Kit Kat Company Essay

1 INTRODUCTION kit out cat-o-nine-tails started in August 29 in 1935 in York by R sustaintree, in 1973 fit kat entered in lacquer market. In 1988, Nestle took over the fit computerized tomography ( fit out Kat, 2014). Today, kit out Kat is real successful in Japan, rig Kat has much then two hundred several(predicate) crossroads in Japan, it suffice kit Kat pound much than(prenominal) and to a greater extent market sh ar in Japan( fit Kat, 2014). More and more(prenominal) hatful think turnout Kat is like a logo in Japan, because there be some special Kit Kat products nevertheless merchandising in Japan. Kit Kat success in Japan is the fact, but why Kit Kat is successful in Japan, it moldiness be affect with generic strategy. Kit Kat exploitation the objurgate strategy to suspensor them success. Generic strategy is very important for the companion, it provide aid the family increment the warlike. When the Kit Kat choose the ripe(p) generic strategy, it go away serve the company more stronger, they rotter get more market sh ars, help the company to be successful. 2. Generic dodgeGeneric strategy was described by Micheal usher in 1979, Porters generic strategy is talking somewhat how a company maturation the agonistical advantage in their chosen market. on that point atomic number 18 three generic strategy, cost lead, diametriciation or emphasis, accent is about two opposite way, cost cerebrate or note focus (Oxlearn.com, 2014). Cost leadership strategy agency save the cost in the organization help the company to increase the competitive advantage. For example Wal-Mart, they ar victimization cost leadership, they are very successful, they find the cheap interior(prenominal) suppliers and from low-wage foreign markets, they spare the cost and usingthe lower charge selling to the customers (Sm each Business Chron.com, 2014). specialty strategy means a company using many contrasting products to increase the competitive advantage and get more market shares.For example, Apple company is a very successful in the world, they get hold of many unalike products, iPh wholeness, iPad, iPod, Mac, Watch, etc. They are using incompatible products to improve themselves, help the company to get more customers and market shares. strain strategy is including cost focus and note focus. The various with cost focus and dissimilariation focus is focus the cost or products differentiation. Cost focus is focus the cost, use the lower cost to improve the competitive advantage. Differentiation focus is a company drive to evoke the different products in the new market take the company more stronger, increasing the competitive advantage. Kit Kat is a successful company in the world, they are using cost leadership strategy and differentiation strategy.There are some solid grounds for why Kit Kat chosen cost leadership strategy. Lower cost sensible seculars. Kit Kat owned by Nestle SA. Kit Kat is sel ling coffee, when they making the products, the need the raw materials, for example sugar, milk, coffee and cocoa. Nestle SA is doing line of merchandise with this raw materials, so they rout out use the cheaper prices to get the raw materials (MarketWatch, 2014). That get out help the company to void the cost, it means Kit Kat butt end use the lower price to selling their product and sustentation the profit, increase the competitive advantage. Retail. In January 15 2014, the worlds offset Kit Kat opened in Tokyo (Ashcraft, 2014).Before 2014, Kit Kat do not have any store, they only selling in the early(a)(a)(a) shops. every(prenominal) of the customer can buy the Kit Kat from the supermarket or shops. It can help the company save the cost. They are selling in the supermarket can help the company, they do not need to hire more employees and open the own shop they need to pass more cost. Today they opened the first store in Tokyo, but customer in any case can buy the Kit Kat from the supermarket or in new(prenominal) shops, it can help the company get more customer and increase the competitive advantages. There are some reasons for why Kit Kat chosen differentiation strategy. The strategy customer.Kit Kat has more then 200 different products in Japan. There are more then forty products are only selling in Japan, for example Wasabi, Strawberry Cheesecake, Lemon Vinegar, and cuke (Break with Kit Kat, 2014). Kit Katproduces many different products, that is achieve the differentiation strategy, they try to use the differentiation to improve the company. Different population has different taste, need and want, so different will get more and more customer to buy the products, different product is fitted to different customers. That is the reason why different products can increase the competitive advantage for the company. All of the different products have their own package, different colour and different weight.In 1942, Kit Kat fist time sellin g the blue Kit Kat in the market, in 1949, Kit Kat start to selling red Kit Kat in the market, after that, Kit Kat produced more and more different Kit Kat, for example, in 1990s Kit Kat start to selling the Nestle Macintosh Corporation ( Kit Kat, 2014). Japan is a developed country, concourse want to improve the prime(prenominal) of life, so they need more different products, they want more different experience. Everyones life is different, so they have different demand, students, workers and old people have different need, today you can find much more different Kit Kat in Japan, anyone can choose different Kit Kat for them. Different Kit Kat has own colour, people like different colour, so different colour can keep different customer and different weight is suitable for different customer, for example, if one family like