Case Study Analysis Of Kitkat in Japan
What Is Nestle Japan’s Biggest Challenge Regarding Kitkat in Japan?
The KitKat brand of Nestle Company in Japan faces the biggest challenge in the health and safety concerns. In this case, the KitKat is one of the most consumed in Japan, especially by children. However, the FDA claims that the KitKat chocolate bars harbor false packaging claims that they are ‘heart healthy’ as well as ‘low cholesterol content.’ An examination of the chocolate bars indicates that the cholesterol content is high and thus does not anchor well with the healthy hearts, especially for the children that are the primary consumers. Nestle Company finds itself in a difficult situation restoring its reputation because of using false claims in its marketing of the KitKat brand.
What Are Some of The Key Strengths of Kit Kat In Japan? Explain How And Why These Are Important For Creating a Sustainable Brand.
The fact that Nestle Company has a huge experience in the manufacture of the products considered to be highly qualified. The experience is a positioning strategy that the KitKat brand has exploited in Japan to become the most preferred chocolate products within a short period. In this way, the competitive advantage that the KitKat has in the Japan market proves to be an indisputable strength of growth. The other strength of KitKat brand is the fact that the product has a high market share and this proves to be the pillar to its successful branding (Grönroos and Gummerus 2014, p.206). The KitKat brand is one if the product lines that Nestle Company has managed to renovate and to take over as the leader in sales within the Japanese market. Apparently, using the branding ability and the recognition of the local preferences of the customers are the strengths that Nestle Japan can employ in leveraging its growth plans.
The fact that the KitKat brand has been accepted successfully in the Japanese market, it is significant that the company should consider the expansion of its product lines to other nations. Nestle Company has a great experience in many countries all over the world. A close examination of the experience indicates that the company can use the knowledge regarding the local preferences of the people of every country they have ventured into already to introduce the KitKat brand (Urde, Baumgarth, and Merrilees 2013, p. 13). For instance, the KitKat chocolates would be welcome by the American consumers. The justification in this evaluation is that the young adults in the Japanese market have a high affinity for chocolate products. Owing to the fact, Nestle Company in Japan understands that marketing earns the corporation huge profits and a large customer base; the use of its current efficiency in nutrition; health as well as wellness, the company’s entry into the new markets for purposes of growth will be smooth.
The Nature of the Marketing Environment
Primarily, KitKat brand is one of the brands that explain the success that Nestle Corporation in Japan has achieved because of the favorable nature of the marketing environment. Marketing a brand in Japan requires that the strategies applicable be consistent with the culture of the Japanese. KitKat brand embraces the use of color in packaging. In Japanese culture, color is a significant aspect, and since the KitKat brand packages its brand colorfully, the brand is noticeable easily. One other aspect of marketing is the meeting of health standards set by the Japan Food and Drug Administration. The reputation that Nestle Company has gained over the years through high nutritious, healthy and safe products assures the Japanese customers of quality products, in this case, the KitKat chocolate brand.
For the Nestle Japan to remain competitive in the market, it would be recommended that the corporation should adopt the strategy of delivering ordered nestle products, KitKat chocolate in the offices so that they can establish a long relationship with consumers that have no opportunity to go and make purchases during working hours. The strategy is based on the consumer-centric approach to marketing and increasing sales. Apart from using the customer-centric approach, the company can give back to the society by engaging in corporate social responsibility.
To create a strong customer base at the workplaces, the company can fund training and development projects in different organizations and institutions (Urde, Baumgarth, and Merrilees 2013, p. 15). The training and development programs will help the institutions and organizations that benefit to develop a continuous relationship with Nestle Company in Japan. Thus, continued sales and high reputation of its KitKat brand. Using its reputation, the company can usher in a new frontier for KitKat since the customers at workplaces and those of work will evaluate the quality from the experiences with Nestle Company’s products. In fact, the KitKat product will attract, and customers will develop prevalence for it than other chocolate brands from other companies.
What Type of Product Is The Kit Kat (In Japan) Positioned As And Explain Its Value Proposition?
KitKat Product is positioned as a convenience product in the Japanese market. Much as it is considered a luxury product, it has nutritional value, which the customers depend on to stay healthy. The justification for this is noted in frequency with which the consumers make purchases. Apparently, the prices of the KitKat chocolate is low regarding pricing, requires low involvement (Osterwalder, Pigneur, Bernarda and Smith 2014, p. 37). In this way, the Nestle Company has made it a widely available in the Japanese market.
The value proposition attached to the KitKat brand is the fact that the chocolate is a notorious and a component that contributes to a healthy heart. Primarily, the nutrients of the KitKat chocolate increase the brain activity and prevent cancer. In this way, many people in the Japanese market purchase the product. Apart from the nutritious value, people like being happy and joyful. For this reason, eating chocolate, especially the KitKat brand is perceived to be the source of feelings of happiness. Consumers usually record high level of happiness when they eat the KitKat Chocolate product.
How Should the Marketing Team At Nestle Japan Approach Their Marketing Efforts?
The customers prove to be the most significant stakeholders in organizations. Since the products manufactured are meant for the customers, it is imperative always to seek the preferences of the customers. Similar to Nestle Company in the Japanese market that specializes in KitKat chocolate, the customers’ needs can be used as a way of increasing the value of this product. While delivering the products to the customers, Nestle Japan can include incentives such as shopping vouchers and other rewards to the customers such as learning tools for children (Grönroos and Gummerus 2014, p. 208). In this way, the company can increase its customer base without increasing the prices since the customers will be delighted as they will expect more surprises. Additionally, it should be acknowledged that this marketing strategy of giving offers and rewards for purchasing the KitKat product should be season sensitive: festival and school-going periods.
- Grönroos, C. and Gummerus, J., (2014). The service revolution and its marketing implications: service logic vs. service-dominant logic. Managing service quality, 24(3), pp.206-229.
- Osterwalder, A., Pigneur, Y., Bernarda, G. and Smith, A., (2014). Value proposition design: How to create products and services customers want. John Wiley & Sons.
- Urde, M., Baumgarth, C. and Merrilees, B., (2013). Brand orientation and market orientation—From alternatives to synergy. Journal of Business Research, 66(1), pp.13-20.