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Nestle India is beefing up its chocolate portfolio with new products.
As part of its market strategy to price its ‘premium’ products cheaper, the company this week introduced a new variant of KitKat, called KitKat Duo.
To promote KitKat, it has tied up with Paytm for cash back offer, besides a cross-promotion agreement with the yet to be released Kareena Kapoor and Arjun Kapoor starrer Ki & Ka .
Lower price point “We have seen innovations at the top end with most players introducing new brands and variants at the ₹20-plus range in this category. Our pricing at ₹10 for KitKat Duo is an attempt to offer innovations at a lower price point,” said Nikhil Chand, General Manager, Chocolates and Confectionery, Nestlé India.
Earlier this year, the company had launched Munch Nuts, which come with peanuts and peanut crème’ as part of its plan to grow the chocolate category.
Target new users Talking about the limited period Paytm collaboration, Chand said given that the brand’s core consumer is in the age group of 17-21 years, the mobile cash-back along with KitKat packs is a strategy to increase brand penetration among new users, while rewarding the existing users.
Dual treat With R Balki’s Ki & Ka set for release on April 1, the company said it was hoping to use the platform to promote KitKat Duo.
“Since Ki & Ka celebrates the individuality of two people who come together as a couple, it resonated with the thought of KitKat Duo, which has two flavours — brown and white chocolate — in a single product,” Chand added.
On the growth rate in the chocolate category, he said, “it is still at a nascent stage in India in terms of penetration, was witnessing a very healthy growth in the last few years but it saw a bit of a slowdown in 2015 for all the brands. We believe the category will bounce back soon.”
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