Wednesday, March 10, 2010

KitKat goes "Glocal"

Think global, act local. The “glocal” approach to marketing is an effective way for brands to stay focused on the consumer in worldwide markets.

KitKat, one of the world’s best-selling chocolate brands, launched several varieties of its famous crème-filled wafer bars in Japan, providing an excellent example of the glocal approach. Among them are KitKat Soybean, Wasabi and Iced Tea. KitKatlaunched 19 other flavors to connect with its Japanese audience. The company has also collaborated with the Japanese mail system to create packages of the chocolatesthat can be sent as postcards for special occasions. This caters to Japan’s gift-giving culture, called “Omiage,” where people are expected to bring back something unique for their friends and family when they travel.

How did KitKat effectively use the IMC approach to become a successful brand in the Japanese market?

First, KitKat conducted extensive consumer research to come up with flavors that satisfied the palate of Japanese consumers. With this valuable data in place, KitKat was able to uncover the needs of Japanese consumers and build relationships with them.

Second, these chocolate flavors are marketed only in the Japanese market. By practicing the IMC concept of sub-segmentation, KitKat was able to create contacts that allowed for specific sub-segments to connect with the brand in a more individualistic and idiosyncratic way.

However, many of the varieties sell only for a limited time in specific seasons. For example, the flavor Cherry Blossom is available only in spring. While this is a good strategy of manufacturing chocolates unique to a particular season, will it be successful in the long term? Only time will tell.