final report the impact of situational factors on consumer decision making of kitkat

KitKat, a globally renowned chocolate brand, has made its mark in 16 countries, including Vietnam, Mexico, Japan, Thailand, and more.. Japan stands as the second-largest market for KitKa

VIET NAM GENERAL CONFEDERATION OF LABOR

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

BAI HOC TON ĐỨC THẮNG

FINAL REPORT THE IMPACT OF SITUATIONAL FACTORS ON

CONSUMER DECISION MAKING OF KITKAT

Instructing lecturer: Mrs Nguyen Thi To Mai The Student Group performs:

Le Ngoc Bao Tram 721H0224 Doan Trieu Duy 721H0532 Tran Hoang Tan Phuc 721H

Academic year: 2023-2024

| Ho Chi Minh City, 15 August 2023 |

ACKNOWLEDGEMENT

First of all, I would like to thank the teacher of Ton Duc Thang University for imparting to

me valuable knowledge so that I have enough experience to successfully complete the

assigned tasks during the internship In particular, I would like to thank my instructor Nguyen

Hoang Phong for giving necessary ideas to help myself in particular and my classmates in

general improve their bad points when performing their work

At the same time, I would like to sincerely thank Ms Hoa Head of Housekeeping

Department, Ms Diem, Mr Dang, Mr Nam, Mr Khoa who are senior managers of Mai

House Saigon Hotel for creating the best conditions for me to practice and experience at a

professional workplace, environmentally friendly Besides, I also thank all the brothers and

sisters in the Housekeeping department for their dedicated guidance and guidance in the first

days of working until now in a thoughtful and considerate way In just 2 short months, I have

felt everyone's affection for me, this is a time I will remember for the rest of my life

Through my time studying at the school and also interning at Mai House Saigon Hotel, I have

learned and gained a lot of practical experience It 1s true that studying is not enough, but we

have to go hand in hand with practice to have a better understanding of the field of study we

have chosen

Finally, with great respect and gratitude, I would like to wish you a lot of health and wish you

who are working at the hotel to grow smoothly in your business and have a lot of health

1 INTRODUCTION

1.1 About the company

1.1.1 History of formation and development:

Kit Kat's journey traces back to the late 17th century in London, and it took its iconic four-

finger wafer form on August 29, 1935, in New York Originally known as "four-finger wafer

in York" the product underwent a rebranding in 1937, becoming Kit Kat chocolate crisp,

accompanied by the famous tagline 'Have a break, Have a Kit Kat' in 1958 The onset of

World War II in 1942 led to a change in the Kit Kat recipe due to ingredient shortages,

prompting the use of a blue wrapper and bold Kit Kat lettering The original milk recipe and

the red wrapper returned in 1949 In 1988, Kit Kat joined the Nestlé family after being

acquired by the global confectionery giant The brand's expansion journey continued,

reaching markets worldwide, from the UK to Japan, becoming a beloved treat in over 100

countries

1.1.2 Vision:

KitKat aspires to become the reigning king of confectionery worldwide From its traditional

chocolate flavor to unique variations like matcha, mint, citrus, and apple cider, KitKat has

introduced over 300 different flavors The vision is to diversify its product range, appealing

to a broad audience across all age groups

1.1.3 Mission:

KitKat is on a mission to bring satisfaction to consumers worldwide Enjoying a KitKat bar

not only creates delightful moments in people's lives but also contributes to a diverse and

balanced diet Indulging in a KitKat can bring comfort, relieve stress, and enhance the overall

well-being of consumers When consumed in moderation, chocolate is known to have health

benefits and can evoke a sense of happiness KitKat aims to be a source of joy and

contentment for its consumers globally

1.2 Nestle comes to Viet Nam

Nestle- the first time came to Vietnam in 1912 to open business office in HCM city and then,

80 years later Nestle officially opened representative office in HCM city Up to date, Nestle-

is generating eco-friendly and no-waste factories which own 2000 staffs across the country ,

representative offices in both Ha Noi capital and HCM city, and also own bottled water

company La Vie under co-business form with the total amount of investment up to $520

million The presence of Nestle in Vietnam contributes many positive improvement for the

community such as nutrition education for primaryschool students, encourages dynamic

lifestyle especially for children from 6-17 years old, distributes more than 20.000.000

seedings, re-farmings in 20.000 HA of coffee plantations, trains for about 200.000 farmers

and help them to improve their income 30% September 2014, Nestle Vietnam was

recognized as eco-friendly business and sustainable business(2017) arcoding to Vietnam

