In: Economics
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?
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.