Product Life Cycle

1.     At the research and development stage, Nestle Kitkat would have to put more effort in understanding the customer preferences to fulfil their needs and target the market better. Research should be carried out to learn more about the ingredients for the Kitkat Oat Bar.

2.      When the Kitkat Oat Bar is first introduced to the market, a lot of promotion efforts are necessary to ensure the product penetrate into the market in no time. Sales at this stage are low because customers are not aware of the existence of the product yet. Competition is still low as it comes from only those other substitute brands that are already existed in the market offering healthy snacks. The company should carry out more R&D in order to gain insights into the customers’ preferences and likings. Revenues are still non-existent at this stage.

3.      During the growth stage, Kitkat Oat Bar starts to reach the target market and customers start to gain knowledge about the new product’s existence. Sales begin to increase and buzz regarding the new product will start to generate. However, competition will start as other confectionary brands such as Cadburry will also imitate the ideas and come up with similar healthy snacks. Kikat shall continue with the promotion efforts to obtain the most from the sales and attract more customers.

4.      When Kitkat Oat Bar is at its maturity in the life cycle, the product sales reach its peak and become very well-known among its target customers. However, competition becomes very harsh at this stage as most of the Kitkat’s competitors have already adapted the idea and even come up with innovations that beat the Kitkat Oat Bar down. Kitkat Oat Bar should put in effort to introduce some creative changes on the product such as adding other ingredients and changing the packaging to keep its customers loyal with the brand.

5.      At the decline stage, Kitkat Oat Bar starts to become obsolete and taken over by its competitors that offer better features. The product is no longer in the trend and the sales drop gradually. Kitkat Oat Bar should choose whether to innovate or eliminate the product.