A Typical Japanese Marketing Example from1300th Anniversary of Nara

The year 2010 marks the 1,300th anniversary of the establishment of Japan's old capital, Nara Heijo-kyo and therefore Nara is celebrating 1300th anniversary this year. On October 10 the author visited Nara, utilizing a one-day ticket issued as a campaign to promote the anniversary. Having thoroughly enjoyed the day she realized there are some factors that, to her, are “very Japanese” about the campaign/promotion, which could be shared as a best practice example worldwide.




1. What are the anniversary and the campaign?



1) The anniversary



Although Kyoto had long been the Capital of Japan and now Tokyo is, Nara, with many historic temples and national treasures of Zen culture, was the Capital of Japan 710 – 794, i.e. it became the capital of Japan 1300 years ago. In contrast “Heian-Kyo”, a word used to describe Kyoto being the capital, “Heijo-Kyo” is used to describe Nara being the capital (Kyo = capital). The anniversary is named “Heijyo-Sento” 1300th anniversary (sento = capital relocation) http://www.1300.jp, and is celebrated throughout 2010.



2) The campaign

As part of the celebrations, a special device has been exhibited at the Heijo Palace site, the main venue for the anniversary events in Yamato-Saidaij in Nara. Variety of events and exhibitions are held for visitors to enjoy and learn histories and experience the facts and lives of people 1300 year ago.



All the campaign is planned, executed and promoted by Nara City, with supports from 498 companies/organizations and 69 individuals (as of August 31), with the objective of attracting tourists/visitors nationwide and abroad. For this reason, 1-1/2 (fee = 300 yen) or 2-1/2 (fee = 500 yen) hour guided tour in Japanese is available (fee necessary), and 1 hour guided tour in English, Chinese and Korean is also available (free of charge). Checking out of self guide system is also available in Japanese, English, Chinese, Korean and French (fee = 500 yen).



2. How is the campaign promoted and in what is it unique and Japanese?






1) An image character called “Sento-kun”



An image character called “Sento-kun” was created, that symbolizes the anniversary. The name “Sento-kun” comes from “Heijyo-Sento” 1300th anniversary (sento = capital relocation) http://www.1300.jp mentioned earlier in the article, and “kun” is the word added at the end of a name “usually of boys” in Japanese. The idea of creating such a character is a typical marketing methodology in Japan, and the naming is very Japanese.

Parts constituting Sent-kun are all related to symbols of Nara. The total figure is of Buddhist monk including the monk featured in “Monkey Magic” who travelled Silk Road to bring back Buddhist scriptures in Nara period. Horns on the head symbolize deer, many of which are found in Nara Park, a historic spot of Nara. And, the total touch is made cute, more of an animation character, which are common and popular in Japan.



Sento-kun is used in all advertising and promotions (TV, magazine, online, prints and collaterals including catalogues and flyers etc.). There was also a doll of Sento-kun shown in the photo, which is about 1 meter high in the station near the house of the author, which is about 1 hour ride on the train, and the pamphlet/flyer holder of the campaign was next to Sento-kun doll. The author had seen advertising in the trains about the campaign but it was with the doll that she found the pamphlet with more details.



2) Sento-kun Heijo-kyo one-day train ticket



14 public and private railway companies and a nearby bus company collaborated to develop one-day train ticket called “Sento-kun Heijo-kyo” to help visitors from Kansai/Kinki area to travel to the place. The fee is fixed according to from which line the visitor travels from.



With this pass, visitors can travel from the station of his/her residence to the transfer station to change to Kintetsu Line and then to the nearest station of the event venue and go back the same route. He/she can also ride on a shuttle bus to and from the nearest station to the event venue or Nara station to the event venue.



