Stage 1 - Segmentation
After doing considerable research, our team has calculated that Kit Kat’s NOPAT in 2011 was S$810,000. Though Kit Kat’s is targeting every age segment in the community, we have confirmed that the largest segments of Kit Kat buyers are consumers of the ages 35-54, who have children aged 18 and below. As a result, we have decided to put this segment (age 35-54) as the top buyer in our analysis with 41.7% of the total market segmentation. In addition, our analysis is also influenced by the demographic population data of Singapore – currently most of the local citizens are from age 35 to 54. This creates a huge potential base of customers who have grown up eating Kit Kat.
The next market segmentations, aged 12-17 and aged 18-24, are derived from the results of our quantitative study (Diary of Chocolate Experience). It indicates that Kit Kat brand has high familiarity with teenagers and young adults in Singapore, due to the fun and quirky nature of the brand. This is reflected from their funny TV commercials and their online marketing strategy. Furthermore, we believe that teenagers and tertiary students/young adults are increasingly independent in deciding which products to buy. As a result, age 12-17 and age 18-24 segments are put in the second and third category (18.6% and 18% of total segmentation, respectively).
According to our perception, Kit Kat is not considered as a premium confectionery brand. For young professionals (aged 25-34), we concluded that with increased earnings, they would prefer to have variety in chocolates and purchase premium brands. Hence, there is a higher tendency for them to try chocolates or confectioneries with more sophisticated brand characteristics, such as Godiva or Royce. This is the reason why we put the segment aged 25-34 as our fourth segment (12.7%).
Along the same line, senior citizens (age 55 and above) are not the main target for Kit Kat brand in Singapore, due to its brand characteristics and persona. Thus, this category is the smallest segment (only 9%).
The next market segmentations, aged 12-17 and aged 18-24, are derived from the results of our quantitative study (Diary of Chocolate Experience). It indicates that Kit Kat brand has high familiarity with teenagers and young adults in Singapore, due to the fun and quirky nature of the brand. This is reflected from their funny TV commercials and their online marketing strategy. Furthermore, we believe that teenagers and tertiary students/young adults are increasingly independent in deciding which products to buy. As a result, age 12-17 and age 18-24 segments are put in the second and third category (18.6% and 18% of total segmentation, respectively).
According to our perception, Kit Kat is not considered as a premium confectionery brand. For young professionals (aged 25-34), we concluded that with increased earnings, they would prefer to have variety in chocolates and purchase premium brands. Hence, there is a higher tendency for them to try chocolates or confectioneries with more sophisticated brand characteristics, such as Godiva or Royce. This is the reason why we put the segment aged 25-34 as our fourth segment (12.7%).
Along the same line, senior citizens (age 55 and above) are not the main target for Kit Kat brand in Singapore, due to its brand characteristics and persona. Thus, this category is the smallest segment (only 9%).