Rkitchen Foods Corporation: International Marketing Plan

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DR. FILEMON C.

AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS


Golden Gate Subdivision, Talon III, Las Piñas City

International Marketing Plan


RKitchen Foods Corporation
GROUP 1

Submitted by:
Leader: Damaso, Ivan Luis
Tabucol, Vanneza
Mapindan, Valerie
Aldaya, Erica Jane
Pandaan, Joanna Alexis
Suerte Jr, Jonil
Detecio, Norvin
BSBA Marketing IV-7

Submitted to:
Prof. Jamaal T. Villapaña
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

CHAPTER I: COMPANY AND COUNTRY BACKGROUND


1.1 Company Background
RKitchen Foods Corporation

RKitchen Foods Corporation specializes in artisanal foods prepared with the highest
quality ingredients and imbued with the comfortable sweetness of home and the rich flavors of
the Philippines. Each product is created using our own proprietary recipe and is ideal for
anybody looking for quick pop-and-serve food.

RKitchen was founded in 2019 by Ryan and Reese Regua as an inspiration to transform
the family's beloved family recipe into a company. After a few changes to enhance the product,
such as eliminating fish bones and decreasing the strong fermented scent, the couple introduced
RKitchen's Burong Isda to the market. They tripled its product options in a year, allowing users
to enjoy them at any time of day.

RKitchen Foods Corp. operates a plant in Puelay Villasis, Pangasinan where they prepare
the ingredients, cook them, and pack their products. The firm is growing by leaps and bounds
because of hard work, a strong social media presence, and solid consumer interaction. Currently,
RKitchen has over 280 distributors and over 1,000 resellers. RKitchen products can be purchased
on Shopee and Lazada, as well as at certain supermarkets and grocery shops around the country.

1.2 Company Vision, Mission and Objective


Vision
Our vision is our guiding star; it gives us clarity on how we conduct ourselves towards
our work, our clients, and each other. We want to be a delightful part of everyone’s day by
creating pleasurable food and enabling individual tastes.

Mission
We are committed provide a wide variety of quality homegrown food choices that are
simple, tasty, and convenient, which everyone can enjoy at any time and any place.

Objective
To provide high-quality products by employing industry best practices and adhering to
the most stringent local and international standards.
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

1.3 Company Logo

Figure 1. Company Logo

1.4 Product Profile


Artisanal Food
It is a product manufactured in a non-mechanized or traditional method and the products
are often made using techniques passed down through the generations. Tastes and processes,
such as fermentation, are allowed to evolve slowly and naturally rather than being sped up for
mass manufacturing. These include cheeses, breads and baked goods, charcuterie and other foods
that involve preservation or fermentation, home preservation or canning processes, and fruit
preserves, cured meats, beverages, oils, and vinegars.

The term "artisan" may also refer to the manufacture of one-of-a-kind cuisine and the
preservation of a gourmet tradition. However, the technique is not frequently used even now
since it is usually created and manufactured over a lengthy period of time, and the proper amount
of components are required because it affects the taste of the products.

Chili Garlic Oil, Spicy Burong Hipon, Burong Isda, Spicy Burong Isda, Burong Hipon,
Garlic Tinapa, Lemon Garlic Tinapa, and Spicy Garlic Tinapa are just a few of the artisanal
delicacies available at RKitchen. And recently, they just released three new flavors: Sweet and
Spicy Tuyo, Garlic Tuyo, and Spicy Garlic Tuyo in Vinegar.
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

1.5 Organizational Chart

Managing
Director

Marketing Production
General Manager
Manager Manager

Purchasing Wholesalers Production

Production
Accounting Retails
Control

Customer
Service

Figure 2. Organization Chart

1.6 Host Country Background


Japan
Japan is an island country off Asia's east coast and one of the world's most
technologically advanced societies, and as a result, it has the world's third largest GDP. Japan is
well-known for its exquisite gardens, which are meticulously constructed and maintained and are
considered as a kind of fine art. It has a total of 6,852 islands and those islands were originally
connected to Asia's eastern coast until tectonic upheaval led them to separate, forming the Sea of
Japan. Japan has a population of 126 million people. Their national capital is Tokyo and has the
world's largest city population. Japan is mostly mountainous and forested, despite its steep
terrain and generally poor soils, with only 11.6 percent of the country's land covered by
agricultural land, allowing for the cultivation of a diverse range of crops. Japan, located on the
Pacific Ring of Fire, has a number of hydrothermal features such as geysers and hot springs. The
country is frequently struck by earthquakes, tsunamis, and volcanic eruptions.
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

Japan is a constitutional monarchy ruled by an emperor. The current emperor is Akihito,


who wields little political power and serves primarily as the country's symbolic and diplomatic
leader. The vast majority of Japanese people (99%) speak Japanese as their first language and
people practice a syncretic blend of Shintoism and Buddhism. Japan, once one of the most
warlike nations in the early 20th century, now frequently serves as a voice of pacifism and
restraint on the international stage.

1.7 Rationale for introducing the product for the respective country
Japanese traditions consist of different types of variations in everything throughout the
world. Their culture mainly focuses on a deeper understanding of things, even in food, much like
the very influence that they have managed to create from the early beginnings of the colonial
period. The Philippines was one of the countries that Japan tried to conquer. The cultures of both
English and Spanish were once again mixed together by another. Japanese culture separates itself
from the world when we talk about food, because in Japan, food is a serious business.