Moreover, he/she can also ride as many times as possible the specified zone of Kintetsu Line including the nearest station to the event venue and of some others with good access to historic sightseeing spots including national treasure temples and Nara Park. The author utilized the pass to visit 2 national treasure temples called Yakushiji Temple http://www/nara-yakushiji.com and Toshodaiji Temple http://www.toshodaiji.jp near Nishino-kyo station after the event. (She could have visited Todaiji Temple famous for the Big Buddha and Nara Park near Nara Station but she had been there a few times and wanted to visit somewhere she had not yet visited).



One-day (or few days) pass of trains including Shinkansen bullet train is a popular marketing and promotion methodology in Japan because train is a popular transportation for many Japanese. What is unique about the Sento-kun Heijyo-kyo one-day train ticket is the fact that so many companies collaborated. The many other one-day ticket/pass are of one railway companies.



3) Complimentary ticket, a tie-up promotion of the one-day train ticket



Complimentary ticket, a series of coupons that can be used in specified restaurants and cafes (about 30 altogether) near Nishino-kyo and Nara, was included in the one-day train ticket. With the complimentary ticket valid for one day, the author benefited 10% discount for her lunch and 50 yen discount for her coffee.



Coupons are probably popular in many countries but this kind of coupon system developed with collaboration with many shops might not be so popular. This tie-up campaign turned out to generate synergy, and is extremely effective in Japan.

How to Make Smart Japanese Eco-Consumers Buy

Osaka – Tuesday, August 10, 2010

Nikkei, Japanese newspaper specialized in business and economy, reported on August 7 on how “eco-consumption (economic and ecological consumption)” is proliferating among Japanese customers, and how companies are trying to adapt to such customer needs. Japanese customers today seek to gain maximum satisfaction with minimum spending for maximum ROI of their spending. Such trend attributes to deflation, making consumers becoming smarter and smarter, to set extremely high standard in selecting which products and services to buy. In order to make smart consumers buy、 companies are forced to review their business strategy.


1. Why Japanese consumers are so keen on value of “low price plus something”?

It is because of their annually income when deflation is proceeding as mentioned in the previous article How Japan Can Get Out From 10 Year Deflation?. According to the survey executed by MLHW (Ministry of Health, Labour and Welfare), average income of household with children in 2008 was only 6.88 million yen, a decrease by 12% from the peak in 1996. It is estimated that the average income has decreased further in 2009 due to the worldwide economic recession.

2. How companies are trying to convince smart Japanese consumers to buy?

There are mainly 2 ways in which Japanese companies are trying to convince smart Japanese consumers to buy their products and services.

1) “Trial” campaign

This helps and encourages customers, who evaluate and select products and services severely based on their values, to judge ROI (return on investment) and convince that the products and services is pays and match their value.

Tryfeel Collection http://www.tryfeel.jp is a website that provides services that lets its customers try for the first time with average of 30% discount services hotels, restaurants and hair dressers, of total of 2800 nationwide. Its membership increased tenfold to reach 120,000 in only a year. The business owner of Tryfeel comments that women who want to confirm if they can really be satisfied with the products and services with discount rate by trial have increased in particular.

Companies have also been attentive to this strategy as an effective way of acquiring new customers. Many companies including high class hotels have already joined this campaign and the membership hotels and shops quintupled in a year. The Ritz Carton Osaka spokesperson says it pays as long as the new customers are converted into repeaters.

2) Low price plus appealing value/benefit(s)

Low price alone does not appeal to smart customers today; appealing value/benefit(s) to consumers in addition is also crucial. Defining the additional value/benefit(s) appropriately is the key for this strategy.

A good example is laundry detergent, “Attack NEO”, Kao’s best selling brand that recorded sales of 20 billion yen in a year. What attracted consumers is the product concept of “minimizing the number of rinsing in addition to its strong detergency. The concept leads to not only saving water and electricity but also wash time by 13 – 16 minutes in the case of drum-type washer-dryers. Decrease in wash time is supported by housewives, who are happy that that the product saved their house work time.

3. What new trend of customer and company relationship is emerging?

A few new trends of relationship between customer and company are emerging, that was not seen in the old economy. Underlying issue of this new trends is “who decides price = reflecting the value of products and services”.

