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Table of Contents

1. Introduction to Kao Bior Pore Pack .... 2. Question 1: Construct a SWOT Analysis for Kao Bior Pore Pack .. 2.1. Strengths ........... 2.2. Weaknesses .......... 2.3. Opportunities .......... 2.4. Threats ....... 3. Question 2: Show each of the 4Ps for the Kao Pore Pack. What marketing strategies would you suggest Kao to undertake to stay as on as a market leader in this market? ... 3.1. Product ............ 3.2. Price ........ 3.3. Promotion ............... 3.4. Place (Distribution) .......... 3.5. SWOT Analysis Strategies ........... 4. Question 3: What segment(s) should Kao target in the Asian market? . 4.1. Demographic Segmentation ............... 4.2. Socio-cultural Segmentation .... 5. Question 4: What specific factors should Kao consider if the company were to launch a specific pore pack for the Thai womens market? ... 5.1. Financial factors .................. 5.2. Segmentation Factors ............... 5.3. Brand Positioning Factors ........ 6. Question 5: Which motivational direction, positive or negative, will you use to increase the use of Kao pore pack among Thai women? .... 6.1. Psychogenic Needs as a Motivator ................ 6.2. Hedonic Needs as a Motivator ......... 6.3. Safety Needs as a Motivator ............ 7. Conclusion . References ....

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1. Introduction to Kao Bior Pore Pack


Kao is one of the leading companies in Japan for personal care products, cosmetics, laundry and cleaning, hygiene and bath additives. Among its successful products are the Bior Pore Pack in its personal care line and Magiclean Deodorizing Spray in the household cleaning category. Kao is committed to preserving the environment; therefore its products are designed in an environment-friendly manner.

Unlike other facial packs, which are essentially skin moisturizers, the Bior Pore Pack targets at the removal of pore dirt, commonly known as blackheads a substance consisting of sebum and keratin. Also, unlike other facial packs, which are usually in paste form, the pore pack comes in sheets of ten strips per pack.

The Bior Pore Pack claims to clean clogged / blocked pores and blackheads instantly. It is used once a week and each use process consists of wetting the nose thoroughly with water peeling off the plastic backing of the pore pack slip on the nose, leaving the strip to dry for 10-15 minutes and finally peeling it off. As the strip is peeled off, the blackheads are pulled away from the pores. Users can actually see the blackheads sticking up like blades of grass on the strip. With regular use, the pores become smaller and less noticeable, giving way to a smoother, cleaner skin. Users are surprised to see how dirty the nose can get!

Research into the pore pack began seven years before the product was commercially released. It is a showcase of how divisions in a corporation can synergize their expertise into developing an excellent-quality product. Although developed by the Polymer Technology Division, the pore pack was based on Kaos expertise in non-woven fabric that it gained from the development of its sanitary and paper cleaning products.

The pore pack was originally a standard paste product. Initial product testing indicated that consumers were not comfortable with the products ease of use. Consumers thought that the paste was not practical. It was messy, and they were generally not satisfied with the product.

This prompted Kaos R&D researchers to brainstorm what medium the product should take in order to be practical to consumers. Relying on a consumers comment: If only there were an effective product that was easily applied and removed. Kaos researchers came up with the idea of delivering the product in a sheet form. Further studies were conducted to determine the best size for the sheet. This involved studying the faces of over 1000 women. Page | 3

When the pore pack was launched in April 1996, the product came in a triangular-shaped strip. This was followed by an improved contoured sheet six months later, as market studies indicated how the sheet should fit the shape of the nose.

The success of the Bior Pore Pack saw it winning several prestigious awards, including the Nikkei Excellent Product Award issued by the Nihon Keizai Shimbun.

Consumer response in Japan has been outstandingly positive as the product is easy to use and the effects of cleaner skin readily discernible. This prompted Kao to quickly introduce the product overseas. The Andrews Jergens Company (a US subsidiary of Kao) introduced the product in the US and Canada in May 1997. A month later, it was introduced in Singapore and Thailand. During the first week, stocks were sold out in supermarkets nationwide, and within the first month, it became the top-selling brand, outselling even their house brand tissues. The product was so popular that thieves broke into a local Singaporean supermarket to steal 360 boxes of the Bior Pore Pack!

