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Kao Glocalization in Taiwan Nov. 21, 2002 Toshiaki Naito Kao (Taiwan) Corporation

Kao Glocalization in Taiwan Nov. 21, 2002 Toshiaki Naito Kao (Taiwan) Corporation. Preface. Kao Overseas Business and Kao Taiwan’s Positioning. KAO(Taiwan) in KAO Worldwide. EU & US. Sales 120 billion yen. Sales 650 billion yen. Japan. Asia. Sales 95 billion yen.

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Kao Glocalization in Taiwan Nov. 21, 2002 Toshiaki Naito Kao (Taiwan) Corporation

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  1. Kao Glocalization in TaiwanNov. 21, 2002Toshiaki NaitoKao (Taiwan) Corporation

  2. Preface Kao Overseas Business and Kao Taiwan’s Positioning

  3. KAO(Taiwan) in KAO Worldwide EU & US Sales 120 billion yen Sales 650 billion yen Japan Asia Sales 95 billion yen Outside Japan Thailand Malaysia Singapore Vietnam China Taiwan Hong Kong Philippines Indonesia Australia Fiscal year:2001

  4. KAO(Taiwan) Outlook • 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 ------- 2001 -------- Fiscal year: Jan. to Dec. 2000 *Net sales base

  5. Products Biore Sifone Attack

  6. Key Players in Taiwan C&T Market (Billion NT$) Company A KAO Company B Data source: TOP5000 ranking in “The Largest Corporation In Taiwan”

  7. Kao’s Glocalization • Merits on Glocalization • Precondition of Glocalization • Glocalization by Marketing Mix • Obstacles

  8. Why we need Global Brands? • Business Scale efficient • Return from Investment speedy • Competitiveness high • Brand Management simple • Best Practice Sharing effective

  9. 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

  10. Marketing Mix Positioning Stick to Globalization Naming Globalization as possible Products Take 3 alternatives Package Globalization as possible Ads Localization Promotion Localization Products: assortment and/or formulation

  11. What are obstacles to Global Brands? • Not Invented Here • Mindset of Marketers

  12. Case Study • “Attack” Laundry Detergent • “Biore” Make-up Remover Series • “Sifone” Hair Styling Agent Series

  13. Case Study 1: Attack

  14. Market Segment Trends

  15. Market Share of Attack in Concentrated Detergents 60%

  16. Glocalization of Attack on MK-mix ○: almost the same △: Different Taiwan Japan Remark Positioning Concentrated powder detergent ○ 一匙霊 アタック Naming △ Bio-lite ○ Formulation ○ Package △～○ Ads △ Promotion

  17. Naming of “Attack” - 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 “

  18. ‘Attack’ Global Brand Communication Sharing the Brand Vision (Core Value) End Benefits Cleansing mechanism Messenger Clean up clothes at fiber depth Clean shirts ＜Choice criteria＞ ･High awareness ･High popularity ･Good image Unification of visual tools

  19. 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

  20. Local consumers’ needs Attack color type Consumers’ U&A* Survey ---Needs Direction Study Development • 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 * U&A: Usage and Attitude

  21. Attack Color type development background Brand Vision Local Consumers’ need Product line extension ○ ○

  22. Case Study 2: Biore

  23. Biore Make-up Remover • Japan • Taiwan

  24. Japan Taiwan Others Positioning ○ ○ ○ Naming (English) Biore Biore Biore Assortment 3 variants 3 1-2 Formula Basically same Package 3 different ones 3 under 1 series 2 different ones Ads Individual, but use others’ concept Promotion Individual, but use others’ concept Biore Make-up Remover

  25. 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

  26. 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

  27. Biore Make-up Remover • Performance in the market -No. 1 share MUR brand in market -Good store execution in shop front

  28. Case Study 3: Sifone

  29. Sifone Hair Styling Agent • Japan • Taiwan

  30. Sifone Hair Styling Agent

  31. 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

  32. 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 consumers needs. • Package • Leverage “Sifone” brand image. • Ads • Build “Sifone” brand image referring to Japan’s successful communication. • Promotion • Display with “Sifone” shampoo and conditioner.

  33. Sifone Hair Styling Agent • Performance in the market • Leading position in Taiwan market • Market Share :28.2% (TN SOFRES 2002 YTD)

  34. “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

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