Marketing report a marketing campaign for kitkat of nestle

By supporting events that align with its values and goals, Nestlé can enhance its brand image, promote its products, and build trust with consumers.. The KitKat standard chocolate bar ed

HO CHI MINH CITY UNIVERSITY

OF FOREIGN LANGUAGES - INFORMATION TECHNOLOGY

FACULTY OF BUSINESS ADMINISTRATION

MARKETING REPORT Major: Marketing Amarketing campaign for KitKat of Nestle

Student’s name: Nguyen Thi Minh Thiy — 21Dh485486

Hoang Gia My - 21DH483822 Class: Marketing Management _ Thursday 10-12 Course: K27

HCMC, Jan 2024

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TABLE OF CONTENT

Introduction of Nes(e€: cà HH HH HH HH THÍ Tu HT HT TT TH 4 1.1 Nestle company OV€TVICW Lo HH HH TH TH TT TH TH HH Hà nh 4 1.2 History of formation and deVeÏ0opI€TIỂ: G5 <6 s1 HH HH Hư 4

1.4 Nestle's marketing aC(ÏVÏ(i@S: Ă kh HH HH HH TH TH HH TH HT 5

2.1 Internal analysis of KiVKAK: - 5G vn HH TT HH ng HH TH ha 5 2.1.1 S(re€nnigt(]h «HH HH HT HT HH TH HH HT 0 5

2.2 Competitors of KitKatin the Vietnamese market: M&Ms Ă Ăn, 7

3.1.2 Targeting HH TH HH THẾ HH HT HH TT Tà nà nàng 8 3.2 Position mAppINE: SH TH HH Hà HT HH TH HH Tà n4 9

5.1 Campaign’s name: “Nghỉ xíu cho chút yêu Ì” - «kh HH HH HH ri 10

5.4.3, Message: HH HH Hà HH KH Tà Tà Hà TH nọ Tà HH Hà Tàn hệ 12 5.4.4 Marketing (ACÍCS: - Ác HH "HH TH TH HT HH Tà HH TT ve 12

8 Reference:

References

1 Introduction of Nestle:

1.1 Nestle company overview:

Nestlé is a multinational food and beverage company headquartered in Vevey, Switzerland It is one of the largest food companies in the world and operates in various segments of the food and beverage industry Nestlé operates in 188 countries with 344 factories in 77 countries and approximately 275,000 employees worldwide in 2022 (Nestle, Nestlé history timeline, 2022)

1.2 History of formation and development:

Founded in 1866 by Pharmacist Henri Nestlé, when he developed a groundbreaking infant food, Farine Lactée Henrie Nestlé powdered milk for infants who could not be breastfed The value of the new product was quickly recognized when his new formula saved the baby's life, and soon, Nestlé's Farine Lactée Henri product was widely available

in Europe

In 1905, Nestlé merged with the Anglo-Swiss Condensed Milk Company, expanding its product offerings beyond infant formula The company continued to grow through acquisitions and diversification In the early 20th century, Nestlé ventured into chocolate production and introduced its iconic brand, Nestlé Milk Chocolate

Throughout the 20th century, Nestlé expanded globally through strategic acquisitions, partnerships, and product innovations The company broadened its product portfolio to include various food and beverage categories, such as coffee, dairy products, confectionery, pet food, and bottled water

In the 1980s and 1990s, Nestlé went through a period of significant expansion and diversification It acquired several well-known brands, including Carnation, Perrier, Rowntree's, and Gerber These acquisitions helped Nestlé strengthen its market position and enter new markets worldwide

1.3 Nestle’s product line:

¢ Plant-based milk and beverages: flavored milk, milk-based drinks, plant-based milk products (almond milk, oat milk, and soy milk), and yogurt drinks

¢ Coffee and Beverages: Nestlé has a significant presence in the coffee industry with brands such as Nescafé and Nespresso They offer a variety of coffee products, including instant coffee, coffee capsules, ground coffee, and coffee makers Nestlé also produces other beverages such as tea, hot chocolate, and bottled water

¢ Nutrition for infants: It includes infant formula, formula for older children, growth milk, and cereal for young children Gerber, a famous brand of Nestlé, offers a wide range of baby food products for different stages of child development

¢ Confectionery and snacks: Nestlé is famous for its confectionery products, including chocolate bars, candies, and chewing gum Popular brands in this category include KitKat, Crunch, Smarties, Aero, Butterfinger, and Toll House Nestlé also produces a variety of salty snacks such as chips and pretzels