The practice of making food in Japan is very delicate and respected. With this type of
product, the carefulness and process resemble the very culture they have. Also, fermented foods,
or "buro," are widely used in Japan as a type of cuisine or delicacy. Given that only 11% of
Japan’s surface is suitable for cultivation, the agricultural sector is small in Japan. Artisanal
products will serve as a complimentary product to Japanese cuisine, as they can both act as
additives or as an independent delicacy.

CHAPTER 2: ENVIRONMENTAL ANALYSIS


2.1 ECONOMY AND TRADE ANALYSIS
2.1.1 Statistics on the Economy and Trade
According to the Economic Complexity Index, Japan was the third largest economy in
the world in terms of GDP (current US dollars), the fourth largest in total exports, the fifth
largest in total imports, the 27th largest in terms of GDP per capita (current US dollars), and the
first most complex economy in 2019 (ECI). Services, as in the majority of industrialized nations,
account for the majority of GDP (around 62 percent of GDP). Wholesale and retail commerce
(about 7% of GDP) and real estate are the two most important services (around 6 percent of
GDP). Manufacturing is Japan's economic engine, accounting for approximately 22% of GDP.
Construction is also important, contributing for around 5% of GDP. According to Trading
Economics global macro models and analyst estimates, exports in Japan are anticipated to reach
6300.00 JPY Billion by the end of this quarter.
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

Along with its reliance on exports, Japan is highly susceptible to risks. This vulnerability
has become apparent in recent years, as its economy has undergone periods of recession in
connection with the global economic slump. The worldwide economic crisis caused by the
Covid-19 epidemic has had a severe impact, with the country's GDP falling to -4.8 percent in
2020. One of the primary reasons of the collapse was a dramatic decline in domestic spending,
which accounts for more than half of the Japanese economy. Exports have also decreased as a
result of the pandemic's impact on global trade. Japanese authorities immediately passed a USD
1 trillion economic stimulus program, which is equivalent to more than 20% of Japan's GDP and
is more than double the amount of the stimulus package implemented during the 2008 financial
crisis. GDP growth is anticipated to accelerate to 3.3 percent in 2021 and stabilize at 2.5 percent
in 2022, according to the IMF's April 2021 projection, subject to post-pandemic global economic
recovery.

Figure 3. Economic Overview

Figure 4. Current Strength of Yen and Peso


DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

Exports
Value 641,282,568,357.00
Value Growth -9.11
YoY (%)

Imports
Value 635,402,321,812.00

Value Growth -11.85


YoY (%)

Figure 5. Japan's export and import of all commodities

A. Japan's exports 2020 by country


 China with a share of 22% (141 billion US$)
 USA with a share of 18.5% (118 billion US$)
 Korea with a share of 6.96% (44 billion US$)
 Other Asia with a share of 6.92% (44 billion US$)
 Hong Kong with a share of 4.99% (32 billion US$)
 Thailand with a share of 3.98% (25 billion US$)
 Singapore with a share of 2.75% (17.6 billion US$)
 Germany with a share of 2.74% (17.5 billion US$)
 Vietnam with a share of 2.66% (17.1 billion US$)
 Malaysia with a share of 1.96% (12.5 billion US$)

B. Japan's Top Exports in 2020


 12.6% ($80 billion): 8703 - Motor cars and other motor vehicles principally designed for
the transport of persons (other than those of heading 87.02), including station wagons and
racing cars.
 4.52% ($29 billion): 8542 - Electronic integrated circuits and microassemblies.
 4.21% ($27 billion): 8708 - Parts and accessories of the motor vehicles of headings 87.01
to 87.05.
 3.11% ($19.9 billion): 8479 - Machines and mechanical appliances having individual
functions, not specified or included elsewhere in this Chapter.
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

 1.9% ($12.1 billion): 9010 - Apparatus and equipment for photographic (including
cinematographic) laboratories (including apparatus for the projection or drawing of
circuit patterns on sensitized semiconductor materials), not specified or included
elsewhere in this Chapter; negatoscopes; projection screens.
 1.66% ($10.6 billion): 8901 - Cruise ships, excursion boats, ferry-boats, cargo ships,
barges and similar vessels for the transport of persons or goods.
 1.39% ($8.94 billion): 8541 - Diodes, transistors and similar semiconductor devices;
photosensitive semiconductor devices, including photovoltaic cells whether or not
assembled in modules or made up into panels; light emitting diodes; mounted piezo-
electric crystals.
 1.29% ($8.32 billion): 7108 - Gold (including gold plated with platinum) unwrought or in
semi-manufactured forms, or in powder form.
 1.24% ($7.96 billion): 8429 - Self-propelled bulldozers, angledozers, graders, levellers,
scrapers, mechanical shovels, excavators, shovel loaders, tamping machines and road
rollers.

C. Japan's imports 2020 by country


 China with a share of 25% (163 billion US$)
 USA with a share of 11.2% (71 billion US$)
 Australia with a share of 5.63% (35 billion US$)
 Other Asia with a share of 4.21% (26 billion US$)
 Korea with a share of 4.18% (26 billion US$)
 Thailand with a share of 3.74% (23 billion US$)
 Vietnam with a share of 3.46% (22 billion US$)
 Germany with a share of 3.34% (21 billion US$)
 Saudi Arabia with a share of 2.9% (18.4 billion US$)
 United Arab Emirates with a share of 2.58% (16.3 billion US$)

D. Japan's Top Imports in 2020


 6.84% ($43 billion): 2709 - Petroleum oils and oils obtained from bituminous minerals,
crude.
 5.36% ($34 billion): 2711 - Petroleum gases and other gaseous hydrocarbons.
 3.93% ($25 billion): 8525 - Transmission apparatus for radio-telephony, radio-
telegraphy, radio-broadcasting or television, whether or not incorporating reception
apparatus or sound recording or reproducing apparatus; television cameras; still image
video cameras and other video camera recorders; digital cameras.
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

