Kameda Seika Harvard Case Solution & Analysis

Yes, thecompany has to increase its marketing budget, no doubt it would increase the cost but its benefit is more than its cost.

Marketing plays an important role in increasing the financial performance of the company, it aware the customers about the products as thecompany has introduced three new flavors, so it is also necessary for the company to use the in-store.

The benefit of marketing would not appear soon; it would take time. As existing competitors are growing very well, they have a very good position in the market so it would take time to snatch the market share from competitors.

Price

As thecompany is exporting products from Japan, it does not have the manufacturing plant in the United States and that results in high cost for the company.

At the present price, thecompany will not be able to cover the cost and it would face losses in the future too.

Competitors have the manufacturing plants in the United States and that results in less cost of per product for the competitors.

As Kameda Seika has expanded its operations in the United States,it would be difficult for the company to compete with the existing competitors while charging more price as compared to its competitors, so thecompanymust reduce the cost while maintaining the same price level.

Recommendation for the Baked Frosted Rice Crackers (BFRC)

From the case analysis, I would recommend using the Baked Frosted Rice Crackers (BFRC) as a separate brand because we can look at the result of association with the parent company by looking at the results of Kameda Crisps. Kameda Crisps is in losses and one of the reasons is its association with the parent company.

Baked Frosted Rice Crackers (BFRC) is growing very good. It is successful in the United States, and this product would help the company to achieve its long-term goals and objectives.

Company has set the goal that 30% of the sales would come from the market outside the United States.

This product has its own image in the market and with that image, customer is liking this product, so it would be better for the company to remain the same and operate the Baked Frosted Rice Crackers as a separate product.

 

Recommendation for type ofinternational strategy

From the above analysis, I would recommend that the product of Kameda Seika should be local in some respect and global in other respect because every country has its different taste and if we compare the United States with Japan, both countries are different from one another.We also look at the results of Kameda Crisps, in the packaging of Kameda Crisps, it was written that itis Japan’s favorite food, and people were considering it as Asian food and some people were not buying because of this reason.

So, it is necessary to execute the localization strategy and develop the product according to the needs of the consumer.

It is mentioned in the case that company is considering to open a manufacturing plant in the United States and according to my analysis, it would be a good pointbecause it will reduce the cost of manufacturing.

Two things contribute to the loss of an organization: first, low revenues and second high cost. And in this case, thecompany can reduce the cost of the product by opening the manufacturing plant in the United States.

A manufacturing plant in the United States would help the company to manufacture the products by looking at the needs of consumers.

Itcan do research and manufacture the product accordingly that what type of products are liked by the consumers................................

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