After six months of introduction, Ponds a competitor launched a similar product called the Clear Pore Strip. The Clear Pore Strip comes in a packaging similar to the Bior Pore Packs. While Kao uses blue on a white background, Ponds packaging has purple on white. Both packages also have an animated picture of a woman with the strip on her nose on the front of the box. They also claim to remove blackheads instantly. Both brands also have similar shaped contour sheets. The Clear Pore Strip is also available in supermarkets and drugstores. The only difference is that the Bior Pore Pack comes with a plastic backing that consumers have to peel off before putting on their nose, while the Clear Pore Strip does not have a plastic backing and consumers need to only wet the side for the strip to become adhesive.

Although the Bior Pore Pack is patented, Kao cannot prevent competition from pushing for a piece of the highly potential market as long as there has been some product alteration. Therefore, copycats have also been observed in smaller drugstores. These include one called Pore Pack. The package, which has a logo stating Beautain at the bottom, does not say where the strips are made. Also, in overseas markets, there has been some evidence of parallel importing, selling at a fraction of the authorized dealer price.

Other competitors include Oxy Blackout. This is a special liquid applied to areas with blackheads. Strips of paper are then pasted on and pulled off to remove the blackheads. There are also facial masks that work on

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the same notion of peeling off to remove the dirt. At a Hong Kong cosmetic shop, Sasa, there are also nose masks targeted at men.

As competition heats up, Ponds has introduced a modified version of its Clear Pore Strip called the TZone Clear Pore Strip. It comes in differently shaped strips for three areas of the face the forehead, the nose, and chin. These are the three areas referred to commonly as the T-Zone, where facial oil is most common.

Not to be outdone, Kao is aggressively protecting its lead. Before the Ponds strip was introduced, Kao gave samples of Bior Pore Pack in leading womens magazines. The sampling exercise was to cultivate users of the Bior Pore Pack before competition entered. Contests were also held in which each entry had to be accompanied by proof of purchase.

From their market survey, Kao found that men felt the current pore pack was too small. Thus, Kao introduced a pore pack especially for men. Besides being bigger, the mens strip also contains menthol to give a cool feeling.

Kao is acutely aware of the importance of speed in product development and marketing. Hence, it has installed Intranet and other intra-company networks to bring problems and solutions together, forging cooperation between R&D and marketing activities.

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2. Question 1: Construct a SWOT Analysis for Kao Bior Pore Pack.


2.1. Strengths

2.1.1 Experience and Brand name Koa Corporation has a lot of experience in the industry and has been established since April 5, 1882. With their experience they have managed to become the leading competitor in the soap and cosmetics industry. Over the years consumers has come to know and trust their product and now the product is sold in over 50 countries.

2.1.2. Effective Profit Management For over a 5 year period beginning in 1995, Koa has managed to sustain profitable growth. In 1999, the Return on Equity ratio rose to a high of 7.68%. This continual growth would aid Kao to reach their growth and expansion goals, also the increase revenue gained from those profits were essential to fund their research and development department to maintain the upper hand in the market.

2.1.3. Ability to satisfy consumers needs The companys main marketing strategy has always been focused on the consumer and satisfying their needs. They have focused on getting feedback from their customers and keep track of the consumers taste and needs in order to ensure satisfaction in the market. A great deal of resources invested in Research & Development has given Kao the opportunity to capitalize and gain a competitive advantage in the market.

2.1.4. Strong Sales Force The Koa Corporation in Japan, Kao Corporation uses its own sales company system, which differs from other competitors. Kao has developed a strong relationship with retailers, by co-operating on issues such as store merchandizing to ensure maximum exposure and awareness to consumers and also improve logistic efficiency through the use of Electronic Data Interchange (EDI) and Earnings Credit Rate (ECR). These systems can ensure better inventory management as well as keeping track of consumer purchasing behavior.

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2.1.5. Wide Product Lines Kao has a diversified product line that ranges from household detergents to cosmetic lines. Kaos product line diversified horizontally but also vertically which means that within each product line would break down into many other products. This type of diversification is directly connected to their marketing segmentation strategy, by implementing the correct segmentation strategy Koa could compete from entry level products to stagnant and declining product lines.

2.1.6. Wide Distribution Channel Kao products are easily obtained at most supermarkets, drugstores, franchised stores, and even online shopping sites. With such a broad distributing channel, Kao products are exposed to very large consumer base and are easily recognizable and available for consumers to purchase.

