Professional Documents
Culture Documents
MARKETING REPORT
Subject Code MKTG1205
Subject Name Marketing Principles
Product Green tea (Matcha) Kit Kat
Group members-StudentID Pham Viet Hung-s3713453
Pham Thuy Vy-s3712628
Nguyen Huu Phan Trung Nghia-s3740867
Bui Tuong Van-s3740888
Le Hong Uyen-s3740992
Nong Tuan Vinh-s3740891
Thai Nguyen Hong Ngoc-s34740868
3.PRODUCTS
Chocolate & confectionery is a large and favourited brand of Nestlé not only in Vietnam but also
entire the world which includes many confectioneries made from chocolate mainly. Matcha Kitkat or
Green tea flavour Kikat is a product line of this brand, and 2004 is the year that Matcha Kitkat was
first introduced to the Japan market, then in Vietnam and many other countries later. Matcha Kitkat is
a square milk chocolate bar covered by crispy wafer with green tea flavour, the basis Matcha Kitkat
bar comprises of 2 or 4 smaller vertical bars with the first layer of matcha flavour, 2 layers of wafer
and 1 of chocolate, and these small bars can be easily seperated just by a slightly break. Kitkat has a
very cool and appealing package which is covered mainly by light green color and the image of sweet
chocolate bar on it, moreover this type of package is also clean, glossy and easily to be opened.
Thanks to the harmonious texture of Kitkat, eaters can enjoy the entire of taste included from matcha
layer, wafer into chocolate layers. Kitkat has more than 200 flavours just only in Japan, and more than
300 flavours in the whole world, and Matcha Kitkat is one of the most special flavours. More than
that, It also has a resonable nutrition ingredient which can help people to balance their daily meals.
Matcha Kitkat is sold by single bar, 4 bar-package, 6 bar-package and 12 bar-packge.
(Emagazine, n.d.)
● Public
Nestlé are providing more nutritious foods and beverages for their customers, decreasing
harmful ingredients and eliminating artificial colors (Nestlé 2017-p30). In their 2017 annual
report, Nestlé stated that the company aims to improving the quality of life by researching
and offering healthier food. In reality, by increasing the amount of cocoa and milk, Nestlé
tempted to reduce 7% in sugar level of KitKat without altering on taste. Moreover, the
company set their goal by the end of 2020 to even reduce sodium level in their pro ducts by
10%. These changing efforts will also create an advantage for Nestlé because people stop
using high sugar level products which may lead to fatal diseases.
● Competitor
According to Vietnam News (2017), the Vietnam’s confectionery industry is forecast to earn an
interest of 40 trillion VND (1.8 billion USD) in the next year. As a large company in Vietnam, Nestlé
currently has lots of opportunities and also face dread competitors including Mars and Hershey’s.
Based on its tagline “Good Food, Good Life”, it can be said that the main goal of Nestlé is to bring
nutritious, health and wellness to their customer. Also, Nestlé has more advantages than its
competitors which helps the company to dominate Vietnamese market in the future.
2.MACRO-ENVIRONMENT
● Demographic Environment
The population density population is one of the crucial elements to defined the market. Large and
increasing population creates a huge potential market for many businesses. Vietnam is known as one
of the developing countries in Southeast Asia with the current population of approximately 96 million
people and ranked 15th in the world (Worldometers, 2018). That would be an appealing and potential
market for Nestle company in developing business and expanding sales market. Moreover, KitKat is a
confectionery product of the Nestle company created for customers of all ages, but KitKat is most
consumed by young customers(infoscout.co,2108). According to the population pyramid of Vietnam
in 2018, more than a haft of Vietnam's population is working age from 19 to 60 years old. The
increasing number of working age population also helps to expand the market. It is a golden
opportunity for KitKat to increase product consumption level. More especially, shopping behavior
and consumption of customers depend on the educated level. In Vietnam, the quality of education has
been more advanced so that today's people have become highly educated. They tend to choose high-
quality goods and beneficial for health. Over 70 years of trying to eliminate illiteracy, Vietnam has
become a highly educated country and health consciousness. PISA (Programme for International
Student Assessment) in 2015 has declared the conclusion that Vietnam ranked 8th out of 65 countries.
● Economic Environment
Because of economic and political reforms under renovation, the economy of Vietnam has evolved.
Since 1986, Vietnam's economy has posted (GDP) annual per capita growth of 5.6 percent faster than
any other Asian economy apart from China thought war severely devastated it (McKinsey &
Company, 2108). Vietnam's GDP in 2017 considered at 6.8 percent - fastest extension in the past ten
years (World Bank, 2018). Vietnam's GDP growth rate has been rebounding and proves to be the
more promising market for confectionery product such as KitKat as Nestle intends to sell. However,
Nestlé has been facing a high market because Vietnam is an attractive market for many international
companies come to invest. Furthermore, income can strongly affect the purchasing power of
In the technological era, Vietnam is one of the countries in Southeast Asia have more than a haft of
the population (81%) using social media for daily news (Saigoneer, 2018). That would be good news
for Nestle company when they want to advertise their products such as KitKat in Vietnam. According
to VnExpress International Vietnam has the seventh large number of Facebook user in the world.
Moreover, the Nestle company have improved technology to reduce the amount of sugar in chocolate
of KitKat (BBC News, 2018).
