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MARKETING STRATEGY 2
Table of Contents
Introduction ........................................................................................................................... 3
Market Situation ................................................................................................................... 3
Segmentation Criteria .................................................................................................................. 3
Geographic ................................................................................................................................................ 3
Psychographics ....................................................................................................................................... 4
Demographic ............................................................................................................................................ 4
Behavioral ................................................................................................................................................. 4
Target market ................................................................................................................................. 4
Buying Behavior Issues ................................................................................................................ 5
Competitors ..................................................................................................................................... 6
Positioning .............................................................................................................................. 7
Product ............................................................................................................................................. 7
Pricing Strategy.............................................................................................................................. 9
Price strategies of Kit Kat intermediaries .................................................................................... 9
Place ................................................................................................................................................11
Promotion and Communication ...............................................................................................12
Brand Positioning ........................................................................................................................14
Band Domain......................................................................................................................................... 14
Brand Personality ............................................................................................................................... 14
Brand Values ......................................................................................................................................... 15
Brand Reflection .................................................................................................................................. 15
Brand Assets.......................................................................................................................................... 15
Differentiation ..............................................................................................................................15
MARKETING STRATEGY 3
Introduction
A famous chocolate brand Kit Kat provides a wafer bar covered with
chocolate that was previously offered by a company; Rowntree’s of York and now it
firm, which is a subsidiary of The Hershey Company and a competitor of Nestle. The
standard product contains 2 or 4 wafer bars, covered by chocolate and also separated
by a layer of chocolate (Lee, 2016). Each wafer bar could be separated from another.
Kit Kat offers variety of flavors that includes white chocolate, milk and dark
chocolate.
Since 18th century, the term Kit Kat or Kit Cat was used for food products. At
that time mutton pies were called Kit Kat and was offered at a political club known as
Kit-Cat club in UK. Christopher Catling who was a pastry chef owned the club.
Nestle has opened the production of Kit-Kat in 16 countries of the world which
includes; Algeria, Brazil, Bulgaria, Mexico, UAE, UK, Turkey, Canada, India,
Australia, Thailand, New Zealand, Malaysia, South Africa, Japan, Germany, Russia
Market Situation
Segmentation Criteria
Geographic
Nestle has based its market segmentation for its product, Nescafe ice on the
geographical weather like cold, warm or hot. They also take into account the
information like world region, country region or countryside area (Break with Kit
Kat, 2018). Thus it could easily track any changes in the customer behavior.
MARKETING STRATEGY 4
Psychographics
Nestle consider the personality traits and life styles of its customers during its
market segmentation for instance Kit Kat is for real chocolate lovers and Nescafe 3 in
1 is for those who need coffee in their hectic routines (Break with Kit Kat, 2018).
Demographic
Nestle also based its market segmentation on important demographic factors like
gender, age, earnings, literacy etc (Break with Kit Kat, 2018):
Age: Nestle offer variety of products according to their suitability for the
customer’s age, like coffee for adults and milo for kids
Earnings: Nestle offer its products at reasonably affordable rates to meet the
Profession: Nestle also consider the various professions of its customers while
Behavioral
approach of the customers while defining its market segment’s (Break with Kit Kat,
2018).
Target market
Kit Kat’s consumer market includes most of the countries of the world. Both
genders men and women are targeted (Break with Kit Kat, 2018). The target age limit
varies with the products for example Kit Kat chunk for teenagers, Kit Kat mini for
children.
Buying situation
Benefit sought: Mostly customer purchases Kit Kat for its good taste and
chocolate and milk flavors. But some countries demand more flavors for
instance it offers almost 200 flavors (Break with Kit Kat, 2018). Another
feature is the various formats of Kit Kat that the consumers consider to meet
Usage: In every second almost 650 Kit Kat bars are consumed in the entire
world.
all of its customers and thus designed some special attributes to its products to
make it cutomer favorit brand (Break with Kit Kat, 2018). It enables the
customers to share their good or bad their experience of the brand through
Kit Kat can no longer attract its customer segment of kids through simply
attractive toys. Kids are now exposed to Internet that provides them with
multifunctional games and other entertainment opportunities (Break with Kit Kat,
2018). This segment is now becoming a more rigid, strong and progressive one.
patterns. Due to improved education, earnings and acceptance in society, children are
now frequently involved in almost all the decisions. Children are now involved in
working and earn money that makes them independent individuals. They are well
Kids, as compared to adults, observe all the things from big to small in a store.
They examine the environment, staff behavior. If they do not fell happy about all this
them have not realized that Nestle also offer chocolates for kids. Thus Nestle is
leading the dairy product market but not the confectionaries market.
Competitors
Kinder Bueno, a sweet brand of Ferrero. It consist of two separate wafer bars
covered with chocolate. Each bars is further divided into four pre-portioned
Twix, a sweet brand of Mars incorporated. Its two bars are made up of crispy
their new range of products, which are very much identical to that of their
competitors. An example of this could be the sale of similar size products by these
brands like Kit Kat mini, Twix mini and Kinder Bueno mini. In addition to this, all
these brands are targeting the similar market, offer similar price range, utilize same
points of selling provide resembling packaging with white and red color and their
timings of product launch is also very close with almost similar products (Kabriti,
2014).
