Japan’s Market Insights & Building a Brand Image: Lessons learned from Kellogg’s and McDonald’s Ken G Kabira October 22, 2008 Invest Japan

Welcome to Chicago

Why are they successful in Japan?

The process to create and retain customers Marketing is: The process to create and retain customers It’s about building an enduring relationship with customers which produces profitable revenue 4 4

Enduring story always delivers an emotion What is a global brand? A brand is a story that travels with a place, product or service which creates and sustains a unique emotional attachment with its users Enduring story always delivers an emotion Story that can travel across borders

Based on enduring human truths that transcends the culture of origin Basis of a global brand Based on enduring human truths that transcends the culture of origin Aspire to have a simple, uniform brand positioning around the world Optimism, Family, Nutritious Breakfast Fun, Fast, Affordable

Advantage of a global brand It helps you be more competitive by having more sources of ideas focused on a single brand idea Idea Idea Idea Idea Brand Idea Idea Idea Idea Idea

Example

First thing to know about Japanese consumer: There is no such person 9 9

First thing to know about Japanese consumer: There is no such person

Reasons why Japanese eat (or don’t eat) cereal

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Positioning statement: Global Kellogg’s Frosted Flakes TARGET: BRAND: FRAME: DIFFERENCE: Kids Kellogg’s Frosted Flakes Is the ready-eat-to-eat breakfast cereal That helps you be successful Execution: US = overcoming a difficult task, non-competitive LA = individual success praised by the crowd Japan = individual success contributing to a team victory; praised by teammates

Positioning statement: Local Kellogg’s All-Bran - US TARGET: BRAND: FRAME: DIFFERENCE: Health conscious adults over 50 Kellogg’s All-Bran Is the ready-eat-to-eat breakfast cereal That helps you be healthy (e.g., reduces heart disease) Kellogg’s All-Bran - Japan TARGET: BRAND: FRAME: DIFFERENCE: Young Female suffering from constipation Kellogg’s All-Bran Is the ready-eat-to-eat breakfast cereal That helps you be regular

Let’s look at some advertising Happy Meal

USA “Stretch Screamers”

Japan “Ojarumaru”

Global brand management Based on enduring human values that transcends the culture of origin Aspire to have a simple, uniform brand positioning around the world Develop a clear system-wide understanding of the brand Have simple and coherent planning and communication platform for the global system Foster vigorous and constructive debate on strategic direction of the business within the platform Let the local team execute and activate in a culturally relevant way

Communication planning framework Business Case Communication Brief Creative 1 2 3 Why we need to take this business action Business objectives Business Issues Lessons from the past Budget and financial metrics Strategy and tactics Communication Objective Target Key Insights Key Message Media mix Why are we advertising Who are we talking to What do we know about them that will help us What is the one thought to communicate What are some possible ways to achieve this A “love letter” to inspire the creative team

Things to remember about Japan Rapidly aging population Implications are not clear nor obvious Very demanding and unforgiving Little things you do will matter more than the big things you say Notion of “health” Presence of positive more important than absence of negative Strong halo around the notion of “balance” Response to low price not always positive Must carefully manage the price, value, and experience equation Have a clear and relevant reason for low price In general, polite service is preferred to friendly There is a dark side to Japan

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