Post on 14-Jan-2016
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Kao (Taiwan)Kao (Taiwan)
Kao Glocalization Kao Glocalization in Taiwanin Taiwan
Nov. 21, 2002Nov. 21, 2002
Toshiaki NaitoToshiaki NaitoKao (Taiwan) CorporationKao (Taiwan) Corporation
Kao (Taiwan)Kao (Taiwan)
Preface
Kao Overseas Business and
Kao Taiwan’s Positioning
Kao (Taiwan)Kao (Taiwan)
ChinaChinaTaiwanTaiwanHong KongHong KongPhilippinesPhilippinesIndonesiaIndonesiaAustraliaAustralia
ThailandThailandMalaysiaMalaysiaSingaporeSingaporeVietnamVietnam
KAO(Taiwan) in KAO Worldwide
Sales120 billion yen
Sales120 billion yen Sales
650 billion yen
Sales650 billion yen
Sales 95 billion yen
Sales 95 billion yen
Fiscal year:2001
AsiaJapan
EU & US
Outside Japan
Kao (Taiwan)Kao (Taiwan)
•Established in 1966
•Capital 597(mil. NT$)
•Employees 570
Company Sales : 6,500 million NT$Business Operation
Household Domestics : 4,400 million NT$Household Products : 200 SKU
*Net sales baseFiscal year: Jan. to Dec. 2000
KAO(Taiwan) Outlook
------- 2001 --------
Cosmetics6%
Household75%
Chemical19%
Kao (Taiwan)Kao (Taiwan)
Products
SifoneSifoneBioreBiore
AttackAttack
Kao (Taiwan)Kao (Taiwan)
Key Players in Taiwan C&T Market
0
20
40
60
80
100
120
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Company A
KAO
Company B
(Billion NT$)
Data source: TOP5000 ranking in “The Largest Corporation In Taiwan”
Kao (Taiwan)Kao (Taiwan)
Kao’s Glocalization
• Merits on Glocalization• Precondition of Glocalization• Glocalization by Marketing Mix• Obstacles
Kao (Taiwan)Kao (Taiwan)
Why we need Global Brands?
• Business Scale efficient
• Return from Investment speedy
• Competitiveness high
• Brand Management simple
• Best Practice Sharing effective
Kao (Taiwan)Kao (Taiwan)
What are Global Brands?
• Deliver benefits to consumers with the same positioning and image
• Balanced synergistic merits in global with competitive advantages in local
• Be managed through effective global management system and organization
Kao (Taiwan)Kao (Taiwan)
Marketing Mix
NamingNaming
ProductsProducts
PositioningPositioning
PromotionPromotion
AdsAds
PackagePackage
Stick to GlobalizationGlobalization as possible
Take 3 alternatives Globalization as possible
Localization
Localization
Products: assortment and/or formulation
Kao (Taiwan)Kao (Taiwan)
What are obstacles to Global Brands?
• Not Invented Here
• Mindset of Marketers
Kao (Taiwan)Kao (Taiwan)
Case Study
• “Attack” Laundry Detergent
• “Biore” Make-up Remover Series
• “Sifone” Hair Styling Agent Series
Kao (Taiwan)Kao (Taiwan)
1Case Study : Attack
Kao (Taiwan)Kao (Taiwan)
Market Segment Trends
1987 1988 1991 1993 1995 1997 2002Kao Attack product liquid
0%
20%
40%
60%
80%
100%
120%
1987 1988 1991 1993 1995 1997 2002
Conventional Concentrated Liquid
Kao (Taiwan)Kao (Taiwan)
Market Share of Attack in Concentrated Detergents
1988 ~ 1997 ~ 2002Regular launch Color launch The No.1 position
0%
10%
20%
30%
40%
50%
60%
70%
1988 1997 2002
Regular Color Total
60%
Kao (Taiwan)Kao (Taiwan)
Glocalization of Attack on MK-mix
Taiwan Japan
Positioning
Formulation
Package
Ads
Promotion
Concentrated powder detergent ○○
一匙霊
△△ ~○ ~○
△△
Naming
Remark
アタック
○○
○○
Bio-lite
△△
○○: almost the same : almost the same : Different△: Different△
Kao (Taiwan)Kao (Taiwan)
- To educate consumers it’s “concentrated” powder and change their behavior - In order to communicate with local consumers, create a new Chinese name is necessary under the brand name”Attack”
- 一匙 means “ one spoon”
- 靈 means “ effective “
Naming of “Attack”
Kao (Taiwan)Kao (Taiwan)
‘Attack’ Global Brand Communication
Cleansingmechanism
Cleansingmechanism End BenefitsEnd Benefits MessengerMessenger
Clean up clothesat fiber depth
Clean shirts<< Choice criteriaChoice criteria >>・・ High awarenessHigh awareness・・ High popularityHigh popularity・・ Good imageGood image
Unification of visual tools
Sharing the Brand Vision (Core Value) Sharing the Brand Vision (Core Value)
Kao (Taiwan)Kao (Taiwan)
Promotion strategy
The difference between Taiwan and Japan
1. Trade system
Japan distribute to stores directly, Taiwan has the
wholesaler distributor to push the sales to stores for Kao
2.Culture / Consumer custom:
Gift of Non-food is one custom in Japan. In Taiwan,food
