Kitkat Analyze Marketing Environment.pdf

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<b>Analyze marketing environment</b>

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<b>- Company history</b>

+ KitKat is a cream-covered sponge cake introduced and developed by Rowntree in 1935. The first KitKat factory was established as a "four-finger wafer in York" and sold in Londonand the North. England.

+ In 1937, George Harris - marketing director of the company changed the name of the cake to KitKat.

+ 1988: KitKat is sold to Nestle

+ KitKat was first introduced to Vietnam's marketplace in 1988

<b>- Products/services range:</b>

+ KitKat comes in 3 forms: candy, cake, and ice cream.

+ KitKat has 300 different flavors worldwide with the 2 most popular flavors being traditional chocolate flavor and green tea flavor.

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<b>- Mission: Nestle states to be a leader in the fields of providing nutrition, health, and </b>

wellness for people. Nestle’s famous slogan “Good Food, Good Life” is also its company’s mission.

<b>- Core values: “Have a break, Have a KitKat” - The iconic brand is pressing the pause </b>

button in life - to enjoy a holiday.

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Supplier from Hungary chocolateRainforest Alliance certified manufacturers Sugar

CacoaScottish First Milk Farmer Milk

+ In the UK, Nestlé works closely with Scottish First Milk farmers to supply milk to KitKat. It helps to make their farms more sustainable and develop young farmers through the Next Generation Dairy Leadership Program.

<b>-Marketing intermediaries</b>

+ Retail chain: from big retailers: BigC, Coopmart, Aeon Malls to convenient stories: Circle K, Vinmart, Family Mar, and grocery stores.

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 Wunderman Thompson: Nestlé has partnered with Wunderman Thompson for the social campaign “Have a bite”, the “Blink Break” campaign aimed at Genz users. Mirum: Mirum Vietnam helped Nestlé launch a campaign named “Take a day off for

love” for Valentine’s day and “Say you do”.+ Financial intermediaries: not public

<b>- Competitor:</b>

+ In Vietnam, foreign companies that import and produce small confectionery products account for 58%. Confectionery sales in Vietnam will reach about 40 trillion in 2020. Chocolate confectionery accounts for 12% of the value share.

+ In Vietnam, KitKat faces 2 competitors including M&M of Mars and Hershey.

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founding year

shareM&M

- Using animal rennet in their products

Hershey 1894 32,6% -Wide range of chocolate product-Strong name and brand image-Strong partnership (Starbucks, Coca-Cola)

- Has multiple long-term debts-Fake products, especially in developing countries like Vietnam

+ Competitive edge: Variety of flavors

 Nestlé is the world's largest beverage company and has a certain position in the Vietnamese market.

 KitKat's most noticeable advantage versus its competitors is its image and unique product design

 According to Referral Candy (2016), which granted KitKat the title of “the greatestslogan ever", its tagline, “Have a break, have a KitKat” have been staying with the brand for more than half a decade and counting (Wikipedia 2018, Marketing and Promotion section)

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the taste and weather of each region.

+ Value proposition: With the message "Good Food, Good Life" of Nestlé, Nestlé, as well as KitKat, bring nutritional and health values to consumers.

<b>- Audiences</b>

+KitKat is favored by chocolate lovers and willing to enjoy chocolate snacks or with lovers. KitKatis not favored by people who do not like sweetness or suffer from diabetes-related diseases.+Despite being popular with many people, KitKat is not immune to a few scandals. In March 2010, KitKat was boycotted by Greenpeace for using palm oil, which the environmental group claimed had resulted in habitat destruction in the orangutan forest in Indonesia.

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and milk, KitKat reduced the sugar by 7% without changing the taste.

+KitKat has done an excellent job of satisfying consumer needs and satisfaction by creating KitKat's green tea flavor.

<b>- Customer:</b>

+ KitKat provides products in 16 countries and more than 100 countries have KitKat products.+ KitKat's customers are both men and women of all ages, who love chocolate and are willing to pay for their favorite chocolate.

+ Reach a mass consumer market. However, with many successful promotion campaigns on the internet an increasing number of youngsters accessing social media more popular among young people than any other generation.

