Case Study -Kit Kat Green Tea in Malaysia

Kit Kat has slowly grown since 1990s to become Malaysia’s No. 1 chocolate brand. Kit Kat manages
to differentiate itself from strong
competitors such as Cadbury,
Cloud 9, Snickers, Van Houten,
and others to capture both young
and old demographics, who
equally enjoy it as a light snack.
However, responding to the
ever-changing consumer
lifestyles and consumption
trends that affect its position in
the market, Nestlé recently
introduced Kit Kat Green Tea to
attract a bigger target market, particularly students, young adults, those who are active in sports, as well
as professional working adults who are always busy trying to meet their deadlines. Nestlé knew that the
green tea flavour and aroma would be something very new to most Malaysians, who mostly prefer sweet
confectionery products. It thus adopted the idea of using the image of a Japanese-inspired break, the
need for relaxation to refresh and energize while enjoying a healthier version of the classic chocolate
bar. Hence, to achieve their marketing objectives, its popular “Have a break” tagline is featured in all
Kit Kat marketing campaigns, from media advertisements to packaging, due to its impact on public
awareness. In addition to the original Kit Kat tagline, Nestlé has also developed a new one for Kit Kat
Green Tea, encouraging consumers to have a “Japanese-inspired break,” specifically highlighting the
product’s unique features. Kit Kat’s latest campaign in Malaysia, called “Jalan-jalan breakers,” was
designed to show how Kit Kat can give consumers a “break” from their daily activities. Consumers can
use the hashtag “#JalanJalanBreakers and #mybreak” for a chance to win Kit Kat and Kit Kat Green
Tea backpacks and share-bags. Nestlé also introduced Kit Kat Green Tea through its Facebook and
Twitter page by posting interesting advertisements from their current fans on the new product, which
can further update and generate public awareness. In line with this, Kit Kat chose influential Malaysian
YouTuber Jared Lee to act in its video advertisements.
However, on-pack promotions are rather limited for Kit Kat Green Tea as it is a newly launched product.
The latest on-pack promotion they have is the collaboration with supermarket Giant, in which they offer
vouchers for a trip to Japan, a PlayStation, and shopping. Nonetheless, more IMC programs need to be
used to expand acceptance of Kit Kat Green Tea among consumers—green tea is not a very popular
item in Malaysia. The power of advertising on TV and radio should not be underestimated
either; these are still the most powerful media in many Asian countries.

If you were assigned the task of launching the Green Tea Kit Kat brand in your own region, how would
you begin to frame the IMC? How would you identify your key target market, position the product, and
establish your marketing objectives?

Judging by the approach that Nestlé has taken in launching and supporting Green Tea Kit Kat in
Malaysia, how would you describe their approach to budgeting?

The launch focuses on Malaysia, and the brand is very closely associated with Japan. Judging from the
fact that green tea is not very popular in Malaysia, has Nestlé made a mistake in launching the brand
there?