Japan Marketing News

Heineken Japan taps a cool new angle

Historically, international beer companies have faced some difficult challenges in Japan, especially when it comes to getting distribution in restaurants, pubs and clubs. Oftentimes local proprietors receive very strong incentives (cash!) to stock the brews of just one Japanese company or distributor, and that means that the door can be slammed shut on international brands—and other Japanese brands—right from the start.

Things can be rough even if a bar or restaurant is open to the idea of serving competing beers. International brands have to go head to head with Japanese companies offering a multitude of excellent brews, to say nothing of fighting it out with other world players.

What's a foreign company to do?

Starbucks Japan brews up new approaches

A couple of months ago, the international papers were buzzing about Starbucks' woes in the U.S. Analysts have been worried that the American market has been saturated, and this has been reflected in the stock price, which is down almost 50% versus last year.

The situation is somewhat different here in Japan. The market is not quite saturated and the brand continues to grow. Nonetheless, a number of threats loom on the horizon and the brand isn't going to be enjoying a cakewalk going forward.

Besides the ongoing encroachment of competing chains like Doutor, Excelsior, Tully's and Seattle's Best, McDonald's has also joined the fray in earnest by launching its McCafe shops which feature a broad lineup of specialty coffee drinks. Additionally, the burger chain recently introduced a better quality brew called Premium Roast at its regular restaurants for just 100 yen per cup (about $1).

But that's not all.

Effective Japanese TV ads: Mr. Donut

Here's a cute little ad from Mr. Donut Japan that reaches consumers on a couple of levels.

A young man comes to visit his grandmother and brings with him a little gift to share with her—a box of Mr. Donut doughnuts. They sit down to enjoy the treat, and just when the man picks up a doughnut to take bite, the old woman stops him with an admonition, "don't be rude," and hands him a set of chopsticks. Then they go on to eat their snack together with traditional Asian utensils.

On the one hand, the commercial goes for an easy laugh that appeals to both teens and adults, who'll find it funny that the unsophisticated grandmother thinks good decorum means never eating with your fingers, and senior consumers, who may remember a time when mass- produced doughnuts were new to Japan, and still had enough mystique to cause confusion about the best way to eat them.

On the other hand, the ad serves as a gentle reminder that doughnuts are a nice little gift to bring on a family visit (Japan has a complex gift-giving culture), and thus broadens the brand's appeal to purchase occasions that extend beyond personal consumption.

To see the commercial in its entirety, click here.

New mega outlet mall to open near Tokyo

While outlet malls have been around in the US since the 1980's, they didn't make an appearance in Japan until 1993. Since then, more than 20 have opened nationwide, supported by enthusiastic Japanese consumers who enjoy bargain prices and the American-style open-space shopping and dining experiences these facilities offer.

The two largest developers of outlet malls in Japan are US-based Chelsea, which focuses on high-end brands in their Premium Outlets, and Mitsui Fudosan, whose Mitsui Outlet Parks comprise mostly mid-level brands with a few accessible premium outfits mixed in. At present, each company has six malls, but that's about to change next month.

On April 10, Mitsui is slated to open Mitsui Outlet Park Irima, a mega mall with 204 stores, restaurants and other offerings. Amongst the foreign brands to be represented there, some of the better-known include Banana Republic, Cole Haan, Tommy Hilfiger, Coach, Diesel, Eddie Bauer, Bruno Magli, and Furla (go here for a full list of shops).

If you're interested in visiting, access will be fairly easy from Tokyo. By train, you catch a special express from Ikebukuro that takes a little over 30 minutes to reach Irima-shi Station (using the Tobu Ikebukuro train line). From there, it's another 15 minutes by bus. Full access info here (in Japanese).

McDonald's Japan to get more "mega"

First there was the MegaMac, then the MegaTeriyaki, and now McDonald's Japan is set to launch its third series of "mega" burgers next month.

This time we're looking at twin sandwiches (fraternal, not identical) dubbed "MegaTomato" and "MegaTamago." They're to be available as limited-edition products from December 14 to January 10 at McDonald's throughout Japan.

These burgers differ from the seminal MegaMac in that they each replace one of the four beef patties with other mainstay McDonald's ingredients. With the MegaTomato, it's a slice of tomato and two strips of bacon. For the MegaTamago, it's one of those Egg Mcmuffin eggs ("tamago" means "egg" in Japanese), plus the same two bacon strips.

Why McDonald's Japan is coming out with this latest round of big sandwiches is obvious—they're hoping to repeat the success of earlier "mega" products.

Why they've chosen these particular iterations is likely a combination of practicality and the search for a marketing hook.

