Pestle Analysis of Kinder Chocolate

PRINCIPLES OF
MARKETING

Table of Contents
Background of Kinder Chocolate....................................................................................................1
Existing brand values of Kinder Chocolate.....................................................................................1
Growth strategy of Kinder (Ansoff Matrix).....................................................................................3
Proposed Target Market for Brand Extension.................................................................................4
Pestle analysis..................................................................................................................................5
Comparative analysis.......................................................................................................................5
REFERENCES................................................................................................................................7

Background of Kinder Chocolate
In the year of 1968, a famous brand named as Kinder Chocolate came in existence and
since then company is offering customers with confectionery product brand line and this is
developed by Ferrero. Michele Ferrero was the founder of this company who initially worked
within the Italian markets and in present Chocolate is offering its products more than 125
countries. If it is talked about market share in 2015, Kinder has grabbed approximately 9.35
percent of the global chocolate market. Along with this, Kinder is offering customers with good
quality chocolate products with a premium price and this could be considered as trends in sales
in present time.
Existing brand values of Kinder Chocolate
If it is talked about brand values, Kinder Chocolate has kept its focus on customer's need
and requirements and i.e. high quality, product freshness, finest raw materials and respect. These
are some of the points on which Kinder has directly conducted research and helped them in
building up a good image within the market. Along with this, company also dealing with
hygiene, social issues and continuously serving to customers with different range of chocolate
products. Away with this, there are some of main points under this, which mainly Kinder has
considered while building up there brand and these are:
 Loyalty and trust
 Respect and responsibility
 Integrity and Sobriety
 Passion towards innovations and research
 Work, create and donate
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Along with this, there are a range of promotional campaigns that are being developed by
company and these are:
 Invented for Kids, approved by mums
 Kinder Chocolate, just bigger
 A treat for the imagination
 The Indulgent taste
Including this, Kinder+Sport could be considered as a sponsorship activity, done by
international Ferrero Group. This aimed to bring joy of movement into the life of every child.
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Growth strategy of Kinder (Ansoff Matrix)
Kinder has decided to extend its business, and in regards to the same, company is going
to offer customers with Milkshakes within different range of flavours like, banana, strawberry,
vanilla and chocolate. For the same, Kinder has used Ansoff Matrix as its growth strategy which
is given below:
Ansoff Matrix:
Market Penetration : This is being used by Kinder at the time of enhancing existing
products' sales. Bueno, Surprise, Joy are some of the products which Kinder is offering to the
customers and for enhancing the sales, through developing promotional campaigns.
Product Development : Since company is looking forward to brand extension
considering Milkshakes as its primal product, where Kinder is going to offer customers with new
brands within the existing business market in which it is already performing.
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Market Development : This strategy focuses on reaching new markets with existing
products in the portfolio. In context to Kinder, company will reach to the new markets with their
products which are already famous in the existing markets. Kinder Joy is one of a famous and
strong product of brand portfolio of Kinder which helped in grabbing Asian business market in a
short span.
Diversification : Considering this strategy, Kinder might reach to the new markets with
the help of new product and i.e. Kinder Milkshakes with different range of flavours, but this
might create uncertainties for Kinder at the time of entering new business market with
Milkshakes.
Proposed Target Market for Brand Extension
Kinder is looking forward to expand its business in South America in a specific country
i.e. Peru. For the same, company has used STP model in order to expand its business within the
country with a sure and short plan. It is described briefly beneath:
Segmentation: It consist with four different segments and these are: Demographic,
Geographic, Psychographic and Behavioural. Here, Kinder has used demographic segment and
divided individuals considering the age groups from 3 to 12, 12 to 60 and more.
Target : In regards to this, Kinder has taken demographic as its segment and considered
age factor where organisation has targeted individuals of the age group of 12 to 60 in order to
sell Milkshakes in Peru.
Positioning : Kinder is going to place Milkshakes at a premium level with decent prices
as it is offering customers with good quality products considering its actual value.
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Pestle analysis
Political : Change among rules and regulations made by Peru's government might impact
upon promotional acts, sales and profit margins as well of Kinder while brand extension
considering Milkshakes as its product.
Economical : Peru's economical conditions are not that good enough, but it is rising
which can affect overall idea of brand extension of Kinder. Since, people of Peru do not spends
much in regards to joy which will directly put negative impact upon Kinder's Milkshakes.
Social : Since Kinder belongs to a foreign country, it is may be possible that Peru's public
might not accept entry of it. This has also impacts negatively upon sales of the company.
Technological : In technological terms, Kinder is using different range of tools that are
linked with technology and this has helped them in building their products with high quality.
Company would have to take their technology to Peru as it is not that strong enough,
Legal : Laws, rules and regulations of Peru differs from Italy which could impact upon
supply chain management of Kinder.
Environmental : Environment conditions of Peru are different from Italy. It is may be
possible that Kinder would require to make modifications within Milkshakes as per needs and
requirements of customers at Peru.
Comparative analysis
The brand extension of Kinder if compared with Nestle, as it is also performing business
within in Peru, it can easily be said that both of the companies considered demographic as their
segmenting approach. Age factor has helped organisations (Kinder and Nestle) in becoming a
known brand within Peru.
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REFERENCES
Books and Journals
Rowley, J., 2016. Information marketing. Routledge.
Baker, M. J., 2016. What is marketing?. In The Marketing Book(pp. 25-42). Routledge.
Atwal, G. and Williams, A., 2017. Luxury brand marketing–the experience is everything!.
In Advances in luxury brand management (pp. 43-57). Palgrave Macmillan, Cham.
Villeneuve, J. P. and Pasquier, M., 2017. Marketing management and communications in the
public sector. Routledge.
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