e, in order to fight fierce competitors such as P&G in the hair care market, Kao introduced Lavenus which is a new hair care line. Lavenus has L-AHA formula to make hair softer and shinier. This is Kao’s attempt to differentiate its products from that of its competitors. By providing superior quality and value for the consumers, Kao’s strategy is to instil brand loyalty in its consumers to achieve long term success in the market. Competitors such as Follow Me and Ginvera employs the low cost leadership. These firms use price to gain market share by undercutting Kao Corporation. In defence, Kao uses promotional efforts to emphasis on Kao products superior quality and features. With constant Research & Development activities to ensure consumer satisfaction, Kao has been able to fend off the low cost producers. However there are competitors like P&G and Johnson & Johnson who employ similar differentiation strategy. Both P&G and Johnson & Johnson carry out heavy Research & Development efforts in order to create value for consumers in their product. In addition Johnson & Johnson emphasise on product reliability to gain the trust of the consumers. In order to stay competitive against these strong competitors, Kao has employed lower cost strategy to increase its profitability. However, Kao does not compromise its product quality in its struggle to reduce cost. Instead it reduces cost through increase efficiency in management and operational activities. This enables Kao to stay ahead in the competitive environment of the Fast Moving Consumer Products. Evaluation and Comment of the Implemented Strategies Now that we have seen Kao Corporation’s strategies, we can evaluate the degree of effectiveness of these strategies. First of all, it is dear that the company’s current goal is to increase profitability. One of the methods Kao intends to achieve this is through cost efficiency. Since 1986, Kao launched Total Cost Reductio...