2.1.7. High Liquidity Kaos liquidity position has increased over the years which would ensure a healthy cash flow and be able to meet all short-term financial obligations. Kao has been reducing its debt ratio over the past 5 years. This move will reduce the companys financial commitments and financial risk. This would also offer Kao a stronger financial position especially during a recession or any other financial crisiss.

2.1.8. Expansion Based on Brand Equity Kao has put a lot of effort and resources into product lines which in turn can generate long term profits and increase the competitiveness in the market. Bior is one of the essential product lines where Kao has focused on to expand based on brand equity. The Bior line of facial care, body care and other personal care products has proven that brand equity (marketing a brand name) can be beneficial for any company.

2.1.9. Pioneering advantage For women, appearance has always been the main motive to purchase products related to cosmetics. Kao found a market niche being the pioneer in pore treatment; Kao implemented a blue ocean strategy by instead of competing in the cosmetic industry but becoming the market leader by using innovative technologies. The Bior Pore Pack has ensured an unprecedented financial growth for Kao since its launch in 1996.

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2.2. Weaknesses

2.2.1. Multiple Level Distribution Channels Kao Corporation still uses the conventional distribution channel which might be beneficial for brand positioning but can increase logistic costs which can have an impact on the products price range and possible delays with deliveries and product availability.

2.2.2. Reliance on Imports Many of Kao Corporations subsidiaries outside of Japan depend on imports of raw material from the company itself. This makes these subsidiaries to become vulnerable to any fluctuations in the Foreign Exchange Market. Any political inconsistencies such as increased tax rates set by government bureaucrats or materials declared as contraband by the government can cause serious repercussions and the profit margins of all subsidiaries of Kao Corporation.

2.2.3. Global Markets Compared to Local Markets Kao sales are mostly from the local market which is in the area of about 70% of the market; the remaining 30% of sales are from the international market. Kao strength lies in local marketing and with the effect of deflation caused but the slow economic growth after the Great East Japan Earthquake in March 2011 Kao has lost its position as a market leader since their commodity products such as detergents and cosmetics could not meet markets demands and market rivals has filled the production void caused by the absence of Kao.

2.2.4. Unable to up-scale market shares Kao has maintained a good market percentage but they have been unsuccessful to gain market shares in the High-class cosmetic range due to its direct link to household detergents. The Bior product line has given Kao phenomenal growth within the industry but they could not compete with other brands in a higher class cosmetic line such as Lo'ral, Maybelline, Olay and Garnier.

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2.3. Opportunities

2.3.1. Non-Western Markets Kao has been reluctant to invest more into the Indian market due to unethical marketing practices and corruption within the system. India has become a major focus for growth due to low penetration and high operating profits and would prove beneficial for expanding their brand into Western Asia and the Middle East.

The largest market currently is anti-aging skin care, the demand is high and most consumers arent price sensitive, this can offer Kao to enter the high class facial care market by offering a unique product related to the Bior Pore Pack product.

2.3.2. Emerging Markets Many developing countries such as China, Malaysia, and Thailand are the emerging markets in the global market. With the downfall of communism in many European countries it made it possible for those countries to enter the world market trade. With a better life standard and an improving annual GDP a big demand for luxury cosmetic items will develop and Kao has a very big advantage to dominate the market. Due to the close proximity and lower exporting costs, it will enable Kao to offer quality products at a lower rates compared to competitors. The World Trade Organization (WTO) has removed a lot of red tape in trading agreements and can offer a higher profit margin for Kao on the global market.

2.3.3. E-commerce The internet has been the major influence for global trading, through E-commerce Kaos distribution boundaries has been decreased. By using E-commerce as their main marketing channel it can decrease strategic cost and advertising. This could only be possible in developed countries but for developing countries a more conservative marketing channel has to be used.

2.4. Threats

2.4.1. Distribution timing Companies such as Garnier, Maybelline, Lo'ral as well as others are already distributing their skin care products throughout India, Malaysia, China and Thailand.

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2.4.2. Increase Power of Buyer The latest marketing trends of retailers are to prevent companies to sell their product in the store using their own name; instead all product manufactures should trade under the name of the retail company. In the U.K. Tesco has stated that Coca-Cola can only sell their product in their stores only if Coca-Cola agrees to change their packaging to Tesco brand. This would cause huge logistical problems for the company seeing that different packaging has to be used for every different retailer. In the long run would make it impossible to maintain a brand image of your product. If such implementations are forced upon Kao it can prove disastrous for its product line seeing that it would be competing against itself.

