1. Kit Kat
Samantha Idelson
Alex Zaremba
Hope Fentress
Chelsey Selleck
Taylor Harris

2. Big Idea

3. Simply Satisfying
• Simple Satisfaction : Kit Kat is chocolate and wafer
• Does not need special ingredients (peanuts, nougat)
• Campaign message: Simply Satisfying marketed through
television, radio, magazine, internet and other IMC
components
(Albader 2012)

4. Situation
Analysis

5. Environmental Analysis
• Social Trends
• Health Kick: Gum; Dark & Premium; Organic trend; Sugar free
• Cultural Trends
• Candy consumption increasing for adults and teens, (18-24) ;
decreasing ages 6-11
• Smaller packages in bars, bags and boxes
• 18.5% sales growth 2009-2011
• Seasonal chocolate gained 23.7% of category sales in 2011
• Economical Trends
• Hershey’s dominates market with 41% of chocolate
confectionary sales 2006-2011
(Lindell, 2012a,b,c)

6. Company Analysis
Nestle ---> Hershey

7. From Nestle to Hershey
• The first four-finger chocolate covered wafer
• manufactured by Rowntree in London in 1935
• In 1970, Rowntree agreed to license Hershey
Foods Corporation to manufacture and sell the
Kit Kat brand in USA
• Nestle took over Rowntree in 1988

8. Hershey Company
• The Hershey Company list of “Iconic Brands”
• Hershey holds about 41% of US market
• Past 5 years- Hershey saw significant increase in
annual revenue
• $4.95 mil. in 2007  $6.08 in 2011
• Kit Kat earned $198.9 million in 2011 of Hershey’s
$6.08 billion
(Annual Financials for Hershey Co.),
(Hershey’s Iconic Brands)

9. Product Analysis

10. Product Features, Brand
Personality and Positioning
• Product Features
• Chocolate, 4-finger crisp (wafer) bar
• Smooth chocolate on outside, crunchy wafer on inside
• Sold in a snack size (.5 oz), regular (1.5 oz), and king size (3 oz)
• Seasonal Packaging is offered by Kit Kat for different Holidays
including Christmas and Halloween
• Brand Personality
• Friendly and trusting personality
• Fun loving, easy going appeal attracts consumers
• as seen in their previous advertising campaigns.
• Brand Positioning
• Competitive with top 5 chocolate candy bar
• Positioned as smooth chocolate bar with a crunchy inside
• Consumers drawn to brand because it signifies “taking a break” and
“breaking off a piece of a kit Kat bar”

11. Market Share
• (2011)- market share in the Top Chocolate Candy
Box/Bag/Bar brands in 2011 was 6.7%
• Ranked #5 in the product category
• (2010)- market share in 2010 was 6.5%
• Ranked #5 in the product category
• (2009)- market share in 2009 was 5.2%
• Ranked #6 in the product category
(Market Share Reporter, 2010, 2011, 2012, 2013)

12. Annual 11-spending (2009-2011)
Ad $ Summary KIT KAT (000)
TOTAL NETWORK TV SPOT TV SYNDICATION CABLE TV
NAT SPOT
RADIO
2009 13,012.40
3,246.50
(24.9%)
21.9 (.17%) 3,501.70 (26.9%) 6,043.90 (46.4) 198.40 (1.5%)
2010 45,476.50
14,086.30
(31%)
94.6 (.21%)
14,773.60
(32.5%)
16,512.70
(36.3%)
9.30 (2.04%)
2011 43,590.80
13,219.30
(30.3%)
97.8 (.22%)
10,310.60
(23.7%)
19,963.10
(45.8%)
0.00 (0%)
(Kantar Media 2010, 2011)

13. Consumer
Analysis

14. Category Users
Demographics Down % Index Note
Gender Female 53.7 104
Age Adults 18-49 60.7 104 18-24 slightly
higher index#
but lower
%down
Race White 76.7 101 Also very
popular among
Black & Indian
Region South and
Midwest
37.4 101, 105
Characteristics Popular with those who have children (any age)
Less popular among management, business, and Financial
Operation
Less popular among ages 65+
(MRIplus,2011a)