Chamber ofCommerce and Industry and Vietnam environment association

1.3 Products

Known for its iconic tagline “Have a break, have a KitKat’, Kit Kat highlights itself as a

good source of energy for consumers In addition, because Nestle is a leading corporation,

KitKat has the competitive advantage of offering desirable products at a competitive price

KitKat, a globally renowned chocolate brand, has made its mark in 16 countries, including

Vietnam, Mexico, Japan, Thailand, and more Particularly in Japan, KitKat boasts an

impressive array of over 300 different flavors, making it a beloved treat in the Land of the

Rising Sun Japan stands as the second-largest market for KitKat globally, following closely

behind the UK The term "Kitto Katsu" in Japanese translates to "will win," signifying good

luck, and this phrase has contributed to the popularity of KitKat, especially during the exam

season from January to March each year

Among the distinctive KitKat products are the KitKat chocolate bars weighing 2049/238¢,

offering a choice of sizes for consumers Packaged in vibrant red branding, the chocolate

exudes a delightful aroma, delivering an irresistibly sweet experience Another noteworthy

product is the KitKat Green Tea variant, available in a 35g pack This unique offering

features a crispy wafer coated with a layer of matcha, creating a harmonious blend of flavors

that tantalize the taste buds

The classic KitKat is not just a confection; it's an icon Renowned for its timeless appeal, the

classic Milk Chocolate KitKat has been an everlasting delight for consumers worldwide

Whether you opt for the iconic Two-Finger (17g) or Four-Finger (35g) bars, or prefer the

heartier KitKat Chunky (38g) with its thicker wafer, the indulgence is unparalleled The

velvety milk chocolate enveloping the light, toasty wafer creates a symphony of flavors that

has stood the test of time In the world of KitKat, the classic flavor remains an eternal

favorite, offering a moment of joy and a pause that lingers in memory For those seeking the

quintessential KitKat experience, the classic Milk Chocolate variant is an undisputed choice,

providing a timeless escape and a taste of nostalgia

1.4 Target market

In the Vietnamese market, KitKat strategically targets the youthful segment, individuals keen

on chocolate and those who appreciate the gifting aspect of confectionery This aligns

seamlessly with the brand's effective sales objectives KitKat Classic is omnipresent, making

appearances not only in supermarkets but also in convenience stores and even small retail

businesses

1.5 Target customer

KitKat Classic's target market spans both men and women of all age groups, projecting itself

as a "youthful" brand that resonates with chocolate enthusiasts The primary focus is on

consumers aged 18-34, a demographic often favored by advertisers for their shopping

inclination, experimental nature, and desire for quick, satisfying indulgences

The target audience for KitKat Classic comprises dynamic, creative, open-minded individuals

with a flair for style and personality, particularly those who appreciate novelty This

demographic is especially catered to, offering a product that complements their lifestyle

Moreover, KitKat Classic extends its appeal to travelers, positioning itself as a must-try when

stepping into Japan, emphasizing its status as a globally recognized and appreciated treat

Whether enjoyed as a personal indulgence or shared as a thoughtful gift, KitKat Classic

continues to capture the hearts of a diverse and discerning consumer base

ON KITKAT’S CONSUMER BEHAVIOR

2.1 Natural of situational factors:

Situational influence includes all those factors particular to a time and place that do not

follow from a knowledge of the stable attributes of the consumer and the stimulus and that

have an effect on current behavior A key marketing finding is that consumers often react and

behave very differently depending on the situation For example, an advertisement or in-store

display that might attract consumer attention but may not do so in a cluttered environment

KitKat itself is one of the famous cake brands not only in the domestic market but also a

reputable brand in the international market Furthermore, the market share of the KitKat

brand is quite high in the domestic bakery market KitKat's ability to supply cakes is very

large, providing enough for consumers’ needs From the day of product launch until now,

KitKat has always launched campaigns and strategies for new products with many flavors to

meet customer needs and tastes and guide customers to make purchasing decisions easier

2.2 Four types of situations and their relevance to marketing strategy

Consumer behavior occurs within four types of situations: the communications situation, the

purchase situation, the usage situation and the disposition situation

The Purchase Situation: A purchase is made can influence consumer behavior

A shortage of time, such as trying to make a purchase between classes, can affect the store

choice decision, the number of brands considered and the price the shopper 1s willing to pay

