Chocolate consumption in India almost doubled Sales Volume 2011 - 88,000 tons 2008 - 50,000 tons 2008 - $418

- $418 million 2011 - $857 million Value - 2,000 crore Growth Market growing @ 18% - 20% per annum Consumption as per age: Children: 55%, Adults: 12%, Young Adults: 33%

Per Capita Consumption 2011 - 70 grams 2008 - 40 grams

Segment Bars or Moulded Chocolates (35% to 40%) Counts (30%) Panned Chocolates (Gems) (10%) Assorted Chocolates

Market share: Cadbury - 70% Nestle - 25% Marketing Cost: Cadbury - 18% of total cost of production. Nestle- 12% of total cost of production. Nestl is the world's leading Nutrition, Health and Wellness Company. The Company is committed to increasing the nutritional value of its products while improving the taste. Nestls corporate objective is to be the worlds largest and best branded food manufacturer, Nestles Kit Kat aspires to be a leading global confectionery brand. Kit Kat is produced within 21 countries few of them are : US, Canada, UK, Germany, Bulgaria, Russia, Turkey, Dubai, South Africa, India, Malaysia, Japan and Australia.

Kit Kat is a chocolate-covered wafer biscuit bar confection that was created by Rowntree's of York, England, and is now produced worldwide by Nestl, which acquired Rowntree in 1988, except in the United States where it is made under license by The Hershey Company. Each bar consists of fingers composed of three layers of wafer, covered in an outer layer of chocolate. Each finger can be snapped from the bar separately. Kit Kats unique selling points are implemented through the following global brand strategies: Different varieties and flavours Developed distribution channels which ensure the availability of Kit Kat Well known tagline: Have a Break, Have a Kit Kat

Kit Kats target market is men and women of all ages. The brand is youthful in nature, and focuses on the consumer segment who would love to indulge themselves in chocolaty snacks. Segment People looking to have a chocolate which is high in quality and moderately priced Target Group Positioning Strength All age groups Lower, middle and upper class people A chocolate to be had whenever one takes a break 1. Strong Nestle brand name 2.Excellent advertising and visibility 3.Good product distribution and availability Weakness Opportunity 1.Food products have a limited shelf life 1.Untapped rural markets 2.Better product packaging and preservation 3.Leverage Nestle's successful brand Threats 1.Other branded and local chocolate manufacturers 2.Sweets as substitutes Competitors 1.Cadbury Perk

The Kit Kat range Kit Kat Pop Choc: Kit Kat Pop Choc are delicious bitesize pieces of famous Kit Kat wafer coated in milk chocolate. Containing no artificial colours, flavours or preservatives, the new sharing bag also features LOVE TO SHARE branding in keeping with the refreshed Nestl chocolate sharing bag range. Kit Kat 2 Finger: Two Finger Kit Kat is the UK's number one biscuit. The 2 Finger Kit Kat was launched in the 1930s alongside the 4 Finger variant, and has remained a bestselling biscuit brand ever since. In the beginning, the 2 Finger Kit Kat was only produced as a milk variant, but is now available in Milk, Mint, Orange, Dark and Cookies and Cream. Annually we sell enough 2 Finger Kit Kat to go round the world more than one and a half times! Have a break with two crispy wafer fingers covered with milk chocolate, Kit Kat contains 107 Calories and no artificial colours, flavours or preservatives - a great lunchbox treat! Within the KIT KAT range you can also find the following: Kit Kat 2 finger Milk, Orange, Mint, Dark and Cookies and Cream Kit Kat 4 Finger Milk and 70% Dark Kit Kat Chunky Milk and Peanut Butter Kit Kat Chunky Duo Milk

The origin of the name The Kit Kat name originates from the late 17th century in London, when a literary club met at a pie shop owned by pastry chef Christoppher Catling. The group was called the Kit Kat club and took its name from an abbreviated version of the owner's name The history of Kit Kat August 29th 1935: First manufacture of the four-finger wafer in York. This is then sold in London and the South East of England as Rowntrees Chocolate Crisp. 1937: George Harris, Marketing Director for Rowntree, re-branded the product as Kit KatChocolate Crisp. This year also heralds the first use of the word Break in Kit Katadvertising. 1942: During the Second World War due to a shortage of ingredients including milk, Rowntree altered the recipe of Kit Kat Chocolate Crisp. The wrapper was changed to blue and the oval logo was removed along with the Chocolate Crisp. Kit Kat was written in bold. 1949: Kit Kat returned to its original milk recipe and the glory of its red wrapper. 1950s: Global International expansion in Australia, New Zealand, South Africa and Canada 1958: Donald Gilles, executive at advertising agency JWT London, creates the classic advertising line: Have a Break, Have a Kit Kat

