: Revitalising a Brand Leader

1992 arrived The Life-cycle of a Product Project Tyson Introduction 1995 The standard range of was relaunched with colourful Project Tyson resulted in the launch of All products have a life-cycle. It starts with preparations Sales new packets Kit Kat ChunKy, a super size Kit Kat finger with a real mouthful of chunky for the product’s launch, followed by the launch itself. 1997 Giant Smarties were launched chocolate. This ‘heavyweight’ Maturity

Decline idea assumes that younger consumers Some products are an immediate success; they 1999 Smarties was launched

Growth are looking for novelty, interest and capture public imagination. Often this results 2000 Mini Smarties came on the scene even excitement when they buy a Launch from well targeted, exciting promotional and 2001 Tetrahedon pack for Mini Smarties chocolate bar. While most of us are advertising activity and from careful market loyal to the chocolate products we buy research that has identified a genuine gap in Every alert, market-focused producer regularly, we also seek novelty. recognises the need for regular change. the market. Other products take longer to Project Tyson, as with all Nestlé This is required because: come to consumers’ attention, and longer still projects, followed Nestlé’s internal ¥ consumers want and demand change advertising code of conduct, which to become popular. Some new products flop, reflects the industry position on and soon disappear from sale. ¥ rival firms are constantly re-invent- Time advertising to children. The project ing themselves and their products team ensured, for example, that the pro- The growth stage comes next. Growth can ¥ innovation and inventiveness keep motional campaign would not encour- take weeks or months (eg the latest an organisation flexible and able to age children to pester their parents for fashion clothes) or years (eg the typical The life-cycle designers re-design old favourites such respond to further change. products nor would it encourage packet or canned food and drinks as the VW Beetle and the Mini. One children to eat frequently of a Product secret of success is to retain enough of Although Kit Kat continued to be the throughout the day, in preference to found in supermarkets). Eventually the old image to keep the loyalty of Number 1 confectionery brand, by the properly balanced meals. the maturity stage is reached, where Marketing departments are expect- present enthusiasts for the product, late 1990s its volume sales were falling. To find out exactly what consumers sales of the product and ed to ensure that products do not go whilst making sufficient innovations to Faced with several increasingly attrac- were looking for, Nestlé carried out consumers’ level of product into decline. Mature products need attract a whole new group of consumers. tive competitive offerings, consumers detailed market research, including awareness are both high. At new life injected into them, to keep the began to see Kit Kat in its traditional In the world of popular and detailed qualitative research. Many this stage, products risk going buying public interested and aware of form as lacking in excitement and inter- sweets, there has been in recent years est, with purchases being driven more by pairs of young people were invited to into decline, largely because the product’s benefits. an ongoing revolution in modifying habit than positive choice. Although the give their views on different formats for they have become too This case study provides a classic products. In previous times, sweets and four-finger Kit Kat continued to be the new product eg whether they pre- familiar and are seen as example of how to put new life into a chocolate bars remained in more or highly popular with its core target ferred one or two fingers, what flavours less exciting than recently favourite, leading brand: Kit Kat. less the same form for many years. Today, market of 25-40 year olds, it was losing they preferred (caramel, peanut butter, launched alternatives. however, modern sophisticated con- popular appeal with younger consumers. jelly, chocolate layers etc). sumers constantly seek novelty and The image problem was most evident Researchers also considered the most Why Kit Kat change, and consumers have become among core countline consumers ie 12- appropriate form of packaging to add the driving force behind product needed revitalising 20 year olds. In this important age group, further interest and attraction to the modification. while Kit Kat had been part of ‘growing product. Other forms of market Kit Kat is the UK’s best-selling choco- research included group discussions Take Smarties, for example, which have up’ and may also have made regular late bar. However, in the competitive appearances in lunch boxes, it was hardly with young people who, typically, were undergone a series of changes in recent modern world consumers’ tastes relevant to their lifestyle. The traditional regular consumers of chocolate bars. A years. Until the late 1980s, Smarties continually change. As a result, even four-finger Kit Kat did not seem relevant survey group might consist of, for came in well-established standard the most popular icons have to to them. In 1999 therefore, Nestlé felt it example, males and females who were: re-invent themselves from time to time flavourings, colours and packaging. was time for some re-invention. The ¥ 17, 18, 19 or 20 years old in order to keep their appeal and stay Then: company decided to develop a new ¥ of different ethnic origin ‘on top’. For example, pop stars adjust 1989 Nestlé introduced Smarties format of Kit Kat whilst still retaining their image, film animators amend their the four-finger variety with which ¥ from different parts of the UK favourite cartoon characters, and car 1991 Printing on sweets was introduced consumers are so familiar. ¥ a mix of students and non-students.

