Kao’s marketing strategy and marketing intelligence system

Date of publication: June 15, 1988

Author(s): Masashi Kuga

Abstract:

Kao was established in 1890. From the first, we embraced a philosophy of considering product development and production as marketing variables based on the dictum that a good soap can be made only from 'good material'. There- after, we expanded this philosophy to encompass the following five principles of product development: 1) A new product should be truly useful to society, not only now but also in the future. 2) It should make use of Kao's own creative technology or skill. 3) It should be superior to the new products of competitors both from the standpoint of cost and performance. 4) It should be able to stand exhaustive product tests at all stages before it is commercialized. 5) It should be capable of delivering its own message at every level of distribution. The pursuit of this thorough quality-oriented product evolution has allowed Kao to attain new levels of creativity and endowed it with a considerable number of patents that defy emulation by our competitors.

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