Phan Hiểu Nghi
Phạm Vũ Quỳnh Như
Nguyễn Ngọc Quỳnh Anh
Nguyễn Ngọc Gia Bảo
14-16: What steps did Nestlé undertake to design KitKat’s IMC and
promotion program?
Steps in Designing KitKat's IMC and Promotion Program
1. Identify the Target Audience
For KitKat, the company identifies the target audience as everyone—the mass
consumer market.
2. Determine Communication Objectives
The objectives are set, such as building awareness and knowledge, and providing
information value to customers.
Since KitKat is already well-known globally, a primary objective of advertising is
often to remind customers about the product rather than just boosting sales.
3. Decide on Suitable Media
Nestlé selects appropriate personal and non-personal channels to deliver the
marketing message.
They use a wide array of channels, including:
Broadcast Media (radio, television).
Display Media (billboards, signs, posters).
Print Media (mostly posters, for cost-effectiveness and non-intrusiveness).
Events (like the Android KitKat operating system launch).
A blend of traditional and digital media, based on customer behavior.
4. Set the Promotion Budget (Objective-and-Task Method)
The budget is determined by:
Defining specific promotion objectives.
Determining the tasks needed to achieve those objectives.
Estimating the costs of performing the tasks.
The sum of these costs forms the proposed budget, which is then divided
among the various IMC tools.
5. Ensure Close Cooperation and Consistency
Nestlé works closely with market- and marketing-specific local-country teams to
tailor the message, considering cultural and market differences. This ensures a clear,
consistent, and compelling message is delivered about the products across all markets.
The company also designs its IMC strategy collaboratively with other groups like
sales, e-business, R&D, technical applications, and agency partners.
6. Measure Feedback
Feedback is considered vital for measuring effectiveness.
Nestlé analyzes big data from retailers and internal processes (e.g., how many people
bought the product or visited a store).
Insights from these analyses are then used to suggest changes in the IMC strategy or
the product offer itself.
14-17: Should all companies have a digital acceleration team? What
benefits did Nestlé get from having one?
Not every company needs a formal digital acceleration team, because the value depends on a
company’s size, resources, and how quickly its industry is evolving. However, for large
companies facing fast digital change—like Nestlé—a digital acceleration team can be
extremely beneficial. Nestlé’s Digital Acceleration Team (DAT) helped the company respond
more effectively to rapid technological changes by strengthening the mix of traditional and
digital IMC tools and improving its overall digital strategy. The eight-month program brought
high-potential leaders from around the world together to share knowledge, work on specific
digital marketing issues, and then return to their home units with newly developed expertise.
This allowed Nestlé to accelerate digital transformation across the organization, improve
e-commerce performance, and stay competitive globally.
Beyond training, the DAT helped Nestlé become more digitally connected through internal
social platforms where employees could engage, share ideas, and even influence customers
through blogging. Overall, the team provided Nestlé with stronger digital capabilities, faster
adoption of new marketing tools, better coordination across countries, and a more innovative,
tech-savvy culture.
14-18: How is the budget for IMC set at Nestlé? What factors might
possibly influence it?
Nestlé employs an objective-based approach to set its Integrated Marketing Communications
(IMC) budget, aligning with microeconomic principles to optimize resource allocation,
minimize costs, and maximize value in competitive markets. This involves defining
promotion goals, estimating task costs, and distributing funds across IMC tools (e.g., KitKat's
£10 million 2015 multimedia campaign to recover lost sales), treating marketing as an
investment to enhance consumer surplus and firm efficiency.
Reducing Information Asymmetry: Tailors budgets to goals like awareness, using
analytics (e.g., social media data) to bridge gaps with consumers, minimizing
principal-agent issues and improving targeting.
Minimizing Transaction Costs: Estimates and allocates costs for tasks, internalizing
processes per Coase's theory to cut coordination expenses and blend channels
efficiently.
Enhancing Market Efficiency: Responds to pricing, competition, and analytics to
maximize utility, reducing deadweight losses and extending product value.
Addressing Externalities: Considers cultural factors and collaborations to mitigate
misalignments, aligning incentives for long-term value in global markets.
14-19: What IMC tool has Nestlé mainly used to promote
KitKat and increase sales?
Nestle mainly used advertising to promote Kitkat and increase sales. They used TV
commercials and posters as they have strong visual effects to emphasize the brand message
which is “Have a Break, Have a KitKat” across more than 80 countries. Campaigns such as
the 2015 blank-screen Christmas commercial, the my break animated ad in India, the
consistent use of powerful colors on posters , broadcast, display media and the brand’s
website messaging all demonstrate that advertising is the central tool driving awareness and
engagement of Kitkat.
14-20: Explain the benefits of IMC efforts based on examples
given in this case
IMC provides several benefits for Nestle. First, it helps the company keep its message clear
and consistent everywhere, with the familiar “Have a Break” slogan appearing in TV ads,
posters, social media and even events which strengthens brand recognition worldwide. By
using both traditional media and digital channels, Nestlé can reach different types of
audiences more effectively. IMC also boosts customer engagement through fun, interactive
activities like the GPS-enabled bar contest or entering codes from wrappers which make
people more involved with the brand. It also allows Nestlé to adapt its approach to different
markets. For example, using personal selling in Pakistan or introducing KitKat Matcha in
Japan and later Europe. Finally, IMC gives Nestlé access to useful customer data which help
the company understand what works, make improvements and plan stronger campaigns in the
future.
