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Kikkoman Marketing Strategy

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Submitted By jyaeng
Words 499
Pages 2
DEPARTMENT OF MARKETING

term: SUMMER 2010

COURSE TITLE: MARKETING STRATEGY

DATE: 8/6/2010

KIKKOMAN

PROBLEM STATEMENT

KIKKOMAN IS FACED WITH A UNIQUE CHALLENGE THAT MANY OTHER CUSTOMERS WOULD NOT FACE – HOW TO TAKE A COMPANY THAT HAS BEEN AROUND FOR OVER 200 YEARS AND MAKE IT SUCCESSFUL IN THE FUTURE WHEN THE DEMAND FOR ITS CORE PRODUCT IS DECREASING.

FACTS

• KIKKOMAN WAS ONE OF THE FIRST JAPANESE COMPANIES TO BUILD AND OPERATE MANUFACTURING PLANTS IN THE UNITED STATES.
• THE CEO FELT THE COMPANY HAD LOST ITS FIGHTING SPIRIT DUE TO THE LACK OF CHALLENGERS IN THEIR MARKET.
• THE CEO WENT TO AN AMERICAN SCHOOL FOR HIS MBA AND HAD FIRST-HAND KNOWLEDGE OF AMERICAN SOCIETY AND CULTURE.
• KIKKOMAN BREWED SOY SAUCE IN THE TRADITIONAL MANNER, WHICH WAS A LONG PROCESS THAT COULD TAKE SEVERAL MONTHS.
• THE COMPANY ORIGINATED WITH SEVERAL FAMILIES IN THE SEVENTEENTH CENTURY.

PERTINENT FACTS

• KIKKOMAN WAS THE WORLD’S LARGEST PRODUCER OF SOY SAUCE.
• THE COMPANY ACHIEVED GREAT SUCCESS IN THE MARKET BY BROADENING ITS CUSTOMER BASE TO INCLUDE OTHER COUNTRIES AFTER WORLD WAR II – A DIFFICULT TIME TO BE A JAPANESE COMPANY.
• KIKKOMAN HAD ALMOST 27% OF THE MARKET SHARE IN JAPAN AND 55% MARKET SHARE IN THE UNITED STATES.
• SOY SAUCE REPRESENTED 39% OF THE TOTAL SALES, BUT 66% OF ITS REVENUE.
• ITS INTERNATIONAL PRESENCE ACCOUNTED FOR 34% OF THE TOTAL REVENUE.

ALTERNATIVE SOLUTIONS

RESEARCH OTHER INTERNATIONAL AREAS THAT THE KIKKOMAN BRAND COULD BE WELL RECEIVED, OR OTHER AREAS WITH AMERICAN PRESENCE. SOY SAUCE BECAME POPULAR BECAUSE OF ARMY PERSONNEL IN WORLD WAR II BROUGHT BACK THE DEMAND TO THE UNITED STATES, THE DEMAND MAY HAVE BEEN ABLE TO BE REPLICATED IN OTHER COUNTRIES.

EXPLORE FURTHER PARTNERSHIPS WITH “WESTERN CULTURE” FOOD LEADERS. ALREADY KIKKOMAN HAD A PRESENCE IN JAPAN WITH PARTNERSHIPS FROM COCA-COLA

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