ContentsINTRODUCTION1MARKETING MIX2PRODUCT2PRICE3PLACE/DISTRIBUTION CHANELPROMOTIONPHYSICAL EVIDENCEPEOPLEPROCESSSWOT ANALYSISSTRENGTHWEAKNESSOPPORTUNITIESTHREATCONCLUSION AND RECOMMENDATIONREFERENCE1.0IntroductionThis assignment is based on our research of Kit Kat chocolate bars. In this assignment, we will include the marketing mix, SWOT analysis, conclusion and recommendation about Kit Kat.
Kit Kat can be said is the first chocolate bar brand in Malaysia. The origin of Kit Kat can be traced back to 1935, which a four-finger wafer was first launched in UK as “Rowntree’s Chocolate Crisp”. The idea came from one of the Rowntree’s employees who felt that Rowntree’s should make a chocolate bar that a man could take to work in his pack up (packed lunch) . The name changed to Kit Kat Chocolate Crisp in 1937, before finally becoming Kit Kat in 1949. Kit Kat has seen many changes during its first 76 years, a temporary move to blue wrapping when the recipe had to change during rationing in the Second World War, the development of a two-finger variant in the 1960s and expansion across Europe in the 1970s. However, for the last 51 years, there has been one constant, the now-classic advertising line, ‘Have a Break, Have a Kit Kat’, which appeared in one of the UK’s earliest commercial TV advertisements in 1958.In 1988, Nestle acquired Kit Kat through the purchase of Rowntree’s.
This gave Nestle company global control over the brand but except in North America and the past two decades have seen an ever-more hectic pace of brand development in established markets and manufacturing expansion in emerging markets.Throughout the decade Kit Kat has introduced several of the flavours and line extensions based on the market, ranging from the half-finger sized – Kit Kat Petit in Japan, to one large finger – Kit Kat Chunky, to the three-fingered variants in Arabia, to the twelve-finger family-size bars in Australia and France.2.
0Marketing Mix2.1ProductThe traditional Kit Kat bar has four fingers with a measurement of 9cm by 1cm. Later a bar of two fingers was also introduced that is the company’s bestselling product till today.
The Kit Kat bars have different number of fingers in accordance with the market.It starts from a size of half a finger that is available in Japan to a bar of three fingers in Arabia, to the bars of twelve fingers that are available in France and Australia. The bars of Nestle Kit Kat are sold in various forms of multi-packs, boxes, bags and even individually. “Nestle Kit Kat Chunky” was launched in 1999 and “Nestle Kit Kat Chunky Peanut Butter” in 2006 in various flavors such as milk and orange.In countries like America, UK, France and Ireland the company produces “Nestle Kit Kat ice-cream” and in countries like Malaysia and Australia it produces “Nestle Kit Kat Drumsticks”. The four fingers Nestle Kit Kat has appeared in mint and orange flavors and later in variants like blood orange, Yogurt and Lemon and lime flavors.
Kit Kat has also introduced kiwi flavor Kit Kat in New Zealand, Kit Kat Chunky New York Cheesecake, Kit Kat Caramel Burst and Sea Salt in Canada and Traditional Malaysian Nasi Lemak, durian, orange pineapple and Crunchy Pecan flavors in Malaysia. CITATION Hit18 l 1033 (Bhasin, 2018)2.2PriceIn order to sustain a strong brand image in a competitive market is level of flexibility in pricing strategy. Kit Kat has remained outstandingly stable over the last sixty years. Kit Kat’s pricing increases as sizes varies, the bigger the size, the higher the price. Kit Kat is able to reduce their production cost of cocoa by investing their own production “The Cocoa Plan” and this help to maintain the price and the product in the market.
To attract more customers, low initial entry price lower than intended established price are introduces on certain food products such as chocolates, ice-cream and snacks. This is can be used for seeking to enter marketplace and develop a niche for themselves which is known as penetration pricing Furthermore, Kit Kat has to be a competitor- based pricing, whereby there is a wide choice for customers to choose the cheapest and best customer service. However, customers would prefer to a reasonable price in market. Kit Kat should compare their price with Cadbury, Twix, Mars and other chocolate brands. So when price is not a competitive advantage, business needs to have other ways to attract customers.Kit Kat company can also apply promotional pricing, during festivity season as Malaysia is rich with different races and celebration whereby they can change the packaging colour or add some festival pictures.