2.4.3. Intensifying Competition Koa has been renowned for its introduction of revolutionary products, but within the industry other competitors such as P&G and Johnson & Johnson has been able to keep pace with the development of technology. This causes fierce competition for Kao and the amount of money available for research would prove to be the successor. With the natural disaster that has overshadowed Japan the financial resources of Kao would not be enough to compete against these corporate giants.

2.4.4. Government Policies Unfavorable policies set by government can cause a serious threat for all subsidiaries of Kao in that country such as domestication or expropriation of assets. E.g. Iran expropriated all U.S. assets or took possession of in the country. As a result, U.S. firms lost millions of dollars.

2.4.5. Forex Fluctuations With the strengthening of the Yen Koa products become less competitive seeing that the price of the product will automatically increase as well. Kaos products are produced locally and when the Yen becomes weak it can be differentiated by its price on the global market. For Kao using the low cost provider strategy has been the main strategy to compete globally. All products that are in the cosmetic industry face strong competition and most companies would be classified using the red ocean strategy.

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3. Question 2: Show each of the 4Ps for the Kao Pore Pack. What marketing strategies would you suggest Kao to undertake to stay as on as a market leader in this market?
3.1. Product Kao produces commodity type products and an undifferentiated strategy is usually implemented for such products. In Kaos case, in order to maintain a competitive lead they need to implement differentiated strategy by offering products in different sizes and quantities e.g. being able to buy the Bior Pore Pack in packs of 1s, 3s and 5s.

3.2. Price The following are the pricing strategies: 3.2.1. Low-cost Pricing or Penetration Pricing: This pricing strategy would attract most consumers and would be beneficial as a starting phase for Kao subsidiaries.

3.2.2. Product-line Pricing: The more features or better attributes the product has the higher the price of the product becomes. This form of price discrimination assists the company in maximizing turnover and profits.

3.2.3. Bundle Pricing This has motivated consumers to purchase the product by using the buy two get one free pricing strategy.

3.3. Promotion A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organizations promotional mix can consist of: Advertising Public Relations Sales Promotion Personal Selling Direct Mail Internet / E-commerce Page | 11

Kao has integrated all of the above methods into the marketing strategy; this is achieved through a variety of media channels such as Television, Radio, Newspapers, Magazines, billboards and the internet. The aims of promotion fall into three main categories: to inform, to remind, and to persuade. It will always be necessary to inform prospective consumers about new products and services, but other issue may also need this type of communication to consumers; new uses, price changes, information to build consumer confidence and to reduce fears, full description of service offering, image building. It is vitally important to recognize that promotion, or marketing communications generally, may not always be aimed at potential consumer or end user of service. In many business areas, it is to design promotions aimed at channel customers to complement end user promotion.

3.4. Place (Distribution) Intensive distribution would be the best distribution strategy for Kao Corporation, by having commodity type products the companys main focus is on selling through all possible distribution channels (FMCG).

Any organization, before introducing its products or services into the market; conducts a market survey. The sequence of all 'P's as above is very much important in every stage of product life cycle: Introduction, Growth, Maturity and Decline.

3.5. SWOT Analysis Strategies The strength and weaknesses analyzes the companys internal environment. The external environment consists of opportunities and threats. The Internal environment is controllable by the company where as the external environment depend on factors such as politics, economic, social behavior and trends, and finally technology. By combining the internal and external environment, one can obtain a basis for strategy formulation. Here is an example of the strategy that we can formulate using SWOT analysis.

3.5.1. SO (Strength and Opportunities) Strategies Many developing countries throughout Asia are the Emerging markets that are currently experiencing economical as well as population growth. Other countries that could not previously enter the world market due to political reasons and are now open to foreign investors offers Kao a great opportunity to implement a low cost provider strategy seeing that Kao manufactures commodity type products that are essential for day to day use and can be produced on a large scale. Kao has successfully integrated market segmentation through its product line and can offer consumers a wide range of product. From this it also has an opportunity to focus on launching its high Page | 12

class product line which was not possible in developed countries due to fierce competition; this can be done by implementing a Best cost provider strategy that can offer a quality product at a reasonable price. Both these strategies can ensure establishing a good brand positioning in the market.