15. Product Users
Demographics Down % Index Note
Gender Women 55.4 107
Age People 18-24 17.9 140 Women 18-
49 higher
Race Black/African
American
14.9 128
Region Midwest 25.8 119
Characteristics Not popular among widowers/divorcees
Not popular among ages of 55+
Although popular in the Midwest-not popular in the West
Popular with those who have children (any age)
(MRIplus,2011b)

16. Product Users vs.
Category Users
• Brand users are other employed while category users
have Sales and Office occupation
• Brand users are from Midwest while category users
are from South
• Western/Midwestern states overall buy more candy
• Kit Kat is more popular among Blacks/African
Americans, while White consumers are dominant
candy bar buyers
(MRIplus, 2011a), (MRIplus, 2011b)

17. Competitive
Analysis

18. Our Competitors
• Twix and 3 Musketeers are direct competitors we chose for Kit-Kat.
• Twix, 3 Musketeers, and Kit Kats are the most similar in taste
compared to other candy
• Based on 2011’s market shares of the Top Chocolate Candy
Bar/Bag/Box brands:
• In 2011, Kit Kat had 6.7% market share, Twix had 5.8% 3
Musketeers had 3.4%, makes them close competitors
• In 2009, Twix had 5.9%, Kit Kat had 5.2%, and 3 Musketeers had
4.0%, making them very similar.
• Not much has changed since 2009- safe to say 3 candy bars will
still be close competitors
(Market Share Reporter, 2009) (Market Share Reporter, 2011)

19. Twix brand personality
and positioning
• Twix brand personality is fun and playful
• Has a humorous personality
• Twix wanted to bring to life new brand positioning of
“Pause like you mean it” in a category synonymous with
Kit Kat’s “Have a break, have a Kit Kat.”

20. 3 Musketeers brand
personality and positioning
• 3 Musketeers has a playful personality.
• 3 Musketeers is positioning itself as the health
conscious candy with less fat.
• It created a campaign that talked about the
“lightness” of its candy.

21. Share of Voice (2010-2011)
2010
Brand Total Media
Spending
Network TV Spot TV
Kit Kat 68.45% 14086.3 94.6
3 Musketeers 7.7% 374.7 1.8
Twix 23.86% 2261.8 13.1
2011
Brand Total Media
Spending
Network TV Spot TV
Kit Kat 57.49% 13219.3 97.8
3 Musketeers 15.17% 1044.6 3.9
Twix 27.45% 6125.0 52.8

22. SWOT Analysis

23. SWOT Analysis
Strengths:
•Licensed by well known company
Hershey
•Price
•Variety
•Availability
•Campaign History
•Strong brand portfolio
•Iconic brand
•Long history
•Unique promotions
•International brand
Weaknesses:
•Competition
•Unhealthy
•“Annoying” Commercials
Opportunities:
•New brand flavors
•Could create a hunger satisfying bar
•Become environmentally friendly
•Premium chocolate
•Advertising during the Christmas season
Threats:
•Price of ingredients are rising
•New ideas and strategies by competitors
•Gum and sugar free candies
•Increased costs in packaging and
distribution
•Demand for organic products

24. Primary
Research

25. Once a Day
12%
Once a Week
59%
Once a Month
24%
Once a Year
4%
Never
1%
How Often Do You Eat Chocolate?

26. 1
3%
2
30%
3
48%
4
16%
5
3%
Eating habits- 1 being really healthy and 5
being not at all
healthy.

27. Survey Results
Female
56%
Male
44%
What is your Gender?
Under 18
6%
18-24
52%
25-34
16%
35-44
7%
45+
19%
What is your age?

28. Survey Results
Valentines
23%
Easter
21%
Halloween
40%
Christmas
9%
I do
not
buy
choc.
7%
What Holiday Do You Spend the
Most Money on Chocolate?
Jingle
47%
Taste
25%
Slogan
5%
Package
21%
Doesn’t apply
2%
What Comes to Mind When You Think
of Kit Kat?

29. Survey Results
Kit Kat
11%
Twix
20%
Reese’s
39%
Hershey’s
21%
None of the
above
9%
What is Your Current Favorite Brand of
Chocolate?

