Vegan KitKat Marketing Report: Environment, Target, Growth & Behavior

This report provides a comprehensive marketing analysis of Nestle's launch of the Vegan KitKat. It examines the macro-environmental factors influencing the product, including political, socio-cultural, and economic considerations. The report identifies the target customer as working professionals interested in vegan and sustainable lifestyles, differentiating them from the core KitKat customer base. Perceptual maps are used to visualize Nestle's positioning relative to competitors based on price, quality, service levels. The report also assesses Nestle's growth strategies, identifying product development as the primary approach, and outlines the marketing mix (product, price, place, promotion). Finally, it explores buyer behavior, emphasizing the importance of understanding vegan consumer preferences and ethical considerations. Desklib offers a wealth of similar resources for students.

Marketing

CONTENTS
QUESTION – 1 (MACRO-ENVIRONMENT).........................................................................1
QUESTION – 2 (THE TARGET CUSTOMER).......................................................................2
QUESTION – 3 (PERCEPTUAL MAPS).................................................................................3
QUESTION – 4 (GRWOTH STRATEGIES)............................................................................5
QUESTION – 5 (BUYER BEHAVIOUR)................................................................................6
REFERENCES...........................................................................................................................8

QUESTION – 1 (MACRO-ENVIRONMENT)
Nestle has its operations across the world and for comprehending the business
environment in which they operate, it is important to carry out external or macro analysis
which are beyond the control of the company. After so much of anticipations, the company is
launching a new plant based vegan KitKat. This new product is being developed by the
chocolate experts at the confectionery research and development of the brand at UK (KitKat,
2021). All this has led to the evolution of great testing vegan KitKat. There are different
external factors of the macro-environment which might impact or support the growth of the
business and these are being elaborated below:
 Political factor – Talking in relation with the political factors, Nestle which is a
multinational brand operates in varied nations of the world and therefore, there are
different political factors which might impact the day to day operation of the firm. It
is quite important for the firm to carry out a task of keeping a record of different
alterations being done in different policies concerning to taxation, environmental
rules, import and export and political conditions in different nations. The changes in
these factors sometimes considered as favourable to the company however many a
times it results as major bottlenecks in production in specified nations (Campbell,
2015).
 Social-cultural factor – Nestle is a big company operating in 190 nations of the world
and when such a big firm operates on such a wide scale it might get impacted by even
the slenderest alteration in the trend by the consumers. With the rising number of
consumers which are more concerned towards the health, the firm has started working
on the products such as saturated fats, sodium and low sugar. Further, the progress of
the KitKat V will be majorly relied on the capability for anticipating the requirements
of the clients and being in a position to provide high quality, innovative, relevant as
well as competitive product. The needs of the people changes, for example, people are
now demanding custom made chocolate and this might impact the sales of the
company.
 Economic factors – One of the major challenge that might come across in the
production of KitKat V is the affordability being one of the most important factor as
offering quality foods for all in the market in which the prices of the raw-materials
keep on changing because of different political along with environmental factors. The
cost of raw-materials is increasing at a tremendous pace, with further unrest amid
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suppliers due to trade wars amid China and US (Armstrong and Cunningham, 2016).
In addition to this, since the new product of the company is plant based or organic, it
will be costly and the lower increase in the disposable income will going to pose
problems of production as well as supplying of quality food at the similar price is the
key issue.
QUESTION – 2 (THE TARGET CUSTOMER)
The core brand Nestle has positioned its variety of offerings of the product in such a
manner that it covers audiences initiating from 2 years old to working professionals. there are
different customers profile which are being targeted by the brand such working professionals,
school going teenagers, old age, kids and so forth. For the current product that this vegan
KitKat, working professionals is being selected as the target market which is done on the
basis of demographics. Moreover, the target market of the core brand and this new product
will not be same as their preferences will be different. The product of Nestle that is KitKat is
being surrounded by the brand image which places enormous importance on have a break
then have a KitKat (Cant and Jooste, 2019). Further, the product also motivates those
consumers who love chocolates and engage in demanding activities on daily basis to take a
break and indulge in the KitKat phenomena. This same strategy should be planned for
targeting the millennial as well as generalization Z individuals. As these are the people who
make up most of the statistic of Vegan, flexitarians and vegetarians in UK. Furthermore, the
main target audience or market will be both males and females working professionals falling
in the age group of 18 to 41 years. These target market will be one who share a common
interest as well as same kind of lifestyle choices of living a healthy, safe and sustainable life.
Other than this, these are the people who importantly comprehends the requirement of plant
based substitute for a popular or beloved brand of chocolate.
Moving further, here it major emphasis is being put up on working professionals who
race to their 8.30 am jobs or meetings with their reusable coffee cups in tow and the everyday
vegan Europeans who boundlessly inquire in regards with vegan options at the restaurants but
most of the returned with a sad looking piece of carrot or boiled vegetables, a misinterpreted
colleagues who makes use of plant based diet who afterwards makes justification about the
selection being made by them to the board of respected hypercritical non-vegans ta work.