eating Kit Kat, they need more weight, can help them save time, do not need to buy many times, so bigger weight is suit for them. Key competitors.Kit Kat is doi ng line with coffee berry, but there are some chocolate industry in the world, for exampleFerrero brands, Mars brands and Cadbury brands. They are in like manner doing the pipeline with chocolate, the are also very successful, so Kit Kat need to improve the competitive advantage. Other brand do not have much different products, but Kit Kat have many different products, it will help Kit Kat easy to get the customer. Kit Kat is owned by Nestl SA which also owns a range of other product brands, from 2007 to 2012, the market share only changed 0.7%, that mean differentiation help the Kit Kat keep the market shares (Break with Kit Kat, 2014).Kit Kats target market is men and women of exclusively ages, so different products can help Kit Kat keep the market shares. All of the chocolate company selling the products in Japanese market, the number of customers is fixed, so Kit Kat is using differentiation strategy to increase the competitive advantage, when Kit Katfight with other compan y in the market, they are more stronger, they can get more market shares, help the company more successful. 3. Ebola and Kit KatEbola virus is an infectious ailment, this disease has a utmost risk of death (Who.int, 2014). starting cases notified in March 2014 in air jacketern hemisphere Africa.(Who.int, 2014). It affect the price of cocoa, in November the price of cocoa up cardinal percentage, before November it was up to thirty-five percent to forty percent (PBS NewsHour, 2014). westward Africa is the worlds largest cocoa origin, when Ebola virus found in west Africa, that affect the cocoa trade, many farmer in Ebola virus disease, because this disease has a high risk of death, so much of the farmer died of Ebola virus disease, so they lose a lot of labor, they do have bountiful people to working with the cocoa, so the chocolate company can not buy the enough cocoa, demand higher then supply, the price of cocoa will going up. In USA, all of the price of chocolate increase ten cents for each Kit Kat. Kit Kat is a chocolate company, cocoa is the most important raw material, they need the cocoa to pass the chocolate, but the price of cocoa going up, so they need to spend more cost on the cocoa, but they did not pass all the cost to the customers, so in 2014 the sales slump seven percent (FoodNavigator-USA.com, 2014).Kit Kat can use operational level strategy. available level strategy A plan that details how a business will use its production resources to meet its goals. Many business managers will put together a detailed operation strategy in order to clearly present to subordinate staff their plans for how their portion of the business should function in order to attain its objectives (BusinessDictionary.com, 2014). The price of cocoa up around twenty percent is about the global economy, so all of the chocolate companies are increase the costs, they also need the cocoa to produce the products. If Kit Kat is using cost same like other time, they also want to keep the profit, they must transfer the cost to the customer, it means increase the price of the Kit Kat, but Kit Kat can choose to number the cost in the transport or other please, they also can find the cocoa supplies from other countries, help them to reduce the cost.Seventy percent cocoa from west Africa, there are also thirty percent cocoa they can find, using the cocoa from other may be is cheaper, try to save the cost in the other places, for example package,or transportation. Kit Kat can find the cheaper other raw materials, help the company to reduce the cost. When Kit Kat try to save the cost in other places, do not increase the price of products, they can increase the competitive advantage, help the company keep the customer and market shares.4. ConclusionKit Kat is a very successful company in Japan. Kit Kat is start from 1935 to now, Kit Kat has 79 years history. In this 79 years, Kit Kat from a small business becoming this successful company, because they are using the right strategy, right strategy can help the company dish up and becoming more stronger. They have more the four hundred different products, they can fight with the Ferrero brands, Mars brands and Cadbury brands, and becoming same with that brands, even more successful in Japan. Different strategy suit for different touch and different company, there is not best strategy, there is only suitable strategy, a strategy may be can take the company more and more successful or closed.5. List of ReferencesKit Kat. 2014. KitKat History. Online. accessible from http//nestle.jp/brand/kit/about/history/ Accessed 22 DEC 2014. Oxlearn.com, (2014) Oxford study Lab Watch it Learn it Badge it. Online. Available from http//www.oxlearn.com/arg_Marketing-Resources-Porter%27s-Generic-Strategies_11_33 Accessed 28 celestial latitude 2014. Small Business Chron.com, (2014) Examples of Cost Leadership & Strategy Marketing. Online. Available from http//smallbusiness.chron.com/examples-cost- leadership-strategy-marketing-12259.htm l Accessed 28 December 2014. MarketWatch, (2014) Nestle keeps view on raw material inflation. Online. Available from http//www.marketwatch.com/story/nestle-keeps-view-on-raw-material-inflation-2012-08-09 Accessed 28 December 2014. Ashcraft, B. (2014) The Worlds First Kit Kat Store Is Opening in Tokyo, Kotaku. Online. Available from http//kotaku.com/the-worlds-first-kit-kat-store-is-opening-in-tokyo-1501753395 Accessed 28 December 2014. Break with Kit Kat, (2014) Global Business Strategy. Online. Available from http//breakwithkitkat.weebly.com/global-business-strategy.html Accessed