Once a good brand name has been established Kao can focus on implementing a Globalized strategy and begin manufacturing their product locally in every country. Kao has been very successful in establishing and satisfying customer needs, Kao should also focus on understanding the geographic influences as well as Socio-cultural and Psychological factors prior to implementing any marketing strategies.

3.5.2. WO (Weakness and Opportunities) Strategies Kaos major weakness is the complexity of its distribution channels, by using modern day technology Kao can avoid the distribution problem by implementing E-commerce and thus cut out the middle man. This can prove beneficial for Kao but it can only be phased in over a period of time. Kao has a social responsibility in that community and has to ensure an alternative income for retailers such as offering coupons at selected stores for every product purchased. With the reduced logistic cost prices can be lowered and increase consumers surplus.

Even though Kao has experienced great success it still hasnt been as successful as some of the Keiretsu companies e.g. Toyota is well diversified and offers forward and backward integrations for its products. The only way to achieve this kind of integration in the cosmetic industry is by offering refillable products at a cheaper price, which can reduce cost, increase sales and boost the brand image as an environmentally friendly product.

3.5.3. ST (Strength and Threats) Strategies With retailers demanding more control over what products are sold in their stores the more difficult it becomes to strengthen your brand image. This can have a huge financial impact not only from a marketers point of view but also from the production level seeing that all packaging has to customize for every retailer. The internet and E-commerce can offer the company immunity from retailers demands.

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Increase competition means lower profitability for a company to maintain the market shares. The low cost provider strategy has always proved to be successful for commodity type products, mass production and using less distribution channels can ensure a lower price.

3.5.4. WT (Weakness and Threats) Strategies The weakness of Kao Corporation might not have a serious effect on the company but it can have a major impact once competitors focus on it to gain market shares. Fluctuating Forex can cause severe financial loss for Kao because all of its subsidiaries are dependent on Kao to provide the raw material. Financial hedging meaning that Kao would borrow money from local investors to avoid any financial loss has proved successful for subsidiary companies of Kao.

Koa can also consider merging with other companies that has a competitive advantage over Kao which can eliminate competition but can be a capital consuming strategy. Forming strategic alliances can also reduce threats in the industry and can be beneficial for both parties in the long run.

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4. Question 3: What segment(s) should Kao target in the Asian market?


Segmentation involves finding out what kinds of consumers with different needs exist. In the cosmetics industry, for example, some consumers look for only price, while others are much more concerned about quality and attributes. In general, it holds true that "You can't be all things to all people," and experience has demonstrated that companies that specialize in meeting the needs of one group of consumers over another tend to be more profitable.

Note that segmentation calls for some tough choices. There may be a large number of variables that can be used to differentiate consumers of a given product category; yet, in practice, it becomes impossibly burdensome to work with more than a few at a time. So, we need to determine which variables will be most useful in distinguishing different groups of consumers.

We might thus decide, for example, that the variables that are most relevant in separating different kinds of beauty care products and cosmetics consumers are:

1. Preference for price 2. Preference for combination of price and other features 3. Consumers not worried at all about price: Looking for privacy or luxury 4. Willingness to pay for brand names

We now put these variables together to arrive at various combinations. Several different kinds of variables can be used for segmentation.

4.1. Demographic Segmentation Demographic variables essentially refer to personal statistics such as income, gender, education, location, ethnicity, and family size. For the Bior Pore Pack it will mainly focus on the middle class consumers and would be considered a luxury item for breadline consumers and it doesnt offer enough attributes to satisfy the upper class consumers for this reason it can have a very large market share in developed countries where most people are middle class earners and it could have a potentially large market for emerging countries such as India, Malaysia, China and Thailand.

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4.2. Socio-cultural Segmentation Socio-cultural segmentation focuses more on cultural and religious beliefs and has a major impact on the beauty care products and cosmetics industry. In Asian countries both male and female have a strong believe that fair-skin is more attractive than dark-skin, so the same marketing strategy could not be used in different countries. Skin whiteners would have a bigger market in Asia than self-tanning products, socio-cultural segmentation would be essential in determining the correct marketing strategy.

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5. Question 4: What specific factors should Kao consider if the company were to launch a specific pore pack for the Thai womens market?
5.1. Financial Factors At the end of the fiscal year in 2008, the Kao Group went through a deflationary trend in the domestic toiletries market, their main area of business, while the cosmetics market continued shrinking due consumers spending less during and after the Global recession.

