4BUS1010: Kit Kat Marketing Strategy, Environment & Customer Analysis

This report provides a comprehensive marketing analysis of Kit Kat, focusing on its macro environment using the PESTLE framework, target customer identification through market segmentation (geographic, demographic, psychographic, and behavioral), and product positioning via perceptual maps (price vs. quality and caffeine vs. sweetness). It also assesses Kit Kat's growth strategies using the Ansoff matrix, specifically diversification, and outlines the marketing mix (4Ps) to support this strategy. The analysis considers factors influencing the business, such as political, social, and environmental aspects, and evaluates the competitive landscape, concluding with recommendations for sustainable growth and market share expansion.

4BUS1010 Understanding Marketing Assessment Answer sheet
Chosen Product: [Fill in product name here]
Question 1: Macro environment
Produce an analysis of the macro-environment for the core brand and the new product.
Do this by choosing 3 major external factors of the macro-environment from the
PESTLE framework. Discuss current influences from each of these 3 factors which could
help or hinder the progress of this business.

External factors influencing Nestle Kit Kat business
Various external factors impact the business activities. As business is working in the
dynamic environment, business has ho coped up with the changes. Some of the factors can be
identified while some are assumptions or will be faced in the near future which the company is
not aware of ( Banerjee., 2021). Some of the major factors which can hinder or can give
opportunity to the business are:
 Political factors:
With the high popularity KitKat is made available to all over the world. Being
available in many different countries around the world. As political influence differ
from country to country. If a country’s government sees the popularity growing in the
population, they can increase the tax rate and other policy which will benefit the
government. Company has to track all the changes in import, export, taxation among
those countries in which they operates. If the company wants to operate smoothly and
systematically it has to comply with all the political aspect. . Understanding the
demand of the consumers and developing the product according to the need of the
market always give an extra edge to the producer. Political interference differs from
country to country which states that a country can provide better state to operate where
as other can hinder its day to day operation.
 Social factors:
Now in the modern society, customers are the trend setter. As more and more
customer are moving towards the better health and organic products. To meet the
requirement of the customer, company started working towards low sugar; fats etc.
company has proper procedure and policies which regularly monitors to produce high
quality products (Wiyatno,. and Do., 2021). Now a day’s people getting aware and
moving toward the vegan diet, for that company has launched its new product KitKat V
which is based on vegan. To meet everyone needs they also provide custom made
KitKat in the UK. Proper manufacturing and continuous efforts keep everyone under
one tree.
 Environmental factors:
People are getting aware and gets attracts towards those product which has zero
or less impact on the environment. Complying with this Nestle is creating shared value
and strike zero environment damage operations. Behavior of the consumer can tell a lot
about the success or failure of the product. There are many factors which contribute to
the success or failure of the product. Continuous efforts in reducing the plastic

consumption. Use of recycle plastic is the major step toward sustainability. Many
countries are moving toward the sustainable working environment, keeping all this in
account in various countries is the primary task. Nestle prior operation procedure was
not eco-friendly (Jun, and et.al. 2019). The group has to change its operating system
which has reduced 2.6% greenhouse gas emission per ton. The group are developing
and promoting sustainable nutrition worldwide. The major project they have
undertaken is vegan diet, they started offering vegan KitKat in their products to attract
and eliminate the killing of animals for the food.
These are the some of the factors which help the company and also can hinder it.
Keeping this entire factor in account Nestle works towards the sustainability by
complying government policies and to meet the needs of the customer in various
country which helps to make KitKat popular as well as enjoyable.
Question 2: Target customer
Identify one customer profile of the core brand. Use secondary research to show evidence
of who the target market is for this new product. Then describe what a typical customer
for the core brand looks like using behavioural, demographic, geographic and lifestyle
segmentation and explain whether the target audience for this new product would be the
same or different from the current customer profile, and in what aspects.

