Kitkat-nestle – Research Paper Example

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Maybe Carrefour doesn’t provide more quantity of Kit Kat because the demand of the chocolate in this market is low compared to other supermarkets which is let us to see that is not a weakness but it is the way to not to lose because the consumers of Kit Kat in the Manar mall is less which lead Carrefour bring less of Kit Kat chocolate. Opportunities Kit Kat has the potential of expansion into smaller towns and other geographies. The existing market is not fully tapped with it and so the company can increase its presence by further penetration.

Chocolates are also considered as substitute of sweets. This is an opportunity to Kit Kat to make a chocolate packing that can match every occasion like religious occasion of Eid and birthdays. Threat Though economy is running at descent place but due to increase in costs, the prices of fuels and raw materials have increased which raises the manufacturing and packaging costs resulting in higher price for Kit Kat. Also the company may not be able to shift the whole burden of cost to its consumers.

Marketing environment of Kit Kat A new factory of Kit Kat was opened in Dubai in the year 2010 with an investment of $136 million. There were many factors contributing to such a large investment in Dubai. It includes the ability of attracting talent, overall political, economic and legal environment and the existing infrastructure. The shipping of products is easier across the region in terms of bringing in raw materials and exporting finished products. Other factors are also considered like schools for children of all ages, tax incentives and investment.

Dubai was selected to build a NIDO plant followed by a Kit Kat factory. The overall environment in United Arab Emirates has been very supportive and the employees of Nestle also enjoy very much living in United Arab Emirates. In terms of retail and distribution, the market of Middle East can be characterised compared to others. There are three trade clusters in Middle East. The first includes countries like UAE, Qatar, Oman, Bahrain where top retailers account for more than 50% of sales.

In this environment, the business is much more skewed towards hypermarkets, supermarkets and key accounts. In the second cluster, the top retailers make up less than 30% of business which includes countries like Saudi Arabia, Jordan and Lebanon. In the third cluster, the top retailers account for less than 5% of business. It includes countries like Yemen, Iraq, Iran, Palestine and Syria.

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