Kao responded to this business environment with a series of all-out efforts, including to strengthen the development, introduction, marketing, and sale of high value-added products, and to pursue Total Cost Reduction (TCR) measures. Despite a decrease in sales Kao were able to increase their annual cash dividend with an improvement in their cash flow. Most companies were unprepared for the global recession and this has caused many companies to operate more economically and streamlined regardless of whether their current or previous marketing strategies showed positive results.

Prior to any factors to be considered for Kao to enter the Thai market they first have to see how the global market is responding especially the U.S., economic growth in the U.S. can have a positive effect on the world trade market. Secondly, with the high contamination risk of raw material in Japan caused by the destruction of the nuclear plant during the earthquake and Tsunami in March 2011, Kao is having extreme difficulties in meeting demands for their established subsidiaries all over the world. President and CEO Motoki Ozaki has stated that they should resume operation by May 2011 but it would take much longer to reach full capacity. Kao has to first regain the market and the public trust before considering entering the Thai market.

In emerging nations such as the BRICs countries (Brazil, Russia, India and China), which are deemed to be at a similar stage of newly advanced economic development, Kao is seeking to position China, where the Group is already doing business, as a model, while intensively investing the Group's management resources in an effort to accelerate performance. Thailand has not yet reached that level of growth and development but will soon be joining the Big Four. Kao has invested more in China and India and the profit margin compared to Thailand is much higher due to a larger population and a higher GDP. Thailand experienced GDP growth by 8.0% in 2010 making it one of the fastest growing economies in Asia. The country has a GDP net worth of 9.5 trillion Baht on purchasing power parity (PPP), and is the 24th largest economy in the world. Indias GDP was 8.5% but they are the fourth largest economy in the world market. Page | 17

Kao has taken preliminary measures to enter the Thai market and has already established a good brand image with Thai consumers. Thailand offers a big market but the main factors to consider are as follow:

5.2. Segmentation Factors Kao Bior has a very diverse product line and has implemented a well researched segmentation strategy. By taking a closer look at Biors product line one can immediately distinguish how Bior has considered the market differentiation and segmentation.

Bior Product Line in the U.S. Deep Cleansing: Steam Activated Cleanser Makeup Removing Towelettes Revitalize 4-in-1 Self Foaming Cleanser Detoxify Daily Scrub Even Smoother Microderm Exfoliator Complexion Clearing: Pore Unclogging Scrub Blemish Fighting Ice Cleanser Triple Action Astringent Warming Anti-Blackhead Cream Cleanser Pore Strips: Deep Cleansing Pore Strips Combo Pack Deep Cleansing Pore Strips Ultra Deep Cleansing Pore Strips Moisturizing: Nourish Moisture Lotion SPF 15 Hard Day's Night Overnight Moisturizer See the Future Fortifying Eye Cream

Bior Product Line in Thailand Facial Foam Acne and Oil Care Pore & T-Zone Care Luminous Whitening Clarity Radiance Luminous Whitening UV Care Smooth and Soft Care Fine-Wrinkle Prevention Special Care UV Aqua Rich Watery Essence (SPF50) UV Aqua Rich Watery Mousse (SPF50) UV Aqua Rich Watery Jelly (SPF50) UV Bright Face Milk (SPF50) UV Perfect Face Milk (SPF50) UV Perfect Milk (SPF50) UV Daily Care Gel (SPF25) Pore Pack Pore Pack T-Zone Pore Pack Black Pore Pack Pore Pack Aroma Shower Cream Sparkling Apple Sakura Sensation Whitening Scrub Moisture Rich Make Up Remover Cleansing Milk Perfect Cleansing Oil Perfect Cleansing Cotton Page | 18

Kao has successfully applied a Hybrid Segmentation Approach of Psychographic - Demographic and Geodemographic Segmentation. A big factor linked to segmentation are cultural and social trends, which can vary from country to country or even region to region and this might pose a problem for Kao to launch a product focused on a niche market such as Skin-Whitening products. For example generally throughout Asia fair skin is considered a beauty trade but such products might not have great success at many tourist destinations seeing that a huge consumer market are Westerners that came to Thailand to soak up some sunshine and to get a healthy tan. Thailand biggest income is based on tourism Bior from a marketing point of view has been neglecting a big market share specifically the tourist coming to Thailand.