+ wholesalers and retailers in each region in Vietnam, KitKat is sold by big retailers such as Big C,Coopmart, and small convenience stores like Circle K, Vinmart, B’s mart, and even grocery stores.

Seniors

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Generation With Millennial Millennial X Baby boomersLife stage youth adult adult adult seniorIncome Teenagers

who fully depend on their parents

Mostly dependon their parents’ income or have part-timejobs

Have full-time jobs and in the process of earning income, but not much

Have stable time jobs and earn from middleto high income with or not with children blow 18 years old

full-Save money and approach the stage of retirement.

Occupation Student Undergraduate Young workers Professionals Experienced professionals Lifestyle - Mostly

studying in school.- Being educated by families and schools.- Using technology

- Seeking opportunities - Irregular schedule.- Investing their time in studying and social activities.

- Have an urge to be successful and get a stable job.- Have a family.- Working very hard. - Trying to savemoney

- Achiever.- Want to be respected.- Want to have power.- Have a busy lifestyle.- Working continuously and showing an appearance at every seminar.- Spending time taking care of their family. - Starting to pay attention to their health

- Demand to be respected.- Prefer to takepart in leisure activities- Have lots of experiences. -Rational- Spending time with theirfamilies.- Taking care oftheir health consciously

Personality - Curious- Creative- Predictable

- Ambitious- Enthusiastic- Energetic

- Ambitious - Industrious- Sensitive and

- Cautious- Sensitive- Critical thinking

-Thoughtful- Pratical- Rational

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- Imaginative- Energetic

thinking - Economically- Independent

- Materialistic-Caring for families and relationships-Independent

- Nestlé corporation also divided geographical segments in Vietnam based into nations and regions. In Vietnam, chocolate is more popular in urban than in rural areas because our country is still in the process of developing. However, Nestlé has a desire to bring their KitKat chocolate to people living in suburbs.

+ Vietnam's economy is growing, the Vietnamese GDP has raised from $14,095 billion (1958) to $223,864 (2017)

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number of grocery stores is increasing.

+The rate of competition in confectionery, especially chocolate, is increasing.

+ Vietnam has to face many natural disasters. In 2018, about 1700 hectares of industrial crops were destroyed. The big risk to building factory in Vietnam

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+ As the technological rate has rocketed in recent years and an enormous number of youngstersfrom generations Y and Z have approached social media, Nestlé deploys another strategy that depends thoroughly on social media to bring meaningful messages to young audiences. As a result, KitKat has become one of the most popular chocolate among youngsters nowadays and the corporation is in the process of keeping up with social media to maintain its position in the marketplace.

+The development of AI technology, supermarkets can easily track the behavior and behavior ofshoppers. In front of an item, customers often have different emotions and behaviors. The development of AI technology will help companies clearly observe the behavior, emotions, and concerns of customers to orient the right customers.

+Running ads on websites, internet, social networks is a popular form of advertising in today's society. This will help the company target the right audience more effectively, reach potentials effectively, and maintain relationships with customers more easily.

+In recent years, this chocolate bar is chosen to be a special gift, which people use to express their love on occasion days, such as Valentine's day.

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it reminds them of the “lucky money” envelopes. In most Asian countries like China, Vietnam, Japan, Korea “lucky money envelopes” are also believed to bring good luck to both the giver and receiver (Wikipedia 2018).

+ With a large workload, little rest time. Sweets help reduce stress, and dispel anxiety and chocolate helps protect the heart and increase intelligence.

<b>IV.Conclusion: </b>

<b>-</b> As can be seen from the customer-driven strategy, It is forecasted that KitKat will continue to target young adults and adults aged from 18 to 34, as they are the biggest share of consumer consumption

<b>-</b> KitKat previously launched some successful campaigns, hence, they should launch more in order to drive more consumers’ attention since the media has a great effect on people, primarily youth these days.

<b>-</b> KitKat has done a great job in asserting its position in the competitive confectionery market through its meaningful tagline “Have a Break, Have a KitKat” and its extraordinary four-finger design wrapped by a red-catching package.

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 chain/

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