Targeted customer
As people getting aware of the environment and animals in their surroundings, they are
shifting toward the vegan diet. Eliminating non veg diet moving towards the vegan diet is
rapidly growing pace. Keeping this in mind Company has launched their vegan product KitKat
v. Importance of every species in this world and not killing of animals that is what people are
on to (Singh., and et.al., 2021). Vegan diet has become the new trends in many of the
countries. New product always comes up with lot of opportunities along with high level of
risks. As many sports and famous celebrities started vegan diet has become new and exciting
trend in the people. As company target the youth customer, which are highly influenced and
are the trend maker and also the trend followers. Chocolate and wafer are highly demanded by
the young people in the society. Since the launch of the KitKat they have their targeted
audience which has majority of the young customer in the society.
Market segmentation:
It means the group of people who has similar intention toward any particular brand. It
can be of different types such as mass marketing, one to one marketing and niche marketing.
Marketing segmentation is based on geographic means cultures and countries. Demographic
which means age, gender, income etc. (Baliun., and et.al., 2021). It is difficult for some part of
audience to accept the new product and making a shift from traditional product to the newly
launched one. Psychological includes attitude, awareness wants and needs. Pricing, packaging,
quality, availability, customers’ acceptance about the product are some of the key factors
which decides the faith of the product and company in the market.
Geographic:
Nestle has delicate its market to Nescafe ice based in the region of warm weather, cold
or hot. Considering countries region, rural and world region they take steps accordingly. Nestle
identifies the need and the wants accordingly to geographical changes which helps them in the
better positioning in the current market.
Demographic:
Nestle has different product for the different age group. They never serve same product
for different age group. Products of Nestle that focus that an ordinary man can also buy it.
They produce in small quantity so everyone can afford it (Leliga., Koapaha. and Sulu., 2019).
They also produce goods according to customer occupation.
Psychographic:
Nestle products are segmented according to lifestyle as KitKat are for kids and young
customer who want real taste of chocolate while some products are for those customer who do
not have time to eat.
Behavioral:
Nestle segmented their product according to the knowledge and the awareness of the
customer by that they attract the large target audience. Awareness in the region can be
understood by the continuous monitoring and knowledge of the market.

Question 3: Product and Price
Produce two perceptual maps that show the positioning of the core brand you have
chosen and at least four other competitors. One map must have the axes ‘price’ and
‘quality’, the other needs to have different axes of your choice. You cannot do ‘price’ and
‘quality’ again. Define each of your axes and explain why you have positioned the core
brand and its competitors in the way you have.
3.1. Perceptual map of price and quality
High Quality
Low price High price
Low quality
From the above Perceptual map it is cited about the prices and quality of the products
of the different company. Mars, Ferrero Rocher, M&M and Dairy Milk is the four and biggest
competitor of the Kitkat. The chocolates Mars is having the high quality and low price which is
the most consumed chocolates by the customer in the market. Further the Ferrero Rocher is
having the high quality and high price which is less consumed by the customer as it has high
Mars
chochlates
Ferrero
Rocher
Kitkat and
M&M Dairy Milk

prices. The Kitkat is having the low price and low quality as compare to Ferrero Rocher as this
is the most leading brand in the market. Another competitor is Dairy Milk is having the high
price but used to provide low quality as compare to other chocolates. By having and
conceptualizing the products of the competitors it helps them to gain the competitive
advantage in the market. As this is the new product line they must promote its products which
help them to reach in the diversified market. This perceptual map is having the two axes which
contains the prices and quality of the product and with its competitors.
3.2. Perceptual map of insert own title

Caffeine
Sweetness
[Discuss above Perceptual map]
This perceptual map contains the two axes which is caffeine and sweetness of the drink
products. This used to show that the Pepsi and coke is having the high caffeine and Fanta is
having less caffeine in it. As this is the drinking product it basically contains two things that is
caffeine and sweetness. Caffeine is the especially get from the tea and coffee plants that used
to affect the health of customers. Sweetness is the sweet taste of the drink which is basically
less consumed by the people in the market. By having and conceptualizing the products of the
competitors it helps them to gain the competitive advantage in the market. The different
company should sell its products that must be easily available to the customers in the different
market.
Coke Pepsi
Fanta

