Biore Pore Pack

Kao Corporation made a big hit in the industry of personal care product with Biore Pore Pack launched in 1996 in Japan. However, after the successful launching, Biore Pore Pack faced intensive competitions which threatened its brand and positioning in the market. (1) As such, there is a need for a critical analysis of the marketing environment SWOT analysis.

Strengths Weaknesses

• Potential internal strengths

• Comprehensive products fields

• Wide distribution channel

• Expansion based on brand equity

• Pioneering advantage • Less market-shares in the global markets comparing with that in the domestic market

• Unable to up-stretch market

Opportunities Threats

• High demand

• Potential markets • Intensive competitions

1. Strengths:

• Potential internal strengths

As stated in Kao Business Activities (2008), members of individual Kao Group companies and divisions that operate on a global basis are engaged in business activities aiming at Yoki-Monozukuri that will really satisfy Kao’s customers and enable Kao to share joy with them.

(Source: Kao Corporation вЂ" Business Activities. Available at: http://www.kao.co.jp/en/company/activities/index.html)

Bear in mind the motto of “Integrates diversity to create innovative products”, Kao R&D team always keeps track of market’s changing tastes and needs in order to satisfy its customers whom it gets tougher to gain or even retain due to the vast ranges of competitive products. By applying the Yoki-Monozukuri into its business activities, be it the R&D, Sales, Marketing, Production and Distribution, Kao possesses a potential internal strength which helps not only back up for its business activities but also differentiate itself from the other competitors.

• Comprehensive products fields

Kao Corporation has a wide range of products such as Beauty Care, Human Health Care, Fabric and Home Care, and Chemical Products which can meet a variety of consumers’ needs. That gives Kao plenty of chances to interact with consumers in terms of using and recognition, and then sharpens its brand and positioning in the market-place.

• Wide distribution channel

It’s easy to purchase Kao products which are available in most supermarkets, drugstores, franchised stores, and even online shopping. With such a broad distributing channel, Kao products stands a high chance of being seen or recognized or even purchased by consumers.

• Expansion Based on Brand Equity

According to Kao’s Annual Report (2000), its core strength is to introduce innovative, value-added products based on new concepts that wins consumer acceptance. Moreover, its unique methods of communicating the special characteristics of Kao products to consumers foster brand loyalty. Kao gives its whole-hearted efforts in these areas in order to nurture brand which then generates long-term profits and even admit intensive competition. Biore is one of the essential evident for Kao’s effort to expand based on brand equity. Kao leveraged on brand equity of Biore to create an entire line of facial care, body care and other personal care products based on innovative technologies.

(Source: Kao Corporation вЂ" Annual Report. Available at: http://www.kao.co.jp/en/ir/annualreport/pdfs/2006/an06_beauty06.pdf

• Pioneering advantage

Skin status always occupies a big part of women’s concern, be it the moisturizing rate, or the brightness, or healthiness etc. One of the recent issues that causes embarrassment to women is the noticeable pores on the nose resulted from pore dirt, commonly known as blackheads. Besides, in the industry of personal care products, skin moisturizers are dominant and usually in the form of paste considered to be less-convenient in using. With the mission of “satisfaction and enrichment of the lives of people” and the value of innovation, Kao took the issue stated above as an aim to achieve in its product improvement, and Kao Pore Pack came into life. Being the first-ever product targeting at instantly removing oil and dirt that clog pores on the nose, Biore Pore Pack took the advantage of being the early product of its kind to the market, which was paid off handsomely just after the first batch out in 1996 in Japan.

2. Weaknesses:

• Less market-share in the global markets comparing with that in the domestic market

Being one of the biggest cosmetic manufactories in Japan, it’s not amazing that the popularity of Kao products is dominant in Japan. However, when Kao decided to go global, their market-share is not as good as it is in the domestic market. For instance, Globrand online newspaper (2006) stated that 70% of its sales income is from Japan, only 30% is from international markets. That its strength

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