Kit_Kat_Marketing_Plan_Singapore.docx

Nestle kitkat belong to the maturity stage which is

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Nestle KitKat belong to the maturity stage, which is recognized and accepted by consumers in the market. Advertising and sales promotions have to be done in order to entice consumers into purchasing the product. Cross branding campaigns with globally recognized organizations like Android or YouTube is the way forward for KitKat to effectively capture the attention of consumers. 34
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MKTG 1199 – Marketing Principles (LF02, Group 2) 6.2 Price. Pricing strategy crucial in determining the profitability of a business. Compared to its competitor in the market, KitKat confectionary are priced quite low for its value, which goes to shows a high demand for KitKat, capable of producing large volume reducing cost. Price Ceiling vs Price Floor KitKat sets its price for confectionaries above the production cost so as to avoid any losses that will incur from the sale of each confectionery, also pricing it at a value that does not exceed consumer’s perceived value of the product. Overall pricing approach –Good Value Pricing KitKat focuses on producing superior quality chocolate that is of superior quality which allows consumers to savour the taste. In terms of branding, KitKat is known to be one of the global leader in confectionery market. Hence, KitKat adopts valued- based pricing on the chocolate as consumers has grown loyal towards KitKat brand, superior quality & nutritious. KitKat will take up value-added pricing strategy, it being relatively low price, create value for money providing superior quality of chocolate at a low price. Type of market - Monopolistic Competition, Relatively Elastic KitKat trademark crunchy wafer chocolate helps differentiate KitKat from its wide range of competitors. KitKat has always being associated with “taking a break” which delivers it as a break time snack experience. KitKat therefore belongs to the monopolistic competition as KitKat is able to be differentiated by buyers. Consumer commonly purchase its standard two bar KitKat over its 4 bar KitKat for its similar quality taste of milk chocolate with crunchy wafer but lesser quantity. Known to be a childhood snack delivering the nostalgia experience consuming it. Thus is considered to be relatively elastic in demand. Which defines, consumers being sensitive on pricing but willing to pay if there’s promotion KitKat products. 35
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MKTG 1199 – Marketing Principles (LF02, Group 2) New product pricing strategy – Market Penetration Pricing KitKat practices market penetration pricing which sets a low initial price to penetrate the market- attracts large pool of buyers quickly and win a large market share, the high sales volume result in falling costs, which will allow KitKat to cut on its price even further. This low price will keep out its competitor as buyers will be choosing KitKat new product instead, allowing further penetration. Furthermore KitKat is recognized in Singapore confectionary market and is highly sought out by consumers.
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