Progress 1 - Group 8
Progress 1 - Group 8
2. Situation Overview:
2.1 Overview of market
- In July 2021, Vietnam's chocolate confectionery market recorded a 3% growth in - The
Vietnamese chocolate confectionery market observed a 3% increase in volume and an 8%
rise in current value during July 2021. This resulted in the sale of 6,200 tonnes and 3,044
billion VND (Vietnamese Dong), respectively.
- The reduced demand for chocolate confectionery was a consequence of the decline in
social gatherings and special events due to the impact of COVID-19.
- Nestlé Vietnam Co. Ltd. occupies the second-largest market share, following Mars
Vietnam Co. Ltd. However, KitKat emerges as the leading brand with an impressive 8%
share in 2021, surpassing other popular brands like Guylian, M&M’s, Bella, and
Snickers.
- The outlook for chocolate confectionery sales in Vietnam appears promising, given the
country's more stable government, economic environment, and consumer buying power.
Market Trends
Some market trends of KitKat include:
- The trend towards healthier snacking options is growing, encompassing lower calorie
and portion-controlled treats. KitKat has responded to this shift by introducing products
such as KitKat Mini and KitKat Senses, which provide smaller portions and reduced
calorie alternatives.
- KitKat consistently introduces new flavors and limited edition varieties to retain
consumer interest and appeal to fresh customers. This pattern coincides with consumers'
inclination for diversity and novelty in their snack selections.
- Despite its reputation for affordable indulgence, KitKat is adapting to the trend of
premiumization in the confectionery sector. The brand has embraced this movement by
offering products like KitKat Chocolatory, delivering customizable and upscale chocolate
experiences.
- The mounting consumer concern regarding the environmental impact of their purchases,
including food items, has prompted KitKat to implement sustainability measures. These
initiatives involve sourcing sustainable cocoa and minimizing packaging waste to align
with consumer demands.
- In response to the surge in digital media consumption, KitKat has integrated digital
marketing platforms to interact with consumers and foster brand loyalty. This strategy
encompasses social media campaigns, collaborations with influencers, and interactive
online engagements.
By remaining attentive to these market trends, KitKat can persist in enhancing its product
range, enticing new consumers, and upholding its stature as a prominent entity in the
confectionery sector.
STRENGTH OPPORTUNITIES
- Good quality and trustworthy from - The influences of Japanese culture and
reliable sources such as 100% sustainable cuisine have had asubstantial effect on
cocoa and sugar from Ivory and supporting this trend.
Malaysia.
- Vietnamese consumers really enjoy
- Create by Nestle, a strong brand which sweet and chocolate products.
is famous for its food’s quality and has
high demand all around the world. - Enhancing brand image through reducing
the use of plastic and ensuring the
- Different flavors of Kit Kat in Vietnam. livelihood of the cocoa farmers.
Ex: Greentea Kit Kat is the most popular
one. - Vietnamese customer prioritize the favor
of foreign-made products.
- Nestle usually introduce new products
every year. - KitKat can be arguably the preferred
choice in the sustainable confectionery
- Widely distributed in both physical sector.
stores and online platforms.
Weakness Threats
- Nestle Kit Kat has limited shelf live and - Mars, Dove are some infernal
cannot be stored for a long time. competitors of
4, Marketing Objectives: These are the specific goals that the company aims to
achieve through its marketing efforts, such as increasing sales, brand awareness, or
market share,
5. Target Market
5.1. Segmentation
Psychographics:
lifestyle,
preferences,
values, what
kind of goods
they like
Behavior:
preferences,
spending habits,
how/when they
buy, what
benefits they
hope to gain
from the
purchase
Source:
1. Product:
● Product Attributes:
○ Emphasis is placed on the fundamental strengths of Kit Kat, which
encompass its delectable chocolate wafer bar, practical packaging, and
diverse range of flavors including classic milk chocolate, dark chocolate,
and white chocolate.
○ Introduction of exclusive Tet and Valentine's Day flavors tailored to
seasonal tastes, such as strawberry cheesecake for Valentine's Day and
black sesame for Tet.
○ Designing individual-sized and larger pack choices is essential to address
the demand for both personal use and gift-giving purposes.
○ Investigate potential avenues for providing more nutritious alternatives,
such as dark chocolate and mini bars, in response to changing consumer
tastes.
2. Service:
● Service Attributes:
○ Maintain consistent quality and taste to ensure customer satisfaction.
○ Ensure customer satisfaction by maintaining consistent quality and taste.
○ Implementing loyalty programs or rewards could be considered as a
strategy to stimulate recurring purchases and foster brand loyalty.
3. Brand:
● Brand Attributes:
○ Utilize the well-established brand image of Kit Kat, which is renowned for
its associations with enjoyment, lightheartedness, and accessible luxury.
○ Integrate cultural motifs associated with Tet, such as those symbolizing
luck and auspiciousness, as well as elements related to Valentine's Day,
including themes of romance and emotional expression, into both the
packaging and communication strategies.
○ Positioning Kit Kat as the ideal "companion for break time" within all
specified target demographics.
4. Price:
● Pricing Strategy:
○ Ensure pricing competitiveness is upheld within the chocolate snack
category.
○ Execute tactical modifications to pricing or promotional strategies around
the periods of Tet and Valentine's Day with the aim of stimulating sales and
enticing fresh clientele.
5. Incentives:
● Customer Incentives:
○ Limited-edition packaging showcasing Tet and Valentine's Day motifs in
order to cultivate a perception of exclusivity and desirability.
○ Utilize various social media platforms to facilitate interactive contests,
promotional giveaways, and culinary suggestions showcasing Kit Kat
products.
○ Provide bundle offers or multi-pack discounts as incentives to stimulate
increased purchasing.