Question 4: Growth Strategies
Use Ansoff to show how the new product line fits within one of the growth strategies for
the core brand. Explain, why is this growth strategy the right action for the brand to
take. Briefly explain the marketing mix (4Ps) for this growth strategy and how it will
help to achieve growth.
Ansoff matrix helps the marketers to know and identify about the new opportunities in order to
grow in the market by developing the new products and services or entering into the new
market (Khajezadeh and et.al., 2019). This matrix is basically consisting of four elements that
help the company to grow in the market. It includes Market penetration, Product development,
Market development, Diversification strategy. Among these four the organization can select
the best which is suitable for them to grow in the market. As the new product line is to grow in
the market it can use the best strategy that helps the Nestle Kitkat to grow in the market. The
cited organization can use the diversification strategy that helps the company to grow in the
diversified market (Yaqoob and Omer, 2021). As chocolates are consumed by everyone in the
market so this strategy will be best for company which helps them to promote and sell its
products in the global market. In order to bring the new product they must lower the prices
which helps them to attract more customers and have the target customers.
By having the diversification helps the company to grow its market share by having the
new products in the new markers. This is the risky strategy but this helps the company to grow
in the market and have good profitability (Sukma, Lubis and Utami, 2019). This growth
strategy used to involves the organization to bring its products by entering into the new
products in the new market and other offerings to the customers. The marketers must decide
the best process by considering the prices of the competitors. This helps the company to
increase its market share and profitability in the competitive market.
4P’s of marketing:
Product: This refers to the goods or services that the company used to sell in the market
to their customers. In order to be the successful marketer the company has to make the
products that fulfils the needs and wants of the customers in the market. As the cited
organization is bringing Vegan Kitkat which is the best product helps the company to grow in

the market.
Price: This is the most common thing that is decided by every company in order to sell
its products in the wide market. The marketers must decide the best process by considering the
prices of the competitors. In order to bring the new product they must lower the prices which
helps them to attract more customers and have the target customers.
Place: In this marketing mix the company used to determine the place where to sell the
product and how to deliver the products in the global market. The main aim of company is to
make the products available to the customers in the market (Lahtinen, Dietrich and Rundle-
Thiele, 2020). Nestle Kitkat can sell its products in the global market by using the
diversification strategy. This helps the company to increase its market share and profitability in
the competitive market. As the main aim of the company is to sell its products that must be
easily available to the customers in the different market.
Promotion: This marketing mix includes the advertising, public relations and has the
best promotional strategy. This helps the company to promote its products by using the various
sources of promoting. The aim of promoting the product is to make the customers know about
the new product. The cited organization can use the online promotion or give the
advertisements on the television that helps them to promote its new product in the market.
Question 5: Buyer Behaviour
Using the new product, you have chosen, describe each stage of the buying process and
how consumers might interact with the core brand. Include relevant sources to support
your analysis of the customer journey.
The buying process is defined as the series of the steps that the customer used to take in order
to make the best purchasing decision. This is the best model of the consumers that helps them
to make the bets decisions regarding the purchasing of the products (Blut, Teller and Floh,
2018). This includes the needs and wants of the customers, searching of the information,
evaluation of choices, purchase and post-purchase evaluation. There are basically six stages in
this consumer buying process which is described below:
1. Problem recognition: in this step the customers used to decide that what they want
from the market. The wants and desires are different from actually they want this
used to have problem for the customers. This is basically the most important
process of decision that it makes the person to realize what they actually need from
the market. The cited organization must focus on this step in order to make their
customer satisfied in the market.
2. Information Search: In this stage the customer used to search for the information
in the market about the new product. If the product is goof the people will start

buying the products else they will have more searches on the products and
organization (Mahmoud, 2018). The company must create the good reputation
which helps the customers to buy the best product from the market.
3. Evaluation of alternatives: Some customers used to take fast decisions, but some
used to search for alternatives. They used to evaluate the different options and will
see the benefits and drawback of each alternative. This is very time- consuming
method which used to decrease the market share and profitability if the customer
does not but its products. By doing the best promotion helps the company to attract
the customers and have good profitability in the market and make the customer to
choose best products.
4. Purchase Decisions: After searching and evaluating the different product it makes
the customers to have the best decision in order to purchase the products (Steward
and et.al., 2019). They will buy the best product that is convenient for them and
make them satisfied after buying. This is the main decision that helps the customers
to and must be satisfied with their product they have selected.
5. Purchase: AS this stage the company will make available its products to the
customers which they have decided to purchase. The company must have the easily
availability of the products in the market. As scarcity of the product will lead the
customers to shift on the different brand (Panwar and et.al., 2019). As the cited
organization must have the availability of the chocolates else the customers will
shift on the brand which decreases the profitability.
6. Post- Purchase evaluation: After buying the product the customers or consumers
will evaluate their purchase that is basically based on the expectations of the
customers (Xhema, 2019). If the customers are not satisfied with the product taste
and quality they will not buy that product again and vice versa. So the company
must provide the quality and taste which will attract the customers to but that
product.
Reference list
Use this section to report the references that you used for your research and

understanding of the project. This needs to be in full Harvard referencing style. A good
rule of thumb is to have at least 3-4 references per question. The more the better. You
can find help with this on the CASE website here.
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