Evaluating International Strategy for Effective Product Promotion
Building the right international strategy is an essential component for the success of promoting any product. In this regard, organizations must professionally and competently evaluate the various options that could lead to better progress. To do this, it is necessary to consider such essential aspects as the tourism component, the cultural characteristics of the market, and the presence of various competing companies (Hollensen, 2020). In the case of Kit Kat, the company’s domestic market is the United Kingdom, while the United States will be used to consider the external market. A critical analysis of the implications of strategic marketing action on various organizational influencers can help to understand the differences between markets.
Home and Foreign Markets
Cultural differences between the internal and external markets are essential for the product, as they help to orient the desired direction of organizational activity better. Various factors included in this category can largely determine the behavior of potential customers, which makes it necessary to study it. The UK and the United States have many cultural differences that can model how people react to a new product in their country and how they feel about domestic products (Rosa-Salas et al., 2021). For the culture of the United Kingdom, the Kit Kat bar is of great cultural importance as a product of domestic production capabilities.
In the UK, Kit Kat is strongly associated with tea drinking and relaxation moments due to the spread of the marketing campaign advertising the product in this way. This is reflected in how people perceive this product, as associative thinking makes them think that the bar is associated with pleasant feelings (Shah et al., 2021). At the same time, the attitude towards it in the foreign market of the United States is significantly different in that Americans consider it as only one of many chocolate products, not attaching much importance to the meanings and symbols as in the United Kingdom. Such cultural differences are crucial and constitute the main features of perception that distinguish the cultural environment of the internal market from the external one.
The Strategic Marketing Mix Implications
To correctly enter the foreign market, Kit Kat conducted a series of studies that helped better understand foreign cultures’ characteristics. Initially, being in their native country, they corresponded to its features and requirements to sell better (Keegan and Green, 2019). However, developing a new marketing plan for the host country was necessary. For example, the supply of Kit Kat products in the United States is significantly different as they produce more flavors and variations in that market than in their home market (Shah et al., 2021). This Nestlé approach reflects the mentality of Americans who value diversity and choice more than the conservative tastes that the British have developed.
Considering the two markets’ economic conditions also makes sense and is essential since the regulation of product prices depends on this. Different sensitivity to pricing policy may vary depending on the country and whether its market is new to the product. Kit Kat has to use a more competitive pricing strategy in the United States to maintain a particular advantage over other chocolate brands. Promotion and advertising strategies are also variable depending on whether the product is promoted in the home or foreign market. The Kit Kat advertising campaign in the UK relies heavily on positioning it as homemade chocolate. Regarding the external market, which is the United States, the brand uses the strategy of promoting the product through the taste of the product (Rosa-Salas et al., 2021). A similar parameter for both markets, which is slightly culturally sensitive, is the mode of distribution through supermarket chains and vending machines.
Home and the Foreign Market Comparison
Cultural differences between home and overseas markets are a solid influencing factor that can largely determine a brand’s strategy for a Kit Kat. The above differences in the cultural perception of the chocolate bar can be seen in the British treating it with warmth and associating it with something homely and relaxed (Shah et al., 2021). Hofstede’s cultural dimensions theory explains this difference in marketing approaches in different markets. The author argues that different cultures differ in some aspects that represent the attitude of consumers toward goods (Paul, 2019).
At the same time, the promotion of taste qualities and various fillings is paramount for the culture of the foreign market. In this context, the overall marketing and management strategy is developed in such a way as to meet the expectations and preferences of the citizens of different countries (Jackson, 2020). For this, in particular, the company is undertaking various tools that can help it better analyze the traditions and heritage of the brand in each country. Traditionalism, in this case, is the main parameter for buyers from Britain. In contrast, the company is taking an approach that focuses more on innovation and diversity in the Kit Kat flavor palette for the United States market.
The product category offered in the UK is based on what classic waffle bars can offer to regular customers. However, they can often be sold in multi-packs, which characterizes them as an opportunity for the whole family to enjoy their taste during a break (Djarum et al., 2019). Different tastes are provided in limited editions to influence consumers’ tastes, which may have changed. At the same time, Kit Kat bars can come in various fillings and flavors in overseas markets such as the United States to cater to a wide range of potential buyers. Changing preferences is essential for this foreign market; therefore, the company must cover all potential requests.
