"One well-known econometric study concluded that improvements in technology accounted for 22.4% of Japanese economic growth between 1953 and 1971…Adding scale economies…raises technology’s contribution to 45% of growth"
QR codes, these allow a person with a mobile phone to take a picture of the code and be taken directly to the stores website without typing a URL address. Many businesses in Japan have quickly picked up and adopted the technology. This can be seen for a number of reasons. 1. Japanese customers like variety so a new feature or angle will get their attention,
2. Japanese customers like convenience (quick, simple, effortless, do without talking and practical) so anything that offers convenience will be quickly adopted used and built into their repertoire of consuming skills and knowledge.
QR codes are an important part of Japanese Marketing that allow Japanese customers to access websites quickly and directly by mobile phone. For example: when you commute by train in Japan, many advertisers on trains include QR codes on their in train ads and a commuter who is standing in the train can easily scan the code on the ad with their mobile phone and be taken directly to the advertisers website without typing in a URL. It is quick, simple and convenient. If you have ever commuted in Tokyo on the subway you will know that even unfolding a newspaper to read in peak hour is an amazing skill that requires dexterity & patience. Trains are so crowded you can't even fall over if you wanted to. A quick scan of the advertisement next to you can keep you engaged and help you pass away the long commuting time by taking you away to another place. Quickly & effortlessly.
McDonalds Japan was quick to put QR codes on the wrappers of products including hamburgers.
Video: QR codes on McDonald's hamburgers in Japan.
McDonalds uses QR codes to allow consumers to find out about nutrition information of their products. For example: the calories, fat, etc. Each product has a unique QR code that provides specific information on each product. Consumers in Japan just take a photo of the code on the product and the code takes them to a mobile website that allows them to learn more about the product. Very nifty!
Not only large businesses are using QR codes but also small business. Below is an example from a local free magazine that Tokyo shoppers can find in their letter box that shows local retailers alerting them to new products & specials. Readers of the magazine are drawn to scan a QR code for a retailer to learn more. Technology is changing the face of local business in Japan.
Video: Local free magazine - Local businesses promote their services using Quick Response codes.
A typical pizza flyer in Japan is an excursion of choice, variety and colour. Exotic toppings, innovative mixtures of ingredients, two main sizes (25cm and 36cm) and a plethora of base choices (four on a typical Domino's Pizza flyer). Japanese customers can order their pizza with Domino's in three ways, 1. Online and get a 5% discount or 2. Order from their mobile phone using a QR code on the flyer and 3. by telephone. Unfortunately in a big city like Tokyo, there are no time guarantees, with close to 6000 people per square kilometre. If you love pizza you may drool at the choices and amazing variety Japanese customers have.
Video: Qr codes on Pizza Flyers in Japan
According to a survey conducted by GMO Japan Market Intelligence in 2012, 96% of Japanese consumers were aware of QR codes, followed closely by South Korea (95%) and China (92%). Other interesting insights include how customers use QR codes. It found that most consumers scanned a code to receive a digital coupon and to receive information about a product. When it came to QR codes and advertisements, the survey found that consumers scanned QR codes they found on websites 62% whereas 28% of consumers scanned codes for outdoor advertising. Source: Mobile Commerce Press.
QR codes are now found in a wide variety of places and formats. Consumers are widely aware of them, use them and rely on them to gain a coupon or to get more information.
Have you considered a QR code for marketing your product or service?
Case Study: The Launch of McDonald's Cinnamon Melts in Japan
Wednesday 19th September, 2008
Video: Cinnamon Melts in Japan
"Cinnamon Melts" debut at McDonald's Japan today which is a new product that adds to the current "Premium Roast" coffee strategy
"Cinnamon Melts" a deliciously addictive sweet dessert first launched in the USA in 2006 debut today in Japan. The new sweet dessert will add weight to the new premium roast coffee strategy adopted earlier in the year. Recent additions to the strategy include the McBakery line of three pastry products (sugar croissant, melon pan and Choco Danish). The addition of Cinnamon Melts boosts the line and makes it more robust.