30. Taste
79%
Price
Brand name
15%
Calories
4%
Other
0%
I do not eat chocolate
1%
What Do You Look For When Selecting a Chocolate?

31. Target Market

32. Target Market
• Demographics
• Women
• Ages 18-34
• Race- Black/ African American
• Job- Sales and Office occupations and other employed
• Attended College and/or graduated High School
• Region- Midwest
• Have children 6-17 years old
• These are the characteristics of a typical Kit Kat
consumer.
(MRI+, 2011)

33. Psychographics
• Experiencers
• Impulsive consumers
• Seek variety and excitement
• Outlet in exercise sports, outdoor activities
• Spend high proportion of income on fashion,
entertainment, and socializing
• Want to look “cool”
(VALS, 2011).

34. Target Profile
Allison is 30 year old African American woman
who has one 7-year-old daughter. She has had a job in
sales for 3 years now. She has been dating Roger for 4
years and they are engaged to get married in the Spring.
They have lived together along with her daughter for the
past 2 years. In her free time, Allison enjoys watching
BET, MTV2, and VH1. She loves to read Life and Style
Weekly and In Touch in order to keep up to date with what
is “cool” and in style. She also enjoys going out with her
friends on the weekend and going to the gym during her
lunch break at work. Allison relishes in her experiences and
often spends her extra money on impulsive purchases.

35. Objectives

36. Marketing Objectives
• Objective: To increase market share by
0.6% from 6.7% to 7.3% in a eight month
campaign period
• Rationale: In 2009, Kit Kat had a market
share of 5.2%. Then in 2010, Kit Kat’s
market share rose to 6.5%This 1.3%
increase occurred over a one year period.
Therefore, our 0.6% increase over six
months is both attainable and realistic.

37. Advertising Objectives
• Objective 1: To promote positive brand image among
70% of the target market.
• Objective 2: To have 25% of the target market report a
preference of Kit Kat over Twix.

38. IMC Objectives
• Attract attention of consumers
• Holiday-themed packaging
• Brand reinforcement
• Writing pens with Kit Kat colors and logo
• Promotion
• Social media promotion- establishment of a Kit Kat USA
Facebook page

39. Budget

40. Budget
• Total Budget: $67,000,000
• Advertising Cost: $60,038,600
• Media Cost: $44,000,000
• Contingency (8%): 3,520,000
• Production Cost: $16,038,600
• IMC #1 (Packaging 1.22%): 817,400
• IMC #2 (Specialties 1.20%): 804,000
• Contingency (8%): $5,340,000

41. Media Objectives
and Strategy

42. Reach vs.. Frequency
• To reach 74% of African American women
ages 18-34 at a frequency of 2.5 times
every four weeks over the 8 month
campaign period.
• The overall goal of the campaign is to
focus on frequency by
• increasing brand preference

43. Geographic Coverage
• The focal geographic coverage will be the
Midwest.
• Extra advertising will be placed outside of the
Midwest in the Northeastern region.
• SRDS reports high index numbers among:
• Those who snack in between meals
• Those who are not calorie conscious

44. DMAs

45. DMAs

46. Seasonality
• Heavy advertising will be concentrated in the
months of October and December
• Primary research taken by survey showed that the
highest sales during holidays took place during
Halloween and Christmas

47. Advertising Objectives
• We believe our advertising objectives can be met by
using TV, Radio, Magazines and Internet.
• Television will maximize reach to a large number of people in a
short period of time
• Radio will achieve a higher frequency during specific day parts to
reach our target market
• Magazines are frequently used by our target audience. They also
have a long shelf life and high secondary readership, allowing for
repeated views
• Internet will maximize both reach and frequency through the
prevalent use of it by our audience and also due to its convenience
in modern every day life

48. Media Mix and
Specific Vehicle
Recommendations

50. Quarterly breakdown
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1.5
mil
1.5
mil
1.5
mil
1.5
mil
1.5
mil
3.5
mil
1.5
mil
3.5
mil
4.5 mil 0 3 mil 8.5 mil