The company’s pricing policy can also differ significantly depending on the market in which the products are distributed. Different market conditions and differing consumer behavior patterns are essential factors in which Nestlé may adjust prices to satisfy as many customers as possible (Djarum et al., 2019). Thus, it causes different measures in the domestic and overseas markets. Kit Kat is marketed as an affordable candy bar in the United Kingdom that everyone can try. At the same time, in the United States, Kit Kat must consider competitors’ pricing policies to determine the most advantageous position and, based on this, set their prices.
Promotion through advertising campaigns is as important as pricing. It must match the cultural aspects of the market to influence people appropriately. For example, in the United Kingdom, the slogan “Have a Break, Have a Kit Kat” is widely used in promotion and is well known to all Britons (Shah et al., 20210). This reveals the product as being set up for a friendly conversation with colleagues or a meeting with comrades. At the same time, more market conditions have developed in the United States, where the main principle is dominance in the market through competition. Thus, promotion largely determines how the product is distributed. However, in the case of the chocolate bar in both markets, it has similar methods, such as supermarkets. In addition, online platforms are also widely used in Britain for users’ convenience. Distribution is the only category that is the same for domestic and foreign markets.
The Reasons for the Adjustment to the Marketing Mix
The adjustment of the Kit Kat marketing mix in the foreign market occurs for several reasons. The first important aspect is the cultural differences between the two peoples in the United States and Great Britain. The mentality of people is quite different, which leads to a different choice of products. Kit Kat needs to adapt its marketing strategies to different countries to provide a full range of impact that will be effective (Djarum et al., 2019). The cultural context of the United States is different from that of the domestic market, and some of the company’s strategies need to be changed accordingly. American consumers are accustomed to various products, which required Kit Kat to expand its product line by adding new options.
In part, this change is dictated not only by the cultural characteristics of the market but also by market conditions, which in the United States focus on novelty and originality. The strategic adjustment of Kit Kat products was justified because American consumers tend to buy products that can cover the entire market of taste preferences. Limited edition flavors of the bar and unique flavors may suit the target audience of a country with a large population (Sakarya et al., 2007). At the same time, in Britain, people are more likely to trust the familiar products they see on store shelves all the time. This makes the Kit Kat bar flavors so versatile in the UK.
Theoretical Support
Several theories were used to support the arguments and justifications in the article; however, Hofstede’s main and common one is the cultural dimensions theory. He suggested that different cultures could be characterized by contrasting terms such as individualism and collectivism, long-term and short-term orientation, and many other aspects that influence consumer preferences (Jackson, 2020). Each element can form personal characteristics in people, depending on which products consumers choose. Adjusting Kit Kat’s marketing strategy in the United States means the company recognizes consumer desires for individualism and diversity.
People in the United States tend to value autonomy, equality, and freedom. Kit Kat should consider these parameters when planning their marketing strategy for the US market. By creating various flavor variations, the brand emphasizes diversity and the ability to stand out for each customer. Therefore, this corresponds to the Hofstede concept’s application (Jackson, 2020). In addition, wide variability also implies autonomy in the choice of tastes, which characterizes the personalization and satisfaction of the personal needs of as many customers as possible.
Changes in people’s perception of various marketing moves are mapped through Hofstede’s theory so that some behavior patterns can be traced. In the UK, people are likelier to trust older products that are second to none. The competition among chocolate bars in this market is not as intense as in the United States, significantly affecting people’s preferences. They relate better to proven recipes, highlighting the uncertainty avoidance in Hofstede’s theory (Paul, 2019). At the same time, the culture of consumers in the foreign market is significantly different. Using the example of the United States, it can be seen how people are constantly looking for new taste sensations and cannot be satisfied with persistence for long enough (Budevaand Mullen, 2014). Subsequently, this leads to the fact that the Kit Kat company in the US market does not pursue the goal of retaining by preserving the old tastes but surprising the client with the release of new original products.
Marketing Mix Strategy Recommendations
One of the main recommendations for Kit Kat could be constant monitoring of the market, as this can have a positive impact on sales in different countries. In addition, it will allow the brand to learn about new trends in markets around the world in time. This approach can help determine whether or not to change the strategic direction of marketing (Touré‐Tillery et al., 2022). Marketing mix recommendations should also include product enhancements, as Kit Kat has more potential to be successfully marketed. Company advertising messages can be addressed to different target audiences, giving a clearer understanding of consumer requirements.
