, cultural, price,
quality, product attributes etc for buying toothpaste. The market share of any
product is highly determined by the purchasing behaviour of the consumers.
Following study is conducted by the researcher to find out the behaviour of
the consumers, to analyse the preference of consumers, & consumer
awareness. Descriptive research design was adopted and the data is collected
through primary and secondary sources. The method adopted for conducting
survey is questionnaire; Simple random sampling technique was adopted for
selecting the consumers.

 Mr. K. Sivakumar (2007) on his article “Consumers Attitude towards

the Products of Indian and Multi National Companies - A Comparative
Study with Reference to Electrical and Electronic Products” stated that
the entry of MNCs in India leads to exit of certain Indian companies of
various industries. However Indian people compromise to purchase Indian
products, if they had quality and special features in those products also.
People are interested to buy the MNCs products not only for quality or for
product features but also for cost, brand image, service, social status and host
number of other factors. The impact of MNCs product in Indian industries
should play a positive role by framing same rules and regulations as framed
for domestic countries. The study attempts to research about the consumer
attitude towards Indian and MNCs products for electrical and electronic
products in Chennai city and develops various aspects.
 Prof Shital Vakhariya and Dr. Vilas Chopde (2011) in their study on
“A Study of the Consumer Preference of Private Labels over National
Labels in Apparel Segment of the Departmental Stores in Nagpur
Region" pointed out that as per FICCI Ernst & Young 2007 report, (taken
from- The Marketing White book 2009-10), the retail sector in India was
worth $280 billion, out of which organized retail worth $14 billion. In the
beginning of 2010, contribution to private sector in Garment segment to total
turnover is 10% and it is expected to cross 20% by 2012. As per the BMI
India Retail Report, for the third-quarter of 2010, forecasts the total retail
sales will grow from US$ 353 billion in 2010 to US$ 543.2 billion by 2014.
With the expanding middle- and upper-class consumer base and increase in
disposable income, the scope of organized retailing is widening in India store
brands. It has also started capturing the market share from national brands.
Almost every retailer is coming out with their own brands, trying to increase
the number and the categories of private brands as their efforts are paying
off. The fight between national brands and Private labels is getting and
tougher and interesting. Store brands provide value for money to customers
and higher margin to retailers. The research paper highlights the past of
national brand/private label competition. It is a study to understand the
category specific factors which affect the consumer preference for private
labels versus National brands. This paper aims to investigate the consumers’
brand preference for National versus private labels especially in Apparel
segment. Where ever possible manufacturers has to provide discounts and
more margins to their major key retailers by sales promotion targeting
towards customers and retailers. Marketers of national brands must start to
partner with their profitable retailers by considering their strengths. Innovate
and focus strategy is needed in order to remain competitive.

 Prof. Lakshmi Nair (2011) in her study “Private Labels Brands in

Food & Grocery: The Changing Perceptions of Consumers & Retailers
in India- A Study in the Pune Region” viewed that the private labels or
store brands are on escalating journey for growth in last few years in Indian
market. The growth of private label brands (PLBs) is quite impressive in food
and grocery segment, in spite of presence of leading national manufacturers
brands in most of the categories. Though, initially PLBs were considered as
cheap alternatives and therefore visible in copycat and generic categories,
today they are a part of well-defined retail mix strategy, are developed in
value innovators and premium categories for profit maximization and
customer loyalty. This paper examines the growth of these PLBs
internationally and among Indian retailer, mainly in food and grocery
segment. It investigates the perceptions of consumers for PLBs and their
involvement in purchasing of such PLBs in the retail segment. The purpose
is to analyse unique PLB associations in the minds of consumers so as to
gauge the customer loyalty, consumer preferences and shopping behaviour,
and thereby add to retail brand equity.
3.1 The Company Profile:

Kit Kat has a big geographical market. Even though it was acquired by
Nestlé in1988, it did not struggle under it at all since Kit Kat was already
internationally recognized. It is produced in 17 countries by Nestlé namely
UK, India, Japan, China, Australia, Canada, New Zealand, Egypt, Algeria,
Turkey, Malaysia, South Africa, Germany, Venezuela, Mexico, Bulgaria and
Spain. Kit Kat in the USA is produced under the license by The Hershey
Company due to the prior licensing done by Hershey’s to produce Kit Kat in
the North American region.