¢ Cooking and cooking utensils: including seasoning products, stocks, sauces, recipe mixes, and pre-cooked meal solutions

© Pet care: Nestlé owns pet food brands such as Purina, Felix, Friskies, ONE, Pro Plan and Gourmet They offer a wide selection of pet food for cats, dogs, and other small animals

¢ Breakfast cereals: Nestlé produces a variety of breakfast cereals, including popular brands such as Cheerios, Nesquik Cereal, Fitness, Chocapic, and Shredded Wheat These grains cater to different tastes and dietary preferences

¢ Health Sciences: focuses on personal nutrition products and medical nutrition They provide nutritional solutions for people with specific dietary needs, including those with medical conditions or undergoing medical treatment

¢ Ice cream and frozen desserts: with brands like Haagen-Dazs, Dreyer's/Edy's, and Nestlé Ice Cream These products include ice cream tubs, ice cream bars, cones, and frozen novelties (Nestle, Product Categories, 2022)

1.4 Nestle's marketing activities:

Nestle has used and combined many different marketing activities to bring products to consumers and connect with them (Archana Karthikeyan, Apoorva Bayj, 2023) Some marketing activities of this business such as:

Sampling Programs: Nestle has used sampling programs to introduce its products to consumers The company offers free samples of its products to consumers, which helps to increase product awareness and generate word-of- mouth publicity

Event Sponsorship: This enabled Nestlé to connect with its target audience in a meaningful way, leveraging the event's platform to create positive brand associations and demonstrate its commitment to promoting healthy lifestyles By supporting events that align with its values and goals, Nestlé can enhance its brand image, promote its products, and build trust with consumers For example, Nestle has a longstanding partnership with the International Olympic Committee and is a major sponsor of the Olympic Games, Nestlé sponsors professional cooking competitions to encourage creativity and talent in the culinary field (Malaysia, 2021)

Social Media Marketing: Nestlé creates and shares a wide range of content on social media, including product advertisements, recipes, cooking tutorials, lifestyle tips, and relevant news The content is tailored to resonate with the interests and preferences of the target audience while aligning with Nestlé's brand values and messaging

2 3Cs Analysis:

2.1 Internal analysis of KitKat:

2.1.1 Strength

¢ Unique offering:

KitKat chocolate bar is way far different from the other chocolate bars in the market It is a chocolate-covered wafer while the other bar is fully chocolate, just with this addition, KitKat has distinguished itself from its competitors in the same field

¢ Outstanding packaging:

The KitKat standard chocolate bar edition is packed in iconic red packaging which has become a strong identity of the brand, with the image of a chocolate bar breaking off into two pieces to show exactly what the chocolate bar inside looks like

¢ Creative slogan/tagline:

“Have a break, Have a KitKat” is one of the most important communication tools for the brand used since 1957 and it is still widely recognized today The slogan is inspired by the idea that mental and physical well-being can be eased through the simple act of taking a break This can be interpreted that when consumers have a small rest, the KitKat bar will be the first choice as a way to unwind and recharge The tagline has received positive attention it has been used in various marketing campaigns over the years (Baumgartner, 2023)

® Extraordinary chocolate flavors

Besides, Original is the best-seller flavor of Kit Kat The brand also takes out new and strange flavors for chocolate:

- Kit Kat Raspberry Créme

- Kit Kat Birthday Cake

- Kit Kat Duos Mint + Dark Chocolate

- Kit Kat Lemon Crisp

- Kit Kat Witch's Brew

All these new flavors are the unique selling point of KitKat It continuously researches and develops to bring out the products that can make the customers excited to try (Palan|, 2023)

2.1.2 Weakness:

¢ Counterfeit:

KitKat is still facing imitation The more cutting-edge the technology is, the more duplicates of KitKat are available on the market Moreover, the idea of combining a crispy wafer and chocolate cover concept is effortless for cheaters to copy If this statement lasts longer, the brand image can be damaged significantly which results in frigidity from the consumers

¢ Limited Health Focus:

Nowadays, consumers are becoming smarter and more selective about what they consume daily, so the demand for healthy snacks is predicted to be higher which leads KitKat to face challenges related to health concerns Specifically, one pack of 100g of KitKat chocolate contains 10.22 of sugar and 502 Kcal which is an unhealthy snack (Nestle, Nutritional Information & Ingredients, 2022)

