Page 116 - MYM 2016

Case Study: KitKat Nestlé Japan
Nestlé has expanded KITKAT's distribution channel to Souvenir Gifting shops by developing special avor variants and package formats.
We opened the rst shop in one of the highest tra c department stores in Tokyo in January 2014. On the launch day, we carried out a press event there and we observed a long queue for one and a half hours on the opening day, and even a erwards. We have delivered a big success with this initiative and opened altogether eight shops in major cities in Japan within a one and half a year period.
Now other countries are interested in this initiative and considering opening KITKAT Choco- latory in their markets!
e-commerce
From the beginning of our KITKAT Chocola- tory boutique initiative, we had a vision to extend its sales channel to include e-commerce. Eight shops across the country provide reasonable access to consumers but it is not realistic to add many more shops.
erefore, we opened a KITKAT Chocolatory shop on our own e-commerce platform as well as with pure players in order to achieve high reach and availability.
In line with the extension to e-commerce, we developed TV advertisements to raise awareness
of e-commerce availability as well as shops. We believe there is an opportunity to develop a highly pro table business generating tens of billions of yen through this KITKAT Chocolatory business.
conclusion
Nestlé Japan has developed a highly sustain- able, pro table business for KITKAT over the decades. In terms of consumer communications, we have succeeded in making it into an iconic brand through various campaigns, especially our well- known Juken (exam-takers) Campaign.
Concerning premiumization of the brand and products, we have developed a series of avor vari- eties with added value and challenged ourselves
to explore new channels. KITKAT Chocolatory is not a linear premiumization of avor variants but the development of a new business model, enabled through close collaboration with a top patissier. KITKAT Chocolatory is now positioned as a luxury brand rather than a premium brand by entering new business channels as well as delivering new product o erings. It is the ultimate brand experi- ence for KITKAT. ■
Masafumi Ishibashi is the Chief Marketing O cer and Managing Executive O cer of the Marketing & Communications Division at Nestlé Japan, Ltd.
116 | MINd YOUr MarkETING OCTOBEr 2016