● Natural Environment
Vietnam's natural conditions are relatively good, at least the disaster occurred. State policies and local
constraints on the environment is still at a low level, conducive to the use of the technology to bring
high economic efficiency. Vietnam is an advantaged place for building the factory to manufacture
products and also decreasing the import tax.
WEAKNESS THREATS
_ Nestle Kit Kat has limited shelf live and _ Mars, Dove are some infernal competitors of
cannot be stored for a long time (Haseeb, 2015) Nestle in Vietnam
_ Kit Kat chocolate bars cannot be carried for a _ Because raw materials that use for making Kit
long time during hot days because their cover Kat in Vietnam is mainly taken from Malaysia
will melt, which cause differences for the (Cacao), so if there are natural disasters such as
customer. storm, it will cause a negative effect on
_ In remote areas there are still fake products Vietnamese Kit Kat market.
that can strongly damage to the reputation of _ Mars is performing a special plan to conduct
Nestle companies in Vietnam (Haseeb, 2015) seasonal products that can only buy on
_ Packaging of Kit Kat in Vietnam is not perfect Christmas, such as Holiday Minis Mix Tree Gift
because sometimes water comes into the Kit Kat Box and M&M’S Milk Chocolate Candies
and breaks the wafer (Hitesh Bhasin, 2018) Yard. These products can become problems if
Nestle does not have countermeasures for
Vietnam (marspresskit.com)
1.SEGMENTATION:
Urban Rural
Population
Geographic
density high low
Demographi Occupatio
students/working Working retired
c n
pocket money/low-
Income Low-medium income
medium income
▪ Eating out
▪ Eating at
▪ Shopping
home
▪ Like eating ▪ Eating at home
▪ Usually visit
Psychologic snack ▪ Concerning
Lifestyle family and
al ▪ Interested in more about
friends on
sweet taste and healthcare
special
different flavor
occasion
User
Regular potential potential
status
Loyalty
Medium Low-medium Low
Behavioral status
2.TARGETING
❖ Marketing strategy:
Differentiated marketing strategy is used by Nestle in Vietnam. Besides the famous
origin, the company launched new flavor for the beloved Kitkat chocolate in order to
tailor customers’ need and for those who love green tea-flavored.
3. DIFFERENTIATION
Product:
Green Tea KitKat are snacks having a sweet matcha flavor mixed creamy chocolate, which give
consumers a good appetite. Besides, food safety is ensured because the treat is made with all natural-
flavors, and no artificial colors. (Madewithnestle site)
These KitKat are wrapped in a glossy paper which displays KitKat logo as well as appealing
chocolate bars on green-tea background. Even on special occasions, like Tet holiday, customers can
buy a chocolate box designed with Tet-themed background and receive lucky money pockets and
chocolate bars as gifts.
Channel:
The company has a broad distribution of goods between Southern and Northern Vietnam. In
particular, KitKat provides goods for local or big retailers, such as convenience stores (Circle K,
Family mart) and supermarket (Coopmart, Big C, VinMart).
In addition, Green Tea KitKat are also widely sold on popular selling websites (Tiki, Shopee,
Lazada).
4. POSITIONING
It costs 8,500VND per KitKat 2F chocolate bar and even lower if consumers buy more bars at the
same time. In general, the price is quite affordable for students as well as customers having low or
medium income.
Besides, Vietnamese customers are likely to know more about KitKat than other normal chocolate
brand.
Positioning Map1
Affordable vs Social Image
Position Map 2
Affordable vs Various tastes
Value
proposition
In 2017, on Tet holiday, KitKat came out an 8-chocolate-bar
boxes designed with Tet-themed background. When customers
bought these boxes, they could receive 2 matcha-chocolate bars and
lucky money pockets as gifts. Meanwhile, the price of the boxes was
V. CONCLUSION
In conclusion, Nestlé had brought a new wave to Vietnam’s chocolate market by producing
Matcha KitKat. In addition, appearing in Vietnam for more than a century had made the Nestlé
company as one of the most trusted food companies which have brought the customers’ loyalty.
Moreover, Mars Inc.- the competitor of Nestlé had lost its customers due to plastic found in chocolate
bars in 2016 which was a terrible to chocolate lovers. As a consequence, Vietnamese people spend
their loyalty to KitKat instead of Hershey’s which wasn’t strong advertised in SEA.
However, Nestlé must promote the product more attractive (not only because it is made from
green tea) to the parents’ children who are the truly buyers, they believe that eating too much
chocolate and sugar products is harmful and that will make them avoid buying KitKat. Furthermore,
the social image must be improved to achieve not only the affordable power bar but also the
popularity in Vietnam’s society. As mention above, in tropical country like Vietnam, KitKat will be
melt if it is put outside the allowed temperature for a long time which also affect badly to its value. In
order to solve it, package should be made from heat resistant material.
Everything is enhanced day by day so it is not only Nestlé but also its competitors. Many
opportunities like making special offer in specific occasion such as Tet which they had already done
in 2017 or back to school season for students, cutting down price slightly which can be a choice
because the tax of import product has been cut down. Finally, company must build a strong status in
Vietnam and also follow the culture of this country.
We hope to see this marketing report will solve the problem that Nestlé in general and KitKat in
particular is facing in Vietnam. The company will be remained in citizens’ though as a producer that
bring to them affordable high-quality products, healthy and happiness.
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