Pest Analysis
• Political Analysis :
Political decisions can affect Kit Kat. These can be either advantages or disadvantages. If the government increases taxes and if Kit Kat tries to recover the tax money through customers then there will be a fall in the number of consumers. Sales will also decrease and Kit Kat will have its stock pilled-up. However , if taxes reduce, the likelihood is that the consumers will buy more.
• Other government laws can also cut down Kit Kat’s income. For instance, if there comes out a law where workers are allowed to work only from 9 am to 5 pm, factory hours would be cut, this will reduce production rate of Kit Kat. This can also lead to speeding up the production rate while compromising on the quality.
Economical Analysis
• The interest rates can have an effect on Kit Kat. If interest rates go high then Kit Kat would not want to increase its price. Nestle is financially well established so to expand Kit Kat there is no need to borrow, but if they do so then it will increase price of Kit Kat. Again if consumers the selves are under loam pressures, they would again have less disposable income to buy Kit Kat.
• If the wages are brought down, this would mean more money for Kit Kat but would also result in low sales to the consumers.
Social Analysis
• There has been a change of trend snacking. There has been an increase in the number of people eating “on-the-go” i.e., vending machines.
• People are going more health conscious and end up reading the ingredients.
Technological Analysis
• Better equipment is required for producing Kit Kat at a faster rate, if production turns out to be faster there will never be a shortage in the market. It will also increase sales.
• These days, the price of machinery is on a hike, if Kit Kat plans to invest in new machinery for faster production then it might have to cut down on its labors and turn into a capital intensive company in terms of production.