 3.53% ($22 billion): 8471 - Automatic data processing machines and units thereof;
magnetic or optical readers, machines for transcribing data onto data media in coded form
and machines for processing such data, not elsewhere specified or included.
 2.97% ($18.8 billion): 8542 - Electronic integrated circuits and microassemblies.
 2.66% ($16.9 billion): 3004 - Medicaments (excluding goods of heading 30.02, 30.05 or
30.06) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put
up in measured doses (including those in the form of transdermal administration systems)
or in forms or packing for retail sale.
 2.51% ($15.9 billion): 2701 - Coal; briquettes, ovoids and similar solid fuels
manufactured from coal.
 1.73% ($11 billion): 2710 - Petroleum oils and oils obtained from bituminous minerals,
other than crude; preparations not elsewhere specified or included, containing by weight
70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils
being the basic constituents of the preparations; waste oils.
 1.62% ($10.3 billion): 3002 - Human blood; animal blood prepared for therapeutic,
prophylactic or diagnostic uses; antisera and other blood fractions and modified
immunological products, whether or not obtained by means of biotechnological
processes; vaccines, toxins, cultures of micro-organisms (excluding yeasts) and similar
products.

Japan and the Philippines have clearly established a positive and peaceful relationship, as
well as significant bilateral trade and investment ties. According to the Manila Bulletin, the
Philippines and Japan have achieved near-balanced trade relationships and these are expected to
further improve under the new tax and incentive regime of the Corporate Recovery and Tax
Incentives for Enterprises (CREATE) Act. From the annual trade statistics of the Japanese
Ministry of Finance, Japan's exports to the Philippines totaled 940 billion yen and imports to
Japan from the Philippines were 990 billion yen in 2020, which RKitchen can utilize to somehow
easily penetrate the artisanal food in the market in Japan. Another factor is that Japan's enterprise
confidence is above average, implying that newly established businesses will likely succeed.

Japan has always been a top performer in Asia in terms of its economy, owing to its low
inflation rate of 0.2 percent and unemployment rate of 2.6 percent. As a result, RKitchen would
be quick to cope with economic trends as well as compete on pricing with its competitors.
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

2.1.2 Overview of the Japanese Agricultural Sector, Forestry and Fishing, Minerals, Labor,
Industrial Sector, Transportation and Telecommunications, and Roads and Railways.

A. Agricultural Sectors
The country's agricultural land availability is restricted due to the country's hilly
topography. Japan's primarily barren and young soils need careful husbandry and fertilization.
However, Japan's generally rainy climate provides the country with ample freshwater resources.
The overall predictability of the precipitation pattern, along with Japan's large network of rivers
that may be utilized for irrigation, allows for significant wet-rice (paddy) farming. The
agricultural sector continues to employ a relatively large proportion of the working population in
relation to its contribution to national income, but many farmers have left agriculture for
employment in manufacturing and the service sector, and most others rely on outside
occupations for a significant portion of their income.

Japanese agriculture is distinguished by a significant number of relatively, inefficient


farms. Larger farms are more typical in Hokkaido, where plots of 25 acres (10 hectares) or more
are widespread. Rice is the country's main crop. Wheat, barley, potatoes, fruits, vegetables, and
tea are other major farm products. Livestock raising, an essential farming activity, is typically
done on a relatively small scale; Hokkaido has the largest dairy and beef cow herds. The
majority of feeds must be imported, and manufacturing expenses are too expensive. Furthermore,
with the liberalization of beef imports in 1991, international competition began pressuring
farmers to adopt more efficient production methods, hastening the trend of establishing larger,
more commercial cattle enterprises.

B. Forestry and fishing


Wood resources are abundant, consisting mostly of broad-leaved and coniferous forests,
however much of the forestland is in difficult mountain regions. Japan's extensive forest cover,
forestry remains a minor industry. This is due in part to the inaccessibility of many of the
greatest stands, but it is also down to the fact that the domestic logging sector is very
unprofitable, plagued by high labor costs, an aging workforce, and other inefficiencies. Even
with restricted logging in reforested regions, local output cannot meet Japan's massive need for
timber, and the vast majority of Japan's wood needs are imported.

Japan's food supply is highly reliant on the sea. It boasts one of the world's biggest fish
harvests, with much of it coming from long-distance deep-sea fisheries. Despite its strong
worldwide position, Japan's fishing industry is facing significant challenges. Overfishing and
pollution have reduced local fisheries, particularly in the Inland Sea, while deep-sea fishing is
restricted by nations that claim a 200-nautical-mile (370-km) economic zone in their coastal seas.
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

The number of fishermen has been steadily declining, and, same as with agriculture, the fisheries
labor population has been quickly aging. As a result, local output has been declining for decades,
and imports of fisheries goods now outnumber exports. Aquaculture of fish, shellfish
(particularly clams and oysters), and seaweed is becoming increasingly important; cultivated
pearls have always been prominent.

C. Minerals
Japan's mineral deposits are limited, with few exceptions, and the grade of those extracted
is frequently poor. Coal, iron ore, zinc, lead, copper, sulfur, gold, and silver are among the most
plentiful minerals (in relative terms), with tungsten, chromite, and manganese coming in second
and third. Japan also has abundant limestone resources. Nickel, cobalt, bauxite (aluminum ore),
nitrates, rock salt, potash, phosphates, crude petroleum and natural gas are all in short supply.
Hokkaido and Kyushu have the most coal deposits. Oil reserves are limited, and domestic
oil production accounts for just a small portion of Japan's total oil consumption. The major oil
and gas-bearing belt stretches from northern Honshu on the Sea of Japan to Hokkaido's Ishikari-
Yufutsu lowlands. Natural gas deposits have also been discovered in eastern Chiba prefecture
and offshore east of Tsukuba. Japanese iron ore is of low grade and is mostly mined in northern
and western Honshu. Copper reserves, formerly Japan's most significant metallic resource, are
virtually exhausted; lead and zinc are frequently discovered in combination with copper.

