Page 114 - MYM 2016

Case Study: KitKat Nestlé Japan
KITKAT avor variants include a less sweet version of the original to appeal to more adult consumers,
and white chocolate variations such
as Green tea and Raspberry.
first kiTkaT flavor variant
Since its launch, the product has always been milk chocolate in di erent sizes and pack formats. e rst avor variant of KITKAT, strawberry,
was launched in 2000 a er extensive discussions with Nestlé HQ in Switzerland. While most of the variants in other markets added avor only to the chocolate itself, the rst KITKAT variant in Japan contained a strawberry lling between the wafers so the taste was far better than equivalents in other markets. When the product was launched in a lim- ited area to assess the opportunity size, sales per month were six times higher than the normal prod- uct in the same region. Based on this success, the product was subsequently launched nationally for a limited period.
evolution of flavor variants
A er con rming the potential for large and sus- tainable sales that could be generated by KITKAT variants, a heavy investment in manufacturing
was undertaken in order to be able to produce white-chocolate-based products so that the chocolate color re ected its ingredients, speci cally by adding fruit paste and/or freeze-dried fruits to the white chocolate. Strawberry KITKAT is pink; banana is yellow; matcha (green tea) is green, and so on.
A higher retail price was set since this inno- vation was put into place. is was a courageous way forward considering the prevailing Japanese retailing environment. It was di cult to increase the price and change the price point that consumers had become used to, as well as, of course, change the product itself.
The development of a Premium range in collaboration with Mr. Takagi
In order to enforce avor variants and recipe development, Nestlé Japan started to work with Mr. Yasumasa Takagi, a famous Japanese top patissier. He accepted the role of advisor to assist the local application team in developing product concepts and recipes. In 2015, Nestlé launched a KITKAT Takagi version that was priced 50% higher than the regular KITKAT. Consumers were excited as it was the rst time seeing a product developed between a mass-manufacturer and top patissier being sold at conventional retailers.
kiTkaT as a Souvenir
Understanding the fact that when Japanese people travel
they o en buy souvenirs to take home or to their o ce as gi s for their family, friends and colleagues,
Famous Japanese patissier Yasumasa Takagi became an advisor to Nestlé Japan and helped KITKAT develop a range of premium products.
114 | MINd YOUr MarkETING OCTOBEr 2016