KITKAT’s Core Value and Marketing Strategy


Ram Janagala Venakatesan


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KITKAT success in Japan is attributed to their
innovation of flavors, cultural insights and 
  their marketing strategy. Also they were able
to satisfy their customers with the quality and packaging size. This report
aims to define KITKAT’s core value, problem faced in creating future marketing
strategy and their target audience.


Core Values:


Symbol of Hope and Good Luck


                         KITKAT is one of the leading chocolate confectionery brand in japan.
Its strategy of finding solution to social problems of people and providing
solution through effective marketing is a huge success. KITKAT’s core value is
it represents a symbol of good luck and support for those who are in difficult
or unpleasant situation and suffered a misfortune. Thus by providing faith and
confidence to the people’s life Nestle create a social value for its brand.
KITKAT not only created a brand that provides support or encouragement to
people during the times of adversity but also provided its company’s support
during the 2011 earthquake devastation. Nestle dedicated its resources and
financial support and rebuilt the railroad tracks and a sports stadium which
were destroyed by the earthquake. Thus KITKAT proved that their company’s
commitment to its core values of creating social value by providing moral
support and hope to those people who are facing their adversity.


Problem faced
and New marketing strategy:


                           KITKAT is the number one chocolate wafer brand with different variants
of flavor offered in japan. Today concerns over the aging and declined
population, increase in the number of competitors with in the chocolate
confectionery market segment (matured market) and the estimation of low market
growth makes the sales and revenue of KITKAT to be same with no upward trend
are the challenge KITKAT is faces. The need to improve the revenue and sales and
capture market share in saturated chocolate confectionery market segment make
Nestle look for the areas of growth and new marketing strategies.


                            In highly competitive and saturated chocolate confectionery market
premiumization is one of the growth areas where Nestle target selling premium
chocolates. In order to sell in the premium category, Nestle challenge is to
make KITKAT image as a premium brand. After the launch of the luxury KITKAT
store which is named as Choclolatory Nestle was successful in achieving KITKAT with
the image of premium chocolate brand. Now instead of opening more expensive
outlets to increase sales Nestle has planned to increase sales through
ecommerce, with the premium chocolates is showcased in the KITKAT luxury store,
Nestle believes to improve sales through ecommerce. How sales can be improved
through ecommerce is a challenge Nestle is faced now. Also whether sales be
improved through export to countries like China, Europe and United states,
since travelers regularly purchased different flavor of KITKAT during their
visit to japan or finding other means for sales are the challenges Nestle faces
to improve their sales since the growth sales is predicted 0.5 in chocolate
confectionery market in japan with also increase in the competition from competitors.


LRTC candidate


people of all age groups is targeted by KITKAT in chocolate confectionery market the largest and LRTC consists of
5 segments group. First segments are adults with the age group of 35 to 49 who
are having children of the age group below 18. These children come under the
category of school students and KITKAT targets the students who take their
exams. Parents or well-wishers of these children gift them with KITKTAT as a
sign of good luck during their examination. The next segment is students in the
age group of 12 to 18 who have the power to spend money. These students gift
KITKAT to themselves or to their friends to wish them success in their exams.
The third segment group is the people in age between 18 to 24 who represent college
students and young professionals, they buy for themselves or to their
colleagues as a sign of their support and wishing them good luck. Fourth
category is the people in the age group of 25 to 34 professionals who has
increased earning and high purchasing power and last segment is fifth is aged
people above 50 years of age, they are the target customers for premium range
of chocolates.

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