D. Labor
Japan's labor force participation rate remained unchanged in March 2021, at 61.9 percent,
compared to 61.9 percent the previous month. Japan's labor force participation rate is updated
monthly, with an average rate of 62.5 percent from January 1968 to March 2021. The statistics
set a record high of 67.9 percent in June 1968 and a record low of 58.5 percent in December
2012. The Labor Force Participation Rate in Japan is provided by the Statistical Bureau.

According to the most recent statistics, Japan's population will reach 125.7 million in
December 2020. In September 2020, Japan's unemployment rate stayed unchanged at 3.0
percent. In February 2021, the country's monthly earnings were 2,521.4 USD.
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

Figure 6. Labor Force Participation Rate of Japan: Monthly

Figure 7. Demographic and Labor Market of Japan


DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

E. Industrial Sector
Japan's industrial sector is very diverse, producing anything from basic items (such steel
and paper) to cutting-edge technology. The country dominates the automotive, robotics,
biotechnology, nanotechnology, and renewable energy industries, and it is home to some of the
world's top electrical device manufacturers. Its industrial sector accounts for approximately one-
third of GDP and employs roughly one-quarter of the Japanese workforce. The COVID-19
pandemic has had a significant impact on the Japanese economy, as it has on most others, with
GDP growth falling by 28% in the second quarter of 2020. While the economy recovered by
23% in the third quarter, it still confronts several problems.

For many years, the Japanese government has focused on increasing productivity through
automation. This has become even more important since the country's low birth rate and growing
life expectancy have decreased the domestic workforce (those aged 15 to 64 years) to fewer than
60% of the overall population. According to the McKinsey Global Institute (MGI), Japan will
require a 2.5-fold increase in productivity growth over the next decade just to maintain its current
(pre-COVID) GDP growth rate, according to Yasushi Hasegawa, co-founder and director of
Tokyo-based trade and investment consultancy Fenetre Partners.

Japan is the top leader in the manufacturing of robots and factory automation systems.
Five of the top ten worldwide manufacturers are Japanese, and they account for an estimated 30
percent of the global market. The COVID-19 pandemic and subsequent decline in economic
activity have made automation an even higher priority in Japan, prompting the movement toward
digitalization and allowing more people and processes to go online. Following the
implementation of quarantine measures, an increasing number of businesses have begun to
utilize robots to assist in providing a contact-free environment for customers.

Architecture is a lofty, generation-spanning subject in Japan; the country is home to a


wealth of magnificent, time-honored temples, as well as a slew of new architects eager to push
the creative frontier. When it comes to the Japanese built environment, the juxtaposition of old
and modern is quite predictable, considering the country's reputation for both innovation and
forward movement, as well as cultural preservation. The Japanese regions of Kyoto and Osaka
are also thriving design hotspots, but Tokyo is often regarded as Japan's most fruitful
architectural hotspot.
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

F. Transportation and telecommunications


Until the late 19th century, the majority of Japanese people went by foot. Small wagons,
carts, or palanquins (kago) pulled by men or animals were the only modes of transportation. The
first railway line was established between Tokyo and Yokohama in 1872, and others quickly
followed, despite the difficult terrain, which necessitated the building of several tunnels and
bridges. Japan today boasts one of the most advanced transportation and communication
networks in the world. Tokyo, in particular, is an enormously huge transportation hub; especially
notable are the Keihanshin metropolitan area which comprises the three cities of Osaka, Kobe,
and Kyoto—and Nagoya. Other cities, like Kita-Kyushu, Fukuoka, Sapporo, Sendai, and
Hiroshima, serve as regional centers.

The greatest volume of intercity or interregional passenger and freight transit occurs
between the two major metropolitan areas. Kyushu is linked to Honshu via the world's first
undersea railway tunnel (developed in 1941), a double-decked undersea road tunnel (constructed
in 1958), and a massive suspension bridge (opened in 1973). With the completion in 1988 of a
railway tunnel connecting Hokkaido and Honshu, as well as multiple-span railway-road bridges
connecting Honshu and Shikoku, all four of Japan's major islands are now connected by surface
transportation.

G. Roads and Railways in Japan


The expansion of Japan's road network lags behind the country's overall economic
success, and it is notably inadequate for the country's huge number of vehicles. Road
development is restricted by the low amount of land available in relation to population. The first
limited-access expressway opened in the early 1960s, and by the early twenty-first century, the
country had a developing network of such roadways. Within their respective built-up areas, the
metropolitan regions of Tokyo and Osaka have rather large expressway networks. Surface street
layouts in Japanese cities, on the other hand, are diverse and can restrict traffic flow.

