KitKat was launched by Rowintree in 1935 as Chocolate Crisp. The market performance of Kitkat has been pretty optimistic. Since the Chocolate confectionery market is very concentrated, stable and competitive. KitKat has enough strength to take the opportunities to do better and stay higher in its industry. However, there are some company's weaknesses which would bring some threats for KitKat.
The SWOT analysis:
Its major and minor strengths of KitKat:
1.Strong team work.
2.The business is well-established; company has enough financial strength to keep up with the advertisement and promotions of the product. 3.Its company is working on the brand image and its brand will maintain clear position in order to prevent cannibalization. 4.The company has been positioned of number one brand in 1999 in UK. 5.The company believes long-term brand which means it will bring competitive advantage to KitKat over their competitors. 6.Widely known slogan.
7.Different from competitor's range of product, packaging and taste. 8.Implement different management strategy, which is open style, strong team work, which can lead to more productive and cost saving, and more creative ideas for improvement and development. 9.The productivity is quite fair and it is growing.
10.Sales volume is all-time high in the UK and the consumer values are very competitive. 11.Positive investment and adding new plants.
1.Still spending a big amount on the advertisement.
2.Don't have a strong special feature of its product.
3.Can not deliver better benefit than its competitors.
4.Sales profit was not very impressive.
5.They have "reverse marketing relationship" with their supply-packaging suppliers. 6.High operating cost and slight price increase in its product. 7.It positioning was not well distinguished inside the company, it is now positioned half way between snack and indulgency, but in consumer's eye, it is snacks oriented.