The Marketing mix of Kitkat analyses the 4Ps of Kitkat, which includes the Product, Price, Place, and Promotion of Kitkat. Kitkat is a biscuit bar of wafer that is covered in chocolate. Rowntree of England created it in 1935, and Nestle started its production after acquiring the company in 1988. Kitkat has a universal appeal to every generation and age group. Some of its competitors are as follows-
- Cadbury
- Mars
About Kitkat
- Type: Chocolate-covered wafer bar confection
- Industry: Confectionery
- Founded: 1935
- Founders: Rowntree’s of York, United Kingdom
- Headquarters: Vevey, Switzerland
- Area served: Worldwide
- Current CEO: Mark Schneider
- Number of employees: Over 300,000
- Major products: KitKat
Table of Contents
Table of Contents
Kitkat Product Strategy
The traditional KitKat chocolate bar has four fingers and measures 9cm by 1cm. Later, a bar of Kit Kat chocolate with two fingers was also introduced, and it has been the company’s bestselling product until today. The KitKat bars have a different number of fingers by the market.
It starts from the size of half a finger available in Japan to a bar of three fingers in Arabia, to the bars of twelve fingers available in France and Australia. Nestle KitKat bars are sold worldwide in various forms: multi-packs, boxes, bags, and even individually. “Nestle Kitkat Chunky” was launched in 1999, and “Nestle Kitkat Chunky Peanut Butter” in 2006 in variants such as lime flavors such as milk and orange.
In countries like America, the UK, France, and Ireland, the company produces “Nestle Kitkat ice cream.” In countries with other brands like Malaysia and Australia, it produces “Nestle Kitkat Drumsticks.” The four fingersNestle Kitkat has appeared in mint and orange flavors and later in variants like blood orange, Yogurt Lemon, and lime.
One of its most favorable variants is “Caramac, ” introduced in 2005. “KitKat Green Tea Chocolate” is another successful product of the company. At least forty flavors of Nestle KitKat are available in Japan, like Cucumber, wasabi, and lemon vinegar.
The product mix of Kitkat in 2023 is as follows (Source)
- KitKat Classic: The original milk chocolate-covered wafer biscuit.
- KitKat Dark Chocolate: A variation for those who prefer the rich taste of dark chocolate.
- KitKat White Chocolate: A white chocolate-coated version of the classic.
- KitKat Chunky: A more extensive, chunkier version of the classic KitKat bar.
- KitKat Ruby: Made with Ruby chocolate, offering a unique berry-flavored taste.
- KitKat Green Tea Matcha: Popular in Japan, this version is made with green tea matcha.
- KitKat Gold: A caramelized white chocolate version.
- KitKat Miniatures: Small, bite-sized versions of the classic KitKat.
- Limited Edition Flavors: KitKat is known for releasing various limited edition flavors, especially in Japan, where flavors like sake, wasabi, and sweet potato are available.
- KitKat Ice Cream and Other Desserts: KitKat-branded ice creams and other dessert items.
- KitKat Bites: Small, poppable pieces of KitKat.
- KitKat 2 Finger Bars: Smaller, two-finger versions of the classic bar, often sold in multi-packs.
Kitkat Place Strategy
Nestle Kitkat is produced in at least 21 countries, such as Brazil, Canada, the UK, Germany, and Malaysia, and is currently the leading confectionary brand globally. It is readily available in nearly one hundred countries of the world. In 2010, Nestle opened a new manufacturing line in York that cost 5 million pounds. This plant is supposed to produce a billion units of traditional KitKat bars annually.
The global marketing strategy and team of Nestle Kitkat have developed an intricate network of distributive distribution channels responsible for ensuring that Nestle Kitkat is available to every interested consumer at whatever place or whenever he desires.
Numerous market research studies show that 60% of purchases are impulsive buys without rhyme or reason. Sales of any confectionary product depend on easy availability; therefore, the company tries to supply as many variants of its products to the consumers as possible in a maximum number of outlets through its wholesalers and retail channels.
The place strategy of Kitkat is as follows:
- Global Distribution: KitKat is widely available in numerous countries worldwide, utilizing a vast distribution network that includes supermarkets, convenience stores, vending machines, and e-commerce platforms.
- Localized Manufacturing: Nestlé, the company behind KitKat, often establishes local manufacturing plants in key markets to ensure fresh product availability and to reduce shipping costs and times.
- Strategic Retail Partnerships: KitKat collaborates with major retailers and local stores to ensure prominent shelf placement and visibility, enhancing consumer accessibility.