In the decades that followed, Japan constructed large intraurban and suburban train
networks; the era between the two World Wars, in particular, had seen the construction of many
railroad lines to the suburbs to meet the demands of an increasing number of middle-income
individuals. The first subway was established in Tokyo's central core in 1927, and it has since
grown into one of the world's most comprehensive networks. The Japan Railways (JR) Group of
companies, created in 1987 when the state-run Japan National Railways (JNR) was privatized,
forms the backbone of the country's large passenger train network. The high-speed Shinkansen
("New Trunk Line") is the crown jewel of the JR Group's activities.
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

The New Tōkaidō Line, named after the Tōkaidō , the historic roadway between Kyto
and Tokyo, commenced operations in 1964 and provides regular service on an electrified double-
track route between Tokyo and Ōsaka. Congestion on commuter rail transport has remained a
serious problem within the large cities. Although these commuter trains are renowned for their
cleanliness, punctuality, and safety, most are extremely crowded during rush hours, with some
trains carrying many more than the number of passengers for which they were designed. Services
have been gradually expanded to cope with the high demand.

2.1.3 Structure for Marketing Support


As global markets recover from the shocks caused by the COVID-19 outbreak, Japan is
gradually adopting digital as the future of its competitive advertising strategy. Here are the top 3
most popular advertising strategies in Japan:

 SNS (Social Networking Services)


Japan is known for being a collectivist nation, but social media trends are beginning to
portray a different tale. Take, for example, Twitter. Since the pandemic began in 2020, 58
percent more individuals have used their Twitter account. Following that is Instagram, which has
grown in popularity in recent years, with celebrities and influencers from fields such as fashion,
beauty, and music accounting for 80 percent of its most popular profiles. Last but not least,
Facebook. While it is still popular among people in their 30s in Japan, Facebook has evolved into
a viable alternative to LinkedIn for Japanese business executives. Unfortunately, for the
platform's development to be sustainable, it will have to rely significantly on advertising to build
brand recognition among extremely particular age groups.

 Video Ads
Japanese ads are always filled with eye-catching graphics and amusing or fascinating
characters. The three primary goals of video advertising are brand recognition, consideration,
and conversion. In the Japanese market, a favorable image is critical to capturing hearts and
minds. Creating a favorable impression entails presenting a clean, fashionable image, which
might include having a celebrity say how they utilize the product or service you're offering in
their everyday life. Aside from celebrity endorsements, Japanese customers are looking to see if
the product is economically scaled and priced correctly.

 Virtual Events
It may seem obvious that large-scale in-person events with huge showrooms and many
booths would be difficult to carry off in 2021. Take the yearly Tokyo Game Show, for example.
For the second year in a row, the event will be conducted online in 2021. Though they are
expanding on the success of their online system utilized in 2020, they guarantee a physical
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

component where journalists can do interviews and influencers may get unique access to the
latest game demonstrations. This compromise of allowing viewers virtual access to the same
content while restricting physical access to the usual event location will most likely become the
standard in the future.

These marketing techniques can be used to our advantage at RKitchen while also
bringing in new prospective customers. Since the beginning of 2021, 74.3 percent of Japan's
entire population has been using social media. We may utilize the platform to blend those three
approaches, such as uploading photographs and creative videos. To boost the attractiveness and
capture the attention of the audience, we will apply aesthetic themes and props to advertise our
product, as well as combine their favorite Japanese foods with RKitchen products, such as sushi,
tempura, ramen, fried rice, and others. To conclude, social networking sites (SNS) are the most
relevant and practical medium for RKitchen's product promotion.

2.2 POLITICAL AND LEGAL ANALYSIS


2.2.1 Stability in Politics
The politics of Japan is conducted within a framework of a multi-party bicameral
parliamentary representative democracy where the Emperor is the Head of State and the Prime
Minister is the Head of Government and also the Head of the Cabinet, which directs the
executive branch.

Japan's increasingly unpredictable domestic and international movements and policy


making conforms to well-established post-war patterns. The collaboration of factions within
government groups such as the elite bureaucracy, the ruling party and other important interest
groups makes it difficult to tell who exactly made the policies and who among them is
responsible. Japan's political power can be seen throughout the world, being one of the countries
that play an important role in East Asia. The Japanese Constitution prohibits the use of military
forces to wage war against other countries. Yet they make themselves a threat throughout the
land by just fixating themselves as a "self-defense force", on land, air, and even water. Through
this method, they are able to focus more on rehabilitating and cultivating the land more than
fighting. The application of new and easier policies in accordance with foreign investments by
companies and the use of modern technology pave the way for economic and agricultural
growth.
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

2.2.2 Incorporating business in Japan


Incorporating a business, either starting up a business or basically expanding a business,
needs simple methods. This includes having the right amount of capital, the registration of the
business name, having at least two residential employees other than you, and being a resident.
RKitchen Foods Corporation is one of the most matched food products that can be
introduced to Japan, for it offers almost the same practices in making artisanal food products. In
order for the RKitchen to be available in Japan, the following measures need to be taken:

1. Registration of the business address


 Registering the business's address means you cannot use your own residential
address, nor a temporary address, unless there are some. In some cases, you are
offered a place where you can put up your business office, just like JETRO's fully
furnished office rooms, which provide a rentable space for 50 days.

2. Capital and employees


You are required to do at least one of these:
 You can either open up a bank account with at least a capital of 5,000,000 yen.

 You should have 2 permanent resident employees other than you.


 Or have a capital of 2,500,000 yen and 1 employee.

3. You need a business manager visa.


 Either become a resident first using a Start-up Visa (valid for 6 months), or have a
Business Manager Visa. This will help you create your own company. This allows
you to open up a bank account; lets you register a resident address and lets you
register a business.

This basic preparatory procedure for establishing RKitchen will be necessary for the
company to engage in full-scale operations in Japan, yet there are also different kinds of
operations the company must be aware of.

