Marketing from Europe to Japan

Increasing the Effectiveness of Irish Companies in the Japanese Market.

AS 5011. Thomas Nelan 23 July, 2015.

Presentation Overview

• Demographics & Consumer Behaviour;• Marketing Mix currently in use:– Product (tailored to the Japanese Market?);– Price (Harvey Norman or Harvey Nichols?);– Place (S.E.Z.s & Location, Location, Location);– Promotion (Market and Cultural Integration).

• Summary.

Japanese Demographics and Consumer Behaviour

• Single and childless for longer;• Smaller family sizes;• Population: large, densely packed, ageing;• Internet usage: 90% of Japanese aged 10- 50 use

the internet;• Responsible consumption (e.g. fair trade,

recycled, socially responsible brands in demand);• Quality preference among consumers;

Marketing Mix in Tune with Japanese Market?

Product Price

Place

Promotion

Marketing Mix

Product

• Smaller family size: 5th lowest birth rate of OECD countries.

Product

• Tailored to Smaller Family Size?• Quality Conscious Consumers.

Product

• Product designed with Irish or Japanese consumers in mind?

Product

• Product designed with Irish or Japanese consumers in mind?

Top Heavy

Unfamiliar Design

Slim Narrow Base

Product

• Product designed with Irish or Japanese consumers in mind?

Product

• Product designed with Irish or Japanese consumers in mind?

Simple “wabi-sabi”

design.

Sturdy

base

Price

• Unlike Ireland:Quality Considerations Outweigh Price.

• “Cost should not be the best differentiation used to approach Japan”._ Akiko Sato, Enterprise Ireland.

Place

• Online Marketplaces:– Rakuten (20.4%);Amazon (19.4%); Yahoo! (6.1%);

• Website:www.egan-engraving.com Vs www.e-gan.com– Optimised for Yahoo! rather than Google searches.

• Online to Offline Retail Growth:– Rakuten (#1 Online Retailer)– Oisix (Online Vegetable Delivery Company).

Location Location Location:

• Population Tokyo: 13,000,000– Include immediately surrounding areas 37,800,000

World’s Largest Megacity.

Location Location Location:

– Administrative Support;– Business Networking Support;– Specialist Introductions;– Consultancy Services;– “Special Zone for Asian Headquarters”.

– Fast track immigration processing & patent application reviews;– Generous Tax Treatment and Exemptions;– Financial Support e.g.

» Subsidies,» Low-Interest Loans,» ½ Price Office Space.

Location Location Location:5 Other Regional Economic Zones.

Osaka (Medical Devices &

Healthcare).

Fukuoka(Employer-Friendly Labour Reforms).

Okinawa (International

Tourism).

Niigata (Agriculture).

Yabu (Agriculture)

Location Location Location:

Invest Japan Business Support Centre:• Free Consultation with Industry Experts;• Administrative Procedure Assistance;• Free Office Space & Equipment (up to 50 working days);• Access to JETRO Business Library.

Promotion- Trust Marks

Promotion- Social Media

1. : 65.4%2. : 42.0%3. : 37.8%4. : 19.2%5. : 16.4%6. : 16.4%7. : 13.3%

PromotionLearn from Example

George Clooney

- Kirin Beer

PromotionLearn from Example

Ichiro Suzuki

-Kirin Beer

PromotionLearn from Example

Boy bandOne Direction

- Mobile Phones

PromotionLearn from Example

Boy band “Smap”

-Mobile Phones

PromotionLearn from Example

Bruce Willis

-Cars

PromotionLearn from Example

Kei Nishikori

-Jaguar

Integration-Turning Japanese

Integration-Turning Japanese

Integration-Turning Japanese

To Conclude

1. Step into the shoes of your target market:– Examine Consumer Behaviour & Demographics.

2. Consider your Japan Marketing Mix:– Product, Price, Place, Promotion.– Ju nin to iro (“10 people 10 colours” i.e. everyone is different).

3. Consider advantages of relocation:– Special Economic Zones, tax breaks etc.

4. When in Rome… (or Tokyo):– Consider advertising as the Japanese do, by example;– Mascot.

End

Questions?