Japan_ Devising A Distribution Strategy_2

8/7/2019 Japan_ Devising A Distribution Strategy_2

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CASE STUDY PRESENTATION

By -

Bhaskar Bajpai.

Amity Global Business School, Amity

University, Noida.


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CASE

Japan: Devising ADistribution Strategy


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Distribution Structurefollowed in Japan


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Distribution Structurefollowed in United States


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Differences between Japan & US

regarding DistributionTotal number of Retail Outlets in Japan- 1.6Million Stores, represents about 5% more

stores in US.In Japan there are 132 Retail Stores per 10,000People compared to 65 stores for the sameamount of people as in Japan.In Japan there are 4,00,000 Wholesalers. Butin US this concept is not present.


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Retail Outlets in Japan Retail Outlets in

United States

FOOD STORES

Super Markets 15.0 43.7

Hypermarkets 1.5 3.1

Discounters 1.0 29.1

Independent Grocers 62.0 9.7

Bankers 74.7 2.8

Butchers 16.4 8.0

Fishmongers 27.0 1.6

Greengrocers 27.7 3.3

NON FOOD STORES

Book Sellers 37.0 12.7

Chemists 83.3 47.4

Department Stores 0.3 13.5

Electronics, Computers 61.9 30.3

Home Furnishings 38.7 28.2

Sporting Goods 19.3 23.2

Toy Shops 12.1 18.0


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G radually Japan allowed ChangesIn their Distribution System


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THEME SHOPP IN G


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The Shopping which break up the monotonyof the shopping aisle by having variousTHEMES.


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EDUTAINING DUBAI MALLS


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Adopting Themes by Japan

Venus Fort's vision is a shopping theme parktargeted primarily at women . The interior ismodeled after Italy in the 18 th century, andthe fake sky on the ceiling changes colorthroughout the day . The stores are mainlyfashion and accessories, together with

restaurants and cake shops .


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Different types of Products with

different Themes

A Bowl of Cakes for Tea Ceremony in Japan.


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Themes

The Bags are given to aCustomer from a Book Shop.

MARUZEN MEGA

BOOK STORE


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Themes

Toys and Games Storesin the summer festivals.BANANA CHOKO


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Themes

Local Craft NORENis widely used as ahanging curtains inRestaurants and Homes.


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Themes

A Gift HANKOwhich is used as a LocalCraft.


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Mistakes done by the US in JapanMarket

US wants to make a direct contact with the

Customer.

They treat the Japanese Market at arms lengthby selling to a Trading Company.


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Rules to be followed by Foreign Companies inthe market of Japan regarding Distribution

Adaptation to the reality of FragmentedDistribution in the marketplace.

Research into the market itself including

Customer needs and competitive products.

Contd


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Contd

Develop an overall Marketing Strategyregarding

1. Positions the product according to need,price and other issues.2. Positions the product against

Competitors.3. Lays out a Marketing plan- including a

distribution plan for achieving volume andShare-of-market objectives.


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Shimaguchi & Rosenbergs(Two Authors) advisefor the Foreign Companies

Find a Japanese Partner.

Develop a strategy of offering Better Quality,Lower Price or Distinctive Positioning of their product.

Prepare for a long term effort.

Keep patience to achieve long term benefit.


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Alternative Distribution Channels

have been developed to bypass theJapanese Distribution System(Describe in a Recent Study)


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ALTERNATIVES

Buy Goods directly from the Manufacturer.Avail Tele-Marketing approach.(A New

approach, proven successful with B2B rather than Consumer Marketing).Mail order.

Selling of Merchandise in the Internet.Door-to-Door Selling (Shown by the Company AMW AY ).


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T he Channel Decisions are difficult tomanage G lobally because of the following

R E

ASO

NS


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REASONS

Channel Decisions are difficult to manageglobally because of the variation in ChannelStructures from country to country.In Developed Countries they substitute Capitalfor labor but in Developing Countries thesituation is completely opposite.Transportation and Physical Distribution arecritically important in Global Marketing.


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Thanking You

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Japan_ Devising A Distribution Strategy_2