OAU Marketing Strategy for Kenko Case Study HelloThe attached file consists of 3 pages; I need a summary of the attached analysis I’ll use it for a discuss
OAU Marketing Strategy for Kenko Case Study HelloThe attached file consists of 3 pages; I need a summary of the attached analysis I’ll use it for a discussion; very short introduction about the company, main problem with mentioning the reason for the problems, marketing related issue(s) facing the company presented in the case. Give examples from the case to support your identification of the issues.Strategy to resolve brand related issue, explain your solution using examples from the case. Executive Summary
Kenko is an American subsidiary of one of Japans largest rice cake producers with
ongoing plans to penetrate the American market. The company hopes to achieve increased sales
and recognition in this market like companies such as Kikkoman did with their products. Riku
Nakamura relocated from Tokyo to the United States to oversee the launch of the company’s first
foreign subsidiary. The goal was to ensure that the products go beyond the Asian supermarkets
and grocery stores in the United States and become one of the most significant products in the
snack aisles of the American food outlets and stores. While the company worked hard to achieve
this goal, its efforts were yet to yield results. It experienced slow growth and a very low sales
volume in American supermarkets. Besides, the company only concentrated on selling the product
in supermarkets instead of diversifying its marketing strategy. The American consumers also were
unaware of the brand since the brand message only appealed to Asian consumers. To this end,
Kenko needs to adopt a new product strategy that would help in increasing brand awareness and
facilitating an increase in sales in the American market. The best way to this while maintaining
brand identity would be by selling in departmental stores, nontraditional food stores, and grocery
stores, as well as through an acquisition.
Main Problem and Marketing-Related Issues
Kenko is a top-selling rice crackers company in the Japanese industry with a significant
market share in the Japanese market. Nevertheless, the company’s international business,
particularly in the United States market, has experienced slow growth, prompting the formulation
of a new strategy to penetrate this market. While the companys products have been in the United
States market for some time, it has experience low market expectations as the products have only
been sold under the segments of the Asian food in supermarkets. The United States consumers
prefer healthy and gluten-free products such as Kenko’s rice crackers. Nevertheless, one of the
significant issues is that the company only concentrated on selling its products in supermarkets
without first making an impression to the consumers; thus, most of American consumers are
unaware of the product as well as its benefits. Despite the US markets recognition of Japanese
foods, Kenkos crackers were among the least popular, resulting in low sales.
The companys packaging was also a significant issue as it was not attractive to the
American market. In answering Rikus question on why the rice crackers could not be displayed
with other popular snacks, Dave Knight noted that the packaging, the flavors, as well as the brand
message, were Japanese. He said that while this was a great idea, the niche market for the product
was in the Asian section since it would cause confusion if it was in both places. Therefore, it is
evident that Kenkos taglines and brand messages were unattractive to the American market since
they were Japanese. Lastly, Kenko failed to do any customer orientation in this market as its
products were only distributed through supermarkets. The company did not make efforts to
advertise through television or print media, thus consumers were unaware of the product.
Therefore, marketing education and brand awareness were low because the company lacked a
marketing strategy to diversify the product.
Comprehensive Product Strategy to Resolve Brand Related Issue
If Kenko is focused on becoming a successful national brand in the United States, the
company needs to rethink its strategy and expand its divisions marketing efforts rather than opting
for the private label deal. While the private label deal would be profitable, Kenko will face a
significant challenge when it decides to launch its own branded products in the future. While
Kenko needs to make American consumers understand its brand, the company should not change
its branding because it enhances its authenticity, differentiates it from other brands, and gives it a
competitive advantage as well. Therefore, the first step that the company should take is to diversify
its product marketing. In this regard, instead of focusing on supermarkets alone, Kenko should
focus on departmental stores and nontraditional food stores with a mainstream following. The
company should also push for the product to be introduced as an option under rice cakes in grocery
stores. This approach will help the store executives and consumers to understand the product
better.
Lastly, instead of a private label deal, the company needs to consider an acquisition. Kenko
needs to identify a US-based company that makes gluten-free snacks to be able to keep its recipes
under its brand and preserve the uniqueness that gives it a competitive advantage, among other
snacks. An acquisition will allow Kenko to learn more about the United States bard market, thus
help the company to build its brand effectively in this significant market. Moreover, the company
will be able to understand consumer needs and reach all the potential customers as an acquisition
would make the process easier and manageable. To this end, Riku needs to push for the Kenko
rice crackers in the United States market even if it means that he would not be the one to spearhead
the effort.
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