Kikkoman Case Analysis

Kikkoman Case Analysis

International Marketing Assignment

Submitted To:

Dr. Satya Prasad

Submitted By:

AVIN SETH

11BSPHH010206

Kikkoman Case Analysis

Company Profile

Kikkoman is a Japanese firm, a public company listed on the Tokyo and Osaka stock exchange which is the world’s largest producer of soy sauce and a leading promoter of the product in non-Asian markets. Kikkoman is in every Japanese pantry and almost every US one, as well.

Offerings of Kikkoman include varieties of soy and other cooking sauces, seasonings, and soy milk, foodstuffs, sake and wines, and some biochemical products. In the Asia/Pacific region, it sells ketchup, canned corn and fruits, and other Western foods under the licensed Del Monte brand. Business is divided into four segments: manufacture and sale of domestic foods (the largest), and others; and manufacture and sale of overseas foods, and wholesale. Kikkoman's roots run deep -- more than 350 years old, the company is controlled by the descendants of its founding families.

The company’s International operations are divided into 2 divisions: one for manufacturing and selling Kikkoman products and the other for the wholesale foods business. It sold products in more than 100 companies through a global network of sales offices, manufacturing plants and distribution centres.

In 2002, Kikkoman soy sauce alone represented 39% of Kikkoman’s total sales and nearly 66% of its operating income. The international presence generated 34% of its total revenue and 63% of its operating income.

Kikkoman as a Brand

Kikkoman had uniquely taken a Japanese product and created a completely new market for it around the world. It was extremely difficult for the company to change the taste preferences of the people for a product that is usually has a black opaque colour and has a strong harsh taste. Another problem for Kikkoman was that it has been focusing on a very localized product and wanted to make it a Global Brand. Despite of all these facts Kikkoman became a Global renowned brand in the world.

Kikkoman worked on the 2nd quadrant of the above matrix to make a new product in the market. In 1883, one branch of Mogi family making soy sauce in Noda officially registered with the Tokugawa Shogunate the Kikkoman brand name and hexagonal logo trademark. The brand name Kikkoman also has significance: Kikko meant tortoise shell and man meant 10,000 and according to Japanese the tortoise was thought to live 10,000 years and thus the brand