A few weeks after I arrived to France, I was surprised to find out that Kit Kat was not a Japanese product and how different it is between the Japanese market and worldwide market. Although Kit Kat is originally a British product, it has achieved big success in the souvenir market of Japan. Since 2010, sales in Japan have increased by about 50 percent.
Differentiation is the key for being successful in a foreign country. I summarized 3 main differentiations Kit Kat has made in the Japanese Market.
1.Positioning and campaign
When Kit Kat first arrived in Japan, it already achieved a small success due to the coincidental pronunciation with Kit Kat which approximates to "kitto katsu" - a Japanese expression meaning surely win. The product has become especially popular as a gift among students before exams.
Kit Kat has captured the chance and achieved the first major success by creating award-winning Kit Mail campaign.
It’s a specially designed pack that family and friends can buy from post offices, personalize with hand written good will and post to students who face enormous pressure during university entrance exams.
2.Sweetness and size
Since chocolate is much sweeter than traditional Japanese confectionery, most Japanese people are more sensitive to sweetness. That’s why Kit Kat is less sweet and smaller in size in Japan.
3.Over 300 limited-edition flavors
There have been almost 400 limited-edition seasonal and regional flavors of Kit Kats produced in Japan since 2000. Lots of them are available only in particular regions and have close association with local food or culture, which tends to have a sense of rareness, symbolism and collectability. For example, bars flavored like Okinawan sweet potatoes, the starchy, deep purple Japanese tubers, are only available in Kyushu and Okinawa.
The company believes the limited-edition seasonal models create a "scarcity and rarity of value" for customers. That’s why the flavors available in Japan are also popular for foreigners.
Differentiation required to establish a differentiated content in price, size, package, position and products. The Japan Chocolate market is competitive. Therefore, innovation in product flavor, introducing small pack size chocolates, are expected to meet the market demand and the key factor for Kit Kat’s success.
Cited Sources:
1.Demetriou, Danielle. “How the KitKat Became a Phenomenon in Japan.” The Telegraph, Telegraph Media Group, 12 Dec. 2015, www.telegraph.co.uk/food-and-drink/features/how-the-kitkat-became-a-phenomenon-in-japan/.
2.Demetriou, Danielle. “Japan Chocolate Market - Segmented by Product Type and Distribution Channel – Growth, Trends, and Forecast (2018 - 2023).” Analysis of UAE Telecom Market Segmented by Major Players, Market Share, Revenues and Regulations., 12 Dec. 2015, 6:00, www.mordorintelligence.com/industry-reports/japan-chocolate-market.