Kit Kat can also offer discount pricing in certain time of the year to attract customers.2.3Place/Distribution channelDistribution channel is referred as a plan created by the management of a manufacturing business that specifies how the firm intends to transfer its products to intermediaries, retailers and end consumers. (Business dictionary,2012)The product of Kit Kat company are made accessible in all huge and driving stores and the customers can get the fine quality result of the company. The dispensation channel gives the items there frequently however recently created stores in the greater part of the business sectors get a kick out of the chance to purchase these products, which is extraordinary in quality and have enormous notoriety.
Other than that, Kit Kat can offer their clients a place to purchase their items and in addition offering to convey the items ideal to their entryways .In the end, both Kit Kat and its clients will way to deal with this circumstance which will give the most productive circumstance. Furthermore Kit Kat can expand its product ranging from Kit Kat Snacking range, Kit Kat Hunger range and any name that come up. This will help Kit Kat to demonstrate that they give it a second thought and will change because of the changing of business condition and furthermore the difference in innovation with a specific end goal to be up and coming and increasingly the less to survive and furthermore to keep up its present position in advertising by dispersion.2.
4PromotionalKit Kat product have three styles of promotional tools. It include publicity, sales promotion and internet marketing. This promotional tools for marketing have been improved over the year. Publicity make the marketing through new scope of item gives another life to business, this promotional tools was part of Kit Kat campaign. Kit Kat launched two new items of limited edition it includes Kit Kat 4 finger vanilla and Kit Kat chunky extra chocolate (Wood, 2016).
The point of launched new items was to apply attention , notwithstanding this business goes for producing more deal and to give something new to clients, it was all around arranged part of marketing campaign and organizations like Kit Kat for the most part get advantage of it . Sales promotion in the marketing campaign the item is likewise displayed in better approach to give a reviving touch to the item. Deals advancement must be performed by offering something new to clients, for example, Kit Kat propelled new wraps for its items to give another face to its item.
It is a standout the most well-known instrument for advertising and it helps in expanding deals and additionally fascination of item in any case, the business advancement based on cost can draw in a bigger number of clients than basically changing the wrap. The last tools is internet marketing. Kit Kat used social media such as Facebook, twitter and tumbler which helped in dispersing the data through online life. Through the social media most of the people can have information about new products from the brands. Youtube is the most important is this internet marketing for spreading the message as it is the most viewed website regularly by people. Kit Kat marketing campaign as been arranged thoroughly that is the reason a few showcasing apparatuses has been utilized as a part of the whole procedure.2.5Physical Evidence2.
6PeoplePeople is considered as the target market segmentation. Target market segmentation is the process of dividing a market into subsections based on specific needs and wants. These people will have similar reactions to products. The target market of Kit Kat will be all age groups of people. It included lower, middle and upper class of people. For the lower age, it will be the children. Most of the children love Kit Kat as it is a wafer based chocolate. Sweet things will attract the children.
For the middle class of people will be the teenagers. Nowadays, Kit Kat has been popular in the era of the teenagers. It also has new flavors such as green tea and red bean. By this new flavors, it can target more teenagers to buy Kit Kat. Next, the people that Kit Kat target for will be the working adults. Some of the working adults are busy with their work and do not have time to enjoy their lunch at outside.
So they will choose Kit Kat as their lunch to satisfy their hunger. The nuts inside Kit Kat can provide for hunger needs with sufficient amount of calories in one chocolate. Some of the working adults will choose Kit Kat as their tea break food as it is sweet to release stress. Eating one Kit Kat during stress can have a better mood.
It also target older people. Although older people do not like to eat sweet things but Kit Kat has combined nuts with chocolate. It is less sweet than the original chocolate. It prove worth for the older people to have some nuts with the chocolates.
The next target market of Kit Kat will be the young students. For example, the students who studying in the universities or studying in colleges. Younger people will like more about chocolate and this segments can be targeted through advertisements and promotional activities of the product. Young people nowadays are more likely depends to the electric gadgets, so the advertisements through internet will be effective for Kit Kat to target the young people.
Appropriate channel of advertisements should be use otherwise it can lead to unexpected results in the future.2.7ProcessProcess is referred to the marketing process of Kit Kat. It focuses on their customers. They have combined the nuts into the chocolate wafer as they want to target the older people also. So, the nuts is added. Furthermore, I has produces new flavors for their target people who are the young people.