KitKat is from the house of Nestle and is distinguished because it has

one of the most iconic taglines ever – Have a break, have a KitKat. It is also
differentiated from the normal chocolate brands because it is more of a wafer
chocolate and not chocolate bars. Thus, because of this differentiation, there
have hardly been competitors in the KitKat space, although there is too much
competition for chocolate bars.

Nestle India- Presence across India:

Nestlé India’s first production facility, set up in 1961 at Moga

(Punjab), was followed soon after by its second plant, set up at Choladi
(Tamil Nadu), in 1967. Consequently, Nestlé India set up factories in
Nanjangud (Karnataka), in 1989, and Samalkha (Haryana), in 1993. This was
succeeded by the commissioning of two more factories - at Ponda and
Bicholim, Goa, in 1995 and 1997 respectively. The seventh factory was set
up at Pantnagar, Uttarakhand, in 2006. The 8th Factory was set up at
Tahliwal, Himachal Pradesh, in 2012.

3.2 Who Are The Main Competitors?

Kit Kat is a brand that has been in the market from the past 75 years, but
still is not a monopoly. It has a unique offering with chocolate covered wafer
and hence loved by most people. Their opening of the chocolate is unique
and has been great campaigns regarding the same. The company has a great
quality management and the same is provided worldwide. Through this
article, let us discuss the top KitKat competitors:

 Cadbury
 Ferrero Rocher
 Mondelez Brands
 Mars
 Nestle
 Hershey’s
 Ricola
 Lindt
 KvikkLuinsj
 Petra Foods

3.3 Introduction to SWOT:

Due to strong competition and a continuous market change, most

companies engage in strategic planning today to become or stay competitive
in the long run. Strategy is all-embracing. Strategy has to capture internal and
external aspects, that means to comprise competencies and market
opportunities. Strategy has to keep in view the own company, the customers
and the competitors. The SWOT analysis is a strategic planning tool used to
evaluate the Strengths, Weaknesses, Opportunities and Threats of a
company. It provides information that is helpful in matching the company’s
resources and capabilities to the competitive environment in which it
operates. The resulting SWOT matrix contrasts the results of the internal
analysis (strengths and weakness) and the external analysis (opportunities
and threats) to define strategic fields of action. That application of a SWOT
analysis is therefore instrumental in strategy formulation and selection.

SWOT is an acronym for Strengths, Weaknesses, Opportunities

and Threats. By definition, Strengths (S) and Weaknesses (W) are
considered to be internal factors over which you have some measure of
control. Also, by definition, Opportunities (O) and Threats (T) are considered
to be external factors over which you have essentially no control. SWOT
Analysis is the most renowned tool for audit and analysis of the overall
strategic position of the business and its environment. Its key purpose is to
identify the strategies that will create a firm specific business model that will
best align an organization’s resources and capabilities to the requirements of
the environment in which the firm operates. In other words, it is the
foundation for evaluating the internal potential and limitations and the
probable/likely opportunities and threats from the external environment. It
views all positive and negative factors inside and outside the firm that affect
the success of the firm.
3.4 Sales and profit trend:

Nestle, which began trading in India in 1912, is the first listed “pure-
play food company” to cross Rs10,000 crore in sales in India. While there are
many packaged goods companies in India with more than Rs10,000 crore
sales, Nestle India is among the very few to have crossed the mark with a
pure-play food business. Among the listed firms, ITC Ltd.’s food business
was estimated at around Rs8,000 crore in fiscal year ended 31 March 2017
(FY17) and Britannia Industries Ltd reported sales at Rs8,684 crore in FY17.
The country’s largest packaged goods company Hindustan Unilever Ltd and
New Delhi-based Dabur India Ltd have much smaller food businesses.

