Team bath plus one

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Team bath plus one

  1. 1. International Consumer Management 福 袋 ‘Fukubukuro’ The Thrill of the Unknown Bettina Iversen, Jenny Lee, PruOwlarn, Alex Stepanov, Nicholas Trombert 10BN935E 10BN943M 10BN945F 10BN946J 10BN947L
  2. 2. Content Theoretical Background Generation Shifts Youth Culture The Japanese Shopping Experience Overview of Fukubukuro History Retail Perspective Consumer Perspective Japanese Characteristics Reference Group Segmentation Recent & Future Developments
  3. 3. Generation Shifts Rise of Youth Culture in Japan Culture: Sum of learnedbeliefs, values, and customs that serve to regulate the consumer behavior of members of a particular society Pre-Industrial Period pre-1870’s Rise in Education. Strict Social Class Birth of Urban Culture: 1880’s to 1950’s Between two World Wars – Militaristic Urban Immigration 1946-1950 Baby Boom Economic growth 1950’s-1975 1959-1964 New Human Kind‘ Shinjinrui’ ‘Yuppies’ – different norms and values Consumption culture Post 1970’s 1972-1976 Baby Boom Junior 1980’s Generation Y 1990’s Generation Z (Schroer ) Youth Culture - Affected by Parents norms and Values Baby Boom Jr first generation brought up on different values and lifestyle (Kawasaki 1994: Japanese Youth and Popular Culture)
  4. 4. Youth Culture Generation X, Y, Z ‘boys no longer dream of becomingsalarymenliketheirfathers, and thereis no "guaranteedpath to contentment’ (Akuhodo Institute of Life and Living) Post 1970’s - Grow up on affluence of Post 1950’s Mass consumption Wave, 40 Years after Western Countries (Kawasaki 1991) Kikokushijo(Goodman 1990) Japanese international children influencd by living abroad A more Adaptable Youth: Emergence of Individualism Similaritiesbetween US and Japanese modern youth Sharedmeaning ofconsumer culture and globalisation Demographics, Adaptabiltity and Individualism - Baby Boom Jr generation has more influence thanpreviousyouth groups (Kawasaki 1991)
  5. 5. Overview ‘FUKUBUKURO’ 福袋 What is it? ‘Lucky Bag’– Mystery/Gift Bag filled with unknown random contents sold for a substantial discount (50%) off the total list price of items ‘Fukubukuro’ 2011 Who does it? Ranges from department stores to specialty stores Major Brands targeting Generation Y (16-29) Most popular are young women’s clothing Brands When? ‘Hatsuuri’ On january 2nd – Marks January Sales
  6. 6. History Origin Started by MatsuzakayaDepartment store in Ginza around late Meiji period (ca. 1912) Initially a method to unload excess and unwanted merchandise from the previous year Offered assortment of old products – often for household items Development Adopted by all stores as Marketing Strategy to kick off January Sale Evolved into a nationwide marketing Event Market Research*(2008): 22.8% - of Sample bought fukubukuro 38.3% - from Department Store 16% - online purchase 37.5% - spent between 1-5,000 Yen *Goo Research Monitor Group
  7. 7. Retail Perspective >Fukubukurohas become a New Year shopping tradition which Japanese Consumers expect < Marketing Strategy: Increases brand image and awareness of products sold in store – Differentiation strategy Established as effective product launch tool – Old products are mixed increasingly with new products Attracts people to the store Communication Tool – Strong Word of Mouth & Social Networking Reach Reference Groups Constant Innovation Twitter ‘Lucky Bag’ Search Engine to scout best deals ‘tweeted’
  8. 8. Consumer Perspective Tradition in Japan – Starting a New Year Hatsumōde – first event of the year ( Watch sunrise/ go to shrine/ choose fortune paper) Fukubukuro fits this tradition – initially opportunity to trash old items and start the new year ‘clean’ with new items Chance fortune of being part of something great and feeling special Same as fortune Paper. A lucky ‘Fukubukuro’ promises a good Year Excitement factor Thrill of the Unknown and Novelty Factor Japan recognised for high rate of new product launches and short product life cycle The consumer must be stimulated Gift giving culture – Lucky Bag often bought as a New Year gift No need to make a decision – bear no responsibility Japanese gift giving culture: importance to where you buy the gift rather than the product itself
  9. 9. Consumer Perspective Tradition Millions of Japanese visit The Meiji Shrine in just Three days More than 35 Billion Nengajou (Cards) sent 20% of all annual postal revenues Amazon offers 15 books on Japanese gift wrapping Gift Giving Excitement & Novelty Japan has some of the shortest Product Lifecycles in the World