But the unique point of Kit Kat is its shape, a four fingered chocolate bar, which is
separate the chocolate bars from each other and can further divide each bar into
proportioned bites.
MARKETING STRATEGY 7
Positioning
Product
Kit Kat is a tasteful fusion of wafer biscuit and chocolate. Its well-known
four-finger shape enables customers to share the product. It also enhanced the brand
awareness. Kit Kat’s target market includes large set of global customers thus it has to
fulfill a wide range of needs (Bhasin, 2018). Considering this, Kit Kat offers different
flavors and sizes to cater all the divergent needs, irrespective of any cultural
variations. Adaptation is its major strategy so its Product line expansion includes
flavors like tea, caramel and others to suit particular tastes of specific markets (Break
with Kit Kat, 2018). But to avoid cannibalization its major focus remains on their
main product and to increase its life cycle. Kit Kat has also experimented the brand
extension strategy. It shows that it wants to leverage its strong brand image rather
than risking a new product launch in an entirely new market (Break with Kit Kat,
2018).
MARKETING STRATEGY 8
Product slogan: Kit Kat has established its famous slogan, Have a break, have a Kit
Kat. It is focused on two major positioning goals; sharing a Kit Kat and producing
Product Packaging: The unique white and red colors of Kit Kat packaging makes the
brand more distinguishable and thus constitute an important brand attribute. Red
MARKETING STRATEGY 9
depicts passion and power while white indicates purity and cleanliness. Only during
WWII, Kit Kat had changed its traditional packaging color (Break with Kit Kat,
2018). Its packaging includes the Nestle’s logo to aware the customers about the high
quality of the product and also to create coherence among all the brand of Nestle
portfolio.
Major product elements: A wafer covered with chocolate and available in many
finger sizes. Furthermore, its original flavor and flavors offered for particular time
period like Kit Kat mint. Packaging is also another major element (Bandalkul, n.d.).
Finally different shapes of the Kit Kat like ball, mini etc.
Pricing Strategy
Over some last years, Kit Kat has maintained its price stability regardless of
the variations in the cocoa market, all because of the power of Nestle cocoa plan. But
Kit Kat snacks can vary in terms of its prices based on the place of selling or the
product itself (size, quantity and flavor) (Break with Kit Kat, 2018).
less quantities and offices etc. offer regular flavor of an large quantities of
thus sale on higher their own prices old product, with Kit Kat with other
prices to get their but with less old packaging. products of Nestle.
prices.
In mostly cases Kit kat mantains a strong control over its prices. Some
products are exclusively sold to specific stores (small quanity to small outlets). Prices
also vary among the countries where the products are sold. Kit Kat also offers
discounts on multi pack product purchase from supermarkets. Gas stations offer
quantity discounts like bye 2 get 1 free (Break with Kit Kat, 2018). Retailers offer
Kit Kat follows the competitive pricing strategy by offering same price for its
regular bar as the other chocolate bars. But price is not a competitive advantage of Kit
MARKETING STRATEGY 11
Kat so it has to rely on active communication, sales promotions and good availability
to attract more customers. In order to gain impulsive purchasing, Kit Kat tends to
Place
Kit Kat faced a highly competitive industry with many alternate products. It
makes the product placement very important as if the customer will not get Kit Kat in
one store; he is more likely to buy another product rather than searching for it in other
stores. Kit Kat follows intensive distribution strategy to make the product available
anytime and anywhere to its customers that indicates online sale and sales through its
own outlets (Break with Kit Kat, 2018). Furthermore, strong distributions network of
Nestle including supply chain, warehouses etc. has also been utilized by Kit Kat.
strategy by displaying the product near the cash counters (Bhasin, 2018). But the
approval of two companies is essential for this, which are Nestle and Carrefour in this
case, with both having strong power of negotiation (Break with Kit Kat, 2018). Kit
By following these strategies Kit Kat became able to effectively cover its
entire target market. Whenever and wherever its customers want a Ki Kat, they are
able to get it quite easily. Large amount (bulk) of Kit Kat and other products of Nestle
are purchased by some of the hypermarket and supermarket firms like Carrefour
(Break with Kit Kat, 2018). These stores than distribute these products in their stores,
spread in the entire country. Contrary to this the small stores owners rely on
wholesale channels.
MARKETING STRATEGY 12
Nestle has utilized both wholesale channels like (Nestle distribution Centre
and Metro in Europe) and retail channels in addition to the special channels like
online sales to maximize the market coverage of Kit Kat and also to increase the
availability of product (Bhasin, 2018). Through all these efforts Kit Kat’s availability
is assured in counties like France and some other countries of the world.
Their advertising strategy based on TV, outdoors media like bus stops,
billboards etc., sales promotion, street marketing and social media. Currently the firm
according to distinct cultural needs of different markets (Break with Kit Kat, 2018).