1960s: Two-finger multi-pack was born. This new packaging format drives sales in the new supermarkets with increased home stocking by consumers. 1970s: Expansion of Kit Kat in Europe with manufacturing commencing in Hamburg, Germany. Kit Kat brand was boosted by an agreement with Hershey Corp. to sell the brand under licence in the USA. An agreement is struck to sell Kit Kat in Japan with confectionery company Fujiya. 1988: Nestl acquires Rowntree 1989: Kit Kat production begins in a new Nestl facility in Kasumigaura, Japan. 1990s: Manufacturing operations set up in Malaysia, India, China. 1996: Kit Kat Orange, the first flavour variant, is launched in the UK. 1999: Kit Kat Chunky launched in the UK, is an instant hit and quickly rolled into other developed markets. 2000: Nestl buys Fujiyas share in Japan. 2000s: Manufacturing operations set up in Bulgaria, Russia, Turkey and Venezuela. 2002: Kit Kat Chunky expanded to Central and Eastern Europe. 2005: Kit Kat Pop Choc launched. 2006: Kit Kat to become one of the first companies in the UK and Ireland to introduce Guideline Daily Amounts (GDAs) on the front of Kit Kat packs. Today over 90% of the packs, including the catering sized packs carry GDA information. 2007: Kit Kat Singles launched in Canada (later rolled into Malaysia and Western Europe). 2008: Kit Kat Senses launched in Europe and Canada 2010: 75 years of Kit Kat.

Brand Strength Internal Factors Clarity: Kit Kats brand strategy is very clear on its values and propositions. The organisation is very clear on whom they target and how are they going to reach these target customers. The social media strategy and the focus on the youth is a case in-point. Commitment: Nestle, even with its large portfolio of brands, is strongly committed to Kit Kat. Kit Kat is a profitable sector for the organisation. Nestle provides adequate time, influence and investment. This has resulted in Kit Kat being one of the brands synonymous with Nestle. Responsiveness: Kit Kat is very responsive to market changes. It has constantly evolved the product while keeping the core essentials in place. It has introduced new flavours constantly, as a promotional strategy and evolved its marketing campaign to suit the social media segment which is now its main focus. Protection: The brand is moderately protected in terms of ingredients and design scale. It has spawned imitators such as Take-It which copy the wafer chocolate. Due to different areas of production, the ingredients vary. This causes a change in flavour and lack of uniformity in taste. However, the Kit Kat brand name and the distinctive red, white and silver packaging is wellprotected. External Factors Relevance: Kit Kat has a high level of relevance with its customers. It meets the needs of chocolate lovers by providing a different type of wafer chocolate with a distinctive taste. It is widely available and caters to all demographics. It fulfils the desire of relaxation. Authenticity: The brand has a high level of capability. The heritage of Kit Kat is well-known and has clearly defined values. It has always delivered on the expectations which customers have with Kit Kat. Differentiation: The brand is clearly differentiated from its competitors. It is positioned as a chocolate for the masses. It has a clear youth target market. It is distinctive in the minds of the consumers. Consistent: Kit Kat has a highly consistent product and image. The Have a Break, have a Kit Kat is a message which resonates throughout the world. The wafer chocolate is the distinctive chocolate which is sold with variations to localise and innovate. Presence: Kit Kat does not rate highly on its omnipresence. Though it has strong recall amongst consumers, the positive imagery is low. Some consumers feel Kit Kat is starting to lose the strong association with the youth despite its marketing activities aimed at them. It is no longer one of the

highly discussed brands in either traditional or social media. Understanding: Kit Kat is highly recognized by consumers across the globe. There is good in-depth understanding of its qualities and characteristics. Consumers have good knowledge of the owner of Kit Kat which is Nestle. This creates a good symbiotic relationship and helps the Nestle and Kit Kat brand.

