International Marketing Analysis: Nestle's KitKat Performance

This report provides a comprehensive analysis of Nestle's KitKat marketing strategies in an international environment. It begins with an executive summary and an introduction highlighting the importance of marketing in global business. The report then delves into the background of Nestle, including its founding, financial stability, and product offerings, focusing on the KitKat brand. Market selection and PESTLE analysis are conducted to understand the political, economic, social, technological, legal, and environmental factors affecting KitKat's performance. A SWOT analysis evaluates KitKat's strengths, weaknesses, opportunities, and threats. The report also examines the target market, market segmentation based on economic, behavioral, demographic, and social criteria, and a competitor analysis assessing market share, positioning, marketing mix, and strategies. The report concludes with recommendations for enhancing the brand image and promoting the product, emphasizing the importance of adapting to the changing business environment and meeting customer expectations. The report utilizes various marketing strategies, including social media, pricing, market segmentation, and target marketing, to enhance KitKat's presence and attract customers, particularly in the York market.

RUNNING HEAD: Marketing in an International Environment
Marketing in an International Environment

Marketing in an International Environment 1
Executive summary
This report has been executed over the topic “Marketing in an International Environment” in
which discussion will be made regarding the marketing aspects of the Global business
environment. This report has developed an understanding of the impact of the macro
environment factors on Nestle and for the identification of the performance of its popular
product “KitKat” SWOT analysis has been done. Nestle has used different marketing
strategies for the promotion of KitKat. These marketing strategies have helped in attracting
the customers and expansion of the area of operation. It is vital to focus on the marketing
function for gaining market share in the international environment.

Marketing in an International Environment 1
Table of Contents
Introduction................................................................................................................................3
Background of the company......................................................................................................4
Market selection.........................................................................................................................6
PESTLE analysis....................................................................................................................6
SWOT analysis.......................................................................................................................8
Target market or Market Segmentation..................................................................................9
Competitor analysis..............................................................................................................10
 Market share:.............................................................................................................10
 Positioning:................................................................................................................10
 Marketing mix:..........................................................................................................10
 Marketing strategies:.................................................................................................10
Conclusion................................................................................................................................12
Recommendations....................................................................................................................13
References................................................................................................................................14

Marketing in an International Environment 1
Introduction
Marketing is an important element for every organisation which enhances the chances of
survival and growth of the business. Market analysis is an important aspect which helps in the
analysis of the different factors present in the business environment along with their impact
on the performance of the business. Different strategies are being adopted by the companies
for promoting its products and services. This report covers the discussion of the background
of the company, analysis of the micro and macro factors of the business environment and
competitor analysis. Recommendations will be made for providing suggestions for enhancing
the brand image and promoting the products offered.

Marketing in an International Environment 1
Background of the company
For the purpose of discussing the different aspects of this report, an organisation has been
selected. Name of the organisation is “Nestle” which is operating in the Food processing
industry. Nestle was founded by Henri Nestle in the year 1866. Its headquarter is located in
Vevey, Vaud, Switzerland and is engaged in providing quality services all around the globe.
According to the data collected in the year 2016, it has a strong employee base of around
335,000 employees. Profit of Nestle in the year 2016 was CHF8.88 billion. Nestle is
financially stable and this has helped in execution of its operations in an effective manner.
Nestle is one of the largest food and beverage company which is having more than 2000
brands. It is operating in more than 191 countries all around the globe. It is offering different
products to its customers for matching with their expectations and dealing with the
competitors. For gaining a competitive advantage over its competitors, it has used innovative
technology including digital innovation. It has centralised expertise in system technology
with a motive to bring the technology together for combining products and machines. These
products include coffee, dairy products, breakfast cereals, bottled water, baby food, pet food,
ice creams, confectionery, baked food, healthcare nutrition, infant food and yoghurt. Nestle is
operating in different markets effectively and has established strong relationship with its
retailers. It has effectively utilised research and development capabilities for the success and
growth of the business. It holds large amount of market share which acts as its strength. There
are few weaknesses of Nestle which can affect its growth. It is dependent on the sales of few
well-recognised brands. Nestle is dependent on the advertisement which has increased its cost
(Nestle, 2017).
The purpose of Nestle is to enhance the quality of life of the customers and ensuring a
healthy future for the society. Nestle is focusing on meeting the responsibilities towards the

Marketing in an International Environment 1
society for enhancing the quality of life of the society. Different strategies have been adopted
by Nestle for promoting the products and services offered by it. Nestle is coping with the
changing business environment so as to deal with changes taking place in the business
environment. Its strategy is to provide quality products and meeting the expectations of the
customers. It is planning to expand the area of operation it is adopting different marketing
strategies for promoting the product in new markets and grabbing the opportunities available.
It has effectively and efficiently utilised the resources available with it for enhancing its
performance and providing quality products to the customers. It is planning to promote its
product “KitKat” in the York market a city of England for expansion of the area of operation
and enhancing its customer base. The analysis will be done in the market of York for
enhancing the image of the brand by promoting the products offered (Nestle, 2017).
Figure 1: Marketing
Source: (Docur8ed, 2016)