1) Joint purchase

This is a system in which individuals (not acquaintances) connected on the Internet get together and seek to buy the products they want with low price. In this system, the more individual buyers get together, the lower the price it gets, sometimes as low as the price of major customers.

A good example is the recent case of a leading website called “netprice” http://www.netprice.co.jp/. The website attracted nearly 100 people who wanted to buy Adidas sports shoes in the beginning of this month. As a result, the price dropped from the original recommended retail price of 9,450 yen to 4,700 yen.

2) New pricing restaurant

In this new system, it is the customers that decide the price they pay for the foods they enjoyed.

The event of this new system is held by an organization that supports opening of restaurants in Yokohama. On average 3 events are held monthly and 40 reserved seats are always fully booked. The chef monthly serves cuisines full of originality. There is a rule that each customer needs to pay an admission fee of 1,500 yen and additional fee of the cuisine, maximum being 15,000 yen; however, the final decision of how much to pay is made by the customers who have enjoyed the cuisine.

4. What is the assumed future trend?

The eco-consumption style for lean and streamlined household spending is assumed to accelerate. It is companies and business owners that can catch up with such change and trend that is to open the new door to the new market. There are 3 points that support this assumption.

1) Result of recent household budget survey

A private financial institute recently executed household budget survey, to which 78% respondents answered that they want to review their household budget to make it lean and streamlined. Citizens just need to cut spending when their income decreases. In such a situation, if they want to maintain pleasure of living, they would need to focus more than they used to on spending performance in addition to low price.

2) Further downsizing in household budget

Household budget, that supports consumption, is estimated to further downsize in number of household as well as amount per household (= income). Due to low birthrate, the growth in the number of household in Japan is estimated to become negative in 2016 and by 2030 it will become 48.8 million households, which is decrease by 4% from today.

3) Shift in main players of consumption market

The main players of consumption market will shift to people in 20s and 30s, who have been brought up in “2 decades of deflation” when household budget has been downsizing. This is assumed to accelerate the trend of eco-consumption.

What is Japanese Valentine’s Day and White Day?

Osaka – Friday, March 12, 2010

March 14 is White Day in Japan. This event is a twin celebration of Valentine’s Day that is unique to Japan. Taking the opportunity of celebrating this event in Japan, the author would like to introduce Japanese style Valentine’s Day and White Day, that are closely associated with business and marketing strategy of confectionery makers in Japan.

1. Let’s recap on Valentine’s Day. What is Valentine’s Day?

Valentine’s Day, celebrated on February 14, is a day when people express affinity and love. In Western countries, both men and women exchange presents on Valentine's Day.　Valentine's gifts are not limited to chocolate - red roses are another popular present. Cards are popular as well, in which quite often people write “From Your Valentine” and “Be My Valentine”.

2. How is Valentine’s Day in Japan? How did it start and became popular?

Concept of Valentine in Japan is basically the same as in Western countries and has become quite popular also in Japan as well; however, it has developed into something unique to Japan. Valentine was first introduced to Japan by a western person who came to Japan before World War II. Soon after, confectionery makers and retailers tried to make it pervasive to promote their sales, but it was in the latter half of 1970s that it became quite popular in Japan. Valentine’s Day in Japan became something quite unique, with manners and customers unique to Japan; females giving males to express their affinity and love.

3. How is Valentine’s Day unique in Japan?

The following four points are the characteristics of typical Japanese style Valentine’s Day, making it so unique.

1) Chocolate is common as a gift, although recently some people started to give other things such as cookies and candies.
2) Gift is given usually one-way, from females to males, not vice-versa.
3) Valentine’s Day is regarded as an opportunity for females to express their affinity and love to males.
4) Gift-giving or chocolate from females to males (bosses and colleagues) at work is also quite common. This is called “giri-choko”, which is literally “obligatory chocolate” in English. This is not accompanied by romantic feeling.

