Brand Development Strategy of Sanrio

Assignment 1

Brand Development Strategy of

Sanrio

[pic 1]

Word Count: 1812 (words)

CONTENTS                          

1. Introduction 2

1. Company Background2

1. Brand Development Decisions

1. Segmentation, Targeting and Positioning2-4

3.1.1         Segmentation 2-3

3.1.2        Targeting 3

3.1.3         Positioning 4

1. Perceptual Mapping 4

1. Marketing Mix 5-6

3.3.1         Product 5

3.3.1         Price 6

3.3.1         Place 6

1.         Promotion 6

1. Brand Equity 6-8

1. Co-Branding  9

1. Brand Extension 9-10

1. Conclusion & Recommendations 10

1. Introduction

"Nobody has been able to replicate the kind of global fascination with a character set as Sanrio has done" said Marty Brochstein (Yan, 2015). Sanrio is still keeping in top-grossing retail stores in Japan, even they face to their forceful competitors i.e. Disney or LINE. This report is showing how they improve and expand the brand proactively in these many years.

1. Company Background

Sanrio founded in 1960 and over 400+ characters were created with the brand. The business idea is to giving “from the heart” and “of the heart” (SANRIO, 2017). They are proud that products are providing the messages about need to respect and to love with one another. (SANRIO, 2017), which is the reason why their business with continuous growth as well.

1. Brand Development Decisions

1. Segmentation, Targeting and Positioning

1. Segmentation

“Market segmentation is to divide a market into smaller groups of buyers with distinct needs, characteristics, or behaviors who might require separate products or marketing mixes.”(Lamb, 2003). Base on Sanrio’s characters, which are grouped into specific smaller groups that make them have the similar product needs to gain more customer base. Thomas (1980) argued that the proposed segmentation would fulfill four criteria (Stanton & Pires, 2000).

• Substantiality – Sanrio has constantly changing their segmentation in order to adapt consumer demand thus increasing the potential customer base and maintaining the worldwide growth.

• Accessibility – Such as Hello Kitty or other popular characters, who are easy to recognize without any description. Most of consumers are young and accordingly they are achievable and reachable thought a lot of methods in particular of online store.

• Measurability – Sanrio companies are distributed to different countries; they can obtain the demographic information to analyze its segmentation.

• Stability – Sanrio generally focus who are the loyal fans of ‘Kawii’ culture beyond that some of goods is involved by gender and age.  

How to choose segmentation bases is significant because an unsuitable segmentation strategy will lead the sales lost or profit missed opportunities (VanAuken, 2011). In brief that Sanrio is based on the followings to segmenting consumer markets:

• Geographic Segmentation – Sanrio usually based on age and/or gender to set up segment.
• Demographic Segmentation – Sanrio cooperate with other brands in other countries and incorporate 'themes' into events or products to increase sales.
• Psychographic Segmentation – ‘Kawai’ culture can reflects consumer’s life style, personality or values (VanAuken, 2011), so Sanrio creates these characters are representing the different cute faction.

1. Targeting

Hatoyama (2014) notes that “there are core fans base among a wide range of age groups—stretching from customers in their twenties and thirties and older, to teenagers, ‘tweens’ (8 to 12 years old), kids (4 to 7), and toddlers (1 to 3).” (Nippon, 2014). In the other way, Sanrio is not only targeting to female market but also developing the market in male.

1. Positioning

Positioning is defined our desired or ideal brand knowledge structures and establishing points-of-parity and points-of-difference to start the correct brand identity and brand image (Keller, 2013). Therefore, Sanrio can be compared with their competitors though two criteria:

• PODs – In face to the competitors, Sanrio is developed of its series of "Friends & Family" characters, which has been welcomed by the ladies consistently, especially of their lovely impression that the consumers want to have. The most different image from other associations is to think of "SANRIO" equal to "LOVE & FAMILY".
• POPs – Besides of iconic characters Sanrio created, their products are also diversification. If the loyal consumers like “Hello Kitty”, they would see those special designed commodities such as kitchen tackle. Sanrio is used concept of “‘no reason why not' for consumers to choose the brand" (Keller, 2013) that get the product to home from consumers.  

1. Perceptual Mapping

Position map is the position of a product, brand or product line is displayed relative to the competition (Mccarthy, 2007). During to the gap with the competitors, which can help identify where the company could develop the new products into new market. As below map shown, Sanrio is already the top brand in female market. However, they can try to enter the male market; for example, color is trending to dark color or black.