n Program to steer the company towards greater cost efficiency. Now in 1999, Kao’s cost reduction efforts are still continuing with the implementation of Economic Value Added Program which aims to increase the value creation capability of the company by training management the importance of cost of capital in making decisions. While this is generally a good strategy, it remains to see how well EVA will perform especially in the area of conflict of interest between management and shareholders see eye to eye in order for the company to sustain profitable growth in the long run. Looking at Kao’s marketing strategies, the company has managed to layout a well-designed product with emphasis on Research & Development efforts in order to satisfy the consumers better. The consumer is at the heart of Kao Corporation’s marketing strategies. As such, Kao channels considerable efforts into understanding the needs and wants of the consumer. Products are ensured to be of satisfactory quality and value for consumer. While products are of superior quality, Kao does not price its product exorbitantly. In fact, all Kao products are priced competitively in order to win market share. However pricing is not everything. Kao's uses promotion in order to instil brand loyalty and increase company profitability. However it is very hard to accurately measure the effectiveness of above the line promotion efforts. Moreover, the cost of advertisement and other promotional tools could be significantly high. Once promotional efforts have been carried out, Kao has to distribute its product into the market. While Kao has adopted the EDI and ECR programs effectively to reduce logistic cost while speeding up the process. However, contradictory to Kao’s effort to reduce logistic cost, it still maintains the conventional methods of distribution. Kao’s distribution channel still consists of many levels, which results in higher distribution cost. ...
