Kit Kat Case Study: Finding Opportunity In The World Of Chocolate

18 Sep 2009|Added Value

The team at Nestlé were looking to the future. They knew Kit Kat was a long-time favourite of adults and kids, but the team could see new chocs on the block starting to crowd the bar scene.

Now, the Kit Kat brand had been busy, it hadn’t been asleep at the wheel. The original four-finger is a timeless hit, with its crispy wafer all coated in smooth milk chocolate. And there have been some new flavours like dark choc and mint, to keep Kit Kat feeling fresh and new.

Then there’s Chunky, which has been a real winner, especially for guys looking for more of a munch. And the Chunky guys really dig the flavours like caramel and cookie dough.

But despite all of this hard work, competitors were starting to make inroads. Nestlé knew that to stay on top they needed a strong master brand and portfolio blueprint, and that this had to be based on a deep and thorough understanding of the market, its drivers, consumers and competitors.

So they called in Added Value to scope things out. To uncover all the choc bar Ws: the whos, the whys, the whats, the whens and the wheres.

What a tough job!

We started off by getting close and personal, talking to folks – lovers of chocolate from all walks of life. We visited them at home and went for a shop, to really understand what made their choc hearts go pop!

We had chats with groups too, a chance to really understand the virtues (and otherwise) of all the big brands.

We delved deep into Kit Kat to identify the strengths, the opportunities and watch-outs. We also formed a family album to help guide future growth.

And then we quantified it all.

We measured the consumer segments to spot the crucial targets. We sized their choc bar needs, and the occasions they like to treat on. We mapped the brands and identified white space, spotted opportunities to launch new offers and reposition existing ones.

And at the end of it all – this long journey through chocolate – the Nestlé team has a market map, a guide book to help them navigate the perils and pitfalls, the opportunities and excitement that is chocolate bars on the Australian continent.

How did we Add Value?
We created a formidable force between our passion for brands, the consumer’s passion for choc and the brand team’s love for their long time favourite, Kit Kat.

“The Chocolate Bar Segmentation conducted by the team at Added Value is a fundamental piece of research that has challenged and shaped our thinking to develop the optimum portfolio strategy for our bars business. It has also formed the cornerstone of our opportunity platforms to drive our innovation pipeline for 2010 and beyond.

“Added Value are a dedicated, proactive and fun team that we’ve really enjoyed working with.”  Alison Watts, Consumer Insights Planner – Confectionery

Image Credit: KitKat

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