This shows that Kit Kat put more focus on their customers. Process includes of how the services have been delivered to their customers. It also about their response time towards their customer complaints. It also included the information that Kit Kat tries to give to their customers. Kit Kat has specify all the information at the package of the products. The information has been stated clearly at the products.3.0SWOT Analysis3.
1StrengthsThe one of the strength of Kit Kat is its unique offering. The chocolate bar which is covered the crispy wafers it is unique taste for many people. Kit Kat has differentiated itself well from Dairy Milk and other such chocolate bars in the market.
The Kit Kat is very special in the world because it is massive distribution as Kit Kat has production in 16 countries and it has distribution in more than 100 countries across the world. Because it comes from the house of Nestle, the distribution receives a boost because of the sales channel already present for the other brands. The Nestle company has provided few excellent taglines to attract more people to like it as the brand has revolved its marketing strategy around the tagline. For example the famous taglines”Have a break, have a Kit Kat” and”break me off a piece of that Kit ” for it people will always remember have a Kit Kat during their break time.
The Kit Kat has good quality management, the chocolate is superior and the same quality ware distributed across over the world.3.2WeaknessesThe weakness of Kit Kat is unauthentic in the market because there have many duplicate version of Kit Kat. As of now Kit Kat has to fight with the duplication vigoursly. Another weakness of Kit Kat is the packaging and it is easy to broken because the biscuit is literally a wafer. It making the consumers to get a broken piece of chocolate and it might result in the consumers get frustrated while it’s happened.
The last of the weakness needs the high cost for launching new brands to supplement older, less-fashionable food products.3.3OpportunitiesJust like any other companies, the more it expands, the more profit it will acquire. By being able to penetrate the rural areas of countries, especially countries with a developing economy, the more likely it is for the brand to succeed. Rural penetration in Asian countries such as India and China has yet to be done by Kit Kat and this is where it can achieve outstanding results by using its deep pockets and establishing itself in rural areas.
3.4ThreatsLike any other companies in the world, Kit Kat has to compete with other excelling chocolate companies such as Dairy Milk, Cadbury, Toblerone, etc. With Dairy Milk being the number one selling chocolate across the globe, Kit Kat has fallen second in place to being the most consumed brand of chocolate. The competition between these two companies is wild, even though the gap between these two companies is very big.
Besides the competitors, with more and more people trying their best to watch what they are eating, people nowadays are health conscious as they want to live as long as possible. They may substitute or totally eliminate the consumption of chocolate just to keep themselves healthy. This will slowly affect not only the brand but the whole chocolate industry.4.0Conclusion and RecommendationIn the conclusion, Marketing has become a necessary factor to company success.
Each organization has to attract target group by their innovative promotional programs and active marketing campaigns. Purposes of marketing mix help the company identify their comprehensive competitive advantage to survive in current competitive market. The SWOT analysis helped firm to identify the internal and external factors that might affect future performance of product.
Nestle Kit Kat as one of popular chocolates around the world; owned their marketing strategy to survive in the competitive market. Whatever the marketing strategies of Kit Kat were good enough, competition in the market has been intense due to growing numbers of competition in the market, there still can improve its competitive advantage by adopting new and innovative strategies.To increase the new consumer and retain the royal customer, a firm will find it difficult of product which fails to satisfy the customer’s needs. Since nowadays people are pay attention on their health, Nestle could create Kit Kat series which is low fat, low calories or low sugar to the people which concern their health. As for promotion, Kit Kat takes the television, social media and several other platforms that would be within reach of our target group. By introducing a new flavor or limited edition of souvenirs to the market, limited edition of souvenir by adding unique ideas such as the country design of packages, limited edition new flavor of chocolates so that hopes to retain the target groups interest in the product.
There are several weaknesses and threat waiting for the Nestle to overcome, the company has been performance well in the past. The companies’ marketing strategies has made a good foundation for establishing a strong and positive impact. Nestle has a lot of strength and opportunities to build upon it to face future challenges. It can be confident that the Nestle Kit Kat will keep demonstrating and improving its position in chocolate and confectionery industry.Referencehttps://www.scribd.com/doc/177419202/Kit-Kat-SWOT-analysis-marketing-strategieshttps://www.marketing91.com/marketing-mix-kitkat/https://www.mbaskool.com/brandguide/food-and-beverages/527-nestle-kitkat.html