The new sweet dessert is clearly aimed at making McDonald's a new destination for Japanese coffee drinkers and sweet dessert eaters who in the current economic climate are looking for value anywhere they can get it. Before the launch we considered if the product may be altered to adjust to Japanese palates, for example: reduced sugar content and reduced calories.
I purchased a Cinnamon Melt in Tokyo this morning and by all accounts the product seems to be an exact replica that is of the USA product from our taste test, we may be corrected on this but this is our initial assessment. The taste is rich, full bodied and takes the eater on a dreamy cruise. It seems to have a more stronger flavor than a "Cinnabon". The difference between the two products, Cinnamon Melts and Cinnabon is that Cinnabon is a dry pastry, whereas Cinnamon Melt is a wet pastry that is it is served hot and has a runny sauce. The sauce seems to accentuate the taste. When you eat a section of a Cinnamon melt and dip it in the sauce that collects at the bottom of the container the strong tasting sauce adds to the pastry content and makes the taste a very deep flavour experience.
A real surprise here with the new "Cinnamon Melt" it is full taste and a real bonus for coffee drinkers who enjoy the bitter taste of coffee with a balancing sweet dessert taste. If this theme takes off in Japan it will be a success. Also as we are coming in to the autumn season and the weather cools down, a warm product could be just what customers want when they take a break.
Will the new product impact major competitor Starbucks Japan? The new pastry adds to the premium roast coffee strategy by offering depth to the product line up, image and range. Priced at 290 yen, it is well placed to please coffee drinkers. A premium roast coffee costs 120 yen, up 20 yen with a recent price rise and when the Cinnamon Melt is added the order the total experience adds up to 410 yen.
It seems a pretty clumsy price combination but it still comes in under 500 yen which is an important consumer price point in Japan.
Starbucks Japan has new coffee offers for drinkers through with two new initiatives, namely afternoon discounts and a new range of banana based products. No new coffee initiatives (cold pre-made Starbucks branded products available in some convenience stores) yet in Japan except for the recent launch of the new sandwich range "Filone" which adds to foods that complement their coffee products.
It is a shame that the recent coffee price increase took premium roast coffee off the 100 yen menu. In one sense it is a negative in that it could lose some customers who refuse to pay the increase or it could help to take the brand out on its own as a stand-alone product with its own team (McBakery and Cinnamon Melt) which could later be re-launched as a family brand particularly when McCafe rolls out further in Japan.
In summary, the new "Cinnamon Melt" is a good addition to the existing menu, it adds a reason for new customers to visit the store, adds a new product to the menu just as the season changes and the weather cools, it rewards existing coffee drinkers, adds a full tasting "western product" to the menu, adds a brand new taste to the menu, adds a new product to the existing and well branded premium roast coffee strategy, acts as an enticement for those who watch American TV dramas and have heard of cinnamon sweets such as Cinnabon (mums and kids) and finally keeps attention on McDonald's as a coffee provider. japan, japanese, customer, consumer, case study, launch, cinnamon melts, mcdonalds, news, new, www.japanesecustomer.com, @jcustomers, #japan, #japanese, #new, #video, #cinnamon, #mcdonalds, #video
Case Study: The Apple iPhone 3 launch in Tokyo, Japan.
Friday July 11 2008
Video: Launch of Apple iPhone 3 in Japan
The launch of the new iPhone 3G has been set up as a battle, much like Captain Perry and the Black ships. Will the iPhone change Japan and open the mobile phone market up? Today in Tokyo, we visited two locations. The Roppongi store and the Softbank display at Yodobashi camera in Akihabara to get a feel for how customers were reacting. What we found were many excited customers eager to line up, wait in the heat and purchase the phone.
