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e-Books on Industry and Services

 

Niche Marketing: 60 Success Stories

Productivity Series 33

©APO 2007, ISBN: 92-833-7059-7

FOREWORD

PRINTED VERSION ALSO AVAILABLE: Please inquire.

book

This book was originally written as a manual for seminars on niche marketing strategies conducted in Japan, which is why most of the 60 examples are from that country. The Japanese were once criticized for being “economic animals.” Although that was untrue, it is true that the Japanese have had to work hard to survive. Japan lacks natural resources and is dependent on foreign sources for over 80% of its food supply. The Japanese climate is harsh, and the northern regions of Hokkaido, Tohoku, and Hokuriku in particular experience severe winters.

The Second World War reduced the nation to ruins. Simply accepting starvation and death was not an option, which is why the Japanese worked desperately to brains to find a way forward from devastation of war. The result was dramatic economic growth at an unprecedented rate. Yet there is no need for other Asian nations to imitate Japan. Some countries attach greater value to religion, culture, and tradition than to economic standing. South Asian countries are blessed with natural resources, including abundant food crops, that free them from the need to lead a workaholic life like the Japanese. The economies of some countries are centered on agriculture. In those countries, unemployment has no meaning and governments do not even keep statistical records on such economic indicators like unemployment ratio.

Yet, living in easy circumstances does not mean that the population can always feel secure. The fact is that unless they coexist and cooperate with the industrialized nations, the gap between poverty and wealth will only widen. They also want access to modern infrastructure such as roads, communications, railways, water supply and sewage, ports, airports, etc. and to receive the benefits of modern life like convenient housing, home appliances, heating and air-conditioning, private automobiles, medical care, and fashion items. They also aspire to a comfortable lifestyle, with high literacy rates and a high regard for their country. It seems unfair that there should be differentials in wealth among countries in Asia.

As an APO expert for the past 40-odd years, I have conducted many management seminars in numerous countries including Bangladesh, Cambodia, the Republic of China, India, Indonesia, the Republic of Korea, Lao PDR, Malaysia, Nepal, Pakistan, and Singapore. In my career as a management consultant, I have not only taught others but also learned much in return, especially in the areas of religion, culture, tradition, and business practices. It was not my intention to expound arrogantly in this volume on success stories. Rather, the motive for writing was the desire to report business success stories that occurred mostly in Japan, once a poor, war-torn nation, to let readers know that such success can occur. In addition, some classic success stories from the USA and other countries in niche strategies are also introduced here to provide more interesting references for readers.

In order to utilize this book for practical purposes, several questions have been provided under each strategy for your deliberation in the form of answers. I encourage readers to consume this entire book to create a new vision and destiny for their firms.

I would be more than happy if the theories and practical examples of niche marketing strategies presented in this book contribute to increasing the rate of business establishment and the level of industrial development in other countries.

THE AUTHOR

Management Consultant Dr. Soichiro Nagashima received his doctorate in microeconomics from the Warsaw School of Economics in 1995. In the past 50 years, he has conducted numerous business management and productivity seminars for a variety of organizations in both the public and private sectors. More than 500 Japanese businesses in fields as varied as manufacturing, retailing, healthcare, and electronics have benefited from his consultancy services. In addition, the Asian Productivity Organization, Japan Productivity Center for Socio- Economic Development, Japan International Cooperation Agency, and Japan External Trade Organization have dispatched Dr. Nagashima to lecture on management- and productivity-related topics around the world.

The author of 65 books, including 100 Management Charts and Corporate Strategy in the Borderless World also published by the Asian Productivity Organization in English, Dr. Nagashima continues to write and at present he conducts the President Academy in the Japan Productivity Center for Socio-Economic Development.

 

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INSIDE THE E-BOOK

About the Author

FOREWORD

INTRODUCTION

PART I. FOUR STRATEGIES FOR CREATING DEMAND THAT LEADS TO NEW PRODUCTS

 

Strategy 1. Total System Configuration (Total Strategy)

  • Example 1. Sell an endoscopic room, not an endoscope
  • Example 2. Turnkey project based on ipron
  • Example 3. JALPAK
  • Example 4. Ichizo Kobayashi’s “cactus” business method
  • Example 5. Overcoming a late start by creating a paper product packageQuestions to ask

Strategy 2. The Synectics Strategy

  • Example 6. President Takuma becomes the Takuma boiler

  • Example 7. Pilkington’s float glass production technology

  • Example 8. Role playing at Daiichi Kangyo Bank’s Shizuoka branch

  • Example 9. Patient-centered hospital management

  • Questions to ask

Strategy 3. Singular Product - Preeminent Strategy

  • Example 10. Disco’s double-dicing technique

  • Example 11. Tri-Wall’s three-layered cardboard

  • Example 12. αGEL: A new wonder material

  • Example 13. The disposable camera

  • Example 14. The 15-minute haircut: The barber of Shinbashi Railway Station

  • Questions to ask

Strategy 4. The Final Touch: Determinants of Success and Failure

  • Example 15. A colorful chest of drawers for baby clothes

  • Example 16. Was the Shinkansen (Bullet Train) an innovation?

