KITKAT originally created and established in London, United Kingdom.
Some history of Kitkat is started with The idea of Kitkat itself which has been made since 18th century. In 1935, it was the first launching of Kitkat and became instant hit in 1937 by Rowntree. In the following years sales of Marketing Plangrew rapidly and it has become a star in the confectionery world. The link between KIT KAT and breaks has remained a consistent theme for over 70 years.
Until 1949, KITKAT has been through many developments. Continue to 1958, Donald Gillies, an executive at advertising agency JWT in London developed the classic line: "Have a break, have a Kit Kat". In 1970, KITKAT did global expansion in Europe, USA and Japan. In 1990, there was also global expansion to China, Malaysia, India, Bulgaria, Venezuela, and Turkey. In 1988, Nestle Company saw a great opportunity to build on its long and proud heritage in the chocolate category.After a hard fought battle Nestle emerged as the winner in acquiring the Rowntree business.
From 1999 – 2000s there has many innovation of KITKAT in London, such as KITKAT Chunky, KITKAT Pop Choc, and KITKAT Orange, while in Japan as 2nd largest Nestle market, have been developed more than 100 recipes. Therefore, KITKAT Indonesia also wants to add new innovation to Indonesia market.Nestle Indonesia is one of Nestle branch that is located in Jakarta Selatan, with its head office in Vevey, Switzerland. It is created by Henri Nestle, founded over 140 years ago by Henri Nestle, a pharmacist. Nestle Indonesia has been operated since 1971, with more than 2600 staff, in 3 different industries such as Pabrik Kejayan, Pasuruan, Jawa Timur, Pabrik Panjang in Lampung and Pabrik Cikupa in Banten.
More importantly, Nestle motto "Good Food, Good Life" describes the company's ongoing commitment to combine science and technology to provide products that can meet the basic human needs for food and drink nutritious and safe to eat and delicious taste. In 2010, seeing the great potential market in Indonesia, Pabrik Kejayan has been expanded, and became one of the 10 largest Nestle factory in the world. In this industry, we are going to create KITKAT new product.Kitkat Indonesia plans to expand Indonesian Kitkat flavor by adding kitkat green tea flavor. We as marketers choose this flavor as kitkat future’s permanent flavor because green tea consists of natural and healthy substances. It has been famously known in Indonesian as herbal tea, that brings goods implications for the body, for instance antioxidant which helps human’s organ from dangerous chemicals and brings ageless to a person.
It appeals to the society customers especially to women and girls who want to diet and looks young. More importantly, not only for girls, we want to segment our market for Kitkat’s lover and loyal customers as well.We have some segmentation variables in our marketing development. First, for geographic segmentation, we plan to firstly distributing to the whole java covering the size of Java Island of more than 132,107 sq. km [ (Asianinfo, 2010) ] with the density of fully the urban and suburban area then after that if it is successful to fulfill our target, we are going to fulfill the demands in Bali, Sumatra, Kalimantan and whole Indonesia. Second, for demographic segmentation, based on the 2000 official census, it is the fact that more than 58% of Indonesian population live in Java Island, with the total of more than 110 million.
Therefore it already covers our marketing program for achieving the objectives. Furthermore, we would segment our target market that will be appealed to our new product in groups based on ages of teenagers from age 12 to 19 especially teens or girls who are in diet, due to the fact that KITKAT Green Tea less calories and no fat. As well as to adult from age 20 to 30 whose has social class from middle to upper middles for urban people that have various activities from university student to career woman, KITKAT green tea would be perfect for daily snacks.We are not really concern about the occupation and income of a person to buy our product, as long as they can fulfill their secondary needs, as it is a snack.
For the race, family cycle and religion is in general in society, therefore we do not have specific segmentation for that. Not only that, KITKAT is as well available for elderly who age from 40-60, because KITKAT green tea does not contain many sugars and less calories. Third, Psychographic segmentation based on social class and lifestyle, we segment the market from middle class to upper class with healthy urban lifestyle.People who educated well and aware of the usefulness of green tea will buy this product. Lastly, in behavioral segmentation, we segment the user status as ex-user, potential user, first time user and regular user.
