Japanese in Red Bulls

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Japanese in Red Bulls

• Japanese Functional Drink Market Presentation
• By
• Yasuhiro Suzuki
• Tetra Pak Japan

2
Introduction Geography, Nature Climate

• Japan is a long narrow chain of islands
  stretching 3300 km north to south.
• It consists of 6852 islands
• There are 4 major islands Hokkaido , Honshu ,
  Shikoku and Kyushu.
• Tokyo lies at approx the same latitude as Athens
  , Greece
• Average monthly temp (C) from North to South
• January August
• Sapporo - 4.1 22.0
• Tokyo 5.8 27.1
• Naha 16.6 28.2
• Population of 127.7 million
• Population density in habitable areas is the
  highest in the world
• 34 million people live within 50 km from downtown
  Tokyo.
• The largest metropolis in the world
• Extreme needs for efficient transportation of
  people
• More than 7 million passengers a day travel by
  subways in Tokyo
• Tokyo prefecture Daytime Population 15 million
• Tokyo prefecture Nighttime Population 12
  million

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IntroductionEconomy

• The worlds second largest economy after the US
• Contributes to 20 of the United Nations budget
• Japanese companies are global leaders
• Toyota to overtake GM as global No 1 in car sales
  in 2007
• Sony , Canon , Honda , Mitsubishi
• Very competitive domestic market drive constant
  development of new products
• Durable goods in Japanese Households
• Color TV 99.4
• Mobile Phone 85.3
• Passenger Car 83.9
• DVD Recorder 61.1
• Digital Camera 53.7

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Introduction EconomyEconomy is improving

• But , Consumer Prices have
• dropped 2.4 2000-2006 !

Source Planet Retail (2006)
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Market Situation Demanding consumers..

• High premium on freshness
• Very high quality demand
• Package appearance
• Always looking for product innovations
• Frequent new product launches
• Increasing preference for healthy products
• High awareness of ingredients
• Many health trends

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Market Situation Challenging Conditions

• Per Capita Liquid Consumption decreasing
• Approx 3 down from 2000 to 2005
• Population decreasing
• From 127.7 million in 2006 to 124.1 million in
  2020
• 109 million on 2040
• Fastest ageing population in the world
• 2000 Japan Sweden 17.4 of population over
  65 Years
• 2010 Japan 22.0 over 65 years (26.9
  in 2020)
• Sweden 19.5 over 65 years (23.1 in
  2020)

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Market Situation Package sales in Japan 2006
5,755
4,305
2,686
2,438
2,106
2,073
1,603
Total Market 24,614 million liter
Source Tetra Compass 2006
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Japanese are ..
Life Expectancy at Birth (WHO 2005)
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Japanese are ..

• Seek for the Quality of Life
• Live longer and healthier
• Prevent diseases from
• Good Eating Habit
• Exercise
• Stress Free
• Improve Health conditions from
• Supplement
• OTC medicine

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Message should reach to the consumers

• Something Good for your Health
• Natural
• Organic

• Specific effects to your specific concerns
• Specific ingredient
• Oriental Medicine

Product Positioning
What to appeal? How to appeal? To
whom? Relevancy? Compelling?
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• Way to communicate

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Two ways of Healthy communication
With FOSHU
Direct Communication
Without FOSHU
Indirect Communication
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Foods for Specified Health Use (FOSHU)
Foods, which are expected to have appreciable
health benefits, which are substantiated
with medical and nutritional evidence. Health
benefits can be tout on the package and the
logo mark can be used.
Background

• Increase of life habit related diseases
• Aging is going on.

Increase of medical expenses

• More focus on preventive medicine.