  • Example 17. Plus’s convenient blackboard

  • Example 18. Cancan hair salon

  • Example 19. The lend-a-cat hotel

  • Questions to ask

PART II. FOUR STRATEGIES FOR USING OPPONENTS’ STRENGTH

 

Strategy 5. Hitchhiking with a Large Company: The Remora Strategy

  • Example 20. Remora in steel wholesaling

  • Example 21. Selling Coca-Cola through bottle design: A chain of successful ideas

  • Example 22. Keeping a 6,000-seat convention hall full year-round

  • Questions to ask

Strategy 6. Converging Divergent Information: Using Complaints for New Product Ideas (Spider Web Strategy)

  • Example 23. Cutting a gordian knot of ideas the Yamada way

  • Example 24. Kuroneko-Yamato home delivery

  • Example 25. Another me: Ryoichi Sakamoto

  • Example 26. Star-thread machine screws

  • Questions to ask

Strategy 7. Emulating Success: The Number 2 Strategy

  • Example 27. Panasonic, the company that exploited Sony Questions to ask

Strategy 8. Extending Product Life Cycle: The Expanded Function Strategy

  • Example 28. Long-lived companies

  • Example 29. Changing location for different uses

  • Example 30. Where did the Jeep go? Strategy of a reborn automaker

  • Example 31. A florist with an idea in full bloom

  • Example 32. Heian dreams conjured by nishijin brocade

  • Example 33. Sokensha’s Benibana Ichiban

  • Questions to ask

PART III. PROBLEMS AS A BASIS FOR NEW BUSINESS: FOUR STRATEGIES FOR TURNING WOE INTO WEAL

 

Strategy 9. Strategies for the Solution of Problems

  • Example 34. The legend of the yubari melon

  • Example 35. A gadget to peel California

  • Questions to ask

Strategy 10. Recycling Strategy

  • Example 36. Sliced, diced, and profitable

  • Example 37. A new sales channel for Tsubame-sanjo tableware

  • Example 38. Saleswomen become buyers

  • Questions to ask

Strategy 11. Appealing to Impatient Consumers: Time-value Creation Strategy

  • Example 39. 7-Eleven’s umbrella strategy

  • Example 40. Developing a competitive edge in temporary staffing with IT

  • Example 41. No-wait dentistry

  • Questions to ask

Strategy 12. Excitement-inducing strategy

  • Example 42. The island of Kauai

  • Example 43. Body Sonic

  • Example 44. NKK’s SSAWS

  • Questions to ask

PART IV. FOUR STRATEGIES TO EXPAND SALES

 

Strategy 13. Local Encroachment: The Silkworm Strategy to Dominate Local Markets

  • Example 45. Banquets at a dosanko hotel

  • Example 46. Use your mythology

  • Example 47. The wisdom of Kiyoshi Matsumoto

  • Example 48. Clean the client’s copier

  • Example 49. Link the first visit to a follow-up visit, then to string visits

  • Questions to ask

Strategy 14. Equipping Yourself with an Impeller

  • Example 50. Dead stock suddenly sold out: DuPont paint

  • Example 51. Canned fruit sales: Solving the riddle

  • Example 52. Soybean waste can be fertilizer or animal feed

  • Questions to ask

Strategy 15. Surprising Strategy

  • Example 53. Sir Ernest Shackleton’s advertisement

  • Example 54. Rat’s paradise

  • Example 55. Yellow curry and yellow Renault

  • Example 56. Carnival Plaza: How a textile mill became a trendy restaurant

  • Questions to ask

Strategy 16. The “Halo” Strategy

  • Example 57. Whisky’s sentimental value

  • Example 58. Maintenance cost of central heating

  • Example 59. “Yes, sir (or madam), with pleasure”

  • Example 60. Buying shoes has an emotional component: Birth of an image product

  • Questions to ask

CONCLUSION

 

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