We also expect nonuser to start using our product, because we added our new segmentation to elder people. As marketers, we believe that Indonesian customers already aware this flavor because it comes originally from Japan and will be the regular flavor after original chocolate flavor which may give enthusiastic and positive attitude from KITKAT’s customers.Green tea has been famously known in Indonesian as herbal tea, that brings goods implications for the body, for instance antioxidant which helps human’s organ from dangerous chemicals and brings ageless to a person. In additional, green tea has been worldly known to be able to prevent cancer as well. Moreover, by consuming green tea continuously, it helps body to reduce the fat and discard the waste in organ of the body.
That is to mention some of the benefits of green tea. Studies as well said that there is no side effect of consuming green tea, since it is purely from nature. This benefits make Kitkat is an innovative product.Kitkat company also use clean and sterilize production to create Kitkat. We only use authentic green tea and not just any kind of teas. It is healthy and it will be one of the healthiest snacks in Indonesia, because Kitkat Green Tea can help people in dieting process as daily snacks, so they do not have to be afraid of getting fat because of snacks.
Our Research and Development as well said that it is safe for eating many Kitkat green tea continuously. Furthermore, Kitkat also sold with reasonable price therefore Kitkat Green Tea definitely have strong competitive advantage with good promotions. Although our product has benefits, it also has weaknesses, such as not everyone loves green tea. And also it is few people who like to drink green tea but do not like Kitkat green tea.
There are some people who hate green tea, and do not like the taste. We have tested to our local customers, the results is 3 out of 10 people said they did not like the taste of Kitkat green tea. Although it is known as healthy, It is also unfortunate for people who have diabetes to restrain them of consuming too much, because our Kitkat Green Tea still contains biscuit and chocolate which consist of sugars.We also limited in distributing the Kitkat geographically, especially when we do the first launching, it is only available in the big city in Java. Furthermore, Studies said there is negative side effect of green tea, it is insomnia due to the fact that it contains caffeine.
However, green tea contains less caffeine than coffee approximately thirty to sixty mg of caffeine in six eight ounces of tea, compared to over one-hundred mg. in eight ounces of coffee.KITKAT Green Tea has been famously known in Japan. It is invented in there and has been trending for many years.
We believe that it will be also same in Indonesia due to many people still favorite our first KITKAT for years since our first launching, since then we have gained our regular and loyal customers. In other case, there are new technologies for our company to produce our own KITKAT for Indonesian market or international market so that the development and distribution processes become more efficient. It is also the big opportunity to introduce the uniqueness and the first delicious green tea snack in Indonesia originally.Our threats can come from the competitors either national or internationally, due to Kitkat is not the only company which produces good chocolate.
There are other brands as well that create delicious chocolate with many flavors that have their competitive advantage in the market such as to silver queen, roches, cadbury, delfi and so on. Furthermore, The competitive food market in Indonesia is really challenging, because Indonesian people has their own favorite foods which is might not easy for new product as green tea to change the point of view of people.The goal of KITKAT new product is to get the maximum profit for our company. We have objectives to reach the maximum of total BEP which happens when the point of volume activity in the company’s revenues and expenses are equal. Our budget for creating KITKAT Green Tea is Rp. 100 million for the first years.
Our marketers will not use the whole budget, yet we only use three quarters of our budgets.Our goals objectives for KITKAT Green Tea are First, to increase the awareness among the target customers by 60% in first year and inform the target audience about features and benefits of our product and its competitive advantage, leading to a 30% percent increase in sales in one year. Our action is to make advertising to promote the new product in TV commercial and big supermarket such as Hypermart, Carrefour, Ranch Market. At those markets, we give free tester and sample to the customers.As well as souvenirs or complimentary for example if they buy 1 packages they will get KITKAT shopping bag. And if they buy 2 packages and more, there will be a lottery to win more prizes.
Second, Decrease or remove potential customers' resistance to buying our product, leading to a 20 percent increase in sales that are closed in one year or less. This Green Tea flavor will resist people who think buying chocolate is bad, for example not good for the teeth, diabetes and other complications because green tea consists of rich goods for body.We will promote the healthy effect of eating KITKAT Green Tea, as well as the benefits of green tea itself. Third, Increase visibility and memorability of brand identity by increasing customer satisfaction to 98%. By increasing customer satisfaction, we can pushes up sales to existing customers, increases word of mouth referrals, and improves the reputation a potential customer learns about when researching the product.
We will do our best to create the best of our product using our resources. Lastly, Nestle Indonesia has all the necessary resources we want to accomplish our objectives.