In addition, whether or not a consumer is in a “purchase mode” influences a whole host of

behaviors from advertising responses to shopping For example: mothers shopping with

children are more apt to be influenced by the product preferences of their children than when

shopping without them

=> Marketers must understand how purchases situations impact consumers to enhance the

purchase of their products

We can often easily find KitKat products in central locations in shopping centers,

supermarkets, convenience stores or even small businesses in big cities in Vietnam These are

places where KitKat's target customer group often visits every day, so they are easily

attracted to KitKat products with eye-catching packaging and bring happiness and sweetness

When customers enter the supermarket, they often think: "I just need to buy personal items",

but when entering the supermarket, they will be attracted by packaging, promotions or

invitations to try and many other activities taking place in the supermarket Therefore, KitKat

has many more opportunities for itself when they are a famous brand with a foothold in the

market, a loyal customer base, At KitKat booths, there are always promotions on special

occasions or seasons of the year, and at the same time, they equip more vivid sound

equipment, organize giveaways and marketing staff with great advice A_ friendly,

approachable greeting makes customers sympathetic and willing to buy KitKat products

through those impacts

KitKat booths impress their customers through product testing and participating in minigame

activities to receive gifts At the same time, KitKat also uses the words "New product", "Buy

1 get 1 free", "Buy 3 get a pillow free" to attract customers’ attention and create a WOM

effect Besides, they use Mascot in community events or media campaigns, making

customers' hearts quickly attracted to adorable, witty mascots These mascots provide a

positive and dynamic experience for customers, helping to increase engagement, making

them enticed to follow KitKat campaigns

Communication situation: Consumers receive information that influences their behavior

If a person is alone or in a group, in a good mood or bad, in a hurry or not influences the

degree to which one sees and listens to marketing communications Media contexts are

usually used to advertise their product to enhance the effectiveness

A marketer -> effective message -> consumers who are interested in the product and are in a

receptive communications situation

However, finding buyers with high- interest potential is a difficult challenge When most

customers go to a supermarket or convenience store to buy KitKat, they often go with their

parents, siblings or friends to give appropriate suggestions and their comments on the product

are key Meanwhile, there is no employee who regularly approaches and introduces products

to customers The supplier has created a comfortable shopping space for customers with their

relatives and friends In addition, KitKat's target customers are dynamic young people who

like creativity, style, personality, and novelty, so they are willing to wait in line to find their

favorite products and pay for that product without any complaints

KitKat has successfully built its brand image thanks to Out-of-home advertising (OOH) in

prime locations of major cities, where people always encounter images of KitKat when they

are on the road

KitKat's clever OOH ad helps you better understand Zoom work culture Having an online

meeting at three o'clock in the afternoon and feeling hungry, remember Kit Kat!

„PM ef’

Zoom call

In addition, KitKat launches limited-edition products during the season with limited quantities and previously introduced new products They will create a gap before the product launch to inform current and potential customers about Kit Kat's latest information From there, customers will comment, interact and share their thoughts about this campaign, making

it easier for them to make purchases

Beside that, KitKat also cooperates with with influencers, KOLs, KOCs and using social networks to communicate meaningful messages and campaigns that KitKat wants to convey

to consumers

Usage situation: Marketers need to understand the usage situations for which their products may become appropriate

Marketers can communicate how their products create consumer satisfactionin each relevant usage situation

For example, according to some recent studies, Kitkat candy contains the ingredient phenylethylamine, which is a substance that helps the brain secrete endorphins, so you will feel more relaxed and love life after eating Kitkat candy In addition, the product also helps increase blood circulation to the brain, develop cognitive abilities and reduce the risk of stroke in the elderly The Japanese market has always been known for its strict market rules and fierce brand competition How to understand the subtle cultural details and adjust to the preferences of local consumers to successfully localize the brand and open up new sales channels has made many outsiders who are interested in entering Japan trouble their brains If you want to take a foreign brand into Japan as a model, you must not miss the Japanese chocolate "Nestlé Kit Kat" that has been successfully localized for many years

KitKat is popular with many people because it is a delicious candy with many unique flavors that is not picky about eating Kit Kat is a sponge cake covered with chocolate on the outside and is made in the form of small bars that can be broken apart The original taste of Kitkat

chocolate is not bitter, not too sweet, but still retains the aroma of chocolate

Kitkat can be easily broken in half based on its shape, so people often give each other split Kitkat bars to show affection In addition, candy is also a cute and suitable gift for many different occasions, it can be given to friends, colleagues, or to superior family on intimate occasions such as holidays, Tet, or parents

