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Case Study 1

Rikus major problem was that sales of Kenko rice crackers in the US were growing slowly and the division was losing money. To solve this, he needed to expand distribution beyond Asian stores and position Kenko as a mainstream snack. Strategies discussed to address this included detailed market research, branding, marketing, and ensuring product design and distribution channels met US consumer needs. However, the strategies used were not fully effective as they did not thoroughly research US consumer behavior and positioning. As an HR partner, Riku should focus on branded marketing over private labeling to maintain the brand equity built in Japan and globally. Differences in US and Japanese markets around product design and distribution caused challenges for Riku.

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256 views

Case Study 1

Rikus major problem was that sales of Kenko rice crackers in the US were growing slowly and the division was losing money. To solve this, he needed to expand distribution beyond Asian stores and position Kenko as a mainstream snack. Strategies discussed to address this included detailed market research, branding, marketing, and ensuring product design and distribution channels met US consumer needs. However, the strategies used were not fully effective as they did not thoroughly research US consumer behavior and positioning. As an HR partner, Riku should focus on branded marketing over private labeling to maintain the brand equity built in Japan and globally. Differences in US and Japanese markets around product design and distribution caused challenges for Riku.

Uploaded by

aarshi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1. What was Rikus Major Problem? And how could he have solved it?

2. Explain any FOUR strategies used.


3. According to you, do you think the strategies used were really effective?
4. If you were Riku, being an HR strategic partner, which alternative would you suggest? -Private
label deal or branded marketing deal, and why?.
5. Suppose Riku came to Karachi, would he face similar challenges? Why? Why not?
6. Elaborate on the two market differences and why they cause a lot of headache to Mr. RiKu.

Answer:
1. What was Rikus Major Problem? And how could he have solved it?

Kenko USA hadn’t taken off as hoped, though

sales increasing by a modest 2% per year. But growth was

well below projections, and the division, which was supposed to be

self-sustaining after five years, was still losing money. Riku knew that

the key was to expand beyond Asian supermarkets and grocery stores’

international sections and get Kenko crackers into the snack aisles of

mainstream U.S. food outlets.

In today's competitive world competition becomes tougher and in order to succeed in the market,
business houses need to adopt various strategies to be active in the market. Marketing the product
is not only to fulfill the primary need and want of the customer it also helps to know your customer
really really well. Every successful organization or its brand not only serves the market demand but it
also has an emotional and sentimental attachment to its customers. In the given case Riku Nakamura
who is heading Kenko USA which is a subsidiary of Kenko Japan failed to sell and positioning its rice
cracker (product) as a mainstream of the US food market. Generally for Riku, the biggest problem is
to position their Kenko rice cracker in the USA market and to remain as an active player. In order to
get rid out of this problem and to achieve the respected sales target, Riku should plan strategically
go through detailed market research in order to know the minds of the US consumers.
2. Explain any FOUR strategies used.

2.It is quite important for a firm to move its business from niche to mainstream. In order to avoid
such uncertainty Kinko USA need certain strategies mentioned below:

a) Apply the right strategic tools: In order to get rid out of the uncertainty, the firm should apply the
right tools to know their strength and weakness which helps the firm to move on with the desired
result. In this regard, Kinko USA needs to go through detailed analysis that what they are good at
and how they communicate those messages to their target customers.
b) Detailed Market Research: Though this is a vital stage in the new product development many
firms do not go through in a detailed manner which lags them behind their competitors. Kinko USA
must go through a competitive analysis of the detailed strategies played by the competitors and plan
your strategy according to that.

c) Grasp the market well: Kinko USA not only to sell their products they have to ensure that the
product must satisfy the consumers with a happy face. The company must focus to increase the
number of loyal customers.

d) Marketing Strategies: Kinko USA makes it sure that apart from internal strategies the company
can develop a strong channel of distribution which helps the firms to sell their products and fulfills
its target.

3. According to you, do you think the strategies used were really effective?
3. No, the strategies were not really effective because before the Kinko while entering the USA
market the company needs to have detailed market research, as well as the company, needs to do
the consumer buying behavior in the US market. In addition to that, the company can position their
products in such a way that it satisfies the thought process of the consumer.
4. If you were Riku, being an HR strategic partner, which alternative would you suggest? -Private
label deal or branded marketing deal, and why?.

4. Riku, Being an HR strategic partner needs to go on a Branded Marketing deal over private level
deal because though Kinko Japan is a market leader in its parent country Japan in the rice cracker
business with having a gross of 1 billion dollar, to maintain the brand equity of the company as well
its products. It's quite difficult task for the company to build its brand. Though Kinko has already
brand recognition in the parent country the company has to retain its position in the global market
as well.
6. Elaborate on the two market differences and why they cause a lot of headache to Mr. RiKu.
6.Generally, the two important market difference is

a) Product design: The firm should consider its product design in such a way that it creates a sensory
impression in the minds of the consumers and the consumers are fascinated about the product the
firm offers. In order to grab the analysis market consumer behavior is quite important.

b) Strong Distribution Channel: Firms should focus on strong supply chain management to meet the
market demand and to fulfills their order. Kinko should target new suppliers to sell its products
which helps the firm to widen its business.

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