An important recommendation for the marketing development of the Kit Kat company may be to focus on adapting to foreign markets since the organization will have to compete. The marketing mix can be standardized in the main provisions that cannot be changed (Puthusserry et al., 2018). However, variable details must be handled to achieve sufficient trading volumes. Diversity and the availability of a large selection are central values for all foreign markets. This example of the United States market confirms that companies need to pay more attention to start-ups and strategic partnerships that can develop into profitable cooperation.
Cooperation with other brands is necessary to produce more original products that can bribe the buyer and help sell more goods. The United States market is suitable for this purpose as many big domestic brands exist. Following the same example, Kit Kat is now operating in Japan, and this strategy pays off with the number of satisfied customers (Tzeet al., 2022). In this regard, it should be said that a brand marketing company can develop more successfully when Kit Kat pays more attention to people’s wishes (Nelson and Smith, 2021). A suitable recommendation would be to create surveys regarding the desired future variations of the company’s products.
As Nestlé moves towards globalization, it becomes necessary for them to accept some organizational changes. For example, expanding presence in some markets results from the adopted global policy (Djarum et al., 2019). In addition, organizational changes are effective in the field of product localization. As can be seen from the analysis, the organization adjusts marketing and the products themselves for each country, which contributes to globalization.
The organization needs integrated marketing communications. This can be beneficial by developing different marketing channels that must cooperate to achieve a better overall market position (Nelson and Smith, 2021). This way, the company can make better representations and reach the target audience more effectively. Various marketing channels are necessary to coordinate and exchange essential data from different services. Each recommendation can significantly strengthen the company’s position when used together.
Reference List
Budeva, G.D., and Mullen, R. M. (2014). International market segmentation: Economics, national culture and time. European Journal of Marketing, 48(7/8), 1209-1238. Web.
Djarum, S. V., Kee, D. M. H., Azmin, N. N. B., Isdianto, R. D., Elghoul, A. O., and Pandit, S. S. (2019). The challenges and the opportunities of introducing organic KitKat chocolate by Nestle (A study case: NESTLE). Journal of the Community Development in Asia (JCDA), 2(3), 59-67. Web.
Hollensen, S. (2020). Global marketing (8th ed.). Pearson.
Jackson, T. (2020). The legacy of Geert Hofstede. International Journal of Cross Cultural Management, 20(1), 3-6. Web.
Keegan, W. J., and Green, M. C. (2019). Global marketing (10th, global ed.). Pearson.
Nelson, S., and Smith, T. (2021). A Comparative Analysis of Japanese, Mexican and English Marketing Practices: Examining the Influence of Culture on Marketing. Journal of Student Research, 10(3). Web.
Paul, J. (2019). Marketing in emerging markets: A review, theoretical synthesis and extension. International Journal of Emerging Markets, 15(3), 446-468. Web.
Puthusserry, P. N., Khan, Z., and Rodgers, P. (2018). International new ventures market expansion through collaborative entry modes. International Marketing Review, 35(6), 890-913. Web.
Rosa-Salas, M., Turner, B., and Uduehi, E. (2021). Studying Race in Marketing: Making Race More Than a Variable We Collect. ACR North American Advances. Web.
Sakarya, S., Eckman, M., and Hyllegard, K. H. (2007). Market selection for international expansion: Assessing opportunities in emerging markets. International Marketing Review, 24(2), 208-238. Web.
Shah, H., Chowdhury, K., and Singh, R. (2021). Importance of Digital Platforms in Indian Advertising: A Case Study Of Nestle Kitkat. Webology, 18(2), 2177-2183. Web.
Touré‐Tillery, M., Steinmetz, J., and DiCosola, B. (2022). Feeling judged? How the presence of outgroup members promotes healthier food choices. Psychology & Marketing, 39(8), 1504-1510. Web.
Tze, X. C., Zhe, X. C., Sin, C. C., and Shieh, H. C. (2022). A Study on Marketing Strategy of Nestle in Asia. Advances in Global Economics and Business Journal, 3(1), 1-14. Web.