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Table of Contents

1. Introduction to Kao Bioré Pore Pack ……………………………….…….………………………………………….………. 3

2. Question 1: Construct a SWOT Analysis for Kao Bioré Pore Pack ………………….………………………….… 6

2.1. Strengths …………….….……………………………………….……………………………………………..…………....….. 6

2.2. Weaknesses ………….…………….……………..…..…………………..…………………………………………………….. 8

2.3. Opportunities ………….…….………..……………..…………………..…………………………………………………….. 9

2.4. Threats ………….…………….………………….…………………………..…………………………………………………….. 9

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? ……………………..………….…

11

3.1. Product …………….……………………………..…………….………………………………………………..…………....….. 11

3.2. Price ………….…….………………………………………………………..…………………………………..………………….. 11

3.3. Promotion …….…………………………..…...…………………..…………………….………….….……..……………….. 11

3.4. Place (Distribution) ………………………………..…………………..……………………………….….…………..…….. 12

3.5. SWOT Analysis Strategies ……………..……………………………..………………………….….….…………..…….. 12

4. Question 3: What segment(s) should Kao target in the Asian market? …………………………………….… 15

4.1. Demographic Segmentation ………..…………………………………………………………..……..…………......... 15

4.2. Socio-cultural Segmentation …………..………………………………………………………………………………….. 16

5. Question 4: What specific factors should Kao consider if the company were to launch a specific

pore pack for the Thai women’s market? ……………………….……………………………………………………………..

17

5.1. Financial factors …………………………..…………………….……………………..…………..……..…………......... 17

5.2. Segmentation Factors …………………………..………………………………………………..……..…………......... 18

5.3. Brand Positioning Factors …………..……………..……………..……………………………………………………….. 19

6. Question 5: Which motivational direction, positive or negative, will you use to increase the use

of Kao pore pack among Thai women? ……….…………………………………………………………………………….…..

20

6.1. Psychogenic Needs as a Motivator ………..……………………………………………..…….…..…………......... 20

6.2. Hedonic Needs as a Motivator …………..……………..…..…………………………………………….…………….. 20

6.3. Safety Needs as a Motivator ………….…………….……..……………..……..……………………………..……….. 20

7. Conclusion …………………………………………………………………………………………………………………………………. 21

References ………………………………………………………………………………………………………………………………..….. 22

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1. Introduction to Kao Bioré 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 Bioré 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 Bioré 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 Bioré 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 Kao’s 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 product’s 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 Kao’s R&D researchers to brainstorm what medium the product should take in order to

be practical to consumers. Relying on a consumer’s comment: “If only there were an effective product that

was easily applied and removed….” Kao’s 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.

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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 Bioré 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 Bioré 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 Bioré Pore Pack’s. 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 Bioré 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 Bioré 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 T-

Zone 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 Bioré Pore Pack in leading women’s magazines. The sampling exercise was to cultivate users of

the Bioré 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 men’s 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 Bioré 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 company’s 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. Kao’s

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

Kao’s 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 company’s financial commitments and financial risk. This would also

offer Kao a stronger financial position especially during a recession or any other financial crisis’s.

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. Bioré is one of the essential product lines where

Kao has focused on to expand based on brand equity. The Bioré 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 Bioré 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 Corporation’s 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 Bioré 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'réal, 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 aren’t price

sensitive, this can offer Kao to enter the high class facial care market by offering a unique product

related to the Bioré 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 Kao’s

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'réal 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. Kao’s 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 Kao’s 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 Bioré Pore Pack in packs of 1’s,

3’s and 5’s.

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

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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 company’s 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 company’s 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

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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

Kao’s 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 consumer’s surplus.

Even though Kao has experienced great success it still hasn’t 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 marketer’s 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 Bioré Pore Pack it will mainly focus on the middle class consumers

and would be considered a luxury item for breadline consumers and it doesn’t 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 women’s 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. India’s GDP was

8.5% but they are the fourth largest economy in the world market.

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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 Bioré has a very diverse product line and has implemented a well researched segmentation strategy.

By taking a closer look at Bioré’s product line one can immediately distinguish how Bioré has considered the

market differentiation and segmentation.

Bioré Product Line in the U.S. Bioré Product Line in Thailand Deep Cleansing: Facial Foam Steam Activated Cleanser Acne and Oil Care Makeup Removing Towelettes Pore & T-Zone Care Revitalize 4-in-1 Self Foaming Cleanser Luminous Whitening Clarity Radiance Detoxify Daily Scrub Luminous Whitening UV Care Even Smoother® Microderm Exfoliator Smooth and Soft Care Fine-Wrinkle Prevention Complexion Clearing: Pore Unclogging Scrub Special Care Blemish Fighting Ice Cleanser UV Aqua Rich Watery Essence (SPF50) Triple Action Astringent UV Aqua Rich Watery Mousse (SPF50) Warming Anti-Blackhead Cream Cleanser UV Aqua Rich Watery Jelly (SPF50) UV Bright Face Milk (SPF50) Pore Strips: UV Perfect Face Milk (SPF50) Deep Cleansing Pore Strips UV Perfect Milk (SPF50) Combo Pack Deep Cleansing Pore Strips UV Daily Care Gel (SPF25) Ultra Deep Cleansing Pore Strips Pore Pack Moisturizing: Pore Pack T-Zone Nourish Moisture Lotion SPF 15 Pore Pack Black Hard Day's Night® Overnight Moisturizer Pore Pack See the Future® Fortifying Eye Cream Pore Pack Aroma Shower Cream Sparkling Apple Sakura Sensation Whitening Scrub Moisture Rich Make Up Remover Cleansing Milk Perfect Cleansing Oil Perfect Cleansing Cotton

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Kao has successfully applied a Hybrid Segmentation Approach of Psychographic - Demographic and Geo-

demographic 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 Bioré 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. Bioré, is a pioneer in the area of facial cleansing

products in Thailand, Thai woman have trusted the Bioré 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 Bioré 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 Bioré Pore Pack would be focused on Differentiation, by implying

that Bioré 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 Bioré 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, crow’s feet etc. And

being unattractive is basically to be an outcast to society.

On the other hand Bioré can take the sensitive approach of a company that understands a woman’s 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

Maslow’s 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 women’s success stories; they need that reassurance that the product causes no health risk and

mainly produces the results expected.

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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. Kao’s 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)

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