A. Types of operations in Japan

Corporation (Kabushiki Gaisha - 株式会社)


Kabushiki Gaisha, commonly abbreviated as K.K and often translated as a Stock
Company, is a company whose stocks can be publicly traded on the open market. This is the
most well-known and common form of business structure used by Japanese companies and it is
viewed as more trustworthy than other business structures within Japanese society. (Also known
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

as a Joint Stock Company) A subsidiary is a separate corporation from the foreign company, so
the foreign company will bear the liability of an equity participant stipulated by law for all debts
and credits generated by the activities of the subsidiary.

 Representative office
Representative offices are established as locations to enable foreign countries to engage
operations in japan. This form of office does not require registration, but are not allowed to lease
real estates in its own name, nor open a bank account. Such activities require permission from
the head of the foreign company. It can either be a signed letter or a representative of the head of
the company.

 Branch office
Branch offices are established through the establishment of the business name. Upon
registration, branch offices may already start the operations of the foreign company in Japan.
They are not considered as a separate entity but as a branch of the foreign company in Japan.
They may open a bank account or even lease real estates. They are responsible for all the debts
and credits generated by the Japanese branch office under the name of the foreign company.

 Limited Liability Companies (Goudou Gaisha - 合同会社)


An LLC is the replacement of former business structure known as Yugen Gaisha. The
liability is limited and the registration cost is more reasonable than that of a corporation (K.K).
The stock of the company is not publicly traded on the open market. An LLC is still a new form
of business structure for Japan and not very well-known in society, therefore many people tend
to establish their company as a corporation (K.K).

B. Comparison of types of business operation


There are 4 types of business structures used in Japan: a Corporation (Kabushiki Gaisha),
LLC (Goudou Gaisha), General Partnership (Goumei Gaisha), and Limited Partnership (Goushi
Gaisha). The first two types of business structures are the most commonly used among Japanese
companies. Regardless of the kind of operation, prior notification must be submitted with the
Bank of Japan if commencing an operation in an industry where the Foreign Exchange and
Foreign Trade Act requires such notification when making an inward direct investment.
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

Table 1. Types of business operation

Branch office Subsidiary company Limited liability


Kabushiki-Kaisha Godo-Kaisha (limited partnership
(joint-stock liability company Kabushiki-Kaisha
corporation) (LLC)) (LLP)
Capital No capital 1 yen or more 1 yen or more 2 yen or more (if 2
partners)
Number of investors --- 1 or more 1 or more 2 or more
Liability of equity Unlimited Limited to amount of Limited to amount of Limited to amount
participants/parent equity participation equity participation of equity
company toward participation
creditors
Transfer of equity No equity May be transferred Unanimous approval Unanimous
participation share participation share freely in principle. of equity participants approval of
May be stipulated in (members) required partners required
articles of
incorporation that
approval of Board of
Directors is needed for
transfer of shares.
Number of Representative in See Tables 1-2, 1-3 No legally stipulated No legally
executives required Japan. 1 or more minimum. In stipulated
principle, all minimum. All
members are partners are
executive officers, executive officers
but a representative
member may be
appointed
Legally stipulated No legally See Tables 1-2, 1-3 No legally stipulated No legally
term of office for stipulated term term stipulated term
executives
Regular general Not required In principle, must be Not required Not required
meeting of held
shareholders every year
(members)
Possibility of public No equity Possible Not Possible Not Possible
offer of stock (equity participation share
participation share)
Possibility of Not possible. --- Possible Not possible.
reorganization into Need to separately (A joint-stock Need to separately
joint-stock close corporation may dissolve
corporation branch office and be reorganized into a partnership and
register limited establish
resignation of all liability company.) joint-stock
representatives in corporation
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

Japan, and
establish joint-
stock
corporation
Distribution of --- Allocated according to May be allocated at a May be freely
profits and losses equity participation different rate from allocated with the
ratio equity participation unanimous
rate if specified in approval of
articles of association partners
Taxation of profits Income arising Taxed according to Taxed according to No taxation of
within Japan is in profits of joint-stock profits of Godo- partnerships
principle taxed corporation and profits Kaisha and profits themselves.
allocated to allocated to Taxation of profits
shareholders participants allocated
to partners

D. Japan's trademark system


Japan's trademark law provides equal protection to both Japanese and international
nationals; the same trademark registration procedure and criteria apply to both Japanese and
foreign people. As a result, by providing adequate trademark protection to persons who do not
now reside in Japan, as well as corporations that do not already have head offices or branches in
the nation, Japan's trademark system fosters future development into the Japanese market by
foreign enterprises.

When it came to trademark registration, Japan followed the first-to-file rule. Trademarks
do not have to be in use (in Japan or overseas) to be registered in Japan; if the trademark owner
intends to use the trademark in the future, it can be registered in Japan as long as certain
requirements are satisfied. As a result, it is critical for any foreign company that intends to grow
into Japan in the future to consider registering for trademark registration in Japan before entering
the Japanese market. However, trademarks must be utilized within three years after registration
or they would be declared null and void. Using your trademark merely once throughout those
three years is sufficient to keep your trademark rights from being revoked. The duration of
protection is ten years from the date of registration.

The trademark right can be renewed every ten years by filing a renewal request within six
months of the expiration date. When a trademark is registered, it is protected from illegal use of
same or similar trademarks by anyone else; such use may be a violation of civil or criminal law.
Trademark owners suffer as a result of the illicit sale of counterfeit brand-name goods. Trading
in such counterfeit things is a serious offense under Japanese law, and in many circumstances,
illegal dealers of bogus brand-name goods are punished with criminal (rather than civil) offenses.
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

E. International registration of trademarks


In general, an application for registration with the Japan Patent Office is required to
secure trademark rights in Japan from within a foreign nation. However, the two methods listed
below may be preferred options.

a. Application according to the Paris Convention


If you only intend to seek for trademark registration in Japan or a few other
countries, filing your application under the Paris Convention may be a good option.

b. Application according to the Madrid Convention


Considering Japan is a party to the Madrid Agreement, there is an additional
option when filing an international trademark application that includes Japan. Based on
the application you first submitted in your home country, you can file an international
application and register trademarks in certain countries under this method. This is a
particularly useful method for multinational corporations with interests in many nations
across the world.

