Kit Kat 3

KIT KAT “Have a break, have a Kit Kat”, the familiar slogan from one of the world’s leading chocolate brand, Kit Kat, a product from Nestle company. The line was created by Donald Gills, an executive at an advertising agency in London (Nestle.com, 2016). The Kit Kat brand was first introduced by Rowntree’s,a confectionery company based in York, United Kingdom in 1935. The name Kit Kat was named after a club where a band of writers and politicians used to meet up in London during the 17th and early 18th century. In fact, Kit Kat has changed a lot since then, entering diverse markets from all over the world. The most significant marketing strategy of Kit Kat was how it entered the Japanese confectionery market and become the leading brand. One of the key characters of Japanese people is that they value their formality, therefore, before letting a brand to enter their market, it is very important that the product is high in quality and appearance. According to Mosisawa (Mars Japan GM), customers in Japan are the hardest people in the world to please in term of product appeals ranging from the simple product covering and visual appearance to the highest product standard (Eatocracy.cnn.com, 2012). Therefore, Kit Kat’s products must be shown in a standard appearance and quality in order to develop in Japanese market. A total of 8 of these branded stores has been rapidly opened since the first opening of the first if its kind in Tokyo from January 2014 (The Telegraph, 2015). Since opening its own boutiques, Kit Kat has made it stand out from other chocolate brands such as Mars, Snickers which found mainly at convenient stores. More than one million customers have been reporting using this premium confectionery service making up to 2 billion in revenue for Nestle (Nestle.com, 2016). Kit Kat is then no longer considered as a simple chocolate snack that people consumed in Japan, but a representation of high value gifts and treats for themselves and their friends. The way Kit Kat develop its products and provide manufacturers in different parts of the world new entrance was a big achievement in order to attract consumers. Japan, is the most successful market for Nestle where Kit Kat has made it become a unique chocolate empire. A simple explanation for such success is the continuing funding from Nestle for Japan specific marketing activities (Eatocracy.cnn.com, 2012). Nestle has made an agreement with a Japanese confectionery company named Fujiya in 1970s and bought its share in 2000 (Thompson, 2014). According to adage.com, realizing that the word Kit Kat is similar to the Japanese word “Kitto Katsu” which means “surely win”, Nestle has used this as an opportunity to send student good luck wishes before the higher-education exams as a potential marketing strategy (Madden, 2010). And this ‘fortune’ meant the sound of money pouring ‘ka-ching’ to Nestle (Eatocracy.cnn.com, 2012). Therefore, a campaign called” Kit Kat mail which idea comes from JTW, an advertisement company in Japan has been running. This campaign allowed parents, teachers and friends to send handwritten notes to each other which help strengthen not only the relationship between people in the family but also teachers and students. As the JTW agency interceded with Japan Post to offer Kit Kat in 22,000 post offices, it shows that Japan post treasured the product as “a permanent offering alongside traditional stamps and postcard” (Wpp.com, 2016). By being partners with the Japan postal services, Kit Kat has found a great way of advertising its brand without facing any competition, unlike at a convenience stores or supermarkets, where many other brands are sold. Over the past few years, Kit Kat has entered into over 70 different markets in the world. However, when it comes to Japan, Nestle has taken Kit Kat from a normal chocolate bar to a new level by making unique flavors that are limited in different region’s specialties in Japan. Kit Kat is now the highest ranked chocolate seller in Japan (Nestle.com, 2016). Since 2002, Kit Kat Japan has released over 200 flavors (Tiffany, 2015). For instance, yurabi melon and baked corn that comes from Hokkaido island, the green tea and cherries from Tohoku in northeastern Japan or at the southernmost tip of the country, they have the yuzu fruit and red potatoes, etc (Madden, 2010). Therefore, with the featured and creative flavors, which are limited to each region, Nestle has made Kit Kat a unique brand in the Japanese confectionery market. Not only making for region’s specialties, Kit Kat also released flavors that follow after season such as strawberry, orange, etc (Mitamura, 2016). As a result, these wide range selections of flavors have helped Kit Kat to easily enter the Japan’s market along with becoming the king of candy in Japan, but also new exclusive flavors that cross over regions, seasons and special holiday occasions. Hence, the brand has built up a unique relationship with Japanese consumers. All in all, among hundreds of special editions and new product that launched in Japan, Kit Kat is one of the Western’s products that has been the most successful in Japan. As it has overcome the most difficult market in Asia, Japan by using the unique kind of marketing by pointing out the specialty in each flavor that resemble different region in Japan and using the post office as a brilliant marketing strategy that has been a part of helping Japan to retain its traditional stamps and building relationship between people and people. Kit Kat also creates its own trademark by promoting itself as a higher end confectionery brand in the Japanese market, which can be difficult penetrated by foreigner brands. This comes with a serious understanding of the market and appropriate investment in Kit Kat marketing and business strategy. Other organizations who look to enter Japanese market can take Kit Kat as a successful example. Bibliography (2012, Febuary 2). Retrieved from Eatocracy.cnn.com: http://eatocracy.cnn.com/2012/02/02/how-did-kit-kat-became-king-of-candy-in-japan/ (2012, Febuary 2nd). Retrieved from Eatocracy.cnn.com: http://eatocracy.cnn.com/2012/02/02/how-did-kit-kat-became-king-of-candy-in-japan/ (2015). Retrieved from The Telegraph: http://www.telegraph.co.uk/food-and-drink/features/how-the-kitkat-became-a-phenomenon-in-japan (2016). Retrieved from Nestle.com: http://www.nestle.com/investors/brand-focus/kitkat (2016). Retrieved from Wpp.com: http://www.wpp.com/wpp/marketing/awards/jwt-kit-kat-mail-triumphs-at-cannes/ (2016). Retrieved from Nestle.com: http://www.nestle.com/asset-library/documents/investors/fact-sheets/kit-kat-fact-sheet.pdf Madden, N. (2010, March 04). Retrieved from Adage.com: http://adage.com/article/global-news/marketing-nestle-flavors-kit-kat-japan-markets/142461/ Mitamura, F. (2016). Retrieved from Ignition: http://ignition.co/312 REPORTER, M. (2015, October 16). Retrieved from Mail Online: http://www.dailymail.co.uk/news/article-3275974/Why-KitKat-called-KitKat-Vintage-Nestle-poster-reveals-inspiration-chocolate-bar-17th-century-pastry-chef-named-Christopher-Catling.html Thompson, A. (2014, May 20). Retrieved from Chicagonow.com: http://www.chicagonow.com/raising-world-citizens/2014/05/kit-kat-chocolates-in-japan-unique-varieties-popular-across-the-country/ Tiffany. (2015, March 6). Retrieved from Tokyo Cheapo: https://tokyocheapo.com/food-and-drink/where-to-buy-unusual-japanese-kit-kat-flavors/ Pham Huong Giang IFY