KITTY (Nestle Indonesia) Marketing Plan Essay
Continue to 1958, Donald Sillies, an executive at advertising agency JET in London developed the classic line: “Have a break, have a Kit Kate”. In 1970, KITTY did global expansion in Europe, USA and Japan. In 1990, there was also global expansion to China, Malaysia, India, Bulgaria, Venezuela, and Turkey. In 1988, Nestle Company saw a great opportunity to build on its long and proud heritage in the chocolate category. After a hard fought battle Nestle© emerged as the winner in acquiring the Renowned business.
From 1999 – sass there has many innovation of KITTY London, such as KITTY Chunky, KITTY pop Choc, and KITTY orange, while in Japan as 2nd largest Nestle market, have been developed more than 100 recipes. Therefore, KITTY Indonesia also wants to add new innovation to Indonesia market. [ (Kitty, 2012)] OPT. Nestle Indonesia is one of Nestle branch that is located in Jakarta Sealant, with its head office in Peeve, Switzerland. It is created by Henry Nestle, founded over 140 years ago by Henry Nestle©, a pharmacist.
Nestle Indonesia has been operated since 1971, with more than 2600 staff, in 3 different industries such as Paprika Kenya, Pastures, Jaw Timer, Paprika Panging in Lamming and Paprika Kappa in Banter. More importantly, Nestle© motto “Good Food, Good Life” describes the company’s ongoing commitment to combine science and technology to provide products that can meet the basic human needs for food and drink nutritious and safe to eat and delicious taste. In 2010, seeing the great potential market in Indonesia, Paprika Kenya has been expanded, and became one of the 10 largest Nestle© factory in the world.
In this industry, we are going to create KITTY new product. (OPT. Nestle Indonesia, 2012)
II. TARGET MARKET
Kitty Indonesia plans to expand Indonesian Kitty flavor by adding kitty green tea flavor. We as marketers choose this flavor as kitty future’s permanent flavor because green tea consists of natural and healthy substances. It has been famously known in Indonesian as herbal tea, that brings goods implications for the body, for instance antioxidant which helps humans organ from dangerous chemicals and brings ageless to a person.
It appeals to the society customers especially to women and girls who want to diet and looks young. More importantly, not only for girls, we want to segment our market for Kitty’s lover and loyal customers as well. We have some segmentation variables in our marketing development. First, for geographic segmentation, we plan to firstly distributing to the whole Java covering the size of Java Marketing Plan By Valorous urban and suburban area then after that if it is successful to fulfill our target, we are going to fulfill the demands in Bali, Sumatra, Claimant and whole Indonesia.
Second, for demographic segmentation, based on the 2000 official census, it is the fact that more than 58% of Indonesian population live in Java Island, with the total of more than 110 million. [ (Nations, Encyclopedia of, 2008)] Therefore it already covers our marketing program for achieving the objectives. Furthermore, we would segment our target market that will be appealed to our new product in groups based on ages of teenagers from age 12 to 19 especially teens or girls who are in diet, due to the fact that KITTY Green Tea less calories and no fat.
As well as to adult from age 20 to 30 whose has social class from middle to upper middles for urban people that have various activities from university student to career woman, KITTY green tea would be perfect for daily snacks. We are not really concern about the occupation and income of a person to buy our product, as long as they can fulfill their secondary deeds, as it is a snack. For the race, family cycle and religion is in general in society, therefore we do not have specific segmentation for that.
Not only that, KITTY is as well available for elderly who age from 40-60, because KITTY green tea does not contain many sugars and less calories. Third, Cryptographic segmentation based on social class and lifestyle, we segment the market from middle class to upper class with healthy urban lifestyle. People who educated well and aware of the usefulness of green tea will buy this product. Lastly, in behavioral segmentation, we segment the seer status as ex-user, potential user, first time user and regular user.
We also expect nonuser to start using our product, because we added our new segmentation to elder people. As marketers, we believe that Indonesian customers already aware this flavor because it comes originally from Japan and will be the regular flavor after original chocolate flavor which may give enthusiastic and positive attitude from Kitty’s customers.
