PLC Model of Kit Kat Caramel Crunchy

GC MUHAMMAD ZEESHAN AZHAR BE-31-09-MECHANICAL-B-287
PRODUCT LIFE-CYCLE
The concept of product life cycle (plc) concerns the life of a product in the market with respect to business/commercial costs and sales measures. The product life cycle proceeds through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. Plc management makes the following three assumptions: Products have a limited life and thus every product has life cycle. Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller. Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage.
LIMITATIONS
It is important for marketing managers to understand the limitations of the plc model. It is difficult for marketing management to gauge accurately where a product is on its life cycle. A rise in sales per se is not necessarily evidence of growth, a fall in sales per se does not typify decline and some products, e.g. Coca cola and RC-COLA, may not experience a decline. Differing products possess different plc "shapes". A fad product develops as a steep sloped growth stage, a short maturity stage, and a steep sloped decline stage. A product such as coca cola and RC-COLA experiences growth, but also a constant level of sales over a number of decades. A given product (or products collectively within an industry) may hold a unique plc shape such that use of typical plc models are only useful as a rough guide for marketing management. For specific products, the duration of each plc stage is unpredictable and it's difficult to detect when maturity or decline has begun. Because of these limitations, strict adherence to plc can lead a company to misleading objectives and strategy prescriptions.
OBJECTIVES FOR THE LAUNCH

A wise company will look to justify every new venture in strict business terms: it will set tough performancetargets. These in turn can be converted into production targets, cost estimates and revenue projections.
QUANTITATIVE OBJECTIVES
Nestl set demanding quantitative objectives for the launch. Nestl aimed to: achieve 90distribution in all sectors of the confectionery market within the first four weeks after the launch sell 50 million units (ie 2,750 tonnes of product) in 1999, the year of the launch increase sales in subsequent years.
QUALITATIVE OBJECTIVES
Nestl also set several qualitative objectives. These were to: broaden the number of occasions on which people consume Kit Kat, with the vision that Kit Kat would be the natural choice for all breaks increase Kit Kat's market penetration by enticing new consumers to the brand, and by persuading lapsed users to return to the product, with particular emphasis on the 12-20 year old segment create real innovation in the countline market.
SUPPORTING THE LAUNCH: MEDIA, PR AND POINT OF SALE

For a new product to grab public attention quickly, it is vital to support its launch with well-targeted advertising and promotional activities. Chunky was supported by two dedicated television adverts complemented by a phone site campaign. The advertising was a big departure from previous campaigns in that it focused on the targeted age group. It concentrated on 17-18 year olds in order to capitalise on aspirational identification from the younger groups, without alienating older consumers.
In addition, Nestl invested in a range of public relations activities through radio and the national press. A detailed point-of-sale campaign supported the launch with attractive dumpbins in stores, and posters for shop windows. Field sales staff were involved in a detailed communication exercise to raise awareness in all forms of distribution channels.
THE SUCCESS OF THE LAUNCH

The launch of Kit Kat Chunky proved to be one of the best marketing success stories in recent times. Over 50 million bars were despatched within the first few weeks of the launch. Kit Kat Chunky almost immediately became the best selling countline, and this success story has continued. Nestl provided excellent support for retailers by providing them with in-store promotions and a smooth supply of the product in order to meet the massive customer demand. Within 6 months, more than 20 percent of the UK population of the UK had tried the product, and repeat rates have been very high. Both the quantitative and the qualitative objectives for the launch were quickly met. The most successful aspect of the launch and subsequent marketing activity has been that of revitalising interest in the Kit Kat line, particularly among the 12-20 year old age group. There has been a clear knock-on effect into other age groups and only a limited negative effect on the sale of the traditional four-finger Kit Kat. In addition, the Kit Kat Chunky is a versatile product with an ability to inject new ideas into the market focused at 12-20 year olds eg by producing varieties such as orange flavoured Chunky.
PLC MODEL OF KIT KAT CARAMEL CRUNCHY
CONCLUSION
The launch of Kit Kat Chunky has shown that intelligent innovation and adaptation, supported by meticulous market research and product promotion, really can extend a successful product's life-cycle significantly.
INTRODUCTION STAGE OF RC-COLA.

In the Introduction stage, RC-COLA was launched and initially promoted. Efforts were made for creating its awareness in the market, inducing trial of the product and securing space in the outletshelf. When their costs were high, sales volume were low, and there was no existing demand for RC-COLA in this stage
GROWTH STAGE OF RC-COLA

In the growth stage RC-COLA experienced rapid increase in sales volume and its competition began to increase. People got more awareness about and the increase in thecompetition leads it to decrease prices.In this stage the marketing strategies used by RC-COLA were as follows: Product improvement New models were developed It entered new market segments It enlarged its distribution channels
MATURITY STAGE OF RC-COLA

RC-COLA is in the Maturity stage from years now. The marginal costs of RC-COLA are low inthis stage, sales volume is at the peak and most of the market is covered. There is increase incompetitors which are entering in the market. RC-COLAs brand differentiation and featuresdiversification is emphasized to maintain and increase market share.
DECLINE STAGE
This is the stage in which sales of the product begin to fall. Either everyone that wants to, has bought the product or new, more innovative products have been created that replaces that product.
PLC MODEL OF RC-COLA

PLC Model of Kit Kat Caramel Crunchy

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GC MUHAMMAD ZEESHAN AZHAR BE-31-09-MECHANICAL-B-287

OBJECTIVES FOR THE LAUNCH

SUPPORTING THE LAUNCH: MEDIA, PR AND POINT OF SALE

THE SUCCESS OF THE LAUNCH

PLC MODEL OF KIT KAT CARAMEL CRUNCHY

INTRODUCTION STAGE OF RC-COLA.

GROWTH STAGE OF RC-COLA

MATURITY STAGE OF RC-COLA

PLC MODEL OF RC-COLA

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