Tasty recent brand launches in Japan

- The latest in Japan's never-ending stream of magazine launches came off the other day when the Japanese version of the popular Australian fashion journal RUSSH was released on October 27. RUSSH, which is only about three years old, distinguishes itself from other fashion publications by reporting almost exclusively on the lifestyle and fashion choices of models—an approach which is sure to appeal to Japan's celebrity and model conscious magazine readers. This is the first time RUSSH has published a localized version in a foreign market.

- Speaking of first time launches in foreign markets, Paris' wildly popular gelato purveyor DELIZIEFOLLIE is opening its first shop anywhere outside France tomorrow in Shibuya. DELIZIEFOLLIE was founded in Paris by Gaeta Pellegrino, whose family has been involved in the gelato industry for two centuries. Since the brand is new to Japan, we haven't had the chance to sample any of their frozen delights — but if they taste as good as they look on the the Japanese website, the lines here are likely to be as long as they are in Paris. DELIZIEFOLLIE is located in Shibuya on the first floor of the Parco Zerogate Building, which can be found on the street that runs between Seibu Department Stores' buildings A and B, as you proceed toward Tokyu Hands from the direction of JR Shibuya Station (or if you prefer, at the foot of Spain-zaka).

Duskin launches new donut brand in Japan

As new market entrants soon discover, the competitive response in Japan is incredibly fast.

Krispy Kreme opened its first shop in Japan in mid-December of last year.

Just four months later, Duskin, which owns the Mister Donut franchise, is responding with the launch of a new donut shop brand called "and on and." The first one opened on Koen Doori in Shibuya just a few days ago.

Conceptually, the brand is more high-end than Mister Donut and is targeted at "adults" in their 20's, 30's and 40's. The shop interior has a modern, hip feel and the menu features environmentally-friendly coffee that's received the seal of approval from the Rain Forest Alliance, an international non-profit dedicated to the preservation of tropical forests and sustainable farming. Besides donuts, and on and is offering sandwich-style pies and vegetable stick breads, presumably to attract the lunch crowd. Donuts and breads go for 180-250 yen while pies are priced at 300 yen.

Whether and on and is going after the same consumers as Krispy Kreme isn't yet clear (to me, this concept feels only half thought out). What is probable, however, is that the new brand was launched to draw consumer attention back to Duskin assets following the hoopla surrounding Krispy Kreme's opening. This kind of defensive launch is often seen in Japan.

* Need more information on this subject? Click here.

Burger King mulling introduction of Japan-only products

Burger King, which is about to take yet another stab at the Japanese market, appears to be considering adding localized items to its menu here. According to an April 11 news report, four Japan-centric items are under consideration with a decision forthcoming by the end of this month. While other foreign-based hamburger chains like McDonald's and Wendy's have long invented food and beverages tailored to the Japanese palate, as far as I know, this is this first time Burger King has contemplated following suit.

Burger King, which is ranked second to McDonald's in its U.S. home market, has attempted to crack the difficult Japanese market twice previously. The brand will begin its latest assault in June, with the first BK restaurant slated to open in Shinjuku, followed soon thereafter with a second shop in Ikebukuro.

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McDonald's Japan to reintroduce MegaMac

Following the wild success of a test launch earlier this year, McDonald's Japan will reintroduce the MegaMac, a 292 gram (10 oz) sandwich with four beef patties, for another limited run starting April 1. The MegaMac was so popular during the first phase that shops throughout the country ran out of both beef and buns and had to implement rationing that limited sales at specific locations to just 30 or 50 sandwiches each day.

For beef lovers, this is great news. But McDonald's Japan still has a few logistical kinks to work out before it can offer the MegaMac on a more regular basis. In this next round, the big burger will be available during just three, 5-day blocks as follows: April 1-5, April 15-19, May 1-May 5.

* Need more information on this subject? Click here.

U.S. bakery au bon pain to open in Japan this summer

Amongst the things I miss about the U.S.—especially in the a.m.—are the American-style muffins you can get at nearly every coffee shop, convenience store and supermarket. Sure, Japanese bakeries have fantastic bread—some even have one or two varieties of muffins—but they're quite a different species from their Yankee counterparts.

Well, it looks like there's a possibility that I'll be able to satisfy my muffin hankerings in the not-too-distant future right here in Tokyo.

au bon pain, the U.S. bakery franchise, has announced a franchise deal with Reins International (owners of local restaurant chains Gyu-Kaku, Doma Doma, et. al, and operators of the Red Lobster franchise in Japan). The first au bon pain bakery café is expected to open this summer in one of Tokyo's office districts, with two more shops on the way before the end of the year.

According to a Nikkei article, the chain will offer its basic U.S. menu of breads, sandwiches, salads, etc., along with localized baked goods such as melon bread and an pan (red bean bread). Portion sizes will be reduced 20-30% to match Japanese tastes.

In terms of strategy, au bon pan will be begin by targeting business people with shops located in office buildings.

Reins International hopes to open 300 outlets in Japan in the next five years.

* Need more information on this subject? Click here.