gift is more usual than non-food consumption products
Kao (Taiwan)Kao (Taiwan)
Local consumers’ needs Attack color type
•Consumers own more color clothes
•So, they have the needs to
prevent dark and discoloration
•No product sold can satisfy this
needs at that time
•In the beginning,Japan suggest
to educate consumers use “wide bleach” to solve this problem
•But,the use rate in TW is low
•So,to develop a new product is
necessary
•The use intention is 81%
when show consumers the
concept of color type product
•Consumers can realize the benefit
by use test
Consumers’ U&A*Survey ---Needs
Consumers’ U&A*Survey ---Needs DevelopmentDevelopmentDirection StudyDirection Study
* U&A: Usage and Attitude
Kao (Taiwan)Kao (Taiwan)
Attack Color type development background
Brand Vision
Local Consumers’ need
Product line extension
Regular Color
Launch time 1988 1997
Core value
Symbol
Base of authority Bio-lite Acti-techs
Functional benefit Whitening clean Brightening clean
Positioning Regular Value-added
○○ ○○
Kao (Taiwan)Kao (Taiwan)
2:Case Study Biore
Kao (Taiwan)Kao (Taiwan)
Biore Make-up Remover
• Japan
• Taiwan
Kao (Taiwan)Kao (Taiwan)
Biore Make-up Remover
1-233 variantsAssortment
BioreBioreBioreNaming (English)
Basically sameFormula
○○○Positioning
Individual, but use others’ conceptPromotion
Individual, but use others’ conceptAds
2 different ones
3 under 1 series
3 different ones
Package
OthersTaiwanJapan
Kao (Taiwan)Kao (Taiwan)
Biore Make-up Remover• To globalize
– Same positioning allows • to select or develop suitable products to
consumer needs quickly.• to make the use of KSF* in other countries.
• To localize– Taiwan market was not mature/ big to
invest one by one.– Synergistic management allow us to build
the platform to continue investing.
* KSF: Key Success Factors
Kao (Taiwan)Kao (Taiwan)
Biore Make-up Remover• Localized Marketing Mix
– Package• Unify 3 products under MUR* series.
– Ads• Maximize synergy effects between
products referring to Japan’s effective communication concept.
– Promotion• Unified store display and consumer
promotion to maximize synergy effects.* MUR: Make UP Remover
Kao (Taiwan)Kao (Taiwan)
Biore Make-up Remover• Performance in the market
00' 01' Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02
BIORE 51.2 57.8 49.1 49.7 54.1 58.1 52.0 49.9 49.8J&J pH5.5 23.0 29.3 18.4 15.9 14.6 15.2 15.1 18.0 15.8POND'S 10.2 12.1 7.4 7.4 5.5 5.9 5.7 6.6 8.3Olay 11.2 0.0 18.4 17.9 15.5 13.2 15.5 12.3 10.6
-No. 1 share MUR brand in market
-Good store execution in shop front
Kao (Taiwan)Kao (Taiwan)
3:Case Study Sifone
Kao (Taiwan)Kao (Taiwan)
Sifone Hair Styling Agent
• Japan
• Taiwan
Kao (Taiwan)Kao (Taiwan)
Sifone Hair Styling Agent
Japan Taiwan Others
Positioning
○ ○ ○
Naming (English)
Liese Sifone Sifone
Assortment
15 8 2-4
Formula Basically same
Package Liese-like Sifone-like
Sifone-Like
Ads Individual, but use others’ concept
Promotion
Individual, but use others’ concept
Kao (Taiwan)Kao (Taiwan)
Sifone Hair Styling Agent
• To globalize– Same positioning allow
• to select or develop suitable products to consumer needs quickly based on same R&D resources.
• to make the use of KSF* in other countries.
• To localize– Leverage “Sifone” brand assets
already developed in Taiwan consumer’s mind
– Answer to Taiwan consumer’s needs or hair trend appropriately. * KSF: Key Success Factors
Kao (Taiwan)Kao (Taiwan)
Sifone Hair Styling Agent• Localized Marketing Mix
– Naming• Utilize “Sifone” instead of “Liese” used in Japan.
– Product Assortment• Select or develop products according to Taiwan con
sumers needs.– Package
• Leverage “Sifone” brand image.– Ads
• Build “Sifone” brand image referring to Japan’s successful communication.
– Promotion• Display with “Sifone” shampoo and conditioner.
Kao (Taiwan)Kao (Taiwan)
Sifone Hair Styling Agent
• Performance in the market•Leading position in Taiwan market
Market Share :28.2% (TN SOFRES 2002 YTD)
SIFONE STYLING SHARE00' 01'
Totally Totally Q1 Q2 Q317.3 23.7 19.2 24.3 28.2
02'
Kao (Taiwan)Kao (Taiwan)
“Glocalization” has been defined as developing global brands. In the process to develop global brands, we consider opposing viewpoints when it comes to marketing mix and the effects of deviating from the predetermined company standpoint.
Conclusions