Cadbury’s sales trend as always been good. Being in the market for over
50years, this brand originated in UK itself and is considered as the toughest
competitor of Kit Kat. Cadbury has seen a rise of over 10% of sales in the
UK Industry this year 2017. Whereas the Hershey Company’s net sales
reached $91.2million in the fourth quarter of the year 2018 that means a 2.2
per cent increase in sales.

Nestlé has posted flat organic sales growth in confectionery in fiscal

2017, but saw an uptick for premium brands such as Les Racette’s De
L’Atelier and sales in direct-to-consumer KitKat stores.Kit Kat is a chocolate
bar that consists of creme-filled wafer which is covered with smooth milk
chocolate. Each of the finger of the traditional four-fingered bar can be
snapped of one at a time.
Sales of the leading snack size chocolate candy brands of the United
States in 2017 (in million U.S. dollars)

3.5 Business Sector:

Nestlé’s business sector comes under the food industry. They have spread
their business in various numbers of food sectors starting from infant foods
to foods consumable by children and adults like ice cream, chocolates, frozen
food, milk powder etc. to pet care products. Kit Kat belongs to the chocolate
sector of their business and is the leading brand of chocolates of Nestlé.
3.6 Project Focus:

It’s not that Nestlé has a specific focus on only the chocolate sector of their
business i.e., Kit Kat, they have an equal amount of focus on every business
sector of theirs and have made no compromise on any products growth.
Though in countries like UK and India Nestlé has put in more focus on the
chocolate sector of their business and have done no compromise on
promoting Kit Kat. So therefore, Nestlé in regions of UK and India has main
focus only on Kit Kat because of its brand recognition.

3.7 Target Markets:

Be it any chocolate company, Kit Kat, Cadbury or Hershey’s chocolates are

something that have always targeted children and women in the recent past,
but these days chocolates are targeting men, women and children as it is
something that is meant for both the sexes and all age groups.

3.8 Company facts:

Here is the SWOT analysis of KitKat:

KitKat is from the house of Nestle and is distinguished because it has

one of the most iconic taglines ever – Have a break, have a KitKat. It is also
differentiated from the normal chocolate brands because it is more of a wafer
chocolate and not chocolate bars. Thus, because of this differentiation, there
have hardly been competitors in the KitKat space, although there is too much
competition for chocolate bars.

4.1 Strengths in the SWOT analysis of KitKat

I. Unique offering-

The number 1 strength of KitKat is its unique offering – A chocolate

covered wafer which is loved for its taste by people. Moreover, by this move,
KitKat has differentiated itself well from Dairy Milk and other such
chocolate bars in the market.

II. Unique way to open the chocolate –

There have been campaigns which have been dedicated to opening the
wrapper of a KitKat chocolate and the sweet sound it makes. We are doubtful
any chocolate has ever done that. This again created an
excellent brand retention in the minds of the consumer.

iii. Massive distribution –

You cannot survive in the FMCG market without having a massive

distribution. KitKat has production in 16 countries and it has distribution in
more than 100 countries across the world. Because it comes from the house
of Nestle, which also has Maggi and Nescafe, the distribution receives
a boost because of the sales channel already present for the other brands.

iv. Excellent tagline –

Have a break, have a KitKat is one of the most famous taglines a brand
has ever had and KitKat has owned it for several years. KitKat even had a
website where you could have a break by hitting mosquitoes and relaxing. Or
it has images on its website which shows people just chilling out. The brand
has revolved its marketing strategy around the tagline – That you should take
regular breaks during the break, and you can have a KitKat at such times.

v. Quality management –

Hardly will you hear any complaints about the quality of KitKat
Chocolates. The quality management is superior and the same quality is
distributed across the globe making people fall in love with the taste and
consistency of KitKat chocolate.