2.1.3 Competitive advantages:

¢ The support from the parent company — Nestle:

KitKat is a brand from Nestle, so it can take full advantage of the availability

in Nestle’s distribution system, investment capital, and raw ingredients sources KitKat is the first global chocolate brand to use 100% sustainably sourced cocoa through the Nestlé Cocoa Plan and Rainforest Alliance certification (Nestle, The world's favorite break, 2022)

2.2

Iconic Brand and Strong Brand Equity:

Owning the iconic brand with a rich history and a 67-year memorable tagline -"Have a Break, Have a KitKat”, Kit Kat now is a global brand name, Nestle reports that there are up to 650 bars of Kit Kat are consumed every second globally (Lee, 2022) KitKat has high brand recall and recognition in comparison with its competitors In a survey from “Break with KitKat’, there was 40% of the respondents said that Kit Kat was the chocolate brand that had the top of the mind recognition for them ([Win!], Kit Kat Survey Findings, 2021)

Competitors of KitKat in the Vietnamese market: M&Ms

In the low-quality and low-price segmentation, M&Ms is KitKat’s direct competitor

in the chocolate snack category

Product Type:

M&M's are colorful, bite-sized chocolates with a candy coating with milk chocolate, peanut, and peanut butter, while KitKat is a chocolate-covered wafer bar So, in the target customer of children, M&Ms seems to have a dominant advantage However, in the adult target group, KitKkat may outweigh M&M due to its distinctive layers of crispy wafers coated in milk chocolate

Branding and Positioning:

Both brands bring a bright image with an optimistic theme M&M's are known for their colorful and playful image emphasizing fun and sharing whereas KitKat has a more subdued and iconic red image The "Have a Break, Have a KitKat" slogan shows the brand's association with taking a break and enjoying

a moment of relaxation

Market Presence:

In this sector, M&M’s presence on the market may surpass that of KitKat It has built a strong global presence through numerous marketing campaigns, including the iconic M&M's characters In contrast, thanks to the historic tagline — “Have a break, Have a KitKat’, the brand is a globally recognized brand with a strong market presence nowadays

3 Market Targeting, Segmenting and Positioning:

Focused Segmentation and Targeting:

3.1.1 Segmentation:

Demographic Segmentation:

Age: They focus on young customers (16 -30 years old) Teenage customer groups want to enjoy delicious chocolate bars There is also a customer group of children over 3 years old

Gender: KitKat's customer group is both male and female Their products are very popular and suitable for any gender That's why their customer group is not limited by gender

3.1

- Income: Kitkat's customer base is not limited by income KitKat products have average prices, so customers can easily choose because of the convenience that KitKat brings (BusinessEssay, 2022)

© Geographics Segmentation:

- Country segmentation: KitKat is currently available in many countries around the world In each country, this brand will have a separate marketing strategy and distribution location to suit local consumer needs and culture

- Urban and Rural Segmentation: KitKat has a presence both in urban and rural areas In urban areas, KitKat may focus on stores, convenience stores, supermarkets, and other retail locations located in city centers or shopping areas

In rural areas, KitKat may have a presence through stores and retail outlets in residential areas and small towns

- Travel Area Segmentation: KitKat can also focus on popular travel areas and travel destinations Such as KitKat stores at airports, important tourist areas, or popular tourist destinations

e Psychographic Segmentation

- People who want to relax and relieve stress: KitKat can segment the market by targeting consumers looking for candy to relax and relieve stress These people may appreciate the power KitKat offers because it provides a quick moment in which they can relieve stress, making them feel more relaxed and at ease

- Young and active consumers: KitKat can target a group of customers who are young, active, and love physical activity With its youthful image and compact design, KitKat can be considered a reasonable choice for those who want to quickly energize and feel refreshed

- Chocolate lovers: the taste that KitKat brings is special, with a layer of chocolate covering the sponge cake Brings the sweet taste of chocolate but does not bring the feeling of boredom (Amplyfyxl)

¢ Behavioral Segmentation

- Frequent consumption: KitKat segments the market by targeting consumers who frequently buy and use the product These people may have a habit of buying KitKat regularly, they love and appreciate the taste and experience of the product

- Family consumption: KitKat is aimed at families and consumers who want to buy candy for the whole family Bulk product packages or gift packages can be an attractive option for consumers in the family

