Question

In: Economics

1. The initial success of Kit Kat in Japan was accidental. Discuss how Kit Kat could...

1. The initial success of Kit Kat in Japan was accidental. Discuss how Kit Kat could adapt the product and market it in other countries to appeal to local cultures of its consumers.

2. In Poland, Kit Kat is often bought and included, along with other confectionery products, in sniegust, a gift of sweets, fruits, money, and clothes given to godchildren at Easter time. In the UK, the product is often consumed with tea during breaks at work. Which cultural traditions and practices could Nestlé relate the consumption of Kit Kat to?

3. Why do you think so many different flavors have been developed for the Japanese market? Why has it not been the case in other countries?

Solutions

Expert Solution

Q1) Kit Kat marketing strategy in local culture to appeal its customers.

Kit Kat is easily the most popular chocolate brand in Japan, for the simple reason that the name sounds like 'kitto katsu', which is a common Japanese expression of good luck.
Thanks to the exchanges globalization which brings opportunities to companies. You know people like their culture, and their roots and local consumer want to choose the product which mark the difference and represent their culture and sence of their values. Some companies adapt their promotion strategy for meeting the needs of a specific population like Kit Kat a Nestle product which adopt the marketing strategy basis of the geography they are entering in after studying the taste of the local market and how people relate to the product and what drives them towards the product. Fundamentally, every brand should remain true to its core values, and what it stands for KITKAT has never changed its name, or its brand message. Nestle, being a global company, essentially has a heterogeneous consumer market since people in different regions and with varying demographics have difference needs, tastes and preferences.  And this is one of the reason why Kit Kat is major brand in Japan.

Q2) Which cultural traditions and practices could Nestlé relate the consumption of Kit Kat to?

There are many political factors that Nestle must take into account in its different markets. These include taxation, laws and regulation and compliance with various laws and regulations from different regions, governments and regulatory bodies and various import and export duties among other factors. Additionally, it must also account for global changes in the political landscape and regulations as well as regional political stability in its market.
To determine the most effective marketing strategies and plans to deploy in face of competition in the beverages vertical, it is essential to carry out SWOT analysis. The aim of SWOT analysis is to identify the strengths, weaknesses, opportunities and threats (SWOT) that a business faces. In relation to its competitors, SWOT analysis reveals the following information.


Q3) Why do you think so many different flavors have been developed for the Japanese market? Why has it not been the case in other countries?

Nestlé Japan has released over 350 varieties of Kit Kats since 1973. Some have been slight variations on packaging or candy bar size, but many are entirely unique flavors. The company (Nestlé Japan) believes the limited-edition seasonal models create a "scarcity and rarity of value" for customers." This makes for perfect gifts for families, friends and co-workers back home. The company saw an opportunity to exploit the Omiyage culture in Japan, and succeeded triumphantly. And since Japan’s confectionary market is more competitive and product life cycle are short, the obscene variety of flavors in Japan apparently is a result of the competitiveness of the convenience store industry in country. So this is the reason to have different flavors in Japan where as in different countries the scope of presenting the product in front of the customer is not so tough due to having open space for displaying and of course the cultural values are different so depending upon the geography and as per market demand Nestle develop products and market them as and when required.


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