Ill SOOT ANALYSIS
Green tea has been famously known in Indonesian as herbal tea, that brings goods implications for the body, for instance antioxidant which helps humans organ from ungenerous chemicals and brings ageless to a person.
In additional, green tea has been worldly known to be able to prevent cancer as well. Moreover, by consuming green tea continuously, it helps body to reduce the fat and discard the waste in organ of the body. That is to mention some of the benefits of green tea. Studies as well said that there is no side effect of consuming green tea, since it is purely from nature. This benefits make Kitty is an innovative product. Kitty company also use clean and sterilize production to create Kitty. We only use authentic green tea and to Just any kind of teas.
It is healthy and it will be one of the healthiest snacks in Indonesia, because Kitty Green Tea can help people in dieting process as daily snacks, so they do not have to be afraid of getting fat because of snacks. Our Research and Development as well said that it is safe for eating many Kitty green tea continuously. Furthermore, Kitty also sold with reasonable price therefore Kitty Green Tea definitely have strong competitive advantage with good promotions. Although our product has benefits, it also has weaknesses, such as not everyone loves green tea.
And also it is few people who like to drink green tea but do not like Kitty green tea. There are some people who hate green tea, and do not like the taste. We have tested to our local customers, the results is 3 out of 10 people said they did not like the taste of Kitty green tea. Although it is known as healthy, It is also unfortunate for people who have diabetes to restrain them of consuming too much, because our Kitty Green Tea still contains biscuit and chocolate which consist of sugars. We also limited in distributing the Kitty geographically, especially when e do the first launching, it is only available in the big city in Java.
Furthermore, Studies said there is negative side effect of green tea, it is insomnia due to the fact that it contains caffeine. However, green tea contains less caffeine than coffee approximately thirty to sixty MGM of caffeine in six eight ounces of tea, compared to over one-hundred MGM. In eight ounces of coffee.
KITTY Green Tea has been famously known in Japan. It is invented in there and has been trending for many years. We believe that it will be also same in Indonesia due o many people still favorite our first KITTY for years since our first launching, since then we have gained our regular and loyal customers.
In other case, there are new technologies for our company to produce our own KITTY for Indonesian market or international market so that the development and distribution processes become more efficient. It is also the big opportunity to introduce the uniqueness and the first delicious green tea snack in Indonesia originally. Threats Our threats can come from the competitors either national or internationally, due to Kitty is not the only company which produces good chocolate.
There are other brands as well that create delicious chocolate with many flavors that have their competitive advantage in the market such as to silver queen, roaches, academy, delft and so on. Furthermore, The competitive food market in Indonesia is really challenging, because Indonesian people has their own favorite foods which is might not easy for new product as green tea to change the point of view of people.
‘V. MARKETING OBJECTIVE
The goal of KITTY new product is to get the maximum profit for our company.
We have objectives to reach the maximum of total BEEP which happens when the point of illume activity in the company’s revenues and expenses are equal. Our budget for creating KITTY Green Tea is RPR. 100 million for the first years. Our marketers will not use the whole budget, yet we only use three quarters of our budgets. Our goals objectives for KITTY Green Tea are First, to increase the awareness among the target customers by 60% in first year and inform the target audience about features and benefits of our product and its competitive advantage, leading to a 30% percent increase in sales in one year.
Our action is to make advertising to promote the new Market. At those markets, we give free tester and sample to the customers. As well as souvenirs or complimentary for example if they buy 1 packages they will get KITTY shopping bag. And if they buy 2 packages and more, there will be a lottery to win more prizes. Second, Decrease or remove potential customers’ resistance to buying our product, leading to a 20 percent increase in sales that are closed in one year or less.
This Green Tea flavor will resist people who think buying chocolate is bad, for example not good for the teeth, diabetes and other complications because green tea insists of rich goods for body. We will promote the healthy effect of eating KITTY Green Tea, as well as the benefits of green tea itself. Third, Increase visibility and memorabilia of brand identity by increasing customer satisfaction to 98%. By increasing customer satisfaction, we can pushes up sales to existing customers, increases word of mouth referrals, and improves the reputation a potential customer learns about when researching the product.