F. Application and registration fees


Naturally, applying for and being granted registration of a design incurs fees. The fees for
this process in Japan are as follows.

1) Application fees
a. 16,000 yen per design
b. Note that the above amount is the official fee only, and does not include patent
attorney's fees, fees for design drawings, etc.

2) Registration fees
A registration fee is required when registering a design; however these fees differ from
those of trademarks. The design registration fee for the first year is 8,500 yen and an annuity
must be paid each year in order to maintain the validity of the design rights. The annuities are as
follows.
Years 1 through 3: 8,500 yen per year
Years 4 through 10: 16,900 yen per year
Years 11 through 20: 16,900 yen per year
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

In order for RKitchen Food Products to penetrate the market of Japan, the company
should consider applying and meeting the requirements as soon as possible. Accordingly, if the
process of registration goes smoothly, with the unique business name, it would be easier for
RKitchen to register the company and be able to set its trademark properly.

2.3 SOCIO CULTURAL ANALYSIS


2.3.1 Marketing Implications of Languages, Dialects, and Dialects
Japanese (Nihongo) is considered as one of the most used languages in Japan. Although
popular not only in Japan, this language is also popular in neighboring countries and even in
Western countries. It is widely used in Japanese television, schools, and is considered as the
common language. Japanese culture tends to be very nationalistic. Other languages are only used
by a minority of the population. But this does not cut them off from other languages, for Japan
also has dialects. You can classify them into the four following groups: Eastern Japanese (Kanto,
Tohoku, Hokkaido), Western Japanese (Osaka, Kyoto, Shikoku), Kyushu, and Hachijo dialects.
From a linguistic point of view, Japanese dialects, like those in any other language, can be
recognized by the changes in certain parts of speech.

Firstly, there is vocabulary. You’ll find that certain words vary greatly between regions.
For example, kawaii (cute) becomes aishiraka in the Hakata dialect. Differences in vocabulary
also might include slight changes in expression. To say "throw away the garbage," standard
Japanese speakers would use the verb suteru, which means to discard something. However, in
Hokkaido dialect, suteru is replaced by nageru, which means to throw a ball or a rock. Secondly,
there are copulae. These are desu and da in Japanese and are usually used at the end of sentences
or clauses. The Osaka dialect is famous for its unique usage of Japanese coupulae. Da becomes
ya, which can sometimes make the speaker sound a little riled up, and yo becomes wa. In
standard Japanese, the latter is usually considered a more feminine sentence-ender.

In western businesses, English is known as the universal language, but only a minority of
the population in Japan uses this language. Learning such a language will be a necessary step in
order for RKitchen to properly communicate with the people of Japan.

2.3.2 Religion, Norms, Value System, and Marketing Implications


Religion
Japanese religion is a mixture of Buddhism and Shintoism. Though it is not preached like
in western cultures, nor is it considered a doctrine, it is still considered a doctrine. It is a moral
code, a way of living and a type of moral belief. Japanese religion is also a private, family affair.
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

It is separate from the state; there are no religious prayers or symbols in a school graduation
ceremony, for example. Religion is rarely discussed in everyday life, nor is it discussed in
homes, and the majorities of Japanese do not worship regularly or claim to be religious in fact.
However, most people turn to religious rituals at birth, marriage, and death and take part in
spiritual matsuri (or festivals) throughout the year.

Respecting one religion is necessary at all times, as it shows manners, respect, and
benevolence. The founders of RKitchen practice a religion that is very different from that of the
Japanese, but this is neither a barrier nor a hindrance. It is only a new type of concept the
company is willing to adopt.

Norms
Japanese culture really separates them from other countries. This is proven in the way
they cultivate such norms that people follow out of whim. These norms are already existing but
invisible. From childhood, Japanese children are already taught such strict yet unconfined ways
of living. This does not make them harbor any negative effects towards others, but only makes
them more disciplined and civilized. In reality, these cultural norms may look difficult and scary
to do for foreign visitors, yet it is only another step of knowledge and connectivity to oneself and
others.

Bowing out
The most famous and most used societal convention is the bow. Everyone uses the bow
when saying thank you, hello, goodbye, and even when apologizing. It is a form of greeting and
gesture as a term of respect, gratitude or remorse.

There are several forms of bowing, such as the 45-degree saikeirei bow, used for
moments of sincere apology or to show the highest respect, or the 30-degree keirei bow, which is
also used to show respect to superiors. The eshaku 15-degree bow is semi-formal and used for
greetings when meeting people for the first time.

Taking off footwear


In contrast to Western cultures, it is customary to remove footwear in Japan when
entering any form of traditional guesthouse, home, or restaurant. Because Japanese people
traditionally use tatami floors or wooden floors in their homes, entering with a shoe will
intentionally put dirt in the places where they sleep, sit, and eat.In practice, it not just helps
maintain cleanliness but also shows respect.
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

Respect in name only


The suffix "san" is often used when you refer to someone else and is a term of respect. If
referring to Mr/Mrs, you would say, "Ichinose-san or Yaoyoruzu-san". There are many other
different forms of suffixes, and they may differ based on how they are used.