vi. Deep pockets –

Nestle has very deep pockets because of Nescafe and Maggi being cash
cows in their arenas. You will not find a larger sold noodles brand then Maggi
and neither will there be a higher sold coffee brand. Thus, because of these
deep pockets a lot of revenue is available for KitKat to remain a star in the
ever-growing chocolate segment.
4.2 Weaknesses in the SWOT analysis of KitKat:

i. Unauthentic –

A problem facing KitKat is that in developing economies, there are

many duplicate versions of KitKat available. Or there are regional players
which come up with the wafer biscuit concept. KitKat has to fight with such
duplication vigorously.

ii. Breakage –

Another problem faced is during packaging. Because the biscuit is

literally a wafer, it breaks easily and many times the consumer gets a broken
piece of a wafer chocolate. This might result in the consumer getting
frustrated.

4.3 Opportunities in the SWOT analysis of KitKat

i. Expansion –

For any FMCG company, more expansion means more revenue which
in turn means more profit. The same is applicable for KitKat. The more it
expands in developing economies the better it would be for the brand.

ii. Rural penetration –

In India, China or other such Asian countries, rural penetration is yet to

be achieved and that is where KitKat can do wonders by using its deep
pockets and establishing itself in rural areas.
iii. Increasing chocolate contribution –

KitKat can launch more variants wherein the chocolate contribution to

the wafer chocolate combination is even higher thereby giving a richer taste.

4.4 Threats in the SWOT analysis of KitKat:

i. Competition –

KitKat faces two kind of competition – Direct or indirect. Direct

competition for KitKat is very high from Dairy Milk. Dairy milk literally
takes the first spot across the globe as the leader in chocolate market. As a
result, KitKat always falls second and the gap between dairy milk and KitKat
is huge as well.

ii. Health consciousness –

As people are getting more health conscious, they are replacing

chocolates with other healthier snacks and therefore this will slowly affect
the revenue of the brand.

4.5 The Company’s Marketing Strategy:

4.5.1 Segmentation:
Prior to Kit Kat’s takeover, Rowntree, the founders of Kit Kat, had set
a foundation of the product by cementing it in the heavily populated areas of
York later in almost all urban and rural places of UK. This was followed by
global recognition to Kit Kat by 1950 which led to diversification of the
product when Hershey bought the rights of producing Kit Kat in North
America whereas Nestle bought the rights of producing and supplying Kit
Kat to the rest of the world except for North America. Nestle segmented the
market for Kit Kat in the following ways:

 Geographical:
The market is broadly divided into Urban (cities and towns) and
Rural(villages). Kit Kat caters the high urban need by making products
available that too with a variety with the help of which the rural crowd can
be kept attracted. Rural needs are also kept in mind and there is nothing even
required for Kit Kat to make an effort to attract rural crowd because of the
price. KitKat’s price is very reasonable that attracts rural crowd and gives
them proper quantity of chocolate as well be it the two-finger Kit Kat or the
four-finger.
 Demographic:
With the youth population getting larger, Kit Kat looks to take an
advantage of that. They have also segmented the market for children, adults
and aged people. Kit Kat is a type of a chocolate that is light and can be
consumed by every age group.
 Income group:
Income Groups: Majority of the customer base in market comprises of
middle class and upper middle class. But income groups have never been a
concern for KitKat, as mentioned earlier the prices of Kit Kat have been
stable for decades and the prices are such that any income group can afford
it.
 Targeting sectors:
Kit Kat has implemented a strategy of offering itself to its segments in
the market. The following are the target customers of Kit Kat: -

Women & Children:

Women and children are the two targets that every chocolate company
values the most. They are those to segments of the crowd that are highly into
chocolates. For women chocolates can be given as a gift for example the new
Kit Kat Senses 8 finger box which is usually meant for gifting it to someone,
whereas for kids’ chocolates are just another reason to avoid boring home
food.

Rural Population:
Since Kit Kat has its price stable and has a very minor change in its
price, it can still target the rural crowd by making them aware that compared
to their competitors Cadbury their product is cheaper and much affordable.

