Japan market
We are entering the Japan market in period five. After our enter into the Japan market, we made a mistake. Because of our think Japan market looks like China market and we didn’t know the product price, we didn’t know which size product good will sell in Japan. In that time, we set the price in Japan market were so low. We employ many sellers and spend much money on promotion, such as advertising. So that we loss money at Japan at the beginning.

At the period six we reduce the cost, such as promotion, advertising, sales force. After we reduce the cost and increase the product price. The contribution straight up, but we still loss money.

At the period sever and eight, we had bitter experience. And we work hard to find the problem why we will loss money in Japan market. We had researched in internet, read the book, and ask the big company manager. We read all student manual, simulation case, Japanese background and find the solution. We use Gross Margin to check product pricing in the Japanese and to look for opportunities to reduce costs. We tracked marketing expenditures to monitor our budget allocation. We knew the fixed costs include the cost of a distribution center in the country. And we read the text book, at the Japanese consumer behavior case we find that Japan has often been called a mass luxury market. For the Japanese consumer, piece is not the sole determinant of value. The Japanese attitude toward price and quality carries over to groceries, but it applies to other goods as well. After our research, we reduce the fix cost and secondary increase product price. Finally, we can make money in Japan market.

At the period nine and ten we want to earn more profit in Japan, so we are work hard to research again. We read some Japanese marketing toothpaste book and get some information in the internet. We find out that some Japans competitor open up new business opportunities to sell the toothpaste. They will improve the anti-tooth decay, bad breath and other health opportunities. They promote using different tastes toothpaste everyday to attract consumers. They have about thirty one tasting such as tea, coke, chocolate etc. After our saw that, we think we should increase promote advertising and cost structure. The Cost Structure report told us to compare costs of marketing and production across the countries in the region. So we think Japan is a potential market. And we change the cost structure to reduce the cost. We third increase the product price. At the end, we earn 4078.1 millions of JPY.