Kitkat Analyze Marketing Environment.pdf

+ 1988: KitKat is sold to Nestle + KitKat was first introduced to Vietnam's marketplace in 1988 - Products/services range: + KitKat comes in 3 forms: candy, cake, and ice cream.. + KitKa

Analyze marketing environment

- Company history

+ 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 London and 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

- Products/services range:

+ 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

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

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

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

button in life - to enjoy a holiday

II Microenvironment:

- Suppliers: we can divide KitKat's suppliers into two sections: Labor and material

suppliers

+ 57,000 farmers receive practical training in agricultural practices that help them improve yields, reduce cocoa disease and improve grain quality

+ The raw material supplier plays a role in handling the supply of sufficient raw materials needed to manufacture the final products

Supplier from Hungary chocolate

Rainforest Alliance certified manufacturers Sugar

Cacoa Scottish 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

- Marketing intermediaries

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

 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

- Competitor:

+ 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

founding

year

share M&M

of Mars

1941 27,9% -Family owned

-Focus on nutritious product -Strong name and brand image

-Recalls chocolate bars in 55 countries after plastic found in this product

- 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 greatest slogan 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)

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

- Audiences

+KitKat is favored by chocolate lovers and willing to enjoy chocolate snacks or with lovers KitKat

is 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

+Media public:

 TVC: "Take a day off to love" on Valentine's Day 2014

 Google: Android KitKat

 Youtube, Facebook, Instagram: In Vietnam: "Nghi don tet" (2022), "Tim gau dau kho, nghi xiu de yeu cung KitKat" (2019)

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

- Customer:

+ 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

III Macroenvironment:

- Demographic:

Segment Youth Young adults Young working

adults

Mature working adults

Seniors

Generation With Millennial Millennial X Baby boomers Life stage youth adult adult adult senior Income Teenagers

who fully

depend on

their parents

Mostly depend

on their parents’

income or have part-time jobs

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

Have stable full-time jobs and earn from middle

to high income with or not with children blow 18 years old

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 save money

- 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 take part in leisure activities

- Have lots of experiences -Rational

- Spending time with their families

- Taking care of their health consciously

Personality - Curious

- Creative

- Predictable

- Ambitious

- Enthusiastic

- Energetic

- Ambitious

- Industrious

- Sensitive and

- Cautious

- Sensitive

- Critical thinking

-Thoughtful

- Pratical

- Rational

- 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

Economic:

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

$223,864 (2017)

number of grocery stores is increasing.

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

Natural:

+ As of April 2022, the world has about 8.2 billion tons of plastic Nestlé will use 100% reusable

or recycled materials in packing by 2025.

+ In Vietnam, the composition of chocolate must be guaranteed to withstand these harsh weather conditions After careful consideration, Nestlé in Vietnam decided to add many special ingredients to KitKat chocolate to prevent the chocolate from melting or breaking the quality + Vietnam is an agricultural country and is famous for developing coffee and cocoa

advantageous for Nestle to develop a factory.

+ 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

+ As the technological rate has rocketed in recent years and an enormous number of youngsters from 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 of shoppers 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

Political:

+Vietnam has established relationships with many countries around the world, creating favorable conditions for foreign businesses

+The business law against counterfeiting in Vietnam is still weak Creates a disadvantage for companies by the penetration of fake goods.

Cultural:

+Vietnamese people, especially young people love to eat snacks, in Ho Chi Minh City in 2017 it was estimated that about $354 was spent on snacks KitKat nearly satisfies most of the Vietnamese criteria, including reasonable price, high quality, various flavors, convenience, and different size packaging

+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

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

IV Conclusion:

- 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

- 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

- 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

 https://vi.wikipedia.org/wiki/Kit_Kat

 https://bibomart.com.vn/kitkat.html

 https://www.nestle.com/brands/chocolate-confectionery/kitkat ( core value)

 https://www.academia.edu/40342775/Slide_ba_o_ca_o_cuo_i_kho_a_Nho_m_S_O_S

 https://www.studocu.com/vn/document/royal-melbourne-institute-of-technology-university-vietnam/marketing-principles/hd-assignment-1-kit-kat/10303299



https://www.go4worldbusiness.com/find?searchText=kit-kat&BuyersOrSuppliers=suppliers

 https://www.nestle.co.uk/en-gb/media/newsfeatures/kitkat-in-society

2020/160683.html

 https://www.richs.com.vn/xu-huong/5-loi-ich-cua-banh-keo-doi-voi-suc-khoe

 https://data.worldbank.org/country/vietnam

 https://www.statista.com/statistics/755571/vietnam-convenience-store-number-by-chain/

 https://www.pngegg.com/vi/search?q=KitKat+android

 https://digimind.vn/kitkat-ra-mat-chien-dich-have-a-bite-dinh-nghia-cach-an-chocolate-the-nao-moi-dung-3425192

 https://toanan.com.vn/tin-tuc/thong-ke-ve-rac-thai-nhua-toi-nam-2021/

 http://breakwithkitkat.weebly.com/stage-1 -segmentation.html?

fbclid=IwAR2H6LKKwjPmRUKGgloVf8fSH5WCer1I9uXgOdQ9N5YufMDFQvY4qqsp5rY

 https://www.greenpeace.de/biodiversitaet/waelder/waelder-erde/kampagne-kitkat-suesses-bitterem-beigeschmack

 http://kitkatmarketing.blogspot.com/2014/09/segmentation-targeting-positioning.html

 file:///C:/Users/UYEN%20SU/Downloads/74422381-1-Kitkat.pdf

 https://www.nestle.com/media/news/kitkat-carbon-neutral-2025-sustainability-efforts#:~:text=To%20support%20this%2C%20KitKat%20will,sources%20its%20cocoa

%20by%202025.&text=KitKat%20is%20working%20to%20improve,ton%20of%20product

%20since%202000



https://www.mbaskool.com/marketing-mix/products/17367-kit-kat.html#:~:text=Marketing%20Strategy%20of%20KitKat%20analyses,pricing

%20approach%2C%20promotion%20planning%20etc