SWOT Analysis

a.      Strength

1.      Big market shares. The brand has begun to build its market share since 1935. As a result, Kit Kat has become the best-selling chocolate bar in most of the countries and it has since fostered a loyal bond with the consumers. It has become a habit of the consumers to purchase Kit Kat chocolate bar as refreshment for their break.

2.      Kit Kat also has a strong brand name which is the result of strong marketing skills that it possesses. Kit Kat is a well established brand and it has positioned itself as a snack that consumers should have during their break time. With the huge success of the “Break” campaign, now every consumer has associated their break time with the chocolate bar.

3.      Good distribution. Kit Kat has a very good distribution channels to support the huge demand of the market and also vast sales quantity of the new chocolate bar. This makes the Kit Kat chocolate bars readily available any time anywhere and it is the key contribution to achievement of Kit Kat dispatching over 50 million chocolate bars when they first launched the Kit Kat Chunky.

4.      Strong marketing skills. Kit Kat has been a huge success in the confection industry credits to its marketing skills and strategies. Kit Kat has invested in the marketing research and integrated marketing communication in carrying out various promotion campaigns. It has conducted focus group, advertising and promotional activities targeting the right group of consumers that finally revitalised the interest of consumers toward itself.

5.      Kitkat Oat Bar takes advantage of the current trend in the market. The Kitkat Oat Bar will be accepted and loved by the customers who are transforming to healthy lifestyles. It will take only a short period to enter the market at full scale.

b.     Weakness

1.      Competition among its own products varieties. The competition among the varieties drives down KitKat’s products sales. It is also considered less popular among youngsters as the new generation is more fascinated by new brands or competitors that offer innovative and trendy products.

2.      Nestle is known for its weak implementation of corporate social responsibility programs.  The company has received a lot of complaints and criticism despite its efforts in creating good company social image.

3.      Apart from the varieties in its flavours, the intrinsic characteristics of the Kit Kat product and packaging have changed very little during the last sixty years. Only some minor, subtle changes have been made in packaging, merchandising and sales promotions. This can cause boredom in customers who value innovations and new ideas. People may lose interests in KitKat products and opt for new and trendy products from its competitors.

4.      Altering the actual product is potentially a very hazardous act for an established brand name as it risks altering the consumer perceptions of quality built up over decades. Tampering with the long established and recognizable core qualities could well damage the integrity of the brand. It is therefore very important for KitKat to maintain its unique selling points and intrinsic elements in its products.

c.      Opportunities

1.      It has become a trend for people to lead a healthy life recently and health issue has become the top priority in most of the consumers’ minds (Crofton, Markey, & Scannell, 2013). Products that incorporate the health aspect in their formation appeal more to customers. Hence, new product that aims for healthy lifestyle such as KitKat Oat will no doubt be accepted by the market very easily. It does not just satisfy consumers with sweet tooth but also those who desire a healthy lifestyle. People will find a better way to kick start the day with the launch of KitKat Oat.

2.      Although KitKat is considered less popular among the youngsters market, with the right marketing strategy and position it as an easy and healthy breakfast bar, the KitKat Oat will become popular among the new generation as the youngsters nowadays are more open to changes and willing to accept new things. The young generation also tend to follow trend and prefer to have an easy breakfast (Koo, Jalil, & Abd Talib, 2015). It is therefore very easy to secure a place and instantly become recognizable in the new generation market provided that KitKat can build a good image and reputation among youngster trying its products.

3.      The proliferation of digital technology also helps. With the consumers becoming more connected to the internet and social media, new or even existing products from KitKat can be introduced and promoted to a worldwide market with a moderate cost. KitKat Oat will become a hit once it starts its promotion. It can make use of popular social media such as Facebook and Instagram to penetrate into the market in a short period. User-generated content and word-of-mouth play important roles in creating positive buzz for the new Kitkat Oat.

d.     Threats

1.      The threat of substitute products or services. There are many more existing competitors offering better and healthier options such as granola or energy bars.

2.      Bargaining power of suppliers and inflation. The ever increasing costs are making it impossible for Kitkat to keep its products at low price. Customers who are price conscious will eventually opt for competitive products that are relatively cheaper.

3.      Imitation of ideas. The competitive confectionary brands will copy Kitkat ideas and come up with similar products in no time to compete with the company. Customers will then switch brands and brand loyalty is hard to build.