4.6 DATA ANALYSIS:

People are loving the brand. And not only are they loving, they have
imbibed the ‘Break banta hai’ philosophy in their life as well. Following are
some analysis and interpretations made on the basis of some questionaries:
1) Which is the leading brand according to you, Rank the following?

Data:

BRANDS 1 2 3 4 TOTAL
NESTLE 24% 48% 18% 10% 100%
12 24 9 5 50
CADBURY 76% 16% 8% 0% 100%
38 8 4 0 50

Analysis:

LEADING BRAND

1 2 3 4

38

24

12
9 8
5
4
0

Nestle Cadbury
 Interpretation:

- 38 or 76% respondents say Cadbury is a 1st leading brand in the market.

-24 or 48%of the respondents say Nestle is a 2nd leading brand in the market.
-The large number of respondents that is 38 out of 50 respondents say that
Cadbury is the leading brand and no respondents say that Cadbury is last
brand.
-There is more votes is provided to Cadbury than Nestle.
2) Which brand of chocolate do you prefer?

Data:
SR. NO. OPTIONS NO. OF %
RESPONDENTS
1 Cadbury 38 76%
2 nestle 12 24%
total 50 100%

Analysis:

PREFERENCE OF BRAND

24 %

NESTLE
76% CADBURY
 Interpretation:
There are many brands available in the market. But the market leaders in
India are Cadbury and Nestle. According to survey-
- 76% or 38 of the respondents prefer Cadbury brand of chocolate out of
50respondents.

- 24% or 12 of the respondents prefer Nestle brand of chocolate out of 50

respondents.

- 3) Which sub-brand of Nestle chocolate you have preferred more?

Data:

SR. NO. OPTIONS NO. OF %

RESPONDENTS
1 KitKat 3 25%
2 Munch 3 25%
3 Milky bar 2 17%
4 Bar one 2 17%
5 Milk chocolate 2 16%
total 12 100%
Analysis:
NESTLE

MILK
CHOCOLATE
17% KITKAT
25%
BAR ONE
17%

MUNCH
MILKY BAR 25%
16%
Interpretation:

From the above analysis of given sample of 12 respondents who eat Nestle
chocolates it is concluded that –

 25% of the respondents have preferred Kit Kat Chocolate more.

 25% of the respondents have preferred Munch Chocolate more.

 17% of the respondents have preferred Milky Bar Chocolate more.

 17% of the respondents have preferred Bar-One Chocolate more.

 16% of the respondents have preferred Milk Chocolate more.

4.7 Marketing Mix:

KitKat is a biscuit bar of wafer that is covered in chocolate. Rowntree of

England created it in the year 1935 and later Nestle started its production
after acquiring the company in the year 1988. KitKat has a universal appeal
to every generation and age group. Some of its competitors are as follows-

 Carbury

 Mars

 Product in the Marketing mix of KitKat:

The traditional KitKat bar has four fingers with a measurement of 9cm
by 1cm. Later a bar of two finger was also introduced that is the company’s
bestselling product till today. The KitKat bars have different number of
fingers in accordance with the market. It starts from a size of half a finger
that is available in Japan to a bar of three fingers in Arabia, to the bars of
twelve fingers that are available in France and Australia. The bars of Nestle
KitKat are sold in various forms of multi-packs, boxes, bags and even
individually. “Nestle KitKat Chunky” was launched in 1999 and “Nestle
KitKat Chunky Peanut Butter” in 2006 in variants such as milk and orange.
IN countries like America, UK, France and Ireland the company produces
“Nestle KitKat ice-cream” and in countries like Malaysia and Australia it
produces “Nestle KitKat Drumsticks”. The four fingers Nestle KitKat has
appeared in mint and orange flavours and later in variants like blood orange,
Yogurt and Lemon and lime flavours. One of its most favourable variants is
“Caramac” that was introduced in 2005. “KitKat Green Tea Chocolate” is
one another successful product of the company. In Japan, at least forty
flavours of Nestle KitKat are available like the Cucumber, wasabi and lemon
vinegar.

