Rise in Adversity - The Legend of the Kao Corporation Empire

Author: (Japan) Hirayama Chikaharu, (Japan) Hirokawa Shuuzen, translated by Liu Lianhui
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Features: In this book, we will address as well as company employees, attempting to analyze and summarize how to achieve the revival and revitalization of corporate operations in the current Japanese economy. We hope to provide readers with some insights. Chapter 1 primarily focuses on the outstanding qualities of corporate executives who can sustainably achieve company profits over a long period. Kao is a globally renowned manufacturer of daily consumer goods, naturally with a strong forward-thinking business philosophy. Entrepreneurs like Maruta, Tokiwada, and Goto consider not only achieving outstanding operational 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 individuals: researchers and developers, marketing professionals, and the management team collectively create an environment where 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" series of daily cosmetics, the detergent "All," the cooking oil "Health EKONA," and the green tea beverage "Healthya." Why can Kao introduce 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 then 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 directly 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 "autonomous 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 autonomous production and sales, Kao has achieved its ideal market operations—fulfilling consumer desires while maximizing corporate profits. From this perspective, Kao is a typical " vertically integrated production, supply, and sales 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 strength can be traced back to the corporate environment that implements this policy and the company philosophy believed by every employee within the organization. The company fully embodies the philosophy of marketing, which is to completely adhere to 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, combined with a corporate environment that fully adheres to consumer desires, it achieves sustainable development. Kao is a perfect example, and its "miracle" continues to evolve.