Marketing in an International Environment 1
Market selection
PESTLE analysis
Factors Analysis
Political factors Political factors of different countries are different which can affect
the performance of the company. KitKat is a product which is offered
all around the world. Change in the political factors of the York can
affect the growth of the company. Nestle is operating from a very long
period and has established a healthy relationship with the political
parties. Eyebrows have been raised in few countries which have
affected the performance of the company (Haseeb, 2017).
Economic factors Economic factors include tax rates, inflation rates, wage rates and
interest rates which can affect the sales of the company. The increase
in the interest rates can affect the borrowing capacity of the company.
If the wage rates increases then this will increase the production cost
of the KitKat. Fall in the income level of the people will result in fall
in the purchasing power of the company. This will result in fall in the
sales of the KitKat.
Social factors Demand, taste and preference of the customers are changing due to
which demand of the products get affected. In this changing
environment, customers are more concerned for their health and the
ingredients used in the product. Nestle need to consider the taste,
preference and concern of the customers so as to enhance the sales of
the company. The quality of the products affects the demand for the
products. KitKat is a reasonable product is acting as an advantage and

Marketing in an International Environment 1
attracting the customers towards it (Nestle, 2008).
Technological
factors
Change in the technology used for the production of products also
creates an impact on the production cost of the company as well as the
time involved in the production of the products. The demand of
KitKat is growing and for the purpose of meeting the growing
demand, there is a need to use technology for enhancing the
productivity of the company and meeting the demand of KitKat.
Legal factors For the health and safety of public, laws, rules and regulations are
changing. These changes in the rules and regulations are affecting the
manner in which companies are operating within the boundary of a
nation. Rules and regulations are formulated for the safety of the
customers as well as for the employees which must be complied by
Nestle (ICMAI, 2012).
Environmental
factors
Companies must follow rules and regulations for the safety of the
environment formulated in England. Nestle has stopped using plastic
for packaging of KitKat so as to protect the environment for pollution.

Marketing in an International Environment 1
SWOT analysis
Strengths Weaknesses
 Nestle is a well-established company
which is having strong employee
base.
 Its products are reasonable which
attracts the customers.
 It has gained a competitive advantage
over its competitors due to its pricing
policies and availability.
 It is having a financial stability which
has helped Nestle in coping with the
economic changes in the nation (Soni,
2010).
 Nestle can enhance the quality of its
product KitKat for meeting the needs
of the health conscious customers.
 There is no special feature available
in KitKat which acts as a weakness.
 Flavour of KitKat is same for every
season and this flavour can be
changed according to the season.
 Nestle has not changed the packaging
of KitKat (Corona, 2014).
Opportunities Threats
 KitKat can expand the area of
operations so as to enhance its
customer base.
 KitKat can be offered in different
flavours for attracting customers.
 Nestle can offer KitKat for different
occasions for attracting the customers
as it can be used as a substitute for
sweets (Soni, 2010).
 Competition is increasing and various
companies are offering products on
same rates.
 Change in the economic condition
can affect the production cost and
profitability of the business.
 Recent issues related to other
products of Nestle can affect the sales
of KitKat (Hershey Co. Marketing

Marketing in an International Environment 1
Team, 2014).
Target market or Market Segmentation
Nestle has targeted York market so as to promote KitKat and enhance the sales of KitKat.
Segmenting must be done in an effective manner as it creates an impact on the sales and
profitability of the company. For promoting sales of KitKat, Nestle is segmenting the market
on the basis of economic criteria, behavioural criteria, demographic criteria and social
criteria. KitKat has been reasonably priced so as to attract the customers. KitKat is light and
can be consumed by the customers as snacks. This feature of the product has helped in
attracting the customers. Another criterion is demographic criteria and KitKat is a light
product which is suitable for people belonging from different age groups. People are focused
on quality of the products offered and their lifestyle also affects the choice of product
(Agante, 2013).

Marketing in an International Environment 1
Competitor analysis
 Market share: The market share of KitKat in different nations is increasing due to the
availability as well as the affordable price of the product. KitKat is in the market for a
very long period which provided a competitive advantage to Nestle and contributed
towards the increase in the sales of the company. For coping with the increasing
competition, it has adopted a reasonable pricing policy and wide availability. These
aspects have resulted in a rise in the sales of the product (Ahmed, 2015).
 Positioning: Nestle has made KitKat available at different places such as
supermarkets, departmental stores and local stores so as to expand the reach of the
product. This wide availability has enhanced the sales of KitKat.
 Marketing mix: elements of the marketing mix are discussed below:
o Product: Nestle is offering KitKat in different sizes so as to suits to the
requirement of the customers. KitKat is widely recognised in the different
markets due to availability in different sizes. This step has been taken by
Nestle with a motive to convince the customers of different income group and
age group (Schneiderova, et. al., 2010).
o Price: KitKat is affordably priced which has acted as an advantage for it and
helped in attracting the customers of different income level (Presswire, 2011).
o Place: Nestle has made KitKat available at different places for ensuring that
customers can consume their product. This ease of the availability of the
product has encouraged customers for purchasing KitKat.
o Promotion: KitKat has been promoted on social media platforms as well as
advertisements (Bhasin, 2016).

Marketing in an International Environment 1
 Marketing strategies: Nestle has used different marketing strategies for the
promotion of its popular product “KitKat”. It has adopted social media marketing
strategy, pricing strategy, market segmentation strategy and target strategy. For the
promotion of KitKat and interacting with the customers in a better manner, Nestle has
used social media platforms (Anon, 2012). These social media platforms have helped
in covering a large area at a minimal cost which has reduced the cost and efforts of
Nestle for the promotion of KitKat. Nestle has divided the market into different on the
basis of economic, behavioural, demographic and social aspects. All these aspects
have helped in enhancing the reputation among the customers and gaining their
attention (Presswire, 2015). KitKat is an affordable product which is being preferred
by people of different income level. For the purpose of targeting the customers of
different places, same messages are being used so as to attract the customers. These
same messages have used for encouraging undifferentiated marketing strategy for
attracting the customers (Kamath, 2016).