 Place in the Marketing mix of KitKat:

Nestle KitKat is produced in at least 21 countries of the world such as

Brazil, Canada, UK, Germany, Malaysia etc. and at present is the leading
confectionary brand in the global market. It is easily available in nearly one
hundred countries of the world. In the year 2010, a new manufacturing line,
costing 5 million pounds was opened in York by Nestle. This plant is
supposed to produce a billion units of KitKat every year.The global team of
Nestle KitKat has developed an intricate network of distributive channels that
has the responsibility of ensuring that Nestle KitKat is available to every
interested consumer at whatever place or whenever time he desires.
Numerous market researches show an amazing fact that 60% of the purchases
are impulsive buys without any rhyme or reason. Sales of any confectionary
product depends on easy availability therefore, the company tries to supply as
many as possible variants of its products to maximum number of outlets
through its wholesalers and retail channels.

 Price in the Marketing mix of KitKat:

Nestle KitKat has a very strong image of its brand name and in this
competitive market this image allows the company some flexibility in
executing its pricing policy. However, in order to increase the volume and
maintain its loyal customers Nestle KitKat has resolved to maintain a low and
fair pricing policy. The starting prices of the KitKat product remain
unchanged at INR5, along with its quality, even if the quantity has been
reduced. The customers then do not feel very unhappy with the company as
they also realize the effects of rising economy. The stability in the pricing
policy has been a major factor in the maintenance of sales of this brand. The
company’s policy has proved to be a boon for them. There is another
competetor is Twix which applies the almost similar pricing strategy as
Nestle for KitKat.There is also some differantiation of pricing policy between
such two compaies, it can be represented by this data:
  Promotions in the Marketing mix of KitKat:

The packaging of Nestle KitKat is very distinctive and is done in white

and red coloured wrapper. The first advertisement for the brand Nestle KitKat
was shown on television in the year 1957 and the first colour advertisement
were seen in the year 1967. Some of the most exclusive advertisements of
Nestle KitKat comprises of “Dancing Panda” in the year 1987 and “Have a
Break, Have a KitKat” ads in the early 90s.

Nowadays, a tagline has become an important promotional activity.

Nestle KitKat has relied heavily for its promotions on the media such as
newspapers, magazines, billboards, posters, televisions and especially online
through internet and various websites that asks the visitors to take a break
and have a KitKat. The company has offered free bars of Nestle KitKat with
family packs as promotional strategies.
 5.1 FINDINGS:
 The overall data across the background characteristic categories show
that across the background categories the preference for Cadbury
chocolate and milk products is better than Nestle.
 Most respondents would purchase both Chocolate and Milk products of
Cadbury for its Taste and that of Nestle for its price.
 It can be seen that more percentage of respondents has seen the
advertisement of both Cadbury and Nestle products.
 Except these, following are some other findings about interfirm analysis
of nestle:
 Evaluation of company’s current position:

Keeping in mind the company, nestle is doing pretty well currently at the
market and still is the leading producer of different types of foods ranging
from infant foods, adult foods to foods meant for pet care.

 Evidence of company’s success (Growth in sales and profit):

Recently in Nestle completed 100 years in Australia, and chose Sydney

as one of its three global IT support center. In the Oceanic region, Australia
is the headquarters of Nestle’s operations covering Australia, Papua New
Guinea, New Zealand and the South Pacific islands. Nestle has fifteen
factories, eight distribution centers and over 50 offices and 5,700 employees
across the region. Annual sales revenue only from Australia alone totaled up
to $ 2.8 billion in 2017.
 Nestle is the largest industrial company of Switzerland, and the biggest
food company in the world. It runs a global workforce of 265,000 people in
over 481factories, selling over 1 billion Nestle products every day.

 Prospects for future growth/success:

Invest in new products and bring out a new product in the market. Market
expected to emerge rapidly and sales to be up by 45 per cent by 2020.

