Rise in Adversity: The Legend of the Flower King Empire

Author: (Japanese) Hirayama Chikahiro and Hirokawa Shunsuke
Publisher:
Publish Date: 2006-01-01
Features: In this book, we will address corporate managers and employees, attempting to analyze and summarize how to achieve the revival and revitalization of corporate management in the current and chaotic Japanese economy. We hope to provide readers with some inspiration. Chapter 1 primarily focuses on the outstanding qualities of corporate managers who can achieve long-term profitability in their companies. Kao is a globally renowned consumer goods company with a strong forward-thinking business philosophy. Entrepreneurs like Maruta, Tokiwada, and Goto consider not only achieving outstanding business results during their tenure but also striving for the same sustained growth in future profits, contributing to society. Chapter 2 emphasizes Kao's corporate environment. The distinctive feature of Kao's corporate environment is the integration of the wisdom of many people: researchers and developers, marketing professionals, and the management team collectively create a large environment where technology management (Management of Technology, MOT) talent naturally emerges. To foster a positive corporate atmosphere, the philosophy of "serving consumers and society" is essential. Chapter 3 clarifies that within the environment created by leaders, the research and development capabilities of outstanding MOT talent directly lead to the launch of popular products. Kao owns a series of well-known daily chemical brands deeply integrated into the lives of consumers, such as Kao's soap and bath products "BABU," the "Biore" daily cosmetics series, the detergent "All," the cooking oil "Health EKONA," and the green tea beverage "Healthya." Why can Kao launch innovative popular products almost every year? This question remains a mystery to many market professionals. If the answer can be found and summarized as a formulaic theorem, other companies could also learn from Kao's experience to produce their own popular products. Chapter 4 further focuses on the "market promotion playbook" for popular products, discussing the creativity required to expand markets. Kao's experience in market development is to go to consumers, listen to their opinions, and actively engage in communication with them. To produce products that satisfy consumers, the company consistently adheres to the principle of "independent management of production, supply, and sales." From raw material procurement and allocation to product manufacturing and logistics, the company maintains full control. Kao, as a manufacturer of household daily chemicals, has also established its own sales system, with half of its television advertisements being self-planned and produced. By so thoroughly implementing independent production and sales, Kao has achieved the ideal market operations it pursued—meeting consumer desires while maximizing corporate profits. From this perspective, Kao is a typical "vertical integration practice company." Kao's success proves the saying: "What is natural should be naturally achieved." This can also offer inspiration to other companies: as long as the business's operational starting point is re-established, corporate revival can be achieved. Kao's strength also lies in the power of its "marketing policy." This strong force can be traced back to the corporate environment that implements this policy, as well as the company philosophy believed in by every employee within the corporate organization. The company fully adheres to the philosophy of marketing, which is to completely follow consumer desires, thereby creating a forward-moving corporate organization. Nowadays, the theory of "the end of marketing" is often heard, but if a company practices truly effective marketing policies, under such a corporate environment, combined with complete adherence to consumer desires, it achieves sustainable corporate development. Kao is a perfect example, and its "miracle" is still evolving.