Thus, it can be said that the customer profile of the current customer cannot be utilized for
this new product of Nestle as it is mainly targeting people who are vegan customers and are
most likely to make use of products which are cruelty free (Hollensen, 2015). It signifies that
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they are quite far away the utilization of animal based products. In other words, these are
specific consumers who prefer those products which does not harm or kill animal to produce
them. In addition to this, vegan customers are very strict about the food choices and products
they select and they also does not want to neglect anything in relation with the products they
utilize. Therefore, it can be attributed that if the brand is desiring to target and attract working
professional who are vegan customers then they are required to be aware of their
requirements.
QUESTION – 3 (PERCEPTUAL MAPS)
Speaking in relation with the perceptual map, it is being referred as the diagram which
is utilized by the business for mapping out the manner in which their customers observe
varied products, items as well as brands or company (Fleisher and Bensoussan, 2015).
Through collecting combined information, it helps in building the manner in which the
fundamental users comprehends the relative positioning of varied products or companies
within the large ecosystem.
Figure 1: Perceptual map of Nestle
(Researcher’s own creation).
This perceptual map is being prepared for comparing and focusing the two important
factors that is price and quality. These are the main variables in the above map and is being
placed in two axis that is price on axis X and quality on axis Y. In addition to this, both of
these variables such as price and quality will be considered as the main determinant
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attributes. There are different companies of the UK market being plotted in the map and it
can be determined the existing brands are being positioned through producers. The graph also
shows that Nestle is being positioned and perceived as high quality, high price in comparison
with the other competing brands such as Kraft, Campbells etc. This certainly signifies that
people are quite willing to pay higher prices for the products which are higher in quality. The
above perceptual map will allow the brand Nestle to better comprehend their clients and their
behaviour. For instance, Hillshire and Pepsico both are being perceived as unsatisfactory
because they are priced too high and even the quality is quite low. Thus, seeking help rom
this, company can determine what needs to be done for altering the same (Brooksbank,
2018).
The second perceptual map is being prepared for comparing and focusing the other
two important factors that is basic service as well as luxury service. Development of the
below perceptual map of brand positioning will give an enhanced comprehension of customer
segments along with the competitive brands which will be of interest to the segments. The
perceptual map in the subsequent paragraph will going to reflect the positioning of a brand
Nestle against different competitors.
Figure 2: Perceptual map of Nestle
(Researcher’s own creation).
As it can be seen from the above perceptual map, Lindt provides luxurious as well as
high prices collocates for a particular segment of consumers. On the other hand, Hershey’s
caters to the customer segment which are quite different than Lindt. Thus, it can be said that
these brands do not compete with each other. This is due to the fact that Hershey offers basic
services to the customers while Lindt provides luxurious services to their target customers
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(Nestle, 2021). In addition to this, Nestle is above Hershey which contributes to basic
services with high price and the competitive environment is also very low on the market.
Nevertheless, in comparison with the Nestle, there are other brand as well such as Modelez
and Sweet Bits offers enhanced quality chocolates. Other than this, in comparison with Lindt,
the products of Sweet Bliss are of very inferior cost.
QUESTION – 4 (GRWOTH STRATEGIES)
Speaking in relation with the Ansoff matrix, it is being referred as an important tool
being utilized by the firms for evaluating and planning the strategies related to growth. The
matrix reflects four strategies that is new product development, market development,
diversification and market penetration. The very first is market development which involves
selling the current product in the new market. Further, product development involves selling
new product in the same market. Additionally, market penetration emphasize on selling
existing product in the existing market and the final one is diversification strategy emphasize
on entering completely novel market with the introduction of new products. These growth
strategies being utilized for helping the company to grow and at the same time evaluates the
risk being related with each strategy (Ahmad, Mallick and Schroeder, 2013). Speaking in
relation with the growth strategy being adopted by the brand Nestle, there are different
strategies being used by the company with the passage of time or according to their products.
As far as the current new product line of the brand is concerned that is “KitKat V’, it will fit
within the product development strategy. This is due to the fact that the company develops a
new product for catering the existing market. Furthermore, this move of the company
typically includes in-depth research and development as well as expansion of the product
range of Nestle i.e. KitKat. Since, the company has a strong comprehension of their existing
market and are also in a position to innovate solutions for meeting the rising requirements of
the customers towards vegan food choices. The marketing mix for this growth strategy is
being elaborated below:
 Product – KitKat is one of the most vital wafer based chocolate for the customers
who love to indulge in KitKat phenomena. The company is launching a new variant
Vegan in their existing product KitKat which includes plant based ingredients and is
being produced through using milk and rice based alternative.
 Price – As the chocolates does not inhabit major section of the expenditure being
incurred by the customer, KitKat V like other chocolates is an impulsive purchase.
