Kit Kats target market is men and women of all ages.

The brand is youthful in nature, and focuses on the

consumer segment who love chocolate, and are willing to indulge themselves with chocolaty snacks.
What draws consumers to this brand is its association with breaks due to its tag line Have a Break,
Have a Kit Kat. Its low prices, constant over the past 100 years, allows it to target the mass consumer
market. However it still needs to work in area of nutrition in order to obtain a better place against its
competitors. Introduction of Nestle KitKat Lite will provide healthy alternative to customers to migrate from
other barnds to Kitkat Lite
Market growth rate - Kit Kat is owned by Nestl SA which also owns a range of other product brands, e.g.
baby food, bottled water, cereals, coffee, etc. In 2012, Nestls company share in Singapores
confectionary market was 9.4%. This has remained fairly constant since 2009, following a drop from
10.1% in 2007 to 9.6% in 2008. This shows us that introduction of competitor brands, as well as
increased in market share in existing competitor brands such as Ferrero Group since 2009 has led to a
drop in brand share for Nestl.
This is depicted by the bar chart showing company shares by global brand owner. As can be seen, overall
since 2007, Ferrero Group and Mars Inc.s brand shares have increased whereas Nestl SAs brand
shares have reduced.

The brand share of Kit Kat has increased from 2007, from 3.2% to 3.7%, it still lags
behind competitors such as Ferrero Rocher, Mars, Cadbury.

planning, the project team can develop indicators so that the company can plan and respond to emerging
situations before the competition (6). For example, in a line extension project, the jury of executives may
dialogue about a specific scenario in which the project is delayed for a period of time, the competition
introduces their new product first, and sales would be negatively impacted by 25% in North America.
Historical Trend Analysis
Another widely used tool is Historical Trend Analysis. Here we assume that past performance isindeed an
indicator of future sales. Basic Diffusion Models estimate the ratio of cumulative sales as a function of
sales and time, whereas simpler trend models look at sales vs. time alone (7). Rao has found that simple
extrapolations of trends give the best fit across new products in the consumer durable goods markets (e.g.
dishwashers and televisions) (7).
Simple trend models can be built using typical spreadsheet software with data from a similar product released
in a similar market (8). These numbers can be developed in aggregate (4) for a particular business unit, adding
both technology and commercial risk. Cooper calls this theExpected Commercial Value (ECV) (9):

where ECV is the Expected Commercial Value, PV is the Net Present Value of the projects future
earnings, PCS is the probability of commercial success, C is the cost of launch, PTS is the probability of technical
success, and D is the remaining development cost for the project.
Existing sales information is derived from internal records, from order-to-pay cycle analysis, the sales
information system, data warehouses, supplier inventory systems, and marketing intelligence systems (10).
Particularly important in NPD are the micro-sales analyses. That is, looking at specific products, technologies,
or regions that failed to produce the expected sales. Accounting techniques, such as Variance Analysis (11), may
be useful in Historical Trend Analysis, especially in root cause determination to extend learnings to the current
NPD effort.
ATAR Model
The ATAR Model (12) is most similar in format to a sales forecast, predicting market penetration by:

 Awareness,
Trial,
Availability, and
Repeat purchase.
Knowing the overall market size (3 million potential units in the example shown here), we estimate
the awareness of
our
new
product
(40%
in
the

example)
and the number of consumers willing
to try it (20%), and calculate the potential market as 240,000 units. If our new product is only available to
40% of those potential customers due to distribution limitations, for instance, and each customer will buy three
units every two years, our annual unit sales estimate by the ATAR method is thus 72,000 units per year.
Finally, knowing our profit per unit is $13.50, we estimate a profitable return of $972,000 for this new product.
ATAR is most commonly used for consumer packaged goods. The model is generally not as useful for
consumer durable goods, since the trial and repeat purchases are not normally part of the average buying
experience.
New Product Forecasting is a difficult but important task to determine project success. Early in the NPD
effort, the team must prepare a simple business case, including customer needs, product ideas, strategic fit, and
rough forecasts of sales and profitability. After all, companies are in business to make money!

ATAR model
ATAR model is used to

The confectionary
industry is highly

competitive in
nature. It comprises
of other world class
chocolate
maker like Cadbury
(now Kraft), Mars,
Kelloggs etc. vv
1)Differentiation
: Differentiating

current product
with the other
product on the
bases of
superior quality.
(2)Pricing:
Setting
competitive
prices of the

product so that
creating position
in the mind of
the customer
e.g Reynar has
created Nestls
nearest rivals are
Cadbury and mars.
They

often introduced
new lines of
products that are
difficult to copied or
produce the similar
product. Following
are the nearest
competitors of the
Nestle. Cadbury:

Cadbury is one of
the strongest
competitors which
got tremendous
variety of products
with significant
market share. With
the takeover of the
Cadbury by Kraft

which American
base company, it has
been stronger than
before. Cadbury got
presence in almost
each country in the
world with the
various lines of
products. Mars: One

more US based
company which
produces various
lines like mars,
snickers, galaxy,
bounty etc. Mars is
not that much
stronger competition
as compared to

Cadbury, but still it

is starting to
concentrate on the
growing market like
India and China.
With our product of
Kit Kat Nuts the
first rival is
Snickers which is

being produced by
Mars. As they got
successful history
behind providing the
nuts product, it is
going to be
challenging for the
Nestle to enter into

the market with the

new line.
Kelloggs: Kelloggs
is mainly
competitive in the
brea
kfast and cereal
products and they
are targeting the

customers by variety
of nutritional
products. Nestle has
been competing with
Kelloggs by its
cereal line
like Cheerios, Minis,
Choc Pic ets.
Following table

suggest the various

competitor of the
current product
under study and
their pricing.

1.4
Product
Offerings
Nestle kit kat which
is the existing
product of the
company and one of

the highly selling

chocolate in the
world. Extending it
to include the nuts to
the chocolate will
provide great
additional feature to
the existing
product. Following

are the main

features which will
be offered by the
Kit Kat Nuts. New
feature of nuts in the
chocolate. The nuts
will be roasted and
will be fresh.
Presence of caramel

in between as well.
Extention of the both
normal and dark
chocolate. Low
amount of
flavourings and
maximum use of
milk in the
chocolate.