Eating
Before eating a meal, the Japanese put their hands together and use the term
"Itadakimasu" (I humbly receive). After the meal, it is polite to say "Gochiso sama deshita"
(thank you for the meal). One may sit down in a public place and eat or stand at restaurant/shops,
but walking and eating is not polite and is considered as bad manners.

Tipping
Tipping in Japanese restaurants or other places where many westerners will expect to tip
The Japanese will always give the best service they can and do their jobs proudly. A waiter or
chef would never accept a tip and, in the worst-case scenario, would consider it offensive.
Because it might mean that their service is not well given or they did something wrong.

Values
Values are very prominent in Japanese culture, from personal to societal manners. Values
can be seen everywhere, in speech, body language, and even in perspectives. Japanese people are
very cautious in everything. Men and women employ somewhat different speech patterns, with
women making greater use of polite forms. Certain words are identified as being used in
masculine speech and others as feminine. Values begin in the family and later extend to larger
groups such as the neighborhood, school, community, and workplace. Dependence on others is a
natural part of the human condition; it is viewed negatively only when the social obligations it
creates are too onerous to fulfill. Such values are instinctively followed, not because they are a
rule, but because they are already the norm. A very normal occurrence in their normal lifestyle.

2.4. TARGET MARKET/COMPETITIVE ANALYSIS


2.4.1 Target Market/ Mode of Entry
RKitchen Foods Corp specializes in creating unique and profound homemade artisanal
products meant for those who wishes Filipino taste. Particularly, people who live in
Akabanenishi ward, Kita City, Tokyo, Japan.
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

Sarap Bussan Philippine Store will serve as a retail store in Japan in order to access the
operations of the RKitchen abroad using a Branch Office. RKitchen will handle the shipment of
the products to Sarap Bussan Philippine branch; it is then transferred to its branch in Japan. In an
indirect export process, it will be sent to Sarap Bussan Philippine store, Akabanenishi, Kita City
branch in order to sell it to end consumers. Upon registration, RKitchen will set up a Branch
Office near the Sarap Bussan Philippine store located at 1 Chome-39-10 Akabanenishi, Kita
City, Tokyo 115-0055, Japan. In order to maximize the operations.

Geographic Segmentation
Geographic segmentation is a market segmentation that focuses on dividing the target
population based on the geographical order.

The RKitchen Foods Corp. decided to segment based on the population near
Akabanenishi ward, Kita City, Tokyo, Japan. This part of the Akabanenishi ward extends to
other parts of Kita City, being in the middle part of Kita City, it will serve as a central part
making distribution and selling options easier.
Place Population
Akabanenishi, Kita City, Tokyo, Japan 340,287

Demographic Segmentation
Demographic segmentation is market segmentation according to age, race, religion,
gender, family size, ethnicity, income, and education.
The majority of residents of Kita City are Filipino and local Japanese settlers who live in
hotels, flats, or local residences and earn low-to-medium wages.
Gender Percentage
Male 52.5%
Female 47.5%

2.4.2 Distribution
Distribution in Japan is very crucial. Unlike any other country, Japan is very proud of the
way they sell products to their consumers. In relation to their strict and unmatched discipline,
they even allow items to be freely stacked at stores without someone watching them, and still get
robbed. This separates Japan from other countries, not just in the form of a marketing advantage
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

but also in its distribution. Without worrying that someone might steal your items, delivery of
products can be done appropriately without risk of being stolen or even damaged.

Japanese distribution is commonly comprised of one to two things: trucking services or


by train. Frequent, on-time delivery and minimum inventories have become a source of
competitive advantage for small retailers. Average weekly deliveries to retail outlets increased
sharply, providing business opportunities for secondary and tertiary wholesalers.

For RKitchen to properly utilize the distribution channels of Japan, the only necessary
adjustment is to get well acquainted with the location of the place, for Japanese houses are
considered to have very cramped spaces. On the other hand, problems in distribution
management are very low, making distribution processes faster and better compared to other
countries.

2.4.3 Promotion patterns; availability of local talent and media


The internet is now one of the most widely used advertising platforms in the world.
Online ad investment in Japan more than quadrupled between 2014 and 2020, contributing
greatly to the market's overall resilience.

The advertisement market in Japan is dominated by the two largest advertising agencies,
Dentsu and Hakuhodo, whose headquarters are located in Tokyo. Other major competitors
include companies such as CyberAgent (Tokyo), Daiko (Osaka), and Asatsu-DK (Tokyo).
Dentsu, in particular, holds a dominant position in Japan. It's notable that Japan's advertising
sector is heavily controlled by local firms while being one of the most innovative in the world.
Advertisements in Japan are meant to rely less on presenting a new product's merits and more on
developing an emotional and unforgettable connection with the viewer. The utilization of
celebrities and mascots, as well as visual innovation and catchy music, are all key aspects in this
respect.
DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
Golden Gate Subdivision, Talon III, Las Piñas City

When it comes to employing college graduates, Japanese employers don't pay attention to
what they studied. Instead, they devote a huge amount of time and money to training employees
to become professionals. Individuals are moved around the company to get a diverse range of
experience.

2.4.4 Degree of competitive intensity


The competition for artisanal foods in Japan is strong because they offer a wide range of
dishes to suit various budgets and tastes, but usually it is expensive because of the quality of food
that is served. However, RKitchen's products stand out because they have unique preparations
and offer distinct types of artisanal cuisine that are atypical in Japan that are affordable and made
from all natural ingredients and free of any preservatives. It can be served as a side dish to your
favorite sushi, tempura, ramen, etc., or as the main course to your favorite fried rice.

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