We will do our best to create the best of our product using our resources. Lastly, Nestle Indonesia has all the necessary sources we want to accomplish our objectives. [ (hallmarking. Biz, 2010)]
V. MARKETING MIX STRATEGY PRODUCT KITTY
Green Tea has unique features that until now it is completely new product and there is no similar product in Indonesian market. One of unique features is green tea, as already mention before, more specifics of benefits of KITTY green tea as its competitive advantages are The fact that Chinese has been used it since ancient times as medical benefits from headache to depression.
Journal of the National Cancer Institute published the results of an epidemiological study indicating hat drinking green tea reduced the risk of esophageal cancer in Chinese men and women by nearly sixty percent. This research is also supported by recently University of Purdue researchers concluded that a compound in green tea inhibits the growth of cancer cells. There is also research indicating that drinking green tea lowers total cholesterol levels, as well as improving the ratio of good (HAD) cholesterol.
In the fact it is rich in catechist polyphony’s, particularly epistemologically gallant (EGG) which is a powerful anti-oxidant: besides inhibiting the growth of cancer cells, it kills cancer ells without harming healthy tissue. It is also effective in lowering OLD cholesterol levels, and inhibiting the abnormal formation of blood clots. Other benefits are green tea can even help dieters. In November, 1999, the American Journal of Clinical Nutrition published the results of a study at the University of Geneva in Switzerland.
Researchers found that men who were given a combination of caffeine and green tea extract burned more calories than those given only caffeine. (About. Com, 2010) Green tea also helps prevent tooth decay. It could also help prevent food poisoning; it kills he bacteria that cause dental plaque. Moreover, skin products containing green tea start from deodorants to creams are appearing on the market. The product appearance is following the Japan packaging, is nearly same with the brand Nestle from Indonesia, and the name of product is KITTY Green Tea flavor. The packaging is designed with the green as dominant color and a picture of green tea.
We developed and change the packaging from Japan into the preference of Indonesian the branding and labeling is stronger because we cooperate with Nestle Japan and it is imported from there. The production services will be included in customer services. PRICE The price of normal KITTY in Indonesia is different with different size, normally for 5 pieces in one packaging range from RPR. 11000 to RPR. 1 5000 depends on the stores. Imported KITTY sold in Indonesia is around Rapport per piece. We would want to make different size of this product, yet same price in whole stores especially in the first year.
First, the small KITTY in one piece consist of 2 bars, will be priced RPR. 5000, Second, one piece consists of 4 bars will price RPR. 10000. Third we would sell in one package consist of 5 pieces with 2 bars price RPR. 0000. Lastly, in one package consist of 12 piece with 2 bars price RPR. 75000. We would win from our competitors because it is our advantages in selling KITTY Green Tea originally produced in Indonesia, than our competitors who imported from Japan which is in higher price around Rp100000 per package. Some key cost drivers are production factors that affect the selling price of the product.
In the first year, we want to introduce the new product therefore we want to set the same price for a year, not depending in cost of production especially green tea which could priced higher in times. Meanwhile, in the following years, in order to gain more profits, the price of KITTY will change periodically to keep up the cost of productions. Other factor is coming from competitors, in order to stay competitive; we will follow the price of Indonesian market. We sell our new product to middle and upper class customers because they well educated enough of this product information so they want to buy.
With this price we are well competitive enough in the market, especially with the real green tea, makes it reasonable and affordable. Other strong chocolate competitors such as Silversides, Academy and Delft will be hard in winning with us because we have healthy and delicious chocolate.
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Green Tea will be promoted through different medias, commercially via TV commercial, magazines, billboard, internet advertising and stores. As mention before, one of the promotion is will give free tester in the first week of our launching and KITTY souvenirs or vouchers through lottery to customers who buy 2 or more packages.
At the same time, we would also make TV commercials in favorite TV channels in Indonesia such as Trans TV, Trans 7, ARCTIC, SDTV and Metro TV as suitable o our target market. Hereafter, we will also make advertisement in newspapers in Compass and magazines like Girl and Cosmological for teens, Feminine for women, Healthily and food & culinary magazine. Other promotions are billboard that is placed in a big crowded street which passes many cars like highway, or near malls.
Also internet advertising will be placed in famous website such as Faceable Youth and Google Ad to make people aware of this product