Final Exam NESTLE Kit Kat (docx) - CliffsNotes (2024)

In Japan, the targeting of Kit Kat is more based on both the segments of the 12 to 17 years old and the 18 to 24 years old. Those young people are craving for new tendencies. As consuming Japanese products is highly important for most of Japanese people, they also target that part of the population by giving the brand a strong Japanese touch. 2.3 Positioning The positioning of a brand is its place on the market but also its place in the costumer's minds. Making choices about the four aspects of the marketing mix is the final stage of the marketing process before taking action. «Broad in appeal, young in feel, big in stature» this quote encompasses the brand positioning of Kit Kat. 2.3.1 Product: France - Crisp wafer covered with milk chocolate spread in several fingers (2, 4 or 6) (Basic Kit Kat, some original Kit Kat flavors available for limited periods (for instance, Kit Kat Mint), Mini, ball and chunky versions, packed in aluminum). Japan - Crisp wafer covered with milk chocolate spread in several fingers (2, 4 or 6), about a hundred different flavors, (over 30 national flavors, over 70 regional flavors (please refer to figure 3), and over 10 different shapes and sizes, packed in boxes). 2.3.2 Prices: France - $1.58, maintaining a strong brand image gives Kit Kat a degree of flexibility, however, the prices remain stable. Japan - around $2.25 for the basic Kit Kat, making the product become a premium good based on exclusivity and rarity enables Nestle to practice a high skimming strategy. 2.3.3 Place: France - Strong distribution channel that enable consumers to buy Kit Kat wherever and whenever they need (supermarkets, corner shops, newsagents, cafes, movies concession counter). Japan - consumers buy Kit Kat at post offices, supermarkets, Kit Kat stores (Kit Kat chocolatery opened in 2014 that will allow to showcase new premium products), Japanese Kit Kat are bought by people all around the world via internet. 2.3.4 Promotion: France - International strap line "have a break, have a Kit Kat," Social networks, commercials on television and internet, displays, in-store advertising and partnership with Android (global). Japan - International strap line "have a break, have a Kit Kat," social networks, commercials on television and internet, displays, in-store advertising and partnership with Android (global). 3. Customer Relationship Activities Based on their place on the market and in the aim to reach their target, marketers have to invest in communication or content marketing campaigns either for acquisition or for retention activities. According to the following figures in 2014, marketers prioritized acquisition activities over retention activities (Hetch, 2014). It's also a must to determine the return on investment in order to justify the spendings. Data on Marketing Investment during 2013 and 2014 from Ratcliff, 2014: More focused on acquisition 44% (2013) 40% (2014), More focused on retention 16% (2013) 15% (2014), and Equal focus on acquisition and retention 40% (2013) 45% (2014). 3.1 Acquisition Activities To acquire new customers in Japan, Kit Kat didn't fight for more space on the shelves but decided to create a new way to rediscover the product. In Japan, by some happy coincidence, the marketing team discovered that the Japanese people had difficulties pronouncing Kit Kat, and because of that the brand became Kitto Katsu, which means "surely win." Kit Kat made a partnership with the largest institution in Japan, the Japan Post and created the Kit Kat mail, to enable families to send Kit Kat to wish luck to students on their exams. Over that period, more than 10 million "wish you luck" boxes of Kit Kat have been sent. After that successful marketing operation, Nestle decided to keep playing on the fact the Japanese people identify Kit Kat as a cultural good more than a simple candy bar. Since that, they base their marketing and communication strategies on that which is why it became successful to acquire new Japanese Kit Kat customer all around the world.