Sep., 1991 Ministry of Health, Labor and Welfare
started to legislate for the labeling of health
claims on functional foods Oct., 1993 1st
approved product launched
Need to get approval on each product. Need large
investment for medical evidence.
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Number of Products approved as FOSHU is rapidly
increasing.
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Two ways of Healthy communication
Without FOSHU
With FOSHU

• Pros
• Consumers can easily recognize the functional
  product with the FOSHU mark on package
• Manufacturers can appeal its benefit directly to
  consumer on package text or advertisement
• Cons
• It takes long time and high costs to get FOSHU
  approval
• Each size or flavor needs an approval
  independently

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Yakult PretioFunctional lactic acid drink
For person with high blood pressure
Concerns on Blood Pressure level in Japan

• Company Yakult
• Launch November 2004
• Package TB 100S
• Price 120 yen
• 3 multi-packs,7 multi-packs also on sale
  from 2006 Sep.
• Distribution At launch, sales via Yakult
  Ladies- 48,000 persons
• Started to sell at CVS/ Supermarket in 2006
• Target People with high blood pressure level
• Product Lactic acid drink with more than
  10ml/pack of GABA (Gamma Amino Butyric Acid),
  ?-Amino which lowers blood pressure
• FOSHU with benefit of lowering blood
  pressure
• Competitor Calpis AmealS, in 190ml glass,
  selling at 160yen

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Functional Lactic acid drinkwhich lowers blood
pressure
Protiase
Glutamic-acid decarboxylase
Lactobacillus Kazei Shirota
Lactococcus Lactis

• GABA has the effect to inhibit the secretion of
  noradrenalin, then it lowers blood pressure.
• Making GABA by mix culturing these 2
  lactobacillus is patented technology of Yakult.

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Pretio communication

• Key message
• Clear mention of FOSHU on TVCM.
• Large mention of for High blood pressure and
  the mark of FOSHU at the front of package.

• 40 of Japanese have high blood pressure.
  Yakult Pretio for those with high blood
  pressure.
• This nations blood pressure is concerning.
• GABA in each Pretio / FOSHU

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Pretio sales trend (pack number) Continuous
communication and channel is key
Sales increased by heavier TVCM, with expanded
distribution.
Sales increased by TVCM, sold by Yakult ladies
Source TP delivery
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Two ways of Healthy communication
Without FOSHU
With FOSHU

• Image building with heavy promotion, catchy copy
• Product Image
• Company Image

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Kagome vegetable products

Launched 2007
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Kagome Co., Ltd. Top maker in vegetable-based
juice market
Company Kagome Co. Ltd. Business Food Establishe
d 1949 Drinks Capital 4,772 mio JPY Frozen
Food etc. Sales 118,963 mio JPY
Corporate Policy Tomato Vegetable Company
Mission in beverage segment Make vegetable-based
juice as national health drink
Per capita consumption (per year) Milk 60
liter Vegetable juice 2 liter
10 liter
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Vegetable Life 100
Main consumer of vegetable juice Middle aged
Growing health consciousness
To let everyone drink vegetable juice Everydays
vegetable juice ? light taste, easy to drink
Yasai Seikatsu Fruit/vegetable blends
(50 vs. 50)
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Vegetable Life 100
2006
Original
3 Fruits (50) apple, orange, lemon 21 Vegetables
(50) carrot, spinach, asparagus, red
pepper, komatsuna, watercress, pumpkin, red
cabbage, broccoli, petit veil, beet, red
Japanese basil, celery, lettuce, celery cabbage,
Kale, parsley, aubergine, onion, Japanese
radish, cabbage
3 Fruits (50) apple, orange, lemon 8 Vegetables
(50) carrot, parsley, spinach, watercress,
green pepper, lettuce, cabbage, beet, aroma
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TV Commercial
I'm Juicy.
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Corporate Promotion Concept
Live together with vegetables ( 1998-, 3
years) Refining the vegetable
Aug.2000- ??????? Normalization of environment
inner body
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Normalization of environment inner body
Communication via web site
Check the condition inside the body survey
May.6., to June.24., 2001 740,000 people tried
this check through computers and portable phones
?Input birthday, height, weight etc.
?Answer 40 yes or no questions.
?Your inside the body age and life habits you
should care are appered.
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The recent Development

• Key message unchanged
• Constant promotional spending
• TVCM, Radio, magazine
• Visually appealing package design with a concept
  of Colors
• More choices for specific needs
• Direct benefit appeal for a certain consumer
  groupEnough vegetable for 1 day with 1 shot!