4. How confectionery makers started to promote Valentine’s Day to boost their business?

How and when confectionery makers first started to make the most of Valentine’s Day in order to boost their sales is not clear. There are many as five different theories, ranging from a theory that a Kobe confectionery maker started in 1936 to a theory that was started in Sony Plaza in 1968, but none is ascertained.

What is ascertained is that department stores exerted much effort to make Valentine’s Day pervasive in Japan with chocolate promotion but in vain, and therefore many people viewed that Valentine’s Day would not become popular in Japan around 1968. However, from 1970s, chocolate sales for Valentine’s Day increased drastically. This was because teenagers started to give chocolates on Valentine’s Day at first, and this manner spread to adults in 1990s. Thus, although it is often said that popularity of giving chocolates on Valentine’s Day in Japan attributes to hidden strategy of chocolate makers, it also attributes to the fact that some factors of Valentine’s Day were well accepted to Japanese society and some others were not, and to the option selected by consumers.

5. What is White Day? What is the relationship with Valentine’s Day?

When Japanese unique Valentine’s Day of females giving chocolates to males to express affinity and love has taken root in 1980, another manners and customers unique to Japan formed, which is White Day, celebrated on March 14. The custom of White Day is quite unique to Japan. On this day, men have the opportunity to give gifts to women in return for the chocolate they received on Valentine's Day.

The custom of White Day started in 1978 in Fukuoka City when a sweet maker came up with the idea as a way to promote sales,. Then White Day campaign was planned and approved by nationwide association of candy industry and the first campaign was held in 1980. The fifth campaign in 1984 has become such a huge success that they were short of products, and 1984 was named as the year that in which White Day has taken root.

White Day has slowly become an annual custom among many men, although Japanese men were not accustomed to giving gifts like this to women, and then the custom eventually spread throughout the country. At first, the gifts given to women were often something white, like marshmallows or white chocolate, hence the name White Day. Recently however, various gifts are given, regardless of the color, and currently, companies from many different fields are developing products for the day.

6. How Valentine’s Day evolved to support confectionery business in Japan by strategic marketing of confectionery makers?

Valentine’s Day has become a truly national event, and since 2000 it has been evolving and diversifying. Indeed, it is said that as much as 20% of yearly chocolate consumption in Japan is of this day. Besides the primary concept/objective of females giving chocolate to males to express their affinity and love, other concept and forms have emerged. Females started to give to their lovers and husband. People started to give to males/females they admire. And small children started to take part in Valentine’s Day as well.

“Giri-choco” or obligation chocolate mentioned earlier that had taken root much earlier has been declining since latter 1990s, but other types of chocolates have emerged. One is “tomo-choco”, literally “friend chocolate” in English, which started to spread from around 2000. It now supports Valentine business in Japan and its market has been growing steadily since latter 2000s.

Another type of chocolate that has emerged is “gyaku-choco”, literally “reverse chocolate” in English. This is chocolate given to females from males, which is reverse of the traditional Japanese style Valentine’s Day. This has been promoted aggressively by Morinaga in particular by various campaigns from latter 2000s. Some people also started to buy “jibun-choco”, literally “self chocolate” in English, as a gift to oneself from around 2000.

7. Is success and popularity of Valentine’s Day and White Day (business) the result of marketing effort of confectionery makers?

The author would answer “yes”. It is no doubt that marketing campaign and promotion by confectionery makers was successful in activating chocolate (and other confectionery) consumption. Confectionery makers have been making much effort in marketing valentine specific products and other novelty products such as imported product, accompanied by huge campaigns, for business of Valentine’s Day and White Day. With their effort, they have to execute marketing strategy meeting (potential) needs of Japanese consumers understanding their psychology and behaviour well, to create a new market, to build and establish business of Valentine’s Day and White Day, when in general, consumer consumption and spending is in the low level after Christmas, the business/sales peak of the year.