5.2 Suggestions/ Recommendations:

 Nestle company can concentrate on its packaging of a chocolate as

consumers are not satisfied with it.
 Consumers are unsatisfied with the price and quantity of chocolate so
companies can concentrate in this regard also.
 Nestle can concentrate more on price and quantity of the product.
According to survey, 54% of the consumers are wanted more quantity of
chocolate is lesser price.
 For promotional offers, company can go for free gifts rather than going
for other ways.
 I recommend to Keep the taste nice
 I recommend to Increase advertising & show your competitive edge.
 I recommend to Increase loyalty of customer with brand through
attractive packages
 I recommend to Keep the price low, because the day when price will
competitor will be very near to your price your sales will be boost up.
 I recommend to Increase its distribution network
 I recommend to Try to get more & more party orders
 My suggestion is to Give keen interest to CRM
 Increase incentives & promotional activities
 More focus on C & D Class Shops by revisiting Shop wise data.
 Training of ASM’s by Regional Head as a Coach / Team Leader.
 Training courses/workshops for team.
 Conduct Training Sessions of Salesmen at least once a month at
Regional Level.
 Hiring of Quality Sales people is in process in Faisalabad City.
 Re-define roles & responsibilities of every Individual in order to bring
ownership and sense of responsibility.
 Weekly Meeting with Distributors and Sales Team in order to review
weekly target closing.

5.3 Conclusion:

After all the research, and with the help of PEST-G, SWOT analysis, BGC
matrix and the Product Life Cycle, we come to a conclusion that Nestle was
and still is the largest food company in the world. Its product Kit Kat till date
is highly recognized and preferred by people. The price of a Kit Kat bar is
very reasonable to an extent where not only the rich people can afford it but
even consumers who are below middle class can purchase it and enjoy the
quality of wafer coated with milk chocolate. Though Kit Kat went through
ups and downs, but it never vanished from the market despite of loads of
attempts from its competitors KitKat still stood out to be the brand that is
highly preferred. Nestle. In future, also plans to bring out new products and
Kit Kat in the near future plans to bring out new seasonal flavors to new
markets and increase its sales globally. Kit Kat is ranked one in the UK and
aims to be ranked one amongst all other chocolates in the whole world.

In this I also found that if the demanded brand is not available, so at that time
the customers switch over the brand of the chocolate so, here the company
should build up the healthy distribution channel by which company can
attract the customers and company loose the fear from the market I am sure
that Nestlé Company will do better in the future than their competitors and
might be the new trendsetter in some criteria and also gain its above-average
returns to their company.
 REFERENCE/ Bibliography

Websites :

 http://www.nestle.com/Resource.axd?Id=4FF18A81-0D77-43B4-
949D-FC5F740E4EB3
 http://en.wikipedia.org/wiki/Kit_Kat
 http://en.wikipedia.org/wiki/Nestle
 http://www.kitkat.com/aboutkitkat
 http://www.thestudentroom.co.uk/showthread.php?t=64830
 http://www.foodanddrinkeurope.com/Financial/Kit-Kat-sales-up-in-
UK-and-Ireland
 http://candy.amplify.com/2010/02/03/hershey-sales-earnings-increase/
 http://www.scribd.com/doc/11274954/Nestle
 http://www.foodanddrinkdigital.com/sectors/food-
manufacturing/how-good-does-green-taste-nestle-kit-kats-made-
sustainable-cocoa
 http://www.austrade.gov.au/Nestle-celebrates-a-century-of-success-in-
Australia/default.aspx
Books:

 David, F. R. (2009). Strategic management: concept and cases (12th

Edition). NJ: Pearson Prentice Hall.
 Hanson, D., Hitt, M., Ireland, R. D., & Hoskisson, R. E. (2011).
Strategic Management:
 Competitiveness and globalization (Asia-Pacific 4th Edition). South
Melbourne: Cengage Learning Australia
News Papers:

 Economics Times
 The Hindu
 Financial Times
 The Business Line