We interviewed two customers who lined up and secured a phone. Steve, 29, from San Francisco "Apple have created a technology playground". As a frequent business traveller he was looking forward to use the phone to receive emails, use the internet and at last be global. Matthew, 32, from the United Kingdom, said he was looking forward to "synchronize his life" with the new iPhone. A feature that gives the new phone a point of difference to current Japanese models.
Recently NTT Docomo announced that they would soon release the "Blackberry" to personal users on August 1st. It seems the pressure from Apple's iPhone launch has already got players changing their thinking? The Japanese media picked up the launch. NHK 7 pm news featured the new iPhone as a story, displaying how the phone work using the touch screen which was seen as the most different feature compared to current Japanese phones.
Only time will tell if iPhone will impact the buying habits of Japanese customers mobile phone users but one thing for sure it has created a buzz and excitement. The real key it seems is if the new phone can be used easily by Japanese customers who currently use their thumb to access features and type emails on their current phones. If the Apple iPhone can do this quicker, simpler and in line with what current users feel comfortable with some say they may have a real winner.
For foreigners in Japan who want to own and use an iPhone the terms of use seem a little restrictive according to a Japan Probe post
The "show off" factor will certainly be an important part of the introduction. It really depends on how many hip 'salarymen' try to impress their co-workers in the office with the new gadget and what their reaction will be. If the office talk reveals the new iPhone is more convenient. Watch out!
Back in 2005 it was hard to find an Apple iPod shuffle in Tokyo; you had to hunt them down from Japanese importers. Major Japanese chains in Tokyo initially didn't stock them and store salesmen wrote them off as poor quality, unreliable and focused on poor battery life.
But in less than two years the familiar white headphone cords began appearing on subway trains as the word spread and Apple took over Japan with portable digital music players. Apple stores in Tokyo and on Osaka's Midosuji dori soon became cool places to hang out on the weekend and if you could find a space inside the store you could see the Japanese fascination with your own eyes. The same kind of fascination photography, cameras and motorbikes had years before. Apple's appeal in Japan is hard to pin down in a single concept but words like cool, unique, creative, independent, freedom, personal and simple come to mind. Japanese customers love variety and new items will always get a look at but success is a different story.
Brand, reputation, service and convenience all play an important part in the total package. Round 1 Apple. Round 2? japan, japanese, consumer, customer, apple, iPhone, 3, launch, tokyo, case study, news, insight, strategy, video, marketing, www.japanesecustomer.com, @jcustomers, #japan, #japanese, #apple, #iphone, #casestudy, #video, #retail, #technology
The Launch of Contactless Coupon (Kazasu) in Tokyo, Japan.
Video: New mobile phone coupon system at McDonalds Japan.
Recently while visiting my local McDonalds store I came across a new system being introduced called Kazasu Coupon. Kazasu is a Japanese word that means to hold over something. In this case it means to hold your RFID equipped mobile phone over a McDonalds in store reader for walk in and drive thru customers. The new service allows customers to sign up on their mobile phone and get an email newsletter on a mobile website that is full of coupons.
They select the coupon they want and then scan their phone over a reader in store which redeems their coupon and allows them to also pay for the meal using the mobile wallet system on their phone if they have signed up for it. By registering online McDonalds gets customer preferences and therefore can customize preferences based on each customer's history of previous orders. Initially the launch is for 175 select stores and then a rollout throughout the whole network of over 3800 stores nationwide.
Coupons are an important part of business as they give customers a reduced price as an incentive to buy this is increased when the product is a favourite of the customer in question. Adding value is an important marketing strategy in the fast food market as the deflationary economy is forcing companies to lower prices as consumers have seen wages drop and have become ever more cautious when spending discretionary income even on fast food which is a low cost, low involvement product.
The other feature of this system is that it allows customers to order without talking which is a big feature in many Japanese restaurants a big but understated factor in convenience. For example: Many restaurants have tickets where you pay and select as you enter allowing you to not talk the whole time in store accept to confirm your order and size of rice. Customers can also pick their order before entering the store using the online menu and coupons which saves time at the drive thru or in store and will pave way for emailing order to store so order is ready before you arrive.