○ Examine the potential impact of loyalty program incentives when put into
practice.
● Collaborator Incentives:
○ Formulate trade discounts or promotional strategies for retailers to
encourage the prominent placement of Kit Kat during important seasons.
○ Explore co-branding partnerships with compatible brands for Tet or
Valentine's Day promotions in order to broaden audience reach.
● Employee Incentives:
○ Introduce incentive schemes based on performance metrics correlated with
sales objectives around the periods of Tet and Valentine's Day as a means
of enhancing employee motivation.
○ Provide employees with discounted rates or complimentary products as a
strategy to elevate morale and strengthen brand loyalty.
6. Communication:
● Communication Channels:
○ Formulate compelling social media campaigns (such as contests,
giveaways, and recipes) that are in line with the Tet and Valentine's Day
motifs.
○ Engage in partnerships with retailers to develop visually appealing in-store
exhibits showcasing Tet and Valentine's Day packaging prominently.
○ Collaborate with relevant influencers to capitalize on their outreach and
endorse the seasonal offerings of Kit Kat.
○ Focus on distinct demographics (such as students and health-conscious
professionals) by strategically partnering with educational institutions or
fitness centers/health food stores, respectively.
○ Deploy public relations strategies (including press releases and media
coverage) to foster favorable brand recognition during critical seasonal
periods.
○ Create packaging designs that seamlessly incorporate Tet and Valentine's
Day themes for effective visual communication.
7. Distribution:
● Distribution Channels:
○ -It is imperative to prioritize robust distribution through conventional
channels such as grocery stores and convenience stores.
○ Enhance the presence on e-commerce platforms in order to accommodate
the changing tastes and preferences of consumers.
○ Examine the possibility of extending distribution to vending machines
strategically positioned to capitalize on snacking opportunities on-the-go.
○ It is advisable to contemplate forming partnerships with transportation hubs
(such as airports and train stations) during peak travel periods (potentially
coinciding with Tet) to broaden the reach to a more extensive audience.
Conclusion
Through the implementation of this exhaustive marketing mix strategy, Kit Kat has the
ability to efficiently pinpoint its selected demographics, capitalize on the cultural
importance of Tet and Valentine's Day, and attain substantial sales escalation in the first
quarter of 2025. The emphasis lies on specialized product offerings, strategic messaging,
and streamlined distribution networks.
7, Marketing Budget
8, Implementation
To ensure the "Turn on Love Mode" and "Find the Pieces of Love" activities effectively
capture hearts and drive sales, a robust monitoring and measurement plan is crucial.
Here's how we'll track the campaign's success:
● Brand Awareness: We'll measure the campaign's ability to generate buzz and
increase brand recognition through:
○ KPI: Increase in mentions of "Kit Kat Valentine" and campaign hashtags
(#FindThePiecesOfLove,#ValentinesWithKitKat) on social media and
online platforms compared to the previous year.
○ Metrics: We'll utilize social listening tools like Brandwatch or Sprout
Social to track mentions across various platforms.
● Engagement: We'll assess how effectively the campaign engages the target
audience through:
○ Turn on Love Mode:
■ KPI: Event attendance, social media engagement rate on event-
related posts, and interactive game participation rate at the event.
■ Metrics: Event management platforms will track attendance. Social
media analytics platforms (e.g.,Facebook Insights, Instagram
Insights) will measure engagement on posts.
○ Find the Pieces of Love:
■ KPI: Social media engagement rate on campaign-related posts and
online minigame participation rate.
■ Metrics: Similar to "Turn on Love Mode," social media analytics
and web analytics tools for the minigame will be used.
● Sales Impact: We'll track the campaign's influence on Kit Kat Valentine's Day
product sales through:
○ Turn on Love Mode:
■ KPI: Sales of Kit Kat Valentine products at the event compared to a
set benchmark.
■ Metrics: Sales data from the event management platform will be
used.
○ Find the Pieces of Love:
■ KPI: Sales lift for Kit Kat Valentine products compared to the
previous year's Valentine's Day period,and coupon redemption rate
(if applicable) for completing the puzzle or participating in the
minigame.
■ Metrics: Sales data from retailers and e-commerce platforms will be
analyzed alongside coupon tracking system data (if applicable).
● Social Listening Tools: As mentioned earlier, tools like Brandwatch and Sprout
Social will be used to monitor brand mentions, track campaign hashtags, and
analyze social media sentiment.
● Social Media Analytics Platforms: Facebook Insights, Instagram Insights, and
similar platforms will provide valuable data on engagement rates, reach, and
audience demographics for social media posts related to each campaign activity.
● Event Management Platform: If a dedicated platform is used to manage the
"Turn on Love Mode" event, it will offer data on attendance, registrations, and
potentially even in-event sales.
● Web Analytics Tools: If the "Find the Pieces of Love" minigame is hosted online,
web analytics tools like Google Analytics will track user participation, completion
rates, and other relevant data.
● Sales Data Analysis: Sales figures from retailers, e-commerce platforms, and the
event itself (if applicable) will be compared to historical data to measure the sales
impact of the campaign.
● Coupon Tracking System (if applicable): If coupons are offered as part of the
campaign, a dedicated tracking system will monitor redemption rates, providing
insights into user behavior and the effectiveness of the incentive.
Campaign Activities and Supporting Tactics (Examples):
Looking for piece of love Media outreach, press Earned media mentions
releases, influencer gifting brand sentiment: 20%
Conclusion:
Throughout the campaign, we'll closely monitor the data and adjust strategies as needed.
For example, if a particular social media platform is generating significant engagement,
we can allocate more resources there. Likewise, if a specific aspect of the minigame
shows low participation, we can refine it to improve user experience.
The team freely chooses the form of presentation of work that meets the content
requirements and is as creative as possible,