This new product will be price slightly high considering the fact that the firm has to
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make sure that they have enough base of customer which stays loyal to their products
when it is about making decisions related to buying (Aerk, 2019).
 Place – The Company is producing KitKat across UK and also encompasses strong
distribution strategy in its marketing mix for the chocolate company. Further, the
vegan KitKat will be widely present by retail stores and electronic platforms.
 Promotion – For promoting the new product the company will make use of different
promotional techniques. Firstly, the firm will make use of slogan such as Vegan
breaks by using the hashtag #VeganBreak which can be consumed at any point of
time. Other than this, media channels such as poster, television advertisement,
newspaper, billboards and social media platforms such as Facebook, Instagram and
Twitter will be utilized for increasing the sales of the firm.
QUESTION – 5 (BUYER BEHAVIOUR)
The consumers will go through an established set of consecutive phases at the time of
buying a new product that is vegan KitKat. The normal purchase encompasses recognising
the requirements and desires of the customers. Further, it includes searching of data
shadowed by an analysis of all the selection. Last but not the least, the buy takes place and
post purchase analysis monitors a buying. Detailed description of the each stage of the
consumer buying behaviour and the manners in which they will interact with the core brand
is being defined underneath:
 Determining the problem – This is being referred as the first stage of the buying
process which states that initially the customer will not going to make purchase of the
new product that is KitKat v without the requirement of needs (Newman, Howlett and
Burton, 2016). If the need will arise such as if any customer is diagnosed with any
allergies related to dairy or animal products then they will make purchase decision
regarding the same product.
 Searching information – This is the second stage and at this level the consumer is
quite aware of their needs and requirements. In addition to this, they also understands
that if they will make purchase of this product then their issues will be resolved.
Consequently, they want to know more in relation with the product and then they seek
for different advertisement, print media, and videos and online or even ask their
friends and family for the same.
 Analysing the replacements – As of now, the customers have done enough study in
regards with the type of products that this can solve their problem. The following step
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is to analyse substitute product that can resolve their issue. Different points of data
collected from varied sources will be utilized for analysing substitutes. Normally, the
customer will analyse the substitute on the basis of quantity of characteristics of the
product such as taste, quality, price, reviews on social media and popularities
(Eisenhardt and Martin, 2017). Different products are being provided in the market
which can resolve the issue of the customers. Thus, the customer has to make choice
after analysing different substitute present.
 Decision related to buy – At this stage of purchase decision, consumer have already
explored varied kind of options. They also even know the prices along with the
payment options being present. At this point of time, customers are also making
decision whether they want to purchase the product or not. However, at this point
there are chances that they can drop their idea of making purchase and walk away.
The two factors interrupt the final purchase decision that is negative feedback from
friends and sudden alteration in financial condition, business plan and unforeseen
prices (Iacobucci, 2013).
 Post-buy analysis – This is the last stage wherein the customers make purchase of the
product and make comparison with their anticipations. This will involve two results
that is satisfaction or dissatisfaction of the needs. If the product will not satisfy the
customers then that customer will be lost at this stage and even they are satisfied with
the product it is not obvious that they will repeat. This can be judged on the basis of
the reviews being shared by them on website, social media platforms or customer
forum.
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REFERENCES
Books and journals
Aerk, D.A., 2019. Brand portfolio strategy: Creating relevance, differentiation, energy,
leverage, and clarity. Pearson education.
Ahmad, S., Mallick, D.N. and Schroeder, R.G., 2013. New product development: impact of
project characteristics and development practices on performance. Journal of Product
Innovation Management, 30(2), pp.331-348.
Armstrong, G. and Cunningham, M.H., 2016. Principles of marketing. Pearson Australia.
Brooksbank, R.W., 2018. Successful marketing practice: a literature review and checklist for
marketing practitioners. International Journal of Wine Marketing.
Campbell, P., 2015. Pestle analysis in a day. CreateSpace Independent Publishing Platform.
Cant, C.M. and Jooste, J.C., 2019. Marketing Management. Juta and Company Ltd.
Eisenhardt, K.M. and Martin, J.A., 2017. Dynamic capabilities: what are they? Strategic
management journal, 21, pp.10-11.
Fleisher, C.S. and Bensoussan, B.E., 2015. Business and competitive analysis: Effective
application of new and classic methods. SAGE.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Iacobucci, D., 2013. MM4: Marketing management. Boston, MA: Cengage Learning.
Newman, C.L., Howlett, E. and Burton, S., 2016. Shopper Response to Front-of-Package
Nutrition Labeling Programs: Potential Consumer and Retail Store Benefits. Journal of
Retailing, 90(1), pp.13-26.
Online references
KitKat. 2021. [Online]. Available through: <https://www.kitkat.co.uk/kitkat-vegan>.
[Accessed on 1stMarch 2022].
Nestle. 2021. [Online]. Available through: <https://www.nestle.co.uk/en-gb>. [Accessed on
1stMarch 2022].
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