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caSe STudY: kiTkaT neSTlé JaPan
kiTkaT chocolatory: The ultimate Premiumization of a Popular brand
sPotlight oN braNDiNg
How Nestlé Japan took a well-known and well-loved chocolate brand and transformed it into an innovative and highly sought- after luxury product.
bY MaSafuMi iShibaShi
Globally popular KITKAT was orig- inally launched by Rowntree Mackin- tosh in the UK in
1935. Four decades later, KITKAT was launched in Japan in 1973 by
a local licensee. Since its launch, KITKAT quickly became a popular brand and then one of the licensee’s best-selling brands. A er the acqui- sition of the licenser in the UK in 1988 by Nestlé S.A., Nestlé Japan established a joint company with the local licensee in 1989.
As KITKAT was basically the
only brand for the new joint com- pany, the focus of the business was primarily to develop the brand. Without this focus, the local entity may not have survived. Conse- quently all e orts to expand its distribution nationally and seize promotional opportunities in the grocery channel were made. e sales volume grew rapidly and breakeven was achieved in three years a er establishing the joint venture.
e brand became a strong number two brand in the chocolate market by the end of last century.
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