1. Scan a QR code with your mobile phone
2. Send an empty email to the address given
and 3. From your mobile phone menu list from your phone provider for Kazasu Coupons (Japanese)
Speed is also an important component in fast food strategy. The quicker you can serve a customer the more customers you can serve particularly at busy periods. My local McDonalds often has over eighteen staff behind the counter at busy periods which is a very large staff but they have to manage both drive through and walk in customers and they are on the corner of a major highway leading into Tokyo that has a lot of traffic. The store is twenty four hour and is always full of customers.
The Kazasu Coupon system is all in Japanese so is aimed at Japanese customers only at the moment. But as we know Japan is an innovative test market of new ideas that often make their way overseas to other markets.
We hope this program continues to expand and add value for the customer by drawing on the convenience of technology that allows personalization, purchase history, coupons and contactless payment that is quick.
1. Complete application form
2. Pick your coupon
3. Make order to microphone using the coupon number and the quantity required
4. Then when pick up food you scan phone to redeem coupon
5. Payment
All essential ingredients in keeping Japanese customers happy. Look for this new innovation at a store new you in the near future.
Copyright belongs to respective owners, this is an informational article using photographs taken of publicly available in store sales material.
Case Study: Shaka Shaka Chicken at McDonald's, Tokyo. Japan
Sunday January 27th, 2008.
Video: The Shaka Shaka Chicken bag at McDonalds Japan.
I first noticed the introduction of Shaka Shaka Chicken in January 2008. The chance to eat a filet of deep fried chicken at McDonalds for 100 yen seemed like a good deal and a great meal. The deal is that you get a good sized filet of coated chicken which is deep fried and placed in a paper bag that is perforated. The choice of three types of baste are available that you as the customer apply yourself by adding to the bag and then shaking the bag to baste the chicken. The three flavours of baste are lemon pepper, cheese and pepper.
As a menu item it is best described as a snack rather than a meal. Good with a drink and another menu item or just by itself. Chicken is a common menu item in Japan and to see it as an offering in the 100 yen menu item is a good sign of a balanced range of choice between a hamburger, fries and salad.
My preference of baste was "Lemon Pepper" as I felt it would be the least strong taste of the other choices. After going through the routine of adding, shaking and tearing the bag, I was surprised by the taste that was better than imagined!
A key element in the design of the Shaka Shaka range must be the fact that you can hold the chicken without touching it with your fingers hence the perforated bag. In Japan customers never touch the food when they eat in fact eating with direct contact with the food is pretty much unheard of. Onigiri rice balls can be eaten by holding the wrapper, bento lunch boxes can be eaten with chopsticks. Even hamburgers at McDonald's in Japan are carefully eaten with the wrapper peeled back for a number of reasons 1. to stop sauce from dripping 2. to control the eating of the burger and 3. to stop droppage. It really is an art form in Japan how they eat without touching food!
Video: Packaging of Shaka Shaka Chicken Bag I imagine this menu item is particularly aimed at the large segment of junior and senior high school students all over Japan that descend on McDonald's daily in the afternoon to hang out with friends, do homework and to have some free space from school and home to enjoy a tasty snack with pocket change
Video: The new Nissan GT-R in the showroom, Tokyo.
Living in Japan gives you the opportunity to see and be a part of major events for many of the global Japanese brands. Seeing the launch of the Nissan GT-R at the 2007 Tokyo motor show and then to view it for sale in dealer showrooms was a great chance to learn about Japanese marketing firsthand. The car was launched a few months later in the USA on July 7, 2008.
The iconic Skyline circular round tail lights with the white inserts have become part of the draw for fans and enthusiasts all over the world who have followed the brand since its inception. The favourite of street racers the Skyline shares a special place in the hearts of racers and make it a much sought after car.
