Nestle's Kit Kat Bars Give Consumers An RtB In Japan

from the you-will-surely-win dept

Techdirt reader Kathy writes in to let us know about the 200 different flavors of Kit Kat candy bars in Japan. Public Radio International describes how Nestle has developed an interesting sales strategy in Japan where the competition among retailers is apparently so great that stores benefit from constantly updating their shelves with new products. In such a marketplace, Nestle has adopted numerous varieties of its Kit Kat candy bars that can only be purchased in certain locations or at specific times of the year. So instead of trying to peddle the same merchandise to everyone, Nestle has effectively given consumers a reason to buy (RtB) -- by making limited edition flavors and targeting the local tastes and customs in Japan. Nestle caters to Japan's omiage gift-giving culture (where friends are expected to bring back unique trinkets when they travel) with regional Kit Kats. So for example, a potato-flavored version is only sold in the northern part of Japan known for its potatoes, so northerners (or traveling southerners) can give out unique treats that aren't available nationwide. And all over Japan, the candy bars have also been packaged with mailing labels -- so that the candy can be sent as "good luck" charms. Due to the ingenious connection to the Japanese words Kitto Katsu which mean "you will surely win", the "good luck" symbol for Kit Kats in Japan was also successfully manufactured and marketed and as a result, Kit Kats have been popular with exam-taking students who seem to want good luck, however they can get it.

Clearly, Nestle must be admired for its efforts to connect with candy fans. And it's particularly brilliant to see them bundle candy bars as good luck charms -- a story that adds intangible value to the otherwise ordinary snacks. Perhaps it's only a matter of time before some artists write some flavor-inspired songs/plays/films and try to sell loooots of Kit Kats, too.

Filed Under: japan, kit kat, reason to buy, rtb
Companies: nestle

Nestle Sues Company That Came Up A Product 15 Years Before Nestle Patented It...

from the ain't-the-patent-system-great? dept

Today's story of patent insanity comes to us courtesy of Wysong, a small natural pet foods company that came up with a method to put probiotics in foods in the early 80s. The company used the technique to sell pet food biscuits that supposedly have certain health benefits. As its products became more popular, the company saw copycats come into the market, but figured it helped everyone (including the pets), and there was nothing wrong with that. Then... fifteen years later, Nestle, the owner of Purina, happened to patent the very same process and, a few years later, sued Wysong, demanding royalties all the way back to when it got its patent. Wysong's owners responded, pointing out that their product had been on the market since long before Nestle's patent... to which Nestle responded with a threat to sue Wysong in federal court. Knowing Wysong probably didn't have the millions of dollars it would take to fight a patent lawsuit, Nestle tried to pressure them to just give in and settle right away. The company is fighting back (and has been able to stop Nestle from getting an identical patent in Europe thanks to its prior art), but it's a costly battle.

The patent system defenders who are always quick to comment on this site like to talk about how they're really defenders of "small inventors" against evil "big businesses" who are trying to steal their work. I'm curious what they think about this case, where the exact opposite is happening?

Filed Under: dog treats, first to invent, patents
Companies: nestle, purina, wysong