SWOT analysis of Kitkat

Kitkat is from the house of Nestle and is distinguished because it has one of the most iconic taglines ever – Have a break, have a Kitkat. It is also differentiated from the normal chocolate brands because it is more of a wafer chocolate and not chocolate bars. Thus, because of this differentiation, there have hardly been competitors in the Kitkat space, although there is too much competition for chocolate bars.

Here is the SWOT analysis of Kitkat

Strengths in the SWOT analysis of Kitkat

Unique offering – The number 1 strength of Kitkat is its unique offering – A chocolate covered wafer which is loved for its taste by people. Moreover, by this move, Kitkat has differentiated itself well from Dairy Milk and other such chocolate bars in the market.

Unique way to open the chocolate – There have been campaigns which have been dedicated to opening the wrapper of a Kitkat chocolate and the sweet sound it makes. We are doubtful any chocolate has ever done that. This again created an excellent brand retention in the minds of the consumer.

Massive distribution – You cannot survive in the FMCG market without having a massive distribution. Kitkat has production in 16 countries and it has distribution in more then 100 countries across the world. Because it comes from the house of Nestle, which also has Maggi and Nescafe, the distribution receives a boost because of the sales channel already present for the other brands.

Excellent tagline – Have a break, have a Kitkat is one of the most famous taglines a brand has ever had and Kitkat has owned it for several years. Kitkat even had a website where you could have a break by hitting mosquitoes and relaxing. Or it has images on its website which shows people just chilling out. The brand has revolved its marketing strategy around the tagline – That you should take regular breaks during the break, and you can have a Kitkat at such times.

Quality management – Hardly will you hear any complaints about the quality of Kitkat Chocolates. The quality management is superior and the same quality is distributed across the globe making people fall in love with the taste and consistency of Kitkat chocolate.

Deep pockets – Nestle has very deep pockets because of Nescafe and Maggi being cash cows in their arenas. You will not find a larger sold noodles brand then maggi and neither will there be a higher sold coffee brand. Thus, because of these deep pockets a lot of revenue is available for Kitkat to remain a star in the ever growing chocolate segment.

Weaknesses in the SWOT analysis of Kitkat

Unauthentic – A problem facing Kitkat is that in developing economies, there are many duplicate version of Kitkat available. Or there are regional players which come up with the wafer biscuit concept. Kitkat has to fight with such duplication vigorously.

Breakage – Another problem faced is during packaging. Because the biscuit is literally a wafer, it breaks easily and many times the consumer gets a broken piece of a wafer chocolate. This might result in the consumer getting frustrated.

Other then these, Kitkat is a very strong brand and is a loved brand across the globe so there are very few weaknesses in the SWOT analysis of Kitkat.

Opportunities in the SWOT analysis of Kitkat

Expansion – For any FMCG company, more expansion means more revenue which in turn means more profit. The same is applicable for Kitkat. The more it expands in developing economies the more better it would be for the brand.

Rural penetration – In India, China or other such Asian countries, rural penetration is yet to be achieved and that is where Kitkat can do wonders by using its deep pockets and establishing itself in rural areas.

Increasing chocolate contribution – Kitkat can launch more variants wherein the chocolate contribution to the wafer chocolate combination is even higher thereby giving a richer taste.

Threats in the SWOT analysis of Kitkat

Competition – Kitkat faces two kind of competition – Direct or indirect. Direct competition for Kitkat is very high from Dairy Milk. Dairy milk literally takes the first spot across the globe as the leader in chocolate market. As a result, kitkat always falls second and the gap between dairy milk and Kitkat is huge as well.

Health consciousness – As people are getting more health conscious, they are replacing chocolates with other healthier snacks and therefore this will slowly affect the revenue of the brand.

The above was the SWOT analysis of Kitkat. if you have any further points, please mention the same in the comments below.

Liked this post? Check out the complete series on SWOT