- On-the-go consumption: With its compact and easy-to-carry design, KitKat can segment the market by targeting consumers who like to buy candy to enjoy on the

go or during outdoor activities God To provide instant energy or as a hunger- fighting snack

- Consumption as gifts: customer groups looking for a popular and interesting gift option Special editions and unique packaging are attractive factors for buyers as gifts (Gupta, 2022)

3.1.2 Targeting

- Main target audience: KitKat targets loyal customer groups and frequent consumers who love the KitKat taste They are people who have the habit of buying candy to enjoy in moments of relaxation or stress relief

- Young customer group: KitKat can target young customer groups, including young people, students, and young consumers aged 18-35 They can appreciate KitKat's youthful design, rich flavor, and convenient portability

- On-the-go consumers: With its compact and easy-to-carry design, KitKat targets on-the-go consumers, including commuters, students, and travelers KitKat is a convenient and delicious option for those who are on a journey or need a snack between activities to quickly regain energy

- Customer group that loves new experiences: KitKat targets consumers who love new and unique experiences KitKat has launched unique flavors such as KitKat Wasabi, KitKat apple cider vinegar, and KitKat grilled corn flavor This group of customers seeks variety and enjoys trying new products

3.2 Position mapping:

Affordable product price: KitKat positions itself as a mid-priced brand, offering a chocolate treat at an accessible price Therefore, this is an advantage that makes KitKat more accessible to customers than other competitors

* Crunchy vs Creamy: KitKat is a brand that offers a unique crunchy texture compared to other chocolate and wafer brands This positioning emphasizes the satisfaction and enjoyment of the crispy sponge cake inside the chocolate coating This difference helps kitKat leave an impression on customers Diverse and innovative: the brand offers a variety of flavors and limited edition options, catering to consumers looking for new and unique experiences This shows KitKat's ability to constantly innovate and introduce interesting flavor combinations

* Unique design and unique style: KitKat has a bar design that can be easily separated into parts, creating an interesting experience when enjoying This design has also created a brand image for Kitkat (marketing91, 2023), ([Win!], Brand Positioning, 2022)

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4, Current Marketing Campaign Analysis of KitKat:

¢ Product: KitkKat

Message: “Cau Thanh Thoi La Duge”

In the scenario of Tet 2024 is coming, Nestle company has been conducting a marketing campaign named “Tét can du 1a duoc”, which means that we should be content with what we are having right now and as a brand of Nestle, KitKat also has the same motif message for its Tet marketing campaign — “ Thanh thoi la duoc” which has the same spirit of KitKat’s slogan “ Have a break, Have a KitKat”, means that these are the last days of the old year, we should take our life

a bit easier (Nestle, “CAU DU LA DUOC”, 2024)

Campaign objectives:

In the “Thanh thoi la dugc” campaign, KitKat mostly used social media to promote it So, the main objective of the campaign is to increase brand awareness and raise sales and profits Through hosting challenges and mini games with rewards for audiences on KitKat’s official Facebook page, the brand aims to expand its digital presence and increase original traffic

Target audience:

The brand is youthful in nature, and KitKat’s target customer groups are men and women of all ages The campaign focuses mainly on the young generation (GenZ) and those who love chocolate and are willing to indulge themselves with chocolaty snacks in the last days of the year preparing for Tet

— tactics:

In the social media era, content marketing in combination with celebrity marketing 1s one of the most popular and effective ways

to bring a positive influence on audiences to raise — brand awareness In this campaign for Tet, KitKat has invested in conducting a music video “TET XA HOI, LAM Gi CANGGG” having the presence of two famous singers among the young generation — Truc Nhan and Phao

Moreover, KitKat takes advantage of social media (Facebook and TikTok) to gamify challenges and mini games to raise the virality and engagement of the campaign to others with hashtags #KitKat #CauThanhThoiLaDuoc,

#CanDuLaDuoc, and #GiaDinhNESTLE

Results:

The “TET XA HOI, LAM GI CANGGG” MV featured two famous singers (Truc Nhan and Phao) and has nearly 5 million views on YouTube with more than 4 thousand likes and exceeding 323 positive comments from audiences saying that they like KitKat and the creativity in the MV

5 Selected Marketing Campaign:

5.1

5.2

Campaign’s name: “Nghi xiu cho chut yéu !”

Product design:

The special KitKat version for Valentine will have 2 flavors in one pack: 2

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