5.3. Brand Positioning Factors Kao are investing a lot on research that focuses on facial cleansing products that address the needs of Thai women. Kao feels that Thai women have not altered their buying behavior when it comes to skin care products, particularly daily-use products like facial cleansers and moisturizing lotions. In fact, facial cleansing is the critical first step users must take in caring for their skin. Bior, is a pioneer in the area of facial cleansing products in Thailand, Thai woman have trusted the Bior product line over the years. With fierce competition from the major players in the industry such as Proctor & Gamble, Johnson & Johnson and Colgate Palmolive consumers have gained more buying power. To make matters worse, with the Great East Japan Earthquake Kao has been under the spotlight on the world market whether or not Kao as a company can maintain the high standard. The biggest challenge is to convince consumers that Bior is still a brand that can be trusted.

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6. Question 5: Which motivational direction, positive or negative, will you use to increase the use of Kao pore pack among Thai women?
The main marketing strategy of the Bior Pore Pack would be focused on Differentiation, by implying that Bior offers more than just different attributes or values, which would attract many Thai women. The implications are not a marketing strategy that is implemented based on product attributes or price but the psychological implication from their advertising methods.

6.1. Psychogenic Needs as a Motivator The first step is to motivate the consumer through peer pressure, it might seem to be unethical but fear of not fitting in or to be accepted is one of the greatest motivators for consumers to buy a product. To portray an image that without Bior products especially the Pore pack product is to be unsanitary and can lead to unhealthy skin such as acne, carbuncles, oversized pores, blackheads, oily or dry skin, crows feet etc. And being unattractive is basically to be an outcast to society.

On the other hand Bior can take the sensitive approach of a company that understands a womans needs like being able to have a solution for woman going through puberty, menstruation or menopause, hormone imbalance has always been the number one cause of skin outbreaks for women. The intimate knowledge of what a woman goes through would be a good motivator.

6.2. Hedonic Needs as a Motivator One can go as far as to portray a life of fantasy, a woman with flawless skin being rescued from her knight in shining armor. This kind of advertising method would have a great impact on teens experiencing the excitement of their first love, a single woman meeting Mr. Right or a lonely housewife escaping from her daily routine. Implicating a possibility of such things is enough to motivate most female consumers.

6.3. Safety Needs as a Motivator Maslows classification of consumer needs points out that safety is a priority above social needs to most consumers. Many consumers has developed a negative attitude toward beautiful women being used in advertising, realism has become a great motivator for beauty products. Consumers need to see and hear from ordinary womens success stories; they need that reassurance that the product causes no health risk and mainly produces the results expected. Page | 20

7. Conclusion
The Kao Corporation has faced many obstacles and has survived, its business ethics are well known and respected by both rivals and consumers throughout the world. The world market is rapidly evolving to a global scale and many companies are doing international trading regardless of their size or available resources. Consumer needs and expectations have reached such a high level that for any company to survive now they have to be of world standard not just in production but their marketing strategies as well. Kaos main objective is to focus on consumer needs and it has proved to benefit them greatly in the past but Kao has to have a lot more up their sleeve if they want to remain as one of the cosmetic and skin care product giants in the world.

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References
1. http://adage.com/article/news/marketing-100-biore-pore-perfect-jeff-mccurrach/65276/ 2. http://en.wikipedia.org/wiki/BRIC 3. http://en.wikipedia.org/wiki/Economy_of_India 4. http://en.wikipedia.org/wiki/Economy_of_Thailand 5. http://en.wikipedia.org/wiki/Hedge_(finance) 6. http://en.wikipedia.org/wiki/Marketing_mix 7. http://www.biore.com/usa/products/index.aspx 8. http://www.buzzle.com/articles/demographic-segmentation.html 9. http://www.collegetermpapers.com/TermPapers/Business/Kao_executive_summary.shtml 10. http://www.forex4real.com/forex-fluctuations-currency.html 11. http://www.kao.com/jp/en/corp_ir/imgs/results_fy2010_all.pdf 12. http://www.kao.com/jp/en/corp_ir/investors.html/annualreport/pdfs/2006/an06_beauty06.pdf 13. http://www.kao.com/jp/en/corp_ir/message.html 14. http://www.kao.com/th/product/biore.html 15. http://www.learnmarketing.net/Place.htm 16. http://www.tradingeconomics.com/thailand/gdp-growth 17. http://www.wiley.com/college/mar/kotabe372897/pdf/case19.pdf

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