At the Tokyo motor show the car was one of the centre pieces of the show. The room it was in was constantly full, like the Tokyo subway in morning rush. A sea of people jostling, jumping and trying to get as close as they could to the front of the stage to get a better look of the car and to take snaps on their mobile phone cameras for their blogs, emails to friends or their own collection. Either way the floor was a busy place around the Nissan GT-R.
There was a lot of media talk around the show saying that a lot of foreign brands would not be attending the Tokyo motor show and where bypassing it for more important markets in Asia. For those that attended the show the Nissan GT-R was the main reason to attend. A new model for a classic brand in a changing marketplace.
The GT-R is straight out of an anime movie and deeply reflects the robot obsession of Japanese culture from the gun metal gray paint job to the exterior lines and it's over stature. Just like Gundam!
The six stage paint for the silver model and the eight stage paint for the super silver colour make you want to look twice when the car drives by. The Premium version of the car comes complete with a rear spoiler that matches its body paint whereas the Black Edition has a carbon fibre spoiler.
Both versions come complete with the following items: high intensity discharge or (HID) headlights, LED daytime running lights, tail lights and brake lights, a dual heated outside mirrors that fold, doors that are flush-mounted aluminum and that are accentuated by four five inch exhaust outlets with polished tips. As you read this article can you imagine yourself behind the wheel of one of these machines?
The engine of the GT-R generates 357 kW or 478 horse power and the car with airbags weighs in at just under 2000 kilograms. It has a six speed dual clutch semi-automatic transmission that also allows three different shift modes for other driving conditions. With a recorded top speed of around 195 miles per hour the performance aspect does not let enthusiasts down. Look for one on a street near you and listen for the growl!
Video: The new Nissan GT-R in the showroom, Tokyo.
Living in Japan gives you the opportunity to see and be a part of major events for many of the global Japanese brands. Seeing the launch of the Nissan GT-R at the 2007 Tokyo motor show and then to view it for sale in dealer showrooms was a great chance to learn about Japanese marketing firsthand. The car was launched a few months later in the USA on July 7, 2008.
The iconic Skyline circular round tail lights with the white inserts have become part of the draw for fans and enthusiasts all over the world who have followed the brand since its inception. The favourite of street racers the Skyline shares a special place in the hearts of racers and make it a much sought after car.
At the Tokyo motor show the car was one of the centre pieces of the show. The room it was in was constantly full, like the Tokyo subway in morning rush. A sea of people jostling, jumping and trying to get as close as they could to the front of the stage to get a better look of the car and to take snaps on their mobile phone cameras for their blogs, emails to friends or their own collection. Either way the floor was a busy place around the Nissan GT-R.
There was a lot of media talk around the show saying that a lot of foreign brands would not be attending the Tokyo motor show and where bypassing it for more important markets in Asia. For those that attended the show the Nissan GT-R was the main reason to attend. A new model for a classic brand in a changing marketplace.
The GT-R is straight out of an anime movie and deeply reflects the robot obsession of Japanese culture from the gun metal gray paint job to the exterior lines and it's over stature. Just like Gundam!
The six stage paint for the silver model and the eight stage paint for the super silver colour make you want to look twice when the car drives by. The Premium version of the car comes complete with a rear spoiler that matches its body paint whereas the Black Edition has a carbon fibre spoiler.
Both versions come complete with the following items: high intensity discharge or (HID) headlights, LED daytime running lights, tail lights and brake lights, a dual heated outside mirrors that fold, doors that are flush-mounted aluminum and that are accentuated by four five inch exhaust outlets with polished tips. As you read this article can you imagine yourself behind the wheel of one of these machines?
The engine of the GT-R generates 357 kW or 478 horse power and the car with airbags weighs in at just under 2000 kilograms. It has a six speed dual clutch semi-automatic transmission that also allows three different shift modes for other driving conditions. With a recorded top speed of around 195 miles per hour the performance aspect does not let enthusiasts down. Look for one on a street near you and listen for the growl!
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