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In 1964 Kao moved into Taiwan & Thailand to enter the market of Asia.
They make continues growth and profit, also there stock price has soared despite
the overall decline of the Japanese stock market.
Kao reached at this position with living idea that “satisfying consumer will bring
the company success”.
Kao done all this with simple formula of providing excellent value and
outstanding performance.
Kao’s four brands were listed in the top 20 of the “Brand Power Ranking” done
by “Nikkei Research Institute of Industry and Markets”.
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MISSION, VISION, VALUES & PRINCIPLES
Mission is "to strive for the wholehearted satisfaction and enrichment of the
lives of people globally" through the Company's core domains of
cleanliness, beauty, health and chemicals.
VISION
The vision of Kao Corporation is “To be closest to consumers or customers.”
VALUES
Kao Corporation accomplish the mission of the company by drawing
Creative and innovative strengths and integrity. Fully committed to the
mission, all members of Kao companies are working together as a single
corporate force to win the loyalty and trust of their customers.
PRINCIPLES
There are five basic Principles that Kao’s management uses as a guide in
devising business strategies in the industry. The principles are
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The principles of Kao Corporation are based on the premise of Koa’s slogan
and mission statement and its focus on the customers.
KAO’S SLOGAN
Living by the idea that satisfying consumers will bring the company success
in the market. Kao has lived by a simple slogan, “Create Products of superior
quality that provide consumers with wholehearted satisfaction”.
Kao is the largest household product manufacture in Japan and Boats over
550 different products worldwide, in 27 different countries. The Product
family includes
PRODUCT QUALITY
In addition to building a strong brand, Kao aim to satisfy its consumers all
around the world. As we know, Kao is dependent on repeat purchase and by
satisfying its consumer, Kao stands to benefit from repeat purchase. A
satisfied consumer would tell 3 people about his/her bad experience. In line
with Kao’s globalization goals, Kao Corporation ensures that the quality of
Kao products all around the world is of similar standards. This is so that
consumer can rely on Kao's products anywhere around the world.
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Strong Presence in Japanese Market
No.1 Brands Total 50 consumers
Products brands
Brands Category
Attack Laundry detergent
Emarl Laundry detergent for wool 62%
Humming Fabric softener
Haiter Bleach
Keeping Laundry starch
Magiclean Household cleaning detergent
Quickle Floor cleaning kits
White Bar soap Sales generated from
Bioré Facial cleanser No.1 brands (FY2002)
Biore U Body cleanser
Cape Hair splay
Liese Hair styling agents
Clear Clean Toothpaste
Econa Functional cooking oil Overall market
: : share
Of Kao in
consumer
Products category
26-28% (Data source: Kao)
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Research and
Development
Marketing
Production
Distribution
W.S.
Retailer
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RESEARCH AND DEVELOPMENT
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MARKETING
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PRODUCTION AND DISTRIBUTION
SALES
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Sales System for Consumer Products
1,000
Net Sales 140
900
Consumer Communications
Operating Income
800 120
700 NetitIncome
Kao regards as extremely important to take consumers’ “voices” seriously,
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reflect such “voices” in its corporate activities to facilitate the development and
600
improvement of its products, and to pursue “Yoki-Monozukuri” even more
rigorously. To embody this concept, the Kao Consumer Communication Center 80
500
functions to enable consumers to have direct contact with our company.
400 60
300
Roles of the Kao Consumer Communication Center 40
200
20
100
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0 0
81
83
84
86
92
93
95
98
01
02
Y80
82
85
87
88
89
90
91
94
96
97
99
00
03 F
“Accurate, Quick and Kind” Responses to Inquiries
The Kao Consumer Communication Center receives approximately 120,000
inquiries a year (in 2005). While most of these inquiries (about 80%) are via
phone, recent years have seen an increase in e-mail inquiries. Information
from consumers ranges widely from feedback on our products, to inquiries
about how to use our products, to comments. The center provides “accurate,
quick and kind” responses to these calls.
TCR ACTIVITIES
Competitive BRANDS
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Probably one of the greatest strength lies in its “brand Power”. According to
the Nikkei Research Institute of Industry and Markets brand power is
determined by a power ranking survey of consumers opinion This survey
takes a look that 170 leading brands in the Japanese market in 19 different
product categories and examines factors like brand recognition, perception
of the product’s quality, and feelings of loyalty to those brands.
According to this survey, Kao’s laundry in 1987, Attack had highest rating.
In addition to this, Kao had four brands that were listed in the top 20 of the
“Brand power ranking”. These products range from shampoos and
conditioners, dish washing detergents, sanitary napkins and cosmetics.
BUYER-SELLER RELATIONSHIP
RECOMMENDATION
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There are many Big Emerging markets, particular in the Asian region,
which are developing countries Kao can expand its operations into
these markets.
Kao has the capital and with its well-established brand name, the
company should be able to successfully penetrate these untapped
markets.
BIBLOGRAPHY
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• Website of Kao Corporation Ltd, Japan
• Notes of Prof. Pherwani
• Website of slash document BETA
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