THE TIMES 100 Edition 7 www.thetimes100.co.uk Glossary of Keywords Using focus groups in this way, The single-finger proved to be most Quantitative objectives Supporting the launch: product in order to meet the massive researchers were able to compile data popular with the 12-20 year old group, media, PR and customer demand. Within 6 months, on the views and feelings of represen- and was also the most distinctive form Nestlé set demanding quantitative objec- more than 20% of the UK population of tative samples of the targeted groups that the new product could take. The tives for the launch. Nestlé aimed to: point of sale the UK had tried the product, and of consumers. research also indicated that a two-finger repeat rates have been very high. variety would, in some ways, compete ¥ achieve 90% distribution in all For a new product to grab public Both the quantitative and the qualitative The research provided clear evidence that: with the four-finger variety. This would sectors of the confectionery market attention quickly, it is vital to support its within the first four weeks after objectives for the launch were quickly ¥ the targeted population of 12-20 year lead to Kit Kat competing against itself; launch with well-targeted advertising the launch met. The most successful aspect of the olds were attracted to the idea of the not a very good idea! By contrast, the and promotional activities. launch and subsequent marketing single ChunKy finger single-finger Kit Kat ChunKy provided ¥ sell 50 million units (ie 2,750 tonnes ChunKy was supported by two dedicat- activity has been that of revitalising a promising line extension. of product) in 1999, the year of ¥ Project Tyson could be a winner. ed television adverts complemented by interest in the Kit Kat line, particularly Aspirational identification: The tendency for younger the launch a phone site campaign. The advertis- among the 12-20 year old age group. consumers (eg 12-14 year olds) to look up to and want to The research also identified the type of be like older teenagers; they therefore identify with images Objectives ¥ increase sales in subsequent years. ing was a big departure from previous There has been a clear knock-on effect packaging with the greatest appeal - a favoured by older teenagers. for the launch campaigns in that it focused on the into other age groups and only a limited mainly and silver flow wrap. It also targeted age group. It concentrated on negative effect on the sale of the Countline: A chocolate based bar. became clear that Kit Kat ChunKy would A wise company will look to justify Qualitative objectives 17-18 year olds in order to capitalise on traditional four-finger Kit Kat. In inject new interest in Kit Kat across a every new venture in strict business Distribution channels: Routes through which a product travels aspirational identification from the addition, the Kit Kat ChunKy is a broad range of consumers, including terms: it will set tough performance Nestlé also set several qualitative from the manufacturer to purchase by the final consumer. younger groups, without alienating versatile product with an ability to inject young children and older adults. targets. These in turn can be converted objectives. These were to: older consumers. new ideas into the market focused at Icons: Established images that are widely recognised by the public. into production targets, cost estimates The research examined different types ¥ broaden the number of occasions on 12-20 year olds eg by producing varieties and revenue projections. In addition, Nestlé invested in a range Life-cycle: The key stages in the life of any product, from of wrappings and formats. In particular, which people consume Kit Kat, with such as orange flavoured ChunKy. of public relations activities through its birth (launch) to its maturity and eventual decline. it compared two-finger and single-finger the vision that Kit Kat would be the radio and the national press. A detailed variants of Kit Kat ChunKy. natural choice for all breaks Line extension: The addition of a new, complementary format point-of-sale campaign supported the Conclusion to an existing product line. neither the publisher nor the clients can be held responsible for errors of omission or commission. ¥ increase Kit Kat’s market launch with attractive dumpbins in Market focused: Being driven by the needs and wishes penetration by enticing new stores, and posters for shop windows. The launch of Kit Kat ChunKy has of consumers. consumers to the brand, and Field sales staff were involved in a shown that intelligent innovation and by persuading lapsed users to detailed communication exercise adaptation, supported by meticulous Market research: Research carried out to identify the needs return to the product, with to raise awareness in all forms of market research and product promo- and requirements of consumers and others in the market place. particular emphasis on the distribution channels. tion, really can extend a successful 12-20 year old segment Phone site campaign: Alerting consumers to a new product product’s life-cycle significantly. by means of advertising on the outside/glass of public ¥ create real innovation telephone boxes. in the countline market. The success Qualitative objectives: Objectives that relate to achieving of the launch changes in attitudes towards, and perceptions of, a product.

The launch of Kit Kat ChunKy proved Quantitative objectives: Objectives that are set out in to be one of the best marketing success numbers eg a 10% increase in sales, a 5% decrease in wastage stories in recent times. Over 50 million Repeat rates: The proportion (%) of consumers who make bars were despatched within the first further, subsequent purchases. few weeks of the launch. Kit Kat Representative samples: Carefully selected small groups ChunKy almost immediately became that contain a typical range of the people who comprise the the best selling countline, and this total targeted group. success story has continued. Nestlé provided excellent support for retailers by providing them with in-store

promotions and a smooth supply of the information, of has been made to ensure accuracy effort Publishing Ltd 2001. Whilst every Limited and ©MBA Newspaper The Times

• Answers to the questions Browse the Web 1 Why was the launch of the new 2 Why might it be necessary to 3 Why is it important to establish 4 In launching a new product that 5 How would you go about • To download this case study • A profile of the organisation developing a high level of Kit Kat ChunKy targeted primarily modify a well-established both quantitative and qualitative is a variant on an existing • Revision help at people aged from 12 to 20? confectionery item? objectives for a product launch? product, why is it important to consumer awareness of a product launch linked to a gain a high level of consumer www.thetimes100.co.uk variant of an existing product? awareness quickly?

• Information on the organisation • Information from The Times Questions www.nestle.co.uk www.thetimes.co.uk

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