Online Promotions: Kit Kat is very effective in its online promotions. It relies on
online marketing to promote its contests, new products, events and campaigns. It
utilizes Twitter, Facebook and its website to create awareness about the existing and
upcoming products (Bhasin, 2018). Customers are able to share their experiences and
what they need in the product. It provides online innovative recipes to use the
product.
Sales promotion: Sales promotions are mostly in the form of special discounts like,
buy 1 get 1 free, or contests like cash and travel prizes. Its sales promotion strategies
MARKETING STRATEGY 13
are well advertised on Facebook. It has been observed that it does not use its heritage
rather fun and humor as its major advertiement element. In addition to this, the firm
also promoto its product inside its selling stores through designing entertaining events
for the customers where free samples are given to increase awareness and sale.
Public Relations: Kit Kat and Nestle relies on public relations to enhance the
consumer perception and brand equity of the firm. For example they promote the idea,
how their cocoa plan makes the lives of poor farmers much better in under developed
countries, in the press and on their website (Break with Kit Kat, 2018). They also
make partnership with fair trade and create a positive image in the minds of
customers.
Sponsorship and Partnership: Kit Kat also provides sponsorship to events like
football world cup. It made partnerships with some special cultural events like
movies. It also made partnership with Android to get more global visibility and
Brand Positioning
Band Domain
The targeted audience of regular Kit Kat bar includes both men and women of
age 15-40 in the entire world. While its core target is youth of age 18-24 years. In
Brand Personality
MARKETING STRATEGY 15
The Aaker’s brand personality framework defines the personality of Kit Kat as
cheerful, spirited, daring and with a very good sense of humor. As the major aim of
the brand is to give its consumers a relief break from their stressful routines so it
portrays its brand as an empathetic, dynamic and full of fun thus its customers get the
feeling of complicity and gratitude to the Kit Kat (Break with Kit Kat, 2018).
Brand Values
The brand value is well expressed in its slogan. The concept of break became
a universal and timeless identity for the brand. Idea of fun also describe the firm as it
never adopt serious advertising campaigns and maintains a quirky energy which well
suits the idea of break. Brand originality is another important brand value.
Brand Reflection
Customers could have variety of feelings after getting a Kit Kat. They may
feel cool, fun, sharing etc. as the brand is communicated these feelings as its core
values. Due to its break concept the may feel relieved and satisfied. It also gives a
youthful feeling due to its dynamic and positive character (Break with Kit Kat, 2018).
Brand Assets
Kit Kat differentiate its brand from the competitors in variety of ways which
includes a unique and attractive packaging, its four chocolate bars shape and its idea
of having a break. Provision of variety of flavors, formats and packaging defines the
Differentiation
1. Wafer stick
Offering Kit Kat as a wafer stick is a unique and distinguishing feature of the
brand. Although one of its competitors, M&M’s, also offers a type of chocolate with
wafer biscuit but being a chocolate wafer stick is something identically associated
MARKETING STRATEGY 16
with Kit Kat. It’s another competitor Ferrero Rocher has almond filled chocolate
center as its main point of difference. Ferrero Rocher has also introduced a new dark
2. Different sizes
Provision of its products in variety of sizes is another POD for Kit Kat in
comparison to its competitors M&M’s and Ferrero Rocher. Its size range includes;
single stick, four stick and double stick versions and chunky. While its competitor
M&M’s provides a mini and normal size and Ferrero Rocher provides a standard
3. Related to snacks
Kit Kat is mostly considered as snack contrary to its competitors M&M’s and
Ferrero Rocher that are mainly considered as chocolate brand or a sweet. The reason
that Kit Kat is associated with snack is the fact that it promoted itself through a
famous slogan Have a Break, Have a Kit Kat. Kit Kat pricing is considered more
reasonable than the Ferrero Rocher that positioned itself as an exclusive brand.
MARKETING STRATEGY 17
References
http://breakwithkitkat.weebly.com/brand-positioning.html
http://breakwithkitkat.weebly.com/brand-positioning.html
Break with Kit Kat. (2018). Break 1: Brand Identity. Retrieved from
http://breakwithkitkat.weebly.com/break-1.html
Break with Kit Kat. (2018). Break 5 - Formulating Future Growth Strategies for your
Break with Kit Kat. (2018). Global Business Strategy. Retrieved from
http://breakwithkitkat.weebly.com/global-business-strategy.html
http://breakwithkitkat.weebly.com/stage-1---segmentation.html
Break with Kit Kat. (2018). Stage 4 - Brand Strength. Retrieved from
http://breakwithkitkat.weebly.com/stage-4---brand-strength.html
Break with Kit Kat. (2018). The Brand Purpose. Retrieved from
http://breakwithkitkat.weebly.com/new-brand-purpose.html
Charlène, T. (n.d). Strategic International Marketing Review Kit Kat. Retrieved from
http://www.academia.edu/10141703/Strategic_International_Marketing_Revie
w_Kit_Kat
https://www.slideshare.net/kkabriti/kitkat-marketing-strategie
Lee, A. (2016). How Kit Kat Became One Of The World’s Favorite Snacks.
strategy/
https://www.marketingweek.com/2015/12/02/kit-kat-talks-up-moment-
marketing-drive-as-it-celebrates-growing-sales/