  10. 10. Japanese Characteristics Flourishing Youth Culture Generation Y – ‘Trend Setting’ Strong Reference Groups and Subcultures Shaping the consumer’s Self Concept Culture is Learned Shibuya 109; Fashion Flagship 40,000 Youth queuing in 2011*… “Individualist and Self-expressing Generation shaped by new values and Lifestyle’s” (Kawasaki 1994) … in an Ordered chaos (Japanese Culture) *http://www.welcome.city.yokohama.jp/eng/tourism/
  11. 11. Reference Groups Diverse Youth Culture Paradigm: Youth all share same attributes (Hannerz 1996) through globalization MTV Gen Gen i Gen Wii Different Names, Same Groups Gen X Net Gen Baby Busters Gen Next Role of local spaces in youth’s lives are ignored (Kjelgaard 2002) Existence of diverse Reference Groups ‘Groups that people refer to whenevaluatingtheir [own] qualities, circumstances, attitudes, values and behaviors’ (Thompson & Hickey, Society in Focus, 2005) ‘Reference Groups [through perceived values of a brand] help express ourself and construct self identities’ (McCraken, 1989) “Products are an integral thread in the fabric of social life” (Solomon 1995)
  12. 12. Reference Groups Sub Cultures & FUKUBUKURO Strong Brand Relationship defines Reference Groups Fukubukuro Choice highlights Reference Group Consumer Purchase Brand rather than Product
  13. 13. Reference Groups Reference Groups & Brand Relationships Fournier (1998) – Pioneered Brand Relationship Research – ‘Customers not only ascribe human-like personality traits to brands, But form meaningful Human-Like Relationships’ Typology of 15 Relationships Fournier 1998 Fukubukuro Opportunity Fling Committed Partnership Best Friend Long term, Union high in love, intimacy, trust and commitment. Exclusivity Rules Short term, high emotional reward, Devoid of long term commitment Reveals true self, honesty and intimacy Like Human Relationships, Brand relationships fall apart unless actively maintained
  14. 14. Segmentation As items are unknown, Customer segmentation is based on: Gift givers whoseek to lessen the hassle of finding the perfectgift Thrillseekers whodesire to add an element of excitement to theirlives Deal finders whoare willing to take a gamble to “score” a big ticket item – PredominantYouthCharacterisitc Challenge for department stores sellingvaried items to guaranteesatisfiedcustomers Psychographic and Usage Situation Segmentation Pressure for Differentiation and customer satisfaction: A few announce the items list prior to sale to create awareness – defeating the principle of fukubukuro
  15. 15. Consumer Experience Segmentation … Consumers seek more than Functional Attributes Symbolic Meaningtowards Act of Purchasing (Solomon 1995) Thrill of surprise leads to unravelling in the streets Emphasis on the context of purchase (Transaction Utility) rather than solely on Functional Benefit (Solomon 1995) Creates a similar Shopping Experience for all social Layers 1000 or Commemorative ‘Royal Wedding’ jewellery Set -Ginza Matsushita Store* 40,000,000 Yen (Wall Street Journal 2010)
  16. 16. Recent & Future Developments Internationalisation Foreigncompaniesadopting practice whenenteringJapan Need to respect Japanese culture to connect withJapaneseconsumers Foreign or japanesecompaniesseeingoportunity to exportthis culture Apple usedthis technique in San Fransisco 2004 store opening - $250 bags* Apple Starbucks SuccessPotential in Foreign countries? Are People willing to spend large sumswithout satisfaction guaranteed? Apple – Possible throughstrong Brand Relationship Kinder Surprise – ourexperience/Lowrisk Factor *(Wall Street Journal)
  17. 17. Recent & Future Developments Experiential Marketing Youth Culture Interest has led to a whole new dimension for Promotion: ‘Misukoshi Ginza offers Ad-Space in subway for displaying ‘Private Photos’ 10 Million Yen Takashimaya - ‘Re-Enacting the Beatles Tour’ Includes Recording at Abbey Road Studios 5 Million Yen Spin-offFukoubukuro ‘MisfortuneBags’ Pet Accessories Example of Japanese Seeking New experiences and Shared reference groups
  18. 18. Recent & Future Developments Death of traditional Marketing New generations have grown up in Advertisement Saturated Environment Increasingly Aware & Cautious of Traditional Marketing Channels Future Advertising must Target Experience and Culture (S.R. Danna, 1992, Advertising and Popular Culture)
  19. 19. Recent & Future Developments Generation Z – Information Age > First generation to have always known internet. Expect customization and real time information providing more elaborate and accurate decision-making. Establish strong brand relationship from a young age, whilst being increasingly conscious of Marketing Strategies targeting their Reference Groups < Youth Culture losing Traditional Values? Aspect of bargain seeking & Brand Relationship will stay popular Threat: consumers are less likely to be satisfied without prior information

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