Group-01 Niche and Mainstream (PBME)

PRODUCT AND BRAND MANAGEMENT
CASE:NICHE TO MAINSTREAM
SUBMITTED TO SUBMITTED BY
Dr. S. John Manoraj Aditya(06PGDM-FPBM01)
Basavaraj Devaji(06PGDM-FPBM06)
Preksha Patil(06PGDM-FPBM31)
Praveen Kalanedi(06PGDM-FPBM21)
Shraddha Bongane(06PGDM-FPBM09)
Shraddha Narayan(06OGDM-FPBM41)
Varun(06PGDM-FPBM55)
Introduction:
Riku Nakamura, has relocated from Tokyo to San Mateo, California.
Launches kenko USA’s first foreign subsidiary.
Kenko rice crackers is a largest producer of rice crackers in Japan with $1billion turnover in domestic
market.
Rice crackers = Senbei
Their planned U.S stint had turned into stretch- because Kenko USA’s success slowed down.
Business grew modestly, sales 2% annually.
Riku aimed to expand Kenko crackers into mainstream U.S. snack aisles, but efforts have not yielded
results.
Patty’s pantry, a major discount supermarket chain, has contacted Kenko USA regarding an
agreement to create a private label line.
Rebecca Bairstow strongly supports Riku's partnership.
She aimed to promote Japanese rice crackers as healthy, gluten-free snack options, boost sales, and
increase profitability.
Riku's mentor, Fusao Saito, promotes direct-to-consumer outreach, requiring more resources and
time.
PUSHBACK:
We need to see more people buying your products before we can give you more space.
We can’t squeeze our top brands from Frito-Lay for something that isn’t a proven seller.
FRITO LAY:- It is a dominates the savory snacks category in the U.S.
The company market share:-
60% in potato chips (Ruffles),
72% share in tortilla chips (Doritos and Tostitos),
87% share in cheese snacks (Cheetos), and
62% share in other salted snacks.
Why shouldn’t rice crackers sit with other popular snacks?
Packaging,
Flavors,
Brand message are Japanese.
More and more people are eating gluten-free and avoiding fried food ( A $2.6 billion category in 2015, it is expected to grow to $7.6
billion by 2020. gluten free)
What about experimenting in a few stores?
Put us with rice cakes in one with crackers in another, with gluten-free in another, and see which sells best?”
I’d have to do it for I’d have to do it Every other new brand.
Methods :-
Demonstrate demand
Sampling
Coupon program.
How can we persuade you to try us in snacks now?
Higher slotting fee. (Bumping it from 30 cents to 50 cents per pack)
Time To Debrief
 Before heading to office Riku and Rebecca stopped to have a bite and
debrief at Starbucks
 Rebecca is in the favour of taking a deal offered by “Patty’s Pantry” a
private label.
Disadvantages of Private label:
Reduce per-pack wholesale price

Losing brand name, packaging, flavours (wasabi)
Fear of losing current partners (Retail).
 Advantages of Private label:
Huge reach
Patty’s Pantry is ready to place $4.5 million order
Can avoid sampling, slotting fees and advertising
Cost savings
Addition of new flavours that can help adapt to U.S tastes (barbecue
and Cajun).
RECOMMENDATION
 Riku is video conferencing with the executive team at headquarters in Japan. He tells them that the
company's growth has stagnated, but that he and his team have some new ideas to turn things around.
 One idea is to accept a private label deal from Patty's Pantry, a fast-growing chain that provides high-
quality food at low prices.
 This would quickly make Kenko USA profitable, but it would also mean that the company would be giving
up some control over its brand.
 Another idea is to ramp up grassroots marketing efforts, similar to what the hummus brand Sabra did to
break into the deli sections of mainstream retailers.
 This would be a more long-term investment, but it could pay off handsomely in the end.
 The CEO, Yuki Kato, asks Riku for a formal recommendation by next week. Riku is frustrated, but he
agrees. He knows that his team needs to come up with a solid plan if they want to stay in the US.
1) What was Riku’s Major Problem?
And how could he have solved it?
Riku's major problem was to make Kenko USA from a niche player to a successful mainstream snack
brand in the U.S.
He can solve it by choosing between
a) private label deal for quick profitability but potential loss of brand identity, or
b) branded marketing push with higher investment and longer-term establishment of the Kenko
brand.
2) Explain any three strategies used. According to you, do
you think the strategies used were really effective?
1. Globalization
2. Niche market
3. Own branding
3) What customer segment would be the most
promising for kenko’s rice crackers?
Health-concious consumers Snack Enthusiasts Gluten-Free

consumers
Asian Cuisine Enthusiasts Fitness Enthusiasts Vegan-followers
4) Is Rebecca right in her assumption that Kenko can use a private label to its advantage? What are the potential downsides to
pursuing the deal?
Potential Advantages:- Quick Profitability
Cost Savings
Distribution
Potential Downsides:-
Loss of Brand Identity
Limited Control
5) Does Riku need more help than he
realizes?
Riku faces complex challenges turning Kenko USA into a successful snack brand. The document outlines
strategies with benefits and risks, showing his struggle to choose. Seeking advice implies recognizing the
situation's complexity.
His decision impacts the company's future, brand, and profits. The ending question suggests uncertainty about
the best choice.
Due to complexity and impact, Riku might benefit from more perspectives or expertise
THANK YOU

Group-01 Niche and Mainstream (PBME)

Uploaded by

Copyright:

Available Formats

Group-01 Niche and Mainstream (PBME)

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Group-01 Niche and Mainstream (PBME)

Uploaded by

Copyright:

Available Formats

PRODUCT AND BRAND MANAGEMENT

billion by 2020. gluten free)

What about experimenting in a few stores?

Reduce per-pack wholesale price

Health-concious consumers Snack Enthusiasts Gluten-Free

Potential Advantages:- Quick Profitability

Loss of Brand Identity

You might also like