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March 28, 2018

5 Marketing Success Stories from Japan | EYE ON ASIA 

5 marketing success stories in japanEven when the data says new products fail 80% of the time, these companies, international and domestic, have found huge success in Japan. Learn about what makes them the special 20%.

 

Success Story 1: Starbucks

Starbucks and Nestle’s KitKat are two brands that have been particularly successful due to their seasonal limited edition products. Starbucks came to Japan in 1995, and has made considerable efforts in localizing the brand to adapt to local taste.

 

Where the Market Research Came in:

In setting their sites on Japan, it is most likely that Starbucks researched well into popular flavors as well as having an understanding of the "Gentei" (limited edition) culture in Japan.

 

Every season, Starbucks Japan releases a special seasonal menu along with tumblers and mugs. However, these seasonal drinks are not only fleeting, but also different than what was released in the same seasons the year before.

 

For example, the iconic Sakura latte that is released every February had a different taste and appearance in 2016 than the 2015 version. This also applies to the mugs and tumblers as well. In addition, the company never restocks the limited edition goods, creating a scarcity, this in-turn creates lots of buzz around the company.

 

Aside from the globally recognized "Sakura" limited edition items, Starbucks has also done a considerable job in localizing their menu for the seasons — a favorite theme among consumers. Along with these seasonal drinks, Starbucks has also expanded their reach to convenience stores, selling limited edition drinks at cheaper prices.

 

marketing in japan starbucks sakura merchandise

 

Success Story 2: KitKat

As discussed in our Japan's 4 Seasons Marketing article, the chocolate wafer snack has become a favorite among locals due to KitKat's great marketing and localization strategies. As mentioned in the article, there are over 300 limited edition flavors.

 

Similar to Starbucks, KitKat has also utilized the seasonal flavor strategy, but it is not their only strategy. In addition to releasing seasonal flavors, KitKat has also managed to release a different flavor for every prefecture.

 

Japan consists of 47 prefectures, each belonging to one of the 8 major regions. The eight major regions are as follows: Hokkaido, Tohoku, Kanto, Chubu, Kinki, Chugoku, Shikoku, and Kyushu-Okinawa. Each region is distinctive and each prefecture uses that to its advantage with fruits or foods the prefecture is known for, or even creating a mascot character to represent the prefecture. Regional products, like seasonal products, are only available in that particular region and can not be found outside of that region.

marketing in japan kitkat flavors

Thanks to these strategies, KitKat not only creates scarcity for their seasonal flavors, but also a feeling of exclusivity. Because of the collectible factor, many consumers will travel great distances just to get their hands on the special flavors sold only within the area.

Where the Market Research Came in:

KitKat has managed not only to use the seasons and limited edition culture of Japan to their advantage but also the language itself. KitKat most likely researched the best ways to market not just their products but their name to a Japanese population that places heavy care on language, names and the "Gentei" culture.

 

In addition to location limited items, KitKat Japan has also managed to produce a series that is a pun on their own name. During the Spring season, when many Japanese students are taking tests and entrance exams, KitKat releases a Spring KitKat with motivational messages on it like "You can do it!", "May your dreams come true" and "Believe in yourself". The reasoning behind this is that their name, when read in Japanese, is "Kitto Kyatto" which sounds like the phrase "you will surely pass/succeed".

 

Due to this, it has become a sort of "tradition" for parents, teachers and even students themselves to buy this particular KitKat series to give to students and those they want to encourage and support.

 

marketing in japan kitkat sakura

 

Success Story 3: P&G

One of the most recognizable odor-eliminating products for Japanese consumers is Febreze from P&G. The global company first entered Japan in 1973 after acquiring a Japanese home goods company and has since seen a lot of success in Japan due to their strong marketing strategies.

 

Where the Market Research Came in:

P&G's Febreze team did well to research about the pain points of Japanese consumers. They most likely found that Japanese consumers are very sensitive to smells and odors, especially for items that are hard to wash.

 

Febreze found fast success in Japan by marketing the odor eliminator as a solution to hard-to-wash items like sports wear and futon (bedding).

 

Since coming to Japan, P&G has done well to segment and target their consumers to provide a more targeted marketing approach.

 

marketing in japan febreze

 

Success Story 4: "Kumamon"

Kumamoto prefecture has made international headlines with their mascot Kumamon. Interestingly, the prefecture is granting free licensing and allows usage rights to any individual or organization so long as the products promote goods and services from the Kumamoto prefecture. All products with Kumamon on it are perceived to be of Kumamoto Prefecture origin and therefore considered a regional limited product.

 

As a result, Kumamon can be found on a large number of products of Kumamoto origin. This became a key point in maximizing the exposure of Kumamon since anyone or any organization is able to use the character. It is estimated by the Bank of Japan that Kumamon has generated 132.2 Billion in JPY in revenue for the prefecture.

 

marketing in japan kumamon

 

Success Story 5: Glico

Another domestic success is Pocky, from Japanese company Glico. Though the snack is recognizable throughout Japan, the stick treat has also garnered a lot of attention overseas in many countries outside of Asia.

 

Through trial and error and lots of market research, Glico found a snack design that has lasted through the years. In addition to the snack's easy to consume design, Glico has also made great efforts for their marketing strategies.

 

A recent campaign is the collaboration with drink company Kirin. Through playful package design, Glico & Kirin created pair/matching packaging that had to be bought together in order to create a very cute scene. This collaboration became very popular and many young consumers spread the word via their personal social media.

 

marketing in japan pocky

Domestic Success Stories Continued

Another successful example is the Hokkaido prefecture’s ‘White Lover’ or ‘Shiroi Koibito’ which is a langue de chat with white chocolate inside. This product is a popular souvenir from Hokkaido prefecture and is only sold in Hokkaido and limited stores around Japan.

 

Other examples of popular regional products include Tokyo’s Tokyo Banana, Toyama’s Black Ramen, Kyoto’s Yatsuhashi, and Chinsuko from Okinawa. All mentioned products can not be found outside of the region and selected stores that specifically carry prefecture goods.

In Closing

The land of the rising sun can be difficult to navigate, especially with high expectations and strict regulations. Companies looking to enter this highly competitive market should carefully segment and target consumers in order to find success.

 

 

We hope this was an educational and interesting read for you!

If you would like to run an online or mobile study in Asia, don’t hesitate to contact us!

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