Tagline & Transitions: The first use of tagline 'Have a Break, Have a Kit Kat', written by Donald Gilles, can be traced back into May 1957 from an advertising agency JWT. 'Have a Break, Have a Kit Kat', written by Donald Gilles, can be traced back into May 1957 from an advertising agency JWT. (J. Walton Thompson) During the 2004-05, the brand changed its famous tagline of Have a break to " Kit Kat Khao Khush Ho Jao" translated to Eat Kit Kat , Be Happy. Introduction of Kit Kat lite in 2007 which was promoted as a healthy option for all the calorie conscious. The variant uses the tagline " 50% less sugar, 100 % taste, don't think Just bite" . The 'Have a break, have a Kit Kat' tagline got a 'desi' twist a few years ago, when the brand rolled out its 'Kit Kat break toh banta hai' communication in 2010. The brand message was communicated memorably through earlier TVCs - Squirrels (2010) and Birds (2012) Furthering its brand philosophy of taking a break from daily chores by consuming the product, Nestl's Kit Kat has launched a new ad campaign to extend the brand thought. The new campaign for the brand urges youngsters to celebrate the present and notice the fun events in their surroundings. Nestl has rolled out a new TVC for Kit Kat as part of the brands communication theme Good things happen when you take a Kit Kat break. The current Dancing Babies TVC Kabhi Kabhi break lo. Kit Kat Khao. Jane agla pal kya le aye has been conceptualised and executed by JWT Delhi. Research found that while 90 percent of the population could recite the slogan, it did not actually make them purchase a Kit Kat any more. So Nestl dropped "Have a break... Have a Kit Kat" last year and replaced it with the slogan "Make the most of your break.

Consumer Based Brand Equity (CBBE) Pyramid

1. Salience The breadth of brand awareness is strong as consumers consider Kit Kat as an option when making choices in varied product categories such as chocolates, snacks and biscuits. The depth of brand awareness is moderately strong as the brand is not at the top of mind when consumers consider purchasing chocolates or snacks; Kit Kats target product categories. However, Kit Kat is comparatively strong in its strength and clarity with regards to category membership, placing among the top 5 brands that customers would recall in these categories. 2. Brand Performance Performing consistently well across various benchmark categories, Kit Kat has a good brand performance rating. Its standardized international recipe allows it to maintain a consistent taste and flavour across geographical markets. It has an above-average shelf life, having a BEST BEFORE period of 1 year.

(Most milk chocolates have shelf lives of 6-8 months) In terms of pricing, Kit Kat has performed outstandingly well, having not raised the Real price of a finger for over 100 years. For the more health conscious, Kit Kat is one of the least calorie heavy chocolates. The recommended serving size of two fingers has a calorie count of only 90 kcal. (In comparison, a serving of Ferrero Rocher has 220 Kcal while M&Ms carry 250 Kcal.) 3. Brand Imagery The Kit Kat brand evokes two main types It is one of those unique brands that delivers a message of being young at heart, and yet has an universal appeal. By keeping its price constant over the past 100 years, it has managed to be perceived as an affordable, for everyone brand. With the help of its famous slogan Have a break, Have a Kit Kat and strong associated marketing, Kit Kat has wormed its way into consumers minds as a break time snack/chocolate. Today, men women and children of all ages automatically think Kit Kat, whenever they think about a break- time snack. 4. Brand Judgement Kit Kat is a well-loved brand with consumers judging it to deliver good quality at affordable prices. Its youthful vibes and strong associations with taking a break, make it relevant to consumers living fast-lives in a constantly changing world. Its rich history and long lasting legacy have helped it become perceived as a superior brand than its immediate competitors. 5. Brand Feelings Having grown up with the brand, and possessing strong memories associated with it, most consumers have positive feelings about Kit Kat. They think of Kit Kat as a fun, youthful brand that can lighten up their day. Its a brand that evokes feelings of laid-backness, of taking a step away from the demands of everyday life. 6. Brand Perception As a brand, Kit Kat strongly resonates with consumers. Consumers grow up eating Kit Kat, associating many of their cherished childhood memories with the brand. Repeat Purchases of Kit Kat helps them re-visit these memories and evokes strong feeling of warmth, youthfulness and comfort in them. As a confectionary product, Kit Kat has a unique taste and comes in an attractive packaging that make it a strong candidate for repeat purchases. Consumers have often spoken of feelings of Kit Kat mania: the craving for a Kit Kat immediately after eating one.