Those kinds of events I wrote about in the last blog seems really interesting to me.
I will continue to write about it.

In this blog, I am going to think about the advantages and disadvantages of those events that customers choose a company’s new product.
Considering about advantages, the most important advantage is that a company gets a great attention from not only existing customers but also non-existing customers. In fact, Nestle says that they added 200k new customers because of Kit Kat chunk champion.

Also, a company can avoid a big loss because if they invest one new product and do not sell well, they will suffer a big loss. By launching several new products, they do not have to test them so much before launching them and can reach different segments customers.

But, if what I wrote above is true, why do not other companies do the same kind of campaign? Are there any problems for them?
I guess that the biggest problem is the cost. If you want to do a new campaign, you have to prepare some products at the same time. This means that you have to make several product lines. It costs a lot. And, it may cause cannibalization.

To sum up, the campaign like Kit Kat chunky champion that customers chose a new product is a good way to get a great attention from different segments. They do not need to test their new product before launching it. However, it costs a lot and may sometimes cause cannibalization.

A company has to consider about this when doing this kind of campaign.

By the way, I’m really interested in Mint Kit Kat 🙂