- Limited Edition and Regional Variants: In specific markets, especially in Japan, KitKat introduces region-specific flavors and limited edition variants, which are often sold in tourist spots and regional stores to attract both locals and tourists.
- Online Sales and Marketing: Embracing the digital age, KitKat has a strong online presence, selling through its websites and third-party e-commerce platforms, making it accessible to a wider, tech-savvy audience.
Kitkat Pricing Strategy
Nestle Kitkat has a powerful image of its brand name, and in this competitive market, this strong brand image allows the company some flexibility in executing its pricing policy. However, to increase the volume and maintain its loyal customers, Nestle Kitkat has resolved to maintain and promote a low and fair pricing policy.
The starting prices of the KitKat product remain unchanged at INR5, along with its quality, even if the quantity has been reduced. The customers then do not feel very unhappy with the company as they also realize the effects of the rising economy. The stability in the brand image pricing policy has been a significant factor in the maintenance of sales of this brand. The company’s policy has proved to be a boon for them.
KitKat’s pricing and marketing strategy is a well-crafted blend of market-oriented promotional strategies and value-based approaches designed to maximize market penetration and consumer satisfaction. Here’s a breakdown:
- Competitive Pricing: KitKat is priced competitively within the chocolate and confectionery market. This ensures the brand remains affordable and attractive to its broad consumer base, from everyday snackers to chocolate lovers.
- Psychological Pricing: KitKat often employs psychological pricing strategies, such as pricing products just below whole numbers (e.g., $0.99 instead of $1.00). This approach makes the price appear significantly lower and more attractive to consumers.
- Product Line Pricing: The brand strategically prices its different product lines, such as the classic KitKat Chunky and premium flavors like Matcha, to cater to different segments. This pricing variation helps attract diverse consumer groups, from those seeking affordable treats to those willing to pay more for unique flavors.
- Promotional Pricing: KitKat often uses promotional pricing strategies, including discounts, multi-buy offers, and seasonal sales, to boost short-term sales volume and attract price-sensitive customers.
- Regional Pricing Variability: Understanding the economic variances across different regions, KitKat adjusts its prices to suit local market conditions and purchasing power. This approach ensures market relevance and affordability across diverse global markets.
Kitkat Promotion Strategy
The packaging of Nestle Kitkat is an exceptional edition and distinctive and is made in white and red wrappers. The first advertisement for Nestle Kitkat was shown on television in 1957, and the first color advertisement was seen in 1967. Some of the most exclusive television advertisements of Nestle KitKat include “Dancing Panda” in 1987 and “Have a Break, Have a KitKat” ads in the early 90s.
KitKat’s promotion strategy encompasses innovative advertising, strategic partnerships, and active social media engagement. The brand leverages catchy and memorable advertising campaigns, often using its iconic slogan “Have a Break, Have a KitKat,” collaborates with various entities for co-branded initiatives, and maintains a strong presence in social media advertising on platforms like Instagram and Twitter to engage with a younger, digitally-savvy audience. This multifaceted marketing approach ensures widespread brand recognition and appeal across diverse consumer groups.
Nowadays, a tagline has become an essential promotional activity for brands. Nestle Kitkat has relied heavily on its promotions in various media channels, such as newspapers, magazines, billboards, posters, and televisions, and primarily online through the internet and multiple websites that ask visitors to take a break and have a Kitkat. The company has offered free bars of Nestle Kitkat with family packs as a promotional strategy.
Some Recent Video ads and Print ads of Kitkat are:
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Hello, not sure if you’re the right person to address but I just have to say that the last television commercial for KitKat took the cake, so to speak. As if previous commercials weren’t annoying enough, we will never buy a KitKat again after this last one. It is impossible to understand the words, which is probably a good thing for us, but not for sales. WHY would a sales team do that ?? It makes us literally want to turn off the television ! Just thought you should know. I’m sure we’re not the only ones who feel this way.
No need to reply.
Thanks for your time.
Im sharing an vision i had for a kitkat commercial. This is just how my mind works sometimes, please forgive me. Lol. The commercial starts with all races and ages crunching on a kitkat. The song “Ebony and Ivory” by Lionel Richie playing…just when the words, “Oh lord why can’t we ?”play, Camera goes to piano keyboard where the keys are chocolate and white chocolate kitkat bars and the piano plays, “Break me off a piece of that kitkat bar.”? Ran it by a couple people and they thought it share worthy. What do you think?