The logical move for Nestle will be to move back into its old, traditional lines and reestablish its most popular brand in its original sense. The have already readopted their original slogan for the Kit Kat brand after abandoning it in hopes of refreshing the image. Their best moves in light of the competition is to match the cosmetic variety in their product lines that their competitors have succeeded with. They have already introduced larger versions of the Kit Kat bar, as well as introduced more traditional flavors like peanut butter to the line. It would also be recommended for Nestle to adopt a more "hip" and technologically advanced look to their websites as well. They could also adopt an ad campaign that uses a character to promote their brands, which Mars has done with M&Ms and seen great success. Though Nestle clearly needs to cater to their traditional past and maintain that connection, they also must develop more...

Broadening their scope by moving traditional brands into other media like ice creams and cookies will help them remain competitive as well.
Mars may need to pay attention to the dangers that Nestle faced by bringing out too many new things at one time. Though Mars has done an excellent job with branding and connecting their brands to both worthwhile causes and pop culture, the new shapes and forms of old favorites do have the potential to get overwhelming for the consumer. The cosmetic changes keep the product image fresh, but too many choices may not benefit anyone in the long run. The combining of their products with other media has been successful, and should continue as well. Their main concern will be the current issues with the government regulation committees when it comes to health benefit claims and certain vitamin additives to their newest healthy lines.