Kit Kat Gold - Company and Product Background

In the food and beverage industry, a common approach to new product development is the production of a "limited-edition" range of flavours.

The limited-edition product is only offered for sale for a short time, with the timing of the release often coinciding with a particular season or calendar event such as Easter, Christmas or to commemorate a special festival such as Valentine's Day.

The limited time availability of such products creates a lot of excitement amongst consumers who realise that they cannot afford to postpone (delay) purchasing if they wish to try the new release.

For manufacturers, the limited-edition range creates an opportunity to experiment with product variations that are disruptive or unexpected, with relatively low levels of investment and risk.

Research suggests that the limited nature of the product is related to scarcity (low supply). This leads to consumers perceiving that the goods are more unique or exclusive, and therefore more valuable.

Confectionery company Nestl has decidedto keep KitKat Gold in its product portfolio for Australiafollowing phenomenal demand from consumers.

Since its launch last August, the chocolate maker has seen overwhelming demand for the limited-edition white chocolate covered wafer fingers.

"The reaction we received from our fans has been absolutely phenomenal. KitKat Goldhas sent chocoholics into a frenzy - it's like nothing we've seen before,"Nestl Confectionery marketing head Anna Stewart said.

"We attracted the attention of chocolate lovers across the world, with fear of missing out leadingto bids of almost A$200 per block on eBay. You asked, and we listened - we're delighted to announce that KitKat Gold will remain on shelves. Aussies can continue taking a well-deserved and deliciously caramelised break fromtheir busy day."

Consumers have been calling for the chocolate maker to keep the limited-edition bar.

"Please don't get rid of the KitKat Gold bar, it's honestly the most amazing chocolate I've ever had" - Facebook userNicole commented on KitKat's page.

"Best KitKat ever! I love a regular KitKat. But this is Gold! Not too crazy just scrumptious subtle flavour that has enough of a twist to be totally awesome. Please make thispermanent." - another user Mair said.

KitKat Gold 170g block is sold for RRP A$5.19 in grocery stores nationwide, while the medium 45g bar is available exclusively at Woolworths for RRP A$1.99. The 65g share bar is available for RRP $2.49 at 7-Eleven.

Thinking about theprice elementof the marketing mix, recommend anew product pricing strategy and a major pricing strategyfor Kit Kat to employ that would appeal to the target market and positioning of the product. You must include what metrics you would use to measure the success or effect of your pricing strategy in the discussion