• Vegetable is the fundamental essential, and
  the best choice for healthy life of all people
• Drinking vegetable juice means taking vegetables
  (Intentionally not specifying the effect of
  vegetables)

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Yasai Seikatsu 100Purple vegetables

• Company Kagome
• Launch March 2006
• Package TBA 200 slim
• Price 100 yen
• Distribution CVS, SM
• Target All ages
• Product Mixed vegetable and fruit
  juice

• Best brand of vegetable juice since 1995
• A complement to earlier flavors in the same
  series
• Original flavor best seller in the category
• Purple vegetable became 2nd popular flavor.
• Yellow vegetable launched 6th of March.

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Kagome vegetable juice successful variation in
TBA 200Slim
Mio pack
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Kagome product portfolio
Heavy
Mid
Beginner
On-the-go
Non-drinker
Home
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Products
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PretioFunctional lactic acid drink

• Company Yakult
• Launch November 2004
• Package TB 100S
• Price 120 yen
• Distribution Yakult Ladies- 48,000 persons
• Target People with high blood pressure level
• Product Lactic acid drink with more than
  10ml/pack of GABA (Gamma Amino Butyric Acid),
  ?-Amino which lowers blood pressure

TB 100S

• A FOSHU product which targets people with high
  blood pressure
• Direct competitor to AmealS from Calpis which is
  sold in 190ml glass for 160 yen.

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Toraku Soymilk1st Soya milk with FOSHU approval
Company Toraku / Soya farm Launch 2002 Package
TBA 200 slim Price 100 yen Distribution CVS,
SM Target For people whose cholesterol level is
high Product A FOSHU approved adjusted
soymilk

• Each pack contains 6.0g of soy protein which
  cannot be produced in the body but contains
  well-balanced amino acids, which have the
  function to lower the cholesterol level.

TBA 200S
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BansoreichaFunctional Tea with FOSHU approval
Company Yakult Launch 1998 Package TBA 200
slim Price 100 yen Distribution Yakult Ladies,
CVS, SM Target For people whose blood sugar
level is high Product A FOSHU approved Tea from
Guava
TBA 200S
Guava tea polyphenol hinders absorption of
glucide and control rise of blood sugar level.
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Black Vinegar DrinkTop vinegar drink brand

• Company Yakult Honsha
• Launch March, 2004 (Nationwide)
• Package TBA 125 slim
• Price 100 yen
• Distribution SM
• Target Middle aged women and men with health
  conscious
• Product Black vinegar and honey with 2 Japanese
  plum juice
• Ripened black vinegar
  from domestic rice

TBA 125S

• Became market leader in 2004
• First vinegar product appealing the high quality
  of vinegar with package design
• Easy drinking taste by honey and Japanese plum
  juice

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What is Vinegar? Vinegar brewed from brown rice

• Rich in amino acids (8 essential types others)
• Rich in organic acids glucide
• - 16 kinds of organic acids.
• - Glucide which helps to strengthen immunity
• Rich in minerals

• Alleviation of muscle pain
• Relieves irritation stress
• Improves blood circulation
• Effective against certain illnesses (high blood
  pressure, diabetes, etc.)

Benefits
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Suppin BrandFor Beauty

• Company Melodian
• Launch 1996
• Package TBA 250 slim
• Price 100 yen
• Distribution CVS, SM, Online
• Target Adult Females
• Product Fruit flavoured drink with nutrition

• High contents of nutritional elements(Vitamin C
  1000mg, Collagen, co-enzyme Q10)
• Designed for adult females
• Reasonable price
• Nice fruit taste as well as refreshment
• Easy to purchase

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LabrePlant Lactic Acid Drink

• Company Kagome
• Launch 2005
• Package PET 130ml, Plastic 80ml
• Price 105 yen
• Distribution CVS, SM
• Target Adult Females
• Ingredient Apple, carrot extract, dairy
  products, soymilk, ginger, lime etc.

Kagome Developed New probiotic drink Using
plant lactic acid bacteria made by Fermenting
vegetables and fruit. They promote the difference
between animal lactic acid and plant lactic
acid.
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Whats Plant lactic acid?
Plant lactic acid can survive longer in digestive
system
Survival rate in digestive system
Plant lactic acid Animal lactic acid
Over 10 timesthe survival rate
Live in harsh conditions High sodium or acid
content Low temperaturee.g. Kimchi
Live in good circumstance Milk, enriched sugar
content Livable e.g. Yogurt
Plant lactic acid Animal lactic acid Labre
L. Kazei
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Thank You!