51. Magazine by Category
• Bridal
• Ex. Bridal Guide
• News and Entertainment Weeklies
• Ex. People
• Parenthood
• Ex. Parenting
• Women’s Fashion
• Ex. Cosmopolitan
Total '000 Proj '000 Pct Across Pct Down Index
Bridal Magazines 6962 2524 36.3 11.1 189
News and Entertainment
Weeklies 46859 9949 21.2 43.7 111
Parenthood Magazines 21038 8039 38.2 35.3 200
Women's Fashion Magazines 18464 4627 25.1 20.3 131

52. Television- Network, Spot,
and Syndicated
• Dayparts:
• Primetime
• Daytime
TV(Primetime)V(Light) 23777 6385 26.9 28.1 140

53. Television- Cable
• Specific channels include: Adult Swim, BET, Bravo, Comedy
Central, E! (Entertainment TV), FX, MTV, MTV2, Oxygen,
Vh1, and Nickelodeon
Total '000 Proj '000 Pct AcrossPct Down Index
Adult Swim 6581 2546 38.7 11.2 202
BET (Black Entertainment TV) 12380 2927 23.6 12.9 124
Comedy Central 19362 5161 26.7 22.7 139
E! (Entertainment Television) 22914 5980 26.1 26.3 136
FX 16179 4630 28.6 20.3 150
MTV 21031 7338 34.9 32.2 182
MTV2 5905 2020 34.2 8.9 179
Oxygen 16185 3767 23.3 16.6 122
Vh1 13828 4213 30.5 18.5 159
Nickelodeon 18084 4690 25.9 20.6 136

54. Radio
• Day parts include:
• Weekday 7- Midnight (Primetime- late news and late fringe)
• Weekday 3-7 PM (Daytime- early fringe)
• The stations to air Kit Kat commercials will include Top 40, Hits,
Country and Pop. These were chosen based off geographic region.
According to MRI, magazines and television with similar themes to
these genres of music reported the highest index numbers.
Total '000 Proj'000 PctAcrossPctDown Index
Weekday3:00pm- 7:00pm 37109 8758 23.6 38.5 123
Weekday7:00pm- Midnight 17741 4711 26.6 20.7 139

55. Internet
• We chose to use sponsorship and targeted sites as
internet advertising
• Those specific sites include:
• Gmail.com
• Pandora.com
• Ticketmaster.com
• Groupon.com
• Expedia.com
• Careerbuilder.com
• Amazon.com
• Disney.com
• Nytimes.com
• Weatherbug.com

56. INTERNET
TOTAL '000 PROJ '000
PCT
ACROSS PCT DOWN INDEX
Pandora.com 11120 4650 41.8 20.4 219
Gmail.com 21725 6670 30.7 29.3 160
Ticketmaster.com 6652 1871 28.1 8.2 147
Groupon.com 8866 2365 26.7 10.4 139
Expedia.com 10668 2443 22.9 10.7 120
CareerBuilder.com 7520 2293 30.5 10.1 159
Amazon.com 25360 6222 24.5 27.3 128
Disney.com 3847 1244 32.3 5.5 169
NYtimes.com 4992 1274 25.5 5.6 133
Weatherbug.com 4966 1597 32.2 7 168

57. Executive
Summary

58. Summary
• Campaign will run from September- April
• Spot advertising- October and December
• Media budget is $44 million
• Big Idea is “Simple Satisfaction”
• Target audience is African American women ages 18-34

59. Summary
• Mediums to promote this message:
• television commercials, radio commercials, magazine ads, and
IMC components
• IMC components:
• promotional pens and seasonal wrappers
• Competitors:
• Three Musketeers and Twix
• Past market shares are very similar to Kit Kat
• Two objectives:
• To promote positive brand image among 70% of the target market
• To have 25% of the target market report a preference of Kit Kat
over Twix.

60. IMC Examples
Wrapper and Pen

61. Halloween Wrapper

62. Pen
Visual

63. Advertising
Magazine, TV, Internet, and Radio

70. Internet 1

71. Internet 1
Simply
Satisfying

72. Internet 2

73. Radio
Audio.

74. Thank you