Maa thi hay téng minh

"bua thi ce Kit Kat" - Kitte Katsu

dé thi déu déu do

An interesting thing is because Kitkat candy in Japanese is pronounced Kitto Katto This pronunciation is similar to the phrase Kitto Katsu, which means "You will surely win" That's why when it was first released, Kitkat made Japanese people crazy about it They believe that this dish will bring luck That's why people often give Kitkats to each other before exams, and candidates also eat a lot of Kitkats before their exams

Disposal situation: the situation in which consumers dispose of products or product packages after or before product use (easier to be recycled) -> Impact consumers behave (more preferable)

Often disposition of an existing product must occur before/simultaneously with the acquisition of the new product

Understand disposition situations -> More effective and ethical products and marketing programs

Realizing that Kit Kat consumption is extremely "huge" in Japan (about 4 million bars a day!), Nestlé also understands that, on average, 4 million plastic wrappers are discharged into the environment every day Catching the zero waste trend very quickly, the company decided

to develop environmentally friendly wrapping paper This type of paper is recyclable, not plastic, but its toughness and durability are not inferior More unique, it is also tough and easy to shape to the point of being able to fold origami

With an advertisement for Kit Kat candy accompanied by a paper crane folded from the candy wrapper, Nestlé Japan has clearly affirmed the message of environmental protection, as well as honoring Japanese cultural values in its products Immediately, this idea was welcomed even more than the unique and strange candy flavors of previous years

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The image of a paper crane will be printed on the candy wrapper with instructions for folding the crane, as a way to raise awareness of saving with the message: Nothing is thrown away, including the wrapping paper

This is not the first time Kit-Kat has participated in the zero waste movement Previously, the company also successfully created candy that said no to white sugar By using organic sugar from fruits, without chemical treatment, helping to significantly reduce fuel load during the production process, the Japanese once again proved: Their technology and consciousness are

second, no one dares to claim first!

2.3 Five characteristics of situations and their influence on consumption

The five key dimensions or characteristics are physical surroundings, social surroundings, temporal perspectives, task definition, and antecedent states

Physical surroundings: include decor, sounds, aromas, lighting and many other materials

surrounding the stimulus object

External retail factors such as: architecture, arrangement, and assortment of retailers are an

important influence on consumer shopping experiences

In addition, store interiors are often designed to create specific feelings in shoppers that can have an important cueing or reinforcing effect on purchase All physical aspects of the store,

including lighting, layout, presentation of merchandise, fixtures, floor coverings, colors,

sounds, odors, and dress and behavior of sales personnel, combine to produce these feelings,

which in turninfluence purchase tendencies Each attempt to create an appropriate atmosphere

for its target audience

KitKat Chocolatory, which just opened in October in Osaka, has delighted young people here

by serving Kit Kat bars beautifully decorated like premium chocolate Customers will be able

to freely create their own meals, from choosing their favorite flavors to combining

accompanying toppings

First pick a

Kit Kat flavor You can combine 3 Then pick your

flavors into 1 bar toppings!

Initially, you will choose the basic flavor for the chocolate through the touch screen,

including familiar flavors such as matcha, strawberry, vanilla, milk Then the staff covers

the chocolate with a layer of sauce and skillfully decorates the chocolate type topping on top

With 9 options that change daily such as cereal, marshmallow, fruit, nuts you can combine

according to your preference

Not only does it make an impression with its new appearance, but the dish also brings a

delicious and different flavor Many diners have said that the combination of chocolate and

toppings has enriched the flavor A little bit of bitterness melts into the crunchy sweetness of

cereal or the nuttiness of almonds, fresh fruit making people feel completely refreshed

Social Surroundings: are the other individuals present in the particular situation People’s

actions are frequently influenced by those around them

Social influence is a significant force acting on our behavior because individualstend to

comply with group expectations, particularly when the behavior is visible Thus, shopping, a

highly visible activity, and the use of many publicly consumed brands are subject to social

influences Some examples of social surroundings:

- Types of customers in the store

- Queues and crowding

- Whether the consumer is likely to be known by others or recognized

- Whether there are celebrities shopping at the store

- Whether the product will be consumed privately or in the presence of others